the app is the new ad unit deck

Michael Lazerow

CEO, Buddy Media

michael@buddymedia.com

www.buddymedia.com

June 10, 2008

App-vertising: The app is the ad unit

The future of branded digital

advertising in a social world.

Social media is here.»37% of adult internet users and 70%

of teens use social networking sites monthly

SOURCE: eMarketer Social Network Marketing Report. Dec. 2007

Growth is accelerating.»In 3 years, 49% of adults and 84% of

teens will be on social networks

SOURCE: eMarketer Social Network Marketing Report. Dec. 2007

All major social networks have announced plans to open their platforms to developers.

Marketers now have unprecedented, cost-effective and direct access to more than 300 million captive and engaged users.

Expensive and inconvenient.Limits choice for users.Kills host platform as innovation lags.

EXCLUSIVITY

Free, massive distribution.Easy to develop.Encourages user choice.Boosts host platform.

Brand advertisers are trying to figure out how to leverage this massive reach and talk directly to consumers.

Traditional banners, buttons and interstitials don’t work.

The in the online ad market has shifted from the seller to the buyer, who has more choice at a lower price than ever before.

POWER

The application is the new ad unit.Impressions are no longer an end but rather a means to an end.

And that “end” is ENGAGEMENT.

The incumbent players in the advertising ecosystem are ill-equiped to build or promote engaging applications.

THE OPPORTUNITY

Targeting

Share & Invite

YOUR friends are now in YOUR ads!

Ads have a call to action.

CustomizeCustomizeUploadUpload

SendSend

The ad unit is an application.

The media is IN the unit.

The ad unit is engaging.

And the ad unit is an application that is tied to the social graph.