Adconion Direct "RTB: The Future of Cross Channel"

RTB: The Future of Cross Channel

Robin Zieme – VP Global Media Tina Barnes – VP, Managing Director Adconion Canada

300 YEARS OF MEDIA BUYING

1700s • Newspaper and magazine media buying • First direct sales

LAST 150 YEARS OF MEDIA BUYING….

1880s-1930s

• First agency buying from print and then radio

1950s

• Television Spots • First TV upfronts focused

on new car models

1990s

• Digital media buying begins

ANALYTICS

MOBILE DEVICES

AD SERVERS

AD NETWORKS HORIZONTAL

DATA SUPPLIERS

VERTICAL CUSTOM

AD

OPERATORS

DMPs & DATA

AGGREGATORS

AD EXCHANGES

TARGETED

AD NETWORKS

CREATIVE OPTIMIZATIO

N

YIELD OPTIMIZERS

TRADING DESKS

RETARGETIN

G

VIDEO

VERIFICATION

DSP

MEDIA PLANNING

SHARING DATA

SOCIAL TOOLS

TABLETS

CONNECTED DEVICES

LAST 10 YEARS OF MEDIA BUYING….

10 YEARS OF AD EXCHANGES

2000-2002

• Overture / Goto Patent • Search marketplace • $2.9BB for Engage • $1.6BB for Overture

2003-2004

• Google launches Adsense • SEMs begin

programmatic bidding • APIs

2005-2006

• Exchanges created - Manual Bidding

• Display

2008-2009

• RTB bidding starts on SDC/FOX and shortly thereafter – through appnexus

SEARCH /CLICK DISPLAY /IMPRESSION

AD EX / Bidding 1.0

RTB / THE USER

THE LAST 3 YEARS! CURRENT STATE OF EXCHANGES

2010-2012 Exchanges broken into 3 CATEGORIES

AGENCIES NEED NEW BUYING METRICS IN A WORLD OF RTB

WHAT IS SO DIFFERENT ABOUT EXCHANGE BUYING?

- 500

+ 1 million

WHY CAN RTB BE SO EFFECTIVE?

125 SITES

500 SITES

250,000 SITES

1 MILLION SITES

TOTAL CONVERSIONS TOTAL CONVERSIONS

DIRECT TO PUBLISHERS

THE EVOLUTION IS NOT LINEAR!

Sites Homepages Sponsorships

EXCHANGES & AD NETWORKS Audience Demos Psychos Behaviors Re-Targeting Cookies

RTB ON EXCHANGES Users Retargeting Cookies

ALL THREE SHOULD BE

USED IN PARALLEL BY

BUYERS

Source [2011 AMG industry estimates]

2012 ESTIMATED STATS FOR EXCHANGES BUYING & RTB

TOTAL

[3.9% GROWTH]

$160 BB

RTB TODAY: 0.5% of advertising is RTB enabled, bought and sold

$800 MM [ E S T I M A T E ]

RTB

[ 1 0 % G R O W T H ]

$26 BB ONLINE

Source: Emarketer, Forrester, AMG Industry Interviews

Average Estimated RTB CPM

2009 2012 2015

$0.33

$1.35

$2.70?

$3.00 $2.00 $1.00

$1.4 BB [ 5 0 % G R O W T H ]

EXCHANGES

WHAT DO YOU NEED TO BE GLOBAL PLAYER IN RTB?

COOKIE SYNCH WITH

EXCHANGE

RECEIVE BID REQUEST

MATCH CAMPAIGN

&PREDICT BID

PLACE BID WIN/LOSE

WRITE BACK DATA UPDATE

MODEL

REPORTING ANALYTICS INSIGHTS

TRACK CLICKS /CONVERSIONS SERVE THE AD!

START HERE!!!

BID Millions of times for Every BLINK!

RTB BIDDING WORKFLOW

IS IT MAD MEN?

…….OR MATH MEN!!

Impact of NOW - A Multi-Screen World

2005

2013

Consumer activity is simultaneous… are we thinking this way?

THE DAY OF THE SINGLE-SCREEN COUCH POTATO IS OVER!

THE NTH SCREEN WILL MAKE EVERYTHING RTB!

CONSUMERS ARE LIVING IN A REAL-TIME WORLD!

650

THANK YOU!!

Tina.barnes@adconiondirect.com