Wepman omma presentation 7 19 10

1,670 views

Published on

Presentation given at OMMA Adnets conference in LA on 7/19/10

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,670
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Wepman omma presentation 7 19 10

  1. 1. Display Advertising 2.0: Opportunities in the New World Order July 19, 2010 Joshua Wepman GCA Savvian Advisors
  2. 2. Display Advertising – Yesterday AOL and Yahoo! Portals http://www.hotwired.com First Online Banner Ad! (10/24/94)
  3. 3. Display Advertising – Today Agencies Media Buying Ad Ad Networks Sharing Data / DSPs Platforms Exchanges Social Tools Horizontal Trading Desk A P D U A Video / Rich Media Yield V Optimization B U E L D R Vertical I I T E S N I Targeted Publisher H C S Creative Data Optimization Data Exchanges / Tools E E Optimization Aggregators E R Performance R S S Ad Servers Ad Servers Analytics Verification / Data Suppliers Mobile Attribution Ad Ops / Infrastructure
  4. 4. Carving Up the Stack - Network World World DSP / Exchange $5.00 CPM $5.00 Efficiency from Optimized Media Buying $4.20 CPM ($0.50) $4.00 ($0.40) ($0.50) $3.00 (CPM) (C PM) ($0.75) $2.15 CPM ($2.00) ($0.30) $2.00 ($0.25) ($0.10) $1.80 CPM ($0.35) ($0.10) $1.00 $0.00 Advertiser Advertisers Agency Ad DSP Network Data Provider Ad Exchange Ad Exchange Ad Serving / Serving Publisher Rich Media Rich Media
  5. 5. Landscape Observations Agencies Media Buying Ad Ad Networks Sharing Data / DSPs Platforms Exchanges Social Tools 1. Overcrowded Marketplace Horizontal Trading Desk A P ries D U A Yield ego Video / Rich Media V Optimization B U E R 24 cat L D I ies I Vertical pan T E S N I 2c om ted Targeted Publisher H C ves S Tools 19 Data Creative Optimization Data Optimization Exchanges / E E n in Aggregators E R illio Performance R S S Ad Servers $2 .5 b Ad Servers Analytics Verification / Data Suppliers Mobile Attribution Ad Ops / Infrastructure
  6. 6. Display Advertising Technology Landscape Agencies Media Buying Ad Ad Networks Sharing Data DSPs Platforms Exchanges / Social Tools Horizontal Trading Desk A P D U A Video / Rich Media Yield V Optimization B U E L D R I I T $8 B Vertical E I i llion S N Targeted Publisher H C S Creative Data Data Exchanges / Tools E E Optimization Optimization E Aggregators R R Performance S S Ad Servers Ad Servers Analytics Verification / Mobile Data Suppliers Attribution Ad Ops / Infrastructure Please direct any inquiries or comments on the landscape to Terence Kawaja at tkawaja@gcasavvian.com or (212) 999-7082
  7. 7. Search Advertising Technology Landscape SEM Agencies SEM SEO Providers / Tools Search Engines Agencies Tools A P D U A V B U E L D R $17 I I T I Billi S E N S E on Data Optimization Data Exchanges / Performance H E R C E R Aggregators S S Analytics Verification Data Suppliers Mobile
  8. 8. Carving Up the Stack - Consolidation Opportunity $5.00 CPM $5.00 $4.20 CPM ($0.50) $4.00 ($0.40) ($0.50) $3.00 $2.30 CPM (CPM) (C PM) ($0.75) $2.15 CPM ($2.00) ($1.50) ($0.30) $2.00 ($0.25) ($0.10) $1.80 CPM ($0.35) ($0.10) Point solutions: $1.00 consolidation likely $0.00 Advertiser Advertisers Agency Ad DSP Network Data Provider Ad Exchange Ad Exchange Ad Serving / Serving Publisher Rich Media Rich Media
  9. 9. Landscape Observations Agencies Media Buying Ad Ad Networks Sharing Data / DSPs Platforms Exchanges Social Tools 1. Overcrowded marketplace Horizontal Trading Desk 2. Publishers threatened A P D U A Video / Rich Media Yield V Optimization B U E L D R Vertical I I T E S N I Targeted Publisher H C S Creative Data Optimization Data Exchanges / Tools E E Optimization Aggregators E R Performance R S S Ad Servers Ad Servers Analytics Verification / Data Suppliers Mobile Attribution Ad Ops / Infrastructure
  10. 10. Online Display Advertising Accelerating … Q1 2010 Was Highest Q1 Ever $7 $5.9 Bn $6 $5 $4 ($Bn) $3 $2 $1 $0 02 01 01 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10 3' 1' 3' 1' 1' 3' 1' 3' 1' 3' 1' 3' 1' 3' 1' 3' 1' 3' 1' Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q The display is forecast to grow over 30% more than the overall online advertising market from 2009 to 2014
  11. 11. … But Not Everybody Benefits Sites Audience Male Age 30-45 $100,000+ Lives in NY Income Looking to Single Buy New Car CAGR: 5% $3.5 $9.0 R: 35% $2.9 CAG $8.0 $3.0 $6.9 $7.0 $6.3 $6.5 $2.5 $2.2 $6.0 $2.0 ($Bn) ($Bn) $5.0 $1.6 $4.0 $1.5 $3.0 $1.0 $2.0 $0.5 $1.0 $0.0 $0.0 2009 2010E 2011E 2009 2010E 2011E Notes: Source: eMarketer, Wall Street research and GCA Savvian estimates.
  12. 12. Are All Sites Created Equally? Audience can be targeted on cheaper website Audience targeting threatens to devalue premium inventory by removing context from the display advertising equation
  13. 13. Landscape Observations Agencies Media Buying Ad Ad Networks Sharing Data / DSPs Platforms Exchanges Social Tools 1. Overcrowded marketplace Horizontal Trading Desk 2. Publishers threatened A P D 3. Google moving aggressively into U A V display Video / Rich Media Yield Optimization B U E L D R Vertical I I T E S N I Targeted Publisher H C S Creative Data Optimization Data Exchanges / Tools E E Optimization Aggregators E R Performance R S S Ad Servers Ad Servers Analytics Verification / Data Suppliers Mobile Attribution Ad Ops / Infrastructure
  14. 14. Display Advertising Technology Landscape Agencies Media Buying Ad Ad Networks Sharing Data / DSPs Platforms Exchanges Social Tools Horizontal Trading Desk A P D U A Video / Rich Media Yield V Optimization B U E L D R Vertical I I T E S N I Targeted Publisher H C S Creative Data Optimization Data Exchanges / Tools E E Optimization Aggregators E R Performance R S S Ad Servers Ad Servers Analytics Verification / Data Suppliers Mobile Attribution Ad Ops / Infrastructure
  15. 15. Display Advertising Technology Landscape Agencies Media Buying Ad Ad Networks Sharing Data / DSPs Platforms Exchanges Social Tools Horizontal A P D U A Video / Rich Media Yield V Optimization B U E L D R Vertical I I T E S N I Targeted Publisher H C S Creative Data Optimization Data Exchanges / Tools E E Optimization Aggregators E R Performance R S S Ad Servers Ad Servers Analytics Verification / Data Suppliers Mobile Attribution Ad Ops / Infrastructure
  16. 16. Landscape Observations Agencies Media Buying Ad Ad Networks Sharing Data / DSPs Platforms Exchanges Social Tools 1. Overcrowded marketplace Horizontal Trading Desk 2. Publishers threatened A P D 3. Google moving aggressively into U A V display Video / Rich Media Yield Optimization B U E 4. Data is the new currency L D R Vertical I I T E S N I Targeted Publisher H C S Creative Data Optimization Data Exchanges / Tools E E Optimization Aggregators E R Performance R S S Ad Servers Ad Servers Analytics Verification / Data Suppliers Mobile Attribution Ad Ops / Infrastructure
  17. 17. All Data is Not Created Equal Data Hierarchy Example Companies Social Sharing Value Search Intent Retargeting Publisher Cookie Segmentation
  18. 18. Landscape Observations Agencies Media Buying Ad Ad Networks Sharing Data / DSPs Platforms Exchanges Social Tools 1. Overcrowded marketplace Horizontal Trading Desk A 2. Publishers threatened P D U A Yield V 3. Google moving aggressively into B Video / Rich Media Optimization U E display L D R Vertical I I T 4. Data is the new currency E S N I Targeted Publisher H C S Data 5. Agencies threatened Data Tools E Creative Optimization Optimization Exchanges / Aggregators E E R Performance R S S Ad Servers Ad Servers Analytics Verification / Data Suppliers Mobile Attribution Ad Ops / Infrastructure
  19. 19. Landscape Observations Agencies Media Buying Ad Ad Networks Sharing Data / DSPs Platforms Exchanges Social Tools 1. Overcrowded marketplace Horizontal Trading Desk A 2. Publishers threatened P D U A V 3. Google moving aggressively into B Video / Rich Media Yield Optimization U E display L D R Vertical I I T 4. Data is the new currency S E N I Targeted Publisher H C S 5. Agencies threatened Data Tools Creative Optimization Data Optimization Exchanges / Aggregators E E E R 6. Publishers need to leverage their R Performance S S advantages Ad Servers Ad Servers Analytics Verification / Data Suppliers Mobile Attribution Ad Ops / Infrastructure
  20. 20. Data Opportunities Ad Networks Sharing Data / Horizontal Social Tools P Video / Rich Media Yield U A Optimization B U L D Publishers can make data I Vertical I work for them E S N • Sell it raw (additional revenue) Targeted Publisher H C • Brand it (value of context) Tools E E • Target better (higher CPMs) R • Reduce # of mouths to feed Performance S (capture greater margin) Ad Servers Mobile Ad Ops / Infrastructure
  21. 21. Video Opportunities vs. Video … Promotes more engaging ad content Has 5-6x higher yield than display advertising Is growing more quickly than display Is starting to attract TV dollars Is standardizing Is a hot area for investment
  22. 22. Video Value Chain Delivery / Content Aggregation / Content Creators Publishing Tools Management Enablers Monetization Portals
  23. 23. Landscape Observations Agencies Media Buying Ad Ad Networks Sharing Data / DSPs Platforms Exchanges Social Tools 1. Overcrowded marketplace Horizontal Trading Desk A 2. Publishers threatened P D U A V 3. Google moving aggressively into B Video / Rich Media Yield Optimization U E display L D R Vertical I I T 4. Data is the new currency E S N I H 5. Agencies threatened Targeted Publisher C S Creative Data Optimization Data Exchanges / Tools E E Optimization Aggregators E 6. Publishers need to leverage theirR Performance R advantages S S Ad Servers 7. Networks need to adapt Ad Servers Analytics Verification / Data Suppliers Mobile Attribution Ad Ops / Infrastructure
  24. 24. Ad Network Observations Ad Networks Horizontal Undifferentiated ad networks run the risk of being made less relevant with the advent of optimized media buying and proliferation of data utilization Video / Rich Media Several ad networks have attempted to transform their core business models Vertical Targeted Performance Performance advertising is not valued strategically by the market Infrastructure / technology is most Mobile valuable
  25. 25. Landscape Observations Agencies Media Buying Ad Ad Networks Sharing Data / DSPs Platforms Exchanges Social Tools 1. Overcrowded marketplace Horizontal Trading Desk A 2. Publishers threatened P D U A V 3. Google moving aggressively into B Video / Rich Media Yield Optimization U E display L D R Vertical I I T 4. Data is the new currency E S N I H 5. Data Agencies threatened Targeted Publisher C S Creative Data Optimization Exchanges / Tools E E Optimization Aggregators E 6. Publishers need to leverage theirR Performance R advantages S S Ad Servers 7. Networks need to adapt Ad Servers Analytics Verification / Data Suppliers Mobile Attribution 8. Consolidation is inevitable Ad Ops / Infrastructure
  26. 26. Diverse Strategic Interest in Ad Tech Innovators Marketing Agency Targets Technology Network / Data Ad Networks
  27. 27. Return Formula Billions invested in ad tech landscape over last few years Focus on investment returns may drive near-term consolidation Time is important element of determining investment returns 1 n( t-1 ) Return = d
  28. 28. Strategic M&A and Investment Activity 2007 Over $13 billion of investment activity from all buyer 2009 groups = Acquisition = Investment 2010
  29. 29. Diverse Strategic Interest in Demand-Side Ad Tech Strategic Fit Ability / Willingness to Pay
  30. 30. The Ad Tech Optimization Scorecard Advertisers Publishers Agencies Ad Networks DSPs Data Providers
  31. 31. GCA Savvian’s Digital Media Advisory Business • Leading investment banking firm with over 200 professionals worldwide • Services include advice on mergers and acquisitions, private capital finance and restructurings • Advised on over $60 billion in transactions since 2006 • Advisor to media companies new and old
  32. 32. Leading Global Independent Advisory Firm Tender Offer Notes & Acquired by Membership Units Divestiture of U.S. Venture Portfolio Acquired by $600MM $5.9Bn $150MM $9Bn Acquired by TOB of Common Acquired by Preferred Equity Stock of Investment and Sold Stake in Credit Facility Acquired by Acquired by $448MM to $10.8Bn $747MM $75MM $500MM $300MM $493MM $1.3Bn Acquired by $1.6Bn Offices in Tokyo, San Francisco, New York City, Chicago, Menlo Park, London and Mumbai (Strategic Partnership)
  33. 33. Proven Leadership in Digital Media Transactions Acquired by Acquired by Acquired by Acquired by Acquired by Preferred Stock Acquired by Preferred Stock Preferred Stock a Subsidiary of We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller Financial Advisor We Advised the Seller Financial Advisor Financial Advisor Pending June 2010 June 2010 June 2010 January 2010 October 2009 April 2009 February 2009 January 2009 1UP Digital Network Sold Stake in Acquired by Minority Preferred Preferred Stock Preferred Stock Preferred Stock Preferred Stock Preferred Stock Preferred Stock Investment in to We Advised the Seller We Advised the Seller Financial Advisor Financial Advisor Financial Advisor Financial Advisor Financial Advisor Financial Advisor Placement Agent January 2009 October 2008 November 2008 November 2008 August 2008 July 2008 July 2008 June 2008 April 2008 Preferred Stock Acquired by Preferred Stock Preferred Stock Acquisition of Acquired by Acquired by Acquired by Acquisition of & Recapitalization Mobile Services Business Financial Advisor We Advised the Seller Placement Agent Placement Agent We Advised the Buyer We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Buyer March 2008 February 2008 January 2008 January 2008 December 2007 December 2007 December 2007 December 2007 October 2007 Acquired by Senior Credit Facility Preferred Stock Merger with Minority Investment Preferred Stock Acquired by Acquired by Acquired by in FRONTLINE Innovation Interactive MANAGEMENT Management We Advised the Seller Financial Advisor Placement Agent We Advised INTAC Financial Advisor Financial Advisor We Advised the Buyer We Advised the Seller We Advised the Seller October 2007 October 2007 October 2007 October 2007 August 2007 June 2007 June 2007 May 2007 May 2007 Preferred Stock Sale of its CDN Acquired by Preferred Securities Notes & Acquisitions of Acquired by Acquired by Acquired by Services Business to Membership Units We Advised the Majority Financial Advisor We Advised the Seller We Advised the Seller Financial Advisor Financial Advisor & Agent We Advised the Buyer We Advised the Seller Shareholder of IGN Ent. We Advised the Seller April 2007 January 2007 October 2006 September 2006 March 2006 December 2005 November 2005 November 2005 September 2005

×