MOON DSPFUTURE OF PLANETDISPLAY MEDIATrading Guide MOUNT PUBLISHER ADVERTISER LAND
IAB FUTURE OF DISPLAY TRADING GUIDEContentsThe future of Real Time Bidding 1The path to automated brand spend 4Five years time 7Are brands taking enough care to stay safe online? 10Connected TVs to take over the living room in 2013 13The future influence of data in display advertising 19The mobile potential for Real Time Bidding 23
IAB FUTURE OF DISPLAY TRADING GUIDE 1The future of Martin Kelly,Real Time Bidding Co-founder and CEO, Infectious MediaSince its emergence in 2010, Real Time Bidding (RTB) has been oneof the most over-hyped technologies in advertising. I wrote an articleearlier on this year on Exchange Wire where I talked about RTBactually being a huge disappointment and this struck a chord with anumber of advertisers that we’ve spoken with who can’t see what allthe fuss is about. These advertisers are generally seeing RTBas just another line on their usual media plan, shuffling moneyfrom one supplier to another with very little benefit to them.And, this is the main issue with RTB as we enter 2013, wefundamentally don’t know what to do with it yet. We’ve witnessed thecreation of an amazing infrastructure that has the ability to deliverso much and yet to-date has delivered little for advertisers beyondmaking it easier and potentially cheaper to do exactly what they havebeen doing since the late 1990’s when display advertising was born.
2 IAB FUTURE OF DISPLAY TRADING GUIDE So what’s next, what can we expect and what do we need to do? Firstly, education is key, not only for advertisers but also for the people that create and implement campaigns on their behalf. Instead of thinking of RTB as a method of doing the same thing slightly better, we need to look at what the technology enables us to do. To be clear, the endgame is about making the advertising experience, rather than the buying process, better. When we get there we’ll start to see a real shift plus excitement from advertisers. Two technologies stand out for us as areas that are going to be key to facilitate this shift, the widespread adoption of the Data Management Platform (DMP) and dynamic creative technologies. It seems obvious but what makes the real-time space conceptually better is that we can use actual audience data to make buying decisions rather than using panels (TGI, ComScore etc.). This is great in theory but in practice getting data is difficult. Third party data has proved itself unreliable and a red herring. Ultimately the real change, and competitive advantage for the advertiser, comes from unlocking the value of their own first party data. Again, great in theory but in practice it can take up to six months to even get a pixel on an advertisers site! DMP’s are platforms that allow advertisers to take control of their own data assets, storing them somewhere that’s secure and giving the flexibility to analyse and cut segments, and finally linking this to the real-time buying space to action those audiences.
IAB FUTURE OF DISPLAY TRADING GUIDE 3‘What does a real-time advert look like?’ This is a question I was asked recently by a bigadvertiser and it summed up one of the most fundamental current problems we have as anindustry. We have all this amazing technology that allows us to pinpoint our audience and bidsolely for them and yet we generally show them the same ad we show everyone else. This goesback to educating everyone in the industry, we’re so used to not being able to target media buysvery well that we’ve become accustomed to producing creative that has to appeal to millions ofpeople. So when the opportunity comes to target smaller audiences more precisely our existingways of working are not sufficient. Think about search advertising, when the ability was introducedto build ad copy dynamically, the increase in response rates wasdramatic compared to when generic copy was used. When wetarget an audience because they live in Manchester or it’s a sunnyday, or because they have been to our site, then let’s personalisethe creative based on that, the technology is there to do it, it justneeds our planning processes and creative agencies to catch up.There’s been a dramatic shift over the last two and a half years andthere is nobody left denying that RTB/programmatic trading is the future.However, if we’re really going to fulfil the potential on offer then we needto change the most analogue function, how we are thinking about it.
4 IAB FUTURE OF DISPLAY TRADING GUIDE The path to automated brand spend Cost efficiencies Jay Stevens, Vice-President and General From stock exchanges, to car sales on eBay, to the tech that Manager, International – powers the airline trade, you don’t have to look far to see the Rubicon Project automation benefiting a wide range of industries. Many of these solutions start low down the chain (‘remnant’ airplane ticket sales, low cap stocks on the Nasdaq) but are so effective they end up powering it all (Sabre Systems now provides the back-end for the entire travel industry, and eBay Motors is selling cars at a rate of one per minute). In the same way, Real-Time Bidding (RTB) in online display promises to make the execution of ad deals far less convoluted, repetitive and inefficient than was the norm before this trading mechanic gained widespread acceptance in 2011. But the automation we’ve seen so far is really just the start – the first steps to a fully automated future, with a single buying point for multiplatform brand campaigns incorporating mobile, video and social.
IAB FUTURE OF DISPLAY TRADING GUIDE 5When you add in real-time creative and the reach that’s possible across emerging BEEP! BEEP!publisher co-ops, it’s safe to say we’ve only just started to scratch the surface ofwhat might be possible in branded RTB.Back in the present, early signs of RTB beginning to connect with the brand sidecome in the way of agencies describing DR and brand spend as different sidesof the same coin – since the audience understanding gained from DR on RTBchannels can also be used to inform campaigns on the branding side.Add to this the fact that top global brand advertisers from the automotive sector(Ford, Nissan, Toyota) show up regularly already on top 10 lists of RTB buyers.AttributionAnother key factor in the future growth of RTB brand spend is better attribution and morespecifically, looking at audience penetration and viewability of ads rather than just the clicks andconversions which have dominated this largely DR-led area so far.Attribution modelling represents a move away from the traditional ‘last click wins’ mentality, whichhas, some would say, benefitted search engines to the detriment of publishers’ display advertising.The aim is to understand fully the influence of ads across different sites (and platforms), building amore accurate picture of the influence each one has on the consumer.
6 IAB FUTURE OF DISPLAY TRADING GUIDE Online display advertising still lacks solid attribution models, and for RTB to move ‘up the funnel’ (the industry jargon for breaking further into brand campaign budgets) this will be key. Marketers will always have an excuse to plump for TV until we make digital just as straightforward and simple to buy. Since automated channels are more transparent than traditional ad networks, with single buying and selling points allowing true frequency capping and lack of duplication, agencies are starting to be able to use RTB insights to inform campaigns on other platforms. As a result, certain clients are beginning to move away from ‘last click wins all’ to take a broader view on attribution. Through automated campaigns, agencies are effectively learning how to prove the effect of branding earlier in the sales cycle. With larger formats, takeovers and rich media coming to RTB in future, and multi-screen publishers like Sky and Virgin taking the first steps towards integrated cross-platform insights themselves, not to mention fast growing marketer interest in mobile advertising, social media and online video – all of these factors spell one thing: The first steps on the path to brand campaigns shifting to automated channels. We’re not there yet, but we’re most definitely on the way.
IAB FUTURE OF DISPLAY TRADING GUIDE 7Five Years’ Time Gustav Mellentin, CEO, AdformGustav Mellentin looks at why a mixture of accessibility andinnovation lies at the heart of progress for the online displaymarketing industry over the next five years.Online display: a rapidly evolving space that is capturing theimagination of the entire digital marketing industry. Display has beena major player in the digital marketing mix for some years, but itsrole at the forefront of maximising brand presence online hasbeen given a boost through a wave of recent innovation.Advances in rich media have made the spacemore exciting and engaging for consumers, withnew formats offering a clearer approach to interactiveonline ads. Use of automated and programmaticformats have also supported display’s growth,perpetuated by media coverage welcoming thebenefits Real Time Bidding brings.
8 IAB FUTURE OF DISPLAY TRADING GUIDE But there is a current danger that with innovation comes fragmentation, with numerous players producing very specific solutions that optimise display in their own individual way. High numbers of vendors now exist specialising in dynamic creative optimisation, product re-targeting, exchange buying and campaign optimisation. With an increasing volume of products, some have embraced the many technologies available to them and have worked out innovative combinations that produce extremely effective campaigns. However the danger lies with others who are grappling to get their heads around the innovations at their disposal. In line with this, we asked attendees of ad:tech London 2012 what they wanted to see in the next five years – nearly three quarters (73%) said they would hope to use a fully functioning single platform to run all elements of their display marketing campaigns in the next five years. It was therefore hardly surprising that respondents pointed to their annoyance at the current inaccessibility of online display advertising solutions, with 53 per cent of marketers frustrated about having to use multiple platforms to run campaigns. This raises the question of the overall accessibility of the display world. It appears that abbreviations borne out of the innovations coming out of display, are making the industry more difficult to understand to others in the digital marketing community.
IAB FUTURE OF DISPLAY TRADING GUIDE 9Our research found that under a third of marketers (32%) can decipherthe term RTB, despite IDC claims that the real-time bidding market isexpected to be worth around £4 billion in ad spend by 2015 in the U.S.and major markets in Western Europe. The findings also found other keyterms are unfamiliar to digital marketers, with only 26% recognising DSP,18% understanding SSP and only 4% identifying DCO (dynamic creativeoptimisation).Technology and creative thinking should remain at the heart of the industry. But over the nextfive years, the display industry needs to carefully assess how it will make itself as accessible andunderstandable as possible to its digital marketing peers. Where channels such as mobile, videoand social have been the subject of considerable hype in the recent past, they are set to convergeand integrate more and more over the coming years. This will undoubtedly prompt marketers tocall for more consistently accessible solutions to run multichannel campaigns – no matter whichchannel makes up the focus of a particular campaign.A decent first step is to give the industry what it wants – a platform that integrates creative, thirdparty ad serving, planning, real time bidding, dynamic creative optimisation, data management andpath to conversion reporting into a seamless workflow. As the omnichannel approach emerges asan increasingly important part of marketers’ overriding strategies, display should aim to become asstraightforward as it can over the course of the next five years if it is to seamlessly play its part atintegrating with effective brand building campaigns.
10 IAB FUTURE OF DISPLAY TRADING GUIDE Are brands taking enough care to stay safe online? Julia Smith, Independent Consultant, Our clients ask our sales team a lot of questions; Jemm Group Ltd. “Are you giving me value for money?” “What’s my ROI?” “Can you turn this direct response display ad around in a week?”, and the now infamous “How can we make this trend?” Whether the budget is big or small, marketers have a right to ask as many questions as they can about their campaigns, to reassure their bosses and remain confident that their target audience is being reached in the right way at the right time. But I wonder how many clients ask the question “Am I safe?” Perhaps that seems like a strange preoccupation to have in this day and age when markets are mature and advertising is one of the most advanced, revolutionary industries on the planet. But the concept of brand safety is creeping up the agenda, as advertisers and agencies realise that serious steps need to be taken in order to protect their brands, particularly online.
IAB FUTURE OF DISPLAY TRADING GUIDE 11Media planning and buying is now, of course, a far more complex beast. Gone are the days whenyou had a tried and tested broadcast/print/outdoor formula that guaranteed sufficient reach withinchannels as overwhelmingly reliable as a pair of old slippers. But the times have changed, and withthe growth of digital came an increase in new, dynamic, often user-generated content both on andoffline. As engaging and fresh as this content is, it may not always be the best place for a brandto find themselves. On the other hand, for younger, riskier ad campaigns, this could be the perfectplace, but it’s a dilemma that needs to be acknowledged.In fact, at the IAB Engage conference a few years ago, AOL’s president of global advertising andstrategy, Jeff Levick highlighted the need for brands to be much more aware of where their adsare going, and the impact of appearing next to inappropriate content. He said that with the rise ofreality television, advertisers now can’t be so sure they’re placed within the most relevant mediasurroundings. He said that “marketers are steadily running out of places to control their brand”,and referenced a quote from a senior marketer at P&G, who had told him that more than “60% ofnetwork programming will be reality television and I can’t put my brand there”.This presents opportunities for the digital industry. Behind the scenes for some years now we’vebeen taking great strides in ensuring that brands no longer see the internet as a veritable ‘wildwest’, or a vast incomprehensible space unfettered by moral codes. And that’s where DTSG, theDigital Trading Standards Group, has stepped in to ensure that advertisers and agencies have nouncertainty about how safe their ads are online.
12 IAB FUTURE OF DISPLAY TRADING GUIDE The DTSG is a cross-industry group that has drafted the Good Practice Principles. Their aim is to significantly reduce the risk of the misplacement of display advertising across the digital trading ecosystem. But whilst best practice guidelines can be put into place and codes of conduct launched to police the activities of organisations online, as an industry we should always strive to achieve ’100% safe’. As technology develops, so too should our business models and our methods of reassuring advertisers that their ads are in safe hands. For example, we have seen significant growth of real-time services which monitor where ads are appearing next to content (based on keywords) to further reduce the risk of inappropriate placement. We’ve all been sent by our friends the screen grabs where ads for airlines appear next to news stories about plane crashes, and marketing messages for junk food are positioned on discussion threads dedicated to obesity. Such real-time ‘content safe’ services will greatly reduce these risks, and serve to reinforce the integrity of our medium even further. So brands have a responsibility to ask their agencies “Am I safe?” They need to be confident that their ads are not just getting to the right people and evoking the right response, but they’re not surrounded by inappropriate content that could damage their reputation. They should be asking the question, and then letting the experts do the rest, because brand safety is incredibly easy to achieve, but if lost can prove incredibly difficult to retrieve.
IAB FUTURE OF DISPLAY TRADING GUIDE 13Connected TVsto take over the living room in 2013Shirlene Chandrapal discusses the changing Shirlene Chandrapal,television landscape and how Connected TV VP Connected TV,is affecting user behaviour. smartclipIn the last few years we have seen the advent andgrowth of the Connected TV market, and withresearch and consulting firms predicting a possible1.6 billion devices in use by 2014 the future forthe Connected TV looks very bright heading into2013. The increased consumer engagementand targeting capabilities this channel offers toadvertisers means it is important they are ready totake full advantage of the opportunity this mediumpresents. As this more connected world continuesto become more pervasive and take over the livingroom, smartclip has compiled the top predictionsfor 2013:
14 IAB FUTURE OF DISPLAY TRADING GUIDE 1) More fragmentation We can expect to see more fragmentation. TV and device manufacturers will continue to develop what they think makes sense for them and not for the industry or more importantly for the consumer. Although there will be progress in some areas, such as platform architecture, the complexity relating to input devices, interactivity, improved computing power whilst maintaining profit margins and so many players getting involved, will result in more fragmentation in 2013. Initiatives such as the Smart TV Alliance still need to find ways to make it easier for content producers to build for multiple devices cost efficiently. This also extends to ad serving solutions, which are becoming less standardised and result in content producers having to implement 3 or 4 different ad-serving solutions if they intend to build for multiple platforms. If device manufacturers are serious about making money, payment solutions and advertising needs to be more standardised. They can differentiate on the user experience, search, recommendation, and other areas, but they need to make it much easier to build opportunities for all platforms to drive revenue through transaction and/or advertising.
IAB FUTURE OF DISPLAY TRADING GUIDE 152) The growth of the second screen and social TVSimultaneous use of the Internet and TV is becoming thenorm. In fact, recent consumer research carried out atsmartclip showed that nearly two-thirds of people use the TVinternet frequently while watching TV. Most of this usage issocial TV or email currently. Social reinforces appointment-based viewing and presents a compelling use case forbroadcasters and content producers of traditional TV. Wewill see more and more synchronised apps from contentproducers to counteract multi-tasking and on-demandviewing. Device manufacturers who build multiple products,such as tablets and smartphones, will make it easier to buildfor 2nd screen opportunities through autocontent recognition and other technologiesfor interacting or synching with thebig screen.
16 IAB FUTURE OF DISPLAY TRADING GUIDE 3) Data and targeting With multiple devices working off the same network and interacting with each other, device manufacturers and content owners can analyse behaviours and gather data that will improve the consumer’s experience. This data can also be extended to the advertising experience. Data is commonplace in the internet world and has improved targeting and relevancy for many years. Today, many Connected TV platforms have limitations in their ability to gather or leverage data, but other devices in the house can be used to determine what people are doing on their TVs. Device manufacturers are waking up to the importance of data and looking at how they can capture information that can help their content partners, their advertisers and themselves in building better platforms for the future.
IAB FUTURE OF DISPLAY TRADING GUIDE 174) More advertisers will embrace CTVIn 2012 we saw significant growth in CTV traffic across our contentpartners, as well as strong interest from advertisers. In some markets,agencies are already appointing dedicated specialists for Connected TV.The global TV advertising industry is worth $188.5 billion in 2012 andwhen a user is on a Connected TV they are not watching linear TV. Itis, however, the same device in the same household and for the firsttime television offers real interactivity. Advertisers can build TV optimisedmicrosites with the same analytics they have on the web and can driveusers to these sites from their ad campaigns across Connected TV.Our research study that was conducted in Germany, which is one ofthe most advanced markets for CTV, found that the biggest use caseon Connected TVs was surfing the web. 48% of people were surfingthe web despite the fact that most of these websites are not optimisedfor TV or the remote control. In addition to surfing the web, video ondemand, gaming, music, news, information services, and social wereall popular pastimes on Connected TV. There is a finite amount of timeand these services steal time from linear TV. Advertisers are beginning torealise the opportunity this presents, as well as the ability to target a moreeducated, affluent, and sophisticated TV audience.
18 IAB FUTURE OF DISPLAY TRADING GUIDE 5) The start of the really fun stuff 2013 will see more innovation around 3D, augmented reality, voice, gesture, and kinetics in general. This is still early and has a strong novelty factor associated to it, but we are beginning to see the window to the future of a truly advanced TV experience. Content producers and advertisers are already exploring options to take advantage of these technologies. Advertisers want to know how they can build an experience that will allow consumers to truly engage and interact with their brand in a way that goes beyond standard interactivity, such as click through. They want the future now.
IAB FUTURE OF DISPLAY TRADING GUIDE 19The future influence of data indisplay advertising Richard Sharp, MD, ValueClickData has become an intrinsicpart of the display marketinglandscape. The three pillarsthat shape our industry are ENTRY DATAtechnology, data and service– with data at the heart ofall activity, built into everycampaign or programme inthe online advertising world.Our company has always been focused on performance, and historically ourstrategies revolved around managing which sites display campaigns are servedon; targeting women’s sites to reach women and men’s sites to reach men (inits most basic of forms), which is very much how things still work in the offlineworlds of press and TV.
20 IAB FUTURE OF DISPLAY TRADING GUIDE We would identify a group of sites targeted at an advertiser’s audience, and then optimise the site mix throughout the campaign to deliver the best ROI. This method has, quite obviously, developed over the last few years to a more active approach; we now look at individual user behaviour online across multiple devices such as laptops, smart phones and tablets. We also look at the multiple stages of the transaction process such as browsing, research, price comparison leading to the final purchase. All these elements allow display campaigns to reach users at different junctures in their daily lives. It’s not just where data is collected that has evolved either, there are many types of data available to marketers. Retargeting data can provide scale and third party data can provide behavioural insight. However, neither of these provide differentiation or unique data to marketers. It’s the unique, proprietorial data that I think will shape the future of this industry. The one major concern of the industry is privacy. There’s a big difference between a consumer purchasing a product because of a retargeted advert and consumers feeling like they’re followed around the internet by a display advert.
IAB FUTURE OF DISPLAY TRADING GUIDE 21ValueClick looked into this further with a research project in conjunction with the IAB earlier thisyear. It was revealed that 45% people agree with the statement: “I am happy for advertisers toshow me relevant advertisements based on my previous web browsing activities,” however 33%of this group want to know more about how this is done.Consumers are aware of the influence of data in online advertising, but there’s an underlying lackof understanding about how it is used. Marketers need to be aware of this issue when dealing withdata in the future, as consumers are becoming increasingly savvy about online advertising and willstart to take more control of their privacy online.The other development of data is the alignment of online and offline data sets. We’ve been ableto use algorithms to predict user behaviour, we’ve been able to mine insights from data sets andwe’ve been able to match offline information with online cookies. However there’s a lot of dilutionin these data sets and marketers are starting to focus on the quality of data they’re using to matchthese elements together, rather than the scale.These two developments are impacting how advertisers interact with audiences.Advertisers now have a more complete story about who they’re reaching and who isresponding to their advertising campaigns. Currently few companies use data to tella complete story, but this is changing as data becomes easier to access,easier to understand and easier to gain actionable insights from.
22 IAB FUTURE OF DISPLAY TRADING GUIDE As data becomes the driving force behind even more campaigns, programmes and marketing strategies, the final key development that we’re going to see is an evolution in attribution strategy. Advertisers have tools to track users offline and online at scale, but in order to continue to learn about their audience they will need to be able to de-duplicate the effect of advertising across TV, print and online. This will allow marketers to look at a holistic picture of their audience enabling them to tailor their marketing strategy accordingly; allocating ad spend more effectively. Data is shaping our industry – it’s increasing efficiency, offering insight about audiences and analysing consumer behaviour. Data can integrate multiple platforms, allowing marketers a rounded approach to aid their marketing strategy. Technology is important in this industry, it’s the ‘doing’ part of what we do, but if there’s weak data behind it then it doesn’t matter how quickly you can bid for an impression or how many you can win, the best ROI will come from the best use of quality data.
IAB FUTURE OF DISPLAY TRADING GUIDE 23The mobile potentialfor Real Time Bidding Sue Hunt, Director, Right Media Exchange, Yahoo! EMEAAt the turn of the year, everyone was labeling2012 as the year of mobile, and among the onlinead industry, real time bidding (RTB) was alsoearmarked for rapid growth. Not only are these twopredictions looking like they’re not too wide off themark, but we could also soon see mobile and RTBcollide and make waves in the industry!There are plenty of critics of RTB who will point to thelow percentage of UK ad spend it accounted for lastyear (around 10%). I, however, sit on the other side ofthe fence here so will obviously disagree, but there aresome extremely compelling arguments as to why thisview is off the mark.
24 IAB FUTURE OF DISPLAY TRADING GUIDE Firstly, the key point here is around growth. The uptake of RTB in the US over the last couple of years is a good indication of what we can expect in the European market, and this was 140 - 150% year-on-year. In strained economic times where every pound of ad spend is crucial, this growth has largely been driven through RTB allowing advertisers to reach their audiences efficiently, and easily demonstrate performance through strong analytics and optimization techniques – whether based against views, clicks, engagement, etc, whatever success looks like to your brand. Then we come to mobile, something which is becoming increasingly difficult to ignore for any marketer who wants to reach and interact with consumers to the greatest affect – not really surprising given that there are said to be over 60 million mobile phones in the UK and half of these are smartphones (and that’s before you throw tablets into the mix). At Right Media Exchange we launched RTB capabilities to further drive performance for advertisers and media owners and it is important that the same performance capabilities are also made available on mobile – including targeting by device, browser, OS and Wi-Fi connection – to create efficient, cross-platform opportunities, all with the same capabilities and workflow as PC. We already see up to 1bn impressions per day being monetized on mobile devices, and if we focus on standardizing the trading model, enabling the same features and functionality as traditional PC advertising already enjoys, then we can expect this number to continue to grow.
IAB FUTURE OF DISPLAY TRADING GUIDE 25 DIRECTORYAdform Jemm Media Right Media, Yahoo! Neil Cameron Julia Smith Sue Huntneil.firstname.lastname@example.org email@example.com firstname.lastname@example.orgAdMeld Tom Jenen Media Math Rubicon Project email@example.com Erich Wasserman Oliver Whitten firstname.lastname@example.org email@example.com pepper Media Henrik Kjaer Microsoft Specific Media Hkjaer@adpepper.com Scott Burford Katie FieldAdconion firstname.lastname@example.org email@example.comMaria Cadburymaria.firstname.lastname@example.org Quantcast Unanimis Phil Macauley Will KingAppNexus email@example.com firstname.lastname@example.orgNigel Gilbertngilbert@appnexus.com Quisma ValueClick Media Google Ellie Edwards-Scott Elliott ClaytonTanzil Bukhari email@example.com firstname.lastname@example.org@google.comInfectious Media Real Media Group Yahoo! Zoe Steventon Larry Allen Dora Michailzoe@infectiousmedia.com email@example.com firstname.lastname@example.org
ail M ket Roc TECH CITY To find out more please go to iabuk.net/displaytrading DR AD History of e Th AGENCYVILLE VERTIS INGwww.iabuk.net