Post on 18-Dec-2014
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WerbeplanungJuly 11, 2013
Jay Stevens, GM & SVP International
@jayrstevens
THE TRUTH ABOUT RTB & PRIVATE MARKETPLACES
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PREMIUM PUBLISHERS TRUST RUBICON PROJECT
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GLOBAL SCALE
Los Angeles
Seattle
AtlantaNew York
London
ParisHamburg
Sydney
San FranciscoLas Vegas
Salt Lake City
Phoenix Alabama
OfficesRemote People
Los Angeles Corporate Headquarters
HR, 200+ employees
FrancePublisher Development Account Management
Germany Publisher Development Account Management
AustraliaPublisher DevelopmentAccount Management
United Kingdom EU HQPublisher Development Account Management
Milan
ItalyPublisher Development Account Management
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RUBICON PROJECT IMPRESSIONS IN EUROPE
50+ billionPer month
14B
11B
5B
2.6B
4.5b
0.7B
2B
2B
1B
0.5B
0.5B
1B
1B
2.2B
1B
1B
2.4B
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WHAT IS RTB & HOW DOES IT WORK?
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HOW RTB WORKS
RTB bid system
$3.25$3.25
2nd highest bid (“charge price”)
is accepted
ad call
$3.25
- A 2nd price auction gives the highest paying bidder the ad call at the 2nd highest price
- Publishers have complete control over who is allowed to bid
non-RTBdemand sources
On behalf of:$4.17
On behalf of:
$0.83
$2.09
$0.25
$1.16
$4.17
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RTB – BENEFITS FOR BOTH BUYERS & SELLERSMORE LESS
Efficiency Work on manual, repetitive tasks
Speed Human error
Margins Fax
Insight Excel
Revenues 20-30% operational costs
= more time to focus on high value creative partnerships
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RTB = THE PROTOCOL FOR ONLINE AD TRADING
• Transparent, industry-agreed standard shared by all operators in the market
• Like HTML is for the web• Authorised and governed by IAB• Granular controls to protect direct sales
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RISE OF THE AGENCY TRADING DESK
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THE PROBLEM RTB IS AIMING TO SOLVE
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WHICH TOOL IS POWERING 80% OF DIGITAL SALES?
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EXCEL
http://www.nextmark.com/2013/03/what-we-love-hate-and-desire-in-our-digital-media-jobs// by NextMark
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RESULT: THE DIRECT MEDIA BUY IS HIGHLY INEFFICIENT
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SOLUTION: AUTOMATION AT SCALE
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FINANCE TRAVEL RETAIL ADVERTISING
Premium NEXT
Mid Market
Remnant 2007 - 2012
AU
TO
MA
TIO
N
NOW
THIS HAS HAPPENED BEFORE
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WHAT IS A PRIVATE MARKETPLACE?
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DEFINITION & BENEFITS OF PRIVATE MARKETPLACES
DEFINITION: A direct deal between an individual buyer and a publisher, executed through the RTB protocol.
BENEFITS:o Introduce new advertiserso Reduce the cost of managing performance advertiserso Leverage strength in creative solutions to take a larger share of
displayo Capture spend from existing advertisers without causing channel
conflicto Leverage existing trading agreements for preferential pricingo TIP: Use the Bid Landscape Report as a ‘feedback loop’ for new
advertisers & PMPs
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RTB IN THE INVENTORY STACK
CPM
Class 2Non-Guaranteed
Class 1PremiumPremium
RTB
Networks & Exchanges
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PRIVATE MARKETPLACES BLURRING THE LINE
Standard RTB
First Right/PrivatePremium
Preferred(Floor Override)
Gua
rant
eed
Non
-Gua
rant
eed
Premium
RTB
Networks & Exchanges
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FUTURE OF THE AGENCY?
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GROWTH OF PRIVATE MARKETPLACE DEALS
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A VISION SHARED
‘Anything that can be transacted automatically will be’Katie Eyton, Executive Director, Digital, Manning Gottlieb OMD
‘Over the next three to five years, you will see that the majority of digital advertising is being traded through programmatic systems’ Brian Lesser, CEO, Xaxis
‘Private marketplaces are another step towards what could be the majority of digital ad spend going through platforms’ Marco Bertozzi, MD EMEA, VivaKi
‘All ads will be traded programmatically within five years.’Jamie Labate, MD of Advertising, Dennis Publishing & Chair of UK Association of Online Publishers Commercial Committee
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RTB – FEARS & SOLUTIONSFEAR SOLUTION
Channel Conflict Granular Controls in RTB
CPMs not as High as Direct Sales CPMs in Private Marketplaces as High & Higher, With Overhead Costs Removed
Loss of Jobs New Roles Created: Among them, Analysts & Yield Managers
Lack of Skills Training & Guidance Provided by Consultative Tech Partner
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jay@rubiconproject.com
@jayrstevens
Thank You