1. engineering audience behavior classifytargetoptimize cognitive intelligence for digital advertising Sanzhar Kettebekov, Ph D sanzhar@receptiveview.com © 2013 Receptive cognitive intelligence for digital advertising™ Предпосылки успешного развития интернет бизнесов: Уроки Телекома в США Testing and Adoption Program Microsoft

2. telecom – consumer market © 2013 Receptive cognitive intelligence for digital advertising™ only data & voice charges $ customer base =

3. focus on value added services © 2013 Receptive cognitive intelligence for digital advertising™  Visual voicemail  Family safety – location services  Road-side assistance  Watch TV on mobile  Home security

4. example: Starbucks Wi-Fi © 2013 Receptive cognitive intelligence for digital advertising™  Free Wi-Fi since 2008 competition

5. business directory network © 2013 Receptive cognitive intelligence for digital advertising™  AT&T sells majority stake in Yellow Pages for $950M, following Verizon

6. era of ad networks © 2013 Receptive cognitive intelligence for digital advertising™ MOBILE | TV | ONLINE

7. from data to intelligence © 2013 Receptive cognitive intelligence for digital advertising™  Data is not intelligence  Needs to be processed  Intelligence: who needs WHAT, WHEN, and HOW intelligence services  revenue 101010 101010 101010 data 

8. internet business today © 2013 Receptive cognitive intelligence for digital advertising™  Selling simply the size of your audience – does not work anymore  Even if you are a facebook  Twitter monetization problem  Valuation of online resources is based on the quality of the audience

9. retargeting intelligence © 2013 Receptive cognitive intelligence for digital advertising™ data aggregators  retailer or competitor ad network  

10. telecom - big brother ? © 2013 Receptive cognitive intelligence for digital advertising™  Available information  Location & interests  Gender  Age  Spending power  Life stage and occupation  Shopping behavior  Character  Internet: privacy related litigations will only make the collection methods evolve

11. today’s problem © 2013 Receptive cognitive intelligence for digital advertising™  1billion users on the internet daily  Each user browse through 10’s of pages  Media groups storing Petabytes of data  Plenty of data but not enough intelligence  WHAT you visited - but not WHY and HOW  WHEN you visited - but not WHEN you will do it AGAIN  Technical issues of analyzing and somewhat in managing

12. selling audience  Bring level of traffic to min 1 mil uniques per month  Where at least 30 % return visitors  Increase inventory to include must-have ad formats (leaderboard, skyscraper, ad cubes, road block)  Start selling your audience characteristics  Psychographics and demographics © 2013 Receptive cognitive intelligence for digital advertising™ Gender

13. consumer funnel © 2013 Receptive cognitive intelligence for digital advertising™ brand building decide consider branding retargeting search advertising display advertising $15B $11B Growing annually at 27% (US) and 45% (Russia)

14. real-time auction  RTB – 20% of ads traded now, 50% expected by 2016 RTB- auction model 300x250 728 x 90 300x250 ad unit bids ad exchange advertisers (DSP, trading desk, ad network) quality of viewership  premium audience receptive view™ publisher bid price optimization  effective spend © 2013 Receptive cognitive intelligence for digital advertising™

15. advertising industry © 2013 Receptive cognitive intelligence for digital advertising™ Luma partners LLC

16. what is next? © 2013 Receptive cognitive intelligence for digital advertising™  Integrated media & communication services  Ad network growth & audience selling  ecommerce  Smart home environment