programmatic advertising in switzerland
TRANSCRIPT
Introduction
Real Time Advertising (RTA) has made its breakthrough in Switzerland. A number of local publishers have jumped on the train by now.
It’s time to take a look at the status quo. Which sellers are now active, how many so-called deals are in circulation and what prices does Mediahead pay for? Here are the findings of our own internal analysis that we conducted during the month of April 2015.
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What’s a deal? The “deal” (or “deal ID”) has emerged as an important part of programmatic ad buying because it is used to match buyers and sellers individually, based on a variety of criteria that were negotiated beforehand, such as price, type of ad units, section of the site, etc. It replaces the written contract between advertiser and publisher.
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How many deals are active? By April 2015, Mediahead negotiated 1,045 deals. Most of them were excluded after auditing them. At the moment, Mediahead has 172 active deals running.
What’s in it for publishers? As a deal is negotiated individually, publishers can achieve high prices on a CPM level.
• Top 30 deals deliver 87% of ad impressions • Top 30 deals are provided by 14 sellers
30
132
6
87%
Deals
Ad Impressions
Number of deals
provided by
14 Sellers Microsoft Stailamedia Tamedia United Internet Media Interactive Media Audience Square Watson Omnimedia Mediabox Telegraaf* Tomorrow Focus La Place Media Comparis BBC
* this is due to a campaign running in the Netherlands in april 2015
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Ad Impressions Proportional distribution of top 10 sellers
31%
22% 14%
11%
9%
4% 3% 2% 2% 2%
Microsoft
Stailamedia
Tamedia
United Internet Media
Interactive Media
Audience Square
Watson
Omnimedia
Mediabox
Telegraaf
30%
24%
23%
6%
6%
3% 3% 2% 2% 1%
Tamedia
Microsoft
Stailamedia
United Internet Media
Audience Square
Watson
Omnimedia
Interactive Media
Mediabox
BBC
Revenue Proportional distribution of top 10 sellers
CPM*
paid by Mediahead to top14 sellers
Seller CPM BBC CHF 15.00 Tamedia CHF 13.42 Audience Square CHF 10.07 Comparis CHF 8.36 Omnimedia CHF 7.70 Stailamedia CHF 6.45 Mediabox CHF 6.34 Watson CHF 5.29 La Place Media CHF 4.99 Microsoft CHF 4.99 United Internet Media CHF 3.58 Tomorrow Focus CHF 3.00 Telegraaf CHF 2.77 Interactive Media CHF 1.28
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Average CPM of all deals (172) over 7 months
CHF 0
CHF 1
CHF 2
CHF 3
CHF 4
CHF 5
CHF 6
* Cost per thousand advertising impressions
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Origin Proportional distribution by origin of top 30 deals
.ch 61%
Border mix (.ch, .de, .fr)
21%
.de 10%
.fr 5%
.nl 2%
.com / .co.uk 1%
.ch 67%
Border mix (.ch, .de, .fr)
22%
.de 7%
.fr 2%
.nl 1%
.com / .co.uk 1%
Revenue Proportional distribution by origin of top 30 deals
Key findings “Deals”
• Few deals deliver a major part of the ad impressions. There is great potential for sellers to provide the market with more deals.
• So far, five players take 90% of revenue: Tamedia, Microsoft, Stailamedia, United Internet Media, Audience Square. There is a lot of room for new sellers to join the game.
• Media brands recognized to be “premium” achieve highest CPMs.
• Average CPM over last seven months moderately increased.
• 97% of ad impressions come from Switzerland or from neighboring countries.
• The lion’s share of revenue goes to .ch domains.
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Fact I:
Programmatic inventory treated as a deal is just as local and clean as any manually booked campaign.
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Fact II:
The original fear of publishers to face declining prices when selling their inventory programmatically has proven to be unfounded.
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Fact III:
Programmatic advertising has arrived at Switzerland’s sell side. Still, we see a lot of potential to come.