© fabernovel 2013 1 strictement confidentiel hi advertising, meet mr big data 12 février 2013
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Hi Advertising, meet Mr Big Data12 février 2013
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Remember 1996 ?
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The beginning of online advertising: a process inspired by offline media buying
This direct sales approach is still very active today on the premium inventory market, which is very competitive and puts up high CPMs.
Direct salesPrecise knowledge of where your ad will be displayed
Targeting based on visited page content
#1 #2 #3
“I'll pay you 100$ for 1000 impressions of my ad on your homepage.” “OK, I'll take care of
it.”
Advertiser Publisher
Mid 90’s
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The explosion of web inventory volumes led to the development of intermediaries called "Advertising Networks”
“Hey, I’ll help you sell all the inventory you haven't managed to
sell directly to advertisers (remnant inventory). I'll pay you
1$ for 1000 ad impressions.”
“Hey, I have all this inventory coming from thousands of websites. Give me your ads and I'll take charge of displaying them on pages that are most likely to be read by your target customers.”
However convenient they can be, Ad Networks have a major drawback : advertisers have very little control over where their ads are actually displayed. Inventory available may be of poor quality.
Publishers Advertisers
“We have a lot of inventory to sell but not enough media sales force to deal with it”
“We still have ads to display but not
enough time and resources to deal
with all the publishers!”
Advertising Network
Step 1 Step 2
2000’s
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Google launched a totally transparent way of purchasing high volumes of targeted inventory : AdWords2000’s
When search results are delivered, Google also displays sponsored links related to the search keywords: AdWords Ads.
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Advertisers and publishers are turning to real-time bidding (RTB) through Ad Exchanges
AD EXCHANGEDemand Side Platform Sell Side Platform
A DSP is a software for transparent automated media buying across multiple Ad Exchanges.An advertiser uses several DSPs.
An Ad Exchange is a real-time marketplace that automates inventory buying and selling.
Demand for ads and real-time bids (automatic
orders) based on data provided by publishers and data possessed by
the marketer
Available inventory and real-time data on who is seeing
each piece of inventory
An SSP is a software for transparent automated media selling across multiple Ad Exchanges. A publisher uses several SSPs.
PublishersAdvertisers
Average number of employees in a big Ad EX: 20 people
2012
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Source: Real-Time Bidding in the United States and Western Europe, 2010–2015 , IDC, october 2011
U.S : 28%France : 51%
CAGR 2011-2015
Automated buying through Ad Exchanges is predicted to grow over the next years
Share of RTB in all display* ad sales in the U.S. and France
2011 20152012
27%
15%10%
21%
9%4%
Note: *IAB display formats including richmedia formats
Ad Exchanges support IAB and rich media formats but also linear TV ad and radio. As everything is on its path to digitalisation, we will be able to deliver ads in real-time auction to all devices.
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Quote“If you want to see the future of the ad-tech industry, look to the history of the financial-services industry” Andrew Nibley, former CEO of Yieldex
Advertising has just begun to emerge from a decade of opaque and information-starved deal-making. As data and analytics become more crucial and available on a large scale, forecasting and spotting future trends is strategic to buyers and sellers.
As Bloomberg or Reuters made financial exchanges faster, more transparent and efficient, we expect that advertising distribution will be managed by computers.
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In a data-driven world, marketing and digital technology come together
Traditional media will be transformed by digital technology.
The user-centric approach will be the critical component of any media!
MEGATRENDS by 2015…
Interactive TVA/B
testingWeb-to-store
Second screen experiences
Real-time targeting
Facial recognition
Data ubiquity
Sentiment analysis
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To paraphrase John Wanamaker: We now can know which of advertising is useful
10
50%
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