SyracuseUniIntroAdvertising v2

Intro Advertising, Syracuse University
March 24, 2009
Presented by: Mike Cassidy
Agenda
Title
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2
Introduction
A Brief History of Online
Advertising
Online Advertising Today
The Players
Ad Networks
Where does the market go
from here?
Career suggestions
Introduction
Title
• Oswego Graduate - 1998
• Communications Major / Business Minor
• First job - small ad sales company called Venture Direct –
3 month stint
• In December 1998 joined a NY internet company called
MiningCo.com – 70 person company
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Went public in 1999
Grew to 400+ people
Changed name to About.com
Eventually became VP Midwest Sales
Left 2001 to start my own company
Introduction
Title
• Started Intercept Interactive – April 2001
– Started as online media buying service/agency for dotcom’s
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Introduction
Title
• Launched Undertone Networks - 2002
– Took a position in media as opposed to buying on behalf of a
client
– Would buy media then resell to advertisers
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Introduction
Title
• Today Undertone Networks
– 100+ people
– HQ in NYC – offices in other markets
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U.S.
TitleAdvertising Revenue
Advertising Revenue by Media
($ millions)
$70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 7
1998
2008
U.S.
TitleAdvertising Revenue
Advertising Revenue by Media
($ millions)
1998
$2,500 $2,000 $1,500 $1,000 $500 $0 8
1998
U.S.
TitleAdvertising Revenue, 2008
Advertising Revenue by Media
($ millions)
$70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 9
Title
$850m
Video
$5.1B
$7.4B
Display
$26.7B
$13.4B
Search
Source: eMarketer Nov 2008, IAB/BAIN 2008
Classified,
Lead
Generation, Email
Search
Title
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Search
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• (talking pt – question – who uses a search engine other
than google?)
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Search
Title
Paid Search
Results
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Paid Search
Results
Search
Title
Natural Search
Results
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Display
Title
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Display
Title
• Ten fold increase in number of registered websites
between 2000-2008, a total of 160 million websites
– 1.5 blogs created every second from ‘03 – ’07
– The latest number is an astounding 112 million blogs, and
according to Technorati data, “there are over 175,000 new blogs
every day.
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Display
Title
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Display
Title
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Display
Title
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The
TitlePlayers
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Sellers
Buyers
Publishers
Agencies
eCommerce
Sites
Direct Marketers
Search
Small Business
Ad Networks
Ad Networks
Ad
Networks
Title
Advertising network
From Wikipedia, the free encyclopedia
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. Increasingly Ad
networks are companies that pay software developers as well as
web sites money for allowing their ads to be shown when people
use their software or visit their sites.
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Ad
Networks
Title
• An Ad Network acts as an agency for the publisher
• Ad Networks do not own the content; they are responsible
only for selling ad inventory on behalf of the publishers.
• The key benefit of Ad Networks is the ability to aggregate
supply and therefore lower buying cost.
• Ad Networks have been proven beneficial for:
– Small publisher
– New mediums/ad formats
– Selling inventory the publisher cannot sell
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Where
Title does the market go from here?
• Issues
– Value of display vs. search
– Government regulation
– Data: everyone wants to own
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A Brief History of Time
•Ad Network
Boom
• Ad Exchanges
•Dot Com Bust
1995
•Pre Salesforce
2000
2001
•Boom in # of
sites, search
and
performancebased pricing
2003
•Data and
Accountability
2008
2009
•Data
Ownership and
Usage
The Future of Ad Networks
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Lines will continue to blur
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Flavors of networks
Holding companies
Publisher networks
Portals/exchanges
The number of networks may not
change
– But fewer will be relevant to
most
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Data will be a driving issue
– Ownership v. usage will create
unique space for network
services
•Rich media and standard display advertising account for 27% of total online spend
•“Intermediaries” (like Ad Networks) control the bulk of display inventory (90%) and generate ~ 30% of publisher revenue
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Your
Titlecareer
• Career opportunities
Internships are critical
Really go after what you want
Think long term – learn like crazy
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
– Get involved in local organizations – free for college students
– Reach out to alumni
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Publications
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Media Post
iMedia
AdAge
Adweek
Brandweek
Mediaweek
ClickZ
Adotas
AdRants
eMarketer
Organizations
Title
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212
DMA
OMMA
Ad Tech
SFIMA
CIMA
Thank you!