Presentation for MediaParade

1. Digital Advertising’s New Wave

2. Hello, I’m Jonathan Mendez, Founder & CEO of Yieldbot Twitter: @jonathanmendez Company: Yieldbot (www.yieldbot.com) Location: New York City Blog: Optimize & Prophesize (search “jonathan mendez”) 2006-2008 2008-2010+

3. History Lesson # 1 “People don’t read ads. People read what interests them. Sometimes that an ad.” - Howard Gossage

4. History Lesson # 2 “I do not regard advertising as entertainment or an art form but as a medium of information” - David Ogilvy

5. History Lesson # 3 “What information consumes is rather obvious: it consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention ...and a need to allocate that attention efficiently among the overabundance of information sources that might consume it.” Herb Simon: Computers, Communications and the Public Interest. 1971!!!

7. Computer Conferencing

8. Document Retrieval

9. Information Management

11. “This is the first mass marketing medium that isn’t supported by ads.” – Seth Godin 2008

12. But old models die hard

14. Free Search traffic

15. Big Display Networks

16. High CPM

18. Google Changed Everything Search fractures information architecture

20. 16% of Search Terms overlapped with the NY Times Information Architecture

21. 6 months later 60% of top 50 terms the same

22. The largest value creation in web content is not publishing …but the tools for the discovery and distribution of it.

23. Who was focused on allocating attention efficiently among an overabundance of information?

25. Realtime & Historical

26. Targeting

27. User control/segmentation

28. Testing & OptimizationSearch adds value to the content!

29. 2008-2009 Efficiency & Performance “The gap is widening between spending on simple search ads and display ads. Search ad spending is on track to reach $10.4 billion this year, double what will be spent on display ads.” - eMarketer, 2008

30. SEARCH = THE GOLDEN TRIANGLE

31. DISPLAY = THE GOLDEN SHOWER

32. “For all the new media spin it’s just old media” - Advertising Age June 2008

33. A World of Old Metrics

34. … and Lazy Marketers

35. We are not advancing in our use of advertising & marketing technology at the same pace our audience becomes more advanced in their use of the web.

36. Communication technology has always made consumers smarter and amplified their diversity. Marketing is getting more difficult!

37. “80% of Americans spend as much time on the web as TV” “Are Big Ad Agencies so clueless that people should avoid them?”

38. It’s a User Controlled Medium!

40. Aggregators

41. UGC

42. Self-serve classified

43. Hobbyist

45. How do you identify markets & fulfill needs? Make Display more like Search! THIS IS HAPPENING…

47. REACH & FREQ.

48. CPM

49. PERFORMANCE

50. DATA

52. SITE / DEMO

53. PAST BEHAVIOR

54. DIFFERENTIATED

55. AUDIENCE

57. HIGH DEV COST

58. LEAD TIME

59. TARGETED

60. DYNAMIC

62. VERBAL

63. I/O

64. BID & RTB

65. DSP/EXCHANGES

67. SWITCHING $

68. NO OPTIMIZATION

69. LOW MINIMUM

70. NO SWITCH $

72. The Wave is Crashing on Pubs Market Results: More inventory, lower prices Strategic Result: Cookie users to serve impression in lower cost inventory

73. Data & Analytics will save publishers

74. OWN IT! The value created by your audience & content is DATA

75. THANK YOU!