Online Marketing Campaign—Kickoff

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Contents

• What is Kiva and how can you help? (In 8 slides!)

• Appendix

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Executive Summary

What is Kiva?

Kiva's mission is to connect people through lending for the sake of alleviating poverty.

Kiva is the world's first person-to-person micro-lending website, empowering individuals to lend directly to unique entrepreneurs around the globe. If you haven’t already, check us out at www.kiva.org.

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Executive Summary

What is the goal of this presentation?

Since 2007, over 470,000 people have loaned a little over $65 million to almost 160,000 entrepreneurs in 157 countries!

We’re proud of where we’ve all gotten together, but here at Kiva, we’re ready to grow our lender base through a dedicated online marketing effort.

The following presentation includes a call to action to the Kiva Community to help kick off this online marketing campaign.

Also we have been busy researching the online advertising industry – who the key players are, how the business model works, etc and wanted to share with you our findings.

Please help Kiva get the word out!

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Executive Summary

How can you help?

I. Calling all graphic designers: Our creative (i.e., online banner advertisements) needs a little help – ok, a lot of help. Send us new and improved Kiva creative or just send us suggestions. We need new creative to help attract people who have never heard of Kiva before—and to motivate them to become new lenders.

II. Let’s get to know each other: Kiva is looking to partner with ad networks (i.e. Specific Media, Collective Media, TACODA) and website publishers (i.e. NY Times, AOL) for our online marketing campaign.

If you or a friend is at an organization – ad network or publisher – that could partner with Kiva, let us know.

We’re ready and waiting: Please send all new creative designs and suggestions, along with introductions to your friends at ad networks and website publishers to Tanaya Parikh at tanaya@kiva.org.

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I. Current Kiva.org Creative – Help!!

260 x 170 Block Banner 160 x 380 Tower Banner

120 x 60 Button

468 x 60 Banner

The current portfolio isn’t appropriate for the scale of the campaign Kiva is trying to launch. Our goal to partner with premium ad networks and publishers requires high-quality creative.

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I. Creative Suggestions—What We’re Aiming For

Some key characteristics of high quality banner ads that publishers want to see include:(1) Color background (2) Gradation of color (3) High resolution

Remember—You should imagine your ad on the New York Times website!!

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Here are some ad networks we’d love to be introduced to …

II. Let’s Get to Know Each Other

(MSN)

(AOL)

(AOL)

(YHOO)

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… and here are some major website publishers.

II. Let’s Get to Know Each Other (cont.)

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Next steps…

I. So you want to introduce us to your friends at any of these or other ad networks and website publishers – GREAT.

II. The best way to do this is to email your friend and tanaya@kiva.org and express your support for Kiva. Let your friend know that Tanaya will be in contact with them shortly.

III.We’ll take it from there! (And thanks again!)

II. Let’s Get to Know Each Other (cont.)

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Contents

• What is Kiva and how can you help? (In 8 slides!)

• Appendix

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US Internet Advertising – Definition of Ad Types

Search/Text: Text ads that are displayed on the results page of a search query and that are related to the search terms. Also included are text ads that appear on a page based on the context of the content instead of a user-submitted keyword.

Display: Visual ads that are placed on 3rd party websites to drive traffic to an advertiser’s own website or increase product/brand awareness. Can be in a variety of formats including static display (banner ads), rich media (banner with animation/other interactivity) or video.

Classifieds: Advertisements that list specific products or services, such as job ads and employment listings, real estate listings, automotive listings, auction-based listings (such as on eBay), and yellow pages entries.

Internet advertising comes in all shapes and sizes – Kiva is looking to primarily expand its presence in display ads.

Kiva is a Google Grants recipient, receiving free advertising through Google Adwords.

Kiva hopes to build awareness and grow its lender base through an online campaign featuring high quality display ads.

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Internet Display Advertising – Subsector Breakdown

Static Display: Static banners, rectangles, or logos that appear on a website and may be hyperlinked.

Rich Media: Any advertisement that incorporates animation, sound, and/or programmed interactivity in any format. Rich media ads are usually based on technologies such as sound, Flash, Java, JavaScript/DHTML. Also includes widgets that are often shared by users and spread virally.

• Animation example

Video Ads: Broadband video commercials, TV-like advertisements that may appear as in-stream or in-page.

• In-Stream: Advertisements with requested online video, can run before (pre-roll), during (mid-roll) or after (post-roll) playing. Typically a standard 15 or 30 second TV spot.

• In-Page: Videos run as part of the web page content within a box on a web page

There are three main types of display advertising. Kiva challenges you to create both static and rich media creative!

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US Internet Advertising – Revenue Models

CPM: Cost per 1,000 Impressions, meaning advertiser pays a fixed amount for every 1,000 times its ad is viewed by a unique Internet user. Used primarily in display advertising.

• Banner ad, Advertiser pays a CPM for every 1,000 times its ad is viewed

CPC: Cost per Click. Advertiser pays a certain amount every time an Internet user clicks on their ad.

• Text ads displayed with search results, advertiser pays fixed amount when user clicks on link

CPA, CPL (“Performance”): Cost per Action or Cost per Lead. Advertiser pays every time a user takes a defined action. Actions can include a sales transaction, a customer acquisition or a click.

Click

• Ad displayed on a publisher’s page, publisher will get paid ONLY when customer takes further action, like completing registration form. Typically remnant, lower quality inventory.

• Registration form, advertiser pays publisher a CPA for each form filled out

While Kiva can’t spend dollar revenue for internet ad space, it can offer ad networks and publishers great value through its brand.

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Internet Advertising Value Chain – Key Players

• Advertisers hire ad agencies for online marketing services including display and search campaign management.

• Ad Agencies design advertisements (“creative”) and can purchase inventory from ad networks and publishers.

• Ad Networks aggregate inventory from multiple web sites, sell ad inventory to advertisers and share ad revenue with publishers.

• Ad Servers and other technology can be used to execute campaigns and/or collect data.

• Publishers build an audience by creating or packaging content that attracts users to their site.

Source: Banc of America research.

Kiva wants to initially target ad networks and publishers to partner with. However, a long-term strategy would expand focus to include potential partnerships with advertisers as well.

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Internet Advertising Value Chain – How a Dollar Flows

Source: Banc of America Research and WPP Group.

Analysis of the business model reinforces Kiva’s decision to target ad networks’ excess inventory.

Advertiser

Other (Mobile, IPTV, Games

Ad Server / Ad Exchange

Ad Network

Ad Agency

Comparison Shopping

Search Engines

Publisher

$1.00

$0.15 - $0.18

$0.05 - $0.40

$0.40 - $0.80 $0.40 - $0.80 $0.04 - $0.06

$0.01 - $0.02

• An Advertiser has a $1 budget and hires an Agency to manage the spending and creative strategy.

• The Agency gets a percent of the budget as a fee for its services, then decides with its client how to allocate the remainder.•The Agency/client could choose to purchase inventory from an Ad Network. Alternatively, the Agency could purchase inventory directly from a Publisher or other entity.

• 3rd party ad server places the ad on the site and sends information back to the Agency/client on how the ad performs.

• Publisher displays the ad on its site, where visitors will see or interact with it.

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What is an Ad Network?• An ad network is a company that buys online advertising space (“inventory”) from websites (“publishers”) and sells that inventory to advertisers in exchange for payment.

• Ad networks aggregate publisher inventory and usually commit to advertisers that the ad will reach a certain # of viewers or a particular audience demographic (e.g., women over age 30 who are in a high income bracket).

• An advertiser may pay the ad network a stated CPM, CPA or CPC.

•There are 2 principle types of ad network revenue models: commission and resell. In the commission model, the ad network receives a commission for placing an ad on a given site (like Google Ad Sense). In the re-sell model, ad networks typically retain 30-50% of what the advertiser pays (i.e., its gross margin), and then ad network distributes the remaining 50-70% to the publisher.

Ad Network Participants:

Publishers Advertisers

• Online content providers who have created a website that attracts Internet users

• “Inventory” refers to blank space on a website that a publisher has decided to make available for advertisers to purchase based on the number of visits/page views by unique users

• Publishers can sell their inventory in three ways:– Direct Sales: Publisher can hire a sales force and

can sell ad space on its website directly. Publishers usually sell their highest quality inventory, like their homepage, at high CPMs

– Ad Network: Publisher can make inventory available and then sell it through an ad network

– Ad Exchange: Publisher can put its remnant (low-quality) inventory on an ad exchange

• Company paying for an advertisement• Most premium brand advertisers typically use an ad

agency to help design a specific advertising campaign based around an individual product or service. Key variables in campaign include:– Budgeted $ spend– Target audience– Performance goals including reach and audience

engagement

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Ad Network – Sample Transaction

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Coach designs a new purse, plans ad campaign-Wants to target women 18-35 in top income bracket-Allocates $20 million to ad budget, with $5m online-Plans a $3m campaign directly with publisher, but wants to spend remaining $2 million through an ad network

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Coach asks ad networks for proposals-Coach submits RFPs for a $2 million campaign to 5 ad networks, including Specific- Specific examines its publisher relationships to find an audience of women 18-35 in top income bracket

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Coach agrees to Specific proposal-Specific proposes price (CPM) and reach (# of eyeballs) targets for campaign and proposed mix of standard, contextual and behavioral targeting-Coach commits to spend $2 million over the next two weeks, in return for promised exposure to the targeted audience

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Specific buys inventory from Publishers-Specific contacts The New York Times and other publishers in the Specific Network and offers to pay a price (CPM) for a set of ads from several unnamed high-quality brand advertisers, including Coach

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Ad server puts ads on desired publisher pages-Specific pinpoints a targeted user visiting a site in its network and sends Coach ad to DoubleClick ad server for placement on the desired page-Specific pays DoubleClick a fixed (low) transaction fee per ad impression served

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Specific tracks ad data and reports to Coach -Specific provides detailed reports to Coach with analytics regarding ads served and audience demographics -Coach uses analytics to evaluate ROI on advertising spend

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Coach pays Specific; Specific pays NYT-Specific invoices Coach at conclusion of campaign - NYT invoices Specific monthly based on number of impressions shown on its website-Specific pays out a portion of revenue to NYT and other publishers upon receipt of Coach check (or close to), and keeps the difference

Specific identifies targeted users -Specific tracks individual user behavior across its network through cookies to identify behavioral patterns and demographic information of prospective Coach customers-Contextually analyzes NYT pages to find stories likely to appeal to Coach target audience

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Types of Ad Networks

Type Definition Sample AdvertisersRevenue Structure

Example Networks

Premium

• Sells inventory on premium-content websites to brand advertisers looking to build brand awareness. Publishers and advertisers are brand conscious and only want high quality associations. Network transparency and accountability are important.

• Brand advertisers (e.g., Coke)

• Physical goods/services retailers

• CPM

Performance

• Network goal is to achieve maximum reach for advertiser. Seeks cheap inventory on lower quality publisher sites with the goal of initiating an immediate online transaction or sales lead. Advertisers and publishers typically are less concerned with brand image.

• Performance advertisers (e.g., discount mortgage lenders)

• Digital goods retailers

•CPA

Ad Exchange

• Open and transparent marketplace that facilitates the buying and selling of online advertising. Allows publishers to place content up for auction to highest bidding advertiser or ad network in real-time.

• Performance advertisers (e.g., discount mortgage lenders)

• CPM, CPA

Portal

• Large traffic aggregators that sell inventory on their own published content and across 3rd party websites. Can leverage their large search and audience data to provide audience targeting solutions to advertisers.

• Brand advertisers (e.g., Coke)

• Performance advertisers (e.g., discount mortgage lenders)

• CPM, CPA, CPC (search)

Note: A “Vertical Ad Network” can fit into any of these categories, but is focused exclusively on one particular industry vertical, such as “Healthcare” or “Automobiles”

Ad Networks can be generally segmented into four main categories