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AppNexus Inc. — Confidential
Better Performance through a better internet
Stefan Kehl, Market Director Nordics, SET, AppNexus
INMA Performance Conference
September 14, 2016
AppNexus Inc. — Confidential
PROGRAMMATICPROGRAMMATICPROGRAMMATICPROGRAMMATIC
Programmatic is an automated and data-driven method to buy digital advertising, usually happening in real-time.
The Benefits of Programmatic advertising
Advertisers
� Better ROIBetter ROIBetter ROIBetter ROI
� Less waste thanks to
better targeting better targeting better targeting better targeting options
� Possibility to use their
own dataown dataown dataown data
� Faster GTMFaster GTMFaster GTMFaster GTM
Users
� Consumer relevancerelevancerelevancerelevance –
ads are personalized and
match the user’s
interests and are
therefore perceived as
useful
Agencies
� Workflow Workflow Workflow Workflow efficiencies
� More controlcontrolcontrolcontrol over
campaigns
� Flexibility and possibility
to react and optimize in optimize in optimize in optimize in
real timereal timereal timereal time
� LearningLearningLearningLearning for future
campaigns
Publishers
� WorkflowWorkflowWorkflowWorkflow efficiencies
� Smaller, specialized specialized specialized specialized
teamsteamsteamsteams
� Cost reductionsreductionsreductionsreductions
� Data Data Data Data focus for publishers
with the right
capabilities
AppNexus Inc. — Confidential
AppNexus Inc. — Confidential
Marketers
ContentProducersConsumers
INNOVATION
Consumers pay for content with their
attention to ads that matter
Monetizing content:the lifeblood of the Internet
Quality content = an educational, entertaining, inspiring Internet
Stop monetizing things that hurt
consumers
Help publishers maximize value
of content
Help advertisers get great results
*Powered by AppNexus
*
ATG
PTG
1 HEADER BIDDING
To help publishers to maximize the value of their content through new technology
AppNexus Inc. — Confidential
AppNexus Inc. — Confidential
‘The ad tech industry is waging a
secret war on Google’
‘The ad tech industry is waging a
secret war on Google’
‘The Rise Of 'Header Bidding' and The End of The Publisher Waterfall’
‘The Rise Of 'Header Bidding' and The End of The Publisher Waterfall’
“Facebook is getting into the biggest trend in ad tech: header bidding”
“Facebook is getting into the biggest trend in ad tech: header bidding”
‘The ad tech industry is waging a
secret war on Google’
‘The Rise Of 'Header Bidding' and The End of The Publisher Waterfall’
“Facebook is getting into the biggest trend in ad tech: header bidding”
“Facebook is getting into the biggest trend in ad tech: header bidding”
“Facebook is getting into the biggest trend in ad tech: header bidding”
TOP 100 70% of the
COMSCOREDOMAINS
In the US are running header bidding
Tom Shields, SVP of Publisher Strategy at AppNexus
WTFis headerbidding?’
AppNexus Inc. — Confidential
Empower publishers to work with multiple exchanges (increase competition and yield) and let them, and direct demand, compete on exact price in real time.
• Header bidding kicks away the waterfalling hierarchy
Header Bidding Benefits
The classical publisher waterfall
AppNexus Inc. — Confidential
Strict waterfall means exchange
can’t compete with guaranteed
NON-GUARANTEEDNON-GUARANTEEDNON-GUARANTEED
EXCHANGEEXCHANGEEXCHANGE
GUARANTEED
Historical Adserver Delivery Model
AppNexus Inc. — Confidential
$5 $5 $5 $5 $5 $5 $5 $5
$7 $1 $6 $3 $6 $2 $1 $2$2 $1 $2
$5 $5 $5 $5 $5
Guaranteed Campaign
Non-Guaranteed Bids
TOTAL MONETIZATION: $30
Delivery with Header Bidding Integration
AppNexus Inc. — Confidential
TOTAL MONETIZATION: $44
$5 $5 $5 $5 $5 $5 $5 $5
$7 $1 $6 $3 $6 $2 $1 $2
Guaranteed Campaign
Non-Guaranteed Bids
$7 $6 $6
$5$5 $5 $5 $5
By eliminating waterfalling, header bidding allows publishers to capture high-priced programmatic demand
How Header Bidding works
AppNexus Inc. — Confidential
$3TOP
RTB BIDRTB bid
$2TOP
RTB BIDRTB bid
PUBLISHER WEBSITE
Real-time bid request
Real-time bid request
$3TOP
RTB BIDRTB bid
$2TOP
RTB BIDRTB bid
Real-time bid request
$5TOP
RTB BIDRTB bid
APLATFORM
BPLATFORM
CAPPNEXUS
Publisher’s ad server weighs programmatic opportunities from many platforms against each other and against guaranteed campaigns simultaneously.
$5TOP
RTB BIDRTB bid
AD SERVER
GUARANTEED CAMPAIGNS
$5
GUARANTEED
Benefits and disadvantages of Header Bidding
PUBLISHERS
ADVERTISERS/BUYERS
DISADVANTAGES BENEFITS
AppNexus Inc. — Confidential
2 IMPROVE CONSUMER EXPERIENCE
Stop monetizing things that hurt consumers
AppNexus Inc. — Confidential
A good consumer experience is at the heart of a better internet
AppNexus Inc. — Confidential
CUSTOMER EXPERIENCE
3 PROGRAMMABLE MARKETING
To help advertisers and agencies to get great results
AppNexus Inc. — Confidential
Programmable Marketing
PA R T N E R E C O S Y S T E M
L E A R N I N G A L G O R I T H M S
R E A L - T I M E D ATA
AppNexus Inc. — Confidential
The unfulfilled
promise of
Programmatic
The Internet of Things
– 34 billion connected
devices by 2020
Personalization
SCENARIO 1
21
With AppNexus Programmable Bidder , a brand can use its own algorithms, data and analytics to compute bids and creative selection in real time.
user product
The algorithm and intelligence can get increasingly more
complicated without adding campaign management work.
user product inventoryuser product inventory geouser product inventory geo time
AppNexus Inc. — Confidential
AppNexus Inc. — Confidential
MARKETERS
CONSUMERS PUBLISHERS
BETTER AD TECH
BETTER AD TECH
BETTER AD TECH
BETTER RESULTS
BETTER MONETIZATION
BETTER CUSTOMER
EXPERIENCE
BETTER INTERNET
AppNexus Inc. - Confidential – Not for Distribution
Thanks!Stefan Kehl, Market Director Nordics, SET