Digital Advertising’s New Wave

Hello, I’m Jonathan Mendez, Founder & CEO of Yieldbot

2006-2008 2008-2010+

Twitter: @jonathanmendez Company: Yieldbot (www.yieldbot.com)

Location: New York City Blog: Optimize & Prophesize (search “jonathan
mendez”)
History Lesson # 1

“People don’t read ads. People read

what interests them. Sometimes
that an ad.”

- Howard Gossage
History Lesson # 2

“I do not regard advertising

as entertainment or an art
form but as a medium of
information”

- David Ogilvy
 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!!!
Tim Berners-Lee

“Information Management”

•Hypertext
•Computer Conferencing
•Document Retrieval
•Information Management
•Project Control
Services are not an ad
supported biz model!
“This is the first mass marketing
medium that isn’t supported by ads.”
– Seth Godin 2008
But old
models
die
hard
2001-2007: Easy Money

•Media $$$
•Free Search traffic
•Big Display Networks
•High CPM
•Page Views
Google Changed Everything
 Google Changed Everything

Search
fractures
information
architecture
16% of Search Terms overlapped with the NY Times Information Architecture
6 months later 60% of top 50 terms the same
 The largest value creation in web content
is not publishing

…but the tools for the discovery and distribution of it.

Who was focused on
allocating attention
efficiently among an
overabundance of
information?
 •Discovery & Recovery of Info
•Realtime & Historical
•Targeting
•User control/segmentation
•Testing & Optimization

Search adds value to the content!

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
SEARCH = THE GOLDEN TRIANGLE
DISPLAY = THE GOLDEN SHOWER
“For all the new media spin it’s just old
media”
- Advertising Age June 2008
A World of Old Metrics
… and Lazy Marketers
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.
Communication technology has always made
consumers smarter and amplified their diversity.

Marketing is getting more difficult!

“80% of Americans
spend as much time on
the web as TV”

“Are Big Ad Agencies so

clueless that people
should avoid them?”
It’s a User Controlled Medium!
 Web 2.0 was the rise of new publishers

Self publishing
Aggregators
UGC
Self-serve
classified
Hobbyist
Curators
“Branding is why media buyers don't care about
context. But Branding only works when people can't
talk to each other, and compare notes on the "images"
they are being sold. The web made sure that era is
over. Branding, and so "impressions", don't matter any
more.

Marketing is about identifying markets and fulfilling

needs. Marketing thrives when people can compare
notes, and Marketing craves context, because needs in
a market are specific.”

-Jim Novo (comment on my blog)

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

Display OS V 1.0 Display “Search” OS

•AWARENESS •PERFORMANCE

•REACH & FREQ. •DATA

•CPM •CPx
 2. SEGMENTATION

Display OS V 1.0 Display “Search” OS

•BULK •DIFFERENTIATED

•SITE / DEMO •AUDIENCE

•PAST BEHAVIOR •CURRENT BEHAVIOR

 3. CREATIVE

Display OS V 1.0 Display “Search” OS

•NO VERSIONING •TARGETED

•HIGH DEV COST •DYNAMIC

•LEAD TIME •SELF SERVE

 4. BUYING

Display OS V 1.0 Display “Search” OS

•RATE CARD •BID & RTB

•VERBAL •DSP/EXCHANGES

•I/O •AUTOMATED
5. CAMPAIGN MANAGMENT

Display OS V 1.0 Display “Search” OS

•HIGH MINIMUM •LOW MINIMUM

•SWITCHING $ •NO SWITCH $

•NO OPTIMIZATION •OPTIMIZATION

Display’s New Market Wave

Advertiser Publisher
Publisher

Network Publisher

Advertiser Publisher

Advertiser Exchange Publisher

Advertiser
Network
DSP Yield Opti Publisher
Network

Advertiser
The Wave is Crashing on Pubs

Market Results: More

inventory, lower prices
Strategic Result: Cookie
users to serve impression in
lower cost inventory
 Data & Analytics
will save publishers
 OWN IT!
The value created by
your audience &
content is
DATA
THANK YOU!