Betting the farm on online
agenda
• Digital publishing market• Revenue opportunities• High level systems match• Next steps
Where is the money?
ecommerc
e
subscr
iptions (onlin
e)
PSMS (
subscr
iptions)
PSMS (
transac
tions)
adve
rtisin
g (lar
ge)
even
ts/tick
eting
search
adve
rtisin
g (cla
ssified
s)
ad netw
orks0
500
1000
1500
2000
2500
3000
3500
4000
0%
20%
40%
60%
80%
100%
120%
est Revenue
est gross margin
Traditional Advertising model is inherently non optimised.
Audience
pric
e
Total re
ach
target
wastage
In a low transaction cost world…
• What is the media revenue model– Platform– Content– Audience Data
Behavioural Targeting
Data optimization
(Bizo, Quantcast, adchemy)
Data Exchanges(Bluekai, eXelate, Rapleaf)
Google AdX
AdWords (+ access to
GCN)
AdSenseWorkflow
(DSM, freewheel does as well)
Video serving with DRM, etc(eg Instream,
Freewheel
DNB,Adify, etc)
Video playersFreewheel, 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
DealDFA /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
AdECNRighMedia
OpenXAdvertising.co
m
Ad NetworksVertical, Horizontal,
targeted , performanceGoogle CN
Implementation, migration & Integration Marketer Services Exchange Brokering
Private Network
Overall Advertising Media
total
30%
45%
20%
5%
mobile
premium search network social
Premium value chain - media
100%spend
15%
4%
1%
30%
49%
publisheragency AdvertiserAdserver
publisherAdserver
Salescomms
data
1%
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)
Starving at the feast?
Price disruption
• The death of rate cards and (almost) limitless supply disrupted traditional media pricing
Audience Reach model
Mass audience
Niche Audience
Known audience
Transactioncosts
Per Audience Value
Mass audience
Niche Audience
Known audience
Your biggest assetIs your biggest liability
PeopleCultureBudgets
What got you here, wont get you there
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
segmentation
Newsletters, sms
Ad serving, trafficki
ng
API
specialspecial
special
special
specialspecial
specialspecial
special
specialspecial
special
Ad sales
publ
ishi
ng
edito
rial
Cont
ent p
rom
otion
(ads
, SEO
, SEM
, etc
)
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
segmentation
Newsletters, sms
Ad serving, trafficki
ng
API
specialspecial
special
special
specialspecial
specialspecial
special
specialspecial
special
Ad sales
publ
ishi
ng
edito
rial
Cont
ent p
rom
otion
(ads
, Soc
ial,
SEO
, SEM
, etc
)
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