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October 22, 2008

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David,

Wow, so detailed. Did you sit down and transcribe Harrison's entire speech?

The part that he didn't have time to talk about was how the proprietary ad server works-- it takes advantage of the profile data which Facebook/Bebo/Myspace pass to applications, then dynamically inserts them into ads. This includes first name, profile picture, and a number of other fields. The result is not only a massive increase in CTR-- from 0.02% to sometimes north of 3%, but also an increase in conversion rate, too. This is due to the trust that comes from marketing through relationships. Users trust their friends who try a product or view an ad, which then leads to viral effects.

The rest of the ad server is standard fare-- frequency capping, the ability to serve text/image/flash creatives, eCPM optimization, scalability to 200MM imps a day, and so forth.

Dennis

Dennis,
I missed a few parts as they weren't clear without the slides. Pretty good presentation and some interesting stuff. No doubt this is relevant advertising and much needed. Will continue to watch you guys and see how you grow. Best wishes!

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