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"Five Predictions for 2014 - OMMA RTB Chicago" - Brian Stempeck, Nov. 18, 2013

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Brian Stempeck at OMMA RTB Chicago - Nov. 18, 2013

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"Five Predictions for 2014 - OMMA RTB Chicago" - Brian Stempeck, Nov. 18, 2013

  1. 1. Five Predictions for 2014 OMMA RTB - Chicago
  2. 2. FROM THE TEAM THAT INVENTED REAL-TIME BIDDING ENGINEERING  TEAM:    Only  team  in  the  world  to  build  mul2ple   RTB  pla7orms   FOUNDERS:    Started  AdECN,  the  first  ad  exchange,  bought  by   MicrosoD  in  2007   HEADQUARTERED:    Ventura,  California;  addi2onal  offices  in   Los  Angeles,  New  York  City,  Chicago,  San  Francisco,  Boulder,   London,  Hamburg,  Singapore  and  Tokyo.   TTD  POWERS:    5  of  7  agency  trading  desks,  3  of  top  5  ad   networks,  and  many  more  agencies  and  buyers    
  3. 3. Five big trends for 2014 1.  The  rise  of  RTB  for  branding  and  video  campaigns   2.  Forward  market  buys  with  premium  publishers   3.  How  brands  are  tying  RTB  to  offline  sales  and  metrics   4.  Advances  in  non-­‐cookie  user  targe2ng   5.  How  advanced  buyers  are  building  their  own  op2miza2on  rules  and   algorithms   3
  4. 4. CPG is here to stay in RTB 4
  5. 5. End of artificial silos These materials are not intended for distribution outside of The Trade Desk and its partners and customers 5
  6. 6. Agencies are following suit In-­‐house  trading  team       Dedicated  agency  RTB  trading  team         Dedicated  agency  RTB  trading  team         Dedicated  agency  RTB  trading  team   6
  7. 7. Video stands to gain in 2014 Queries  per  second   1,400,000   1,200,000   1,000,000   800,000   600,000   400,000   200,000   0   Display   Video   7
  8. 8. Video stands to gain in 2014 These materials are not intended for distribution outside of The Trade Desk and its partners and customers 8
  9. 9. Five big trends for 2014 1.  The  rise  of  RTB  for  branding  and  video  campaigns   2.  Forward  market  buys  with  premium  publishers   3.  How  brands  are  tying  RTB  to  offline  sales  and  metrics   4.  Advances  in  non-­‐cookie  user  targe2ng   5.  How  advanced  buyers  are  building  their  own  op2miza2on  rules  and   algorithms   9
  10. 10. Agencies are following suit Deal  ID  as  good  start   Can  I  buy   this  ad  in   RTB?   These materials are not intended for distribution outside of The Trade Desk and its partners and customers 10
  11. 11. What  went  wrong  with  Deal  ID?   •  Deal  ID:    Single  code  to  match  a  buyer   with  a  publisher  in  an  RTB  auc2on.     •  More  fric2on  than  liquidity   •  Less  scale  than  the  old  way     •  Too  many  phone  calls  and  emails  for   over-­‐worked  RTB  buyers       •  No  commitment  from  either  side  
  12. 12. The  Forward  Market   $1,000  CPM  from   a  poliRcal  agency   for  Ohio  swing   voters  in   November  2016   2016   PresidenRal   Candidate  
  13. 13. The  Forward  Market  –  how  it  works   •  Commits  to  sending  10M  impressions   per  day  to  the  buyer  in  Nov.  2016   2016   PresidenRal   Candidate   •  Commits  to  buying  10%  of  the   impressions  they  see  in  Nov.  2016  at   agreed-­‐upon  CPM   •  More  stability  and  higher  CPMs  for  pubs   •  More  scale  on  audiences  that  buyers  want  
  14. 14. Five big trends for 2014 1.  The  rise  of  RTB  for  branding  and  video  campaigns   2.  Forward  market  buys  with  premium  publishers   3.  How  brands  are  tying  RTB  to  offline  sales  and  metrics   4.  Advances  in  non-­‐cookie  user  targe2ng   5.  How  advanced  buyers  are  building  their  own  op2miza2on  rules  and   algorithms   14
  15. 15. WHY  ARE  WE  STILL  MEASURING  CLICKS?  
  16. 16. Same-­‐store  sales  Red  to  digital  media   •  •  •  •  •  •  Pet  food  brand  experiment   in  Pacific  NW   A/B  tested  in  grocery  stores   Heavy  digital  spend  by  zip   in  test  regions  proved   same-­‐store  sales  liD  of  17%     Used  checkout  data  for   lookalike  modeling  and   audience  refinement   Took  program  na2onal   CMO  judged  digital   program  by  offline  sales    
  17. 17. Brand  li  Red  to  digital  media   “Do  you  plan  to  purchase  this  brand     in  the  next  30  days?”   300   200   100   0   Yes   Primarily  18-­‐24  female,   Bravo  watchers,  HHI  < $50K,  in-­‐market  2-­‐door   sedan,  plays  musical   instrument       No   Primarily  34-­‐48  married   female  with  teenagers,   HHI  >$90K,  rural/ exurban,  TLC  watchers,   reality  show  junkies  
  18. 18. Five big trends for 2014 1.  The  rise  of  RTB  for  branding  and  video  campaigns   2.  Forward  market  buys  with  premium  publishers   3.  How  brands  are  tying  RTB  to  offline  sales  and  metrics   4.  Advances  in  non-­‐cookie  user  targeRng   5.  How  advanced  buyers  are  building  their  own  op2miza2on  rules  and   algorithms   18
  19. 19. Will cookies die in 2014? •  Challenges  from  Mozilla,   consumer  privacy,  lack  of   targe2ng  on  mobile…   •  Rise  of  unique  IDs  from   Google,  Facebook,  MicrosoD…   •  New  entrants  with  proprietary   tech  like  Tapad,  Drawbridge…     19
  20. 20. User  tracking  is  not  winner-­‐take-­‐all   •  Proprietary  tracking  systems   won’t  last  (or  scale)   •  Google,  Facebook,  MicrosoD  (or   anyone)  controlling  user  IDs  isn’t   good  for  the  rest  of  us  (or   consumers)   •  There  needs  to  be  an  open  source   standard    
  21. 21. OpenStatID   A  collabora2ve,  open-­‐source  standard   to  user  iden2fica2on  and  privacy  
  22. 22. Five big trends for 2014 1.  The  rise  of  RTB  for  branding  and  video  campaigns   2.  Forward  market  buys  with  premium  publishers   3.  How  brands  are  tying  RTB  to  offline  sales  and  metrics   4.  Advances  in  non-­‐cookie  user  targe2ng   5.  How  advanced  buyers  are  building  their  own  opRmizaRon  rules  and   algorithms   22
  23. 23. •  2013  Ford  Mustang  -­‐   $22,200   •  2013  Saleen  351  Mustang   Black  Label  -­‐  $82,600  
  24. 24. Bring Your Own Algorithm •  Every  DSP  has  its  own  algorithms  and  op2miza2on     •  But  advanced  media  buyers  are  bringing  their  own   op2miza2on:   –  –  –  •  Mining  CRM  data  and  selng  unique  CPM  bids  for     every  single  user     Building  (and  selling)  op2miza2on  systems  on  top  of  the  DSP   Crea2ng  advanced  rule-­‐sets  and  algorithms  that  are  proprietary   A  true  plaiorm  welcomes  innovaRon  builders     24
  25. 25. THE  TRADE  DESK   C O N T A C T :   B R I A N   S T E M P E C K   BRIAN.STEMPECK@THETRADEDESK.COM      

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