How Ad Networks are Changing the Face of Media Buying
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Transcript of How Ad Networks are Changing the Face of Media Buying
Confidential
In Partnership with Clique Media
Web Wednesday Dubai!
Confidential
Agenda – How Ad Networks are Changing Media Buying
Why the Need?
How they Help?
The Future…
Page 2
Confidential
Ad Networks - Why the Need?
5 key factors driving growth and need for Ad Networks:
– Media fragmentation and the growth of non-premium inventory
– Top 20 sites contribute less to the overall traffic
– Mid to Smaller sites cannot compete to gain access to Demand effectively
– Agencies and advertisers only want to see limited number of media players
– Proliferation of ‘niche’ properties – further exasperates the Need!
Confidential
Ad Networks are Key to the Ecosystem
18 - 20% of total display advertising is on ad networks in developed markets
Less than 5% across most Emerging Markets, but growing fast
Fastest growing segment of digital internet advertising at 22-25% globally
Search growing at 12% globally
Internet creates huge problems of fragmentation
– 100 - 250 TV channels – 50 - 1,000 newspapers– 50,000,000 +web sites and growing!!!
4
Confidential
Non-Guaranteed Display is the Fastest Growing Segment of Online Advertising
$11.4B
$21.9B
$4.8B
$16B
$0
$5
$10
$15
$20
$25
$30
$35
2009E 2010E 2011E 2012E 2013E
Non-Guaranteed Display
Guaranteed Display
22% CAGR
7%
$11.4B
$21.9B
$4.8B
$16B
Projected to be Worth $11.4B in 2013
ThinkEquity WW Advertising Forecast ($B)
Confidential
Ad Networks - Key Value Drivers
Ad Networks bring the following key value to the media ecosystem:
– Create scale by aggregating audiences and provide an alternative to large media sites and/or portals
– Provide small publishers with the ability to access advertiser demand
– Help target niche categories (travel, education, etc)
– Improve Targeting which can include Demo, Geo, Contextual and/or Behavioral
– Real Time Optimization for performance and response driven advertisers
– Consolidated Reporting and Insights across Publishers
Confidential
Ad Networks – How to Differentiate them?
Key Differentiators Categories
Economic Relationship with Publishers
Revenue Share, Pre-Buys, etc
Economic Relationship with Advertisers
CPA, CPL or CPM based buys
Inventory Type Premium & Non-Premium
Exclusivity/Focus Site Rep and Demand Driven
Ad Type Text, Display, Video and Mobile
Inventory Fill Revenue Share, Pre-Buys, Dynamic
Targeting Contextual, Behavioral, Frequency, Demo, etc
Confidential
The Ecosystem – Early Days
Advertisers
& Agencies
Portals
Confidential
The Ecosystem - Yesterday
Guaranteed
Channel
Non-Guaranteed Channel
Publishers
Advertisers
& Agencies
Ad Networks
Confidential
The Ecosystem – Today and the Future…
Non-Guaranteed Channel
Data
Providers
Sell Side
Platform
Guaranteed Channel
Publishers
Advertisers
& Agencies
Ad Networks
& Exchanges
Confidential
In Summary
Other Categories are reaching “natural” growth rates
Non-premium display represents key response to media fragmentation and is gaining market share
New Ad technologies are aided at improving ROI and Yields for non-premium display
Even the market leaders are focused on non-premium display!!!
Confidential
Web Wednesday in Partnership with Clique Media
Thank You