Download - The online ad technology marketplace

1 Sep 19th, 2011, New York City

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Agenda •  Introduc*on – Jeffrey Silverman •  Presenta*on – Sco9 Hoffman, Geoff Judge •  Break (Networking) •  Panel Roundtable Discussion led by Nick MacShane – Progress Partners

•  Brian Kaminsky – Huffington Post • Art Muldoon – Accordant Media • Albert Azout – Sociocast •  Sco9 Meyer – Evidon • Moritz Loew – MSNBC •  Jon Greenwood – Media Informa*on Group

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Coaching Team Jeffrey Silverman Partner Laconia Ventures Former execu*ve at DoubleClick On Twi9er @LaconiaVentures Geoff Judge Partner iNovia Capital Former execu*ve and founder at 24/7 Media On Twi9er @GPJudge Sco4 Hoffman COO Sociocast Former execu*ve at Yahoo On Twi9er @Cliqology

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•  Bill Clinton is president. •  Jerry Garcia is s*ll singing. •  Toy Story is leading at the box office. •  The O.J. Simpson trial is pre-‐emp*ng soap operas. •  The Dow Jones has closed above 4,000 for the first *me. •  Pamela Anderson wed Tommy Lee in a white bikini. •  “Java” is s*ll a cup of coffee. •  Email is something for computer science geeks. •  And online adver*sing was about to be born….

The year is 1995

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•  Buying online media was a simple transac*on •  The publisher had a direct rela*onship with marketer •  “Banner” ads were predominant •  Purchased inventory ran on a publisher, either every page or randomly, for the length of contract

•  There was no underlying technology •  There was no repor*ng

In 1995…

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•  A technology called Ad serving was born •  Defini*on: Ad serving describes the technology and service that places adver*sements on web sites.

•  Typical func*onality of ad servers include: •  Uploading adver*sements and rich media. •  Trafficking ads according to differing business rules. •  Targe*ng ads to different users, or content. •  Repor*ng impressions, clicks, post-‐click & post-‐impression ac*vi*es, and interac*on metrics.

•  Ad serving is the godfather of all the ad technologies in the marketplace today

•  Ad serving was primarily a back-‐office solu*on

In 1996…

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•  Avenue A & Adver*sing.com •  Tracking backend performance

•  Dart For Adver*sers (DFA) •  Affiliate Networks

•  Amazon •  Linkshare, BeFree, Commission Junc*on

•  Rich Media •  AdSense

Significant other advances

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Social Media creates massive amounts of “data exhaust” on people

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1995 2010 % Data Size / Webpage 14.1k 320.1k +2,285%

Data Transfer Speed 28.8k Baud 10.15 Mbps +44,020%

People on the Net 16 Million 1,971 Million +12,318%

Hours consumed .5 Hours a Week 13 Hours a Week +2,600%

Data Storage Cost $100 = 117 Mb $100 = 1.2 Tb +1,041,000%

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•  To the investor •  A lot of capital investments have been made in the adver*sing ecosystem space, and investment con*nues.

•  To the entrepreneur •  Barrier to entry into the space has never been lower; So if you can dream it do it, but don’t forget someone else may have already or will “copy” your solu*on if your successful.

•  To the consumer •  A future where relevant marke*ng messages are delivered when they make the most impact.

What’s all this technology mean

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The complete picture

Visit: www.industrymaps.com © 2011 Progress Partners, Inc. All right reserved.

General'Ad'Agency Media'Buying'Platform DSP Ad'Exchange Contextual Search CPA Social'Tool Portals Social'NetworkHavas Mobext+(Havas) AdBuyer.com adapTV ContextWeb Bing+(MSFT) Advertising.com Clearspring Aol FacebookIPG ATOM AppNexus AdBrite Google Google Affiliate+Fuel Disqus MSN identifiedMDC+Partners AudienceFuel Chango ADECN+(MSFT) Peer39 Kanoodle+(Seevast) Azoogle+Ads Gigya Windows+Live LinkedInOmnicom+Group b3 Collective BidPlace+(AOL) Pulse360+(Seevast) LookSmart C+J+(VCLK) Livefyre Yahoo! Google+Publicis Cadreon DataXu ContextWeb Yahoo! MIVA CPX ShareThis MySpaceWPP Varick+Media Invite+(GOOG) DoubleClick+(GOOG) Yahoo! News'&'Info

Vivaki LucidMedia OpenX Behavioral CPM Publisher'Tool CNN+(TWX) BlogDigital'Ad'Agency MediaMath RightMedia+(YHOO) AudienceScience Email 24/7RealMedia+(WPP) FatTail HuffPo+(AOL) Blogger360i Ad'Optimization TheTradeDesk SpecificMedia Adknowledge BurstMedia Lijit IMDb+(AMZN) TypePadAcronym+Media Adisn TURN Data'Exchange/Aggr Undertone+Netwk silverPOP Casale Yieldbot MSNBC+(CMCS.A) XangaAKQA Adroit+(MediaMath) Acerno+(AKAM) Wunderloop DrivePM+(MSFT) YieldBuild NYTimes.comAve+AcRazorfish AudienceFUEL DSP'I'Data AlmondNet [X+1] InIText Gorilla+Nation Yieldex VideoBeyond+Interactive ChoiceStream Magnetic BlueKai Kontera PrecisionClick Content Aol+Carat+Fusion Criteo Media6Degrees Demdex+(Adobe) Social Vibrant+Media Right+Media+(YHOO) SSP AC+(YHOO) Dartfish.tvGSD&M Dapper+(YHOO) Simpli.fi eXelate 33Across Tribal+Fusion AdMeld+(GOOG) Demand+Media FacebookiCrossing+(HTV) Exponential+Interact. Triggit Legolas+Media Adapt.ly RSS United+Online PubMatic Patch+(AOL) Vimeo+(IACI)IMPAQT SnapAds X+1 Lookery Buddy+Media FeedBurner+(GOOG) Rubicon Skyword Youtube+(GOOG)Innovation+Interact. Sociocast Magnetic Facebook Pheedo CPC Suite101iProspect Teracent Verification/Attribution RapLeaf Media6Degrees AdBrite Ad'Server Photo'SharingMoxie Tumri Admetry TrackSimple Mobile AdCloud Accipter+(MSFT) Email FacebookOMD+Digital AdSafe Video'/'Rich'Media AdMob+(GOOG) Google AdVantage Gmail FilmloopOrganic Data'Optimization AdXpose Data'Supply Adconion ADTECH+(AOL) MSN+Ad+Center AdTech+(AOL) MSN+Hotmail FlickrRadiumOne Accordant+Media AnChor Acxiom BBE Crisp+Wireless Yahoo! Atlas+(MSFT) Yahoo!+Mail PhotoboxThe+MiG Adchemy ClickFacts Datalogix+(ORCL) Brightcove Go2 Bluestreak+(Aegis) PhotobucketUniversal+McCann Aggreg.+Knowledge ClickForensics eBay BrightRoll Greystripe Vertical'Focus DoubleClick+(GOOG) Search Photorocket

AudienceFUEL Convertro Experian LightningCast+(AOL) InMobi Adify MediaPlex Aol. WinkflashEmerging'Holding Bizo Dimestone Gageln Revver JumpTap BOOM+Media+(Eons) OpenAdstream Ask+(IACI)Arkitektive Brilig DoubleVerify Hoovers ScanScout+(Tremor) Xtify FreeFi OpenX Bing+(MSFT) Online'GamingEngine+UK/USA Datran+Media Evidon Infogroup Tremor+Video Millennial+Media Glam ValueAd Google ActivisionMagnet+360 Dotomi+(VCLK) TagMan IRI Vibrant Mojiva Gorilla+Nation Zedo Technorati EAProject:Worldwide JovianData Vizu TargusInfo VideoEgg Transpera IDG+Tech+Network Yahoo! NewtoyW2+Group Milabra YuMe Jumpstart Yield'Optimization Pogo

Permuto Analytics Ad'Ops/Infrastructure Local'Focus NetShelter Yieldbot RovioQuantcast AdSafe DDS Affiliate'Programs Centro Travel+Ad+Network Yieldbuild SecondLifeRed+Aril Coremetrics+(IBM) Adify Affiliate+Fuel Go2 ZDNet Yieldex Yahoo!+Games

Google+Analytics Centro C+J+(VCLK) MediaSpan ZyngaRich'Media Localytics MediaBank Junction WorldNow Proprietary App'NetworkEyewonder Omniture+(ADBE) Operative LinkShare iAd+(AAPL) W3iPictela+(AOL) Trust+Metrics Solbright Blog FreeFi ZuMobiPointRoll+(GCI) Unica+(IBM) Theorem Audience'Targeting Federated+MediaSpongeCell Webtrends TraffIQ xGraph Pajamasmedia

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Advertising/Media Agencies


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Defini8on: Act as purchasing agent and execu*on arm on behalf of marketers. Research, data, crea*ve may also be included. Trading desks, op*miza*on by media vendor, evalua*on & ac*va*on of 3rd party technology.

Upside: Not associated with a single point solu*on; can use all technology available for benefit of clients

Downside: Ad Agencies are primarily service businesses and con*ngent of good rela*onships with major marke*ng clients; act cau*ously as it isn’t their direct money; some*mes in conflict with client needs.


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Current marketplace: Adver*sing/media agencies con*nue to consolidate under the major holding companies. Independent agencies specializing in social media are hot acquisi*on targets.

In the Future: Look for more media agencies to develop or acquire their own technology; for example, WPP’s Xaxis, a data mining/exchange.


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2006 – 6 Holding Companies

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2010 – 4 Holding Companies

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Ad Exchanges


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Defini8on: “Wall Street” like ad exchanges are technology plaoorms that facilitate the bidding, buying and selling of online media adver*sing inventory from mul*ple ad networks. The approach is technology-‐driven as opposed to the historical approach of nego*a*ng price on media inventory.

Upside: Ad exchanges can be useful to both buyers (adver*sers and agencies) and sellers (online publishers) because of the efficiency & liquidity they provide.

Downside: Publishers have li9le control over “intangible” pricing like brand, caliber of content, etc. Supply/demand economics is the driving force, and to date supply has consistently out-‐paced demand.

Ad Exchanges

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Ad Exchanges

Current Marketplace: Ad exchanges and the organiza*ons that purchase inventory on them (commonly referred to as DSPs) are growing rapidly, as they present an opportunity to use advanced data output to drive scale and ROI on media investments.

In The Future: Look for private exchanges, where associated publishers who have rela*onships offer their own inventory to selected marketers on an automated basis.

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Marketing Data Services


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Defini8on: Data Services companies perform a variety of different ac*vi*es around marke*ng data primarily; collec*on, storing, and selling data. Some data services also make data opera*onal, by op*mizing audiences, crea*ng marke*ng segments, and matching offline customers to online customers.

Upside: Data has proven itself a very valuable commodity over the past several years. Search behavior data is one of the large contribu*ng factors to Google. Many other data sets, like Social & Check-‐in, have yet to be untapped. Data can be applied to many online channels, like Video & Mobile.

Downside: The two current dangers facing the marke*ng data services companies are an overreliance on cookie technology and US and Global legisla*on around consumer privacy.


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Current Marketplace: The marke*ng data services are s*ll in their nascence. There is huge fragmenta*on in how data is accessed and how it is used. Quality of data and collec*on methods are s*ll heavily scru*nized.

In The Future: Look for centralized clearing houses for data. Companies like Blue Kai and eXcelate have already started this trend. Look for the big owners of marke*ng data to join the marketplace; Google, Facebook, and Yahoo.

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Ad Networks


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Defini8on: An online adver*sing network or ad network is a company that connects adver*sers to web sites that want to host adver*sements. The key func*on of an ad network is aggrega*on & arbitrage of ad space supply from publishers and matching it with adver*ser demand.

Upside: Ad Networks have large reach, various different points of data collec*on, which lead to big revenue. It is es*mated that Ad Networks capture 20%+ of all online adver*sing spending. Downside: As networks are dependent on performance, margin pressure, compe**on, barrier to entry low, constant need to develop/purchase new technology, need to tap new inventory sources. Typically guarantee CPM & $ Volume to Publisher.

Ad Networks

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Ad Networks

Current Marketplace: Ad networks choosing sides (morphing into SSP or DSP). Ver*cal content networks models gaining trac*on. We are also seeing growth in Mobile ad networks.

In The Future: While the role of Ad Networks is a certainty, because of their ease of use (for both publisher and marketer), their longevity in current form is endangered, primarily by the advent the exchanges and the evolving nature of programma*c buying and selling of adver*sing inventory.

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Ad Networks – By Pricing Model


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Performance Marke8ng: Performance marke*ng is a marke*ng prac*ce in which a business rewards one or more media partners for each visitor or customer brought about by the media Partners' own marke*ng efforts. Cost Per Thousand (CPM): CPM is used for measuring the worth/cost of a specific e-‐marke*ng campaign. Each *me a online adver*sement loads onto a user's screen it counts as one impression.

Cost Per Click (CPC): is an Internet adver*sing model used to direct traffic to websites, where adver*sers pay the media service when the ad is clicked.

Cost Per Ac8on (CPA): (some*mes known as Pay Per Ac8on or PPA) is an online adver*sing pricing model, where the adver*ser pays for each specified ac*on (a purchase, a form submission, and so on) linked to the adver*sement.

Ad Networks – By Pricing Model

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CPM • Cost Per Thousand • Performance Risk

shouldered Marketer

CPC • Cost Per Click • Shared Risk

between Marketer and Publisher

CPA • Cost Per Activity • Performance Risk

shouldered by publisher

An Aside: Who owns the Risk

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Publisher Tools


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Defini8on: HTML elements that can easily be added to a web page, instead of the Publisher having to build them. Common types of Publisher Ad Tools are Search, Social Sharing, Ra*ngs/Reviews, Commen*ng systems. Upside: These tools have wide coverage and reach. Their appeal and ease of use, even for a rela*vely unsophis*cated web publisher have allowed these companies to successfully cross the bridge between professionally produced web sites to user generated content. Downside: Publisher ad tools are rela*vely easy to build, so distribu*on and syndica*on of the tools becomes the only barrier to entry. Rela*onships with publishers is oven *mes not mone*zable through direct adver*sing in within the space of the widget

Publisher Tools

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Publisher Tools

Current Marketplace: Many Publisher Ad tools are currently abandoning an overt mone*za*on efforts with direct adver*sing and rather becoming suppliers of data to the ad marketplace.

In The Future: Look for a con*nued roll-‐up in this space. As independent publisher tools become more popular and garner higher distribu*on, bigger companies with large sets of tools will buy them up.

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Publisher Ad Infrastructure


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Defini8on: Sets of tools like Ad Servers, Ad Op*mizers, Sell Side Plaoorms (SSP) all designed to deliver the maximum revenue for a publishers ad inventory. The bulk of the these tools decide where, when, and how many *mes to place and adver*sement on a publishers website.

Upside: These tools are ubiquitous, especially Ad Servers, are an essen*al part of any successful website adver*sing business.

Downside: This is a mature business, with li9le innova*on or growth.


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Current Marketplace: The technology side of the business has largely gone undeveloped since the advent of the adver*sing networks & the combined purchases of DoubleClick by Google & Atlas by Microsov. Commodity like pricing.

In The Future: Look for companies that gather/protect/organize publisher data sets and integrate into ad servers for op*miza*on of inventory within their site, and op*miza*on of price that a publisher can get from a buyer.

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Publishers / Content Creators


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Defini8on: The dissemina*on of literature or informa*on — the ac*vity of making informa*on available to the general public. In some cases, authors may be their own publishers, meaning: originators and developers of content also provide media to deliver and display the content.

Upside: The web has allowed any one to become a content creator and disseminator of news, informa*on and/or opinion as very low cost of distribu*on.

Downside: One person (bloggers) can now compete on equally foo*ng with giant publishers (Conde Nast).


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Current Marketplace: Tradi*onal publishers (Time, Inc., NY Times, etc.) are not only struggling to compete with online publishers (TechCrunch) and as well as protect their stories from aggregators (Google, Yahoo, etc.). but develop a revenue stream beyond adver*sing.

In The Future: Look for tradi*onal publishers to streamline their businesses by focusing more on digital distribu*on and less on print. Also expect to see more publishers charge for their online content as NY Times and Wall Street Journal does.

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15 minute break

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•  Nick MacShane -‐ Founder & Sr. Managing Director – Progress Partners – Moderator

Panel Roundtable Discussion

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•  Brian Kaminsky – SVP / GM, Huffington Post Media Group


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•  Art Muldoon – CEO & Co-‐Founder, Accordant Media


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•  Albert Azout – CEO & Founder, Sociocast


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•  Moritz Loew – Chief Agency Officer, MSNBC Interac*ve


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•  Sco9 Meyer – CEO & Founder, Evidon


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•  Jon Greenwood – EVP & GM, Media Innova*on Group


59 Visit: www.industrymaps.com © 2011 Progress Partners, Inc. All right reserved.


Vivaki LucidMedia OpenX Behavioral CPM Publisher'Tool CNN+(TWX) BlogDigital'Ad'Agency MediaMath RightMedia+(YHOO) AudienceScience Email 24/7RealMedia+(WPP) FatTail HuffPo'(AOL) Blogger360i Ad'Optimization TheTradeDesk SpecificMedia Adknowledge BurstMedia Lijit IMDb+(AMZN) TypePadAcronym+Media Adisn TURN Data'Exchange/Aggr Undertone+Netwk silverPOP Casale Yieldbot MSNBC'(CMCS.A) XangaAKQA Adroit+(MediaMath) Acerno+(AKAM) Wunderloop DrivePM+(MSFT) YieldBuild NYTimes.comAve+AcRazorfish AudienceFUEL DSP'N'Data AlmondNet [X+1] InNText Gorilla+Nation Yieldex VideoBeyond+Interactive ChoiceStream Magnetic BlueKai Kontera PrecisionClick Content Aol+Carat+Fusion Criteo Media6Degrees Demdex+(Adobe) Social Vibrant+Media Right+Media+(YHOO) SSP AC+(YHOO) Dartfish.tvGSD&M Dapper+(YHOO) Simpli.fi eXelate 33Across Tribal+Fusion AdMeld+(GOOG) Demand+Media FacebookiCrossing+(HTV) Exponential+Interact. Triggit Legolas+Media Adapt.ly RSS United+Online PubMatic Patch+(AOL) Vimeo+(IACI)IMPAQT SnapAds X+1 Lookery Buddy+Media FeedBurner+(GOOG) Rubicon Skyword Youtube+(GOOG)Innovation+Interact. Sociocast Magnetic Facebook Pheedo CPC Suite101iProspect Teracent Verification/Attribution RapLeaf Media6Degrees AdBrite Ad'Server Photo'SharingMoxie Tumri Admetry TrackSimple Mobile AdCloud Accipter+(MSFT) Email FacebookOMD+Digital AdSafe Video'/'Rich'Media AdMob+(GOOG) Google AdVantage Gmail FilmloopOrganic Data'Optimization AdXpose Data'Supply Adconion ADTECH+(AOL) MSN+Ad+Center AdTech+(AOL) MSN+Hotmail FlickrRadiumOne Accordant'Media AnChor Acxiom BBE Crisp+Wireless Yahoo! Atlas+(MSFT) Yahoo!+Mail PhotoboxThe'MiG Adchemy ClickFacts Datalogix+(ORCL) Brightcove Go2 Bluestreak+(Aegis) PhotobucketUniversal+McCann Aggreg.+Knowledge ClickForensics eBay BrightRoll Greystripe Vertical'Focus DoubleClick+(GOOG) Search Photorocket


