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Adtech Ecosystem Overview David Judd, 3Rd July 2015 the Evolution of Display Advertising Buyside

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Adtech Ecosystem Overview David Judd, 3Rd July 2015 the Evolution of Display Advertising Buyside 02 – AdTech ecosystem overview David Judd, 3rd July 2015 The Evolution of Display Advertising Buyside . CPM and Direct to Publisher . Growth of publishers led to Ad Networks . The birth of fragmentation . Decrease in CPM and birth of CPC . Further decrease in CPM and CPC . Networks enabled clients to reach multiple . Concerns around buying the same audiences (unique users) audiences (unique user) 2, 3, & 4x . The birth of the Ad Exchange . Birth of the DSP and Agency Trading Desk . Mature RTB ecosystem ₋ Manage Audiences ₋ Ability to manage ₋ Bid on media • Audiences ₋ Manage multiple publishers • Bidded Buying . Ability to buy media w/o speaking to pus • Campaign Goal The Evolution of Display Advertising Sellside . Birth of the SSP allows publishers to: . CPM and Direct to Advertiser . Birth of the DSP and Agency Trading Desk adds new ₋ Allows Publishers to plug inventory into Publishing pains: multiple ad exchanges/DSP’s ₋ Greater Fragmentation ₋ Manage Yield ₋ Harder to Manage Yield and eCPM’s ₋ Manage and monitor eCPM’s ₋ Audience Buying makes booking and deliver ₋ Adjust inventory outlets more challenging The advertising space has become increasingly complex..... 4 .....followed by mobile. 5 The landscape complexity is borne out of the demand for programmatic targeting on the buy-side, and yield optimisation on the sell-side Landscape architecture 7 Value Chain: DSPs Ad Tech Platform / Channel Capabilities Shortfalls Key Players - Attribution concerns: Cookie synching - Most of the the key players in the DSP and device ID matching to audience space have integration with a customer’s profiles that are accessible via SSP’s is a own or third party data providers as well as technical capability that is still under a integration with the major ad servers major spotlight and thus there will likely - MediaMath and/or accessable API’s to build on be more partnerships formed between - DataXu DSP - Demand Side Platform - Bid-forecasting tools allow advertisers DMP’s and DSP’s to support the - Turn the ability to predict the unique user reach capability to match data across - Invite Media (Google) and impression availability platforms. for a certain audience segment. - Automated optimization: Most DSP's - Individually value each ad impression. still have a weak campaign peformance optimisation algorithm. 8 Value Chain: Ad Exchanges Ad Tech Platform / Channel Capabilities Shortfalls Key Players - Systematic efficiency gains: Ad campaigns go live quicker as there is far - Brand advertisers are still seeking less human intervention (sales, ad the availability of higher quality operations, etc). Employees also spend inventory on these platforms. less time manually managing and - Viewability and brand safety have optimising yield across multiple ad been the major criticisms of AdX networks and sources of demand for usage in 2014. However, initiatives indirectly sold ad space. such as the IAB’s standards on - AppNexus - Complete transparency and control for Ad Exchanges viewability and AppNexus’ Certified - Google Ad Exchange Buyers and Sellers: Buyers have control Supply programme, identifying the - OpenX of where their ads will run and can safest and most trusted inventory on choose to buy inventory only on brand- the internet, providing buyers with safe sites. Sellers have the option to financial guarantees that the create "private ad slots" to inventory they are purchasing is valid, allow only trusted advertiser partners will help. into certain ad space, and assign variable pricing floors depending on the buyer. 9 Value Chain: SSP Ad Tech Platform / Channel Capabilities Shortfalls Key Players - More and more premium Publishers are making their content and audiences available programmatically, as this eliminates the reliance on sales teams and driving sales targets. - This is relevant because Advertisers are moving away from costly human media buying teams and utilising their - Publishers are concerned about Agency Trading Desks to trade media programmatic driving the value of through real-time auctions. their inventory down as well as - Publishers can control price floors foregoing the direct relationships with - Rubicon SSP - Sell Side Platform according to demand source and do Advertisers and Agencies. SSPs were - Pubmatic Direct Deals to directly negotiate and set created in part to help publishers - AOL rules to accommodate specific/unique more efficiently aggregate and terms with buyers manage their relationships with - The capability to do inventory multiple networks and ad buyers. segmentation is key (defining which sections/placements/etc. are made available for purchase) and organising inventory into channels with relevant pricing e.g. Branded, Anonymous, by verticle, etc - Real-time reporting 10 Value Chain: Vertical Ad Network Ad Tech Platform / Channel Capabilities Shortfalls Key Players - A vertical ad network is dedicated to deliver advertising on a specific audience. The network is typically made up of smaller niche properties specialised - Low impression volumes Verticle Ad Network around a specific content (e.g. Lifestyle, - Ideas People Channel - Low reach Travel). - Audience targeting and segmentation is more precise for Advertisers and hence price is higher Value Chain: Horizontal Ad Network Ad Tech Platform / Channel Capabilities Shortfalls Key Players - Google Advertising Network - Microsoft Media Network - Burst Media - AOL Advertising Network - A horizontal ad network offers scale in addition to targeting capabilities for - Reach is broad Advertisers. - Considered a "bind buy" as the Horizontal Ad Network - Delivers high impression volumes per Advertiser does not have the ability to day. target specific audience segments, - Generally RON and ROS inventory placements, etc for their ads to run on - Lower rates 12 Value Chain: Mobile Ad Networks Ad Tech Platform / Channel Capabilities Shortfalls Key Players - These networks work very much like traditional ad networks, but focus on - Mobile development overhead: supplying ads to mobile devices as part of Technical implementation of ad server - Most of the largest suppliers of responsive web or app experiences. SDK's into the Advertisers' and mobile content - such as Apple (iAd) - Many mobile content publishers utilise Mobile Ad Network Publishers' apps to allow the mediation and Google (AdMob) - have secured an ad enabler known as the mediation layers to operate effectively, is their own mobile ad networks. layer or a similar system, such as an complex. And an understanding of the Facebook has the Audience Network. adapter, allowing them to serve ads from advertising eco-system is required. a variety of differnet mobile ad networks easily. 13 Value Chain: Rich Media and Video Ad Networks Ad Tech Platform / Channel Capabilities Shortfalls Key Players Video ad measurement and fraud detection: Typicall, video ad networks utilise different analytics and measurement standards compared to - Video and rich media advertising are standard display ad networks, basing the fastest growing areas in the revenue largely on what's known as - Adap.TV (AOL Networks) advertising landscape and is proven to "potential reach," a total based on the - Brighcove be the most effective means to drive combination of website visitation Video and Rich Media Networks - Videology brand engagement. Thus more brand statistics (such as Comscore) along - Auditude (Adobe) dollars are shifting to these medums with a ratio of all the inventory being - YuMe served by the ad network. - Video ad networks have been under intense scrutiny with regards to fraudulant ad measurement in the last 12 months 14 Value Chain: Targeted Networks Ad Tech Platform / Channel Capabilities Shortfalls Key Players - Targeted networks strike the balance - There should be careful consideration between providing the scale of a given to the technical viability and horizontal ad network with the audience effort of standardising creative formats and contextual targeting capabilities of a across multiple formats - Collective Targeted Networks verticle ad network. - The standardisation of meaurement - Specific Media - These networks also generally boast across platforms (e.g. TV versus digital cross platform capabilities and support for video) should be another consideration multiple ad formats including video, in terms of the overall optimisation of mobile and rich media campaigns 15 Value Chain: Performance Networks Ad Tech Platform / Channel Capabilities Shortfalls Key Players - Performance-based ad networks, utilise ad targeting across multiple categories including demographics, search intent, page context, in-market intent, interests - These networks typically partner and lifestyles among other categories, to with numerous data providers to allow advertisers to choose specific enhance their targeting capabilities, websites or even specific content on and as such the Advertiser should - RocketFuel those websites or even a specific consider employing methods to - Criteo Performance Networks discussion on social media sites, and tailor deduplicate data such as using - Struq their ads specifically for these audiences. anonymous identifiers. - Many performance-focused advertising - Consumer privacy should also be a networks use contextual and behavioral consideration when deploying these targeting, as well as basic targeting like solutions geographic or demographic information, to place ads only in front of those users likely to find them helpful, click and make a purchase 16 Demand Side Platforms and Cross Device Capabilities
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