john yearout digitaldownload_adclub_idsd
TRANSCRIPT
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Proprietary and confidential proposal ©2009 Undertone Networks
Quality | Control | Results
DIGITAL DOWNLOAD:
DSPs and the Ad Network Shakeout
Presented by: John Yearout, Sales Director, Undertone Networks
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24 Categories+
192 Companies
OVERWHELMING
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Timeline
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Networks / Rep firms launch as few websites
have sales staff
1995
Dot Com Bust – many networks go out of business
1999/2000
2002
Ad Network Expansion, Ad ExchangesM&A Frenzy
2006/2007
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2007: Why So Many Networks?
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Boom Resulted in Some Questionable Practices
• Help with campaign performance
• Reduce cost and drive profitability
• Relatively easy to execute / difficult to track
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Fraud Gained Traction In Display Advertising
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“Half Of Ad Impressions, 95 Percent Of Clicks
Fraudulent.”
“Software code running behind the scenes opened
more than 40 Web pages, each including three ads …
which were invisible to visitors.”
“Pay-Per-Click Web Advertisers Combat Costly Fraud.”
“Evolution of Click Fraud: Massive Chinese Operation
DormRing1 Uncovered. Racks up $3M in Fraudulent
Clicks in Two Weeks.”
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Organized Click Fraud (Dormring1)
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Invisible iFrames, Invisible Ads
• “Software code running behind the scenes opened more than 40 Web pages, each including three …which were invisible to visitors.”
• iFrames can be manipulated to serve invisible ads
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The Daisy Chain
• Mpire executed 11 buys on nine networks and one exchange
– Actual fulfillment came from 45 downstream
networks and over 100,000 sites as a result of daisy-chaining
Network A
Network B
Network CAdvertiser
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Irrelevant International Impressions
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Timeline
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Networks / Rep firms launch as few websites
have sales staff
1995
Dot Com Bust – many networks go out of business
1999/2000
2002
Ad Network Expansion, Ad ExchangesM&A Frenzy
2006/2007
DSPs and the Ad Network “Shakeout”
2010
Everyone wants to be a network – publishers,
holding companies, etc.
2008/2009
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Market Perspective: 2010 Forecast
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U.S. Display Advertising
DSPs3%
Source: GCA Savvian
U.S. Display Advertising: $8 billion
DSPs:$200 million
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U.S. Display Advertising
DSPs25%
Market Perspective: 2014 Forecast
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Source: GCA Savvian
U.S. Display Advertising: $16 billion
DSPs:$4 billion
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Let’s Figure This All Out
Media Buying Platforms Ad NetworksAd ExchangesDSPs
Who do you use?
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Media Buying Platforms Ad NetworksAd ExchangesDSPs
DSPs: Demand Side PlatformsTechnology platforms that enable buy-side
entities to buy in an automated fashion across multiple distribution sources.
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Media Buying Platforms Ad NetworksAd ExchangesDSPs
MTDs: Media Trading DesksIn-house agency trading desks that leverage
DSPs and exchanges to buy media on behalf of agency clients.
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Know the Advantages, Know the Trade-offs
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DSPs
VS
Access toScale
RTB/Low Cost
Control Data Usageand Costs
Limited Quality Control
Limited Rich and Complex Media
New Skillset/Headcount
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Know the Advantages, Know the Trade-offs
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“Our buyers are very different. They are not trying to buy the
[home page] takeovers from the publishers. They actually want to
get mass reach on very commoditized banners.”
Nat Turner, CEO
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Inventory Acquisition Model is Key Selection Factor
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Ad Exchanges
Other Networks
Portals
Direct from Publishers
Combination of the Above
“Those ad networks that simply aggregate insertion orders and fill them through either daisy chaining or exchange based buying will have a limited run.”
Brendan Moorcroft, CEO
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AGENCY
The Media Plan of Today
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PortalsEndemic Publishers
100,000+ Publishers
Networks
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AGENCY
The Media Plan of the Future
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PortalsNetworksEndemic Publishers
100,000+ Publishers
DSPs
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Five Things Networks Must Deliver to Remain Relevant
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Unique Targeting
Insights/Research Service
ProductsUnique Inventory
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Thank you for attending!
For more information, please contact:
John Yearout
Director of Sales
(415) 391-3646 ext. 110
www.undertone.com
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