Automating Advertising

Transcription

1 Leading the Automation of Advertising Automating Advertising Luke Fenney VP, Seller Cloud - International

2 Advertising is a business driven by brilliant and creative people. Rubicon Project exists to automate the buying and selling of advertising so the people in advertising can get back to being brilliant and creative.

3 Automation Drives Better Performance & Higher Yield Awareness Guaranteed Consideration Engagement Non-Guaranteed Conversion

4 Automation Drives Better Performance & Higher Yield Awareness Guaranteed Consideration Private Marketplaces Engagement Non-Guaranteed Conversion

5 Automation Drives Better Performance & Higher Yield Bespoke Awareness Automated Guaranteed Consideration Private Marketplaces Engagement Non-Guaranteed Conversion

6 Leading the Automation of Advertising Why Automation?

7 In the 1960s, Advertising was Broadcast 1 Ad for Family of Five Device Ad Blasted to Millions of People Planned MONTHS In Advance

8 Today, We Experience 1000s of Ads per Day. Real-Time is Necessary. 5 Ads for Family of Five Devices Individually Targeted Ads Delivered in REAL-TIME

9 How Automation Evolves AUTOMATION (FINANCE) (TRAVEL) (RETAIL) (ADVERTISING) High Value Inventory $$$$ PREMIUM ORDERS Mid Market $$ Low Value Inventory $ REMNANT AUCTIONS

10 Automating Advertising What if you could make advertising as easy to buy as booking a flight or buying stock?

11 Advertising 1.0: Powered by Excel Spreadsheets SELLERS Call potential buyers Setup meeting Check inventory avails Negotiate price Fax insertion order Receive campaign flight in excel Receive ad creatives Setup campaign in ad server Test campaign Get adjustments from buyer Adjust campaign settings Send invoices Reconcile adjustments Follow up on collections Repeat BUYERS Research sites to buy Call the seller Setup meeting Assess opportunity Negotiate price Fax insertion order Create campaign flight in excel excel file & creatives Test campaign Login to get reports Adjust campaign settings Receive invoice Reconcile adjustments Send check Repeat

12 Advertising 2.0: Powered by Science and Scale SELLERS 4.7 Trillion+ Impressions Per Year (U.S.) 40 Billion+ Web Pages 2.6 Billion Global Internet Users 1.4 Billion Smartphones Worldwide 268 Million Tablets Worldwide Brand Security Concerns Fragmented Buyer and Seller Base Lack of Standardized Ad Formats INVENTORY IS PERISHABLE (in 80 milliseconds) Complex Impression Level Matching Large Multivariate Data Sets Highly Unpredictable Traffic Volumes BUYERS $60 Billion+ Display, Mobile, Video Digital Ad Spend Per Year (Global, 2014)* Fortune 500 Advertisers Agency Trading Desks Demand Side Platforms (DSPs) Ad Networks Self-Serve Advertisers Agencies 1 Million+ Other Advertisers Note: Per PwC Entertainment and Media Outlook

13 Leading the Automation of Advertising The Rise of Real Time Bidding

14 Benefits of Real Time Bidding SELLERS Instant access to millions of dollars spend from thousands of advertisers Algorithmic pricing of inventory Increased transparency into who is buying your inventory Reduced costs of sale BUYERS Enhanced targeting of audiences Improved Reach Global frequency capping Increased control of delivery Improved Performance Reduced Wastage

15 Magna State of Programmatic Report 2014 $115m RTB spend in Sweden in Increasing to almost $300m by Currently at 17% share of spend in 2014 and expected to more than double to 36% by 2018.

16 Leading the Automation of Advertising Private Marketplace Deals

17 How it Works : Private Marketplaces Create premium inventory packages Publish to all major Media Agencies, Agency Trading Desks and DSPs/Managed Services at once Negotiate directly with the Buyer within Orders Deal ID powers the transaction between buyer and seller

18 Opportunities for Buyers Premium Performance High Impact Formats Exclusivity Ease of Use/ Efficiency Transparency

19 Leading the Automation of Advertising What s Next? Automated Guaranteed

20 Largest Market is Underserved Awareness Consideration Engagement Conversion Automated Guaranteed Programmatic Premium Auction Auction $29B* $6B* Repurchase Intent * [Source: IDC "Real-Time Bidding In the US & Worldwide, ]

21 "Digital buying of media is done by machines, as if you're standing on the floor of the NASDAQ as opposed to traditional media shop. I hold the long-term belief that eventually traditional media, or a lot of traditional media, will get purchased that way. John Wren, Omnicom CEO Speaking in July 2013

22 The big spenders are changing the way they spend

23 Automating High Impact Ads with the Most Premium Buyers

24 Leading the Automation of Advertising Why Automated Guaranteed?

25 Current Inefficiencies Today, more than half of those surveyed spend at least 20% of their time manually processing digital advertising transactions. On average, what proportion of the day is spent by employees manually handling coordination and execution of deals across all platforms and services for automated buying and selling? 31.0% 29.6% 15.8% 10.3% 7.4% 5.9% 0 percent 1%-20% 21%-40% 41%-60% 61%-80% 81%-100%

26 Current Systems are Fragmented The majority (76%) of buyers today uses multiple different systems to plan and execute a buy, causing significant inefficiencies and driving up costs. How many different systems ( , Excel, planning, DSPs, ad Servers, billing systems, DMPs, etc.) do you log into to manage a GUARANTEED buy?

27 Automated Guaranteed Systems are Limited Respondents don t believe a guaranteed automation offering currently exists the marketplace that best serves their needs. 33.7% What percentage of your GUARANTEED orders are transacted in an automated (programmatic) fashion? 25.5% 13.5% 7.1% 7.5% 3.7% 3.0% 3.0% 0.7% 1.5% 0.7% 0 percent 1% - 10% 11% - 20% 21% - 30% 31% - 40% 41% - 50% 51% - 60% 61% - 70% 71% - 80% 81% - 90% 91% - 100%

28 Direct Order Automation is in Demand Nearly 9 out of 10 surveyed believe the marketplace needs a direct order automation platform to eliminate inefficiencies, reduce costs and increase overall return on investment. How strong is the industry s demand for an intuitive and easy-to-use platform that includes end-to-end services (Discovery, Packaging, Negotiation, Execution, Insights/Optimization)? Somewhat strong 20% Not at all strong 3% Not very strong 9% Very strong 40% Strong 29%

29 Rubicon Project Acquires isocket & Shiny Ads

30 Leading the Automation of Advertising Thank