1.0  Business Drivers for AdForce Service Products

1.1 Corporate Objectives

AdForce’s corporate objectives support a clear mission:

To be the leading service for managing Internet advertising and direct marketing. 

 

The objectives are as follows:

1.        To maximize market share

2.        To create multiple recurring streams of revenue

3.        To achieve excellence in service and reliability

4.       To create the potential for profit

1.2  Business Objectives

AdForce’s business objectives are designed to achieve the overall corporate objectives, and success in the identified market segments:

1.        Offer the best ad solution for publishers

2.        Offer the best ad solution for advertisers

3.        Provide marketing and commerce ROI tracking

4.        Build valuable centralized user profile database

5.        Provide the Internet marketing exchange

6.        Be the number #1 brand in the industry

1.3  Customer Priorities

 

Advertisers have the following priorities:

1.        Reliable ad serving and measurement (counting)

2.        Reports that are accurate, timely and complete

3.        An interface that is intuitive, reliable, fast, and mirrors their process

4.        Media planning tools with integrated syndicated data

5.        Tools for measuring and analyzing ROI, and effectiveness

6.        Integration with advertiser process - media research, planning, buying accounting across all media.

7.        Centralized, efficient mechanism for buying and executing complex campaigns - media brokerage, order stewardship, etc.

8.        Targeting using demographic, lifestyle and behavior information

9.        Support for rich media formats

Publishers have the following priorities: (they vary by the size of publisher)

1.        Reliable, 100% ad serving without failures

2.        Accurate counting and reporting

3.        Fast ad serving response time

4.        Powerful and flexible inventory management

5.        Near-site or on-site ad serving (large sites)

6.        A Client that is fast, easy to use and stable

7.        Data center redundancy

8.        Verified user database and targeting capabilities using that database

9.        Media sales management and order reservations

 


 

2.0 Product Strategy                                                          EL/FK/HSR   10-15

Overview Paragraphs…

 

2.1 AdForce Hexagon of Service offerings


 


Performance Metrics – Today, targets for ’99 & ‘00

 

Today

Q4 ‘99

Q4 ‘00

Ads Delivered

160 MM

1,000 MM

5,000 MM

Users of System

200

2,000

5,000

Active Campaigns

5,000

50,000

200,000

New Campaigns

300

1,500

10,000

Reports

 

 

 

Beacons

 

 

 

 

 

 

 

 

Using existing numbers the following were estimated…

Projections FY99, FY00

 

 

 

 

 

 

 

 

Q1 '99

Q2 '99

Q3 '99

Q4 '99

Q1 '00

Q2 '00

Q3 '00

Q4 '00

Total Impressions (in Millions)

183

290

492

690

1,714

3,573

7,791

17,435

Paid Impressions (in Millions)

173

272

462

649

1,556

3,172

6,759

14,782

Beacons

(in Millions)

1

2

4

6

16

38

92

228

Campaigns

(in Thousands)

5

7

10

12

18

26

39

59

New Insertions (in Hundreds)

3

4

5

6

10

14

20

30

Reports

(in Hundreds)

7

9

12

14

18

23

29

38

 


 



1.      Subsystems, Frameworks and Added Services

Subsystem

Framework

Current and Added Services

Media Planning

Campaign Performance

1.       ROI Assessment (requires beacon serving)

2.       Demographic profile campaign performance

3.       Behavioral profile campaign performance

4.       Adjust campaigns in real time, offer suggestions, update schedule (?)

5.       Campaign Decision Support Workstation

Media Research Interface to our Campaign Performance subsystem

1.       Media Planning using Media Research data

Banner Co-op Media Planning

1.       Add Co-op inventory to the media planning inventory

Media Management

Current Media Management Framework

1.       Java Client: Campaign Forecasting, Scheduling, Editing

New Media Management F/W

1.       Improved website and campaign management

·         Hierarchy of website items (Website, pages, CU’s and other groupings)

·         Hierarchy of agency items (campaigns, flights, media)

2.       Beacon Scheduling

3.       RAS Scheduling

4.       Media Co-op Scheduling

5.       List based target scheduling

New IMS Framework

1.       Keyword based campaigns

2.       Campaign Management w/ overlapping inventory

Three Tier Client Interface

1.       API for Media Management

2.       HTML Client interface

3.       Integration w/ outside systems (including Media Planning subsystem)

Media Delivery

Current Architecture

1.       Paid Banners & Sponsorship ‘buttons’

2.       ‘Unpaid’ House Ads

3.       Limited Secure Ad Serving capacity

4.       Limited Rich Media Serving

5.       Beacon Serving

6.       Multiple Ads Per Page (MAPP)

7.       Ads based on viewer’s connection speed

Rich Media

1.       Deliver Rich Media Ads Faster, more reliably

List based targeting

1.       Serve Ads based on demographic or behavioral criteria.

Multiple Data Centers

1.       Added Capacity, faster delivery.

2.       Added Secure Media Serving capacity.

3.       Added Rich Media Capacity (?).

Media Co-op Delivery

1.       Banner Co-op ad serving, scheduling and management.

Distributed Delivery (RAS & RIS)

1.       Delivery of Text ads as HTML Text

2.       Delivery of targeted HTML content for ‘advertorials’.

3.       Improved Ad delivery

·         Browser based tag selection

·         Faster delivery of text ads.

·         Faster delivery of Ads

·         Better delivery of Rich Media ads

API for Ad Selection plugins

1.       Interface to targeting engines (i.e. NetPerceptions, Engage)

Reporting

Actuate Reporting Engine

1.       Multiple levels of Reporting – Base, Premium, Pay per Report

2.       Custom Reports – faster to develop, more reliable

3.       Real Time Reports (using data up to the last hr.)

Beacons

1.       ROI Reporting

2.       Click Stream Analysis

Media Co-op

1.       Media Co-op Reporting

List based targeting

1.       Report on ads served using demographic or behavioral criteria

RAS

1.       Report on RAS delivered ads – integrated w/ standard reporting.

Data Management & Analysis

User Profiles

1.       Match User ID’s w/ Experian Demo data

2.       Match User ID’s w/ beacon Data

Tracking

1.       Track viewers behavior w/in media’s space as well as outside website (via beacons)

Targeting

1.       Manage lists of targetable user id’s/profiles

ROI Calculations

1.       Using campaign spent $’s, tracking info, user profiles – provide campaign ROI data

Query Interface

Statistical Analysis

Collaborative Filters

Neural Engine

Rule Based Engine

1.       Beacon Data Management

2.       Profiling

3.       Tracking

4.       Statistical Analysis

5.       Query Interface

Data Streams

Data Publish

1.       Data Export (CD ROM, FTP, e-mail)

2.       Publish & Subscribe

3.       Ad Delivery Data ‘ticker’

 

 

 

 

 

 

 

 

 





Project Plan by Phase

 

Phase

System

Ad Delivery

Data Stream

Reporting

Data Analysis

Campaign Management

Media Planning

0

Q1 1999

3/31/99

·         RSPC

·         Capacity: 440M/day

·         Tantau Facility

 

·         Data Export (Beta)

·         RegForce 1.0

 

 

·         Java Client 3.0

 

1

Q2 1999

6/30/99

·         RSPC

·         Load Shedding

·         System Monitoring 1.0

·         RAS 1.0 (Beta)

·         RIS 1.0 (Beta)

·         Keyword Enhancement 1.0

·         Banner Coop (Beta)

·         Rich Media improvements

·         Data Export (Millward Brown Voyager)

·         New Reporting (Actuate, scheduled ) 1.0

·         Media Reports

·         TrackForce 1.0 (Beacon Data Mgmt. & ROI Assessment )

·         Agency Upgrades

·         IMS  2.0 (Keywords)

·         Site Branding 1.0

·         Media Planing 1.0 (integration w/ Media Metrix)

2

Q3 1999

9/30/99

·         RSPC

·         System Monitoring 2.0

·         Back Office Tools 1.0

·         RAS 1.0

·         RIS 1.0

·         Beacon Targeting 1.0

·         Banner Coop

·         MAPP 1.2

(Data Stream F/W)

·         Premium Reports 1.1 (Actuate)

·         Billing

·         TargetForce 1.0 (Behavioral)

( N-Tier Client F/W )

·         Back Office Integration

(Work Flow F/W)

3

Q4 1999

12/31/99

·         RSPC

·         Cost Reduction

·         Capacity 1B/day

·         UDT – Beacons & AOL based

·         MAPP 2.0

·         Publish / Subscribe

·         Near Real Time Reporting (Beta)

·         TargetForce 2.0
(Demographic)

·         List Builder

·         Query I/F

·         Browser based Client

·         IMS  3.0 (Overlapping)

·         Media Planning 2.0

·         Media Exchange .5

4

Q2 2000

6/30/00

·         RSPC

·         Capacity 2.5B/day

·         UDT – RegForce based

 

·         Near Real Time Reporting 1.0

·         Data Mining 1.0

·         IMS 3.5 (Resource Allocation)

·         Media Exchange 1.0

5

Q4 2000

12/31/00

·         RSPC

·         Capacity 4B/day

·         Rich Media

·         Ad Delivery Ticker

 

·         Data Mining 2.0

·         Decision Support Client

·         Media Exchange 2.0


 

 

Deployment Timeline (Frameworks)

 

Media Planning

Media Management

Media Delivery

Reporting

Data Mangement& Analysis

Data Streams

System Mgmt

R0

 Q1’99

 

New Client UI

200 MM ads

Multiple Data Centers

Rich Media

Actuate

User ID Matching

Data Export (Beta)

 

R1

 Q2’99

Banner
Co-op

Beacons

RAS & RIS (Beta)

Banner
Co-op (Beta)

New Agency Client UI

IMS (Keywds)

Site Branding

Beacons

RAS & RIS (Beta)

Banner
Co-op

?? MM ads

Beacons

RAS & RIS (Beta)

Banner
Co-op

Beacons

 

 

 

R2

 Q3’99

Campaign Performance

List based targeting

New Media Mgmt

New IMS

Three Tier Client I/F

List based targeting

?? MM ads

List based targeting

List based targeting

 

 

R3

 Q4’99

Media Research I/F

 

?? MM ads

 

 

 

 

R4

 Q2’00

 

Media Trading (?)

?? MM ads

 

Query Interface

Statistical Analysis

Data Publish

 

R5

 Q4’00

 

 

?? MM ads

 

Collaborative Filters

Neural Engine

Rule Based Engine

 

 

 

 

 

 

 

 

 

 

 

 

 


 

2.2 Value Chain  Assessment

 

In ’98 about $2 Billion was spent on Online Advertising. 

 

The cost of serving those ads was $31 MM.  AdForce served 14% of the ads, we collected $4.2 MM in ’98.

 

The following are estimates based on Media Metrix numbers for Oct.’98.

 

Total Page Views in Oct '98 (000) – Top 20 sites

6 Billion

 

Total Ad Views in Oct '98 (000) – Top 20 sites

18 Billion

 

Total Ad Views in '98 (000) – All sites

      69 Billion

 

Total Spent Online Adv

 

 $2 Billion

 

Average CPM

 

 $ 29

 

Average cost of ad serving

 

$ 0.45

 

Total Spent on Ad Serving

 

 $ 31 MM

100%

Total Spent on Ad Serving at ADFC

 

 $  4.2 MM

14%

 

AdForce currently is only doing Ad Serving, areas for growth are:

·         More Ad serving – sites are growing and we can capture more of the share of the market.

·         More expensive/valuable ad serving – targetable ads

·         Added services – more sophisticated reporting. ROI reporting. Data Analysis

·         Ad Co-op revenues

AdForce can add value to most of the items that are key to Websites, Rep Firms, Advertisers and Agencies:

AdServing

·         Forecasting, scheduling, managing and reporting on space and inventory.

·         Delivering ads fast and reliably

·         Counting the highest number of possible ads -> more revenues to website customers

·         Effectively handling click-throughs and becons

Reporting

·         Reports for websites, rep firms, advertisers and Agencies – each report is different.

·         Custom reports

·         ROI reports

Targetable Ads

·         Added value ads based on behavior, demographic or other profile criteria

Ad Co-op

·         Serving ads for a co-op organization where ad space is bartered. AdForce would do the ad serving and management of the co-op barter system. Paid ads are also managed by AdForce.

 

Estimated AdForce Revenues by Product Category

 

Year Ended December 31,

 

 

Net Revenues:

1997A

1998A

1999F

2000F

2001F

  Adserving

 $  320

 $  4,286

 $ 13,738

 $ 32,482

 $ 54,758

  Targeting

 

 

             873

         2,063

         3,478

  Reporting

 

 

             160

            378

            638

  Prof Svcs

 

 

             106

            251

            422

  Ad Co-op

 

 

 

 

 

Total Net Revenues

           $ 320

      $ 4,286

      $ 14,877

    $ 35,174

    $ 59,296

 

 

Website – Organization, where AdForce fits, what issues do we address

For Websites, the Online Ad $$’s flow from:

·         Advertiser buying  space on pages, known as sponsorships ~ 50% of current large site revenues. A large portion of this is e-commerce related, and dependent on being able to track transactions at the advertiser/merchant site.

·         Advertiser buying banner, keyword or other ‘standard’ inventory, known as advertisements – 40% of current large site revenues

·         Agencies buying banner, keyword or other ‘standard’ inventory - < 10% of current large site revenues.

·         There are also ‘house ads’ or non-paid and barter ads which are run by Websites on ‘unsold’ inventory. The Websites tend to use site-side or homegrown servers for these ads since they don’t need to have as accurate reporting or scheduling as needed for paid ads. The % of inventory that is ‘house ads’ could be as much as the sold ads, depending on the season and the Website.       

 

For large websites, the organization looks like the following:

Sales:

·         Strategic business development team – focusing on large sponsorship partnerships (i.e. Amazon sponsoring the books section of Netscape, ATT sponsoring the “Communications’ channel at Infoseek, etc.) – these deals tend to be from $500 K to $ 5 MM.

·         Direct sales team, focusing on smaller sponsorships and large advertising deals - $10 K to $500 K

·         Indirect sales team, focusing on <$10 K advertising deals, usually a rep firm.

Marketing:

·         The overall organization has similarities w/ the media business. There are ‘Producers’ and ‘Directors’.  The ‘Producers’ are Program Managers, the ‘Directors’ are Art Directors.

·         ‘Program Managers’ which tend to be business managers and handle a channel or two of the website (i.e. finance, news, health). They handle the ‘brand’ of the channel. There is a look and feel that is defined by the ‘Art Director’

·         The Program Managers tend to be in a negotiation w/ the sales team re: what and how much space to use for advertising/sponsorships. The sales team or business development team will sometimes do a deal and then the program manager has to manage w/in the contract constraints.

·         The Program manager is essentially a constraint and controls how the $$’s are spent on his program. They are also interested in fast delivery of advertising since their program is directly affected

Operations:

·         They are the final gatekeepers of what and how ads will be served on the site. They tend to prefer site-side serving over outsourced ad serving since it gives them more control as well as more to do.

·         AdForce needs to ensure we make these people reasonably happy, they could prevent some of our programs from executing, like RAS or TrackForce beacons.

For Websites, the issues are, effectively:

·         Managing & reporting the sponsorship space sold.

·         Forecasting, scheduling, managing & reporting on campaigns of advertisement.

·         Counting revenues from the above revenue sources.

·         Scheduling house ads and barter inventory.

·         Ensuring speed of ad delivery and no disruption of their own pages being served.

 

For Rep Firms, the issues are similar to Websites, with the added requirements:

·         Managing, scheduling and reporting on several websites that are not in their direct control

·         Managing the revenue split among several websites whose inventory is being sold by the Rep Firm.

 

For Advertisers, the $$’s flow from and to:

·         Florian to fill in…

 

For Advertisers, the issues are:

·         Florian to fill in…

 

For Agencies, the $$’s flow from and to:

·         Florian to fill in…

 

For Agencies, the issues are:

·        Florian to fill in…

2.3 Market Window

Websites

·         About 71% of the ads served by the top 20 sites are going through a homegrown system or a site-side server solution. Both are not meeting the needs of the websites.

·         AdForce has the opportunity to capture 15% of the ads served by homegrown / site side systems in the next 12 months and another 20% the year after.

·         For this year we could make this number if we served ½ of the ads for Microsoft, AOL, Snap, Time Warner and Lycos. We have had early conversations w/ all of them.

·         In Oct. ’98 the top 20 sites served 6 Billion pageviews, if you assume an average of 3 ads per page, the ad impressions for Oct. ’98 were 18 Billion. The breakdown of ads served by each ad server follows:

Homegrown       49 % -     8.9 B

Accipiter              15% -     2.8 B

AdForce             13% -    2.4 B

DoubleClick        11% -     1.9 B

NetGravity             7% -     1.2 B

·         Currently most of the top 20 Websites are looking for new solutions. 71% of the ads are either served using home grown (49%) systems, or Accipiter / NetGravity (22%) site-side systems which, we understand (based on Netscape, Infoseek and CNN) are not meeting their needs.

·         DejaNews, LookSmart and others have used AdForce and DART and are currently un-committed due to lack of a solution that meets their needs.

·         We are using the Media Metrix Oct. ’98 numbers (the absolute numbers may be off, but the relative ranking of companies and the % of total page views allocated to each website should be reasonably accurate).


Top 20 Websites, October 1998.  Source:  Media Metrix

 

Web Sites

 

Total Pages (000)

Estimate of Ad Impressions

 

Adserving

Technology

1

Yahoo Sites

1,273,942

3,821,826

Homegrown

2

Microsoft Sites

871,455

2,614,366

Homegrown

Accipiter

3

NETSCAPE.COM

505,175

1,515,525

AdForce

NetGravity

4

AOL Websites

455,301

1,365,902

Homegrown

Looking at Adforce

5

eBay

447,844

1,343,532

DoubleClick

6

Excite Network, The

400,376

1,201,128

Homegrown

MatchLogic

7

Lycos

353,416

1,060,247

Accipiter

NetGravity (Wired)

8

GEOCITIES.COM

298,282

894,846

AdForce

9

The Disney Company sites

269,910

809,729

Starwave (Homegrown)

10

Time Warner Online

140,820

422,460

NetGravity

11

Infoseek

139,544

418,633

Starwave (Homegrown)

12

ZDNet Sites

136,773

410,320

Accipiter

13

ALTAVISTA SEARCH SERVICES

131,836

395,507

DoubleClick

14

AMAZON.COM

108,589

325,767

Outbound campaigns

15

CNET

98,894

296,681

Accipiter

16

Switchboard Network

98,673

296,019

NetGravity

17

BLUEMOUNTAINARTS.COM

96,465

289,395

No ads

18

SNAP.COM SEARCH & SERVICES

76,005

228,014

Accipiter

19

USATODAY.COM

56,246

168,739

Real Media

20

TRAVELOCITY.COM

54,568

163,704

DoubleClick

 

Window of Opportunity for Websites
 – When Products need to be done in order to meet target market share numbers

 

1H ‘99

2H ‘99

1H ‘00

2H ‘00

Media Planning

 

·         Media Planning 1.0

·         Media Exchange 1.0

 

Campaign Management

·         Keyword IMS & Mgmt

·         Site Branding 1.0 (for directory & community sites)

·         IMS Overlapping

·         Hierarchical Website Representation & Campaign Scheduling

 

·         Back Office Integration

 

Media Delivery

·         RAS & RIS

·         Faster more accurate delivery

·         Banner Co-op

·         Rich Media

·          

·          

Reporting

·         Premium / Custom Reports

·         Near Real Time Reporting

 

·          

Data Streams

·         Data Export

·         RegForce 1.0

·         Publish / Subscribe

 

Data Analysis

 

·         TrackForce for E-Commerce sites

·         TargetForce Behavioral

·         TargetForce Demographic

 

Rep Firms

·         They need to have centralized ad serving, and DCLK is a key competitor. Few other options other than AdForce

Advertisers

·         Florian…

Agencies

·        Florian…


 

2.4 Product Architecture

Overview Paragraphs…

 

2.4.1       Media Planning Subsystem

Overview Paragraphs…

Goal:

·         Characterizing website pages and ad/media space using content, behavioral, demographic and other profiles.

·         Interfacing w/ IMS engine to get Forecasts of inventory over on media space over a variety of websites.

·         Defining a media plan or a campaign which consists of: Media Inventory distributed over a time period on space that is available from the websites.

·         Include API for interfacing to:

·         Media Space manager (both query and define media space)

·         Forecasting engine (IMS, both to query and provide data)

·         Extracting data on space definitions.

 

2.4.1.1            Campaign Performance FW

2.4.1.2            Media Research I/F

2.4.1.3            Banner Co-op Media Planning FW

 

2.4.2       Media Management Subsystem

Goal:

·         Reserving space on websites over a period of time.

·         Scheduling ad/media over the website space during a time period (campaign)

·         Schedule beacons (?)

·         Editing the campaign within the bounds defined in the scheduling process

·         Include API for interfacing to:

·         Reserving space

·         Scheduling ad/media, including beacons

·         Editing campaigns

·         Extracting data on scheduled campaigns

 

2.4.2.1            Current Media Management FW

2.4.2.2            New Media Mgmt FW

2.4.2.3            IMS FW

Overview Paragraphs…

Goal:

·         Forecasting availability of inventory over on media space over a variety of websites.

·         Forecasting based on:

·         Space & Time – content definition vs. query

·         (i.e. what 468 x 60, JavaScript enabled inventory do I have on Yahoo Finance, from 3/15/99 to 4/15/99 ?)

·         Behavior & Time – lists of users vs. query of space & time

·         (i.e. how much inventory do I have on Yahoo Finance from 3/15/99 to 4/15/99, for the people who visited beacon 4367 from 9/1/98 to 12/31/98 ?)

·         Demographics & Time – demographic profiles vs. query of space & time

·         (i.e. how much inventory do I have on Yahoo Finance from 3/15/99 to 4/15/99, for people who are 35 to 44 yrs. old ?)

·        Include API for interfacing to:

·        IMS engine – queries of space, behavior or demographic nature over time.

 

2.4.3       Media Delivery Subsystem

Overview Paragraphs…

Goal:

·         Respond to ad/media requests fast (under 500 ms ?), accountably (> 90%) and w/out caching

·         Choose and ad/media to ‘deliver’ by ‘deciding’ on what banner to serve to which viewer on what space at what time.

·         Handle click-throughs – respond fast (under 500 ms ?) and accountably (>95%), prevent caching of response

·         Handle beacons (? Here ?)

·         Allow for distributed handling of ad/media requests

·         Include API for interface to:

·         Insertion of ad/media schedules

·         Input and output to Targeting engines

·         Output to Data Streams

 

2.4.3.1            Current Ad Delivery FW

2.4.3.2            Distributed Media Delivery FW

2.4.3.3            List based targeting FW

2.4.3.4            Media Co-op Delivery FW

2.4.3.5            Media Selection Plugin FW

2.4.3.6            Image delivery FW

Overview Paragraphs…

Goal:

·         Deliver ad/media ‘payload’ fast (>80 % of baud rate) and efficiently,  use internet caching where possible.

·         Deliver a variety of media seamlessly (rich media, advertorials, etc.)

·         Allow for distributed ad/media payload delivery

·         Include API for interface to:

·         Distribution of ad/media payloads

·         Interface to other ad/media delivery services (i.e. Rich Media, Audio, Video, etc.)

 

2.4.4       Reporting  Subsystem

Overview Paragraphs…

Goal:

·         Report on existing and past campaigns – media scheduled on website space during a period of time.

·         Report on click-throughs and beacons.

·         Report on ROI & Targeting (?)

·         Report data in a variety of ways – summaries, detailed, w/ more or less fields, etc.)

·         Reports are delivered in HTML, print and excel formats.

·         Include API for interfacing to:

·         Requesting, scheduling, stopping reports, to be delivered through standard mediums (i.e. HTML, printed or excel)

·         Getting a report’s data through the API

·         Defining a report (?)

2.4.4.1            Actuate FW

2.4.4.2            Beacon Reporting FW

2.4.4.3            Media Co-op Reporting FW

2.4.4.4            List based Targeting Reporting FW

2.4.4.5            RAS Reporting FW

 

2.4.5       Data  Management and Analysis

Overview Paragraphs…

Goal:

·         Provide Access to the data generated by the ad delivery sub-system.

·         Provide query interface to gather summary and detail information

·         Provide filtering mechanisms for data: statistical filters as well as other filters (?)

·         Include API for interfacing to:

·         Query interface

·         Filtering mechanisms

·         Extracting of Data

 

2.4.5.1            User Profiles FW

Overview Paragraphs…

Goal:

·         Develop profiles of ad/media viewer’s behavior and demographics.

·         Interface w/ other profiling systems, such as Experian, to add profiles to an existing user’s record(s).

·         Include API for interfacing to:

·        User’s profile records – to add, edit, delete fields

2.4.5.2            Tracking FW

Overview Paragraphs…

Goal:

·         Track ad/media viewer’s behavior w/in the ad/media space (website) as well as outside the website (usually into merchant’s/advertiser’s sites)

·         Track visits, click-throughs and additional data provided by website/merchant/advertiser.

·        Include API for interfacing to:

·        View and extract viewer’s records of visits

2.4.5.3            Targeting FW

Overview Paragraphs…

Goal:

·         Define campaigns using behavioral or demographic profile criteria (i.e. deliver banner A to 18 to 24 yr. Males, or deliver banner B to viewers that visited a page w/ beacon)

·         Deliver ad/media using behavioral or demographic profiles as criteria.

·         Include API for interfacing to:

·         Targeting engine definitions, decision tree, counts (?)

·         Editing decision tree

 

2.4.5.4            ROI calculation FW

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Goal:

·         Combine the expenditure on campaigns to the tracking of viewers visits using the Tracking subsystem, provide Return on Investment calculations

·         Include API for interfacing to:

·          

 

2.4.5.5            Resource allocation

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Goal:

·          ???

2.4.6       Data streams

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Goal:

·         Provide data from subsystems using queries. Usually little analysis or filtering.

·         Include API for interfacing to:

·         Extracting data from subsystems using ‘simple’ queries.

 

2.4.7       Media Products

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Goal:

·         Handle existing media types: text, GIF, Animated GIF, HTML, JavaScript, Java, Audio, Video and other Rich Media types.

·         ???

 

 

2.4.8       Media Exchange FW

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Goal:

·          Working on it…


 

2.5 Competitive  Assessment

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AdForce areas of strength:

·         Meeting the reporting needs of large sites and networks: AdForce offers superior reporting capability at the network level

·         Client services: AdForce has many good references that will rave about the quality of support. Use them. Explain to your prospect that in the fast-paced world of Internet systems, any feature advantage of any competitor could be erased tomorrow. What they should base their evaluation on is reliability and service.

 

AdForce areas of weakness:

·         Java application: AdForce customers don’t like the Java application and would prefer to use an HTML interface. Luckily, the Java application makes for a great demo. If the downside comes up from a reference, make sure to position it as a trivial issue

·         Deal killers: AdForce has lost customers for not being able to rotate multiple ads per page and for not being able to set up inventory for a hierarchical site. Make sure you screen your prospects for these issues.

 

When competing with any site-side product:

 

·         Economics: Most (but not all) sites are convinced that outsourcing is the way to go for ad serving. If your prospect is considering bringing Accipiter or NetGravity in-house, make sure they consider the ongoing software license fees, hardware upgrade costs, and staffing implications of their decision. If they run the numbers, they’ll find that AdForce’s CPM pricing is a better deal.

·         Agency familiarity: Agencies are experienced with the 3rd party products (AdForce and DART) and know exactly how to schedule and report on their campaigns. Explain to the site that their advertisers will prefer it.

·         Audit: As a 3rd party, AdForce functions like an audit against the site’s numbers. The advertisers will appreciate working with an unbiased 3rd party.

 

With Accipiter

·         As of February 1999, Accipiter does not have geographic targeting. This is under development and certainly not a proven feature

·         Accipiter can’t track click-thrus on rich media ads

 

With DART

 

·         DoubleClick’s ad sales function creates a conflict of interest in the minds of many networks and large sites who consider them to be a competitor. Because DART’s functionality is similar to AdForce’s, you can use this issue as a tiebreaker.

·         DART gets mixed reviews for client services, so make sure your prospect hears the bad reviews. RotoMedia is a particularly unhappy former DART customer.

·         Beware of where DART can beat AdForce:

·         Real-time reports – same day data is available. In addition, customers can start/stop campaigns with 15 minutes lead time with no human expediting

·         Pricing – DoubleClick is real aggressive. Find out what price you have to beat

 

With NetGravity AdCenter (service bureau)

 

·         NetGravity will beat you on price. Try to find out what price you have to beat

·         NetGravity generally has the reputation for the worst ease-of-use, although not all customers agree with that.

·         NetGravity AdCenter is very new and has low volume customers. Heap lots of fear, uncertainty, and doubts on AdCenter’s ability to service clients with volume over 5 million ad impressions/month.

 

Bottom Line: There are problems with every ad server and you can find both deliriously happy and violently unhappy customers for each vendor. Explain to your prospect that AdForce is committed to establishing a long-term partnership to grow together to meet their needs.

 

2.6 Packaging considerations

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AdForce provides a service, as such we provide to our clients:

·         Client UI for interfacing to our sub-systems/services – currently this is both Java and HTML (some reporting, and AdForce One)

AdForce will be providing distributed ad request processing and distributed ad/media delivery as such we will need:

·         OEM or ‘packaged’ versions of ad request management subsystem and ad/media delivery subsystem.

 

2.7 Make versus buy  issues

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The first order of business before being able to integrate w/ ‘buy’ or ‘partner’ services is creating API’s for our subsystems. The business deal can be done prior to the API, but the actual integration will not be effective until the API’s are developed.

Current possibilities for ‘partnering’:

·        Ad Request management and Ad Delivery on proxies