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Display Ad Landscape : Evolution, Terminology, Technologies and Players
This presentation contains an overview of display ad landscape. It covers the following topics:
- display ad evolution
- display ad terminology
- display ad technologies
- display ad players
- display ad market trends
- display ad stats
This will be very useful for both industry knowledgeable and newbies
This presentation contains an overview of display ad landscape. It covers the following topics:
- display ad evolution
- display ad terminology
- display ad technologies
- display ad players
- display ad market trends
- display ad stats
This will be very useful for both industry knowledgeable and newbies
Display Ad Landscape : Evolution, Terminology, Technologies and Players
Jai Rawat<br />CEO, Velocita Inc.<br
/>http://www.velocitainc.com<br />August 6, 2009<br />Display Ad Landscape<br />1<br />Velocita Inc. All Rights Reserved (www.velocitainc.com)<br />
Banner ads became the rage
by 1997 </li></ul>4<br />Velocita Inc. All Rights Reserved (www.velocitainc.com)<br />
Ad Networks<br />Collection of publishers
and advertisers – match makers<br />Over 300 ad networks exist today<br />Examples: Ad.com, Glam, Broadband Enterprises, Gorilla Nation, Specific Media, Undertone Networks, Value Click, Vibrant Media etc.<br />Rep Ad Networks<br />Represents a site, akin to outsourcing your sales to a consultant<br />Full transparency to advertisers, attracts brand advertisers<br />Financial model is rev share, may offer minimum guarantees<br />Blind Ad Networks<br />Low priced inventory but limited or no control over where ads will run<br />Bulk buy of remnant inventory combined with campaign optimization and some targeting<br />Attracts direct marketers<br />Financial model is arbitrage<br />Targeted Ad Neworks<br />Behavioral or contextual targeting<br />Attracts both brand and direct marketers<br />Financial model is arbitrage<br />5<br />Velocita Inc. All Rights Reserved (www.velocitainc.com)<br />
Ad Exchanges<br />Bidded system for
buying and selling inventory<br />Inventory contributors:<br />Publishers (remnant)<br />Ad Networks (remnant)<br />Inventory buyers:<br />Advertisers<br />Ad Networks<br />Monetization<br />Buy and sell side commission (10-15%)<br />Examples<br />Right Media RMX (Yahoo)<br />Double Click AdEx(Google)<br />AdECN (Microsoft)<br />6<br />Velocita Inc. All Rights Reserved (www.velocitainc.com)<br />
Behavioral Exchanges<br />Partner with publishers
to collect user demographic, behavioral and intent data<br />Classify data into various categories and sell it to advertisers looking to target specific user categories<br />Data is typically sold on a CPM basis / month<br />No PII is shared<br />Rev share back with publishers (i.e. data providers)<br />Players: Blue Kai, Exelate, Almond Net, Lookery (for demographic data)<br />7<br />Velocita Inc. All Rights Reserved (www.velocitainc.com)<br />
Yield Optimizers<br />Sell side optimization
(for publishers)<br />Help publishers maximize CPM by determining in real time which ad network or exchange will yield highest CPM for every impression<br />Rubicon, Pubmatic, AdMeld<br />Buy side optimization (for advertisers)<br />Variety of different strategies – dynamic ad optimization, landing page optimization, efficient media buy etc.<br />Ad creative optimization: Tumri, Teracent, Aggregate Knowledge<br />Landing page optimization: Optimost, Offermatica (Omniture), AdChemy<br />Media buy optimization: Media Math, Invite Media<br />Campaign optimization: Rocketfuel (auto learning to determine the best place(s) to serve impressions)<br />8<br />Velocita Inc. All Rights Reserved (www.velocitainc.com)<br />
Measuring Ad Effectiveness<br />Velocita Inc.
All Rights Reserved (www.velocitainc.com)<br />9<br />Dynamic Logic<br />Measures advertising and marketing effectiveness<br />Comscore<br />Syndicated and custom solutions in online audience measurement, e-commerce, advertising, search, video and mobile<br />
Ad Categories: Brand vs. DR<br
/>Brand<br />Build brand equity – delayed return<br />Cares about high reach and right audience<br />Increasingly getting performance driven<br />~20% of online ad spend<br />~75% of offline ad spend<br />DR<br />Focused on immediate conversion<br />ROI driven<br />Points to ponder<br />Can conversion be assigned solely to the last click?<br />Disp+search ad exposure had 22% higher conversion compared to search alone1<br />39% of website conversions came from 10 disp ad views without a single click2<br />47% of paid search conversions are influenced by an online display ad2<br />Over 50% of website conversions had 5 or more events in the path to conversion2<br />“View through” traffic is 9x more than “click through” traffic3<br />1: Microsoft 2: Fuor Digital 3: Fetchback<br />10<br />Velocita Inc. All Rights Reserved (www.velocitainc.com)<br />
Online Ads = TV Ads?<br
/>Velocita Inc. All Rights Reserved (www.velocitainc.com)<br />11<br /><ul><li> Significant study by comScore showing that online is as effective as TV
Inventory: Premium vs. Remnant<br />Technically,
it is the same inventory<br />Premium:<br />Time, placement guarantee<br />First impressions<br />Typically sold direct (or rep ad networks)<br />Premium Ad Networks: Value Click, 24.7 Real Media, Tribal Fusion<br />Remnant<br />“Leftover” inventory, pooled with other sites<br />Sold via ad networks or exchanges<br />Low CPM (~20x) compared to Premium<br />Even large sites running at 50%+ remnant<br />Growing faster than premium<br />Ad networks: Specific Media, Context Web, TMP, Undertone<br />Brand recall within 30 days of seeing the ad was 21% and 50% higher on content sites compared to portals and non-premium/bulk sites respectively<br />13<br />Velocita Inc. All Rights Reserved (www.velocitainc.com)<br />DynamicLogic study of 4,800+ campaigns over 3 years<br />
Non Premium Display Fastest Growing
Segment<br />Media Spend vs. Media Consumption <br />WW Digital Advertising Revenues ($ B)<br />2008E: $ 4.1 B<br />2011 E: $ 7.6 B<br />CAGR: 28% <br /><ul><li> Equal media time online and TV (~35%)
30% DR dollars have moved
online </li></ul>Velocita Inc. All Rights Reserved (www.velocitainc.com)<br />Source: Forrester: ThinkEquity Research<br />14<br />
Targeting<br />Contextual<br />Ads served based
on page content<br />Ad Sense, YPN, Quigo (Platform-A) etc.<br />Behavioral<br />User profile derived based on online activity<br />Heavy duty computation <br />Analyze a large number of parameters to determine behavior<br />Tacoda has over 100 consumer segments<br />On Site optimization<br />E.g. Customized offers on eCommerce sites based on BT<br />Choice Stream, Certona, Optimost, Offermatica (Omniture)<br />Network BT<br />Behavioral data collected from a network of sites, used for ads<br />Audience Science, Tacoda (Platform-A), Value Click, Blue Lithium (Yahoo)<br />However, behavior does not always imply intent!<br />Increasingly, networks are beginning to offer a combination of content, context and behavioral targeting<br />Rocketfuel, Collective Media<br />15<br />Velocita Inc. All Rights Reserved (www.velocitainc.com)<br />
Targeting (Cont.)<br />Intent targeting<br />Attempts
to determine current intent<br />Intent is usually short lived<br />Behavior may suggest fashion enthusiast but current intent may be to buy a fishing rod or concert ticket<br />Ads are targeted towards current intent<br />Re-targeting<br />Bring abandoning users back to site<br />These users have shown interest but did not convert<br />E.g. show an ad for a free trial for a visitor who has left your site<br />Claims to be very effective, 2-3x increase in CTR, 2-5x increase in conversion<br />Fetchback, Value Click<br />16<br />Velocita Inc. All Rights Reserved (www.velocitainc.com)<br />
Reach: Horizontal vs. Vertical<br />Horizontal
Ad Networks<br />Focused on getting high traffic sites<br />Good for consumer brand ads<br />Advertising.com, Value Click, Tribal Fusion ..<br />Vertical Ad Networks<br />Collection of vertical specific publishers<br />E.g. fashion, gaming, entertainment, shopping etc.<br />Growing rapidly, collective reach has grown from 21.5% to over 57% in one year<br />Adify, Glam, Martini, Federated Media<br />Adify is a platform to create vertical ad networks<br />Supports over 160 vertical ad networks currently<br />17<br />Velocita Inc. All Rights Reserved (www.velocitainc.com)<br />
Ad Buying<br />Velocita Inc. All
Rights Reserved (www.velocitainc.com)<br />18<br />Managed Process<br />1-1 interaction<br />Can negotiate rates<br />Advance campaign control parameters are available<br />Self Service<br />Online self-service workflow for setting up your ad campaign<br />Fixed rates<br />Advance controls such as dayparting, frequency cap etc. may not be available<br />Harder to get makegoods for discrepancies<br />
Self Service Ad Buying<br />Velocita
Inc. All Rights Reserved (www.velocitainc.com)<br />20<br />Hybrid Ads (Display, Text etc)<br />Ad Brite<br />Technorati/Ad Engage<br />Ad Onion<br />Ad On Network<br />AOL/Platform-A<br />ContextWeb<br />Marchex<br />Pheedo<br /><ul><li>Mobile Ads
Market Trends<br />Velocita Inc. All
Rights Reserved (www.velocitainc.com)<br />24<br /><ul><li> 17% spending drop projected for display ads in 2009
Overall online ad spending projected
to drop 3.2% to $24.1b in 2009</li></li></ul><li>Market Trends<br />Velocita Inc. All Rights Reserved (www.velocitainc.com)<br />25<br />