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I.

Ad buyer will start at the agency A. Agency uses their trading desk to buy ads on an exchange 1. Or might use a DSP a) DSP might take data from a DMP, combine it w/Exchange ad, for Audience buying


Key Findings & ?’s I. Digital Advertising is messy A. Lots of middle men 1. their purposes are not clear 2. Ligit represents 15M small to medium sites, uses Admeld’s RTB to reach the DSPs, Exchanges, & Ad Networks. But those content creators can’t go to Admeld direcrectly. a) Why can’t Admeld figure that out II. How did Time Warner work, ad selling? A. Only sold to large trading desks that bought lots of inventory? III. Digital Advertising is crazy complicated because everything has to scale and ads should be targeted, but when compared to advertising in a magazine, it is less effective and much cheaper. So do the complications help? IV. Yet to find good solutions for small businesses and display advertising A. Geo targeting is missing from the more public ad buying options 1. Google & FB ldrs in display, FB sells to everyone V. From an Adage article about FB as the new disruptor of online advertising, MSFTs general manager of display advertising says Facebook does’t really do display A. Seems like MSFT is just as confused as everyone VI. SSPs like DoubleClick, Admeld, and AppNexus provide the technology for publishers to sell their own ads (or allow for RTB auctions) A. As this technology gets cheaper I believe most publishers will be able to incorporate their own custom ad buying solutions to the advertisers they have built relationships with VII.Ad Networks, like Federated Media Publications, offer lots of compelling options to content creators A. Plug and play of IAB ads 1. Standard 2. Floating (I believe) B. Sell ads for the sites 1. Don’t believe they offer good options for selling inventory independently

Why do the publishers need Lijit?

Network of 15M sites 90M uniques Provides Goes to Admeld their RTB looking for solution solution of mid to long tail gives Lijit access to 100’s of publishers


Sell Side Platforms (SSP)

I.

Things they do A. SSP vendors offer wide range of services -- basic implementation to “full on strategic consulting” 1. RTB 2. Audience data management 3. Acting as primary ad server 4. SSPs help aggregate multiple indirect sales relationships and optimize revenue across them. B. SSPs help vendors manage inventory not sold directly

I.

Forrester says A. Auction based selling will be more than just for unsold inventory. 1 B. Publishers need more tools to manage data and serve primary ads than most SSPs provide. 1 1. Will need to balance cost of managing mulitple bestin-breed 3rd party vendors vs. the efficiencies with fewer vendor relationships. 1 C. Some publisher’s like that certain SSPs handle the ad buyer relationships. While others liked handling their own customer relationships and just wanted the vendor to help them with the technical support. 1 D. No one Vendor can do it all. 1 E. Make sure platform selection is a cross organizational decision. 1

Digital publishers want RTB, audience targeting, and yield management. 2


DSP Allows advertisers to manage multiple ad exchange and data exchange accounts (DMP) through a single interface. Combine DMP info w/exchange

Ad Exchange

Ad Network

Facilitates RTB of ad inventory from media sites

Can be several things, often a collection of websites.

DMP Collect data and allows for targeting

SSP Helps publishers maximize inventory, build a private RTB. Custom sales solutions.


THE SEARCH FOR A NEW BUSINESS MODEL March 5, 2012

HOW NEWSPAPERS ARE FARING TRYING TO BUILD DIGITAL REVENUE By Tom Rosenstiel and Mark Jurkowitz of PEJ

From the papers they surveyed; $11 in print for $1 in digital.

'To accelerate the transition to digital revenue, executives at nearly all of these newspaper companies agreed on one thing: Their advertising sales staffs needed to change." Study included 38 newspapers from 6 companies Number Circulation 22

>25,000

7

25,000 to 50,000

9 (3)

<50,000 (<100,000)

There are papers that "buck the trend in significant ways" with one paper showing a 63% growth in digital and 8% in print, while another showed a 50% gain in digital. This suggests that more might be done with other newspapers. "

They want to handle this transition themselves "And for the most part, the industry wants to handle this transition internally rather than turning to outside companies to help sell its digital space. At the papers that provided data, on average, 88% of their digital ad revenue came from their own staff as opposed to outside sales networks."

Those that bucked the trend were doing targeted advertising


Is a Vertical Custom Ad Network, according to Luma Investment Banking Partners. I. They have a large network of popular media sites II. According to ClickZ they have over 72 M uniques a month 3 III.Allow customers to buy ads online, min is 5% of impressions for each site IV.Targeting A.Site B.Age, gender, income V. Some of the highest CPMs Iâ&#x20AC;&#x2122;ve seen

Products and Platforms (ad layouts)

testing2  

this again is just a test of functionality

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