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State of the Industry with Rubicon Project: Automating Guarantees in a Complex Marketplace at DAS, 10/21/14


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Josh Wexler from Rubicon Project's presentation from Digiday Agency Summit on October 21, 2014.

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State of the Industry with Rubicon Project: Automating Guarantees in a Complex Marketplace at DAS, 10/21/14

  1. 1. Leading the Automation of Advertising The State of the Industry: Automating Guarantees in a Complex Marketplace Presented by Josh Wexler
  2. 2. Be brilliant and creative. Goal: Provide the buyers and sellers of advertising enabling technology to accelerate their ability to deliver better performance and higher yield.
  3. 3. Awareness Consideration Engagement Conversion Automated Guaranteed Programmatic Premium Auction Auction Repurchase Intent $29B* $6B* * [Source: IDC "Real-Time Bidding In the US & Worldwide, 2010-2017] Largest Market is Underserved
  4. 4. Current Inefficiencies • Today, more than half of those surveyed spend at least 20% of their time manually processing digital advertising transactions. 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 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? 0 percent 1%-20% 21%-40% 41%-60% 61%-80% 81%-100% 0 percent 1%-20% 21%-40% 41%-60% 61%-80% 81%-100%
  5. 5. Efficacy Over Efficiency “As systems get streamlined, it gives buyers more time to focus on the efficacy of media: really trying focus on what systems should be integrated into the streamlined process.” – Will Heins, director of partnerships for digital, OMD
  6. 6. 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. 200 180 160 140 120 100 80 60 40 20 0 How many different systems (email, Excel, planning, DSPs, ad Servers, billing systems, DMPs, etc.) do you log into to manage a GUARANTEED buy? 6+ 4-5 2-3 1 6+ 4-5 2-3 1
  7. 7. “Automated guarantees are a good stepping stone for getting to a full programmatic buying experience, because you can still guarantee a certain amount of inventory, which the publishers like because they are prone to selling out, but you can have the data overlaid and see insights.” -- Danielle Sporkin, North American director of investment and partnerships, Essence Digital Automate Everything
  8. 8. Automated Guaranteed Systems are Limited • Respondents don’t believe a guaranteed automation offering currently exists the marketplace that best serves their needs. 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% What percentage of your GUARANTEED orders are transacted in an automated (programmatic) fashion? 0 percent 1%-10% 11%-20% 21%-30% 31%-40% 41%-50% 51%-60% 61%-70% 71%-80% 81%-90% 91%-100%
  9. 9. Automated Guaranteed Systems are Needed “This is probably one of the more underutilized portions of programmatic media.” – Brian Nadres, director of programmatic at Media Kitchen
  10. 10. 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)? Very strong Strong Somewhat strong Not very strong Not at all strong
  11. 11. "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
  12. 12. Leading the Automation of Advertising Thank You