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Clams.5 Thoughts, 15 Slides
Darren Herman / @dherman76
Chief Digital Media Officer, The Media Kitchen / kbs+pPresident & Managing Partner, kbs+p VenturesFounder, Varick Media Management
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The most frequent sentence I hear
WeWe’’re planning re planning on monetizing on monetizing our apps thru our apps thru advertising.advertising.
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The Infamous Ecosystem
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Luma Partners 2010 www.lumapartners.com
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Two Ways To Generate Revenue
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Small but increasing.Largest amount of ad dollars.
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First: Where do I start?
Join an ad network
Hire a rep firm
Sell inventory directly
Amount $$ you keep
Note: Not mutually exclusive
Simplicity
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The amount of $$ you keep
Frictionless
* example publisher
Advertiser Publisher
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The amount of $$ you keep
Friction%
Advertiser Publisher
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The cost of friction
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Second: Does your size matter?
Ron would say yes.
Darren says mostly no; opportunities are limited which creates artificial short-term demand.
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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 NetworksAd Networks
GoogleGoogle
Ad ExchangesAd Exchanges
DSP Direct IntegrationDSP Direct Integration
Sell Side Sell Side Optimizers/Optimizers/
PlatformPlatform
Note: Just a portion of the companies in each sector
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Your media is good; w/data better
Image from Demdex
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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 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.
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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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