The Future of online advertising seminar Cadreon Karel Goethals

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1 I PROGRAMMATIC ADVERTISING – THE FUTURE IS NOW MARCH 31, 2015

Transcript of The Future of online advertising seminar Cadreon Karel Goethals

1 I

PROGRAMMATIC ADVERTISING – THE FUTURE IS NOW

MARCH 31, 2015

2 I

ONLINE ADVERTISING – A BRIEF HISTORY

Real-time marketplace with large pool of liquid inventory, most of it not sold to direct buys.

dCPM / Low CPM

Ads sold via direct transactions between advertisers/agencies and publishers/sites

Reservation buying

Fixed CPM

Beginning 2001 2005 2010 Now & future

Fixed price

High CPM

Huge demand

Little supply

Traffic

increases

Prices go down

More supply

Performance

ROI

Retargeting

Technology

AdExchanges

RTB 1.0

Audience

buying

Programmatic

Automation

Data

Every media

Networks Programmatic/AdExchange

Low CPM / CPC

Networks aggregated inventory and sold to advertisers, mostly sold on a CPC buying model

3 I

WHY NOW? ALGORITHMS RULE THE WORLD

AMAZONYOUTUBE

FACEBOOK

HEALTH SERVICES

QUANTIFIED SELF

ONLINE DATING

CRIME PREVENTION?

ONLINE ADVERTISING

4 I

WE HAVE THE DATA, BUT DO WE USE THEM?

Now we gather 5 exabytes of data every 2 days= 5.000.000.000.000 GB= the first 2003 years of humanity

5 I

THE BIG CHANGE

ALGORITHMS + TECH + BACKBONE

=

DECIDE IN REAL TIME BASED ON DATA

IMPRESSION BY IMPRESSION

REAL TIME – 10 MILLISECONDS

DYNAMIC PRICING

RETARGETING

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LITTERALY

PROGRAMMATIC BUYING REFERS TO THEUSE OF SOFTWARE (ALGORITHM BASED) TOPURCHASE DIGITAL ADVERTISING (DATA-DRIVEN DECISIONS AT THE IMPRESSIONLEVEL) AS OPPOSED TO THE TRADITIONALPROCESS THAT INVOLVES HUMANNEGOTIATIONS, MANUAL IO’S AND MANUALBUYING OPTIMIZATION.

7 I

THE OUTCOME

(R)EVOLUTION

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OUTRULE CONFUSION

from branding to direct response

PROGRAMMATIC BUYING

REAL TIME BIDDING

9 I

WE’VE COME A LONG WAY

PURE RTB with STANDARD BANNERS

• MOBILE/VIDEO/SOCIAL

• PRIVATE MARKETPLACES

• RICH MEDIA

10 I

HOW DOES THIS ALL COME TOGETHER?

OPEN EXCHANGE PREDICTIVE

PRIVATE DEAL PEBBLEMEDIA/NEWS

PRIVATE DEAL SKYNET/SD MEN

PRIVATE DEAL OUTLOOK

FACEBOOK ECHANGE RETARGETING

PRIVATE DEAL HI-MEDIA/AUTOSCOOT24

PRIVATE DEAL RICH MEDIA IMPACT/JUSTPREMIUM/SPORT

RTB

NON RTB FLAT PRICE

RTBHIGH BID

RTB

RTBHIGH BID

RTBLOW BID

NON RTB GUARANTEED

PRICE

11 I

THE BELGIAN LANDSCAPEO

pe

n E

xch

ange

Exchange Inventory

MORE THAN 1.000.000 SITES

SSP Inventory through Private Deal

DISPLAY INVENTORY (12 billion imps/month)

Direct Buy inventoryPri

vate

Exc

han

ge

DIRECT CONNECTION TO ANY PAGE OF ANY SECTION OF ANY SITE OF ANY PUBLISHER … ( NO SSP NEEDED)

12 I

BELGIAN PROGRAMMATIC LANDSCAPE,TRADING DESKS, WHO’S IN ?

AG

EN

CY

TR

AD

ING

DE

SK

S

IND

EP

EN

DE

NT

TR

AD

ING

DE

SK

S

13 I

THE LONG AND WINDING ROAD

Aiming towards 50% automation

—Matt Seiler