ATSYD 13 Jason Barnes/Kaylie Smith - News Ltd/Rubicon

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  • Just a very quick introduction to the Rubicon Project to start… these are some of the premium publishers we work with in the UK, many of whom it’s great to see in the room today.For those who don’t know us so well, we’re the leading ad tecnology platform for the comScore 500. We currently work with 40% of the top 250 publishers in both the UK and France, the top two news publishers in Australia and a growing number of national publisher collectives.
  • Automation in advertising a natural progression and mirrors exactly what has already happened in finance, travel and drive by ebay retail. Starts in the remnant space then moves up the stack in to more premium inventory as the medium is able to optimize yield and deliver at scale
  • Real time bidding is here and is growing quickly – non US markets are in general growing faster than the US as they have more to gain from the efficiencies
  • In AU Real time bidding inventory is growing quickly but there’s still some seasonality involved and we’re still early in the process
  • While impressions are growing quickly even more interesting is that we’re moving up the stack quickly – its’ not just remnant inventory coming in to the ecosystem eCPM’s are increasing quickly as we move in to more premium inventory and towards guaranteed buys
  • We’ve consistently seen private marketplaces drive CPMs 3-5 times the amount in open RTB – in the last few months we’ve seen this move to the next stage in its evolution…
  • By passing 1st party data (essentially, this means user data on your site) this has driven CPMs on average twice as much as standard private marketplace deals and 8x network buys. and there are now 170 private marketplace opportunities, from 35 UK publishers on our deal-making product REVV Connect.
  • As an industry, it’s been noted that we over-rely on jargon – so this is just a quick note to say all of these things mean the same thing, which is:
  • Your direct sell, or in other words your premium inventory.
  • Xaxis has around 35 staff in the UK…
  • Hi everyoneGreat to be here today and speaking about a topic I that I am sure will interest and excite you all.You are lucky as you have two-for-the-price-of-one, Kaylie Smith and I will be co-presenting and giving you our view on why technology is bringing buyers and sellers closer together. I will hand over to Kaylie now and then I will reappear to give you the publisher view on the topic
  • These are some of the topics I will be covering regarding programmatic trading and its impact and benefits on publishers, agencies and marketers. You can see there are a lot of similarities on both sides, this technology works for both the demand and supply side which is why I believe this will continue to grow
  • Wow – this thing is growing fast!Come from nowhere to $8m per monthThe fact agencies are pushing so much money into this channel must mean there are some tangible benefits
  • If we extrapolate out at 10% growth and overlay with Frost & Sullivan Comparable to mobile ($86M) or video ($90M) advertising last year E-Marketer, in US in 2012 = 13% and 2016 = 28%We need to ensure we defend and grow our marketFor those that are pragmatic and embrace this medium there may be rewards. First mover advantage
  • So revenue is growing and there has been a positive effect on our yieldsThis is our data over a 6 month period, yield via RTB versus our in-house performance productThe change is significant and sustainedThe game changer is that while our yields have increased the ROI our agencies have been achieving are also improved so a truly virtuous circleI will go into detail a little later on how and why this has happened
  • Efficiency is a word you often hear mentioned around RTB circles – applies to publishers and agenciesTypical display media order process is detailed above, publisher at right and agency at leftIt is complex when compared to other mediumsThis shows how we can bring buyers and sellers closer together, less process more talkingIn RTB it does not touch our ad ops or finance teams so overheads are greatly reducedSales person will always be required to speak with an agency planner. Like the 70’s with advent of desktop computers – Mad Max scenarioTechnology makes people more valuableRTB is another channel for them to speak about, lead generationPremium programmatic is also an opportunity
  • As we ride this data wave and try not to drown in itThis channel helps us activate the monetisation of data, again assisting the transaction and making it easier to tradeData helps both the publisher and agencyPublisher is more easily able to make 1st party data available to agencies in a controlled and pre negotiated mannerAgency can access publisher data more easily and apply it across multiple inventory sources
  • ROI achieved through Better results, algorithms need less impressions to achieve the same outcomes Universal frequency capping Reach across supply and platforms Transparency Controls
  • All agencies and marketers who value their (clients) brands should be vigilant about where their ads appearIts amazing how in the digital era there has been a relaxing of where ads appear, would never happen in TV or print, why online?Private exchange like News has through Rubicon offer premium formats in premium contextual environments
  • Here is an example to illustrate this point and one I find disturbingThis is our trading data pulled from our Rubicon console, they are fairly significant buyers over a 3 month periodSo why don't you guess which of these I like best??12M bids with 1% win rate versus 20% win rate, our inventory is not targetedThis is negative for all partiesPublisher – we are not getting the revenue we would like toMarketer – ads appearing on low quality sites, long tail,Agency – not adding value for the clientIt is critical that we avoid the shotgun approach and implement buying strategies and rates based on the inventory we are targeting
  • The reason I am excited about programmatic trading is that there are genuine tangible benefits for all parties- Process efficiency for all- Improved yield for publishers- Better performance of campaigns leading to increased ROIBe vigilant about where your ads appear. Premium environments are critical to ensure no nasty experiencesLUMASCAPE has a lot to answer for, made it all look very comlpexDon’t let the tech get between us, it is an enabler that can bring buyers and sellers closer together and continue to grow the digital advertising market
  • ATSYD 13 Jason Barnes/Kaylie Smith - News Ltd/Rubicon

    1. 1. Technology Bringing Buyers and Sellers Together Kaylie Smith – APAC MD the Rubicon Project1
    2. 2. In Good Company2
    3. 3. FINANCE TRAVEL RETAIL ADVERTISING Premium NEXT AUTOMATION Mid Market NOW Remnant 2007 - 20123
    4. 4. REAL TIME BIDDING REVENUE GROWTH - UK4
    5. 5. RTB Revenue Growth 2012 - Australia5
    6. 6. RTB vs Ad Tag Buying in Australia 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%6
    7. 7. RTB Impressions Vs. Revenues in Australia 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% % impressions % revenue7
    8. 8. What are private marketplaces – a quick recap ‘A fancy way of saying that you’re using computers to implement and enforce the same business rules you impose manually on your own direct sales team.’8
    9. 9. FUNCTIONALITY OF PRIVATE MARKETPLACES CONTROL, VISIBILITY AND FLEXIBILITY o Standard Auction o Private Access o Right of Refusal o Preferred Price Floors9
    10. 10. CPM COMPARISON10
    11. 11. WITH FIRST PARTY DATA Networks Open RTB Private Marketplace First Party Audience Deals Private Marketplace Deals11
    12. 12. A quick note on semantics Programmatic premium = Programmatic reserve = Programmatic guaranteed12
    13. 13. What is programmatic guaranteed? ‘A fancy way of saying you are transacting your direct sell through automated technology instead of Fax and Excel.’13
    14. 14. Why?‘20-30% of media budget is spent on overheador execution costs…until they reduce thatpercentage, digital spend will only creepbeyond its current 10% share.’– Jay Sears, SVP of Demand, Rubicon Project 14
    15. 15. Our Mission: Automate Everything Representative Inventory eCPMs Home Page/ $$$$ Channel/ROS Programmatic Guaranteed Channel/ROS PMP with Data $$$ & DATA Layer Channel PMP and Preferred $$ /ROS Price Floors $ ROS Open RTB with Networks15
    16. 16. How agencies are evolving… The rise of the ATD The fastest shift in agency makeup in the past 10 years Has happened in only in the last 18 months…16
    17. 17. How Technology is Bringing Buyers and Sellers Closer Together AdTech Sydney 13 March 2013JASON BARNESHead of Commercial Development, News Limited
    18. 18. Whats in it for us? Publisher Agency & Marketer • Revenue and Yield • ROI • Market share • Brand safe environments • Operational Efficiency • Operational Efficiency • Data • Data
    19. 19. PublisherSpend is accelerating $82M for FY13 18% Ave. monthly growth 18% $86m growth @ 10% Forecast FY13 rev MOM $12,000,000 growth projection $10,000,000 Forecast Actuals $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Data source: SMI
    20. 20. PublisherMarket share FY13 Display Revenue FY14 Display Revenue 9% 24% $86m $264m $854m $836m $940 million $1,100 million Source: Frost & Sullivan
    21. 21. PublisherYield uplift has been significant $3.00 Trading eCPM $2.50 Perf eCPM $2.00 $1.50 283% increase $1.00 $0.50 $0.00
    22. 22. Publisher, Agency & MarketerEfficiency gains
    23. 23. Publisher, Agency & MarketerData
    24. 24. Agency & MarketerROI
    25. 25. Agency & MarketerBrand safety is a critical requirement
    26. 26. Agency & Marketer Targeting strategies are critical Demand A Demand B$5.01-upward $5.01-upward $3.01-$4.00 $3.01-$4.00 $2.01-$2.50 $2.01-$2.50 $1.61-$1.80 $1.61-$1.80 $1.21-$1.40 $1.21-$1.40 $0.81-$1.00 $0.81-$1.00 $0.41-$0.60 $0.41-$0.60 $0.01-$0.20 $0.01-$0.20 0% 2% 4% 6% 8% 10% 12% 14% 16% 0% 10% 20% 30% 40% 50% 60% 70%
    27. 27. In conclusion• Genuine benefits for all sides• Focus on environment• Less acronyms more solutions

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