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Display Ad Landscape : Evolution, Terminology, Technologies and Players


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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

Published in: Technology, Business
  • Comprehansive informative presentation for complete display ad landscape including display ad evolution.... thanks Jai
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Display Ad Landscape : Evolution, Terminology, Technologies and Players

  1. Jai Rawat<br />CEO, Velocita Inc.<br /><br />August 6, 2009<br />Display Ad Landscape<br />1<br />Velocita Inc. All Rights Reserved (<br />
  2. Evolution<br />Display technology<br />Static banner ads<br />Pop ups<br />Pop unders<br />Dynamic banner ads<br />Widgets<br />Video<br />Mobile<br />Relevance<br /><ul><li>Untargeted
  3. Contextual targeting
  4. Vertical targeting
  5. Behavioral targeting
  6. On site
  7. Network
  8. Intent targeting
  9. Re-targeting</li></ul>2<br /><ul><li>Following are additional online ad formats but fall under non-display ads:
  10. Text
  11. In-text or inline
  12. Blog
  13. RSS
  14. Email
  15. Audio/Podcasts</li></ul>Velocita Inc. All Rights Reserved (<br />
  16. Evolution<br />Economics<br />Brand vs. DR ads<br />Premium vs. Remnant inventory<br />Rev share<br />Arbitrage<br />CPM, CPC, CPA, CPL payouts<br />Marketplace<br />Direct selling<br />Agencies<br />Ad Networks (Rep, Blind, Targeted)<br />Ad Exchanges<br />Efficiency improvements<br />Yield Optimizers<br />Buy Side Platforms<br />Sell Side Platforms<br />3<br />Velocita Inc. All Rights Reserved (<br />
  17. First Ever Display Ad<br /><ul><li> Sold to AT&T in October, 1994
  18. 468x60 pixels
  19. Appeared on HotWired
  20. Sprint, MCI, Volvo, ZIMA and Club Med soon followed
  21. Banner ads became the rage by 1997 </li></ul>4<br />Velocita Inc. All Rights Reserved (<br />
  22. Ad Networks<br />Collection of publishers and advertisers – match makers<br />Over 300 ad networks exist today<br />Examples:, 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 (<br />
  23. 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 (<br />
  24. 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 (<br />
  25. 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 (<br />
  26. Measuring Ad Effectiveness<br />Velocita Inc. All Rights Reserved (<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 />
  27. 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 (<br />
  28. 11<br />Velocita Inc. All Rights Reserved (<br />
  29. 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 />12<br />Velocita Inc. All Rights Reserved (<br />DynamicLogic study of 4,800+ campaigns over 3 years<br />
  30. 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%)
  31. TV ad spending is 31% compared to Internet at 12%
  32. Only 5% brand dollars have moved online
  33. 30% DR dollars have moved online </li></ul>Velocita Inc. All Rights Reserved (<br />Source: Forrester: ThinkEquity Research<br />13<br />
  34. 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 />14<br />Velocita Inc. All Rights Reserved (<br />
  35. 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 />15<br />Velocita Inc. All Rights Reserved (<br />
  36. Reach: Horizontal vs. Vertical<br />Horizontal Ad Networks<br />Focused on getting high traffic sites<br />Good for consumer brand ads<br />, 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 />16<br />Velocita Inc. All Rights Reserved (<br />
  37. B2C Marketing Tactics and ROI<br />17<br />Velocita Inc. All Rights Reserved (<br />
  38. Market Trends<br />Velocita Inc. All Rights Reserved (<br />18<br />Source: Pubmatic<br />
  39. Market Trends<br />19<br />Velocita Inc. All Rights Reserved (<br />Source: Pubmatic<br />
  40. Market Trends<br />Velocita Inc. All Rights Reserved (<br />20<br /><ul><li> 17% spending drop projected for display ads in 2009
  41. Overall online ad spending projected to drop 3.2% to $24.1b in 2009</li></li></ul><li><br />Velocita Inc. All Rights Reserved (<br />21<br />Contact<br />