The document discusses the accelerating growth of the real-time bidding (RTB) industry. It notes that the US programmatic advertising market grew from $2.4 billion in 2012 to an estimated $7.5 billion in 2017, with the programmatic share of display advertising increasing from 17.5% in 2012 to 43% in 2017. The document also examines trends like the explosion of media platforms, increasing media consumption, tensions around issues like transparency and privacy, and opportunities for the future of data-driven advertising.

1. Accelerating Growth of RTB Industry
1

2. 1950
2

3. $31B
3

4. 1994
4

5. 2007
5

6. 4.6%
6

7. 11.5%
7

8. 39.5%
8

9. US Programmatic Market Size
$8,000,000 120.0%
$7.5bn
$7,000,000
100.0%
$6,000,000
80.0%
$5,000,000
$4,000,000 60.0%
$3,000,000
40.0%
$2.4bn
$2,000,000
20.0%
$1,000,000
$0 0.0%
2012 2013 2014 2015 2016 2017
US Programmatic Revenues ($000's) Programmatic Growth Rate
9

10. Programmatic Share of Display
2012 2017
Programmatic Buying 17.5% 43.0%
82.5% 57.0%
Traditional Buying
10

11. Explosion of Media Playing Technology
11

12. Fully Mediated Consumers
12

13. A Day in the Mediated Life
13

14. 2.3 Ads per Waking Minute
14

15. 1 : 1,024
15

16. Resolving Tensions for Escape Velocity
16

17. Resolved Issues
+ Deploying technology to manage complexity
+ Adoption of Audience Buying
+ Bifurcation of paid media buys
+ Fear of channel conflict
+ Devaluation of commodity ad impressions
17

18. Tensions to Resolve
1. Transparency vs. Margin Pressure
2. Privacy vs. User Experience
3. Creativity vs. Production Efficiency
4. Bundling vs. Targeting
5. Dynamic Insertion vs. Simultaneous Consumption
6. Audience vs. Outcomes
18

19. Transparency: Add Value or Go Home
19

20. Authentication Powers 1st Party Data
Despite consumer apathy, writing on the wall
• Do Not Track Me Online Act of 2011
• Kerry/McCain Commercial Privacy Bill of
Rights Act of 2011
• Microsoft IE10 ‘Do Not Track’ option
• Various restrictions in Europe
20

21. Machine Made Ads Suck
21

22. Bundling Low Value with High
22

23. Can Dynamic Ad Insertion Scale Cross Media?
23

24. Media Planning Holy War
Universe Coverage
Predictable
Spend to Threshold
24

25. Areas to watch
+ Private Exchanges
+ Contextual signals of value
+ Overnight TV and Radio
+ ANA Procurement Task Force
25

26. Thank you!
@brionic
26