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2011 TechStars NYC Advertising Presentation

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Darren Herman
Darren Herman

This document provides an overview of monetizing mobile apps through advertising. It discusses: 1) Two main ways to generate revenue: joining an ad network or selling directly to advertisers. Ad networks provide simplicity but take a larger cut, while direct sales keep more money but require more effort. 2) Factors that affect revenue, including ad sizes, the growing digital ad ecosystem, and how data enhances ad targeting and value. 3) Key considerations for an ad-supported business model, such as the challenges of surviving without significant scale, benefits of direct sales over ad agencies, and how pricing too low can hurt perceptions.

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1 Clams. 5 Thoughts, 15 際際滷s 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 Were planning on Were 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 were 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

More Related Content

2011 TechStars NYC Advertising Presentation

  • 1. 1 Clams. 5 Thoughts, 15 際際滷s Darren Herman / @dherman76 Chief Digital Media Officer, The Media Kitchen / kbs+p President & Managing Partner, kbs+p Ventures Founder, Varick Media Management
  • 2. 2 The most frequent sentence I hear Were planning on Were monetizing our apps thru advertising.
  • 3. 3 The Infamous Ecosystem Luma Partners 2010 www.lumapartners.com
  • 4. 4 Two Ways To Generate Revenue 101010101111010100010 101010101111010100010 Largest amount of ad dollars. Small but increasing.
  • 5. 5 First: Where do I start? Join an ad network Simplicity Amount $$ you keep Hire a rep firm Sell inventory directly Note: Not mutually exclusive
  • 6. 6 The amount of $$ you keep Advertiser Publisher Frictionless * example publisher
  • 7. 7 The amount of $$ you keep Advertiser Publisher Friction %
  • 8. 8 The cost of friction
  • 9. 9 Second: Does your size matter? Ron would say yes. Darren says mostly no; opportunities are limited which creates artificial short-term demand.
  • 10. 10 While were 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. 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. 12 Image from Demdex Your media is good; w/data better
  • 13. 13 Remember, w/o Data: Your Traditional Inventory Is a Commodity
  • 14. 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. 15 Fifth: The biggest mistake Pricing too low to get a deal can actually hurt your chances of receiving an insertion order (IO) Perception
  • 17. 17 Thank you // @dherman76

Editor's Notes

  1. Clams. Dinero. Benjamins. Its all about the money as Nucky Thompson likes to say.
  2. Not necessarily a bad thing, but plenty of web (inclusive of mobile) companies are looking to generate ad revenue without a full strategy.
  3. There are a lot of marketing and advertising technology companies who would like to help you drive advertising dollars. Its only getting worse.
  4. Two ways to generate revenue from advertising: the old-school way but relationship driven (human led) and the newer friction-less programmatic way (via APIs)
  5. Direct relationships are always best because it removes friction. Generate relationship + keep majority of dollars.
  6. Anytime there is a middleman, the middleman is compensated in some capacity. Also, the middleman might remove the relationship between the advertiser + publisher.
  7. The cost of friction is FOCUS. Friction allows you to concentrate on other things which might be right for an early stage company who needs to ship product.