1 Clams. 5 Thoughts, 15
Slides Darren Herman / @dherman76 Chief Digital Media Officer, The Media Kitchen / kbs+p President & Managing Partner, kbs+p Ventures Founder, Varick Media Management

2 The most frequent sentence
I hear We’re planning on We’re monetizing our apps thru advertising.

3 The Infamous Ecosystem Luma
Partners 2010 www.lumapartners.com

4 Two Ways To Generate
Revenue 101010101111010100010 101010101111010100010 Largest amount of ad dollars. Small but increasing.

5 First: Where do I
start? Join an ad network Simplicity Amount $$ you keep Hire a rep firm Sell inventory directly Note: Not mutually exclusive

6 The amount of $$
you keep Advertiser Publisher Frictionless * example publisher

7 The amount of $$
you keep Advertiser Publisher Friction %

8
The cost of friction

9 Second: Does your size
matter? Ron would say yes. Darren says mostly no; opportunities are limited which creates artificial short-term demand.

10 While we’re on size...
There are standard ad sizes: IAB ( http://www.iab.net/iab_products_and_industry_services/1421/1443/1452) OPA (http://www.online-publishers.org)

11 Third: Evolution of the
paid [digital] ecosystem Ad Networks Google Sell Side Optimizers/ Platform Ad Exchanges DSP Direct Integration Note: Just a portion of the companies in each sector

12 Image from Demdex Your
media is good; w/data better

13 Remember, w/o Data: Your
Traditional Inventory Is a Commodity

14 Fourth: Thoughts on an
ad supported business Unless your advertisement options are non-traditional, a fully ad-supported business has a very slim chance of surviving without significant scale. If you have non-traditional units, an internal sales force will sell best. Treat ad agencies as you would venture capitalists. Your presentations should be short, to the point, and slick.

15 Fifth: The biggest mistake
Pricing too low to get a deal can actually hurt your chances of receiving an insertion order (IO) Perception

16
Evolution of an
advertisement

17
Thank you // @dherman76