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Vertical Networks V10
- 1. Vertical
Networks
Premium Display Advertising
The Rise and Rise of Distributed Media
2008
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 2. 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
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 3. Advertising Growth: This has happened Before
TV Ad Growth has 4 Big Volume Components
Glam Media Source: Nielsen Media Research Custom Survey 2008 Samir Arora, Nov, 2008 © Glam Media
- 4. Online Advertising Today: Time Spent
Internet is now #2 after TV, #1 for Young Adults & Teens
Time Spent Time Spent vs Ad Spend
38% 38%
Largest Upside Largest Downside
Young Adult
& Teens
Glam Media Source: After TV: Nielsen Media Research Custom Survey 2008 Samir Arora, Nov, 2008 © Glam Media
- 5. Online Advertising Today: Time & Influence Online
The Media Paradox of the Internet
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
Glam Media Source: After TV: Nielsen Media Research Custom Survey 2008 Samir Arora, Nov, 2008 © Glam Media
- 6. Online Advertising Today: Internet Advertising
Display is now 44% of total spend online
Display
44%
Glam Media Source: IAB, PWC, Display Details Company Estimate Samir Arora, Nov, 2008 © Glam Media
- 7. Display Ads Market Today: Total Confusion
Glam Media
MySpace
Vertical Networks
Social Networks Social
Network
Targeted Brash Network
WebMD
Bebo Active Athlete Network
Slide Facebook
Flixster
Martha Circle Food Network
iVillage Network
Over 300 Networks Federated Media
Gorilla
Google Display
Nation
AdSense
Casale
Collective Portals: Yahoo
Tribal Fusion
Specific Media Blue Lithium
ValueClick
Yahoo Network
MSN
Ad.com AOL
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 8. Display Ads Market Today: Deciding what to Choose
Start with the Big Rocks First!
Premium
PrimeTime
Mass
Volume
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 9. Display Ads Market Today: Display Ad Categories
Use the 80-20 Rule: Focus on Only 4 Big Display Choices
Social Networks Vertical Networks
User Gen Content Premium Content
Mass-Utility Niche-Targeted
Targeted Ad Rep
Social Vertical
Networks Networks
Direct Optimized
Run of
Network
Premium
Ad Networks
Portals
Response Targeted
Remnant Portals
Ad Networks Premium Content
Mass-Horizontal Large-Reach
Glam Media $0.10-$1 CPM $1-$4 CPM CPM $5-$8 CPM $8-100 CPM Samir Arora, Nov, 2008 © Glam Media
- 10. Display Ads Market Today: Remnant Ad Networks
Move to Direct Response/ROI Model–Major Consolidation
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 11. Display Ads Market Today: Remnant Network Issues
The supply and demand curve drop creating Pricing Pressure
Up Market
Down Market
Ad Networks Pricing
Pressure with New
Supply, Lower Demand,
and Lower CPM’s
Glam Media $0.10-$1 CPM $1-$4 CPM CPM $5-$8 CPM $8-100 CPM Samir Arora, Nov, 2008 © Glam Media
- 12. 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
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 13. Display Ads Market Today: The Decline of Portals
Driven by Google–Reach of Destinations is Declining
Source: Kieth Teare, Fred Wilson
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 14. Display Ads Market Today: Power of the Foothills
Vertical Networks Combine the Reach of the Mid & Long Tail
Source: comScore MediaMetrix
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 15. 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
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 16. Display Ads Market Today: Portals + Ad Networks
Remnant Ad Networks extend Portals with Non-Premium Reach
Platform-A Yahoo! Network
93% 84%
Tacoda Blue Lithium
Ad.com
Yahoo!
AMN
In Addition, Light Users Have more Page Views and Have a better chance of being reached.
Source: comScore CEO Presentation
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 17. 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
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 18. The Story of Glam: Verticals by Audience & Channel
Virtuous Cycle of Expansion
Audience Focus Channel Focus
Style Living Health Family Entertainment
Women 18-49 Fashion Home Health Mom’s Celebrities
Glam Network
Beauty Food Wellness Parenting Movies/TV
Luxe Travel Eco Kids Music
African American
Men 18-49
Brash Network
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 19. The Story of Glam: Top 300 Brand Advertisers
Glam Today: In 4 Years from launch–Top Brands of the World
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 20. The Story of Glam: Vertical Network Platform
Audience
Women 18-49
Groups: Spenders, Mom’s, Teens, Multi-Cultural
Brand
Publishers Advertisers
Glam Publisher Network Display Brand
Vertical Network Publishers Engagement
Glam Platform
Content Creators
Video
Agencies
Media Companies
E!, Lifetime, Sony, TV Guide Media, Data, Targeting
Media Platforms Insight
YouTube, Briightcove
Indie Producers
CelebTV, VideoJug, WatchMojo Developers
Glam Applications
Applications
Video Search, Filtering,
Curate, Ratings, Comments
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 21. Digital Targeting: Glam Evolution™ Targeting
Brand Sense: Brand Engagement Accountability: 5 Point Targeting
1
Audience
2
Contextual
3
Behavioral
4
Primetime
5
Placement
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 22. Digital PrimeTime: Premium Vertical Display
The Age of Online
Brand Engagement
Digital Primetime Helps Brands Create
Desire and Engagement Online
Display Ads Targeted Vertically
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 23. 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
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 24. Advertising Growth: Fundamentals are Strong
Online Ad Growth will continue to Reach #1 Media over TV
Source: Nielsen , eMarketer, Company Estimates
Glam Media Samir Arora, Nov, 2008 © Glam Media
- 25. Display Ads Market Today: Display Ad Categories
Use the 80-20 Rule: Focus on Only 4 Big Display Choices
Vertical Premium
Social Networks DR Targeted
80% Focus on Performance & Social Networks Vertical Networks 80% Focus on Targeting
Self-Serve Ads in Utility Mode User Gen Content Premium Content Premium-Primetime
Mass-Utility Niche-Targeted
Select Targeted Opportunities Display Platforms & Tech
Like Music for MySpace Vs Pure Ad Reps Firms
Targeted Ad Rep
Social Vertical
Networks Networks
Run of
Optimized
Network
Ad Networks
Portals
Portal Destinations
Remnant Ad Networks DR Targeted
80% Focus on Value: 80% Focus on Premium
Remnant Portals Engagement
Measured Price-Performance
Ad Networks Premium Content
Test Exchanges, Optimzed Mass-Horizontal Large-Reach Sharp Decline of Portals
Networks, and Mass-Targeting and Top Destinations
Glam Media $0.10-$1 CPM $1-$4 CPM CPM $5-$8 CPM $8-100 CPM Samir Arora, Nov, 2008 © Glam Media
- 26. 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
Glam Media Samir Arora, Nov, 2008 © Glam Media