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

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

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

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

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

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

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

Online Ad Revenue $ million Quarter Source: PwC/IAB Internet Advertising Revenue Report (

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

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

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

Online Video 14

Online Video 15

Classifieds Classifieds, Lead Generation & 16

Classifieds 17 Classified Listings

Classifieds Lead Generation Classifieds, Lead Generation & 18

Lead Generation 19 Lead Generation Form

Classifieds Lead Generation Classifieds, Lead Generation & 20

21 Advertising

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

Search 23 Paid Search Results

24 Search Natural Search Results

25 Display

26 Ten fold increase in number of registered websites between 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

Top Display Advertisers 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

Top Display Advertisers 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

Display 29

30 Display

31 Display

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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.

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

Ad Network Timeline Dot.com Bust

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Contextual 37

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

Behavioral 39

Remarketing 40

Remarketing 41

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

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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

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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/ if I can ever be of assistance – (212) x125 or 46 Your Career

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 Industry Organizations

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