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Jai Rawat CEO, Velocita Inc. http://www.velocitainc.com August 6, 2009 Display Ad Landscape 1 Velocita Inc. All Rights Reserved (www.velocitainc.com)
Evolution Display technology Static banner ads Pop ups Pop unders Dynamic banner ads Widgets Video Mobile Relevance ,[object Object]
Contextual targeting
Vertical targeting
Behavioral targeting
On site
Network
Intent targeting
Re-targeting2 ,[object Object]
Text
In-text or inline
Blog
RSS
Email
Audio/PodcastsVelocita Inc. All Rights Reserved (www.velocitainc.com)
Evolution Economics Brand vs. DR ads Premium vs. Remnant inventory Rev share Arbitrage CPM, CPC, CPA, CPL payouts Marketplace Direct selling Agencies Ad Networks (Rep, Blind, Targeted) Ad Exchanges Efficiency improvements Yield Optimizers Buy Side Platforms Sell Side Platforms 3 Velocita Inc. All Rights Reserved (www.velocitainc.com)
First Ever Display Ad ,[object Object]
 468x60 pixels
 Appeared on HotWired
 Sprint, MCI, Volvo, ZIMA and Club Med soon followed
 Banner ads became the rage by 1997 4 Velocita Inc. All Rights Reserved (www.velocitainc.com)
Ad Networks Collection of publishers and advertisers – match makers Over 300 ad networks exist today Examples: Ad.com, Glam, Broadband Enterprises, Gorilla Nation, Specific Media, Undertone Networks, Value Click, Vibrant Media etc. Rep Ad Networks Represents a site, akin to outsourcing your sales to a consultant Full transparency to advertisers, attracts brand advertisers Financial model is rev share, may offer minimum guarantees Blind Ad Networks Low priced inventory but limited or no control over where ads will run Bulk buy of remnant inventory combined with campaign optimization and some targeting Attracts direct marketers Financial model is arbitrage Targeted Ad Neworks Behavioral or contextual targeting Attracts both brand and direct marketers Financial model is arbitrage 5 Velocita Inc. All Rights Reserved (www.velocitainc.com)
Ad Exchanges Bidded system for buying and selling inventory Inventory contributors: Publishers (remnant) Ad Networks (remnant) Inventory buyers: Advertisers Ad Networks Monetization Buy and sell side commission (10-15%) Examples Right Media RMX (Yahoo) Double Click AdEx(Google) AdECN (Microsoft) 6 Velocita Inc. All Rights Reserved (www.velocitainc.com)
Behavioral Exchanges Partner with publishers to collect user demographic, behavioral and intent data Classify data into various categories and sell it to advertisers looking to target specific user categories Data is typically sold on a CPM basis / month No PII is shared Rev share back with publishers (i.e. data providers) Players: Blue Kai, Exelate, Almond Net, Lookery (for demographic data) 7 Velocita Inc. All Rights Reserved (www.velocitainc.com)
Yield Optimizers Sell side optimization (for publishers) Help publishers maximize CPM by determining in real time which ad network or exchange will yield highest CPM for every impression Rubicon, Pubmatic, AdMeld Buy side optimization (for advertisers) Variety of different strategies – dynamic ad optimization, landing page optimization, efficient media buy etc. Ad creative optimization: Tumri, Teracent, Aggregate Knowledge Landing page optimization: Optimost, Offermatica (Omniture), AdChemy Media buy optimization: Media Math, Invite Media Campaign optimization: Rocketfuel (auto learning to determine the best place(s) to serve impressions) 8 Velocita Inc. All Rights Reserved (www.velocitainc.com)
Measuring Ad Effectiveness Velocita Inc. All Rights Reserved (www.velocitainc.com) 9 Dynamic Logic Measures advertising and marketing effectiveness Comscore Syndicated and custom solutions in online audience measurement, e-commerce, advertising, search, video and mobile

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Display Ad Landscape : Evolution, Terminology, Technologies and Players

  • 1. Jai Rawat CEO, Velocita Inc. http://www.velocitainc.com August 6, 2009 Display Ad Landscape 1 Velocita Inc. All Rights Reserved (www.velocitainc.com)
  • 2.
  • 9.
  • 10. Text
  • 12. Blog
  • 13. RSS
  • 14. Email
  • 15. Audio/PodcastsVelocita Inc. All Rights Reserved (www.velocitainc.com)
  • 16. Evolution Economics Brand vs. DR ads Premium vs. Remnant inventory Rev share Arbitrage CPM, CPC, CPA, CPL payouts Marketplace Direct selling Agencies Ad Networks (Rep, Blind, Targeted) Ad Exchanges Efficiency improvements Yield Optimizers Buy Side Platforms Sell Side Platforms 3 Velocita Inc. All Rights Reserved (www.velocitainc.com)
  • 17.
  • 19. Appeared on HotWired
  • 20. Sprint, MCI, Volvo, ZIMA and Club Med soon followed
  • 21. Banner ads became the rage by 1997 4 Velocita Inc. All Rights Reserved (www.velocitainc.com)
  • 22. Ad Networks Collection of publishers and advertisers – match makers Over 300 ad networks exist today Examples: Ad.com, Glam, Broadband Enterprises, Gorilla Nation, Specific Media, Undertone Networks, Value Click, Vibrant Media etc. Rep Ad Networks Represents a site, akin to outsourcing your sales to a consultant Full transparency to advertisers, attracts brand advertisers Financial model is rev share, may offer minimum guarantees Blind Ad Networks Low priced inventory but limited or no control over where ads will run Bulk buy of remnant inventory combined with campaign optimization and some targeting Attracts direct marketers Financial model is arbitrage Targeted Ad Neworks Behavioral or contextual targeting Attracts both brand and direct marketers Financial model is arbitrage 5 Velocita Inc. All Rights Reserved (www.velocitainc.com)
  • 23. Ad Exchanges Bidded system for buying and selling inventory Inventory contributors: Publishers (remnant) Ad Networks (remnant) Inventory buyers: Advertisers Ad Networks Monetization Buy and sell side commission (10-15%) Examples Right Media RMX (Yahoo) Double Click AdEx(Google) AdECN (Microsoft) 6 Velocita Inc. All Rights Reserved (www.velocitainc.com)
  • 24. Behavioral Exchanges Partner with publishers to collect user demographic, behavioral and intent data Classify data into various categories and sell it to advertisers looking to target specific user categories Data is typically sold on a CPM basis / month No PII is shared Rev share back with publishers (i.e. data providers) Players: Blue Kai, Exelate, Almond Net, Lookery (for demographic data) 7 Velocita Inc. All Rights Reserved (www.velocitainc.com)
  • 25. Yield Optimizers Sell side optimization (for publishers) Help publishers maximize CPM by determining in real time which ad network or exchange will yield highest CPM for every impression Rubicon, Pubmatic, AdMeld Buy side optimization (for advertisers) Variety of different strategies – dynamic ad optimization, landing page optimization, efficient media buy etc. Ad creative optimization: Tumri, Teracent, Aggregate Knowledge Landing page optimization: Optimost, Offermatica (Omniture), AdChemy Media buy optimization: Media Math, Invite Media Campaign optimization: Rocketfuel (auto learning to determine the best place(s) to serve impressions) 8 Velocita Inc. All Rights Reserved (www.velocitainc.com)
  • 26. Measuring Ad Effectiveness Velocita Inc. All Rights Reserved (www.velocitainc.com) 9 Dynamic Logic Measures advertising and marketing effectiveness Comscore Syndicated and custom solutions in online audience measurement, e-commerce, advertising, search, video and mobile
  • 27. Ad Categories: Brand vs. DR Brand Build brand equity – delayed return Cares about high reach and right audience Increasingly getting performance driven ~20% of online ad spend ~75% of offline ad spend DR Focused on immediate conversion ROI driven Points to ponder Can conversion be assigned solely to the last click? Disp+search ad exposure had 22% higher conversion compared to search alone1 39% of website conversions came from 10 disp ad views without a single click2 47% of paid search conversions are influenced by an online display ad2 Over 50% of website conversions had 5 or more events in the path to conversion2 “View through” traffic is 9x more than “click through” traffic3 1: Microsoft 2: Fuor Digital 3: Fetchback 10 Velocita Inc. All Rights Reserved (www.velocitainc.com)
  • 28.
  • 29. Possible implications are greater shift of brand dollars online
  • 30.
  • 31. Inventory: Premium vs. Remnant Technically, it is the same inventory Premium: Time, placement guarantee First impressions Typically sold direct (or rep ad networks) Premium Ad Networks: Value Click, 24.7 Real Media, Tribal Fusion Remnant “Leftover” inventory, pooled with other sites Sold via ad networks or exchanges Low CPM (~20x) compared to Premium Even large sites running at 50%+ remnant Growing faster than premium Ad networks: Specific Media, Context Web, TMP, Undertone 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 13 Velocita Inc. All Rights Reserved (www.velocitainc.com) DynamicLogic study of 4,800+ campaigns over 3 years
  • 32.
  • 33. TV ad spending is 31% compared to Internet at 12%
  • 34. Only 5% brand dollars have moved online
  • 35. 30% DR dollars have moved online Velocita Inc. All Rights Reserved (www.velocitainc.com) Source: Forrester: ThinkEquity Research 14
  • 36. Targeting Contextual Ads served based on page content Ad Sense, YPN, Quigo (Platform-A) etc. Behavioral User profile derived based on online activity Heavy duty computation Analyze a large number of parameters to determine behavior Tacoda has over 100 consumer segments On Site optimization E.g. Customized offers on eCommerce sites based on BT Choice Stream, Certona, Optimost, Offermatica (Omniture) Network BT Behavioral data collected from a network of sites, used for ads Audience Science, Tacoda (Platform-A), Value Click, Blue Lithium (Yahoo) However, behavior does not always imply intent! Increasingly, networks are beginning to offer a combination of content, context and behavioral targeting Rocketfuel, Collective Media 15 Velocita Inc. All Rights Reserved (www.velocitainc.com)
  • 37. Targeting (Cont.) Intent targeting Attempts to determine current intent Intent is usually short lived Behavior may suggest fashion enthusiast but current intent may be to buy a fishing rod or concert ticket Ads are targeted towards current intent Re-targeting Bring abandoning users back to site These users have shown interest but did not convert E.g. show an ad for a free trial for a visitor who has left your site Claims to be very effective, 2-3x increase in CTR, 2-5x increase in conversion Fetchback, Value Click 16 Velocita Inc. All Rights Reserved (www.velocitainc.com)
  • 38. Reach: Horizontal vs. Vertical Horizontal Ad Networks Focused on getting high traffic sites Good for consumer brand ads Advertising.com, Value Click, Tribal Fusion .. Vertical Ad Networks Collection of vertical specific publishers E.g. fashion, gaming, entertainment, shopping etc. Growing rapidly, collective reach has grown from 21.5% to over 57% in one year Adify, Glam, Martini, Federated Media Adify is a platform to create vertical ad networks Supports over 160 vertical ad networks currently 17 Velocita Inc. All Rights Reserved (www.velocitainc.com)
  • 39. Ad Buying Velocita Inc. All Rights Reserved (www.velocitainc.com) 18 Managed Process 1-1 interaction Can negotiate rates Advance campaign control parameters are available Self Service Online self-service workflow for setting up your ad campaign Fixed rates Advance controls such as dayparting, frequency cap etc. may not be available Harder to get makegoods for discrepancies
  • 40.
  • 45. JivoxDisplay Ads AdReady (powers NYT, MSNBC etc.) AdRoll Blogads (blogs) Entrecard (blogs) Federated Media (blogs) Mochi Media (in-game, pre-load) Pennyweb
  • 46.
  • 47. AdMob
  • 52. Velti
  • 53.
  • 54. Market Trends Velocita Inc. All Rights Reserved (www.velocitainc.com) 22 Source: Pubmatic
  • 55. Market Trends 23 Velocita Inc. All Rights Reserved (www.velocitainc.com) Source: Pubmatic
  • 56.
  • 57.
  • 58. info@velocitainc.com Velocita Inc. All Rights Reserved (www.velocitainc.com) 26 Contact