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Leading the Automation of Advertising The State of the Industry: Automating Guarantees in a Complex Marketplace Presented by Josh Wexler

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Josh Wexler from Rubicon Project's presentation from Digiday Agency Summit on October 21, 2014.

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Page 1: State of the Industry with Rubicon Project: Automating Guarantees in a Complex Marketplace at DAS, 10/21/14

Leading the Automation of Advertising

The State of the Industry: Automating Guarantees in a Complex Marketplace

Presented by Josh Wexler

Page 2: State of the Industry with Rubicon Project: Automating Guarantees in a Complex Marketplace at DAS, 10/21/14

Be brilliant and creative.

Goal: Provide the buyers and sellers of advertising enabling technology to accelerate their ability to

deliver better performance and higher yield.

Page 3: State of the Industry with Rubicon Project: Automating Guarantees in a Complex Marketplace at DAS, 10/21/14

Conversion

Engagement

ConsiderationProgrammatic

Premium

Auction

Auction

AutomatedGuaranteed

Repurchase Intent

Awareness

$6B*

$29B*

* [Source: IDC "Real-Time Bidding In the US & Worldwide, 2010-2017]

Largest Market is Underserved

Page 4: State of the Industry with Rubicon Project: Automating Guarantees in a Complex Marketplace at DAS, 10/21/14

Current Inefficiencies

• Today, more than half of those surveyed spend at least 20% of their time manually processing digital advertising transactions.

0 percent 1%-20% 21%-40% 41%-60% 61%-80% 81%-100%0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

On average, what proportion of the day is spent by employees manually handling coordination and execution of deals across all platforms and ser-

vices for automated buying and selling?

Series1

Page 5: State of the Industry with Rubicon Project: Automating Guarantees in a Complex Marketplace at DAS, 10/21/14

Efficacy Over Efficiency

“As systems get streamlined, it gives buyers more time to focus on the efficacy of media: really trying focus on what systems should be integrated into the streamlined process.”

– Will Heins, director of partnerships for digital, OMD

Page 6: State of the Industry with Rubicon Project: Automating Guarantees in a Complex Marketplace at DAS, 10/21/14

Current Systems are Fragmented

• The majority (76%) of buyers today uses multiple different systems to plan and execute a buy, causing significant inefficiencies and driving up costs.

0

20

40

60

80

100

120

140

160

180

200

How many different systems (email, Excel, planning, DSPs, ad Servers, billing systems, DMPs, etc.) do you log into to manage a

GUARANTEED buy?

6+

4-5

2-3

1

6+ 4-5 2-3 1

Page 7: State of the Industry with Rubicon Project: Automating Guarantees in a Complex Marketplace at DAS, 10/21/14

“Automated guarantees are a good stepping stone for getting to a full programmatic buying experience, because you can still guarantee a certain amount of inventory, which the publishers like because they are prone to selling out, but you can have the data overlaid and see insights.”

-- Danielle Sporkin, North American director of investment and partnerships, Essence Digital

Automate Everything

Page 8: State of the Industry with Rubicon Project: Automating Guarantees in a Complex Marketplace at DAS, 10/21/14

Automated Guaranteed Systems are Limited

• Respondents don’t believe a guaranteed automation offering currently exists the marketplace that best serves their needs.

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

What percentage of your GUARANTEED orders are transacted in an automated (programmatic) fashion?

Series1

Page 9: State of the Industry with Rubicon Project: Automating Guarantees in a Complex Marketplace at DAS, 10/21/14

Automated Guaranteed Systems are Needed

“This is probably one of the more underutilized portions of programmatic media.”

– Brian Nadres, director of programmatic at Media Kitchen

Page 10: State of the Industry with Rubicon Project: Automating Guarantees in a Complex Marketplace at DAS, 10/21/14

Direct Order Automation is in Demand

• Nearly 9 out of 10 surveyed believe the marketplace needs a direct order automation platform to eliminate inefficiencies, reduce costs and increase overall return on investment. How strong is the industry’s demand for an intuitive

and easy-to-use platform that includes end-to-end services (Discovery, Packaging, Negotiation, Execu-

tion, Insights/Optimization)?

Very strong

Strong

Somewhat strong

Not very strong

Not at all strong

Page 11: State of the Industry with Rubicon Project: Automating Guarantees in a Complex Marketplace at DAS, 10/21/14

"Digital buying of media is done by machines, as if you're

standing on the floor of the Nasdaq as opposed to

traditional media shop.

I hold the long-term belief that eventually traditional media, or a lot of traditional media, will

get purchased that way.“ - John Wren, Omnicom CEO

Page 12: State of the Industry with Rubicon Project: Automating Guarantees in a Complex Marketplace at DAS, 10/21/14

Leading the Automation of Advertising

Thank You