OpenX Web 2.0 Presentation - Online Advertising: Time to Renew the Faith
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Transcript of OpenX Web 2.0 Presentation - Online Advertising: Time to Renew the Faith
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ONLINE ADVERTISING:ONLINE ADVERTISING:
TIME TO RENEW THE FAITHTIME TO RENEW THE FAITH
Tim Cadogan, CEO OpenXTim Cadogan, CEO OpenX
April 1, 2009April 1, 2009
Confidential & Proprietary - Not to be shared without written permission of OpenX Technologies, Inc.
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2Confidential & Proprietary - OpenX Technologies, Inc.
If you believe what you read…If you believe what you read…
….the sky is falling!
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3Confidential & Proprietary - OpenX Technologies, Inc.
But advertising But advertising hashas come through for us in the past! come through for us in the past!
….and will do so again!!
Web 1.0Web 1.0 Web 2.0Web 2.0 Web 3.0?Web 3.0?
Pre-2000
Classic DisplayClassic Display
Paid Search
Post-2000
Classic Display
Paid Search
2003-2004
Classic Display
Paid SearchPaid Search
AdSense
Ad Networks
2005-2008
Classic Display
Paid SearchPaid Search
AdSense
Ad Networks
Ad Exchanges
Video
Mobile
Realizing Full Realizing Full Economic Value Economic Value of 2.0 Audiencesof 2.0 Audiences
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4Confidential & Proprietary - OpenX Technologies, Inc.
Massive value asymmetry today…Massive value asymmetry today…
Consumer ActivityConsumer Activity Economic ValueEconomic Value
$55.1B Globally in 2009$55.1B Globally in 2009
Source: JP Morgan (11/2008)
Globally in 2009Globally in 2009
All Else
All Else
Search
Search
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5Confidential & Proprietary - OpenX Technologies, Inc.
Why the gap?Why the gap?
And, Advertisers struggle to reach their target customers. . .
Explosion of SupplyExplosion of Supply(70% growth in impressions (70% growth in impressions
over last 5 yrs.)over last 5 yrs.)(1)(1)
Fragmentation of Fragmentation of SupplySupply
(300%+ growth in websites (300%+ growth in websites over last 5 yrs.)over last 5 yrs.)(2)(2)
Ambiguous or Ambiguous or invisible consumer invisible consumer
intent intent
Brand Association Brand Association ConcernsConcerns Business Business
Model/Value Chain Model/Value Chain ComplexityComplexity
Source: (1)JP Morgan (11/2008)(2)Net Craft (2/2009)
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6Confidential & Proprietary - OpenX Technologies, Inc.
Solution #1…People, not just placesSolution #1…People, not just places
Audience value increasingly importantAudience value increasingly important
Web-wide audience measurementWeb-wide audience measurement
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7Confidential & Proprietary - OpenX Technologies, Inc.
Solution #2…Understand people’s interests and intentSolution #2…Understand people’s interests and intent
Basic Data (Demo, Geo, etc.)Basic Data (Demo, Geo, etc.)
Rich Data (Behavior, Transaction, etc.)Rich Data (Behavior, Transaction, etc.)
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8Confidential & Proprietary - OpenX Technologies, Inc.
Solution #3…Audience Pooling business modelsSolution #3…Audience Pooling business models
BID $5.25
AutosKite
Boarding
HomeLoan
LocalAutos
Travel
Cameras
LocalAutosHome
Loan
Bicycles
Bicycles
Travel
Cameras
BID $9.50 BID $1.70 BID $0.80Markets/ExchangesMarkets/Exchanges Ad NetworksAd Networks
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9Confidential & Proprietary - OpenX Technologies, Inc.
Solution #4…Deliver more relevant adsSolution #4…Deliver more relevant ads
TargetedTargeted
PersonalizedPersonalized
CustomizableCustomizable
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10Confidential & Proprietary - OpenX Technologies, Inc.
Solution #5…Better balanced advertising within user experienceSolution #5…Better balanced advertising within user experience
SearchSearchNon-Commercial SearchNon-Commercial Search
Commercial SearchCommercial Search
Display (current form)Display (current form) Dynamic page structureDynamic page structure
Dynamic ad/edit ratioDynamic ad/edit ratio
““Total page” user experienceTotal page” user experience
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DisplayDisplayAd Network #2
11Confidential & Proprietary - OpenX Technologies, Inc.
Solution #6…Allow for mass advertiser participationSolution #6…Allow for mass advertiser participation
DisplayDisplayAd Network #1
DisplayDisplayAd Network #3
DisplayDisplayPortal #2
DisplayDisplayPortal #1
DisplayDisplayPortal #3DisplayDisplay
Ad Network #4
DisplayDisplayAd Network #5
DisplayDisplayAd Network #6
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People, not just Places
Interests & Intent – beyond Context & Action
“Audience Pooling” Business Models
Ad Relevance
Balanced Usability
Mass-market Advertiser Participation
In summary…what is neededIn summary…what is needed
12Confidential & Proprietary - OpenX Technologies, Inc.
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Keep the faith!!!Keep the faith!!!
13Confidential & Proprietary - OpenX Technologies, Inc.
"We are continually faced with a "We are continually faced with a series of great opportunities brilliantly series of great opportunities brilliantly disguised as insoluble problems."disguised as insoluble problems."
-- John W. Gardner-- John W. Gardner
2010-2011 => Look for a 2010-2011 => Look for a RenaissanceRenaissance in in
online advertising: online advertising:
→ QualityQuality
→ DiversityDiversity
→ ValueValue
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Thank You For Your TimeThank You For Your Time