The Display Advertising Ecosystem:
The More You Know, The More You’ll Grow


                    Jamie Lomas
      Vice President, Sales and Client Services
Agenda
      Playing the Display Field
      An Advertiser’s Basic Choices
           Ad Agencies
           Publishers
           Ad Networks
           Ad Exchanges
           Display Technology Platforms
      An Advertiser’s Checklist
      How to Get Started

  © 2010 AdReady, Inc. Confidential        2
Overview
  Online Display renaissance:
    “…the display part of our business is likely to be the next
     billion dollar business.”
          Eric Schmidt, CEO of Google



    “Display Advertising Will Surge by 10.5% in 2010“
        Nothing But Net 2010 Internet Sector Outlook




  © 2010 AdReady, Inc. Confidential                                3
Overview (cont.)
      Renaissance has pros and cons for marketers
         Pro: More options enter the market every day
         Con: Ecosystem has become increasingly complex

      Advertisers can hire an agency, or manage display
      in-house




   © 2010 AdReady, Inc. Confidential                       4
Playing the Display Field




   © 2010 AdReady, Inc. Confidential   5
Formats
   SWF (Shockwave Flash)
   Static (GIF, JPG)
   HTML
   Rich Media (Pointroll, Eyeblaster)
     Expandables, page takeovers
   Video
     Pre roll, post roll, mid roll
     In-banner
   Mobile display units
   Dynamic Ad Units




  © 2010 AdReady, Inc. Confidential     6
An Advertiser’s Basic Choices


                             Ad Agencies
                             Publishers
                             Ad Networks
                             Ad Exchanges
                             Display Technology Platforms



   © 2010 AdReady, Inc. Confidential                        7
An Advertiser’s Basic Choices
   Questions to ask:
     Should I use an advertising agency or not?
     Should I buy directly from media publishers and/or
      through an intermediary to reach my intended
      audience?
     If I want to buy through an intermediary, should I look
      to ad networks or ad exchanges?
     Should I pay for technology solutions or “platforms” to
      help me or my agency manage my campaigns?


   © 2010 AdReady, Inc. Confidential                            8
Agency




© 2010 AdReady, Inc. Confidential            9
What Do Advertising Agencies Provide?

 Broad spectrum of advertising services, from creative to media,
 strategy to tactical execution, across both offline and online media
 channels

 Many different marketing services under one roof, streamlining costs
 and management, while ensuring a common, coordinated strategic
 underpinning to both media and creative executions

 Over 85% of the total US spending on display advertising in 2007 came
 from the top 500 largest display advertisers, and the vast majority of
 these advertisers use the top digital agencies (Nielson AdRelevance)

 With the advent of more streamlined ad technology platforms smaller,
 more regionally focused traditional agencies can now offer online
 display advertising (more later)



© 2010 AdReady, Inc. Confidential                                         10
What Do Advertising Agencies Provide?

 Questions to ask:
   Are my budgets large enough to ensure I’m an
    attractive client and will thus get great service from one
    of the top-tier digital agencies?
   Does my agency provide both media and creative
    services, and if so, what are the fees for each?
   Is my agency an expert in digital media and specifically
    online display?
   Does my agency utilize best of breed technologies to
    cost effectively manage the logistics of my campaign,
    and also measure and drive effective ROI performance?
© 2010 AdReady, Inc. Confidential                                11
Online Publishers




© 2010 AdReady, Inc. Confidential                       12
Online Publishers

 Ad space brought directly through an in-house sales force or a self-
 service technology, or indirectly via ad networks or ad exchanges

 They often use either homegrown or commercially available ad
 serving/inventory management technology

 Because these technologies and teams can be expensive to employ,
 they typically require advertisers to spend monthly minimums in the
 many thousands or tens of thousands to get this full service.

 With the advent of more streamlined ad technology platforms smaller,
 more regionally focused traditional agencies can now offer online
 display advertising (more later)




© 2010 AdReady, Inc. Confidential                                       13
Online Publishers




© 2010 AdReady, Inc. Confidential   14
Ad Networks




© 2010 AdReady, Inc. Confidential                 15
Ad networks
Focus on audiences, not sites

Remnant, “Class 2”

Transparent Networks: full details on where their ads will be placed.

Blind Networks: advertisers must relinquish control over where their
ads will run.
Ad networks
                              Increased Targeting Capabilities to Reach Discrete
                              Audience Segments
                                                                 Retargeting
<< ---- Performance ---- >>




                                                                 Brand Keyword (Display)
                                                                 Competitor Keyword (Display)

                                                                 Category Keyword (Display)

                                                                 Channel

                                                                 Site

                                                                 Behavioral / Intent

                                                                 Demographic

                                                                 Geographic

                                                                 RON

                                << ---- Reach ---- >>
Ad networks
Ad Exchanges




© 2010 AdReady, Inc. Confidential                  19
Ad exchanges
Courtesy of Right Media
Ad Exchanges




© 2010 AdReady, Inc. Confidential   21
Display Technology Platforms




© 2010 AdReady, Inc. Confidential                  22
Buying Platforms
Eliminate the Friction of Online Display Advertising:




                                Automated
                                  Buying
                                 Platform


  © 2010 AdReady, Inc. Confidential                     23
Buying Platforms
Scalable Access to Media Sources    API enabled access
                                    to leading sources
                                    of inventory




© 2010 AdReady, Inc. Confidential                 24
Buying Platforms
Creative Iteration and Optimization on the Rise
•   Template-based creative systems with customization intelligence
•   Dynamic creative systems that generate creative on the fly
•   Leverage advanced targeting techniques to test creative
    elements relative to placement




                                                 Images, text, and colors
                                                 are all editable for rapid
                                                 testing and optimization
                                                 without paying excessive
                                                 creative fees



       25
Buying Platforms
Growing Measurability and Analytics Options

                                    Need transparency
                                    across all sources.




© 2010 AdReady, Inc. Confidential                         26
Reason #9
      Costs to Test Display Ads Are Shrinking
      Testing Cost* as a % of Total Annual Display Budget
               With Automated Display Technology
               Using Traditional Planning & Buying




     Annual budget: $60,000                   $600,000                              $6,000,000
     # Creatives:                    3            10                                  10
     # Media Sources:                3            10                                  10
                                         * Testing costs include creative development and media minimums
                                                                                                           27
                                                                                                           27
 © 2010 AdReady, Inc. Confidential
Display
                                    Advertising Checklist




© 2010 AdReady, Inc. Confidential                           28
Display Checklist
      New to display:
            My goals are: (brand / awareness vs. performance / DR)
            My yearly/quarterly budget is:
            My specific target audience is:
            I need X type of reporting to measure success:
            I have X current display ads already created:
            I have had success placing display ads through the following providers (and why):
            I faced challenges when placing display ads through the following providers (and why):


      Experienced with display:
         How much of my overall display budget do I spend on testing / set up costs? Can this
          be optimized?
         Is my ROAS similar or better than my competition?
         Am I delivering the right messages to the right target audiences?
         How can I have a more targeted ( personable) conversation with my prospective
          clients?
         Can geo targeting help?
         How can creative costs be lowered?
© 2010 AdReady, Inc. Confidential                                                             29
To learn more, request the white paper:

   Display Advertising Ecosystem




      Jamie Lomas: jlomas@adready.com


                                          30

Ad Ready Display Ad Ecosystem

  • 1.
    The Display AdvertisingEcosystem: The More You Know, The More You’ll Grow Jamie Lomas Vice President, Sales and Client Services
  • 2.
    Agenda Playing the Display Field An Advertiser’s Basic Choices  Ad Agencies  Publishers  Ad Networks  Ad Exchanges  Display Technology Platforms An Advertiser’s Checklist How to Get Started © 2010 AdReady, Inc. Confidential 2
  • 3.
    Overview OnlineDisplay renaissance:  “…the display part of our business is likely to be the next billion dollar business.” Eric Schmidt, CEO of Google  “Display Advertising Will Surge by 10.5% in 2010“ Nothing But Net 2010 Internet Sector Outlook © 2010 AdReady, Inc. Confidential 3
  • 4.
    Overview (cont.) Renaissance has pros and cons for marketers  Pro: More options enter the market every day  Con: Ecosystem has become increasingly complex Advertisers can hire an agency, or manage display in-house © 2010 AdReady, Inc. Confidential 4
  • 5.
    Playing the DisplayField © 2010 AdReady, Inc. Confidential 5
  • 6.
    Formats SWF (Shockwave Flash) Static (GIF, JPG) HTML Rich Media (Pointroll, Eyeblaster)  Expandables, page takeovers Video  Pre roll, post roll, mid roll  In-banner Mobile display units Dynamic Ad Units © 2010 AdReady, Inc. Confidential 6
  • 7.
    An Advertiser’s BasicChoices Ad Agencies Publishers Ad Networks Ad Exchanges Display Technology Platforms © 2010 AdReady, Inc. Confidential 7
  • 8.
    An Advertiser’s BasicChoices Questions to ask:  Should I use an advertising agency or not?  Should I buy directly from media publishers and/or through an intermediary to reach my intended audience?  If I want to buy through an intermediary, should I look to ad networks or ad exchanges?  Should I pay for technology solutions or “platforms” to help me or my agency manage my campaigns? © 2010 AdReady, Inc. Confidential 8
  • 9.
    Agency © 2010 AdReady,Inc. Confidential 9
  • 10.
    What Do AdvertisingAgencies Provide? Broad spectrum of advertising services, from creative to media, strategy to tactical execution, across both offline and online media channels Many different marketing services under one roof, streamlining costs and management, while ensuring a common, coordinated strategic underpinning to both media and creative executions Over 85% of the total US spending on display advertising in 2007 came from the top 500 largest display advertisers, and the vast majority of these advertisers use the top digital agencies (Nielson AdRelevance) With the advent of more streamlined ad technology platforms smaller, more regionally focused traditional agencies can now offer online display advertising (more later) © 2010 AdReady, Inc. Confidential 10
  • 11.
    What Do AdvertisingAgencies Provide? Questions to ask:  Are my budgets large enough to ensure I’m an attractive client and will thus get great service from one of the top-tier digital agencies?  Does my agency provide both media and creative services, and if so, what are the fees for each?  Is my agency an expert in digital media and specifically online display?  Does my agency utilize best of breed technologies to cost effectively manage the logistics of my campaign, and also measure and drive effective ROI performance? © 2010 AdReady, Inc. Confidential 11
  • 12.
    Online Publishers © 2010AdReady, Inc. Confidential 12
  • 13.
    Online Publishers Adspace brought directly through an in-house sales force or a self- service technology, or indirectly via ad networks or ad exchanges They often use either homegrown or commercially available ad serving/inventory management technology Because these technologies and teams can be expensive to employ, they typically require advertisers to spend monthly minimums in the many thousands or tens of thousands to get this full service. With the advent of more streamlined ad technology platforms smaller, more regionally focused traditional agencies can now offer online display advertising (more later) © 2010 AdReady, Inc. Confidential 13
  • 14.
    Online Publishers © 2010AdReady, Inc. Confidential 14
  • 15.
    Ad Networks © 2010AdReady, Inc. Confidential 15
  • 16.
    Ad networks Focus onaudiences, not sites Remnant, “Class 2” Transparent Networks: full details on where their ads will be placed. Blind Networks: advertisers must relinquish control over where their ads will run.
  • 17.
    Ad networks Increased Targeting Capabilities to Reach Discrete Audience Segments Retargeting << ---- Performance ---- >> Brand Keyword (Display) Competitor Keyword (Display) Category Keyword (Display) Channel Site Behavioral / Intent Demographic Geographic RON << ---- Reach ---- >>
  • 18.
  • 19.
    Ad Exchanges © 2010AdReady, Inc. Confidential 19
  • 20.
  • 21.
    Ad Exchanges © 2010AdReady, Inc. Confidential 21
  • 22.
    Display Technology Platforms ©2010 AdReady, Inc. Confidential 22
  • 23.
    Buying Platforms Eliminate theFriction of Online Display Advertising: Automated Buying Platform © 2010 AdReady, Inc. Confidential 23
  • 24.
    Buying Platforms Scalable Accessto Media Sources API enabled access to leading sources of inventory © 2010 AdReady, Inc. Confidential 24
  • 25.
    Buying Platforms Creative Iterationand Optimization on the Rise • Template-based creative systems with customization intelligence • Dynamic creative systems that generate creative on the fly • Leverage advanced targeting techniques to test creative elements relative to placement Images, text, and colors are all editable for rapid testing and optimization without paying excessive creative fees 25
  • 26.
    Buying Platforms Growing Measurabilityand Analytics Options Need transparency across all sources. © 2010 AdReady, Inc. Confidential 26
  • 27.
    Reason #9 Costs to Test Display Ads Are Shrinking Testing Cost* as a % of Total Annual Display Budget With Automated Display Technology Using Traditional Planning & Buying Annual budget: $60,000 $600,000 $6,000,000 # Creatives: 3 10 10 # Media Sources: 3 10 10 * Testing costs include creative development and media minimums 27 27 © 2010 AdReady, Inc. Confidential
  • 28.
    Display Advertising Checklist © 2010 AdReady, Inc. Confidential 28
  • 29.
    Display Checklist New to display:  My goals are: (brand / awareness vs. performance / DR)  My yearly/quarterly budget is:  My specific target audience is:  I need X type of reporting to measure success:  I have X current display ads already created:  I have had success placing display ads through the following providers (and why):  I faced challenges when placing display ads through the following providers (and why): Experienced with display:  How much of my overall display budget do I spend on testing / set up costs? Can this be optimized?  Is my ROAS similar or better than my competition?  Am I delivering the right messages to the right target audiences?  How can I have a more targeted ( personable) conversation with my prospective clients?  Can geo targeting help?  How can creative costs be lowered? © 2010 AdReady, Inc. Confidential 29
  • 30.
    To learn more,request the white paper: Display Advertising Ecosystem Jamie Lomas: jlomas@adready.com 30