ONLINE ADVERTISING: TIME TO RENEW THE FAITH Tim Cadogan, CEO OpenX April 1, 2009 Confidential & Proprietary - Not to be sh...
If you believe what you read… Confidential & Proprietary - OpenX Technologies, Inc. … .the sky is falling!
But advertising  has  come through for us in the past! Confidential & Proprietary - OpenX Technologies, Inc. … .and will d...
Massive value asymmetry today… Confidential & Proprietary - OpenX Technologies, Inc. Consumer Activity Economic Value $55....
Why the gap? Confidential & Proprietary - OpenX Technologies, Inc. And, Advertisers struggle to reach their target custome...
Solution #1…People, not just places Confidential & Proprietary - OpenX Technologies, Inc. <ul><li>Audience value increasin...
Solution #2…Understand people’s interests and intent Confidential & Proprietary - OpenX Technologies, Inc. <ul><li>Basic D...
Solution #3…Audience Pooling business models Confidential & Proprietary - OpenX Technologies, Inc. Markets/Exchanges Ad Ne...
Solution #4…Deliver more relevant ads Confidential & Proprietary - OpenX Technologies, Inc. <ul><li>Targeted </li></ul><ul...
Solution #5…Better balanced advertising within user experience Confidential & Proprietary - OpenX Technologies, Inc. Searc...
Solution #6…Allow for mass advertiser participation Confidential & Proprietary - OpenX Technologies, Inc. Display Ad Netwo...
<ul><li>People, not just Places </li></ul><ul><li>Interests & Intent – beyond Context & Action </li></ul><ul><li>“ Audienc...
Keep the faith!!! Confidential & Proprietary - OpenX Technologies, Inc. &quot;We are continually faced with a series of gr...
Thank You For Your Time
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OpenX Web 2.0 Presentation - Online Advertising: Time to Renew the Faith

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Presentation made by OpenX CEO Tim Cadogan at Web 2.0 Expo (San Francisco) on April 1, 2009.

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  • OpenX Web 2.0 Presentation - Online Advertising: Time to Renew the Faith

    1. 1. ONLINE ADVERTISING: TIME TO RENEW THE FAITH Tim Cadogan, CEO OpenX April 1, 2009 Confidential & Proprietary - Not to be shared without written permission of OpenX Technologies, Inc.
    2. 2. If you believe what you read… Confidential & Proprietary - OpenX Technologies, Inc. … .the sky is falling!
    3. 3. But advertising has come through for us in the past! Confidential & Proprietary - OpenX Technologies, Inc. … .and will do so again!! Web 1.0 Web 2.0 Web 3.0? Pre-2000 Classic Display Paid Search Post-2000 Classic Display Paid Search 2003-2004 Classic Display Paid Search AdSense Ad Networks 2005-2008 Classic Display Paid Search AdSense Ad Networks Ad Exchanges Video Mobile Realizing Full Economic Value of 2.0 Audiences
    4. 4. Massive value asymmetry today… Confidential & Proprietary - OpenX Technologies, Inc. Consumer Activity Economic Value $55.1B Globally in 2009 Source : JP Morgan (11/2008) Globally in 2009 All Else All Else Search Search
    5. 5. Why the gap? Confidential & Proprietary - OpenX Technologies, Inc. And, Advertisers struggle to reach their target customers. . . <ul><li>Source : </li></ul><ul><li>JP Morgan (11/2008) </li></ul><ul><li>Net Craft (2/2009) </li></ul>Explosion of Supply (70% growth in impressions over last 5 yrs.) (1) Fragmentation of Supply (300%+ growth in websites over last 5 yrs.) (2) Ambiguous or invisible consumer intent Brand Association Concerns Business Model/Value Chain Complexity
    6. 6. Solution #1…People, not just places Confidential & Proprietary - OpenX Technologies, Inc. <ul><li>Audience value increasingly important </li></ul><ul><li>Web-wide audience measurement </li></ul>
    7. 7. Solution #2…Understand people’s interests and intent Confidential & Proprietary - OpenX Technologies, Inc. <ul><li>Basic Data (Demo, Geo, etc.) </li></ul><ul><li>Rich Data (Behavior, Transaction, etc.) </li></ul>
    8. 8. Solution #3…Audience Pooling business models Confidential & Proprietary - OpenX Technologies, Inc. Markets/Exchanges Ad Networks BID $5.25 Autos Kite Boarding Home Loan Local Autos Travel Cameras Local Autos Home Loan Bicycles Bicycles Travel Cameras BID $9.50 BID $1.70 BID $0.80
    9. 9. Solution #4…Deliver more relevant ads Confidential & Proprietary - OpenX Technologies, Inc. <ul><li>Targeted </li></ul><ul><li>Personalized </li></ul><ul><li>Customizable </li></ul>
    10. 10. Solution #5…Better balanced advertising within user experience Confidential & Proprietary - OpenX Technologies, Inc. Search Non-Commercial Search Commercial Search Display (current form) <ul><li>Dynamic page structure </li></ul><ul><li>Dynamic ad/edit ratio </li></ul><ul><li>“ Total page” user experience </li></ul>
    11. 11. Solution #6…Allow for mass advertiser participation Confidential & Proprietary - OpenX Technologies, Inc. Display Ad Network #2 Display Ad Network #1 Display Ad Network #3 Display Portal #2 Display Portal #1 Display Portal #3 Display Ad Network #4 Display Ad Network #5 Display Ad Network #6
    12. 12. <ul><li>People, not just Places </li></ul><ul><li>Interests & Intent – beyond Context & Action </li></ul><ul><li>“ Audience Pooling” Business Models </li></ul><ul><li>Ad Relevance </li></ul><ul><li>Balanced Usability </li></ul><ul><li>Mass-market Advertiser Participation </li></ul>In summary…what is needed Confidential & Proprietary - OpenX Technologies, Inc.
    13. 13. Keep the faith!!! Confidential & Proprietary - OpenX Technologies, Inc. &quot;We are continually faced with a series of great opportunities brilliantly disguised as insoluble problems.&quot; -- John W. Gardner <ul><li>2010-2011 => Look for a Renaissance in online advertising: </li></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><li>Diversity </li></ul></ul><ul><ul><li>Value </li></ul></ul>
    14. 14. Thank You For Your Time

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