The Future of the Forward Market
The Future of the Forward Market, Q1 2014White Paper and Survey Results: The Trade Desk and Digiday
Jeff GreenCEOThe Trade Desk
THE TRADE DESK IS A BUYERS’ PLATFORM
BUILDING BUSINESSES FORTHE NEXT 100 YEARS.
The world is changing how it buys and sells the annual $600B in
advertising.NEW WINNERS AND LOSERS WILL EMERGE FROM THIS TRANSITION.
EVERYTHING OF SIZE WILL BE TRANSACTED DIGITALLY.
RTB HAS NO GUARANTEES
• 647 digital media and marketing professionals
• 35 percent as agencies, 7 percent identified as advertisers, 36 percent as publishers, and 22 percent as none of the above. The 22 percent who responded as none of the above only answered the first series of questions which gave us our baseline of “programmatic” and “premium programmatic” definitions.
METHODOLOGYDigiday State of the Industry Survey
Analysis consisted of a series of cross-tabulations alongside some basic correlation analysis using both Pearson and Spearman methods. In addition, three qualitative interviews were conducted with programmatic specialists on both the buying and selling sides to confirm or interpret the findings.
90%programmatic is more than just the RTB spot market
55%already buying premium inventory via programmatic
11-20%how much of your digital budget went to programmatic?
0-10%how much of your 2013 programmatic budget went to premium?
<1 yearwhen did you embrace programmatic premium?
67%direct buy relationships are not an obstacle to buying premium via programmatic
80%expect to increase 2014 programmatic spending, & increase premium spend
SKEPTICISM
where the analogy fails
no price discovery
no current scale in private
marketplaces
odds of winning are
different
commodities are all
different. every ad is different.
utility is very different
transacting inventory for a
$5,000 cpm for every
fence-sitting voter
in Ohio the three final days before the election.
the answer
Scale can only happen when we can apply
what we learn at 10k impressions to 100
MM.
trump card
• uses RTB pipes
• run the auction but the trump card bypasses the
auction
the solution
100 MS 1 DAY 1 MONTH 1 QUARTER 2 QUARTERS0
20
40
60
80
100
120
140
160DEMAND FOR FUTURE INVENTORY
DEMAND FOR CURRENT INVENTORY
incremental demand
80%+ OF FORWARD CONTRACTS WILL INITIATE FROM THE BUY SIDE.
OUR PREDICTION
YOUTHANK
for listening