2011 TechStars NYC Advertising Presentation

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  • 1. 1Clams.5 Thoughts, 15 SlidesDarren Herman / @dherman76Chief Digital Media Officer, The Media Kitchen / kbs+pPresident & Managing Partner, kbs+p VenturesFounder, Varick Media Management
  • 2. 2The most frequent sentence I hear Were planning on Were monetizing our apps thru advertising.
  • 3. 3The Infamous Ecosystem Luma Partners 2010 www.lumapartners.com
  • 4. 4Two Ways To Generate Revenue 101010101111010100010 101010101111010100010Largest amount of ad dollars. Small but increasing.
  • 5. 5First: Where do I start? Join an ad networkSimplicity Amount $$ you keep Hire a rep firm Sell inventory directlyNote: Not mutually exclusive
  • 6. 6The amount of $$ you keep Advertiser Publisher Frictionless * example publisher
  • 7. 7The amount of $$ you keep Advertiser Publisher Friction %
  • 8. 8The cost of friction
  • 9. 9Second: Does your sizematter? Ron would say yes. Darren says mostly no; opportunities are limited which creates artificial short-term demand.
  • 10. 10While were 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)
  • 11. 11 Third: Evolution of the paid [digital] ecosystem Ad Networks Google Sell Side Optimizers/ Platform Ad Exchanges DSP Direct IntegrationNote: Just a portion of the companies in each sector
  • 12. 12 Image from DemdexYour media is good; w/data better
  • 13. 13Remember, w/o Data: Your Traditional Inventory Is a Commodity
  • 14. 14Fourth: Thoughts on an ad supportedbusiness Unless your advertisement options are non-traditional, a fully ad-supported 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.
  • 15. 15Fifth: The biggest mistake Pricing too low to get a deal can actually hurt your chances of receiving an insertion order (IO) Perception
  • 16. 16Evolution of anadvertisement
  • 17. 17Thank you // @dherman76