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Growing Direct Response Budgets Driving DSNR Media Group Revenues Says CEO Peles

Tsafrir Peles is CEO of DSNR Media Group, an interactive advertising services provider.

AdExchanger.com: A bit of history. How DMG pivoted in recent years to meet market opportunities?

TP: DSNR Ltd., as a large scale international advertiser, was the first international advertiser on the right media network back in January of 2004, helping Mike Walrath and his team monetize their growing international inventory.

In mid-2007 we decided to spinoff our media department to create DMG – DSNR media group; a results based, international, interactive advertising service provider. We got onto the game field with one big advertiser, trained a team of media professionals, mainly in the fields of media buying, campaign optimization, search and email marketing. We needed to add some sales people and started to roll. DMG was incorporated in October of 2007, surpassed its challenging goals in 2008, doubled its revenue for 2009 and is on its way to double again in 2010.

We have always been capitalizing on remnant inventories, first as a large advertiser, from 2002, and then as a service provider since 2007 and on. As a service provider our focus is on the demand side, serving our advertising clients, aggregating media for them from many different media sources, adding our unique optimization “flavor” that consist of our post click optimization technology, and our holistic approach to campaign value chain optimization.

We have been capitalizing on three main trends in recent years: 1. Growing budgets in results based advertising.  2. Decreasing budgets (08 and 09 economic slowdown) in brand / premium advertising what made more “premium” inventory remnant.  And 3. Overall internet usage continues to grow constantly, in our view, this means more impressions created and need to be monetized.

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Video Ad Platform AdGenesis Asking Consumers About Buying Intent, Rewarding Them In Exchange Says Exec Kelley

Michael Kelley is the newly-appointed CMO of AdGenesis, a video advertising platform.

Please share a bit of background on yourself.  Why is AdGenesis the right next step for you?

I have spent the better part of my 25 year career in marketing and building digital businesses including Hulu, AT&T's national advertising business and mycokerewards.com, among others.  I have long studied consumers, their changing media habits and receptivity to new forms of advertising.  Now that we have seen the economy adjust to what now is termed, "the new economy," I see the consumer altered forever with permanent value-driven buying habits.  AdGenesis has all of the ingredients to be successful for marketers and users in this new economy play.

Why do you think consumers will be willing to share personal information on buying habits and watch ads in exchange for rewards? Isn't this adding friction to the consumer's online experience?

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Webtrends Announces Search And Display Tool; Specific Media Receives Privacy Lawsuit

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Search And Display From Webtrends

Web Trends announced update to its product line as drives harder on the ad business. The company announced Webtrends Ads - according to the release - "an end-to-end, data-driven solution for creating, measuring and improving performance marketing acquisition across global search networks, the Google Display Network, and Facebook Ads." Read the release.

Cookie Lawsuits

Specific Media is being sued by a well-known attorney focused on consumer privacy online over alleged improper use of Flash cookies according to Ryan Singel of Wired. This is the third privacy-related lawsuit filed this month. Others include a "zombie cookie lawsuit" and a Demand Media/Disney lawsuit. Read more about the Specific Media filing.

Google, Phones, Facebook

On The Business Insider, Goldman Sachs analyst James Mitchell offers a reason for the new Google calling feature in Gmail. TBI paraphrases Mitchell: "Google’s ulterior motive is less about disrupting the teleco industry and more about driving engagement within Gmail and its social networking activities to better compete with Facebook." Read more.

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AdExchanger: Data Leakage

A weekly comic strip from AdExchanger.com that highlights the digital advertising ecosystem...

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Perfect Market Matching Search Audience To Content Says CEO Schoenfeld

Julie Schoenfeld is CEO of Perfect Market, a publisher-side technology company.

AdExchanger.com: With "Perfect Market," the allusion to financial markets is hard to ignore.  Is there a connection?

JS: Perfect Market is kind of a "good luck" domain for Idealab. It was the original name and domain for two of Idealab’s success stories.  In addition to the good karma, we chose the name Perfect Market because the Web provides a highly efficient (though not quite perfect) market for content.  In this market, the highest quality content generally monetizes at the highest rates. Since our goal is to ensure that the highest quality content also gets the most traffic and makes the most money from search, we thought the name Perfect Market, an allusion to the market for content on the Web, would be a perfect name for our company.

What problem is Perfect Market solving?

Search engines have changed the way people consume information.To survive in today’s search-based world, traditional publishers need to focus on content creation, aggregation, and monetization via search and other performance-based models.

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BrightTag Gets Funding, Investors Include Google CEO; Adap.TV Targeting Brands; To CTR Or Not To CTR

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BrightTag Announces Funding

Data rights management platform BrightTag (AdExchanger.com Q&A) announced that it has closed its Series A financing led by TomorrowVentures and New World Ventures with participation from Epic Ventures and the I2A Fund - note TomorrowVentures involvement which is an investment vehicle for Google CEO Eric Schmidt. Read the release. DRMP and DMP (data rights and data management platform) are the latest additions to the online ad ecosystems acronym soup. Welcome!

Making Brands Comfortable

Looking to grab brand dollars moving online, video ad marketplace Adap.tv has launched its "Brand Impact" offering which is a combination of partnerships with Affine Systems content verification technology, Vizu's brand optimization and measurement product line and Adap.tv's own technology. From the release: "Adap.tv's Brand Impact provides five key benefits for brands that want to create powerful online video advertising programs..." Read them.

RIM Acquires...

RIM quietly announced that it has acquired a mobile content and app management platform company called Cellmania. No word on how much. In fact, no word beyond what's on the Cellmania home page. Read more on TechCrunch. Does this mean Millennial Media is off the table? No. The Cellmania purchase looks like a piece of an overall mobile monetization strategy - there still seems to be room for a mobile ad network with scale.

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MarketShare Partners Acquires JovianData

Marketshare Partners announced today that it has acquired analytics company, JovianData (AdExchanger.com Q&A from earlier in the year). Terms of the deal were not disclosed. Read the release.

Wes Nichols, co-Founder and CEO of MarketShare Partners discussed the deal and the benefits of the combined companies.

AdExchanger.com: Explain the fit between JovianData and MarketShare Partners from your potential, future client's perspective.

WN: Marketing “ROI” has never been more critical to marketers.  There has never been so many paths to consumers, and it has never been as hard to accurately measure.

Data is fundamental to advanced marketing optimization.  However, handling the increasingly large volumes can take valuable time and money.   Adding JovianDATA's capabilities automates and streamlines MarketShare’s data processing and analytics, allowing faster, immediate decisions for our clients. This will help our clients and agency partners by providing more frequent, detailed, on-demand updates to objectively make cross-marketing decisions.

As an example, a global travel company with great analytic capabilities now uses MarketShare’s platform after we found nearly 10% improvements in new customer acquisition by more accurately attributing impact of both offline and online marketing activities on one another. By adding JovianDATA’s platform, it will help us optimize their online and offline marketing decisions faster for this client and our other our clients.

The combination of MarketShare and JovianDATA will create a powerful, predictive marketing investment optimization platform for our clients.

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Investment Banker Terence Kawaja Starts LUMA Partners

Terence Kawaja recently announced that he will be leaving investment banking firm GCA Savvian to start his own firm, LUMA Partners.

Kawaja discussed the new firm and his strategy with AdExchanger.com.

AdExchanger.com: You have suggested investment banking needs disruption? Why?

TK: Fundamentally, I think some aspects of the banking model are broken.  Most bankers effectively act like real estate agents – they sign up a client and then take them out to market.  In other words, they obtain inventory and then try to sell it.  That model works fine for mature companies or divestitures but not so well for emerging technology businesses.  Think about it – if you have a great company in a growing sector with a bright future, why would you proactively sell?  There is absolute adverse selection at play here: the weaker companies are SOLD and the better companies are BOUGHT.  The “banker” that calls up the potential strategic acquirer is hardly unbiased – they're selling inventory.

LUMA Partners acts as a “strategic advisor” representing companies that are BOUGHT.  We spend a tremendous amount of time with the large strategic buyers – with both development executives as well as business and product leaders – to understand their strategic goals.  We use our deep knowledge of the business models, markets, companies and executives in the space to help inform and identify the best possible acquisition candidates that can deliver the capability necessary to fulfill those strategic goals.  We do this on an objective basis and then try to make the deal happen once the target is identified.  Ultimately we represent and get paid by the company being bought but we start with an objective value add to the strategic.  It’s a real win-win approach.

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Borrell: Digital Ad Spend Growing; WPP Group Sees Q2 Profit Growth; MySpace Eats FAN

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Online Ad Spend Swamis

More good news from those who forecast digital ad spend. Borrell Associates says in a release, "Total online ad spending will grow almost 14 percent, from $45.6 billion, in 2010, to $51.9 billion, in 2011, while local online ad spending is expected to grow nearly 18%, from $13.7 billion, this year, to $16.1 billion, next year. The fastest-growing segments of online advertising are the local sector, anything targeted, and everything involving social media." Read more.

WPP Group Reports Q2

Ad holding company WPP Group reported strong, second quarter 2010 results yesterday as "profit attributable to shareholders rose to £150.8 million ($234 million) from £108.4 million." For digital: "In the first half, direct and digitally-related activities accounted for 28%, or $1.913 billion (an annual run rate of $4 billion) of the Group's total revenues, which are running at the rate of well over $14 billion per annum." And, the company raised its dividend for the first time in 18 months. Read the release. And, here's a combative video interview with WPP CEO Sir Martin Sorrell and Bloomberg yesterday regarding results.

MySpace, FAN Are One

Fox Audience Network (FAN) has been placed under the MySpace umbrella at News Corp. The news comes as FAN chief Adam Bain has left for the top revenue generator role at Twitter. From the MySpace/FAN release, MySpace prez Mike Jones said, "By fully integrating FAN's platform and team, we are in a great position to further leverage FAN's technology." With a dwindling user base at MySpace, perhaps this consolidation will present an opportunity to sell the FAN technology and MySpace as a package. Read the release.

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Media Is From Mars And Creative Is From Venus

"Data-Driven Thinking" is a column written by members of the media community and containing fresh ideas on the digital revolution in media.

Today's column is written by Karl Siebrecht at AdReady.

"Media Is From Mars And Creative Is From Venus"

Cheesy title for a column? Perhaps.

Critically important topic that has been vastly underrepresented amidst all of the renewed innovation, growth and hype within the display advertising industry? Absolutely.

Here’s the thing, most—if not all advertisers—share a common goal: to reach the right audience with the right message at the right time. Yet despite the inherent structural potential of the Internet to deliver on this mission through display advertising, and fifteen years of investment and innovation in the industry, this goal remains unmet for many marketers.

Why?

I believe it is because media and creative have been managed separately from one another for far too long. From marketing strategy through tactical campaign execution, and from the services layer through the technology providers, the media and creative disciplines have not yet fused to the degree necessary to reach their collective potential.

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Bain Leaves FAN, Joins Twitter; Hanlon Joins IPG; CNN Guaranteeing OOH Audience – Amazing But True!

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Bain Leaves FAN, Joins Twitter

Former Fox Audience Network CEO Adam Bain will now be the one who gets to answer, "How is Twitter going to make money?" in that he'll be in charge of driving all revenue at microblogging company Twitter. TechCrunch's Mike Arrington writes that Bain "will be President, Revenue and he’ll be reporting to COO Dick Costolo." Read more. Thus far, no tweets from Bain through his Twitter account.

Hanlon Hired By Mediabrands

IPG Mediabrands has hired Tim Hanlon, who recently left Catalyst S+F, according to Brian Morrissey of Adweek. Morrissey reports that Hanlon will be IPG's "point person for bridging the gap between Madison Avenue and Silicon Valley (and) will work in Mediabrands Ventures, the unit set up in January under Matt Freeman to house 16 specialty digital marketing companies like search firm Reprise Media, digital ad trading desk Cadreon and mobile shop Ansible." Read more on Adweek.

Block And Tackling

MediaMath CEO Joe Zawadzki discusses the data-driven ad world in a Forbes.com feature called "Advertising: More Science Than Art" by Victoria Taylor. Zawadzki says, "I do think that we're in a time when marketing moves from art and interactive marketing moves from process into plot and into sort of automation. The basic blocking and tackling is now automatable and it's allowed people to think again." Read more.

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