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Renewing Faith in Online Advertising for a Bright Future

Explore the evolution and challenges of online advertising from Web 1.0 to the present. Discover solutions to maximize audience value, relevance, and participation. Embrace the Renaissance of 2010-2011 for a prosperous online advertising landscape.

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Renewing Faith in Online Advertising for a Bright Future

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  1. Confidential & Proprietary - Not to be shared without written permission of OpenX Technologies, Inc. Online Advertising – Time to Renew the Faith April 1, 2009

  2. If you believe what you read… ….the sky is falling! Confidential & Proprietary - OpenX Technologies, Inc.

  3. But advertising has come through for us in the past! Web 1.0 Web 2.0 Web 3.0? Pre-2000 Classic Display Paid Search Post-2000 Classic Display Paid Search 2003-2004 Classic Display Paid Search AdSense Ad Networks 2005-2008 Classic Display Paid Search AdSense Ad Networks Ad Exchanges Video Mobile Realizing Full Economic Value of 2.0 Audiences ….and will do so again!! Confidential & Proprietary - OpenX Technologies, Inc.

  4. Massive value asymmetry today… Consumer Activity Economic Value Globally in 2009 $55.1B Globally in 2009 Search All Else Search All Else Source: JP Morgan (11/2008) Confidential & Proprietary - OpenX Technologies, Inc.

  5. Why the gap? Fragmentation of Supply (300%+ growth in websites over last 5 yrs.)(2) Explosion of Supply (70% growth in impressions over last 5 yrs.)(1) Ambiguous or invisible consumer intent And, Advertisers struggle to reach their target customers. . . Brand Association Concerns Business Model/Value Chain Complexity • Source: • JP Morgan (11/2008) • Net Craft (2/2009) Confidential & Proprietary - OpenX Technologies, Inc.

  6. Solution #1…People, not just places • Audience value increasingly important • Web-wide audience measurement Confidential & Proprietary - OpenX Technologies, Inc.

  7. Solution #2…Understand people’s interests and intent • Basic Data (Demo, Geo, etc.) • Rich Data (Behavior, Transaction, etc.) Confidential & Proprietary - OpenX Technologies, Inc.

  8. Solution #3…Audience Pooling business models Local Autos Kite Boarding Local Autos Home Loan Home Loan Cameras Cameras Bicycles Bicycles Travel Autos Travel C C C C C C C C C C C C C C C C C C C C C C C C Markets/Exchanges Ad Networks A A A A BID $0.80 BID $5.25 BID $9.50 BID $1.70 Confidential & Proprietary - OpenX Technologies, Inc.

  9. Solution #4…Deliver more relevant ads • Targeted • Personalized • Customizable Confidential & Proprietary - OpenX Technologies, Inc.

  10. Solution #5…Better balanced advertising within user experience • Dynamic page structure • Dynamic ad/edit ratio • “Total page” user experience Display (current form) Search Non-Commercial Search Commercial Search Confidential & Proprietary - OpenX Technologies, Inc.

  11. Solution #6…Allow for mass advertiser participation Display Ad Network #3 Display Ad Network #6 Display Portal #2 Display Ad Network #1 Display Ad Network #4 Display Ad Network #5 Display Portal #3 Display Ad Network #2 Display Portal #1 Search A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A Confidential & Proprietary - OpenX Technologies, Inc.

  12. In summary…what is needed • People, not just places • Interests & Intent – beyond Context & Action • “Audience Pooling” Business Models • Ad Relevance • Balanced Usability • Mass-market Advertiser Participation Confidential & Proprietary - OpenX Technologies, Inc.

  13. Keep the faith!!! "We are continually faced with a series of great opportunities brilliantly disguised as insoluble problems." -- John W. Gardner • Therefore…2010-2011 will see a Renaissance • Quality • Diversity • Value • …in online advertising Confidential & Proprietary - OpenX Technologies, Inc.

  14. Thank You For Your Time

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