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WHAT IS THE
FUTURE OF
AUTOMATED
TRADING?

@FrankAddante	
  
WE’RE NOT
THAT
BRILLIANT
THIS HAS BEEN DONE BEFORE
                                 FINANCE	
     TRAVEL	
     RETAIL	
     ADVERTISING	
  



             Premium	
                                                          NEXT	
  
AUTOMATION




             Mid	
  Market	
                                                    N O W	
  




             Remnant	
                                                    2007	
  -­‐	
  2012	
  
M I S S I O N	
  


     

 AUTOMATE
 BUYING &
SELLING OF
ADVERTISING"
Agency2Publisher	
  
DON’T	
  
	
  BE	
  EVIL	
  
PUBLISHER MARKET HIGHLY FRAGMENTED
                                                                                                                    comScore	
  6-­‐25	
  
                                                                                                                                     Total	
  Display	
  Ad	
      Share	
  of	
  
                                                                         Rank	
   Publisher	
                                       Impressions	
  (MM)	
         Display	
  Ads	
  
                                                                             6	
   Glam	
  Media	
                                           7,694	
                  1.7%	
  
                                                                             7	
   ESPN	
                                                    5,520	
                  1.3%	
  
          3	
  Major	
  Segments	
                                           8	
   Turner	
  Digital	
                                       5,375	
                  1.2%	
  
                                                                             9	
   eBay	
                                                    4,505	
                  1.0%	
  
                                                                           10	
   Amazon	
  Sites	
                                          4,108	
                  0.9%	
  
                                                                           11	
   Viacom	
  Digital	
                                        3,536	
                  0.8%	
  
                                                                           12	
   Weather	
  Channel,	
  The	
                               2,205	
                  0.5%	
  
                                                                           13	
   CBS	
  Interac[ve	
                                        2,142	
                  0.5%	
  
                                                                           14	
   New	
  York	
  Times	
  Network	
                          1,997	
                  0.5%	
  
                                                                           15	
   Ganne^	
  Sites	
                                          1,951	
                  0.4%	
  
                                                                           16	
   Fox	
  News	
  Digital	
  Network	
                        1,912	
                  0.4%	
  
        Facebook	
  
                                              comScore	
  6-­‐1000	
       17	
   DRUDGEREPORT.COM	
                                         1,874	
                  0.4%	
  
                                                                           18	
   Comcast	
  Corpora[on	
                                    1,779	
                  0.4%	
  
                                                                           19	
   PANDORA.COM	
                                              1,555	
                  0.4%	
  
                                                                           20	
   NFL	
  Internet	
  Group	
                                 1,522	
                  0.3%	
  
                                                                           21	
   Mevio	
  Network	
                                         1,516	
                  0.3%	
  
                                                                           22	
   WildTangent	
  Media	
                                     1,467	
                  0.3%	
  
   Yahoo!	
                                                                23	
   MEDIATAKEOUT.COM	
                                         1,371	
                  0.3%	
  
                                                                           24	
   TAGGED.COM	
                                               1,353	
                  0.3%	
  
                                                                           25	
   Com	
  Enterprises	
  Inc.	
                               1,281	
                  0.3%	
  


                                       Long	
  Tail	
  (mostly	
  
                                              Google)	
  
MicrosoE	
  
                             AOL	
  
                Google	
  
SOLUTION: EASY, SAFE ACCESS @ SCALE
IT’S ALL AUTOMATION

                          RTB



                          DSP
 DON’T	
  
focus on acronyms
                          SSP


                          PMP
MAKE IT EASIER TO SPEND IN DIGITAL


                           Premium



       DO	
  
   automate                Non-
                           Guaranteed

      all
   inventory
                           Remnant
automation         no control




GPS DOESN’T DRIVE YOUR CAR FOR YOU
COMPUTERS SCARED PEOPLE


      C:> HUMAN:
      I WILL REPLACE
      YOU
THEY DIDN’T REPLACE PEOPLE
COMPUTERS NEED PEOPLE
NOT NEW: JUST BETTER, FASTER CHEAPER




      RTB                    HTTP




                           COMPUTER
    PRIVATE
                           ENFORCED
  MARKETPLACES
                         SELLING RULES
A MORE POWERFUL WORLD



                      BIG             ALGO-
                                              197,000 DECISIONS
3 PETABYTES DATA      DATA           RITHMS
                                              PER AD

650 MILLION UVS                               1 MILLION TIMES
                                              PER SECOND
                             REAL TIME
                               CLOUD



                        16,000 CPU CORES
                   40+ GIGABITS DATA / SECOND
NEXT:   GET TECH OUT OF THE MIDDLE
AND GET BUYER & SELLER TOGETHER




           DEAL ID"




        TECH UNDERNEATH
SUMMARY: AUTOMATION IS HAPPENING


                            acronym
                           confusion
WE’VE SEEN THIS STORY BEFORE
               WE’RE NOT THAT BRILLIANT
                                 FINANCE	
     TRAVEL	
     RETAIL	
     ADVERTISING	
  



             Premium	
                                                          NEXT	
  
AUTOMATION




             Mid	
  Market	
                                                    N O W	
  




             Remnant	
                                                    2007	
  -­‐	
  2012	
  
@FrankAddante



REAL TIME TRADING




# 1	
   R E A C H	
   P L A T F O R M	
   A S	
   M E A S U R E D	
   B Y	
   C O M S C O R E	
  

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Frank Addante's ATS Presentation

  • 1. WHAT IS THE FUTURE OF AUTOMATED TRADING? @FrankAddante  
  • 3. THIS HAS BEEN DONE BEFORE FINANCE   TRAVEL   RETAIL   ADVERTISING   Premium   NEXT   AUTOMATION Mid  Market   N O W   Remnant   2007  -­‐  2012  
  • 4. M I S S I O N   
 AUTOMATE BUYING & SELLING OF ADVERTISING"
  • 6.
  • 7. DON’T    BE  EVIL  
  • 8. PUBLISHER MARKET HIGHLY FRAGMENTED comScore  6-­‐25   Total  Display  Ad   Share  of   Rank   Publisher   Impressions  (MM)   Display  Ads   6   Glam  Media   7,694   1.7%   7   ESPN   5,520   1.3%   3  Major  Segments   8   Turner  Digital   5,375   1.2%   9   eBay   4,505   1.0%   10   Amazon  Sites   4,108   0.9%   11   Viacom  Digital   3,536   0.8%   12   Weather  Channel,  The   2,205   0.5%   13   CBS  Interac[ve   2,142   0.5%   14   New  York  Times  Network   1,997   0.5%   15   Ganne^  Sites   1,951   0.4%   16   Fox  News  Digital  Network   1,912   0.4%   Facebook   comScore  6-­‐1000   17   DRUDGEREPORT.COM   1,874   0.4%   18   Comcast  Corpora[on   1,779   0.4%   19   PANDORA.COM   1,555   0.4%   20   NFL  Internet  Group   1,522   0.3%   21   Mevio  Network   1,516   0.3%   22   WildTangent  Media   1,467   0.3%   Yahoo!   23   MEDIATAKEOUT.COM   1,371   0.3%   24   TAGGED.COM   1,353   0.3%   25   Com  Enterprises  Inc.   1,281   0.3%   Long  Tail  (mostly   Google)   MicrosoE   AOL   Google  
  • 9. SOLUTION: EASY, SAFE ACCESS @ SCALE
  • 10. IT’S ALL AUTOMATION RTB DSP DON’T   focus on acronyms SSP PMP
  • 11. MAKE IT EASIER TO SPEND IN DIGITAL Premium DO   automate Non- Guaranteed all inventory Remnant
  • 12. automation no control GPS DOESN’T DRIVE YOUR CAR FOR YOU
  • 13. COMPUTERS SCARED PEOPLE C:> HUMAN: I WILL REPLACE YOU
  • 16. NOT NEW: JUST BETTER, FASTER CHEAPER RTB HTTP COMPUTER PRIVATE ENFORCED MARKETPLACES SELLING RULES
  • 17. A MORE POWERFUL WORLD BIG ALGO- 197,000 DECISIONS 3 PETABYTES DATA DATA RITHMS PER AD 650 MILLION UVS 1 MILLION TIMES PER SECOND REAL TIME CLOUD 16,000 CPU CORES 40+ GIGABITS DATA / SECOND
  • 18. NEXT: GET TECH OUT OF THE MIDDLE
  • 19. AND GET BUYER & SELLER TOGETHER DEAL ID" TECH UNDERNEATH
  • 20. SUMMARY: AUTOMATION IS HAPPENING acronym confusion
  • 21. WE’VE SEEN THIS STORY BEFORE WE’RE NOT THAT BRILLIANT FINANCE   TRAVEL   RETAIL   ADVERTISING   Premium   NEXT   AUTOMATION Mid  Market   N O W   Remnant   2007  -­‐  2012  
  • 22. @FrankAddante REAL TIME TRADING # 1   R E A C H   P L A T F O R M   A S   M E A S U R E D   B Y   C O M S C O R E