The document outlines the evolution and landscape of display advertising, detailing various ad formats and targeting methods, including contextual, behavioral, and intent targeting. It also discusses the role of ad networks, exchanges, and the economic aspects of online advertising, including CPM and inventory types. The trends indicate a shift in advertising budgets towards online platforms, despite a projected decline in display ad spending for 2009.

1. Jai RawatCEO, Velocita Inc.http://www.velocitainc.comAugust 6, 2009Display Ad Landscape1Velocita Inc. All Rights Reserved (www.velocitainc.com)

2. EvolutionDisplay technologyStatic banner adsPop upsPop undersDynamic banner adsWidgetsVideoMobileRelevanceUntargeted

3. Contextual targeting

4. Vertical targeting

5. Behavioral targeting

6. On site

7. Network

8. Intent targeting

9. Re-targeting2Following are additional online ad formats but fall under non-display ads:

10. Text

11. In-text or inline

12. Blog

13. RSS

14. Email

15. Audio/PodcastsVelocita Inc. All Rights Reserved (www.velocitainc.com)

16. EvolutionEconomicsBrand vs. DR adsPremium vs. Remnant inventoryRev shareArbitrageCPM, CPC, CPA, CPL payoutsMarketplaceDirect sellingAgenciesAd Networks (Rep, Blind, Targeted)Ad ExchangesEfficiency improvementsYield OptimizersBuy Side PlatformsSell Side Platforms3Velocita Inc. All Rights Reserved (www.velocitainc.com)

17. First Ever Display Ad Sold to AT&T in October, 1994

18. 468x60 pixels

19. Appeared on HotWired

20. Sprint, MCI, Volvo, ZIMA and Club Med soon followed

21. Banner ads became the rage by 1997 4Velocita Inc. All Rights Reserved (www.velocitainc.com)

22. Ad NetworksCollection of publishers and advertisers – match makersOver 300 ad networks exist todayExamples: Ad.com, Glam, Broadband Enterprises, Gorilla Nation, Specific Media, Undertone Networks, Value Click, Vibrant Media etc.Rep Ad NetworksRepresents a site, akin to outsourcing your sales to a consultantFull transparency to advertisers, attracts brand advertisersFinancial model is rev share, may offer minimum guaranteesBlind Ad NetworksLow priced inventory but limited or no control over where ads will runBulk buy of remnant inventory combined with campaign optimization and some targetingAttracts direct marketersFinancial model is arbitrageTargeted Ad NeworksBehavioral or contextual targetingAttracts both brand and direct marketersFinancial model is arbitrage5Velocita Inc. All Rights Reserved (www.velocitainc.com)

23. Ad ExchangesBidded system for buying and selling inventoryInventory contributors:Publishers (remnant)Ad Networks (remnant)Inventory buyers:AdvertisersAd NetworksMonetizationBuy and sell side commission (10-15%)ExamplesRight Media RMX (Yahoo)Double Click AdEx(Google)AdECN (Microsoft)6Velocita Inc. All Rights Reserved (www.velocitainc.com)

24. Behavioral ExchangesPartner with publishers to collect user demographic, behavioral and intent dataClassify data into various categories and sell it to advertisers looking to target specific user categoriesData is typically sold on a CPM basis / monthNo PII is sharedRev share back with publishers (i.e. data providers)Players: Blue Kai, Exelate, Almond Net, Lookery (for demographic data)7Velocita Inc. All Rights Reserved (www.velocitainc.com)

25. Yield OptimizersSell side optimization (for publishers)Help publishers maximize CPM by determining in real time which ad network or exchange will yield highest CPM for every impressionRubicon, Pubmatic, AdMeldBuy side optimization (for advertisers)Variety of different strategies – dynamic ad optimization, landing page optimization, efficient media buy etc.Ad creative optimization: Tumri, Teracent, Aggregate KnowledgeLanding page optimization: Optimost, Offermatica (Omniture), AdChemyMedia buy optimization: Media Math, Invite MediaCampaign optimization: Rocketfuel (auto learning to determine the best place(s) to serve impressions)8Velocita Inc. All Rights Reserved (www.velocitainc.com)

26. Measuring Ad EffectivenessVelocita Inc. All Rights Reserved (www.velocitainc.com)9Dynamic LogicMeasures advertising and marketing effectivenessComscoreSyndicated and custom solutions in online audience measurement, e-commerce, advertising, search, video and mobile