Presented by Chip Hall, Head of Buyer Development for DoubleClick Ad Exchange, Google

July 18, 2011

5 Buying Trends Every Ad Intermediary Should Know

Display spending is on the rise

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“Display advertising can be a $200B industry in less than 10 years.” Eric Schmidt,Executive Chairman, GoogleAdWeek

An exciting time for display advertising

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$15.9B in 2014

$200B

$10.2B in 2010

Source: eMarketer, Nov. 2010

Audience buying will

prevail

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Moving from websites as a proxy for audience…

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Reach X% ofWomen 25-34

… to connecting with audiences precisely with data

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Demographics: 25-34 year old woman

In-market: highly likely to buy a luxury vehicle in the next 6 months

Interests: food and restaurants

Offline: attends country music

concerts

83%of ad intermediaries use audience targeting in their media buying

Source: Digiday and Google, Real-Time Display Advertising State of the Industry, February 23, 2011

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Some intermediaries are doing more with audience targeting than others

Source: Digiday and Google, Real-Time Display Advertising State of the Industry, February 23, 2011, total survey respondents n=317, buying intermediary respondents n=106, question respondents n=58

Real-time bidding (RTB)

volume will increase

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What is real-time bidding? Two distinct layers of technology

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“Pipes”Have a RTB API

“Brains”Have a real-time bidder

Ad exchanges

Sell-side platforms (SSPs)

Ad networks

Demand-side platforms (DSPs)

Trading desks

Other media buyingintermediaries

Real-time bidding is supported by a vibrant ecosystem of companies

76% of intermediaries plan to increase RTB volume in 2011: some more bullish than others

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Source: Digiday and Google, Real-Time Display Advertising State of the Industry, February 23, 2011, total survey respondents n=317, buying intermediary respondents n=106, question respondents n=58

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RTB volume trend on DoubleClick Ad Exchange

6.4x

impressions purchased in 1H 2011 versus 1H 2010

Source: Internal Google data based on DoubleClick Ad Exchange impressions purchased via RTB, not including inventory won by AdWords. January 2010 through June 2011.

More formats will be bought

via RTB

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Biggest Opportunity in Rich Media, Dynamic and In-Stream Formats

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Source: Digiday and Google, Real-Time Display Advertising State of the Industry, February 23, 2011, total survey respondents n=317, buying intermediary respondents n=106, question respondents n=53

Rich Media and In-Stream

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BrandResults

Sight, sound and motion

Scale, reach and audience

Dynamic

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Use dynamic creative when no one ad will be the perfect ad. Instead, have many ads, perfected for each impression

Handshake deals will be

filled via RTB

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Mismatched Expectations?

Direct Sales

Will increase the most this year

79%of respondents

Exchange / SSP / Network

Will increase the most this year

14%of respondents

Private Exchange

Will increase the most this year

7%of respondents

Pu

bli

she

rsNetworks & Exchanges

Will increase the most this year

30%of respondents

Private Exchange

Will increase the most this year

18%of respondents

Direct Publisher Deal

Will increase the most this year

14%of respondents

Bu

yers

Source: Digiday and Google, Digital Ad Buyer – Seller Marketplace, June 2011, total survey respondents n=433

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Direct deal making between buyers and sellers will continue to thrive, even as RTB volume rises

DoubleClick Ad Exchange: Great inventory plus…

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Three Ways to Place a Buy

Flexible Deal Types

Fixed Price,Pre-Auction

Private BiddedBrandedAnonymous

Auction Direct Deals

Multiple Formats

UIRTB API

Rich MediaDisplay Video (beta)

Mobile (coming soon)

API

Among exchange buyers, the largest use is with DoubleClick Ad Exchange

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Source: “Ad Exchange Study” by The Center for Media Research. Conducted with Dynamic Logic. June 2011. Total survey respondents n=331. Question respondents n=69

AdBrite AdECN (Microsoft)

ContextWeb DoubleClick Ad Exchange (Google)

Right Media (Yahoo!)

Other0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

26% 26%23%

83%

49%

13%

Which exchanges have you used?

Ad Exchange Used

Re

sp

on

se

%

Thank You.google.com/watchthisspace

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