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The Ad Supported Ecosystem
5 Thoughts, 15 Slides
Darren Herman / @dherman76 Chief Digital Media Officer, The Media Kitchen / kbs+p Founder, Varick Media Management

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The Infamous Ecosystem
Luma Partners 2010 www.lumapartners.com

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The most common sentence I hear

We’re planning on monetizing our apps thru advertising.

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First: Where do I start?

Join an ad network Simplicity Hire a rep firm Amount $$ you keep

Sell inventory directly
Note: Not mutually exclusive

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The amount of $$ you keep

Frictionless

* example publisher

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The amount of $$ you keep

Friction %

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The cost of friction

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Second: Does your size matter?

Ron would say yes. Darren says no; opportunities are limited.

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While we’re on size...

There are standard ad sizes:
IAB (http://www.iab.net/iab_products_and_industry_services/1421/1443/1452) OPA (http://www.online-publishers.org)

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Third: Evolution of the paid [digital] ecosystem
Ad Networks

Sell Side Optimizers/ Platform

Google

Ad Exchanges

DSP Direct Integration
Note: Just a portion of the companies in each sector

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Image from Demdex

Your media is good; w/data better

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Remember, w/o Data: Your Traditional Inventory Is a Commodity

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Fourth: Thoughts on an ad supported business

Unless your advertisement options are non-traditional, a fully adsupported business has a very slim chance of surviving without significant scale. If you have non-traditional units, an internal sales force will sell best. Treat ad agencies as you would venture capitalists. Your presentations should be short, to the point, and slick.

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Fifth: The biggest mistake

Pricing too low to get a deal can actually hurt your chances of receiving an insertion order (IO)
Perception

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Evolution of an advertisement

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Thank you // @dherman76

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