THE PAST, PRESENT, AND FUTURE OF MEDIA BUYING, EXCHANGES, AND RTB [ Follow me!: linkedin.com/in/benfox, @benfoxgo ]
Ben Fox DiscussesThe Future of Media Buying
Nov 29, 2014
Ben Fox shares his unique vision of what the future of advertising is and how it will get there. He lays out a holistic perspective of the industry and how key players will create a sea change. Ben highlights some opportunities and threats for a variety of businesses.
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THE PAST, PRESENT, AND FUTURE OF
MEDIA BUYING, EXCHANGES, AND RTB
[ Follow me!: linkedin.com/in/benfox, @benfoxgo ]
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
FOLLOW ME!:linkedin.com/in/benfox
@benfoxgo
C ON TAC T AD C ON ION D IR EC T AT:s a l e s @ a d c o n i o n d i r e c t . c o m
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