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Digiday+Google Real Time State of the Indutsry

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58
REALTIME DISPLAY ADVERTISING STATE OF THE INDUSTRY February 23, DIGIDAY:ONMEDIA
Transcript
Page 1: Digiday+Google Real Time State of the Indutsry

REAL-­‐TIME  DISPLAY  ADVERTISING  STATE  OF  THE  INDUSTRY  

February  23,    DIGIDAY:ONMEDIA  

Page 2: Digiday+Google Real Time State of the Indutsry

©DIGIDAY  

Digital  Publisher  32%  

Media  Buyer  (AdverHsers  and  

Agencies)  35%  

Media  Trader  or  Intermediary  (including  DSP,  SSP,  Networks  and  Exchanges)  

33%  

Are  you  /  is  your  company  a:  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  quesFon  respondents  n=317  

Page 3: Digiday+Google Real Time State of the Indutsry

MEDIA  BUYERS:  ADVERTISERS  AND  AGENCIES  (N=110)  

©DIGIDAY  

Page 4: Digiday+Google Real Time State of the Indutsry

Agency  80%  

AdverHser  20%  

Are  you  /  is  your  company  a/an:  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=90  

©DIGIDAY  

Page 5: Digiday+Google Real Time State of the Indutsry

Job  DescripFon:  

•  Founder/CEO/Dir./Partner/Sr.  Mgr/SVP:  23%  •  AnalyFcs/Other:  17%  •  CMO/MarkeFng  Dir./CommunicaFons:  16%  •  Planner/Buyer:  15%  •  Media  Dir./SVP  Media:  11%  •  Ad  Ops:  8%  •  CreaFve  Dir.:  6%  •  IT  /Pla\orm:  3%  

©DIGIDAY  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=90  

Page 6: Digiday+Google Real Time State of the Indutsry

14.4%  

13.3%  

8.9%  

17.8%  

11.1%  

21.1%  

13.3%  

0%   5%   10%   15%   20%   25%  

>$100  million  

$50  million  -­‐  $100  million  

$25  million  -­‐  $50  million  

$10  million  -­‐  $25  million  

$5  million  -­‐  $10  million  

$1  million  -­‐  $5  million  

<  $1  million  

Response  %  

Budget  Size  

How  large  is  the  overall  adverHsing  budget  that  you  control?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=90  

©DIGIDAY  

Page 7: Digiday+Google Real Time State of the Indutsry

Brand  14%  

Performance  26%  

A  Mix    of  the    Above  60%  

What  type  of  ad  buyer  are  you  primarily?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=90  

©DIGIDAY  

Page 8: Digiday+Google Real Time State of the Indutsry

Yes  64%  

No  36%  

Other  than  search  ads,  have  you  purchased  digital  adverHsing  using  real-­‐

Hme  buying?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=90  

©DIGIDAY  

Page 9: Digiday+Google Real Time State of the Indutsry

MEDIA  BUYERS:  ADVERTISERS  AND  AGENCIES  WHO  HAVE  USED  REAL-­‐TIME  AD  BUYING  (N=58)  

©DIGIDAY  

Page 10: Digiday+Google Real Time State of the Indutsry

87.8%  

75.5%  

0.0%   10.0%   20.0%   30.0%   40.0%   50.0%   60.0%   70.0%   80.0%   90.0%   100.0%  

2011  (EsHmate)  

2010  

More  Buyers  Plan  to  Purchase  Display  AdverHsing  via  Real-­‐Time  Buying  in  2011  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=49  

©DIGIDAY  

%  Buyers  ReporFng  1%  or  More  of  their  Budgets  Going  to  Real-­‐Time  Buying  

Page 11: Digiday+Google Real Time State of the Indutsry

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=49  

©DIGIDAY  

41%

59%

21%

79%

0%

20%

40%

60%

80%

100%

1-10% 11-100%

% R

espo

nden

ts W

ho D

id a

nd/o

r Will

U

se R

eal-T

ime

Buy

ing

Digital Display Advertising Budget Range

What % of Your Digital Display Advertising Was/Will Be Purchased via Real-Time Buying

2010 2011 (Estimate)

In  2011,  Test  Budgets  Become  Real  Budgets  as  AdverHsers  Expand  Budgets  to  >  10%  

Page 12: Digiday+Google Real Time State of the Indutsry

23%  

43%  

44%  

45%  

55%  

0%   10%   20%   30%   40%   50%   60%  

Universal  frequency  capping  

Transparency  into  charges  or    costs  associated  with  

using  intermediaries  

Access  to  unlimited  inventory  across  ad  

exchanges  

AucHon-­‐based  pricing  

Transparency  into  where  the  ads  are  

running  

%  Respondents  Answering  Most  Important  or  Very  Important  (5-­‐point  Likert  Scale)  

The  most  important/very  important  elements  of  real-­‐Hme  ad  buying  to  adverHsers/agencies    

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=50  

©DIGIDAY  

Page 13: Digiday+Google Real Time State of the Indutsry

4%  

26%  

27%  

27%  

51%  

70%  

0%   10%   20%   30%   40%   50%   60%   70%   80%  

Day-­‐part  signals  

LocaHon-­‐based  signals  

Contextual  signals  

Interest-­‐based  signals  

Audience  signals  (a.k.a.  "third  party"  data)  

RemarkeHng  signals  (a.k.a.  "first  party"  data)  

%  Respondents  Answering  Most  Important  or  Very  Important  (6-­‐point  Likert  Scale)  

Most  important/very  important  filters  or  "signals"  to  adverHsers/agencies  

Other:  EffecFve  CPA  signals  -­‐  by  far  the  #1  issue  for  DR;  Demo  signals  

©DIGIDAY    

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=50  

Page 14: Digiday+Google Real Time State of the Indutsry

41%  

47%  

47%  

67%  

0%   20%   40%   60%   80%  

Pre-­‐negoHated  /  reservaHon-­‐based  buying  from  ad  networks  

Real-­‐Hme  buying  from  ad  networks  or  exchanges  

Real-­‐Hme  buying  via  demand-­‐side  plajorms  

Pre-­‐negoHated  /  reservaHon-­‐based  buying  from  sites  

%  Respondents  Answering  Highest  or  High  SaHsfacHon  (4-­‐point  Likert  Scale)  

Highest  or  high  saHsfacHon  with  the  results  from  buying  digital  adverHsing  the  following  ways:  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=50  

©DIGIDAY    

Page 15: Digiday+Google Real Time State of the Indutsry

10%  

16%  

21%  

26%  

27%  

43%  

53%  

0%   10%   20%   30%   40%   50%   60%  

via  aucHon  from  ad  networks  

via  bidding  interface  from  a  demand  side  plajorm  

via  a  bidding  interface  from  an  ad  exchange  

via  an  API  from  an  ad  exchange  

in  advance  from  ad  networks  /  exchanges  /  DSPs  

in  advance  from  sites  

via  managed  services  from  ad  networks  /  exchanges  /  DSPs  

%  Respondents  Answering  Easiest  to  Use  or  Very  Easy  to  Use  (7-­‐point  Likert  Scale)  

Buying  Methods  as  Ranked  by  Agencies/AdverHsers  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=50  

©DIGIDAY    

Page 16: Digiday+Google Real Time State of the Indutsry

16%  

37%  

47%  

0%   5%   10%   15%   20%   25%   30%   35%   40%   45%   50%  

No  

Undecided  

Yes  

Response  %  

Will  the  benefits  of  real-­‐Hme  buying  (e.g.  beker  performance,  higher  efficiency)  increase  your  

digital  adverHsing  budget  this  year?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=49  

©DIGIDAY    

Page 17: Digiday+Google Real Time State of the Indutsry

14%  

18%  

20%  

32%  

34%  

60%  

0%   10%   20%   30%   40%   50%   60%   70%  

Mobile  rich  media  

In-­‐stream  video  

Mobile  display  

Dynamic  creaHve  

Web  rich  media  banners  

Web  display  banners  

%  Respondents  ReporHng  Always/Extremely  Likely  (10)  or  Very  Likely  (9)  on  Likert  10-­‐point  Scale  

%  Agency/AdverHser  Respondents  Who  are  Always/Extremely  Likely  or  Very  Likely  to  Purchase  the  Following  Kinds  of  Digital  

AdverHsing  via  Real-­‐Time  Buying  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=50  

©DIGIDAY    

Page 18: Digiday+Google Real Time State of the Indutsry

4.0%  

18.0%  

10.0%  

8.0%  

6.0%  

10.0%  

6.0%  

2.0%  

12.0%  

10.0%  

8.0%  

0.0%  

2.0%  

4.0%  

6.0%  

8.0%  

10.0%  

12.0%  

14.0%  

16.0%  

18.0%  

20.0%  

Respon

se  %  

%  of  Online  AdverHsing  Purchased  Direct  from  a  Publisher  

Excluding  search,  in  2010,  what  percent  of  your  online  adverHsing  was  purchased  direct  from  a  publisher  rather  

than  via  an  intermediary  (network,  exchange,  DSP  or  other):  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=50  

©DIGIDAY    

Page 19: Digiday+Google Real Time State of the Indutsry

8.0%   8.0%  

6.0%  

4.0%  

6.0%  

8.0%  

12.0%  

4.0%  

2.0%  

16.0%  

8.0%  

12.0%  

0%  

2%  

4%  

6%  

8%  

10%  

12%  

14%  

16%  

18%  

Respon

se  %  

Of  Media  Purchased  from  Publishers,  %  Bought  by  Audience  Segment  

For  the  media  that  was  purchased  in  2010  directly  from  publishers,  what  percent  was  bought  by  audience  segment  (e.g.  behavioral,  

demographic  or  re-­‐markeHng)?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=50  

©DIGIDAY    

Page 20: Digiday+Google Real Time State of the Indutsry

26.0%  

30.0%  

18.0%  

12.0%  

2.0%  4.0%  

6.0%  

0.0%  2.0%  

0%  

5%  

10%  

15%  

20%  

25%  

30%  

35%  

Unwilling  to  pay  a  premium  

0-­‐10%  Higher  

10%-­‐20%  Higher  

20%-­‐30%  Higher  

30%-­‐40%  Higher  

40%-­‐50%  Higher  

50%-­‐60%  Higher  

60%-­‐70%  Higher  

70%-­‐80%  Higher  

Respon

se  %  

Percentage  Premium  Willing  to  Pay  

When  making  a  network  or  exchange  purchase,  what  percentage  premium  would  you  be  willing  to  pay  (e.g.  in  terms  of  increased  CPM)  to  know  exactly  where/on  what  sites  your  ads  are  running?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=50  

©DIGIDAY    

Page 21: Digiday+Google Real Time State of the Indutsry

6.0%  

38.0%  

30.0%  

12.0%  

4.0%  6.0%  

0%  

5%  

10%  

15%  

20%  

25%  

30%  

35%  

40%  

None   1-­‐3   4-­‐6   7-­‐12   13-­‐20   >20  

Respon

se  %  

#  Networks  

From  how  many  networks  do  you  currently  buy  digital  adverHsing?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=50  

©DIGIDAY    

Page 22: Digiday+Google Real Time State of the Indutsry

14%  

58%  

12%  8%  

4%  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

70%  

None   1-­‐3   4-­‐6   7-­‐12   13-­‐20  

Respon

se  %  

#  Exchanges  

From  how  many  exchanges  do  you  currently  buy  digital  adverHsing?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=50  

©DIGIDAY    

Page 23: Digiday+Google Real Time State of the Indutsry

26.0%  

64.0%  

6.0%  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

70%  

None   1-­‐3   4-­‐6  

Respon

se  %  

#  DSPs  

From  how  many  DSPs  do  you  currently  buy  digital  adverHsing?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=50  

©DIGIDAY    

Page 24: Digiday+Google Real Time State of the Indutsry

10.2%  

22.4%  

16.3%   16.3%  

10.2%  

12.2%  

8.2%  

0%  

5%  

10%  

15%  

20%  

25%  

None   1-­‐3   4-­‐6   7-­‐12   13-­‐20   >20   >100  

Respon

se  %  

#  of  Publishers  

From  how  many  publishers  do  you  currently  buy  digital  adverHsing  directly  (e.g.  not  through  an  intermediary?)  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=49  

©DIGIDAY    

Page 25: Digiday+Google Real Time State of the Indutsry

What,  if  anything,  would  cause  you  to  buy  more  of  your  digital  ad  inventory  via  real-­‐Hme  buying?    

•  Transparency  •  Availability  •  Performance  •  Performance  •  Performance  &  pricing.  •  API's,  robust  reporFng,  and  accurate  

demographic  informaFon.  •  More  analyFcs  to  demonstrate  effecFveness!  •  Increased  ROI  •  beder  interfaces  •  Increased  Rich  Media,  Video,  and  Mobile  

Inventory.  •  Scale,  improved  efficiency  and  improved  

targeFng  •  support  of  rich  media  •  Ability  to  buy  rich  media  and  video  in  larger  

quanFFes  

•  Transparency  •  Having  clients  who  are  "ready"  to  embrace  

the  more  complicated  strategy,  specifically  with  more  creaFves  and  supporFng  technology  (advanced  tracking)  

•  performance  transparency,  precise  bidding  on  segments.  Basically,  what  search  does.  

•  Flexibility  in  budget  approved  by  clients.  •  wider  creaFve  capabiliFes,  ease  of  gemng  

media  live  •  For  Performance  clients  mainly  based  in  a  

CPA  purchase  •  Lower  prices  •  More  premium  inventory.  •  clear  understanding  of  the  technology  and  

algorithms  used.  •  Beder  adribuFon  modeling  •  Premium  inventory  and  site  transparency  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  media  buyer  respondents  n=110,  quesFon  respondents  n=24  

©DIGIDAY    

Page 26: Digiday+Google Real Time State of the Indutsry

MEDIA  BUYERS:  ADVERTISERS  AND  AGENCIES  WHO  HAVE  NOT  USED  REAL-­‐TIME  AD  BUYING  (N=1)  

NOTE:  ONLY  ONE  RESPONDENT  IN  THIS  CATEGORY  –  INSUFFICIENT  FOR  COMPARISON  

©DIGIDAY    

Page 27: Digiday+Google Real Time State of the Indutsry

BUYING  INTERMEDIARIES:  DSP,  SSP,  EXCHANGES  AND  NETWORKS  (N=106)  

©DIGIDAY    

Page 28: Digiday+Google Real Time State of the Indutsry

Demand  Side  Plajorm  (DSP)  

23%  

Sell  Side  Plajorm  (SSP)  

10%  

Ad  Network  29%  

Ad  Exchange  15%  

Other  Intermediary  

23%  

Are  you  /  is  your  company  a/an:  

Other:  Independent  Consultant;  Independent  Media  Trading  Desk;  Data  exchange;  data  provider;  marketplace;  Yield  OpFmizaFon;  Demand  Side  Trading  Desk;  Sorware  soluFon  of  workflow  management  tools  for  digital  media;  Pla\orm;  Data  Management  Pla\orm  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  buying  intermediary  respondents  n=106,  quesFon  respondents  n=47  

©DIGIDAY    

Page 29: Digiday+Google Real Time State of the Indutsry

Job  DescripFon  

•  CEO/CTO/COO/DIR/GM/HEAD/SVP:  35%  •  Biz  Dev:  10%  •  MarkeFng:  10%  

•  Acct.  Mgr/Sales  VP:  10%  

•  Ops/OpFmizaFon:  5%  

•  Product/Engineering:  3%  •  Other:  27%  Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  buying  intermediary  respondents  n=106,  quesFon  respondents  n=58  

©DIGIDAY    

Page 30: Digiday+Google Real Time State of the Indutsry

13.8%  

19.0%  

20.7%  

12.1%  

5.2%  

8.6%  

20.7%  

0%  

5%  

10%  

15%  

20%  

25%  

None  /  NA   1-­‐3   4-­‐6   7-­‐12   13-­‐20   >20   >100  

Respon

se  %  

#  Networks  /  Ad  Exchanges  

How  many  networks  or  ad  exchanges  do  you  currently  use  as  inventory  sources?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  buying  intermediary  respondents  n=106,  quesFon  respondents  n=58  

©DIGIDAY    

Page 31: Digiday+Google Real Time State of the Indutsry

12.1%  

6.9%  

8.6%  

15.5%  

5.2%  

6.9%  

10.3%  

5.2%   5.2%   5.2%  

13.8%  

5.2%  

0%  

2%  

4%  

6%  

8%  

10%  

12%  

14%  

16%  

18%  

Respon

se  %  

%  Media  Buys  Involving  Audience  TargeHng  

For  the  media  buys  that  you  processed  in  2010,  what  percent  involved  audience  targeHng?  

©DIGIDAY    

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  buying  intermediary  respondents  n=106,  quesFon  respondents  n=58  

Page 32: Digiday+Google Real Time State of the Indutsry

14%  

5.2%   5.2%  

10.3%  

2%  

5.2%   5.2%  

1.7%  

6.9%  

0.0%  

5.2%  

0%  

2%  

4%  

6%  

8%  

10%  

12%  

14%  

16%  

0%  /  NA   1-­‐10%   11-­‐20%   21-­‐30%   31-­‐40%   41-­‐50%   51-­‐60%   62-­‐70%   71-­‐80%   81-­‐90%   91-­‐100%  

Respon

se  %  

Of  Network/Exchange-­‐Based  Buying  of  Targeted  Audience  Segments,  %  of  Buying  via  Real-­‐Time  Bidding  

Of  the  network  or  exchange-­‐based  buying  you  did  of  targeted  audience  segments  in  2010,  what  percent  of  that  buying  was  via  real-­‐

Hme  bidding?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  buying  intermediary  respondents  n=106,  quesFon  respondents  n=58  

©DIGIDAY    

Page 33: Digiday+Google Real Time State of the Indutsry

10.3%  

13.8%  

27.6%  

19.0%  

29.3%  

0%  

5%  

10%  

15%  

20%  

25%  

30%  

35%  

Not  Sure   0%/NA   1-­‐50%   51-­‐100%   >100%  

Respon

se  %  

AnHcipated  %  Increase  in  Real-­‐Time  Bidding  Volume  

By  what  percent  do  you  anHcipate  your  volume  in  real-­‐Hme  bidding  will  increase  in  2011?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  buying  intermediary  respondents  n=106,  quesFon  respondents  n=58  

©DIGIDAY    

Page 34: Digiday+Google Real Time State of the Indutsry

34.0%   34.0%  

17.0%  

9.4%  

5.7%  

0%  

5%  

10%  

15%  

20%  

25%  

30%  

35%  

40%  

Rich  Media  (Banners)  

Dynamic  CreaHve  (Banners  

In-­‐stream  Video   Mobile   Mobile  Rich  Media  

Respon

se  %  

Ad  Format  

In  which  category  of  digital  adverHsing  do  you  anHcipate  the  greatest  increase  in  real-­‐Hme  bidding  in  2011?  

Other:  search  re-­‐targeFng;  Performance  AdverFsing  /  RetargeFng;  General  display  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  buying  intermediary  respondents  n=106,  quesFon  respondents  n=53  

©DIGIDAY    

Page 35: Digiday+Google Real Time State of the Indutsry

50.9%  

24.5%  

17.0%  

7.5%  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

Become  more  like  DSPs   Focus  on  an  audience  niche  

Focus  on  a  format  or  plajorm  niche  

Focus  on  a  contextual  niche  

Respon

se  %  

How  Ad  Networks  are  Most  Likely  to  Respond  

How  are  ad  networks  MOST  LIKELY  to  respond  to  the  expansion  of  demand-­‐side  plajorms  (DSPs)?  

Other:  Adopt  technology  similar  to  DSP's  to  apply  to  their  exisFng  network;  Become  exchanges;  increased  specializaFon:  audience,  contextual,  verFcal  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  buying  intermediary  respondents  n=106,  quesFon  respondents  n=53  

©DIGIDAY    

Page 36: Digiday+Google Real Time State of the Indutsry

51.7%  

34.5%  

13.8%  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

Yes   No   N/A  

Respon

se  %  

Answer  

Does  your  network  /  exchange  /  DSP  reveal  the  idenHty  of  the  desHnaHon  site  for  adverHsing  purchased?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  buying  intermediary  respondents  n=106,  quesFon  respondents  n=58  

©DIGIDAY    

Page 37: Digiday+Google Real Time State of the Indutsry

Why  or  Why  Not?    •  varies  w/  client  need  •  We  feel  transparency  is  vital  •  AdverFsers  and  agencies  want  

transparency  •  Clients  desire  it  •  Because  that's  what  Agencies  

want.  •  because  I  agreed  to  a  

minimum  spend  •  buyers  demand  it  in  most  

cases  •  We  provide  full  transparency  

•  That  is  up  to  the  publisher  to  pass  this  informaFon  back  

•  Depends  on  the  publisher  •  our  network  is  blind  •  No  by  default,  but  can  be  Yes  

depending  on  buy-­‐sell  relaFonship  

•  Offering  safety  and  privacy  for  publishers.  

•  not  available  •  I  think  i  can  get  it  if  I  ask  them  

for  it.  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  buying  intermediary  respondents  n=106,  quesFon  respondents  n=15  

©DIGIDAY    

Page 38: Digiday+Google Real Time State of the Indutsry

What's  the  biggest  change  that  you  anHcipate  in  real-­‐Hme  display  adverHsing  in  2011?  

•  Publishers  start  taking  advantage  of  data  /  bid  landscape  to  drive  Guaranteed  sales  

•  More  openness  flexibility  in  informaFon  •  More  •  CreaFng  effecFng  repeat  impressions  in  a  world  in  

which  measurement  of  mulFple  and  pervasive  input  is  an  ever  growing  challenge  with  such  vast  sensory  and  near  overload  of  media  input  in  an  average  day  to  the  average  consumer.  

•  More  RTB  pla\orms  •  More  1st  Fer  quality  inventory  •  More  publishers  making  RTB  inventory  available.  •  More  focus  on  contextual  buying  because  Audience  

has  limitaFons  •  I  believe  cost  will  go  up  as  budgets  are  increased  to  

allocate  a  higher  spend  using  RTB.  •  search  re-­‐targeFng  •  This  really  depends  on  how  the  poliFcs  of  BT  play  

out.  At  this  point  I  see  browsers  making  it  easier  for  people  to  opt  out  of  3rd  party  targeFng  so  I  could  actually  see  that  hurFng  real  Fme  bidding's  growth.  At  the  same  Fme  it  puts  more  power  back  in  the  hands  of  publishers  with  unique  content.  

•  Publisher  Data/unique  adributes/values  being  incorporated  into  bidding  process  

•  more  impressions,  lower  cpms  •  The  addiFon  of  mobile  and  IPTV  •  Real  Fme  based  delivery  of  performance  campaigns  

using  retargrFng  and  user  profiling  •  Privacy  •  more  publisher  controls  to  protect  data  and  

inventory  •  Revenge  of  the  ad  networks  as  agencies  flail  with  all  

their  new-­‐found  power.  •  Since  the  technology  is  immature,  I  expect  that  

there  will  be  more  confusion  between  market  players  about  RTB  than  actual  benefits.  

•  Moving  from  simple  banners  to  rich  media  across  mobile  and  video  

•  Model  driven  bidding  (current  RTB  bids  in  the  industry  are  largely  sFll  manually  placed).  

•  transparency  on  winner  of  the  impressions,  and  margin  that  the  publishers  are  loosing  while  not  working  direct.  

•  We  will  see  a  greater  shir  towards  exchange  buying  in  2011.  

©DIGIDAY    

Page 39: Digiday+Google Real Time State of the Indutsry

What's  the  biggest  change  that  you  anHcipate  in  real-­‐Hme  display  adverHsing  in  2011?  (cont.)  

•  More  accuracy  allowing  more  niche  requests  make  a  DSP  funcFon  similarly  to  a  direct  buy.  More  need  for  educaFon  and  how  to  properly  use  a  DSP.  

•  more  money  spent  online  in  banner  adverFsing  

•  CPMs  for  well  known  brands  going  up,  mid-­‐long  tail  going  way  down  

•  More  and  more  exchanges  /  DSPs  will  be  taking  part  in  RTB  as  the  market  moves  forward  toward  allowing  both  adverFsers  and  publishers  having  more  control  over  their  inventory  /  revenue.  

•  Shir  towards  more  exchange  traded  buys  •  There  will  be  more  innovaFon  around  

publisher  controls.  •  pub  controls  •  Efficiency  for  adverFsers.  

•  Increase  in  compeFFon  •  greater  prevalence  •  More  formats  •  PercepFon  •  Increased  demand  •  High  Density  RetargeFng  from  leading  sell  

side  pla\orms  drasFcally  increases  yield  from  RTB  exchanges.  

•  More  publisher  controls  •  More  publishers  opening  up  their  inventory  

to  exchanges  /  RTB  •  mobile  becoming  relevant  •  cross  pla\orm  •  players  will  need  to  invest  heavily  to  achieve  

the  scale  required  to  be  successful  •  Growth  and  beder  used  for  what  it  should  be  

used  for;  dynamic  pricing  based  on  the  audience.  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  quesFon  respondents  n=43  

©DIGIDAY    

Page 40: Digiday+Google Real Time State of the Indutsry

PUBLISHERS  (N=101)  

Page 41: Digiday+Google Real Time State of the Indutsry

Job  DescripFon:  •  CEO,  President,  Publisher,  GM,  SVP,  CRO:  28%  •  Director/Digital  Ad  Ops:  26%  •  Sr.  Sales:  14%  •  Biz  Dev/Strategic  Dir:  11%  •  ExecuFve  Dir.  Products/  Prod.  Mgr:  9%  •  CIO/Technology:  5%  •  MarkeFng  VP/PR:  5%  •  Other  (e.g.  “VP”):  2%  

©DIGIDAY  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  digital  publisher  respondents  n=101,  quesFon  respondents  n=57  

Page 42: Digiday+Google Real Time State of the Indutsry

©DIGIDAY  SOTI  Real-­‐Time  Display  AdverFsing    2/2011        Publishers  N=65  

24.2%  

6.1%  

3.0%  

15.2%  

9.1%  

27.3%  

15.2%  

0%   5%   10%   15%   20%   25%   30%  

>$100  million  

$50  million  -­‐  $100  million  

$25  million  -­‐  $50  million  

$10  million  -­‐  $25  million  

$5  million  -­‐  $10  million  

$1  million  -­‐  $5  million  

<  $1  million  

Response  %  

Ad  Re

venu

e  

How  high  was  your  ad  revenue  in  2010?  

©DIGIDAY  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  digital  publisher  respondents  n=101,  quesFon  respondents  n=65  

Page 43: Digiday+Google Real Time State of the Indutsry

18.5%  

46.2%  

15.4%  

9.2%  

3.1%   4.6%  0.0%  

3.1%  

0%  5%  10%  15%  20%  25%  30%  35%  40%  45%  50%  

None   1-­‐3   4-­‐6   7-­‐12   13-­‐20   >20   >100   Not  sure  

Respon

se  %  

#  Ad  Networks  

With  how  many  ad  networks  do  you  work  with  directly?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  digital  publisher  respondents  n=101,  quesFon  respondents  n=64  

©DIGIDAY  

Page 44: Digiday+Google Real Time State of the Indutsry

28.6%  

55.6%  

7.9%  

1.6%   0.0%   1.6%   0.0%  

4.8%  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

None   1-­‐3   4-­‐6   7-­‐12   13-­‐20   >20   >100   Not  sure  

Respon

se  %  

#  Yield  Managers,  Sell-­‐Side  Plajorms,  Ad  Exchanges  

With  how  many  yield  managers,  sell-­‐side  plajorms  and  ad  exchanges  do  

you  currently  work  with?  

©DIGIDAY  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  digital  publisher  respondents  n=101,  quesFon  respondents  n=63  

Page 45: Digiday+Google Real Time State of the Indutsry

68.8%  

26.6%  

35.9%  

40.6%  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

70%  

80%  

Online  Web  Site(s)   Digital  Video  Site(s)   Mobile  Site(s)/Apps   All  of  the  above  

Respon

se  %  

Which  of  the  following  does  your  company  publish?  

Other:  Online  +  Mobile;  iPad/iDevice  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  digital  publisher  respondents  n=101,  quesFon  respondents  n=64  

©DIGIDAY  

Page 46: Digiday+Google Real Time State of the Indutsry

51.6%  

12.5%  

17.2%  

6.3%  

35.9%  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

Online  Web  Site(s)  

Digital  Video  Site(s)  

Mobile  Site(s)  /  Apps  

All  of  the  above  

None  of  the  above  

Respon

se  %  

In  2011,  for  which  of  the  following  channels  will  you  make  your  adverHsing  inventory  available  through  an  exchange  or  real-­‐Hme  bidding  

plajorm?  

©DIGIDAY  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  digital  publisher  respondents  n=101,  quesFon  respondents  n=64  

Page 47: Digiday+Google Real Time State of the Indutsry

PUBLISHERS  WHO  USE  REAL-­‐TIME  BIDDING  (N=33)    

Page 48: Digiday+Google Real Time State of the Indutsry

0  

1  

2  

3  

4  

5  

6  

7  

8  

0%  

1-­‐10%  

11-­‐20%

 

21-­‐30%

 

31-­‐40%

 

41-­‐50%

 

51-­‐60%

 

62-­‐70%

 

71-­‐80%

 

81-­‐90%

 

91-­‐100

%  

Not  

sure  

Online  Display  Banners  In-­‐Stream  Video  Mobile  Media  

What  percent  of  your  ad  inventory  on  the  following  channels  do  you  expect  will  be  sold  through  an  exchange  

or  other  real-­‐Hme  bidding  plajorm  in  2011?    

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  digital  publisher  respondents  n=101,  quesFon  respondents  n=33  

©DIGIDAY  

Page 49: Digiday+Google Real Time State of the Indutsry

0  

0.05  

0.1  

0.15  

0.2  

0.25   25%  

18.80%  

18.80%  

6.30%  

3.10%  9.40%  

7%  

17%  

3%  

3%  

16.10%  

9.70%  

3.20%  

16.10%  

6.50%  

Online  display  banners  

In-­‐stream  video  

Mobile  

Percent  of  your  ads  on  these  channels  that  will  be  sold  via  exchange  or  other  real-­‐Hme  bidding  plajorm  in  2011  

©DIGIDAY  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  digital  publisher  respondents  n=101,  quesFon  respondents  n=33  

Page 50: Digiday+Google Real Time State of the Indutsry

48.5%  

27.3%  24.2%  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

Yes   No   Don't  Know  

Will  the  current  rise  in  spending  through  real-­‐Hme  ad  buying  cause  you  to  increase  the  amount  of  inventory  you  sell  through  an  exchange  or  other  RTB  plajorm?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  digital  publisher  respondents  n=101,  quesFon  respondents  n=33  

©DIGIDAY  

Page 51: Digiday+Google Real Time State of the Indutsry

Why  or  Why  Not?    

•  expected  rise  in  yield  •  If  the  demand  is  there  to  increase  yield  

•  Need  to  conduct  a  test  •  We  will  be  evaluaFng  this  before  making  a  decision  

•  we'll  want  to  generate  more  revenue  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  digital  publisher  respondents  n=101,  quesFon  respondents  n=5  

©DIGIDAY  

Page 52: Digiday+Google Real Time State of the Indutsry

11%  

21%  

28%  

41%  

47%  

48%  

0%   10%   20%   30%   40%   50%   60%  

Beder  price  for  our  audience  quality/characterisFcs  

Ease  of  use  /  Efficiency  

Access  to  beder  targeFng  technology  

Access  to  more  /  undiscovered  buyers  

Ability  to  tap  bigger  budgets  

Higher  sell-­‐through  

%  Respondents  Answering  Most  Important  or  Very  Important  (6-­‐point  Likert  Scale)  

What's  the  most  important  advantage  to  you  of  making  your  inventory  available  on  an  exchange  or  other  real-­‐Hme  

bidding  plajorm?  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  digital  publisher  respondents  n=101,  quesFon  respondents  n=33  

©DIGIDAY  

Page 53: Digiday+Google Real Time State of the Indutsry

10%  

26%  

37%  

37%  

48%  

50%  

0%   10%   20%   30%   40%   50%   60%  

ability  to  block  specific  categories  of  buyers  

ability  to  block  ad  technologies  

ability  to  maintain  anonymity  

custom  views  to  preferred  buyers  

protecHons  against  data  squakers  

protecHons  against  bad  ads  (e.g.  malware)  

%  Respondents  Answering  Most  Important  or  Very  Important  (6-­‐point  Likert  Scale)  

%  Digital  publishers  who  report  the  following  factors  as  most  important  or  very  important  in  their  decision  regarding  how  much  or  what  inventory  to  make  available  on  an  exchange  or  other  real-­‐

Hme  bidding  plajorm  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  digital  publisher  respondents  n=101,  quesFon  respondents  n=32  

©DIGIDAY  

Page 54: Digiday+Google Real Time State of the Indutsry

PUBLISHERS  WHO  DON’T  USE  REAL-­‐TIME  BIDDING  (N=23)    

Page 55: Digiday+Google Real Time State of the Indutsry

Why  Haven’t  You  ParHcipated  in  Real-­‐Time  Bidding  

All  of  our  digital  inventory  is  sold  by  internal  sales  people  or  authorized  rep  firms;  we  don't  parFcipate  in  any  ad  networks  or  exchanges  

We  sell  some  of  our  inventory  via  networks  and  exchanges,  but  only  at  a  pre-­‐approved  price  

Other:    •   Our  sites  are  always  near  sold  out.  We  sell  more  ads  that  run  on  exchanges.    •   Does  not  seem  to  be  worth  the  effort  to  swap  over.  

©DIGIDAY  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  digital  publisher  respondents  n=101,  quesFon  respondents  n=23  

Page 56: Digiday+Google Real Time State of the Indutsry

33%  

38%  

41%  

43%  

55%  

64%  

0%   20%   40%   60%   80%  

protecHons  against  data  squakers  

ability  to  block  ad  technologies  

custom  views  to  preferred  buyers  

ability  to  maintain  anonymity  

ability  to  block  specific  categories  of  buyers  

protecHons  against  bad  ads  (e.g.  malware)  

%  Respondents  Answering  Most  Persuasive  or  Persuasive  (6-­‐point  Likert  Scale)  

%  Digital  publishers  finding  a  feature  most  persuasive  or  very  persuasive  for  making  their  ads  available  on  an  exchange  or  other  

real-­‐Hme  bidding  plajorm  

Other:  Significantly  increased  revenue;  Ability  to  set  a  floor;  knowing  it  would  not  cannibalize  our  display  business.  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  digital  publisher  respondents  n=101,  quesFon  respondents  n=22  

©DIGIDAY  

Page 57: Digiday+Google Real Time State of the Indutsry

What  is  the  biggest  challenge  you  face  as  a  digital  publisher  given  the  rise  of  ad  networks  and  exchanges  and  what's  your  soluHon?  

•  Our  soluFon  is  to  take  advantage  of  the  ad  tech  available  and  use  it  to  run  our  own  trading  desk  using  data  that  is  *exclusive*  to  us  

•  data  ther  and  percepFon  that  audience  buying  is  effecFve.  •  Too  many  choices  and  too  much  inerFa.  It  requires  a  leap  of  faith  to  make  a  change  in  the  soluFon,  and  an  

organizaFon  wants  to  know  it  will  be  worth  the  labor  invested.  •  Being  forced  to  use  them  by  the  industry  •  Promise  of  a  decent  eCPM,  reality  that  it  isn't  any  beder  than  remnant  has  always  been....  •  CreaFvity  and  brand  integraFon  are  the  great  equalizers.  Exchanges  are  great  for  DR,  but  branding  will  rise  

again  and  that's  where  the  crossroads  of  quality  and  value  live.  That  is  where  the  higher  CPM  will  exist.  Networks  are  great  for  dumbing  down  media  to  its  lowest  denominator.  

•  We're  a  flash  in  flash  environment.  Most  networks  cannot  work  in  this  environment.  As  a  result,  we  have  to  work  with  VAST  1.0  and  VAST  2.0,  but  many  networks  cannot  accommodate  this  as  well.  

•  commodiFzaFon  of  the  brand  •  not  cannibalizing  our  display  business  •  Maintaining  CPM  •  Since  price  is  being  driven  down,  our  soluFon  must  be  to  add  value  through  custom,  high-­‐impact  

opportuniFes  and  the  guarantee  of  volume,  context,  and  compeFFve  exclusivity.  •  Blocking  ads  and  increasing  revenue  •  Remnant  inventory  eaFng  into  our  direct  sales  efforts  -­‐-­‐  both  on  a  straigh\orward  buying  relaFonship,  AND  

an  indirect  data  collecFon  relaFonship.  They  both  hurt  our  business!  

©DIGIDAY  

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317,  digital  publisher  respondents  n=101,  quesFon  respondents  n=14  

Page 58: Digiday+Google Real Time State of the Indutsry

DOWNLOAD  OUR  SLIDES  FROM  DM2PRO.COM  /  DIGIDAY  PRESENTATIONS  

WATCH  THE  VIDEO  REPLAY  OF  GOOGLE’S  PRESENTATION  AT    HTTP://WWW.LIVESTREAM.COM/DIGIDAY    

©DIGIDAY    

Source:  Digiday  and  Google,  Real-­‐Time  Display  AdverFsing  State  of  the  Industry,  February  23,  2011,  total  survey  respondents  n=317  


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