Vertical Networks Premium Display Advertising The Rise and Rise of Distributed Media 2008
Samir Arora, Nov, 2008 © Glam MediaGlam Media
Vertical
Networks
Premium Display Advertising
The Rise and Rise of Distributed Media
2008
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
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
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
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
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
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
Samir Arora, Nov, 2008 © Glam MediaGlam Media
Display Ads Market Today: Deciding what to Choose
Start with the Big Rocks First!
PremiumPrimeTime
MassVolume
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
Samir Arora, Nov, 2008 © Glam MediaGlam Media
Display Ads Market Today: Remnant Ad Networks
Move to Direct Response/ROI Model–Major Consolidation
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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