ben fox discussesthe future of media buying

THE PAST, PRESENT, AND FUTURE OF

MEDIA BUYING, EXCHANGES, AND RTB

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300 YEARS OF MEDIA BUYING

1700s

• Newspaper and magazine media buying

• First direct sales

150 YEARS OF MEDIA BUYING

1880s-1930s

• First agency buying

from print and then

radio

1950s

• Television Spots

• First TV upfronts focused

on new car models

1990s

• Digital media buying

10 YEARS OF DIGITIAL MEDIA BUYING

2000-2002

• Overture / Goto Patent

• Search listings

• $2.9BB for Engage

• $1.6BB for Overture

2003-2004

• Google launches Adsense

• SEMs begin

programmatic bidding

• APIs

2005-2006

• Exchanges created -

Manual Bidding

• Display

2008-2009

• RTB bidding starts on

SDC/FOX and shortly

thereafter – through appnexus

• Who/What was the first RTB

bid?

CURRENT STATE OF EXCHANGES

2010-2012Exchanges broken into3 CATEGORIES:

Meta LayerBroadVertical

Provide 5 PRIMARY MEDIA TYPES

DIRECT TO

PUBLISHERS

MEDIA BUYING EVOLUTION

Sites

Homepages

Sponsorships

EXCHANGES &

AD NETWORKS

Audience

Demos

Psychos

Behaviors

RTB ON

EXCHANGES

Users

Retargeting Cookies

TODAY ALL

THREE ARE

USED IN

PARALLEL BY

BUYERS

Source [2011 AMG industry estimates]

2011 ESTIMATED STATS FOR EXCHANGES BUYING & RTB

TOTAL

[3 .9% GROWTH]

$160 BB

RTB TODAY:0.5% of advertising is RTB enabled, bought and sold

$1.4 BB[ 5 0 % G R O W T H ]

EXCHANGES

$800 MM[ E S T I M A T E ]

RTB

[ 1 0 % G R O W T H ]

$26 BB

ONLINE

Source: Emarketer, Forrester, AMG Industry Interviews

Average Estimated

RTB CPM

2009 2012 2015

$0.33

$1.35

$2.70?

$3.00

$2.00

$1.00

AGENCIES NEED NEW BUYING METRICS IN A WORLD OF RTB

WHAT IS SO DIFFERENT ABOUT EXCHANGE BUYING?

WHY CAN RTB BE SO EFFECTIVE?

MANUAL MEDIA BUYING RTB

125

SITES

500

SITES

250,000

SITES

▶ Most conversions

▶ Adjust and optimize (daily/weekly)

▶ Inventory that converts

sometimes unavailable

1

MILLION

SITES

▶ Incremental conversions you might not have gotten

▶ Optimize more quickly (instantly every second)

▶ Diversify your spend

▶ Focus more quickly on higher performing sites

TOTAL CONVERSIONS TOTAL CONVERSIONS

WHY CAN RTB BE SO EFFECTIVE?

MANUAL MEDIA BUYING RTB

125

SITES

500

SITES

250,000

SITES

▶ Most conversions

▶ Adjust and optimize (daily/weekly)

▶ Inventory that converts

sometimes unavailable

1

MILLION

SITES

▶ Incremental conversions you might not have gotten

▶ Optimize more quickly (instantly every second)

▶ Diversify your spend

▶ Focus more quickly on higher performing sites

TOTAL CONVERSIONS TOTAL CONVERSIONS

BUSINESS AND TECHNOLOGY CAPITAL INVESTMENT

RTB TECHNICAL WORKFLOW

RTB TECHNICAL WORKFLOW

RTB TECHNICAL WORKFLOW

SLA’sCOMPARISON

Search Feeds // 50ms Display Ads // 500ms RTB // 100ms Blink of an eye // 50msVideo Ads // 1000ms

6 bi l l ion t imes/day for Google US ful l feed

BIDMILLIONS OF TIMES FOR EVERY BLINK

THE KEY TO WINNING AT RTB IS YOUR PROFILE STORE

THE KEY TO WINNING AT RTB IS YOUR PROFILE STORE

THE KEY TO WINNING AT RTB IS YOUR PROFILE STORE

THE NTH SCREEN IS HERE! INFINITE INVENTORY!

THE NTH SCREEN IS HERE! INFINITE INVENTORY!

CONSUMERS WILL BE LIVING IN A REAL TIME WORLD!

THE FUTURE OF EXCHANGES

THE FUTURE OF EXCHANGES

THE FUTURE OF EXCHANGES

THE FUTURE OF EXCHANGES

THE FUTURE OF EXCHANGES

THE FUTURE OF EXCHANGES

THE FUTURE OF EXCHANGES

THE FUTURE OF EXCHANGES

EXCHANGEMARKETPLACE

THE FUTURE OF EXCHANGES

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@benfoxgo

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