THE PAST, PRESENT, AND FUTURE OF

MEDIA BUYING, EXCHANGES, AND RTB

Created by Ben Fox

[ Follow me on twitter!: @benfoxgo ]

300 YEARS OF MEDIA BUYING

1700s

• Newspaper and magazine media buying

• First direct sales

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

10 YEARS OF MEDIA EXCHANGE BUYING

2000-2002

• Overture / Goto Patent

• Search listings

• $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

• Who/What was the first RTB

bid?

CURRENT STATE OF EXCHANGES

2010-2012 Exchanges broken into 3 CATEGORIES:

Meta Layer Broad Vertical

Provide 5 PRIMARY MEDIA TYPES

DIRECT TO

PUBLISHERS

MEDIA BUYING EVOLUTION

Sites

Homepages

Sponsorships

EXCHANGES &

AD NETWORKS

Audience

Demos

Psychos

Behaviors

RTB ON

EXCHANGES

Users

Retargeting Cookies

TODAY ALL

THREE ARE

USED IN

PARALLEL BY

BUYERS

Source [2011 AMG industry estimates]

2011 ESTIMATED STATS FOR EXCHANGES BUYING & RTB

TOTAL

[3 .9% GROWTH]

$160 BB

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

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

EXCHANGES

$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

AGENCIES NEED NEW BUYING METRICS IN A WORLD OF RTB

WHAT IS SO DIFFERENT ABOUT EXCHANGE BUYING?

MANUAL AND EXCHANGE BUYING – 1+1 = 3!

MANUAL MEDIA BUYING RTB

125

SITES

500

SITES

250,000

SITES

▶ Most conversions

▶ Adjust and optimize (daily/weekly)

▶ Inventory that converts

sometimes unavailable

1

MILLION

SITES

▶ Incremental conversions you might not have gotten

▶ Optimize more quickly (instantly every second)

▶ Diversify your spend

▶ Focus more quickly on higher performing sites

TOTAL CONVERSIONS TOTAL CONVERSIONS

BUSINESS AND TECHNOLOGY CAPITAL INVESTMENT

RTB TECHNICAL WORKFLOW

SLA’sCOMPARISON

Search Feeds // 50ms Display Ads // 500ms RTB // 100ms Blink of an eye // 50ms Video Ads // 1000ms

6 bi l l ion t imes/day for Google US ful l feed

BID MILLIONS OF TIMES FOR EVERY BLINK

THE KEY TO WINNING AT RTB IS YOUR PROFILE STORE

THE NTH SCREEN IS HERE! INFINITE INVENTORY!

CONSUMERS WILL BE LIVING IN A REAL TIME WORLD!

THE FUTURE OF EXCHANGES

EXCHANGE MARKETPLACE

FOLLOW ME!: @benfoxgo

C ON TAC T AD C ON ION M ED IA GR OU P AT: b f o x @ a d c o n i o n . c o m

CREATED BY: Ben Fox

DESIGNED BY: Taryn Linscott, Sina Bruckman

PRODUCED BY: Lindsey Breeden