Revealed: One Publisher’s Success in Maximizing Ad Revenue

| ad revenue + ad tech + HomeAway + IAB + inventory + marketplace + partnerships + Undertone

Yesterday the IAB put on yet another great event (IAB Ad Tech Marketplace) here in NYC, packed with insightful content and presentations. There was a ton of discussion surrounding the notion of partnering across the digital ecosystem to realize greater efficiencies, as well as opportunities, from both the advertiser and publisher sides of the house. To shed some light on how publishers can maximize ad revenue, I got on stage with a great partner of ours – HomeAway – to co-present a case study on our work together. It was a great session and unique because Steven Goldberg from HomeAway provided the audience with metrics and insights that are not typically revealed.
And, since Twitter was unfortunately down during our presentation…here are five key takeaways that I am happy to share:

  1. An impressive 50% of HomeAway’s ad revenue is generated from its non-direct ad sales.
  2. Drilling down from there, 65% of its non-direct revenue comes from channel partners like Undertone while 35% is derived from RTB.
  3. Over the past 2 years, HomeAway has reduced the number of channel partners they work with to focus on broadening partnerships with larger, more value-added providers.
  4. Due to the nature of their core business (selling listings to homeowners), HomeAway does not accept hotel advertising on its site. However, hotel and OTA advertising accounts for approx. 80% of all travel spend online (they work with companies like Undertone to reach those users across our network and provide greater value and opportunities for their brand advertisers).
  5. Overall, HomeAway does not shy away from experimentation and partnerships and they have the business results to prove it!

Thanks again to Steven, HomeAway and the IAB!

Eric Franchi

Eric Franchi is co-founder of Undertone and serves as senior vice president of business development, leading the company’s relationships with its most important partners. A respected industry leader, Eric has been featured in publications including Ad Age, Adweek and The Wall Street Journal, and on stages worldwide including IAB MIXX, Advertising Week and Cannes. He has held a place on the board of the Interactive Advertising Bureau (IAB) for several years, helping guide the digital advertising industry through a period of rapid growth and change.

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