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The Ad Supported Ecosystem
5 Thoughts, 15 Slides
Darren Herman / @dherman76
Chief Digital Media Officer, The Media Kitchen / kbs+p
Founder, Varick Media Management
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The Infamous Ecosystem
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Luma Partners 2010 www.lumapartners.com

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

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

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The amount of $$ you keep
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Frictionless
* example publisher

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The amount of $$ you keep
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Friction
%

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The cost of friction
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Second: Does your size matter?
Ron would say yes.
Darren says no; opportunities are limited.
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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)
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Third: Evolution of the paid [digital]
ecosystem
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Ad Networks
Google
Ad Exchanges
DSP Direct Integration
Sell Side
Optimizers/
Platform
Note: Just a portion of the companies in each sector

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

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Remember, w/o Data: Your Traditional
Inventory Is a Commodity
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Fourth: Thoughts on an ad supported
business
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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.

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Fifth: The biggest mistake
Pricing too low to get a deal can actually hurt your chances of receiving
an insertion order (IO)
Perception
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Evolution of an advertisement
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Thank you // @dherman76
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