RTB update 3 - Tom Jenen & Christine Nielsen, Google

Premium Programmatic on Google’s AdExchange

Tom JenenHead of Marketplace Development, Northern EuropeGoogle

Google Confidential

Why programmatic? Data and technology better connect the right buyers with the right audience

Transparency

Massive Scale

Operational efficiency

Performance

Targeting .

Google Confidential

The Exchange EcosystemIncentivising Demand and Supply

Google Confidential

Important Trends Already Here

Formats: Media, Mobile & VideoBuyers: Deals & Creative ManagementInventory: Rules & DFP+AdX

Google Confidential

Formats: Media, Mobile & Video

Video

Rich Media

Mobile

More engaging formats with seamless support for third party expandables

Full mobile monetization including mobile web, optimized web and app inventory

In-Stream video support for all video ad lengths with demand for 15s, 30s, and longer formats

Google Confidential

Formats: Media, Mobile & Video

Smartphone & Television Smartphone & Laptop/PC Laptop/PC & Television

81% 66% 66%

We use an average of three different screen combinations each dayNon-PC impressions

as percentage of DFP:

3X what they were a

year ago

Google Confidential

Buyers: Deals

Ad Network Optimization

Maximize yieldfrom tag-based

networks

Open Auction

Programmatic,thousands of buyers

Direct Premiumin DFP

Guaranteed direct sales

(martini lunches optional)

Open & Liquid Exclusive & Reduced Demand

Preferred Deals

Programmatic,one buyer,fixed price

Private Auctions

Programmatic,Multiple buyers,invitation only

Google Confidential

AdX Programmatic Options

Open Auction

Description

2nd price auction with select group of

buyers.Auction model with

set floor.Publishers2nd Price Auction

w/ price floors Select Buyers

Private Auction

Negotiated, fixed-price, pre-auction

deal with one buyer.Publishers Fixed Price Deal One Buyer

Preferred Deals

Many Publishers 2nd Price Auction

Standard auction with all buyers.

All Buyers

# of BuyersPricingPricing

Danish Publishers Continue to Expand Options

Google Confidential

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Buyers: Creative Management

Ads Review Centre, now with Image Search● Quickly block creatives● Integration with DFP coming soon

Publisher Toolbar, across Products

Integrated Google Technology

Google Confidential

Inventory: RulesRethink Your Inventory

Management

•Before: Manually configure individual ad units

•Now: Make bulk changes with a few clicks, sync with DFP

Pricing

•Before: Set floors per unit, and only based on buyer

•Now: Set floors in bulk based on any combination of buyer/advertiser.

Transparency

•Before: Sell inventory in a branded or anonymous fashion

•Now: Semi-transparency, branded & anonymous

New publisher controls with more power and less setup!

Google Confidential

The Future of Exchanges:Upcoming Trends

Google Confidential

Trend 1: AudienceNothing drives value like users

Before: Buyer-drivenNow: Publisher-supported

● Create User Segments● Across Devices (PPID)

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Trend 2: 1st Party DataNot just Audience

Before: drives significant value only in directNow: also for programmatic

● Combining data signals multiplies targeting● Already powerful in deals, soon to be powerful for advertisers

Google Confidential

Trend 3: Programmatic DirectEfficiency, but also larger market reach

Before: two distinct types of sellingSoon: spectrum of selling

Sidebar: definition of Programmatic Direct

• The market is unsure of implementation, but it’s inevitableo Cost reductiono Revenue uplift (for sellers and buyers)

Google Confidential

Preparing for the FutureWhat Should You Be Doing Now

Experiment with Deals

Experiment with Data

Rethink Your Inventory

Google Confidential

Thank you!

Questions?