Betting the farm on online

agenda

• Digital publishing market• Revenue opportunities• High level systems match• Next steps

Where is the money?

ecommerc

e

subscr

iptions (onlin

e)

PSMS (

subscr

iptions)

PSMS (

transac

tions)

adve

rtisin

g (lar

ge)

even

ts/tick

eting

search

adve

rtisin

g (cla

ssified

s)

ad netw

orks0

500

1000

1500

2000

2500

3000

3500

4000

0%

20%

40%

60%

80%

100%

120%

est Revenue

est gross margin

Traditional Advertising model is inherently non optimised.

Audience

pric

e

Total re

ach

target

wastage

In a low transaction cost world…

• What is the media revenue model– Platform– Content– Audience Data

Behavioural Targeting

Data optimization

(Bizo, Quantcast, adchemy)

Data Exchanges(Bluekai, eXelate, Rapleaf)

Google AdX

AdWords (+ access to

GCN)

AdSenseWorkflow

(DSM, freewheel does as well)

Video serving with DRM, etc(eg Instream,

Freewheel

DNB,Adify, etc)

Video playersFreewheel, Brightcove

Ad Planners (eg Google Ad Planner,

Comscore, Akamai)

Analytics(Omniture, GA, etc)

Adsense Backfill

Direct Sales

Billing systems (eg SAP)

External “Sales House”Advertiser

Agency/ Ad Network / Affiliate Network

Buyers Sellers

Publisher Website

SSP: Seller Optimizing(Rubicon, Admeld,

Pubmatic)

Adservers DFP / other

Media Buyers(vivaki, Atom,

cadreon)

Dart Search

MSN

Deal

DealDFA /other

Buyer info

Seller info

eCPM(optimize)

Adapt (optimize)

CRM (eg Salesforce)

Data suppliers and consolidators (eBay, Expedia) (Business Objects, SAS, Claritas)

Online Ad Technology Ecosystem

Planning tools

(Aprimo, Unica)

Mobile Ad serving

Creative Optimization

(Teracent, Adready)

Demand Side Platforms

(DataXu, Turn, InviteMedia)

Verification Attribution

(DoubleVerify, mPire)

Other Ad Exchanges

AdECNRighMedia

OpenXAdvertising.co

m

Ad NetworksVertical, Horizontal,

targeted , performanceGoogle CN

Implementation, migration & Integration Marketer Services Exchange Brokering

Private Network

Email

Overall Advertising Media

total

30%

45%

20%

5%

mobile

premium search network social

Premium value chain - media

100%spend

15%

4%

1%

30%

49%

publisheragency AdvertiserAdserver

publisherAdserver

Salescomms

data

1%

total

15%

40%

5%5% 5%

30%

Network Value Chain – Audience

Advertisers Ad Network Data Provider

Ad Exchange(SSP)

Ad Serving Platform

Publisher

Source: JEGI estimates/2010 IAB report

Agency (DSP)

Starving at the feast?

Price disruption

• The death of rate cards and (almost) limitless supply disrupted traditional media pricing

Audience Reach model

Mass audience

Niche Audience

Known audience

Transactioncosts

Per Audience Value

Mass audience

Niche Audience

Known audience

Your biggest assetIs your biggest liability

PeopleCultureBudgets

What got you here, wont get you there

High level systems view

CMS (web and mobile)

cosmo Marie claire Oprah etc

Custom components

Custom components

Storage, hosting, technical support, systems updating

Editorial, content

management

Analytics and

reporting

User management, audience management

segmentation

Newsletters, sms

Ad serving, trafficki

ng

API

specialspecial

special

special

specialspecial

specialspecial

special

specialspecial

special

Ad sales

publ

ishi

ng

edito

rial

Cont

ent p

rom

otion

(ads

, SEO

, SEM

, etc

)

Who does what?

CMS (web and mobile)

cosmo Marie claire Oprah etc

Custom components

Custom components

Storage, hosting, technical support, systems updating

Editorial, content

management

Analytics and

reporting

User management, audience management

segmentation

Newsletters, sms

Ad serving, trafficki

ng

API

specialspecial

special

special

specialspecial

specialspecial

special

specialspecial

special

Ad sales

publ

ishi

ng

edito

rial

Cont

ent p

rom

otion

(ads

, Soc

ial,

SEO

, SEM

, etc

)