1. Introductory Advertising Syracuse University March 24, 2009 Presented by: Mike Cassidy

2. Agenda 2 ► Introduction ► Relevant Statistics ► The Online Ad Market ► Ad Networks ► Issues of the Day ► Internships / Career Advice ► Q&A

3. Oswego Graduate, 1998 – Communications Major / Business Minor First job at small ad sales company called Venture Direct; 3 month stint In December 1998, joined a NY internet company called MiningCo.com – 70 person company – Went public in 1999 – Grew to 400+ people – Changed name to About.com – I became VP Midwest Sales in 2000 – Left in 2001 to start my own company 3 Introduction

4. Started Intercept Interactive – April 2001 – Began as an online media buying service/agency for dotcom’s 4 Introduction

5. Launched Undertone Networks in 2002 – Took a ‘position’ (i.e. inventory) in online media as opposed to buying on behalf of a client – Would resell this inventory to advertisers and agencies 5 Introduction

6. Today @ Undertone Networks – 100+ people – HQ in NYC – offices in six other cities – Grew the business 90% in 2008 – Less certainty in 2009 6 Introduction

7. 7

8. 8 U.S. Advertising Revenue Advertising Revenue by Media ($ million) Source: Prepared for Advertising Age by Robert J. Coen, McCann-Erickson Worldwide

9. Online Ad Revenue 1998-2008 9 $ million Quarter Source: PwC/IAB Internet Advertising Revenue Report (www.iab.net)www.iab.net

10. 10 U.S. Advertising Revenue Advertising Revenue by Media ($ million) Sources: Prepared for Advertising Age by Robert J. Coen, McCann-Erickson Worldwide, eMarketer 2008

11. US Media Consumption 11 Source: Interactive Advertising Bureau August 2007, eMarketer 2008

12. 12

13. Source: eMarketer Nov 2008, IAB/BAIN 2008 Online Advertising $850m Video $5.1B Other $13.4B Search $7.4B Display $26.7B 13

14. Online Video 14

15. Online Video 15

16. Classifieds Classifieds, Lead Generation & E-mail 16

17. Classifieds 17 Classified Listings

18. Classifieds Lead Generation Classifieds, Lead Generation & E-mail 18

19. Lead Generation 19 Lead Generation Form

20. Classifieds Lead Generation E-mail Classifieds, Lead Generation & E-mail 20

21. E-mail 21 E-mail Advertising

22. These four search engines control 96% of the market Google is dominant with a 66% share Search 22

23. Search 23 Paid Search Results

24. 24 Search Natural Search Results

25. 25 Display

26. 26 Ten fold increase in number of registered websites between 2000-2008 to 160 million * There is an estimated 112 million blogs ** 1.5 blogs created every second from ‘03 – ’07** 1.2 million websites support themselves by selling advertising * Top 10 sites control 52% of the market * * IAB 2009 / ** Technorati 2008

27. Top Display Advertisers - 2007 27 RankCompany 1NexTag, Inc. 2Experian Group Limited 3Countrywide Financial Corp. 4Netflix, Inc. 5InterActiveCorp 6Reunion.com L.L.C. 7Low Rate Source 8AT&T Corp. 9Verizon Communications, Inc. 10Monster Worldwide, Inc. Source: TNS

28. Top Display Advertisers - 2008 28 RankCompany 1Proctor & Gamble Co 2Verizon Communications 3General Motors Corp. 4AT&T Inc. 5Time Warner Inc. 6Johnson & Johnson 7News Corp 8General Electric Co 9Walt Disney Co. 10Kraft Foods Inc. Source: TNS

29. Display 29

30. 30 Display

31. 31 Display

32. 32

33. 33 Ad Networks An advertising network or ad network is a company that connects web sites that want to host advertisements with advertisers who want to run advertisements.

34. Ad Networks do not own or control the content; they are responsible only for selling ad inventory on behalf of the publishers The key benefit of Ad Networks is scale and efficiency Ad Networks control the bulk of display inventory (90%) and generate ~ 30% of a publishers revenue Networks cover all categories and segments; mobile, video, display, local, social networking, content focus, etc There are an estimated 400+ ad networks in the market and growing 34 Ad Networks

35. Ad Network Timeline 35 1995 1998 19992001 2000 2005 20022004 1996 2006 20072003 1997 2008 Dot.com Bust

36. 36

37. Contextual 37

38. Behavioral 38 Who is Mike? Small Business Owner Likes to Travel Owns a Boat Income Assumptions Car Preferences Other Interests…

39. Behavioral 39

40. Remarketing 40

41. Remarketing 41

42. Optimization 42 Optimization Criteria May Include: – Websites – Creative – Messaging – Time of Day – Frequency

43. 43

44. Value of display vs. search – How do you attribute credit? Government regulation – In February the FTC issued a report outlining industry self- regulation Data – Who owns it / who can use it? Blurring of lines – Agencies and publishers becoming ad networks – Portals offering agency services – Clients frustrated with agencies 44 Issues of the Day

45. 45

46. Internships are critical Get involved in the industry today – Begin reading the trades – Join local organizations – free for students Reach out to alumni – start networking now Digital is a great place to be – I would highly recommend over traditional media Feel free to call/email if I can ever be of assistance – (212) 685-8000 x125 or cassidy@undertone.comcassidy@undertone.com 46 Your Career

47. IAB.net ClickZ Adotas Alley Insider eMarketer Cynposis Digital Tech Crunch Business Week 47 Industry Publications Media Post iMedia AdAge Adweek Paid Content Media Bistro NY Times WSJ

48. 48 Industry Organizations

49. Introductory Advertising Syracuse University March 24, 2009 Presented by: Mike Cassidy