Advertising: Options & Trends

1. Advertising: Options & Trends Team Six OliviaThe Fall of Traditional Media Stephanie The Ad Networks Michael Types of Online Advertising Web Analytics Daniel Monetization KevinEmerging Markets

2. The Fall of Traditional Media Publishers • Like many of the nation's biggest newspapers, the Boston Globe is threatening to fire workers and cut costs as advertising sales and circulation numbers decline. • Newspapers that flourished for over a hundred years are now going out of business. In March 2009, the 146-year-old Seattle Post-Intelligencer put out its last print edition and Denver's Rocky Mountain News shut down its presses after close to 150 years of putting out a daily paper. • Economy, Online Trends Threaten Newspaper Industry • As more Americans turn to online news and the recession eats away at advertising dollars, some newspapers are going out of business and others are struggling to stay afloat.

3. Newspapers Adapting to the Web Newspapers are having trouble adapting to the Internet Although newspapers like the New York Times have successful Web sites with free content, they have trouble collecting enough revenue through online advertising. • What about a new way to read news? • The Kindle can display books and newspapers on its large screen.  • Amazon has made a deal with the Washington Post and the New York Times to give people discounts on the device if they sign up for a Kindle subscription to one of their newspapers.

4. Key News Audiences Blend Online and Traditional Sources • Overall, 37% of public get news online. • 35% of internet users went online at least three days a week. Source: 2008 survey, Pew Research Center for the People and Press

5. New Media The Evolution of Online Advertisement

6. The Ad Networks • The Middle Man – Bridge between advertisers & publishers. • Advertisers – Can be any company that needs to advertise online • Publishers – Typically online portals such as yahoo.com but can be any website • The Middle Men - Google, Yahoo!, ValueClick and LinkShare • The Major Networks • Google Double Click and Google AdSense • Yahoo! Publisher Network • Link Aggregators • ValueClick • LinkShare • Commission Junction • The Long Tail – • Many, many, Smaller ad networks. • OpenX Ad Platform – Create your own ad network

7. The Major Ad Networks • Acquired by Google for $3 billion • Offers technology product (DART) & website services to advertisers and publishers • Geared towards business • For blog & small website owners. • Offers ad serving application. • Advertisements are administered by Google. • Generate revenue on per-click or per-impression basis. • Publisher Network – A closed network. • Provides ad serving cost per-click. • Provides various tools & services to publishers/business related.

8. The Link Aggregators • They operate in four segments: • Media • Affiliate Marketing • Comparison Shopping • Technology • Provides a programmable pay-per-action, average earning per 100 clicks, marketing network & patented technology. • Provides advertising channels of affiliate marketing and managed search.

9. The Smaller Ad Networks www.openx.com An Open Source company • Currently the world’s leading independent ad server. • Provides free software to create your own ad network. • Also provides a free hosted service up to 100 million ad impressions per month. • Through OpenX: • Publishers can maximize revenue for their ad space. • Advertisers can access targeted, premium ad inventory. • Technology providers can integrate with an independent monetization platform.

10. Types of Online Advertising • Banner Ads – Most popular, Many Shapes and Sizes • Text Ads – Google Adsense, links, etc • Pop Up Ads – Annoys web surfers, drives traffic away • Pop Under Ads – Opens underneath the browser • Contextual Ads – Within content and targeted • Site Takeovers – MySpace Promotions • Application space – Facebook, Myspace, • Mobile Applications – iPhone & Blackberry

11. Common Forms Banner Ads Text Ads

12. Site Takeovers

13. Application Ads

14. Mobile Applications Ads

15. Web Analytics • Analytics - measurement, collection, analysis and reporting of internet data for purposes of understanding and optimizing web usage. • Gives web publishers and advertisers a criteria to settle on price • Users – The number of users a site or network has. • Measured by unique ip addresses or site membership statistics • Generally lots of users can mean lots of revenue for web publishers • Generally advertisers love lots of users but are more concerned with page views and impressions • Can be misleading

16. More Analytics… • Pageviews – Pages rendered by a website • Generally lots of users means lots of pageviews • A common quantifiable measurement • Can help guage how “sticky” a site is • Impressions - The number of times an advertisement was rendered in a page view • One page view may contain as many impressions as the web publisher wants • b) Impressions are another quantifiable meausurement and are directly tied to monetization • c) Impressions are typically counted by the mil (1000). For every 1000 impressions a site recieves the CPM (Cost per Mill) • d) CPM's vary widely from pennies to dollars depending on the type of site.

17. The Analytics Companies • Measures pageviews and impression and site trends • Google Analytics – • Provides code to enter into any website to track its pageviews • Omniture - Just purchased by Adobe for $1.8 billion last month • No Coincidence largest anlytics companies are largest ad networks

18. SEO - Search Engine Optimization • SEO - Search Engine Optimization • 1.) Optimizing web sites for higher ranks in search engines to generate higher page views • 2.) Niche Markets - Small community oriented web sites • a) Targeted Audiences - (Music Sites, Gaming Sites, Poker Sites, etc...) • b) Can command large CPM,CPC,CPA’s if the analytics are right

19. Monetization • Monetization process begins with evaluating possibilities. • Players involved are: • advertisers, • publishers, • and the middlemen • Possible payouts in micropayments • CPM (Cost per Mil, 1000) • CPC (Cost per Click) • CPA (Cost per Action) • Signups, Surveys, etc… • Or fixed pricing.

20. Methods of Monetization • Sponsorship • Cross Advertisement • Paid Content and Advertorials • Syndication of Content • Affiliations • Links

21. Less Aggressive Methods • Donations • Loyalty • Responsibility • Conversion • Indirect Revenue • Generate Interest from Activities that Eventually Result in Sales

22. Emerging Markets • Globalization – China and India • Mobile Space • Nano Technology

23. China and India • Critical mass of online users in the next 10 years • Monetizing these markets will be tricky but will have huge rewards • New millionaires and billionaires will be made in this space

24. New cell phone technology E-Commerce Internet on-the-go Mobile Space: The Next Big Platform

25. Nanotechnology • Dictionary: Any fabrication technology in which objects are designed and built by the specification and placement of individual atoms or molecules or where at least one dimension is on a scale of nanometers. • In their ongoing quest to improve existing products by creating smaller components and better performance materials, all at a lower cost, the number of companies that will manufacture "nanoproducts" will grow very fast and soon make up the majority of all companies across many industries.

26. Who knows what the future will bring… Other Technology

27. Closing Thoughts Questions?