Advertising Network for Premium Publisher ! "Good news ! "European Online Advertising continued to grow everywhere in 2009 (€14,7 billion and increase 4,5%). Thursday, September 30 4w Marketplace™ s.r.l.- All rights reserved - INMA/OPA Europe Conference 2010 2 ! "and contextual advertising? ! "Contextual advertising is part of search (€ 6,7 billion) and growth 10,8% Thursday, September 30 4w Marketplace™ s.r.l.- All rights reserved - INMA/OPA Europe Conference 2010 3 ! "Introducing 4w Marketplace™ ! " 4w Marketplace™, a Digital Magics Group company operating in the performance online adv market, has developed and manages the open platform known as 4w Net™ ! " 4w Net™ is an open platform on which editors allow agencies and clients publishing their advertisement in order to bring about qualified traffic and get lead generation. ! " The unique feature of 4w Net™ is to offer a privileged access to qualified audiences to advertiser investors. The three main features are: ! " Advanced qualified targeting technology, a planning pattern that enables investments in both Channel & Contextual Planning ! " Costs based on users’ actions on a performance basis (ex: per click, contact and sale) ! " Sophisticated algorithms that enable optimization and contextualization of text links, especially developed to maximize the user’s actions within web pages containing dynamic news ! " Thanks to the exclusive partnership with PPN - PREMIUM PUBLISHER NETWORK, established in 2009, with RCS group and Gruppo l’Espresso, 4w Net™ manages the biggest Italian qualified traffic in Contextual Advertising. Thursday, September 30 4w Marketplace™ s.r.l.- All rights reserved - INMA/OPA Europe Conference 2010 4 ! "PPN Properties QUALIFIED TRAFFIC Thursday, September 30 4w Marketplace™ s.r.l.- All rights reserved - INMA/OPA Europe Conference 2010 5 ! "Ad placements 10/4/10 4w Marketplace s.r.l., Strictly confidential - All rights reserved - No reproduction or diffusion without written authorisation 6 ! "What PPN did in the last 18 months Audiweb Power by Nielsen Thursday, September 30 4w Marketplace™ s.r.l.- All rights reserved - INMA/OPA Europe Conference 2010 7 ! "What’s next ! " Create a European online adverAsing Network steered by premium publishers that work together (consorAum) in order to protect their asset and maximize the profit of their inventory ! " Economic advantages ! " Exclusive offer (more earning) ! " Monetization of international traffic (15-20%) ! " Optimization of costs ! " Strategic advantages ! " Maximize the experience (intellectual capital) and protect assets ! " Protect local market from international competition ! " Access to international budget ! " Greater political influence Thursday, September 30 4w Marketplace™ s.r.l.- All rights reserved - INMA/OPA Europe Conference 2010 8 ! "Competition (Porter’s Five Forces) InternaAonal Ad-network Google SoUware House MicrosoU Video streaming plaRorm Fox Network Small and local Ad Network Threat of New Entry Technology Partner Publisher Data Supplier Supplier Compeve Buyer Power Power Rivalry Media Agency Demand Side PlaRorm (DSP) TradiAonal media, in parAcular TV and Print Threat of Yield management plaRorm Subs&tuon Open Marketplace plaRorm Thursday, September 30 4w Marketplace™ s.r.l.- All rights reserved - INMA/OPA Europe Conference 2010 9 ! "Targeting: the main opportunity PPN Coverage(.000) PPN Affinity Adults 110 Adults 11,137 Low Edu 33 Low Edu 2,215 Medium Edu 169 Medium Edu 6,465 239 High Edu 3,275 High Edu 86 Female 5,128 Female 114 Male 6,826 Male 50 Age > 54 1,736 Age > 54 138 Age 35-54 5,456 Age 35-54 154 Age 25-34 2,664 Age 25-34 Age 18-24 1,281 Age 18-24 130 Age < 18 817 Age < 18 45 - 2,000 4,000 6,000 8,000 10,000 12,000 0 50 100 150 200 250 300 (*) La Repubblica; Corriere della Sera; L'Espresso; Kataweb; La Gazze?a dello Sport; QuoAdiani Espresso; Radio Deejay; City; Le Scienze; Leiweb; Radio Capital; Max; ANSA; Editrice La Stampa. Da audiweb 01/01/2010 su elaborazione MediasoL Thursday, September 30 4w Marketplace™ s.r.l.- All rights reserved - INMA/OPA Europe Conference 2010 10 ! "Aggregate audiences in order to increase the business of all SynergisAc audiences aggregaAon •"Merging several audiences leads to increase a synergisAc accuracy, that is, higher revenues and ecpm in each singular property. In parAcular, the revenues increasing is approximately +45% Small publishers contribuAon •"In this virtuous cycle, even small publishers and small properAes become very important to improve the overall accuracy on target. Ravenues assuming separated audiences Turnover assuming merged audiences RCS L’Espresso Others PPN RCS L’Espresso Others PPN Target A Target A Target A Target A Target A Target A + 45% + 45% Audiences/Revenues by Audiences/Revenues by Target Target 10/4/10 4w Marketplace s.r.l., Strictly confidential - All rights reserved - No reproduction or diffusion without written authorisation 11 ! "Main Issues ! "Short term ! "Resistance to the Consortium approach ! "Time to market in Europe ! "Long term ! "Competition with International Ad-Network ! "Up to date platform maintenance Thursday, September 30 4w Marketplace™ s.r.l.- All rights reserved - INMA/OPA Europe Conference 2010 12 ! "Next steps ! "Start at least 3 countries (local consortium) in 2011 ! "Localization ! "Team set-up ! "Share Italian experience ! "Know how ! "Methods ! "Materials ! "Technology ! "Define policy & rules of International cooperation ! "Test new features, not only contextual ! "Socio demo Targeting ! "Video Format Thursday, September 30 4w Marketplace™ s.r.l.- All rights reserved - INMA/OPA Europe Conference 2010 13 Thank you Gabriele Ronchini [email protected] Thursday, September 30 4w Marketplace™ s.r.l.- All rights reserved - INMA/OPA Europe Conference 2010 14 .