04 December 2007 WEBSITE MONETIZATION Presented to: I.C. Stars.

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Presentation transcript:

04 December 2007 WEBSITE MONETIZATION Presented to: I.C. Stars

ONLINE ADVERTISING REVENUE GROWTH 2

REVENUES BY FORMAT/CATEGORY 3

ONLINE ADVERTISING BY PRICING MODEL 4

REVENUE BY MAJOR INDUSTRY CATEGORY 5

CURRENCY OF THE WEB Impression: a measurement of responses from a Web server to a page request from the user browser, which is filtered from robotic activity and error codes, and is recorded at a point as close as possible to opportunity to see the page by the user. Ad Impression: 1) an ad which is served to a user’s browser. Ads can be requested by the user’s browser (referred to as pulled ads) or they can be pushed, such as ed ads Cost-Per-Thousand (CPM): media term describing the cost of 1,000 impressions. For example, a Web site that charges $1,500 per ad and reports 100,000 visits has a CPM of $15 ($1,500 divided by 100). Inventory: The number of ads available for sale on a website Cost-per-Whatever (CPW): Cost-per-order, cost-per-transaction, cost-per-acquisition, cost-per-lead, cost-per-click, etc. 6

AUDIENCE MEASUREMENT 3 accredited third-party audience measurement institutions – ComScore – Nielsen//Netratings – I/Pro Other audience measurement systems – Compete.com – Quantcast.com Page Views vs. “Hits” – Page Display: when a page is successfully displayed on the user's computer screen 7

AD-UNITS 8

CALCULATING INVENTORY Traffic = Unique Users * avg. page-views per user Available Impressions = Traffic * ads per page Sell-through: How many impressions do you think you can sell in a given month 9

SAMPLE REVENUE FORECAST 10

AD-UNIT OPPORTUNITIES Standard IAB Ad-units Rich Media Broadband Media Pre-roll Newsletters Site or page skinning Custom build-out programs Slotting fees RSS Ads Advertorials 11

AD SERVING VS. WEB SERVING 12

AD REVENUE OPPORTUNITIES: AD NETWORKS 13

AD REVENUE OPPORTUNITIES: AD NETWORKS 14

AD REVENUE OPPORTUNITIES: SEARCH ENGINES 15 Google technology places your ad on the most relevant content pages

AD REVENUE OPPORTUNITIES: SEARCH ENGINES 16