1. Quality | Control | Results
DIGITAL DOWNLOAD:
DSPs and the Ad Network Shakeout
Presented by:
John Yearout, Sales Director, Undertone Networks
Proprietary and confidential proposal ©2009 Undertone Networks

2. 24 Categories
+
192 Companies
OVERWHELMING
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3. Timeline
Ad Network Expansion,
Networks / Rep firms
Ad Exchanges
launch as few websites
M&A Frenzy
have sales staff
1995 2006/2007
2002
Dot Com Bust – many
networks go out of business
1999/2000
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4. 2007: Why So Many Networks?
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5. Boom Resulted in Some Questionable Practices
• Help with campaign performance
• Reduce cost and drive profitability
• Relatively easy to execute / difficult to track
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6. Fraud Gained Traction In Display Advertising
“Pay-Per-Click Web Advertisers Combat Costly Fraud.”
“Half Of Ad Impressions, 95 Percent Of Clicks
Fraudulent.”
“Evolution of Click Fraud: Massive Chinese Operation
DormRing1 Uncovered. Racks up $3M in Fraudulent
Clicks in Two Weeks.”
“Software code running behind the scenes opened
more than 40 Web pages, each including three ads …
which were invisible to visitors.”
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7. Organized Click Fraud (Dormring1)
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8. Invisible iFrames, Invisible Ads
• “Software code running
behind the scenes opened
more than 40 Web pages,
each including three …which
were invisible to visitors.”
• iFrames can be manipulated
to serve invisible ads
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9. The Daisy Chain
Network Network Network
Advertiser A B C
• Mpire executed 11 buys on nine networks
and one exchange
– Actual fulfillment came from 45 downstream
networks and over 100,000 sites as a result of
daisy-chaining
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10. Irrelevant International Impressions
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11. Timeline DSPs and the Ad
Network “Shakeout”
2010
Ad Network Expansion,
Networks / Rep firms
Ad Exchanges
launch as few websites
M&A Frenzy
have sales staff
1995 2006/2007
2002
Everyone wants to be a
Dot Com Bust – many
network – publishers,
networks go out of business
holding companies, etc.
1999/2000 2008/2009
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12. 2010
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13. Market Perspective: 2010 Forecast
DSPs U.S. Display
3% Advertising:
$8 billion
DSPs:
$200 million
U.S. Display
Advertising
Source: GCA Savvian
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14. Market Perspective: 2014 Forecast
U.S. Display
Advertising:
DSPs $16 billion
25%
DSPs:
$4 billion
U.S. Display
Advertising
Source: GCA Savvian
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15. Media Buying
Platforms DSPs Ad Exchanges Ad Networks
Let’s Figure This All Out
Who do
you use?
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16. Media Buying
Platforms DSPs Ad Exchanges Ad Networks
DSPs: Demand Side Platforms
Technology platforms that enable buy-side
entities to buy in an automated fashion across
multiple distribution sources.
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17. Media Buying
Platforms DSPs Ad Exchanges Ad Networks
MTDs: Media Trading Desks
In-house agency trading desks that leverage
DSPs and exchanges to buy media
on behalf of agency clients.
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18. Know the Advantages, Know the Trade-offs
DSPs
Access to Limited Quality
Scale Control
RTB/ VS Limited Rich
Low Cost and Complex Media
Control Data Usage New Skillset/
and Costs Headcount
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19. Know the Advantages, Know the Trade-offs
“Our buyers are very different.
They are not trying to buy the
[home page] takeovers from the
publishers. They actually want to
get mass reach on very
commoditized banners.”
Nat Turner, CEO
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20. Inventory Acquisition Model is Key Selection Factor
“Those ad networks that simply
Ad Exchanges
aggregate insertion orders and
fill them through either daisy
chaining or exchange based
Other Networks
buying will have a limited run.”
Portals Brendan Moorcroft, CEO
Direct from Publishers
Combination of the Above
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21. The Media Plan of Today
AGENCY
Endemic Publishers Networks Portals
100,000+
Publishers
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22. The Media Plan of the Future
AGENCY
Endemic Publishers DSPs Networks Portals
100,000+
Publishers
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23. Five Things Networks Must Deliver to Remain Relevant
Unique Inventory Unique Targeting Products
Insights/Research Service
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24. Thank you for attending!
For more information, please
contact:
John Yearout
Director of Sales
(415) 391-3646 ext. 110
jyearout@undertone.com
www.undertone.com
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