Vertical Networks V10

Vertical
Networks
Premium Display Advertising
The Rise and Rise of Distributed Media
2008

Glam Media Samir Arora, Nov, 2008 © Glam 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


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

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

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

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

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


Display Ads Market Today: Deciding what to Choose

Start with the Big Rocks First!
Premium
PrimeTime

Mass
Volume


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

Display Ads Market Today: Remnant Ad Networks

Move to Direct Response/ROI Model–Major Consolidation


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


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

Display Ads Market Today: The Decline of Portals

Driven by Google–Reach of Destinations is Declining

Source: Kieth Teare, Fred Wilson

Display Ads Market Today: Power of the Foothills

Vertical Networks Combine the Reach of the Mid & Long Tail

Source: comScore MediaMetrix

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.


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

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.


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


The Story of Glam: Top 300 Brand Advertisers

Glam Today: In 4 Years from launch–Top Brands of the World


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


Digital Targeting: Glam Evolution™ Targeting

Brand Sense: Brand Engagement Accountability: 5 Point Targeting

1
Audience

2
Contextual

3
Behavioral

4
Primetime

5
Placement


Digital PrimeTime: Premium Vertical Display

The Age of Online
Brand Engagement
Digital Primetime Helps Brands Create
Desire and Engagement Online

Display Ads Targeted Vertically


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

Advertising Growth: Fundamentals are Strong

Online Ad Growth will continue to Reach #1 Media over TV

Source: Nielsen , eMarketer, Company Estimates

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


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

Vertical Networks V10

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