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Introductory Advertising Syracuse University. March 24, 2009. Presented by: Mike Cassidy. Agenda. Introduction Relevant Statistics The Online Ad Market Ad Networks Issues of the Day Internships / Career Advice Q&A. Introduction. Oswego Graduate, 1998
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Introductory AdvertisingSyracuse University March 24, 2009 Presented by: Mike Cassidy
Agenda • Introduction • Relevant Statistics • The Online Ad Market • Ad Networks • Issues of the Day • Internships / Career Advice • Q&A
Introduction • Oswego Graduate, 1998 • Communications Major / Business Minor • First job at small ad sales company called Venture Direct; 3 month stint • In December 1998, joined a NY internet company called MiningCo.com – 70 person company • Went public in 1999 • Grew to 400+ people • Changed name to About.com • I became VP Midwest Sales in 2000 • Left in 2001 to start my own company
Introduction • Started Intercept Interactive – April 2001 • Began as an online media buying service/agency for dotcom’s
Introduction Named to Entrepreneur Magazine's Hot 100 listing of America's fastest-growing entrepreneurial companies Recognized on Inc. 500 ranking of fastest-growing private companies • Launched Undertone Networks in 2002 • Took a ‘position’ (i.e. inventory) in online media as opposed to buying on behalf of a client • Would resell this inventory to advertisers and agencies
Introduction Ranked #9 in“Best Places to Work” Ranking by Crain’s New York Business • Today @ Undertone Networks • 100+ people • HQ in NYC – offices in six other cities • Grew the business 90% in 2008 • Less certainty in 2009
U.S. Advertising Revenue Advertising Revenue by Media ($ million) Source: Prepared for Advertising Age by Robert J. Coen, McCann-Erickson Worldwide
Online Ad Revenue 1998-2008 $ million Quarter Source: PwC/IAB Internet Advertising Revenue Report (www.iab.net)
U.S. Advertising Revenue Advertising Revenue by Media ($ million) Sources:Prepared for Advertising Age by Robert J. Coen, McCann-Erickson Worldwide , eMarketer 2008
US Media Consumption Source: Interactive Advertising Bureau August 2007, eMarketer 2008
Online Advertising $26.7B Source: eMarketer Nov 2008, IAB/BAIN 2008
Classifieds, Lead Generation & E-mail Classifieds
Classifieds Classified Listings
Classifieds, Lead Generation & E-mail Classifieds Lead Generation
Lead Generation Lead Generation Form
Classifieds, Lead Generation & E-mail Classifieds Lead Generation E-mail
E-mail E-mail Advertising
Search These four search engines control 96% of the market Google is dominant with a 66% share
Search Paid Search Results Paid Search Results Paid Search Results Paid Search Results
Search Natural Search Results
Display * IAB 2009 / ** Technorati 2008 Ten fold increase in number of registered websites between 2000-2008 to 160 million* There is an estimated 112 million blogs** 1.5 blogs created every second from ‘03 – ’07** 1.2 million websites support themselves by selling advertising* Top 10 sites control 52% of the market*
Top Display Advertisers - 2007 Source: TNS
Top Display Advertisers - 2008 Source: TNS
Ad Networks An advertising network or ad network is a company that connects web sites that want to host advertisements with advertisers who want to run advertisements.
Ad Networks Ad Networks do not own or control the content; they are responsible only for selling ad inventory on behalf of the publishers The key benefit of Ad Networks is scale and efficiency Ad Networks control the bulk of display inventory (90%) and generate ~ 30% of a publishers revenue Networks cover all categories and segments; mobile, video, display, local, social networking, content focus, etc There are an estimated 400+ ad networks in the market and growing
1999 2001 2003 2005 2007 1995 2000 2002 2004 2006 1998 1996 Ad Network Timeline Dot.com Bust 1997 2008
Behavioral • Who is Mike? • Small Business Owner • Likes to Travel • Owns a Boat • Income Assumptions • Car Preferences • Other Interests…
Optimization Optimization Criteria May Include: • Websites • Creative • Messaging • Time of Day • Frequency
Issues of the Day • Value of display vs. search • How do you attribute credit? • Government regulation • In February the FTC issued a report outlining industry self-regulation • Data • Who owns it / who can use it? • Blurring of lines • Agencies and publishers becoming ad networks • Portals offering agency services • Clients frustrated with agencies
Your Career • Internships are critical • Get involved in the industry today • Begin reading the trades • Join local organizations – free for students • Reach out to alumni – start networking now • Digital is a great place to be – I would highly recommend over traditional media • Feel free to call/email if I can ever be of assistance • (212) 685-8000 x125 or cassidy@undertone.com
Industry Publications • Media Post • iMedia • AdAge • Adweek • Paid Content • Media Bistro • NY Times • WSJ IAB.net ClickZ Adotas Alley Insider eMarketer Cynposis Digital Tech Crunch Business Week
Introductory AdvertisingSyracuse University March 24, 2009 Presented by: Mike Cassidy