Advertising: Options & Trends

Team Six

Olivia The Fall of Traditional MediaStephanie The Ad NetworksMichael Types of Online Advertising

Web AnalyticsDaniel MonetizationKevin Emerging Markets

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.

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.

Source: 2008 survey, Pew Research Center for the People and

Press

• Overall, 37% of public get news online.

• 35% of internet users went online at least three days a week.

Key News Audiences Blend Online and Traditional Sources

New Media

The Evolution of Online Advertisement

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

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.

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.

The Smaller Ad Networks

www.openx.comAn 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.

Types of Online Advertising

Banner Ads – Most popular, Many Shapes and Sizes

Text Ads – Google Adsense, links, etcPop Up Ads – Annoys web surfers, drives traffic

awayPop Under Ads – Opens underneath the browserContextual Ads – Within content and targeted Site Takeovers – MySpace PromotionsApplication space – Facebook, Myspace, Mobile Applications – iPhone & Blackberry

Banner Ads Text Ads

Common Forms

Site Takeovers

Application Ads

Mobile Applications Ads

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

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.

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

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

MonetizationMonetization 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.

Methods of Monetization

• Sponsorship• Cross Advertisement

• Paid Content and Advertorials

• Syndication of Content

• Affiliations• Links

Less Aggressive Methods

Donations Loyalty Responsibility

Conversion Indirect Revenue Generate Interest from

Activities that Eventually Result in Sales

Emerging Markets

Globalization – China and IndiaMobile Space

Nano Technology

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

Mobile Space: The Next Big Platform

New cell phone technology

E-CommerceInternet on-the-go

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.

Other Technology

Who knows what the future will bring…

QUESTIONS?

Closing Thoughts