OpenX Web 2.0 Presentation - Online Advertising: Time to Renew the Faith

ONLINE ADVERTISING: TIME TO RENEW THE FAITH Tim Cadogan, CEO OpenX April 1, 2009 Confidential & Proprietary - Not to be shared without written permission of OpenX Technologies, Inc.

If you believe what you read… Confidential & Proprietary - OpenX Technologies, Inc. … .the sky is falling!

But advertising has come through for us in the past! Confidential & Proprietary - OpenX Technologies, Inc. … .and will do so again!! Web 1.0 Web 2.0 Web 3.0? Pre-2000 Classic Display Paid Search Post-2000 Classic Display Paid Search 2003-2004 Classic Display Paid Search AdSense Ad Networks 2005-2008 Classic Display Paid Search AdSense Ad Networks Ad Exchanges Video Mobile Realizing Full Economic Value of 2.0 Audiences

Massive value asymmetry today… Confidential & Proprietary - OpenX Technologies, Inc. Consumer Activity Economic Value $55.1B Globally in 2009 Source : JP Morgan (11/2008) Globally in 2009 All Else All Else Search Search

Why the gap? Confidential & Proprietary - OpenX Technologies, Inc. And, Advertisers struggle to reach their target customers. . . ,[object Object],[object Object],[object Object],Explosion of Supply (70% growth in impressions over last 5 yrs.) (1) Fragmentation of Supply (300%+ growth in websites over last 5 yrs.) (2) Ambiguous or invisible consumer intent Brand Association Concerns Business Model/Value Chain Complexity

Solution #1…People, not just places Confidential & Proprietary - OpenX Technologies, Inc. ,[object Object],[object Object]

Solution #2…Understand people’s interests and intent Confidential & Proprietary - OpenX Technologies, Inc. ,[object Object],[object Object]

Solution #3…Audience Pooling business models Confidential & Proprietary - OpenX Technologies, Inc. Markets/Exchanges Ad Networks BID $5.25 Autos Kite Boarding Home Loan Local Autos Travel Cameras Local Autos Home Loan Bicycles Bicycles Travel Cameras BID $9.50 BID $1.70 BID $0.80

Solution #4…Deliver more relevant ads Confidential & Proprietary - OpenX Technologies, Inc. ,[object Object],[object Object],[object Object]

Solution #5…Better balanced advertising within user experience Confidential & Proprietary - OpenX Technologies, Inc. Search Non-Commercial Search Commercial Search Display (current form) ,[object Object],[object Object],[object Object]

Solution #6…Allow for mass advertiser participation Confidential & Proprietary - OpenX Technologies, Inc. Display Ad Network #2 Display Ad Network #1 Display Ad Network #3 Display Portal #2 Display Portal #1 Display Portal #3 Display Ad Network #4 Display Ad Network #5 Display Ad Network #6

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],In summary…what is needed Confidential & Proprietary - OpenX Technologies, Inc.

Keep the faith!!! Confidential & Proprietary - OpenX Technologies, Inc. "We are continually faced with a series of great opportunities brilliantly disguised as insoluble problems." -- John W. Gardner ,[object Object],[object Object],[object Object],[object Object]

OpenX Web 2.0 Presentation - Online Advertising: Time to Renew the Faith

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OpenX Web 2.0 Presentation - Online Advertising: Time to Renew the Faith