Programmatic Buying Unlocking Better Monetization for Publishers!

Market Status

Programmatic

Collaboration Standalone

Source: ZenithOptimedia April 2014

Source: IDC October 2013

Rest of Central & Eastern Europe

A tale of two pies…

Local Publishers

Global Internet Media Companies

Programmatic…

The Core Revolution:

Automation of media buying and selling (through technology)

RTB = Real Time Bidding An online advertising technology that enables you to trade display advertising inventory - impression-by-impression - in real-time - on an auction basis

The protocol for automation is called

& Data Affecting the valuation of each impression

Source: IAB Spain 2014

Technology & Expertise

› Ad Serving › SSP for sellers › DSP for buyers › DMP for all › Integration › Consulting

Agency Trading Desks

Other Traders › Independent Trading Desks › Retargeters › Ad Networks

Ad Exchanges

&

Publisher Alliances

Other Sellers › Publishing Groups › Telcos / ISPs › Ad Networks

Standalone Monetization leveraging unique selling points against local competition

More than an open bidding exchange…

One to One Non RTB

Automates Traditional Direct Sales Longer Commitments

Audience Buying

Buyer Seller

Few to Few Known as Private Marketplace

Non RTB & RTB Both parties know each other

Extension of Traditional Direct Sales Automated Trading

Audience Buying

Many to Many Known as Open Ad Exchange

RTB Parties don’t necessarily know each other

Automated Trading Audience Buying

Source: Forrester’s “Selling In A Programmatic World Publishers In Control Of Their Ad Businesses” February 2014

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Key Findings

1

Pricing, packaging, inventory volume, and brand controls rest with the publisher. These are the levers that, when managed actively by the publisher, can affect the revenue generated by inventory that would otherwise go unmonetized.

Channel overlap is an opportunity not a conflict. When actively coordinated and controlled by the publisher — with adequate sales team education and constant internal communication— channel conflict can be avoided and also lead to additional sales opportunities.

Programmatic efficiencies, data capabilities, and private marketplaces can grow incremental revenue. By employing these evolving capabilities, publishers can create new opportunities with which to serve their best advertisers and enhance relationships.

Partners like supply-side platforms (SSPs) and exchanges help, but the onus is on the publisher to generate demand. Publishers require adequate demand to monetize their inventory, so, while partners can help, it is in the publisher’s best interests to closely manage the demand flow.

Collaborative Monetization Standing up to the global media competition

Canada

CPAX

France

Audience Square

La Place Media

Denmark

DUN

Czech Republic

CPEx

Established Alliance

Discussion on Alliance

Publisher alliances around the world

Tools & Expertise Heft

key components to building a digital leader 2

Publisher #1

Publisher #2 Publisher

#3

Publisher Alliance

A single point of access to remnant inventory

Direct Sales

Remnant Inventory

Unique Selling Proposition = PREMIUM Programmatic

An offer tailored to advertiser needs

Affinity

Brand Premium

Audience

Targeted reach

Performance

Clicks Lead Sales

Sales Houses

Existing business

Publisher Alliance in Programmatic

New Business

Custom advertising solutions Automated advertising solutions

Preference

Special Operations

Publisher #1

Publisher #2 Publisher

#3

Publisher Alliance

Safeguarding existing sales channels

Agencies

Agency Trading

Desk

Guaranteed Transparent

Branding Special Ops

No publisher targeting Non-transparent

Performance Audience

Necessary components to create an offer in this market

Reach audiences Granularity in

targeting Frequency

capping

and critical mass is the only way to make it work

It is a numbers game

New expertise needed - hard to acquire

Technical Sales

Yield Management

Data Scientists

Technology Management

Agile Strategy

Admin Processes

Dealing with the complexity… We’ve already seen that in other industries…

End User Skilled Service Provider Software Company

It is time for publishers to understand RTB is their friend, not their enemy.

“

” Source: IDC October 2013

"Google doesn’t have a rate card. We can sit here all day and debate whether or not we want to embrace RTB for direct sales. In the meantime, Google is stepping on the gas. These guys have declared war on direct sales, and guess what, they are multiple times as big as we are. We can only survive if we embrace RTB," says a publisher executive.

“

” Source: IDC October 2013

CONCLUSION

RTB will revolutionize the display advertising to an extent few in the industry fully appreciate. By automating, integrating, and optimizing the way display advertising is being traded and served, both publishers and advertisers/ad agencies can improve ROI. They must embrace RTB to remain competitive.

“

” Source: IDC October 2013

Publishers must actively and aggressively manage their programmatic sales channels.

“

” Source: Forrester February 2014

It [DMP] gives us leverage to increase CPMs. We do set price floors. It gives us analytics that justify a 20% to 30% increase. Sometimes you charge higher than that depending on what advertisers might be looking for or what they land on.” — Digital publishing executive

“

” Source: Forrester February 2014

Elias Gagas Managing Director eliasg@tailwindemea.net