20130711 - Real-Time-Bidding - Rubicon Project - Jay Stevens

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REAL TIME BIDDING
Echtzeitauktionen von digitalen Werbeplätzen sind im Vormarsch. Das schafft marktgerechte Preise und reduziert den Aufwand für alle Beteiligten, meinen die Anbieter von Real Time Bidding-Plattformen. Real Time Bidding ruiniert die Preise und entwertet den Content, meinen Publisher. Wie mit dem Echtzeiteinkauf richtig umzugehen ist. Ist er Segen, Fluch oder beides?

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  • Add generic speaking points here…ABC…eBay….Zynga…
  • Esiste dal 2006 – uffici LA, SF, NY, CH, UK, FR, DE, IT, AU6.5 b imps mese / 2 trilioni di bids1 comscore reach in Usa6xnasdaq40x visa2x amazon cloud100 dsp400 ad network140k adv
  • With a standard auction, a bid request goes out [Click] to more than 20 DSP’s for a particular user and impression. For example, 2 of those DSP’s return bids for each of their clients, [Click] one being for NIKE for $4.17 and another for Vodafone at $3.25.When those bids are returned [Click], they are compared [Click] against what might be the highest paying ad network tag and a mini auction ensues. [Click] The highest bid is from Nike, therefore Nike wins [Click] the impression at the 2nd highest price $3.25 per thousand. [Click]Within this standard auction a publisher has all non guaranteed inventory competing within an open marketplace to be monetized for the highest possible yield.
  • Reiterate here the granular controls available in RTB.
  • The biggest change in agency make-up of the last 20 years, and all in the last 2 years.Xaxis has around 35 staff in the UK…
  • Field this question to the audience and wait for their response… The question is deliberately jargon-y…
  • It’s Excel. And what about the cutting edge, best-in-breed hardware backing it up? Can anyone guess?
  • This research from a company called NextMark puts this into stark relief – showing that the average order process takes 12 pairs of hands and around 50 processes.This massively laborious and inefficient process is the direct result of publisher business’ reliance on the fax and the spreadsheet.
  • I am sure many of you have seen the triangles before.. We love our inventory pyramids at Rubicon! Due to the increased targeting and subsequent reduction in media waste, RTB generally delivers rates higher than publishers previously yielded from Ad networks
  • Private Marketplaces today sit as a layer between premium and what remnant (horrible name anyway!) The reason for this is they blur the line between the two..
  • Joanna O’Connell at Forester has written about our space for many years and now predicts a bifurcated future where the market is split between ‘automated’ and ‘custom’ buys. In this future, any standard format can be traded programmatically. This doesn’t mean the ‘sell’ goes away, just that the delivery process and workflow is minimised. It also allows publishers to focus on something that they have as a competitive asset against the likes of Facebook and Google…
  • 20130711 - Real-Time-Bidding - Rubicon Project - Jay Stevens

    1. 1. 1 Werbeplanung July 11, 2013 Jay Stevens, GM & SVP International @jayrstevens THE TRUTH ABOUT RTB & PRIVATE MARKETPLACES
    2. 2. 2 PREMIUM PUBLISHERS TRUST RUBICON PROJECT
    3. 3. 3 GLOBAL SCALE Los Angeles Seattle Atlanta New York London Paris Hamburg Sydney San Francisco Las Vegas Salt Lake City Phoenix Alabama Offices Remote People Los Angeles Corporate Headquarters HR, 200+ employees France Publisher Development Account Management Germany Publisher Development Account Management Australia Publisher Development Account Management United Kingdom EU HQ Publisher Development Account Management Milan Italy Publisher Development Account Management
    4. 4. 4 RUBICON PROJECT IMPRESSIONS IN EUROPE 50+ billion Per month 14B 11B 5B 2.6B 4.5b 0.7B 2B 2B 1B 0.5B 0.5B 1B 1B 2.2B 1B 1B 2.4B
    5. 5. 5 WHAT IS RTB & HOW DOES IT WORK?
    6. 6. 6 HOW RTB WORKS RTB bid system $3.25 2nd highest bid (“charge price”) is accepted ad call $3.25 - A 2nd price auction gives the highest paying bidder the ad call at the 2nd highest price - Publishers have complete control over who is allowed to bid non-RTB demand sources On behalf of: $4.17 On behalf of: $0.83 $2.09 $0.25 $1.16 $4.17 6
    7. 7. 7 RTB – BENEFITS FOR BOTH BUYERS & SELLERS MORE LESS Efficiency Work on manual, repetitive tasks Speed Human error Margins Fax Insight Excel Revenues 20-30% operational costs = more time to focus on high value creative partnerships
    8. 8. 8 RTB = THE PROTOCOL FOR ONLINE AD TRADING • Transparent, industry-agreed standard shared by all operators in the market • Like HTML is for the web • Authorised and governed by IAB • Granular controls to protect direct sales
    9. 9. 9 RISE OF THE AGENCY TRADING DESK
    10. 10. 10 THE PROBLEM RTB IS AIMING TO SOLVE
    11. 11. 11 WHICH TOOL IS POWERING 80% OF DIGITAL SALES?
    12. 12. 12 EXCEL http://www.nextmark.com/2013/03/what-we-love-hate-and-desire-in-our-digital-media-jobs// by NextMark
    13. 13. 13 RESULT: THE DIRECT MEDIA BUY IS HIGHLY INEFFICIENT
    14. 14. 14 SOLUTION: AUTOMATION AT SCALE
    15. 15. 15 FINANCE TRAVEL RETAIL ADVERTISING Premium NEXT Mid Market Remnant 2007 - 2012 AUTOMATION NOW THIS HAS HAPPENED BEFORE
    16. 16. 16 WHAT IS A PRIVATE MARKETPLACE?
    17. 17. 17 DEFINITION & BENEFITS OF PRIVATE MARKETPLACES DEFINITION: A direct deal between an individual buyer and a publisher, executed through the RTB protocol. BENEFITS: o Introduce new advertisers o Reduce the cost of managing performance advertisers o Leverage strength in creative solutions to take a larger share of display o Capture spend from existing advertisers without causing channel conflict o Leverage existing trading agreements for preferential pricing o TIP: Use the Bid Landscape Report as a ‘feedback loop’ for new advertisers & PMPs
    18. 18. 18 RTB IN THE INVENTORY STACK CPM Class 2 Non-Guaranteed Class 1 Premium Premium RTB Networks & Exchanges
    19. 19. 19 PRIVATE MARKETPLACES BLURRING THE LINE Standard RTB First Right/Private Premium Preferred (Floor Override) GuaranteedNon-Guaranteed Premium RTB Networks & Exchanges
    20. 20. 20
    21. 21. 21 FUTURE OF THE AGENCY?
    22. 22. 22 GROWTH OF PRIVATE MARKETPLACE DEALS
    23. 23. 23 A VISION SHARED ‘Anything that can be transacted automatically will be’ Katie Eyton, Executive Director, Digital, Manning Gottlieb OMD ‘Over the next three to five years, you will see that the majority of digital advertising is being traded through programmatic systems’ Brian Lesser, CEO, Xaxis ‘Private marketplaces are another step towards what could be the majority of digital ad spend going through platforms’ Marco Bertozzi, MD EMEA, VivaKi ‘All ads will be traded programmatically within five years.’ Jamie Labate, MD of Advertising, Dennis Publishing & Chair of UK Association of Online Publishers Commercial Committee
    24. 24. 24 RTB – FEARS & SOLUTIONS FEAR SOLUTION Channel Conflict Granular Controls in RTB CPMs not as High as Direct Sales CPMs in Private Marketplaces as High & Higher, With Overhead Costs Removed Loss of Jobs New Roles Created: Among them, Analysts & Yield Managers Lack of Skills Training & Guidance Provided by Consultative Tech Partner
    25. 25. 25 jay@rubiconproject.com @jayrstevens Thank You

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