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this again is just a test of functionality
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I. Ad buyer will start at the agencyA. Agency uses their trading desk to buy
ads on an exchange1. Or might use a DSP
a) DSP might take data from a DMP, combine it w/Exchange ad, for Audience buying
Key Findings & ?’sI. Digital Advertising is messy
A. Lots of middle men 1. their purposes are not clear2. 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 advertisingA. 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 everyoneVI. 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 ads1. Standard2. Floating (I believe)
B. Sell ads for the sites1. Don’t believe they offer good options for selling inventory
independently
Network of 15M sites90M uniques Goes to Admeld looking for solution of mid to long tail publishers
Provides their RTB solution
gives Lijit access to 100’s of
Why do the publishers need Lijit?
Sell Side Platforms (SSP)
I. Things they doA. SSP vendors offer wide range of
services -- basic implementation to “full on strategic consulting”1. RTB2. Audience data management3. 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 saysA. 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. 11. Will need to balance cost of managing mulitple best-
in-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
DSPAllows advertisers to manage multiple ad exchange and data exchange accounts (DMP) through a single interface. Combine DMP info w/exchange
DMP
Collect data and allows for targeting
Ad ExchangeFacilitates RTB of ad inventory from media sites
Ad NetworkCan be several things, often a collection of websites.
SSPHelps publishers maximize inventory, build a private RTB. Custom sales solutions.
From the papers they surveyed; $11 in print for $1 in digital.
Study included 38 newspapers from 6 companiesNumber Circulation22 >25,0007 25,000 to 50,0009 (3) <50,000 (<100,000)
'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."
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."
THE SEARCH FOR A NEW BUSINESS MODELMarch 5, 2012HOW NEWSPAPERS ARE FARING TRYING TO BUILD DIGITAL REVENUEBy Tom Rosenstiel and Mark Jurkowitz of PEJ
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. "
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 sitesII. According to ClickZ they have over 72 M
uniques a month 3III.Allow customers to buy ads online, min is
5% of impressions for each siteIV.Targeting
A.SiteB.Age, gender, income
V. Some of the highest CPMs I’ve seen
Products and Platforms (ad layouts)