1. 1
Clams.
5 Thoughts, 15 Slides
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
We’re planning on
We’re
monetizing our
apps thru
advertising.
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 we’re 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
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
Clams. Dinero. Benjamins. It’s all about the money as Nucky Thompson likes to say.
Not necessarily a bad thing, but plenty of web (inclusive of mobile) companies are looking to generate ad revenue without a full strategy.
There are a lot of marketing and advertising technology companies who would like to help you drive advertising dollars. It’s only getting worse.
Two ways to generate revenue from advertising: the old-school way but relationship driven (human led) and the newer friction-less programmatic way (via API’s)
Direct relationships are always best because it removes friction. Generate relationship + keep majority of dollars.
Anytime there is a middleman, the middleman is compensated in some capacity. Also, the middleman might remove the relationship between the advertiser + publisher.
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.