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DATA LOVE: NEXT 11 Conference
@jlkelly
What Can the Media Business Learn from the Airline Industry?
2
Today’s Discussion
Privileged & Confidential ©2011, Admeld Inc. All Rights Reserved.
Data Driven Advertising
Airline Industry as a Guide
How Are Publishers Reacting?
The only SSP run by publishing veterans
Founded in 2007
More than 400 premium publisher clients
45 billion transactions per month
More than 100 team members worldwide
Offices in NYC, London, SF, Berlin & Toronto
3
About Us
4
Serving The World’s Top Publishers
Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved.
Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved.
What Can the Airline Industry Teach Us?
6
Transition From Virgin to Time to Admeld
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7Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved.
Does Anyone Remember Having to CALL One of These?
8Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved.
To Get One of These …
Revenue Management Emerges/Evolves
DeregulationDeregulation
American Airlines Launches Super Savers
American Airlines Launches Super Savers
Distribution Models Change with OTAsDistribution Models Change with OTAs
Other Industries Begin AdoptingOther Industries Begin Adopting
Quantum Leap in Computing Capability
Quantum Leap in Computing Capability
Low Fare Carriers Emerge
Low Fare Carriers Emerge
1970 1980 1990 2000 2011
Commercial Airline Timeline
Multiple Approaches to Managing Revenue
Class
Y
M
Q
B
V
Seats SoldLoad Factor
Total RevenueAverage Fare
Average Fare
$420
$360
$230
$180
$120
Load Factor
Emphasis
0
13
14
55
68
150
75%
$ 25,960
$ 173
Yield Emphasis
20
23
22
30
15
110
55%
$ 28,940
$ 263
Revenue Emphasis
17
23
19
37
40
136
68%
$ 31,250
$ 230
Assume a flight leg of 2,100 kilometers; capacity = 200 seats
11Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved.11
Airlines (Publishers) Secondary Channels Clients (Buyers)
Technology (Capability) Investment improved direct relationships with
clients
This Industry has Evolved into Relevant Strong Direct and Secondary Distribution Channels
12Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved.
Direct Distribution Channel(s)
OTAs emerge:
Expedia, Travelocity, Orbitz, Priceline, Etc.
Rapid consumer Adoption
Airlines react with investment in people
& technology
Airlines take back control of multiple demand channels
13Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved.
Airline Distribution Evolution
11
2233
44
Direct Distribution Channel(s)
OTAs emerge:
Expedia, Travelocity, Orbitz, Priceline, Etc.
Rapid consumer Adoption
Airlines react with investment in people
& technology
Airlines take back control of multiple demand channels
14Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved.
Media Distribution Evolution
Ad NetworksEmerge
Ad NetworksEmerge
Rapid advertiser adoption
Rapid advertiser adoption
Publishers react with investment
Publishers react with investment
Publishers manage both direct & indirect
channels
Publishers manage both direct & indirect
channels
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Premium publishers can either evolve to meet the changing needs of advertisers, or play passive defense and let competitors grab market share.”
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How the Acceptance of RTB Developed in The U.S.
End 2009: Skepticism
Q2 2010: Open to change
Q3 2010: Acceptance
Q4 2010: Start of private exchange
Q1 2011: RTB Hits the Maintream (Prioritized Bidding, High Valuable User)
$353
$823
US RTB Spends To Double in 2011
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Forrester: US Exchange Spend 2010-2011
$1,416m
$733m
$380$592
2010 2011
RTB
Non-RTB
$353
$823 $380
$592
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
2010 2011
Non-RTB
RTB
$733
$1,416
US
exc
han
ge-tr
aded
med
ia s
pen
ding
(in
mill
ions
)
Jan-10 Jan-110%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
RTBTags
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Global Spend on the Admeld Platform
RTB 54%RTB 15%
Tags 85%
Tags 46%
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Buy Side vs. Sell Side?
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What Are Publishers Doing to Respond?
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Publishers Take Action
Designed for publishers with 30M+ unique users An exclusive marketplace with direct access to buyers,
more granular analytics
A brand-safe environment for your advertisers Deeper control over every impression
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Private Exchange Solutions Emerge
Launched Feb 2011Launched Nov 2010
Launched Jan 2011Launched Feb 2011
Launching May 2011
25Privileged & Confidential © 2011, Admeld Inc. All Rights Reserved.
Same Opportunity here in Germany
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If you don’t like change, you’re going to like irrelevance even less.”
General Eric ShineskiRetired Chief of Staff, U.S. Army
Thank You
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Jason Kelly
@jlkelly [email protected]
