S.O.T.I.: The Future of the Programmatic Forward Market

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Jeff Green, CEO and co-founder of The Trade Desk presented the findings of Digiday's State of the Industry survey, which draws on the most influential leaders in digital advertising to offer their assessment of agency efficiency and their evolving role in the creative process.

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S.O.T.I.: The Future of the Programmatic Forward Market

  1. 1. The Future of the Forward Market The Future of the Forward Market, Q1 2014 White Paper and Survey Results: The Trade Desk and Digiday Jeff Green CEO The Trade Desk
  2. 2. THE TRADE DESK IS A BUYERS’ PLATFORM BUILDING BUSINESSES FOR THE NEXT 100 YEARS.
  3. 3. The world is changing how it buys and sells the annual $600B in advertising. NEW WINNERS AND LOSERS WILL EMERGE FROM THIS TRANSITION. EVERYTHING OF SIZE WILL BE TRANSACTED DIGITALLY.
  4. 4. RTB HAS NO GUARANTEES
  5. 5. METHODOLOGY Digiday State of the Industry Survey • 647 digital media and marketing professionals • 35 percent as agencies, 7 percent identified as advertisers, 36 percent as publishers, and 22 percent as none of the above. The 22 percent who responded as none of the above only answered the first series of questions which gave us our baseline of “programmatic” and “premium programmatic” definitions. Analysis consisted of a series of cross-tabulations alongside some basic correlation analysis using both Pearson and Spearman methods. In addition, three qualitative interviews were conducted with programmatic specialists on both the buying and selling sides to confirm or interpret the findings.
  6. 6. 90% programmatic is more than just the RTB spot market
  7. 7. 55% already buying premium inventory via programmatic
  8. 8. 11-20% how much of your digital budget went to programmatic?
  9. 9. 0-10% how much of your 2013 programmatic budget went to premium?
  10. 10. <1 year when did you embrace programmatic premium?
  11. 11. 67% direct buy relationships are not an obstacle to buying premium via programmatic
  12. 12. 80% expect to increase 2014 programmatic spending, & increase premium spend
  13. 13. SKEPTICISM
  14. 14. where the analogy fails no price discovery no current scale in private marketplaces odds of winning are different commodities are all different. every ad is different. utility is very different
  15. 15. the answer transacting inventory for a $5,000 cpm for every fence-sitting voter in Ohio the three final days before the election.
  16. 16. Scale can only happen when we can apply what we learn at 10k impressions to 100 MM.
  17. 17. the solution trump card • uses RTB pipes • run the auction but the trump card bypasses the auction
  18. 18. incremental demand 160 DEMAND FOR FUTURE INVENTORY DEMAND FOR CURRENT INVENTORY 140 120 100 80 60 40 20 0 100 MS 1 DAY 1 MONTH 1 QUARTER 2 QUARTERS
  19. 19. OUR PREDICTION 80%+ OF FORWARD CONTRACTS WILL INITIATE FROM THE BUY SIDE.
  20. 20. THANK YOU for listening

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