automated: explanation for german newspublishers

Presentation: Publisher MarketDate: Q1 2013

Automated Trading: Improve performance of display


Wind of change


Market developments


Revenue model in 2007

Direct sales

Adnetwork


Challenges we saw

• 50% of online adspend goes to Google

• Adnetworks raised and attracted more budgets

• We were too focussed on high CPM / Branding

• Sponsorship, content intergration possibilites are limited


Organisation hold-back


Basic principles

• We needed to go into performance budgets

• We needed to handle “fear of canabalization”

• Close the gap between Premium and performance CPM’s

• Protect day2day operations

• Be flexible on new project/products, increase time2market


We needed to redefine everything

We started to value all our inventory, also the inventory that was never sold;

Yield management is the process of understanding, anticipating and influencing consumer behaviour in order to maximize yield or profits from a fixed, perishable resource (such as advertising inventory).

As a specific, inventory-focused branch of revenue management, yield management involves strategic control of inventory to sell it to the right customer at the right time for the right price. This process can result in price discrimination, where a firm charges customers consuming otherwise identical goods or services a different price for doing so


To make it simple

How can we make more money?


Let’s compare advertising space with…


Yield Management: Starbucks style


Online:

Core principle

We sell the right user

At the right time

To the right advertiser

For the right price


History of Yield Management

Late 1970’s Airline industry

Late 1980’s Hotel industry

Other industries Car rental, Office space, concert tickets, etc


Why did we feel it would work?

Commodity Ad impressions are not that special

Fixed capacity Stable number of impressions day2day

High fixed cost Operational cost are not linked to ad revenue

Time-based demand Month/week/day are all important for advertisers

Segmentable market From site selling to audience selling


We changed the organisation


We invested in optimizing

Yield Optimizing

Direct sales


Results:

• Direct team evolved to “inhouse Adnetwork”

• YTY growth 3 times market average (for 3 years)

• Revenue we optimzed grew 700% (3 years)

• New AdOps team became “optimizers” instead of trafficers

• We have our own automated trading buying platform

• We built a retargeting product


So what’s

NEXTNEXT


We change the organisation


We optimize everything

Yield Optimizing


Basic principles

• Direct team is our TradeDesk at this time

• Agency team focusses on agencies and adnetworks/tradedesk

• We now operate for the whole company

• We focus on advertiser relationships

• We automate sales process

• We support direct deals

• We support rich media

• AdOps and New-AdOps are merged Q1


Our next steps

• We help other publishers– With RFIs/RFPs– Training– We offer technology– Insights– Monetization


The last battle


EU Numbers

• 20B market

• 34% is display – 6.8B market– 400M is video– 135M is mobile– 6.2B is display

• 50% will be automated• Thats 3B


German market (Jan 2013)

78% of 20B Impressons


Who owns display?


Our solution

• Premium publishers co-op

• Already talking to 10+ publishers

• Representing 10B+ impressions per month

• Publishers can sell and buy

• Own technology

• Drive revenue.

• Pilot launch Q1 2013


Interested?

Contact us:

[email protected]

Twitter: @martinvdmeij

automated: explanation for german newspublishers

Business

publisher marketdate

pilot launch q1

b market

history of yield management

right advertiserfor

right userat

right timeto

right pricepresentation