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Matt Carr, AdReady
Twitter: @AdReady, #AdReadyWebinar
REMEMBER WHEN…




      You sent a tape to a TV station by Bike Messenger?
      And then went to lunch.


 © 2011 AdReady, Inc. Confidential                         2
TODAY…




      You analyze ROI, breaking it out by segment and keyword…
      And work through lunch.

 © 2011 AdReady, Inc. Confidential                               3
THE OPPORTUNITY GAP…




            …makes missing lunch worthwhile.
 © 2011 AdReady, Inc. Confidential             4
A BIT ABOUT ME…

 • SVP of Product and Business Development at AdReady

 • 10+ Years in Online Advertising Industry

 • GM of Display Advertising at MSFT

 • Ukulele Champ?

 • mcarr@adready.com




 © 2011 AdReady, Inc. Confidential                      5
WHAT WE’LL COVER…


                                     History of Display industry
      Understand It                  Who does what on the buy-side




                                                   Diversify your marketing portfolio
               Be Display Smart                    Know and control your display levers
                                                   Remember marketing fundamentals



                                                       Ask the right questions
                           Follow Through              Find the right partner
                                                       AdReady’s view




 © 2011 AdReady, Inc. Confidential                                                        6
© 2011 AdReady, Inc. Confidential   7
HERE’S ONE WAY TO LOOK AT IT…




 © 2011 AdReady, Inc. Confidential   8
HERE’S A SIMPLER WAY…




                    Message          Medium   Customer




 © 2011 AdReady, Inc. Confidential                       9
SO…

How did we get from this…


                   Message      Medium   Customer




                                                    …to this?




 © 2011 AdReady, Inc. Confidential                              10
1994 – 2001

Advertisers bought ad space directly from publishers

  Advertisers                                              Publishers

          A                                                    P
          A                                                    P
          A                                                    P

          A                                                    P
          A                                                    P

                                     Challenge: No Scale

 © 2011 AdReady, Inc. Confidential                                      11
2001 – PRESENT

Rise of ‘Ad Networks’ to consolidate unsold inventory

  Advertisers                                                         Publishers

          A                                                               P
          A                                                               P
                                       Ad Networks
          A                                                               P

          A                                                               P
          A                                                               P
                                     Benefit: Scale & ROI

                                     Challenge: Still Not Automated
 © 2011 AdReady, Inc. Confidential                                                 12
2006 – PRESENT

Rise of ‘Ad Exchanges’ to consolidate Networks and improve efficiency

  Advertisers                                                             Publishers
                                                    Exchanges
          A                                                                   P
          A                                            Ad                     P
                                                    Networks

          A                                                                   P

          A                                             Ad
                                                     Networks
                                                                              P
          A                                                                   P
                                     Benefit: True Scale & RTB

                                     Challenge: Still Many Integrations
 © 2011 AdReady, Inc. Confidential                                                     13
NOW THAT’S COMPLICATED.

How do we get from this…




                                     …back to this?


                                       Message   Mechanism   Customer




 © 2011 AdReady, Inc. Confidential                                      14
2009 – PRESENT

  Rise of ‘buy-side tools’ to connect buy-side to ecosystem

  Advertisers                                                              Publishers
                                                         Exchanges
          A                                                                    P
          A                                              Exchanges
                                                                               P
                               Buy-Side
                                Tools
          A                                                                    P

          A                                                  Ad
                                                          Networks
                                                                               P
          A                                                                    P
                                          Benefit: True Automated Buying

                                          Challenge: Still Many Options
 © 2011 AdReady, Inc. Confidential                                                      15
WHAT ARE THESE BUY-SIDE TOOLS?

  Many options, many differences, many categories


                                                        Connect buyer to multiple inventory
                                          DSPs
                                                        sources via single buying tool
          A
                                          Creative      Enable creation of multiple creative
          A                               Optimizers    versions (dynamically or otherwise)
                               Buy-Side
                                Tools
          A
                                          Third Party   Facilitate traditional reserved, cross-
                                          Ad Servers    publisher campaigns
          A
                                          Ad            Buy inventory from pubs/others and
          A                               Networks      sell at higher rates to advertisers




 © 2011 AdReady, Inc. Confidential                                                        16
WHEW!... WHERE DOES THIS LEAVE US?


                                     More Fragmented Display Inventory




                                 Result: Platforms to Access Inventory




                                 Which Leads To: More Tools & Platforms



 © 2011 AdReady, Inc. Confidential                                        17
Ad Ready Webinar Making Sense Of The Display Market
3 CORE PRINCIPLES
OF GREAT DISPLAY CAMPAIGNS



               1.                 Diversify to Amplify



               2.                 Understand your Levers



               3.                 Remember Fundamentals

  © 2011 AdReady, Inc. Confidential                        19
Diversify to Amplify
 1.
                  DIVERSIFYING YOUR MARKETING PORTFOLIO
                  To grow your overall marketing effectiveness,
                  you need to constantly diversify your overall portfolio mix




     Return
     on Ad
     Spend

     and                                   Television
     Reach
                                        Radio

                                Print

                                           Time

© 2011 AdReady, Inc. Confidential                                               20
Diversify to Amplify
 1.
                  DIVERSIFYING YOUR MARKETING PORTFOLIO
                  To grow your overall marketing effectiveness,
                  you need to constantly diversify your overall portfolio mix



                                                        Social… etc.

                                                    Display            1. Multiple Display Marketplaces
     Return
     on Ad
                                                                       2. Fragmented Display Audiences
     Spend                                        Search

     and                                   Television
     Reach
                                        Radio

                                Print

                                           Time

© 2011 AdReady, Inc. Confidential                                                                 21
WHY DIVERSIFY?
MULTIPLE DISPLAY MARKETPLACES


   Advertisers                             1. Buy through                                Publishers
                                             Exchanges      Exchanges
           A                                                                                       P
           A                                                Exchanges
                                                                                                   P
                                Buy-Side
                                  Tool
           A                                                                                       P
                                                               Ad
           A                               2. Buy through   Networks                               P
                                           Ad Networks
           A                                                                                       P
                                                                 3. Buy directly from publishers




  © 2011 AdReady, Inc. Confidential                                                                    22
WHY DIVERSIFY?
FRAGMENTATION IN THE INTERNET




  © 2011 AdReady, Inc. Confidential   23
Understand your Levers
 2.                 VOLUME VS. PERFORMANCE



                    Volume                                  Performance
             (AKA ‘Delivery’)                               (AKA ‘eCPX’)




What to remember buying from marketplaces…
     Your ‘Bid,’ or rate you will pay, is your primary lever
     Ideal bid should balance delivery (volume) vs. performance
     There is an ‘efficient frontier’ beyond which increasing bid is not advisable
     Yet most advertisers over-state their bid to ensure delivery at beginning


© 2011 AdReady, Inc. Confidential                                                    24
EFFICIENT FRONTIER FOR DELIVERY




 © 2011 AdReady, Inc. Confidential   25
TARGETING LEVERS




                                     Increased targeting
                                      leads to increased
                                     performance… but
                                       reduced volume




 © 2011 AdReady, Inc. Confidential                   26
ONE EXAMPLE OF AN INTEGRATED PLAN

                                        Great return, but limited reach




                                        Higher cost, but qualified!




                                        Great feeder to drive traffic
                                     to site for Retargeting




 © 2011 AdReady, Inc. Confidential                               27
A SMART MARKETER + A SMART TOOL

 Smart Optimization = Smart Media Planning + Smart Tools


 Smart Tools collect and process historical data
 to provide the most accurate bid for the requested targets.




  © 2011 AdReady, Inc. Confidential                            28
USE “BIG COMPUTING” TO YOUR ADVANTAGE




      Today’s unique technology convergence


            COMMODITIZED             INTELLIGENT
             COMPUTING               ALGORITHMS
               POWER




 © 2011 AdReady, Inc. Confidential                 29
MAKING DATA WORK FOR YOU

CUSTOMER-FOCUSED APPROACH            BENEFITS
• Technology in background           • Eliminate guess work
• Algorithms lead to                 • Eliminate long trial &
  recommended actions                  error cycles
• All campaigns across all           • Faster on-boarding
  publishers




 © 2011 AdReady, Inc. Confidential                          30
REMEMBER THE FUNDAMENTALS
 3.
 The first thing you
 learned in marketing
 is still true…




© 2011 AdReady, Inc. Confidential            31
KNOW YOUR CUSTOMER




 © 2011 AdReady, Inc. Confidential   32
KNOW YOUR CUSTOMER


                                     INTRODUCING THE OLD SPICE GUY




 © 2011 AdReady, Inc. Confidential
KNOW YOUR CUSTOMER
                                     HUGE RESULTS:
                                     •   Old Spice rose to #1 spot in category in U.S.
                                     •   #1 All-Time Most Viewed Brand Channel on YouTube

         6 MILLION
         HITS IN 1 DAY

                                    4.8 M

                                                             4.4 M
                                                                                     3M




© 2011 AdReady, Inc. Confidential                                                           34
USE THE “WHEEL OF DISPLAY”




 © 2011 AdReady, Inc. Confidential   35
© 2011 AdReady, Inc. Confidential   36
Do I have a deep enough understanding of my customer?
         Are my success metrics well defined?
         Do I have an easy to use tool that lets me access all the
         inventory sources in an easy way?
         Am I spending too much on manually generating creative?
         Am I constantly working on my campaigns to optimize? Or do I
         need some help?

© 2011 AdReady, Inc. Confidential                                    37
Will your technology address all my display needs?
         What kind of support and service do you provide?
         Do your existing customers have similar needs as me?
         How long/hard is it to get up and going?
         How do you get paid?




© 2011 AdReady, Inc. Confidential                               38
You don’t have to be big to be great
         You don’t have to go small to be nimble
         You don’t have to spend a lot of money to make money
         You don’t have to ‘staff-up’ or devote huge dollars to train
         an online ad pro
         You don’t have to figure out online advertising on your own



© 2011 AdReady, Inc. Confidential                                       39
Learn more at
                                    www.adready.com/resources

                                    come talk to us at…



© 2011 AdReady, Inc. Confidential                               40
mcarr@adready.com


                                    marketing@adready.com




© 2011 AdReady, Inc. Confidential                       41

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Ad Ready Webinar Making Sense Of The Display Market

  • 1. Matt Carr, AdReady Twitter: @AdReady, #AdReadyWebinar
  • 2. REMEMBER WHEN… You sent a tape to a TV station by Bike Messenger? And then went to lunch. © 2011 AdReady, Inc. Confidential 2
  • 3. TODAY… You analyze ROI, breaking it out by segment and keyword… And work through lunch. © 2011 AdReady, Inc. Confidential 3
  • 4. THE OPPORTUNITY GAP… …makes missing lunch worthwhile. © 2011 AdReady, Inc. Confidential 4
  • 5. A BIT ABOUT ME… • SVP of Product and Business Development at AdReady • 10+ Years in Online Advertising Industry • GM of Display Advertising at MSFT • Ukulele Champ? • mcarr@adready.com © 2011 AdReady, Inc. Confidential 5
  • 6. WHAT WE’LL COVER… History of Display industry Understand It Who does what on the buy-side Diversify your marketing portfolio Be Display Smart Know and control your display levers Remember marketing fundamentals Ask the right questions Follow Through Find the right partner AdReady’s view © 2011 AdReady, Inc. Confidential 6
  • 7. © 2011 AdReady, Inc. Confidential 7
  • 8. HERE’S ONE WAY TO LOOK AT IT… © 2011 AdReady, Inc. Confidential 8
  • 9. HERE’S A SIMPLER WAY… Message Medium Customer © 2011 AdReady, Inc. Confidential 9
  • 10. SO… How did we get from this… Message Medium Customer …to this? © 2011 AdReady, Inc. Confidential 10
  • 11. 1994 – 2001 Advertisers bought ad space directly from publishers Advertisers Publishers A P A P A P A P A P Challenge: No Scale © 2011 AdReady, Inc. Confidential 11
  • 12. 2001 – PRESENT Rise of ‘Ad Networks’ to consolidate unsold inventory Advertisers Publishers A P A P Ad Networks A P A P A P Benefit: Scale & ROI Challenge: Still Not Automated © 2011 AdReady, Inc. Confidential 12
  • 13. 2006 – PRESENT Rise of ‘Ad Exchanges’ to consolidate Networks and improve efficiency Advertisers Publishers Exchanges A P A Ad P Networks A P A Ad Networks P A P Benefit: True Scale & RTB Challenge: Still Many Integrations © 2011 AdReady, Inc. Confidential 13
  • 14. NOW THAT’S COMPLICATED. How do we get from this… …back to this? Message Mechanism Customer © 2011 AdReady, Inc. Confidential 14
  • 15. 2009 – PRESENT Rise of ‘buy-side tools’ to connect buy-side to ecosystem Advertisers Publishers Exchanges A P A Exchanges P Buy-Side Tools A P A Ad Networks P A P Benefit: True Automated Buying Challenge: Still Many Options © 2011 AdReady, Inc. Confidential 15
  • 16. WHAT ARE THESE BUY-SIDE TOOLS? Many options, many differences, many categories Connect buyer to multiple inventory DSPs sources via single buying tool A Creative Enable creation of multiple creative A Optimizers versions (dynamically or otherwise) Buy-Side Tools A Third Party Facilitate traditional reserved, cross- Ad Servers publisher campaigns A Ad Buy inventory from pubs/others and A Networks sell at higher rates to advertisers © 2011 AdReady, Inc. Confidential 16
  • 17. WHEW!... WHERE DOES THIS LEAVE US? More Fragmented Display Inventory Result: Platforms to Access Inventory Which Leads To: More Tools & Platforms © 2011 AdReady, Inc. Confidential 17
  • 19. 3 CORE PRINCIPLES OF GREAT DISPLAY CAMPAIGNS 1. Diversify to Amplify 2. Understand your Levers 3. Remember Fundamentals © 2011 AdReady, Inc. Confidential 19
  • 20. Diversify to Amplify 1. DIVERSIFYING YOUR MARKETING PORTFOLIO To grow your overall marketing effectiveness, you need to constantly diversify your overall portfolio mix Return on Ad Spend and Television Reach Radio Print Time © 2011 AdReady, Inc. Confidential 20
  • 21. Diversify to Amplify 1. DIVERSIFYING YOUR MARKETING PORTFOLIO To grow your overall marketing effectiveness, you need to constantly diversify your overall portfolio mix Social… etc. Display 1. Multiple Display Marketplaces Return on Ad 2. Fragmented Display Audiences Spend Search and Television Reach Radio Print Time © 2011 AdReady, Inc. Confidential 21
  • 22. WHY DIVERSIFY? MULTIPLE DISPLAY MARKETPLACES Advertisers 1. Buy through Publishers Exchanges Exchanges A P A Exchanges P Buy-Side Tool A P Ad A 2. Buy through Networks P Ad Networks A P 3. Buy directly from publishers © 2011 AdReady, Inc. Confidential 22
  • 23. WHY DIVERSIFY? FRAGMENTATION IN THE INTERNET © 2011 AdReady, Inc. Confidential 23
  • 24. Understand your Levers 2. VOLUME VS. PERFORMANCE Volume Performance (AKA ‘Delivery’) (AKA ‘eCPX’) What to remember buying from marketplaces… Your ‘Bid,’ or rate you will pay, is your primary lever Ideal bid should balance delivery (volume) vs. performance There is an ‘efficient frontier’ beyond which increasing bid is not advisable Yet most advertisers over-state their bid to ensure delivery at beginning © 2011 AdReady, Inc. Confidential 24
  • 25. EFFICIENT FRONTIER FOR DELIVERY © 2011 AdReady, Inc. Confidential 25
  • 26. TARGETING LEVERS Increased targeting leads to increased performance… but reduced volume © 2011 AdReady, Inc. Confidential 26
  • 27. ONE EXAMPLE OF AN INTEGRATED PLAN Great return, but limited reach Higher cost, but qualified! Great feeder to drive traffic to site for Retargeting © 2011 AdReady, Inc. Confidential 27
  • 28. A SMART MARKETER + A SMART TOOL Smart Optimization = Smart Media Planning + Smart Tools Smart Tools collect and process historical data to provide the most accurate bid for the requested targets. © 2011 AdReady, Inc. Confidential 28
  • 29. USE “BIG COMPUTING” TO YOUR ADVANTAGE Today’s unique technology convergence COMMODITIZED INTELLIGENT COMPUTING ALGORITHMS POWER © 2011 AdReady, Inc. Confidential 29
  • 30. MAKING DATA WORK FOR YOU CUSTOMER-FOCUSED APPROACH BENEFITS • Technology in background • Eliminate guess work • Algorithms lead to • Eliminate long trial & recommended actions error cycles • All campaigns across all • Faster on-boarding publishers © 2011 AdReady, Inc. Confidential 30
  • 31. REMEMBER THE FUNDAMENTALS 3. The first thing you learned in marketing is still true… © 2011 AdReady, Inc. Confidential 31
  • 32. KNOW YOUR CUSTOMER © 2011 AdReady, Inc. Confidential 32
  • 33. KNOW YOUR CUSTOMER INTRODUCING THE OLD SPICE GUY © 2011 AdReady, Inc. Confidential
  • 34. KNOW YOUR CUSTOMER HUGE RESULTS: • Old Spice rose to #1 spot in category in U.S. • #1 All-Time Most Viewed Brand Channel on YouTube 6 MILLION HITS IN 1 DAY 4.8 M 4.4 M 3M © 2011 AdReady, Inc. Confidential 34
  • 35. USE THE “WHEEL OF DISPLAY” © 2011 AdReady, Inc. Confidential 35
  • 36. © 2011 AdReady, Inc. Confidential 36
  • 37. Do I have a deep enough understanding of my customer? Are my success metrics well defined? Do I have an easy to use tool that lets me access all the inventory sources in an easy way? Am I spending too much on manually generating creative? Am I constantly working on my campaigns to optimize? Or do I need some help? © 2011 AdReady, Inc. Confidential 37
  • 38. Will your technology address all my display needs? What kind of support and service do you provide? Do your existing customers have similar needs as me? How long/hard is it to get up and going? How do you get paid? © 2011 AdReady, Inc. Confidential 38
  • 39. You don’t have to be big to be great You don’t have to go small to be nimble You don’t have to spend a lot of money to make money You don’t have to ‘staff-up’ or devote huge dollars to train an online ad pro You don’t have to figure out online advertising on your own © 2011 AdReady, Inc. Confidential 39
  • 40. Learn more at www.adready.com/resources come talk to us at… © 2011 AdReady, Inc. Confidential 40
  • 41. mcarr@adready.com marketing@adready.com © 2011 AdReady, Inc. Confidential 41