04 December 2007

WEBSITE MONETIZATION

Presented to: I.C. Stars

ONLINE ADVERTISING REVENUE GROWTH

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REVENUES BY FORMAT/CATEGORY

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ONLINE ADVERTISING BY PRICING MODEL

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REVENUE BY MAJOR INDUSTRY CATEGORY

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CURRENCY OF THE WEB

• Impression: a measurement of responses from a Web server to a page request from the user browser, which is filtered from robotic activity and error codes, and is recorded at a point as close as possible to opportunity to see the page by the user.

• Ad Impression: 1) an ad which is served to a user’s browser. Ads can be requested by the user’s browser (referred to as pulled ads) or they can be pushed, such as e-mailed ads

• Cost-Per-Thousand (CPM): media term describing the cost of 1,000 impressions. For example, a Web site that charges $1,500 per ad and reports 100,000 visits has a CPM of $15 ($1,500 divided by 100).

• Inventory: The number of ads available for sale on a website• Cost-per-Whatever (CPW): Cost-per-order, cost-per-

transaction, cost-per-acquisition, cost-per-lead, cost-per-click, etc.

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AUDIENCE MEASUREMENT

• 3 accredited third-party audience measurement institutions– ComScore– Nielsen//Netratings– I/Pro

• Other audience measurement systems– Compete.com– Quantcast.com

• Page Views vs. “Hits”– Page Display: when a page is successfully displayed on

the user's computer screen

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AD-UNITS

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CALCULATING INVENTORY

• Traffic = Unique Users * avg. page-views per user

• Available Impressions = Traffic * ads per page• Sell-through: How many impressions do you

think you can sell in a given month

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SAMPLE REVENUE FORECAST

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AD-UNIT OPPORTUNITIES

• Standard IAB Ad-units• Rich Media• Broadband Media• Pre-roll• Email Newsletters• Site or page skinning• Custom build-out programs• Slotting fees• RSS Ads• Advertorials

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AD SERVING VS. WEB SERVING

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AD REVENUE OPPORTUNITIES: AD NETWORKS

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AD REVENUE OPPORTUNITIES: AD NETWORKS

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2.6%

12.7%

23.6%

24.6%

30.1%

33.6%

38.1%

39.9%

43.9%

51.5%

54.0%

62.6%

66.0%

73.9%

84.6%

Rydium Network

Undertone Networks

Vibrant Media

CPX I nteractive

ContextWeb

Gorilla Nation Media

AdBrite

PrecisionClick

Burst Media

24/ 7 Real Media

Blue Lithium

Casale Media Network

Tribal Fusion

ValueClick

Advertising.com

% Reach

AD REVENUE OPPORTUNITIES: SEARCH ENGINES

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Google technology places your ad on the most relevant content pages

AD REVENUE OPPORTUNITIES: SEARCH ENGINES

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