Media Buying Platform Ecosystem
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13-Sep-2014 -
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The Online Advertising Legacy Ecosystem…
Advertisers
Agencies
Websites
Users
Networks
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What Has Changed?
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Network Total funding (in millions)
Date of first
funding
Past 3 Years (in millions)
% Raised in past 3
years 1 Glam Media $124 July '04 $95 76% 2 Specific Media $110 June '06 $100 91%
3 Adconion Media Group
$86 Jan. '05 $85 99%
4 AudienceScience (Revenue Science)
$74 March '00 $0 0%
5 Federated Media $57 June '05 $55 95% 6 ContextWeb $52 June '04 $40 77% 7 Gorilla Nation $50 May '07 $50 100% 8 IGA Worldwide $48 Oct. '05 $30 62% 9 Adknowledge $48 March '06 $0 0% 10 AdMob $47 Sept. '06 $43 92% 11 Tremor Media $40 Sept. '06 $40 100% 12 Undertone Networks $40 March '08 $40 100% 13 Turn $38 Jan. '05 $23 61% 14 Double Fusion $37 Aug. '04 $26 71% 15 AdBrite $35 Sept. '04 $23 66% 16 VideoEgg $34 April '05 $30 88% 17 Kontera $33 July '06 $33 100% 18 Vibrant Media $32 July '00 $0 0% 19 Heavy.com $30 Dec. '05 $20 67% 20 Quattro Wireless $28 May '07 $28 100% 21 Grab Network $27 Feb. '05 $19 70% 22 Ripple $26 Aug. '06 $26 100% 23 Collective Media $25 Oct. '07 $25 100% 24 Adap.tv $24 Jan. '07 $24 100% 25 Lotame $23 Feb. '08 $23 100% Top 10 Total funding $697 $497 Average funding $70 $50 Top 25 Total funding $1,168 $878 Average funding $47 $35 All Networks
Total funding $1,491 $1,139
1. Networks Got Financed
Over 60 Ad Networks Received b$1.5 in VC Money in the past 5 years
+ $250m invested in acquired networks (Tacoda, Blue Lithium…)
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2. Networks Became Smart
100% Yahoo!$300m, Sept 07
129 m unique monthly visitors
BlueLithiumProprietary
Private142 m unique monthly visitors
AdconionBlueKaï
Private130 m unique monthly visitors
ValueClick MediaProprietary
100% Akamaï$95m, Oct 2008
140 m shoppersAcernoProprietary
AOL$275m, July 2007
155 m unique monthly visitors
Advertising.comTacoda
Network / Techno. Reach Affiliation
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3. Networks Transformed
• From aggregating Publishers’ inventory to sellingtargeted inventory & audience segments to marketers
• Networks’ targeting capacity increasingly supplantAgencies’ planning function (!)
• Networks increasingly appear positioned as Specialist Media Buyers, often directly competingwith Ad Agencies…
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4. Ad Exchanges EmergedAd exchanges provide marketplace efficiencies between buyers (advertisers/agencies) and sellers (publishers & networks)
The first ad exchanges were AdECN ( purchased by Microsoft in August, 2007), Right Media ( purchased by Yahoo! in April 2007), and DoubleClick Ad Exchange (owned by Google since May 2007)
Next Gen Ad Exchanges are about Premiuminventory, and Real-Time Bidding full features.
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And Now?
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New Entrants Help Advertisers Buy
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Future Buying Media Platform Will Focus on the
Global Advertising Reach
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Future Media Platforms Will…
• compare campaigns across vendors and channels
• understand which campaigns are driving customeracquisition
• account for the multiple advertising contacts made prior conversion
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Take the Whole Media « Buy » intoAccount to Improve Performance
• Advertising builds sales over time:
Brands reach customers at multiple times, across multiple channels, both online and offline , over extended periods of times…
• Display drives Search…
• Display leverages Offline Purchase…
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Advertising builds sales over time:
The “Last Ad” Standard– Last Ad Clicked– Last Ad Viewed
The RealityCampaigns reach consumers multiple times, across multiple channels, over extended periods of time
$
$
$
$
$
SearchGoogle
BannerYahoo
Rich Media & Sponsorship MSN
BannerCNet
BannerSky Sports
$
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Display drives Search:
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Display leverages Offline Purchase
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A Media Buying Vision
• Automate the media-planning process
• Collect proprietary data when ad is displayed
• Map the Lifetime Ad Exposure user by user, across multiple channels , online & offline, to deriveefficient retargeting and Conversion OptimizationModel
• Adjust the Buying process* dynamically according to the Ad Exposure Multidimensional Map
(*Both Ad Allocation & Price)
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A Consistent Display of AdsThe Media Buying Platform should take into account
all prior advertising contacts to decide:
1. which Ad a user should view next to maximizeimpact
2. how much the brand should spend on such Ad atthis specific occurrence of the Ad ExposureSequence for this user profile…
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Business Models
Media Buying Platforms could1. provide their Media Buying services on a
Freemium basis to Agencies & Marketers2. buy media on behalf of Agencies on a
commission 3. gradually evolve to an Arbitrage model as the
gap between market price and assessed spot values creates profit opportunity.