Soho Digital Background

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Soho Digital Background

• Founded by three partners with traditional SEO
  backgrounds
• Migrated SEO client portfolio to WhenU. Discuss
  WhenU exit, need to remain network agnostic.
  Congrats on the new marriage
• Migrated same client portfolio to 6 additional
  adware networks

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What is adware?

• Show of hands, how many of you buy adware right
  now?
• Software platform which delivers contextually
  targeted ads to a distributed user base
• Users opt in to receive adware in exchange for
  receiving a wide variety of free software
  (screensavers, toolbars, P2P file sharing
  applications, etc)
• Advertisers buy media in various cost unit
  formats and the ads are targeted to user behavior
  at any given moment (foot locker and cheap
  tickets examples)

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Soho Digitals role in adware

• Over 150 advertisers rely on Soho Digital to
  consolidate the planning, buying, and management
  of adware media from 10 unique sources
• Award-winning creative and client service teams
  deliver value in many ways to media buyers
• Media buyers gain efficiency and market place
  intelligence when buying adware media from Soho
  Digital

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Current Clients
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Dating Clients (past and present)
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Adware Cost Structure

• CPM, CPC, CPV (explanation of each)
• Competing advertisers run on adware networks in
  rotation
• Network inventory delivery is Darwinian
  priority is established on an effective CPM basis

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CPV the emerging winner

• A view a single impression where the
  advertiser's landing page is served in a separate
  browser window as opposed to a clickable
  graphical image
• Adware networks determine effective CPM by
  taking CPV cost and multiplying by 1000. (e.g.
  .02 CPV 20 ECPM)
• Media buyers take heed! Avoid the temptation to
  avoid CPV buying because the effective CPM is so
  much higher than what you are used to seeing as
  CPM prices for traditional clickable graphical
  image inventory. All impressions are not created
  equally.

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Benefits of CPV

• Consider CPV prices for Dating inventory
  commonly found in the marketplace. .015 to .04
  are standard depending on level of targeting.
  This imputes to an effective CPM range of 15 -
  40 that you pay to a network when buying CPV.
• Consider that a cost-per-click (CPC) prices for
  Dating inventory are .35 - .40. If you are
  lucky and have a pretty girl on your creative you
  just might get a 2 click through rate. That
  imputes to a 7 - 8 effective CPM.
• In either case market prices are established
  organically by supply and demand and are a
  function of the effective CPA pain tolerance of
  advertisers who buy the media.
• The bottom line is this On an
  impression-per-impression basis, CPV is a
  significantly more efficient use of media as
  evidenced by the relatively high effective CPM
  that is paid in CPV campaigns verses CPC
  campaigns while the advertiser is bound in either
  case to the same effective CPA targets.

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Case Study

• Dating Adveriser X. Previously buying 0.40 CPC
  on the network BestOffers. Getting a 2 CTR,
  therefore netting an 8.00 CPM to network, while
  hitting a 5.00 effective CPA, which was beyond
  max pain tolerance.
• Recommendation was made to convert the campaign
  to CPV, specifically paying 0.015 CPV or a
  15CPM to the network, nearly double than the CPC
  buy. Effective CPA dropped to 2.70!
• Volume on the campaign also increased
  dramatically because of heightened prioritization
  among other dating advertisers in the rotation.

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The point of all this

• Remember, DARWINIAN inventory allocation. Think
  Overture. The more you pay per unit, the more
  units you get overall.
• On an adware network there can be as many as 10
  dating advertisers clamoring for inventory. In
  order to be near the top of the totem pole in
  terms of delivery, you need any edge you can get.
• As a CPV buyer, you will kick the CPC buyers to
  the curb on an ECPM basis. Its likely that your
  only competition will be the other guys smart
  enough to be buying CPV.
• Go out to the adware networks, look for
  arbitrage opportunities. Take advantage of
  marketplace inefficiency. Opportunity lies in
  networks that allow for CPV buyers to compete
  against CPC buyers in the rotation. Look for new
  emerging adware platforms with wild west style
  pricing policies.

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Questions

• Thank you all very much!