This document discusses the growth of real-time advertising (RTA) and programmatic marketplaces in Europe. It notes that programmatic advertising will be a $78 billion market by 2017. The document outlines different types of programmatic marketplaces, including auctions, performance, guaranteed, and deals marketplaces. It also summarizes the results of a survey of over 600 European advertisers, agencies, and publishers on their use of RTA, which found over €3 billion in annual advertising spend. Finally, it discusses the need for marketers to develop RTA sales strategies, agencies to operationalize marketplaces, and publishers to offer programmatic inventory.

1. AdTech and the Real Time Future
Frederike Voss
Country Manager Central Europe
AppNexus

2. Three questions:
1) What is AdTech and why does it matter?
2) How will Real-Time Advertising (RTA)
develop in Europe, especially DACH?
3) What does the development of ‘programmatic
marketplaces’ mean for Publishers, marketers
and agencies?
Welcome

3. Three questions:
1) What is AdTech and why does it matter?
2) How will Real-Time Advertising (RTA)
develop in Europe, especially DACH?
3) What does the development of ‘programmatic
marketplaces’ mean for Publishers, marketers
and agencies?
?

4. Digital Advertising 2013 – 2017 ($ billions)
4
Digital
Advertising
$113
Non-Search
$67
2013
$60
Open
Platform
$46
Search
$7
Social
$30
Direct
$30
Indirect
$5
RTA
$25
Non-RTA
Digital
Advertising
$177
Non-Search
$118
2017
$105
Open
Platform
$57
Search
$13
Social
$31
Direct
$74
Indirect
$21
RTA
$53
Non-RTA
Source: IDC and AppNexus estimates

5. Programmatic advertising will be a
$78B market in 2017

6. Three questions:
1) What is AdTech and why does it matter?
2) How will Real-Time Advertising (RTA)
develop in Europe, especially DACH?
3) What does the development of ‘programmatic
marketplaces’ mean for Publishers, marketers
and agencies?
?

7. PROGRAMMATIC TECHNOLOGY:
Tech that helps buyers evaluate inventory and helps
sellers maximize revenue.
PROGRAMMATIC MARKETPLACE:
An open place where buyers and sellers use
technology to convene for the sale of advertising.
PROGRAMMATIC
MARKETPLACESRTA
7

8. AUCTION
Marketplace
› Real-time auction (RTB)
› Buyer uses audience and technology
to take performance risk
› Low risk to seller but context & data
undervalued
8
1

9. › Buyer pays for performance
› Seller trades risk for reward
PERFORMANCE
Marketplace
9
2

10. › Buyer trades upfront payment for
guaranteed delivery
› Publisher context, audience, and
brand association drive value
› Buyer has full transparency, but
limited use to buy-side data
GUARANTEED
Marketplace
10
3

11. › Collaborative
› Shared risk for the buyer & seller
› Seller context is valuable
› Moderate transparency for both
Deals
Marketplace
11
4

12. PUBLISHER INVENTORY
DIRECT DEALS
RTB RTB
PERF PERF
PREMIUM
ENDEMIC
QUALITY NON-
ENDEMIC
REACH /
LONG TAIL
BRAND
AWARENESS
BRAND
RESPONSE
DIRECT
RESPONSE
RTBMARKETER / AGENCY
OBJECTIVES
12
2
2
4
1
1
1
3

13. Three questions:
1) What is AdTech and why does it matter?
2) How will Real-Time Advertising (RTA)
develop in Europe, especially DACH?
3) What does the development of ‘programmatic
marketplaces’ mean for Publishers, marketers
and agencies?
?

14. ONLINE STRUCTURED SURVEY
CONDUCTED IN APRIL & MAY 2014
626 RESPONSES IN TOTAL ACROSS EUROPE:
186 marketers
135 media buying agencies
146 advertising agencies
159 publishers
€3Billion
oversee
ADVERTISING SPEND
14

15. A robust study of advertisers in DACH
• Online structured survey conducted in April and May 2014
• 96 responses:
– 15 marketers
– 44 media buying agencies
– 37 publishers
oversee
€860million
advertising spend

16. 16

17. 17

18. 18

19. Three Tasks:
1) Marketers to develop RTA sales strategies
2) Agencies to operationalize marketplaces
3) Publishers to offer programmatic inventory
!

20. Thank you
fvoss@appnexus.com