CPAX "Full Transparency: Stories from the CPAX Front Line"

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One of the most popular sessions of our IAB Canada X-Series: RTB event in May 2013. CPAX, the Canadian Premium Ad Exchange, discussed how they formed their alliance and the shared candidly how they operate. Presented by Corby Fine, Senior Director & GM and other participants within CPAX.

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  • [CORBY] 2 minutes
  • [JON] 1 minute
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  • [Philippe] / 10 seconds
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  • [Neil] 2 minutes
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  • [Corby] 3 minutes
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  • CPAX "Full Transparency: Stories from the CPAX Front Line"

    1. 1. So, why CPAX?
    2. 2. Our first year. Spring 2012 Summer / Fall 2012 Winter 2013
    3. 3. Numbers we like. CPAX ecosystem: +24B CDN impressions / month (A.N.) +1M server calls a second (global) +200 CPAX bidders connected +100% growth monthly impressions +130% growth impressions won +225% growth in monthly revenue (10% French) +50% of spend to date driven by Canadian Agency Trading Desks
    4. 4. An Overview Of The RTB Business In Canada Total online ad spending along with display spending is growing at a CAGR of approximately 7.5% into 2016, with display retaining its 32% share of online ad spending. Sizing Of The RTBmarket! the Business In Canada An Overview Canada: RTB Digital Display Ad Spending 2011-2016 (millions $C) Total online ad spending along with display spending is growing at a CAGR of approximately 2011 2012 2013 2014 2015 2016 CAGR 7.5% into 2016, with display retaining its 32% share of online ad spending. Total Spending Online* 2593 2904 3180 3446 3744 4006 7.5% Total Display Spending* % of Total Online that is Display 840 32% 944 33% 1025 32% 1284 32% 7.3% Canada RTB Display Spending % of Spending Online* TotalDisplay that is RTB % growth in total rtb Total Display Spending* 15 2011 2% 2593 191% 840 302012 3%2904 94%944 % of Total Online that is Display Growth of Display less RTB $ Canada RTB Display Spending % growth Spending Online % of DisplayTotal Display % growth in that is RTB % growth Display less RTB % growth in total rtb 32% 825 15 2% 191% 33% 915 12% 30 12%3% 94% 11% 53 2013 82 2014 117 2015 155 5% 3180 7% 3446 10% 3744 12% 81%1025 54% 1114 43% 1204 32% 32% 32% 32% 971 1032 1086 1130 10% 53 8% 82 9% 117 7% 5% 9% 9% 7% 8% 10% 7% 6% 81% 6% 54% 5% 43% 4% 47.1% 2016 37.1% 4006 1284 32% 5.4% 155 12% 32% Canada: RTB Digital Display Ad Spending 2011-2016 1114 32% 1204 32% (millions $C) CAGR 7.5% 7.3% 47.1% 37.1% *Converted to Display of 1.008 CDN Sources: eMarketer - Oct., Dec., 2012 Growth of CDN at rateless RTB $/ USD 825 915 971 1032 1086 1130 5.4% % growth Spending Online 12% 10% 8% 9% 7% % growth in interesting, 12% 9% 9% 8% 7% What’s  moreTotal Display perhaps, is that starting in 2013 the growth in display spending will % growth Display less RTB 11% 6% 6% 5% 4% increasingly come from RTB. *Converted to CDN at rate of 1.008 CDN / USD Sources: eMarketer - Oct., Dec., 2012 The revenue from direct sales of display at present yield a much higher CPM than the average What’s  more interesting, perhaps, isthen RTB will increasingly encroach in display revenues will RTB CPM brings in. If nothing changes that starting in 2013 the growth on display spending increasingly come from RTB. as advertisers expect more inventories to be made available. At present, it is primarily unsold inventory that is being offered of display systems like CPAX, but going forward than likely The revenue from direct salesthrough RTBat present yield a much higher CPM that isthe average to change. RTB CPM brings in. If nothing changes then RTB will increasingly encroach on display revenues
    5. 5. Total online ad spending along with display spending is growing at a CAGR of approximately 7.5% into 2016, with display retaining its 32% share of online ad spending. An Overview Of The RTB Business In Canada Sizing the market! Canada: RTB Digital Display Ad Spending 2011-2016 (millions $C) Total online ad spending along with display spending is growing at a CAGR of approximately 2011 2012 2013 2014 2015 2016 CAGR 7.5% into 2016, with display retaining its 32% share of online ad spending. Total Spending Online* 2593 2904 3180 3446 3744 4006 7.5% Total Display Spending* % of Total Online that is Display 840 32% 944 33% 1025 32% Canada RTB Display Spending % of Spending Online* TotalDisplay that is RTB % growth in total rtb Total Display Spending* 15 2011 2% 2593 191% 840 302012 3%2904 94%944 % of Total Online that is Display Growth of Display less RTB $ Canada RTB Display Spending % growth Spending Online % of DisplayTotal Display % growth in that is RTB % growth Display less RTB % growth in total rtb 32% 825 15 2% 191% 33% 915 12% 30 12%3% 94% 11% 53 2013 82 2014 5% 3180 7% 3446 81%1025 54% 1114 32% 32% 971 1032 10% 53 8% 82 9% 5% 9% 7% 81% 6% 54% 6% Canada: RTB Digital Display Ad Spending 2011-2016 1114 32% 1204 32% 1284 32% 7.3% (millions $C) 117 2015 155 2016 47.1% 10% 3744 12% 4006 37.1% 43% 1204 32% 1284 32% 32% 1086 1130 5.4% 9% 117 7% 155 8% 10% 7% 12% 5% 43% 4% 32% CAGR 7.5% 7.3% 47.1% 37.1% *Converted to Display of 1.008 CDN Sources: eMarketer - Oct., Dec., 2012 Growth of CDN at rateless RTB $/ USD 825 915 971 1032 1086 1130 5.4% % growth Spending Online 12% 10% 8% 9% 7% % growth in interesting, 12% 9% 9% 8% 7% What’s  moreTotal Display perhaps, is that starting in 2013 the growth in display spending will % growth Display less RTB 11% 6% 6% 5% 4% Too conservative? increasingly come from RTB. 422 CDN Marketing Execs say: *Converted to CDN at rate of 1.008 CDN / USD 13% Sources: eMarketer - Oct., Dec., 2012 46% 38% 22% The revenue from direct sales of display at present yield a much higher CPM than the average What’s  more interesting, perhaps, isthen RTB will increasingly encroach in display revenues will RTB CPM brings in. If nothing changes that starting in 2013 the growth on display spending increasingly come from RTB. have Say RTB is average increase utilize RTB now as advertisers expect more inventories to be made available. At present, it is primarily unsold increased fully integrated in RTB spend in inventory that is being offered of display systems like CPAX,much The revenue from direct salesthrough RTBat present yieldwithin higher CPM that isthe average a but going forward than likely spend 5 years 2013 to change.brings in. If nothing changes then RTB will increasingly encroach on display revenues RTB CPM past year as advertisers expect more inventories to be made available. At present, it is primarily unsold There are too many variables to accurately predict what will happen to the Canadian RTB inventory that is being offered through RTB systems like CPAX, but going forward that is likely marketplace in the next 10 years:
    6. 6. CPAX TECH
    7. 7. Just The Basics • User Visits Website • Publisher has ad inventory to monetize • Advertiser has campaigns to deliver • Ad is served to the site
    8. 8. Pop Quiz 28%
    9. 9. Evolution RTB TECHNOLOGY SSP • User Visits Website DSP • Ad is served to the site
    10. 10. CPAX Set Up (Current) Publisher Ad Servers flow inventory to AppNexus AppNexus custom installation merges 4 seats into one targetable entity Content Channels representing 100+ sites are targetable as single domain e.g. http://WomensLifestyle.cpaxrtb.ca Console and DSP clients are both able to target without a custom connection to AppNexus
    11. 11. CPAX Controls PUBLISHERS: Control their own rates Manage their own block list Add/remove inventory in minutes Can customize opportunities by bidder
    12. 12. Challenges US 3rd party data doesn’t scale in Canada Verifications services (e.g. Pier 39) DSP rate issues DSPs Optimize differently Direct Deals difficult to manage
    13. 13. Solutions More consistent pricing per channel via strategic analysis of bid rates Less domains to target and manage Support for verifications services Collaboration with DSPs Publisher Direct Options
    14. 14. What’s next? DIRECT GUARANTEED PREFERRED (RTB or DIRECT) OPEN (RTB)
    15. 15. D-A-T-A Publishers are building segments $ audiences CPAX offers aggregate data opportunities Publishers have different specializations In aggregate, no audience is left out
    16. 16. Retargeting Publishers within CPAX maintain the ability to manage retargeting campaigns within the collective with preferred pricing on media Costs Fully transparent EXCHANGE CPAX NETWORK Same safe, premium brands Data from one publisher, mixed with inventory from the others SITE
    17. 17. More Info: CPAXRTB.ca COMING SOON: Mobile & Audio Inventory!

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