Quality | Control | Results




DIGITAL DOWNLOAD:
DSPs and the Ad Network Shakeout

Presented by:
John Yearout, Sales Dire...
24 Categories
          +
    192 Companies

    OVERWHELMING




2
Timeline

                                            Ad Network Expansion,
 Networks / Rep firms
                        ...
2007: Why So Many Networks?




 4
Boom Resulted in Some Questionable Practices




 • Help with campaign performance

 • Reduce cost and drive profitability...
Fraud Gained Traction In Display Advertising

                 “Pay-Per-Click Web Advertisers Combat Costly Fraud.”



   ...
Organized Click Fraud (Dormring1)




 7
Invisible iFrames, Invisible Ads




• “Software code running
  behind the scenes opened
  more than 40 Web pages,
  each ...
The Daisy Chain


              Network             Network             Network
Advertiser       A                   B    ...
Irrelevant International Impressions




 10
Timeline                                                                      DSPs and the Ad
                            ...
2010




 12
Market Perspective: 2010 Forecast
             DSPs                   U.S. Display
              3%                    Adv...
Market Perspective: 2014 Forecast

                                        U.S. Display
                                  ...
Media Buying
 Platforms       DSPs      Ad Exchanges    Ad Networks




               Let’s Figure This All Out

        ...
Media Buying
 Platforms          DSPs         Ad Exchanges        Ad Networks




               DSPs: Demand Side Platfor...
Media Buying
 Platforms            DSPs         Ad Exchanges        Ad Networks




                 MTDs: Media Trading D...
Know the Advantages, Know the Trade-offs

                     DSPs
         Access to             Limited Quality
       ...
Know the Advantages, Know the Trade-offs

           “Our buyers are very different.
           They are not trying to buy...
Inventory Acquisition Model is Key Selection Factor

                              “Those ad networks that simply
        ...
The Media Plan of Today


                            AGENCY
      Endemic Publishers   Networks     Portals




         ...
The Media Plan of the Future


                                AGENCY
      Endemic Publishers     DSPs        Networks   ...
Five Things Networks Must Deliver to Remain Relevant

 Unique Inventory    Unique Targeting     Products




         Insi...
Thank you for attending!

 For more information, please
 contact:

 John Yearout
 Director of Sales
 (415) 391-3646 ext. 1...
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John yearout digitaldownload_adclub_idsd

  1. 1. Quality | Control | Results DIGITAL DOWNLOAD: DSPs and the Ad Network Shakeout Presented by: John Yearout, Sales Director, Undertone Networks Proprietary and confidential proposal ©2009 Undertone Networks
  2. 2. 24 Categories + 192 Companies OVERWHELMING 2
  3. 3. Timeline Ad Network Expansion, Networks / Rep firms Ad Exchanges launch as few websites M&A Frenzy have sales staff 1995 2006/2007 2002 Dot Com Bust – many networks go out of business 1999/2000 3
  4. 4. 2007: Why So Many Networks? 4
  5. 5. Boom Resulted in Some Questionable Practices • Help with campaign performance • Reduce cost and drive profitability • Relatively easy to execute / difficult to track 5
  6. 6. Fraud Gained Traction In Display Advertising “Pay-Per-Click Web Advertisers Combat Costly Fraud.” “Half Of Ad Impressions, 95 Percent Of Clicks Fraudulent.” “Evolution of Click Fraud: Massive Chinese Operation DormRing1 Uncovered. Racks up $3M in Fraudulent Clicks in Two Weeks.” “Software code running behind the scenes opened more than 40 Web pages, each including three ads … which were invisible to visitors.” 6
  7. 7. Organized Click Fraud (Dormring1) 7
  8. 8. Invisible iFrames, Invisible Ads • “Software code running behind the scenes opened more than 40 Web pages, each including three …which were invisible to visitors.” • iFrames can be manipulated to serve invisible ads 8
  9. 9. The Daisy Chain Network Network Network Advertiser A B C • Mpire executed 11 buys on nine networks and one exchange – Actual fulfillment came from 45 downstream networks and over 100,000 sites as a result of daisy-chaining 9
  10. 10. Irrelevant International Impressions 10
  11. 11. Timeline DSPs and the Ad Network “Shakeout” 2010 Ad Network Expansion, Networks / Rep firms Ad Exchanges launch as few websites M&A Frenzy have sales staff 1995 2006/2007 2002 Everyone wants to be a Dot Com Bust – many network – publishers, networks go out of business holding companies, etc. 1999/2000 2008/2009 11
  12. 12. 2010 12
  13. 13. Market Perspective: 2010 Forecast DSPs U.S. Display 3% Advertising: $8 billion DSPs: $200 million U.S. Display Advertising Source: GCA Savvian 13
  14. 14. Market Perspective: 2014 Forecast U.S. Display Advertising: DSPs $16 billion 25% DSPs: $4 billion U.S. Display Advertising Source: GCA Savvian 14
  15. 15. Media Buying Platforms DSPs Ad Exchanges Ad Networks Let’s Figure This All Out Who do you use? 15
  16. 16. Media Buying Platforms DSPs Ad Exchanges Ad Networks DSPs: Demand Side Platforms Technology platforms that enable buy-side entities to buy in an automated fashion across multiple distribution sources. 16
  17. 17. Media Buying Platforms DSPs Ad Exchanges Ad Networks MTDs: Media Trading Desks In-house agency trading desks that leverage DSPs and exchanges to buy media on behalf of agency clients. 17
  18. 18. Know the Advantages, Know the Trade-offs DSPs Access to Limited Quality Scale Control RTB/ VS Limited Rich Low Cost and Complex Media Control Data Usage New Skillset/ and Costs Headcount 18
  19. 19. Know the Advantages, Know the Trade-offs “Our buyers are very different. They are not trying to buy the [home page] takeovers from the publishers. They actually want to get mass reach on very commoditized banners.” Nat Turner, CEO 19
  20. 20. Inventory Acquisition Model is Key Selection Factor “Those ad networks that simply Ad Exchanges aggregate insertion orders and fill them through either daisy chaining or exchange based Other Networks buying will have a limited run.” Portals Brendan Moorcroft, CEO Direct from Publishers Combination of the Above 20
  21. 21. The Media Plan of Today AGENCY Endemic Publishers Networks Portals 100,000+ Publishers 21
  22. 22. The Media Plan of the Future AGENCY Endemic Publishers DSPs Networks Portals 100,000+ Publishers 22
  23. 23. Five Things Networks Must Deliver to Remain Relevant Unique Inventory Unique Targeting Products Insights/Research Service 23
  24. 24. Thank you for attending! For more information, please contact: John Yearout Director of Sales (415) 391-3646 ext. 110 jyearout@undertone.com www.undertone.com 24

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