rtb: the global tool, the local solution - internet...
TRANSCRIPT
Internet Advertising Conference – April 25, 2013
RTB: The Global Tool, The Local Solution
Farzad Khorsandjamal, Commercial Director, EMEA
Ad Tech: A Confusing, Fragmented Space
Denotes acquired company Denotes shuttered company © Luma Partners LLC 2013
MA
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PU
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Clarity in the Ad Tech Landscape
Premium
$5–$100
$2-$5
Publishers Advertisers
Ad exchanges
Supply side
ad server
Data
exchanges
SSP DCO
DSP
Trading
desks
Demand side
ad server
Agencies
Measurement
/ analytics
<$2
M I D Open
AdStream
Data
suppliers
2 Indirect
1 Direct
Ad
verification
L
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T
A
I
L
[DFP]
[DFA]
Ad networks
Targeting
2000-2003 2005 2006 2007 2008 2009-2013
Early days
Video
AdServers
Ad Networks
Ad Operations
Digital Agencies
Analytics
Ad Exchanges
Vertical Ad Networks
Publisher Tools
Yield Optimizers
Creative Optimization
Data Ecosystem
DMP
DSP/SSP
Trading Desks
RTB
Video
Mobile
OpenX Recent News
• 265 employees
• Global offices: in Los Angeles (HQ),
New York, London, and Tokyo
• Major infrastructure investment
(eg. disaster recovery)
Partners
2012 Key Metrics
• 3 Trillion total ad transactions
• 250+ Billion monthly ad transactions
• 12+ Billion daily bids (buyers)
• $150M+ revenue
• Profitable
Purchase Investor Accolades
External Perspective 2 (Luma Partners)
OpenX well positioned for the Coming Convergence
How Programmatic Currently Works
Display Used To Be Sold Very Differently
Guaranteed
Non-Guaranteed Guaranteed
Non-Guaranteed
How Do Publishers Sell? As Predictably
20% of the inventory… …drives 80% of the revenue
Programmatic Can Solve Publisher Pain Points
6%
25%
36%
52%
59%
60%
68%
None of the above
Ad quality review
Price Negotiation
Trafficking
Optimization
Billing/Reconciliation
Insertion order workflow
What elements of the traditional direct sales process do you think can be
replaced programmatically?
Q:
Does Programmatic Benefit Publishers and Buyers Equally?
25%
30%
45%
Yes
Don't know
No
Publishers
38%
44%
18%
Yes
Don't know
No
Buyers
In its current state, does programmatic selling benefit buyers and sellers equally?
If no, who benefits more and why?
Q:
Does Programmatic Benefit Both Sides Equally?
If not (benefit equally), why not?
• “Benefits buyers more, because it allows them to use their 1st-party data to
identify valuable audience and buy it cheaply -- because the seller does not
know the value.”
• “It benefits buyers. Not because it can't benefit sellers, but because sellers just
haven't figured out how to use it to their benefit yet…”
• “The sell side still doesn't have the insight, controls and automation to really
optimize yield and manage an integrated direct/indirect strategy.”
Majority of Publishers Saw Revenue Increase, Will Trade Even More in the Year Ahead
Q:
Revenue: 12 Month Period
37%
No Change
55%
Up by 21%
8% Down by 19%
Inventory: The Year Ahead
21%
Will fall 19%
58%
Will rise 25%
21%
No Change
How has programmatic selling affected your total
revenue in the last 12 months vs. the year previous?
Q: Given your experience with programmatic selling, how much
more or less of your digital ad inventory do you anticipate will be
sold programmatically in the coming year…?
The advantage for the Czech Republic market:
Programmatic Premium
Online Advertising Performance
Programmatic Premium: What is it?
Programmatic Will
Become Race to the Top
If It’s Not Programmatic
Premium, Then What Is It?
The Evolution of
‘Programmatic Buying Into
‘Programmatic Premium’
Programmatic Premium
Isn’t Just About
Efficiency
Programmatic
Premium Is Not About
Bidding
Paths to Programmatic
Premium, Part 1: The
Meadow Beyond RTB
Premium Pushing The
Case For Programmatic
Buying
Why 2013 Will Be the
Year of Programmatic
Premium Guaranteed
OpenX Defines “Programmatic Premium”
Direct relationships between buyers and sellers facilitated through
programmatic (automated) means. The two programmatic elements
are:
• Automated discovery, negotiation and workflow
• Agreed-upon rules ensure brand safe environments through
ad verification partner govern the inventory that’s purchased
‘Premium’ is in the eye of the beholder.
To Contribute More Premium Inventory, Publishers Want
Control Over Pricing, Relationships
4%
47%
47%
54%
54%
66%
67%
75%
None of the Above
Maintain Data Security
White List Buyers
Predictable Volume/Revenue Guarantees
Set Different Terms For Buyers
Control Ad Quality/Brand Safety
Maintain Direct Relationships
Control CPM/Pricing
What would lead you to sell more premium inventory programmatically? Q:
Buyers Want More Data and New Inventory
29%
39%
57%
67%
68%
More Easily Negotiate Direct Buys
Maintain or Expand Direct Buying Relationships
Preferred Access to Inventory ("First Look")
Exposure to Inventory Not Currently Available
More Data to Inform Bids
What would lead you to buy more premium inventory programmatically? Q:
What do you need
to execute programmatically?
Programmatic Requires the Right Platform
19%
81%
No
Yes
Does your ad server integrate
exchange capabilities?
5%
33%
62%
Less likely
No impact
More likely
If yes, are you more or less likely to
engage in programmatic selling?
29%
35%
35%
Not at all likely
Somewhat likely
Highly likely
If no, will you convert within
the next 12 months?
Do you use an ad server…that has exchange capabilities integrated into the platform?
If you answered “yes” are you more or less likely to engage…? If you answered “no”
how likely are you to convert to an ad sever that accommodates programmatic…?
Q:
How does OpenX address this?
The First Integrated Online Ad Platform
The OpenX Mission
Maximize ad revenue for digital media companies on any connected screen
OpenX products are available a la carte
or as a fully integrated solution
