1. The document discusses the evolution of digital advertising, from early printed ads to today's highly targeted real-time bidding system. 2. It notes that digital advertising allows for highly fragmented and individual impressions, breaking the traditional content-audience relationship. 3. The rise of real-time bidding (RTB) allows advertisers to examine site visitors individually and bid to serve ads within milliseconds, leading to more relevant ads. Global RTB spending has grown significantly between 2010-2016.

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A New Age for Digital Advertising
Jag Duggal, SVP Product Management
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@Quantcast
Know ahead. Act before.TM

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Agenda
Advertising Timeline
Introduction of Digital
The Connected Opportunity
RTB’s Rise
Predictive Modeling
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Advertising timeline
1844MAGAZINES
NEWSPAPERS
1650
BILLBOARDS 1867
1872CATALOGS
PRINT PRE-
DIGITAL
POSTERS
Pre
1650
DIGITAL
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Advertising timeline
1844MAGAZINES
NEWSPAPERS
1650
BILLBOARDS 1867
1872CATALOGS
PRINT PRE-
DIGITAL
POSTERS
Pre
1650
1941TV
DIRECT MAIL 1954
1922RADIO
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Advertising timeline
1994BANNERADS/GMAIL
2003GOOGLE ADSENSE
2007FACEBOOK/YOUTUBE
2008LINKEDIN
2009MOBILE APPS
2010TWITTER
2012FACEBOOK MOBILE
PPC 2000
1844MAGAZINES
NEWSPAPERS
1650
BILLBOARDS 1867
1872CATALOGS
PRINT PRE-
DIGITAL
POSTERS
Pre
1650
1941TV
DIRECT MAIL 1954
1922RADIO
DIGITAL
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7
Digital changes everything
Fragmentation at a
whole new level.
Impressions delivered
individually, each
entirely distinct.
Breaks the content-
audience union.
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Herbert Simon, 1971
A world of information creates a
poverty of attention.
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Challenge:
417Web Pages Per Person
3,000Web Pages a month
93Web Pages a Day
10
Web Pages
1 Trillion
People
2.4 Billion
How can we find relevance in all of this?
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The connected opportunity
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The rise of real-time audience targeting
“….let advertisers buy ads in the milliseconds between the
time someone enters a site’s Web address and the moment the
page appears.The technology, called real-time bidding,
allows advertisers to examine site visitors one by one and bid
to serve them ads almost instantly…A consumer would barely
notice the shift, except that ads might seem more relevant to
exactly what they are shopping for.”
Source: New York Times, March 12, 2010
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13
RTB’s Rise
$402
$1,356
$2,972
$5,000
$7,506
$10,474
$13,879
2010 2011 2012 2013E 2014E 2015E 2016E
Global RTB Spend (Millions)
Source: IDC
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RTB is high speed trading…
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…for advertising.
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RTB is a commodity market…
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Trading rice one grain at a time.
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Conclusion
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MORE DATA = BETTER MODELS
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78%
12%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Scored Internet Population (Deciles)
Top 20% of Lookalike scored
consumers delivered 90% of all
conversions.
Bespoke models
for each product
Score every Internet
consumer individually
Continuously
updated in seconds
Advertise: Predictive Modeling
Likelihood to Convert
The end of
generic
segments
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Selling plane tickets
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Thank you.
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