This document discusses opportunities in the digital publishing market and outlines some next steps. It analyzes revenue models for traditional advertising, platforms, content, and audience data. It also provides a high-level view of the online advertising technology ecosystem and examines how to optimize audience value. Finally, it notes the importance of people, culture, and budgets, and acknowledges that strategies must evolve with changing market conditions.

1. Betting the farm on online

2. agenda
• Digital publishing market
• Revenue opportunities
• High level systems match
• Next steps

3. Where is the money?
0%
20%
40%
60%
80%
100%
120%
0
500
1000
1500
2000
2500
3000
3500
4000
est Revenue
est gross
margin

4. Traditional Advertising model is
inherently non optimised.

5. Audience
price
wastage

6. In a low transaction cost world…
• What is the media revenue model
– Platform
– Content
– Audience Data

7. Behavioural
Targeting
Data
optimization
(Bizo,
Quantcast,
adchemy)
Data Exchanges
(Bluekai,
eXelate,
Rapleaf)
Google AdX
AdWords
(+ access to
GCN)
AdSense
Workflow
(DSM, freewheel does as well)
Video serving
with DRM, etc
(eg Instream,
Freewheel
DNB,
Adify,
etc)
Video players
Freewheel,
Brightcove
Ad Planners
(eg Google Ad Planner,
Comscore, Akamai)
Analytics
(Omniture, GA, etc)
Adsense Backfill
Direct Sales
Billing systems
(eg SAP)
External “Sales House”
Advertiser
Agency/ Ad Network /
Affiliate Network
Buyers Sellers
Publisher Website
SSP: Seller
Optimizing
(Rubicon,
Admeld,
Pubmatic)
Adservers DFP /
other
Media Buyers
(vivaki, Atom,
cadreon)
Dart Search
MSN
Deal
Deal
DFA /
other
Buyer
info
Seller
info
eCPM
(optimize)
Adapt
(optimize)
CRM
(eg Salesforce)
Data suppliers and consolidators (eBay, Expedia) (Business Objects, SAS, Claritas)
Online Ad Technology Ecosystem
Planning
tools
(Aprimo,
Unica)
Mobile Ad
serving
Creative
Optimization
(Teracent,
Adready)
Demand Side
Platforms
(DataXu, Turn,
InviteMedia)
Verification
Attribution
(DoubleVerify,
mPire)
Other Ad
Exchanges
AdECN
RighMedia
OpenX
Advertising.co
m
Ad Networks
Vertical, Horizontal,
targeted , performance
Google CN
Implementation, migration & IntegrationMarketer Services Exchange Brokering
Private Network
Email

8. Overall Advertising Media
total
30%
45%
20%
5%
mobile
premium search network social

9. Premium value chain - media
100%
spend
15%
4%
1%
30%
49%
publisheragency Advertiser
Adserver
publisher
Adserver
Sales
comms
data
1%

10. total
15%
40%
5%
5%
5%
30%
Network Value Chain – Audience
Advertisers Ad Network Data
Provider
Ad Exchange
(SSP)
Ad Serving
Platform
Publisher
Source: JEGI estimates/2010 IAB report
Agency
(DSP)

11. Starving at the feast?

12. Price disruption
• The death of rate cards and (almost) limitless
supply disrupted traditional media pricing

13. Audience Reach model
Mass audience
Niche
Audience
Known
audience
Transaction
costs

14. Per Audience Value
Mass
audience
Niche
Audience
Known audience

15. Your biggest asset
Is your biggest liability

16. People
Culture
Budgets

17. What got you here,
wont get you there

18. High level systems view
CMS (web and mobile)
cosmo
Marie
claire
Oprah etc
Custom
components
Custom
components
Storage, hosting, technical support, systems updating
Editorial,
content
management
Analytics
and
reporting
User management,
audience management
segmenta
tion
Newsletters,
sms
Ad
serving,
trafficki
ng
API
special
special
special
special
special
special
special
special
special
special
special
special
Ad
sales
publishing
editorial
Contentpromotion(ads,SEO,SEM,etc)

19. Who does what?
CMS (web and mobile)
cosmo
Marie
claire
Oprah etc
Custom
components
Custom
components
Storage, hosting, technical support, systems updating
Editorial,
content
management
Analytics
and
reporting
User management,
audience management
segmenta
tion
Newsletters,
sms
Ad
serving,
trafficki
ng
API
special
special
special
special
special
special
special
special
special
special
special
special
Ad
sales
publishing
editorial
Contentpromotion(ads,Social,SEO,SEM,etc)