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Page 1: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Vertical

Networks

Premium Display Advertising

The Rise and Rise of Distributed Media

2008

Page 2: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Vertical Networks: Display Advertising Today

1 Online Advertising Today

2 Display Ad Market Today

3 The Story of Glam

4 Digital Targeting

5 Bringing Digital Primetime to Display

Page 3: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Advertising Growth: This has happened Before

TV Ad Growth has 4 Big Volume Components

Source: Nielsen Media Research Custom Survey 2008

Page 4: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Online Advertising Today: Time Spent

Internet is now #2 after TV, #1 for Young Adults & Teens

Source: After TV: Nielsen Media Research Custom Survey 2008

Time Spent Time Spent vs Ad Spend

Largest Upside Largest Downside

38% 38%

Young Adult

& Teens

Page 5: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Online Advertising Today: Time & Influence Online

The Media Paradox of the Internet

Source: After TV: Nielsen Media Research Custom Survey 2008

Least Authoritative Most Influential

This is the reason most Newspapers, Magazines, and Radio are failing online. Like TV, the Internet is a less Authoritative Medium.

Rather than go to than large “hits” media brands–Users go to mid–long tail sites with less authority, but are more influenced

Page 6: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Online Advertising Today: Internet Advertising

Display is now 44% of total spend online

Display

44%

Source: IAB, PWC, Display Details Company Estimate

Page 7: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Ad.com

Portals: Yahoo

Display Ads Market Today: Total Confusion

WebMDNetwork

Glam MediaVertical Networks

GorillaNation

MySpaceSocial Networks Social

NetworkTargeted

Martha CircleActive Athlete

iVillage NetworkFederated Media

Food Network

MSNAOL

Facebook Bebo

Yahoo Network

Specific Media

ValueClick

Blue LithiumTribal Fusion

Casale Collective

Google Display AdSense

Over 300 Networks

Brash Network

Slide Flixster

Page 8: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Display Ads Market Today: Deciding what to Choose

Start with the Big Rocks First!

PremiumPrimeTime

MassVolume

Page 9: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Display Ads Market Today: Display Ad Categories

Use the 80-20 Rule: Focus on Only 4 Big Display Choices

$0.10-$1 CPM $8-100 CPM$5-$8 CPM$1-$4 CPM

Remnant

Ad Networks

Mass-Horizontal

CPM

Optimized

Ad Networks

Vertical Networks

Premium Content

Niche-Targeted

Ad Rep

Vertical

Networks

Portals

Premium Content

Large-Reach

Run of

Network

Portals

Social Networks

User Gen Content

Mass-Utility

Targeted

Social

Networks

Premium

Targeted

Direct

Response

Page 10: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Display Ads Market Today: Remnant Ad Networks

Move to Direct Response/ROI Model–Major Consolidation

Page 11: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Display Ads Market Today: Remnant Network Issues

The supply and demand curve drop creating Pricing Pressure

$0.10-$1 CPM $8-100 CPM$5-$8 CPM$1-$4 CPM CPM

Down Market

Up Market

Ad Networks PricingPressure with New

Supply, Lower Demand,

and Lower CPM’s

Page 12: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Display Ads Market Today: The Reach of Portals

With 74% Reach, Yahoo only has 7% of Internet Usage!

% Reach of Internet Audience Today (comScore)

% Usage of Web (PageViews)

Source: comScore CEO Presentation

Page 13: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Display Ads Market Today: The Decline of Portals

Driven by Google–Reach of Destinations is Declining

Source: Kieth Teare, Fred Wilson

Page 14: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Display Ads Market Today: Power of the Foothills

Vertical Networks Combine the Reach of the Mid & Long Tail

Source: comScore MediaMetrix

Page 15: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Display Ads Market Today: Targeting Power

List of Sites when Vertically Grouped have Reach Targeting Power

This is the issue that is most miss-understood about Vertical Networks. If you only look at the publisher site list, you miss the change.

In Verticals like Fashion, there are no major large sites online, but when you target by Fashion as a Vertical, it has very large reach.

Source: comScore MediaMetrix

Page 16: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Display Ads Market Today: Portals + Ad Networks

Remnant Ad Networks extend Portals with Non-Premium Reach

In Addition, Light Users Have more Page Views and Have a better chance of being reached.

Platform-A

AMN

Ad.com

Tacoda

Yahoo! Network

Yahoo!

Blue Lithium

93% 84%

Source: comScore CEO Presentation

Page 17: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Display Ads Market Today: Portals Vs Verticals

Vertical Networks help solve the decline of Usage of Portals

In total reach, Glam for Women is 3 times larger than iVillage, in addition Glam Channels are leading in Premium

Reach over Single Sites, Destinations and even Portals like Yahoo in Categories like Fashion, Health, Family, and Living.

Source: comScore MediaMetrix

Page 18: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

The Story of Glam: Verticals by Audience & Channel

Virtuous Cycle of Expansion

Audience Focus

Women 18-49

Glam Network

Channel Focus

Style

Fashion

Beauty

Luxe

Health

Wellness

Eco

HealthLiving

Home

Food

Travel

Celebrities

Movies/TV

Music

Entertainment

African American

Men 18-49

Brash Network

Mom’s

Parenting

Kids

Family

Page 19: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

The Story of Glam: Top 300 Brand Advertisers

Glam Today: In 4 Years from launch–Top Brands of the World

Page 20: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

The Story of Glam: Vertical Network Platform

DevelopersGlam Applications

ApplicationsVideo Search, Filtering,

Curate, Ratings, Comments

Publishers

Glam Publisher Network

Vertical Network Publishers

Content Creators

Video

Media Companies

E!, Lifetime, Sony, TV Guide

Media Platforms YouTube, Briightcove

Indie Producers CelebTV, VideoJug, WatchMojo

Glam Platform

Brand

Advertisers

Display Brand

Engagement

AudienceWomen 18-49

Groups: Spenders, Mom’s, Teens, Multi-Cultural

Agencies

Media, Data, Targeting

Insight

Page 21: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Digital Targeting: Glam Evolution™ Targeting

Brand Sense: Brand Engagement Accountability: 5 Point Targeting

1Audience

2Contextual

3Behavioral

4Primetime

5Placement

Page 22: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Digital PrimeTime: Premium Vertical Display

The Age of Online

Brand Engagement

Digital Primetime Helps Brands Create

Desire and Engagement Online

Display Ads Targeted Vertically

Page 23: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Online Advertising: Strategies to Succeed

1. Accountability– Full Reports and Results

2. Search/Text– Move to all Direct Response/Clicks

3. Branding Online– Premium Primetime Verticals

4. Large Destinations– Portals Declining

5. Remnant/Social Networks– Move to Direct Response

6. Integrated– Advertorials, eMail, User Immersion

7. Interactive– Test Video, Widgets, Applications

Source: eMarketer, Company

Page 24: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Advertising Growth: Fundamentals are Strong

Online Ad Growth will continue to Reach #1 Media over TV

Source: Nielsen , eMarketer, Company Estimates

Page 25: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

Display Ads Market Today: Display Ad Categories

Use the 80-20 Rule: Focus on Only 4 Big Display Choices

$0.10-$1 CPM $8-100 CPM$5-$8 CPM$1-$4 CPM

Remnant

Ad Networks

Mass-Horizontal

CPM

Optimized

Ad Networks

Vertical Networks

Premium Content

Niche-Targeted

Ad Rep

Vertical

Networks

Portals

Premium Content

Large-Reach

Run of

Network

Portals

Social Networks

User Gen Content

Mass-Utility

Targeted

Social

Networks

Portal Destinations

Targeted

80% Focus on Premium

Engagement

Sharp Decline of Portals

and Top Destinations

Remnant Ad Networks DR

80% Focus on Value:

Measured Price-Performance

Test Exchanges, Optimzed

Networks, and Mass-Targeting

Vertical Premium

Targeted

80% Focus on Targeting

Premium-Primetime

Display Platforms & Tech

Vs Pure Ad Reps Firms

Social Networks DR

80% Focus on Performance &

Self-Serve Ads in Utility Mode

Select Targeted Opportunities

Like Music for MySpace

Page 26: Vertical Networks V10

Samir Arora, Nov, 2008 © Glam MediaGlam Media

The Drivers of Vertical Media: Top 10 Big Changes

1. People are going to 100’s of web sites: De-Portalization

2. The Rise of the Mid and Long-Tail

3. Massive increase of Professional Vertical Content

4. Increase and draw of Reality User Generated Content

5. Move to Non-Authoritative Media

6. Applications as Services, Cloud Network & Widgets

7. Change in Online use of Media Time to Your Time & Place

8. The Impact of Online Influencer Marketing

9. Search & Links driving Content–Article use over Home Page

10. Audience, Context, Behavior, Placement & Primetime Targeting


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