Jamie Lomas

Vice President, Sales and Client Services

The Display Advertising Ecosystem:The More You Know, The More You’ll Grow

Agenda

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Playing the Display Field

An Advertiser’s Basic Choices

Ad Agencies

Publishers

Ad Networks

Ad Exchanges

Display Technology Platforms

An Advertiser’s Checklist

How to Get Started

Overview

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Online Display renaissance:

“…the display part of our business is likely to be the next billion dollar business.”

Eric Schmidt, CEO of Google

“Display Advertising Will Surge by 10.5% in 2010“ Nothing But Net 2010 Internet Sector Outlook

Overview (cont.)

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Renaissance has pros and cons for marketers

Pro: More options enter the market every day

Con: Ecosystem has become increasingly complex

Advertisers can hire an agency, or manage display in-house

Playing the Display Field

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Formats

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SWF (Shockwave Flash)

Static (GIF, JPG)

HTML

Rich Media (Pointroll, Eyeblaster) Expandables, page takeovers

Video Pre roll, post roll, mid roll

In-banner

Mobile display units

Dynamic Ad Units

An Advertiser’s Basic Choices

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Ad Agencies

Publishers

Ad Networks

Ad Exchanges

Display Technology Platforms

An Advertiser’s Basic Choices

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Questions to ask:

Should I use an advertising agency or not?

Should I buy directly from media publishers and/or through an intermediary to reach my intended audience?

If I want to buy through an intermediary, should I look to ad networks or ad exchanges?

Should I pay for technology solutions or “platforms” to help me or my agency manage my campaigns?

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Agency

What Do Advertising Agencies Provide?

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Broad spectrum of advertising services, from creative to media, strategy to tactical execution, across both offline and online media channels

Many different marketing services under one roof, streamlining costs and management, while ensuring a common, coordinated strategic underpinning to both media and creative executions

Over 85% of the total US spending on display advertising in 2007 came from the top 500 largest display advertisers, and the vast majority of these advertisers use the top digital agencies (Nielson AdRelevance)

With the advent of more streamlined ad technology platforms smaller, more regionally focused traditional agencies can now offer online display advertising (more later)

What Do Advertising Agencies Provide?

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Questions to ask:

Are my budgets large enough to ensure I’m an attractive client and will thus get great service from one of the top-tier digital agencies?

Does my agency provide both media and creative services, and if so, what are the fees for each?

Is my agency an expert in digital media and specifically online display?

Does my agency utilize best of breed technologies to cost effectively manage the logistics of my campaign, and also measure and drive effective ROI performance?

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Online Publishers

Online Publishers

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Ad space brought directly through an in-house sales force or a self-service technology, or indirectly via ad networks or ad exchanges

They often use either homegrown or commercially available ad serving/inventory management technology

Because these technologies and teams can be expensive to employ, they typically require advertisers to spend monthly minimums in the many thousands or tens of thousands to get this full service.

With the advent of more streamlined ad technology platforms smaller, more regionally focused traditional agencies can now offer online display advertising (more later)

Online Publishers

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Ad Networks

Ad networks

Focus on audiences, not sites

Remnant, “Class 2”

Transparent Networks: full details on where their ads will be placed.

Blind Networks: advertisers must relinquish control over where their ads will run.

Ad networks

Increased Targeting Capabilities to Reach Discrete Audience Segments

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<< ---- Reach ---- >>

Retargeting

Brand Keyword (Display)

Competitor Keyword (Display)

Category Keyword (Display)

Channel

Site

Behavioral / Intent

Demographic

Geographic

RON

Ad networks

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Ad Exchanges

Ad exchanges

Courtesy of Right Media

Ad Exchanges

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Display Technology Platforms

Buying Platforms

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Eliminate the Friction of Online Display Advertising:

Automated

Buying

Platform

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Scalable Access to Media Sources API enabled access to leading sources of inventory

Buying Platforms

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Creative Iteration and Optimization on the Rise

• Template-based creative systems with customization intelligence

• Dynamic creative systems that generate creative on the fly

• Leverage advanced targeting techniques to test creative elements relative to placement

Images, text, and colors are all editable for rapid testing and optimization without paying excessive creative fees

Buying Platforms

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Growing Measurability and Analytics Options

Need transparency

across all sources.

Buying Platforms

Reason #9

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Annual budget:

* Testing costs include creative development and media minimums

# Creatives:

# Media Sources:

3

3

10

10

10

10

$60,000 $600,000 $6,000,000

With Automated Display Technology

Using Traditional Planning & Buying

Costs to Test Display Ads Are Shrinking

Testing Cost* as a % of Total Annual Display Budget

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Display Advertising Checklist

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New to display: My goals are: (brand / awareness vs. performance / DR)

My yearly/quarterly budget is:

My specific target audience is:

I need X type of reporting to measure success:

I have X current display ads already created:

I have had success placing display ads through the following providers (and why):

I faced challenges when placing display ads through the following providers (and why):

Experienced with display: How much of my overall display budget do I spend on testing / set up costs? Can this

be optimized?

Is my ROAS similar or better than my competition?

Am I delivering the right messages to the right target audiences?

How can I have a more targeted ( personable) conversation with my prospective clients?

Can geo targeting help?

How can creative costs be lowered?

Display Checklist

To learn more, request the white paper:

Display Advertising Ecosystem

Jamie Lomas: jlomas@adready.com

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