Confidential Proprietary Not to be shared without written
Confidential & Proprietary - Not to be shared without written permission of Open. X Technologies, Inc. ONLINE ADVERTISING – TIME TO RENEW THE FAITH APRIL 1, 2009
IF YOU BELIEVE WHAT YOU READ… …. the sky is falling! Confidential & Proprietary - Open. X Technologies, Inc. 2
BUT ADVERTISING HAS COME THROUGH FOR US IN THE PAST! Web 1. 0 Pre-2000 Post-2000 Classic Display Paid Search Web 2. 0 2003 -2004 2005 -2008 Classic Display Paid Search Ad. Sense Ad Networks Web 3. 0? Realizing Full Economic Value of 2. 0 Audiences Ad Networks Ad Exchanges Video Mobile …. and will do so again!! Confidential & Proprietary - Open. X Technologies, Inc. 3
MASSIVE VALUE ASYMMETRY TODAY… Consumer Activity Economic Value Globally in 2009 $55. 1 B Globally in 2009 Search All Else Search Source: JP Morgan (11/2008) Confidential & Proprietary - Open. X Technologies, Inc. 4
WHY THE GAP? Fragmentation of Supply (300%+ growth in websites over last 5 yrs. )(2) Explosion of Supply (70% growth in impressions over last 5 yrs. )(1) Ambiguous or invisible consumer intent And, Advertisers struggle to reach their target customers. . . Brand Association Concerns Business Model/Value Chain Complexity Source: (1) JP Morgan (11/2008) (2) Net Craft (2/2009) Confidential & Proprietary - Open. X Technologies, Inc. 5
SOLUTION #1…PEOPLE, NOT JUST PLACES ü Audience value increasingly important ü Web-wide audience measurement Confidential & Proprietary - Open. X Technologies, Inc. 6
SOLUTION #2…UNDERSTAND PEOPLE’S INTERESTS AND INTENT ü Basic Data (Demo, Geo, etc. ) ü Rich Data (Behavior, Transaction, etc. ) Confidential & Proprietary - Open. X Technologies, Inc. 7
SOLUTION #3…AUDIENCE POOLING BUSINESS MODELS Kite Boarding Autos Travel C C C Local Autos C Markets/Exchanges C C BID $5. 25 C BID $9. 50 A C C BID $0. 80 A C C Cameras C C BID $1. 70 A 8 Travel C Bicycles C C C Cameras C A Confidential & Proprietary - Open. X Technologies, Inc. C C Home C Loan Home Loan Local Autos C C Ad Networks
SOLUTION #4…DELIVER MORE RELEVANT ADS ü Targeted ü Personalized ü Customizable Confidential & Proprietary - Open. X Technologies, Inc. 9
SOLUTION #5…BETTER BALANCED ADVERTISING WITHIN USER EXPERIENCE Search Display (current form) ü Dynamic page structure Non-Commercial Search ü Dynamic ad/edit ratio ü “Total page” user experience Commercial Search Confidential & Proprietary - Open. X Technologies, Inc. 10
SOLUTION #6…ALLOW FOR MASS ADVERTISER PARTICIPATION Display Ad Network #2 Portal #1 Display Ad Network #1 Search A A A AA A A AA AA A A A AA A A A A AA A A A A A A Confidential & Proprietary - Open. X Technologies, Inc. A A ADisplay. A A #3 A Ad Network A A A Display Ad Network #4 Display A A Display Portal #3 A Portal #2 A A A Display ADisplay. A Ad Network #5 A A A 11 A A A Ad Network #6 A A A
IN SUMMARY…WHAT IS NEEDED ü People, not just places ü Interests & Intent – beyond Context & Action ü “Audience Pooling” Business Models ü Ad Relevance ü Balanced Usability ü Mass-market Advertiser Participation Confidential & Proprietary - Open. X Technologies, Inc. 12
KEEP THE FAITH!!! "We are continually faced with a series of great opportunities brilliantly disguised as insoluble problems. " -- John W. Gardner Therefore… 2010 -2011 will see a Renaissance → Quality → Diversity → Value …in online advertising Confidential & Proprietary - Open. X Technologies, Inc. 13
Thank You For Your Time
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