Rubicon - Online publishers survey

Online Publishers Survey

In association with the Rubicon Project

| Online Publishers Survey 2011 | 2

Methodology

Online survey in August and September 2011

Second Online Publishers Survey Report (first one in

2009)

Almost 1,000 online advertising professionals, including

– Over 400 advertiser and agency respondents

– Nearly 500 online publishers, sales houses and rep firms

North America is the best represented region in the

survey, followed by the UK

Note: A separate Online Advertisers Survey Report was published in September 2011.


Executive Summary and Highlights

This is Econsultancy’s second Online Publishers Survey Report, carried out in association with the Rubicon Project.

This research is supported by the AOP, IAB Europe, IAB UK and IAB France.

The research, which has been supported by the AOP, IAB Europe, IAB UK and IAB France, is based on a survey of nearly 500 online publishers, sales houses and rep firms. The findings are presented globally, with key charts broken down for North America and Europe.

The research, which follows a similar study published two years ago, shows a positive commercial environment for publishers globally, with three-quarters of respondents saying their online display advertising revenues have gone up in the last year, compared to 53% when we asked the same question in 2009.

The vast majority of publishers surveyed say their rate card prices have either gone up

since last year (40%) or stayed the same (46%). Only 14% of respondents say they have

decreased.

Publishers in North America are more likely than their European counterparts to say that

rate card prices have increased in the last year – 46% of North American respondents

compared to 36% in Europe.



The study, examines the impact of real-time bidding (RTB) and the increasingly prominent role played by supply-side platforms (SSPs), online advertising exchanges and trading desks.

Some 44% of publishers sell display inventory on an RTB basis, increasing to 49% in

North America (compared to 41% in Europe). On average, globally, 17% of display

advertising revenue comes from RTB, increasing to 26% for remnant revenue.

On average, real-time bidding has given publishers 20% uplift on their remnant

revenue.

Publishers cite the main benefits of working with supply-side platforms as the ability to

open up inventory to RTB (58%), incremental revenue (54%) and extraction of greater

value from inventory (48%).

One in 10 publishers say they have a private ad exchange live, with a further 35%

saying they are planning one. More than three-quarters (78%) of publishers that

implemented a private ad exchange say that this has resulted in demonstrable revenue

and a positive lift on yield.



As was also seen in the Online Advertisers Survey Report published in September 2011, ad networks continue to play an important role in the online advertising ecosystem.

Around two-thirds (66%) of publishers surveyed sell inventory through online

advertising networks. Three-quarters (74%) of publishers in the US and Canada sell

through ad networks, compared to 61% in Europe.

In 2009, around three out of five publishers (62%) worked with one or two networks. There

is a trend towards increased use of networks, with the vast majority (76%) working with at

least three networks this year.

More than a quarter (28%) of respondents say they are working with fewer networks

than they were a year ago, up from 11% when we asked the same question in 2009.

However, the majority of publishers indicate they are working with more ad networks

(33%) or the same number of network partners (39%).

On average, globally, 29% of display advertising revenue comes from ad networks

(34% in North America and 20% in Europe), down from 33% in 2009.

http://econsultancy.com/reports/online-advertising-survey



The research also looks at the level of understanding and concerns about data privacy laws, with a focus on the expected impact on revenue.

Around half of publishers (49%) are worried about changes to privacy laws, including 6%

who are very worried.

Over a fifth (21%) of publishers said their businesses had a poor understanding of data

privacy law and its implications. Understanding is even worse in North America, with a

quarter of publishers reporting poor understanding (compared to 18% in Europe).

Just under half of publishers (45%) expect changes to data privacy laws to have a

significant negative (5%) or minor negative (40%) impact on their revenue. Slightly

more European publishers expect the impact to be significantly negative – 7%

compared to 4% in the US and Canada.

A quarter of publishers are already compliant with the Online Behavioural Advertising

framework and a further 31% say they plan to be within six months. However,

worryingly, 23% of Europeans and 19% of North American respondents have no plans

to comply.



The report also looks at the extent to which publishers are offering a range of different targeting techniques to increase the value of inventory on their web properties.

Just under three-quarters (71%) of publishers are offering geographic targeting, while

over half (55%) offer targeting based on demographic data.

The next most commonly offered methods of targeting are time-targeting / day-parting

(51%), behavioural data (41%) and profile / log-in data (30%). Behavioural targeting

was among the least used techniques in 2009, but its use has gone up in the last two

years, driven by an increased focus on audience-based buying and RTB.

Only 6% of European publishers allow advertisers to target using third-party data,

compared to a fifth in North America.



This report also contains the findings of a separate survey of online advertising networks, which explored their use of real-time bidding and the extent to which networks invest in RTB technology.

Some 37% of networks are using RTB for both buying and selling. Around a third

(31%) are using RTB just for buying, while 7% are using it just for selling.

Around a third (29%) of ad networks surveyed say they use a supply-side platform

exclusively for real-time bidding.

More than half of ad networks are investing in real-time bidding technology, with just

under a third (29%) investing in their own technology and a further (15%) using a

combination of proprietary and third-party technology. A quarter of networks (24%)

surveyed rely on third-party technology.

| 9 | Course Title

Publisher Findings

| 10 | Course Title

Online revenue and charging


Has your revenue from online display advertising gone up or down in the last year?

53%

27%

20%

73%

13% 14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Increased Decreased Stayed the same

Econsultancy / Rubicon Project Online Publishers Survey 2011

2009 2011


Regional breakdown – Has your revenue from online display advertising gone up or down in the last year?

72%

18%

10%

73%

12% 15%

0%

10%

20%

30%

40%

50%

60%

70%

80%



US / Canada Europe

| 13 | Course Title

Rate card prices


Have your rate card prices for online display gone up or down in the last year?

22%

17%

61%

40%

14%

46%

0%

10%

20%

30%

40%

50%

60%

70%



2009 2011


Regional breakdown – Have your rate card prices for online display gone up or down in the last year?

46%

12%

42%

36%

14%

49%

0%

10%

20%

30%

40%

50%

60%



US / Canada Europe

| 16 | Course Title

Use of ad serving platforms


Which ad serving platform do you use?

47%

16%

9%

6%

4% 3%

2% 2%

11%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

DoubleClick(Dart for

publishers)

In-housetechnology

ADTECH OpenX 24/7 RealMedia (OpenAd Stream)

SmartAdServer

Atlas TradeDoubler Other



Regional breakdown – Which ad serving platform do you use?

57%

14%

7% 5%

3% 2%

0% 0%

12%

49%

11%

6%

3%

11%

2%

9%

2%

6%

0%

10%

20%

30%

40%

50%

60%

70%

DoubleClick(Dart for

publishers)

In-housetechnology

OpenX 24/7 RealMedia (OpenAd Stream)

ADTECH Atlas SmartAdServer

TradeDoubler Other


US / Canada Europe

| 19 | Course Title

Display inventory sold on a real-time bidding basis


Is any of your display inventory sold on an RTB basis?

44%

56%


Yes No


Regional breakdown – Is any of your display inventory sold on a real-time bidding (RTB) basis?

49% 51%

41%

59%

0%

10%

20%

30%

40%

50%

60%

70%

Yes No


US / Canada Europe

| 22 | Course Title

Proportion of remnant display revenue coming from RTB


Approximately what percentage of your remnant display advertising revenue comes from RTB?

Average

Global 26%

US / Canada 31%

Europe 22%


Approximately what percentage of your remnant display advertising revenue comes from RTB?

34%

20%

13% 12%

7%

4%

1% 1%

2%

4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

1-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%



Regional breakdown – Approximately what percentage of your remnant display advertising revenue comes from RTB?

25%

19%

14%

17%

8%

5% 3%

0% 2%

7%

41%

23%

11%

9% 7%

3%

0% 1%

3% 1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%


US / Canada Europe

| 26 | Course Title

Increase in remnant revenue as a result of RTB


By how much has your overall remnant revenue increased as a result of RTB?

Average

Global 20%

US / Canada 21%

Europe 18%


By how much has your overall remnant revenue increased as a result of RTB?

5%

46%

14%

17%

8%

2% 2% 1%

2% 1%

4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0% 1-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%



Regional breakdown – By how much has your overall remnant revenue increased as a result of RTB?

6%

36%

19% 17%

11%

2% 4%

0% 2%

0%

4% 5%

53%

11%

16%

6%

2% 0%

2% 2% 2% 3%

0%

10%

20%

30%

40%

50%

60%

0% 1-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%


US / Canada Europe

| 30 | Course Title

Use of targeting


What kind of targeting do you offer to increase the value of inventory on your web property or properties?

71%

55% 51%

41%

30%

22% 19%

14% 12%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%


| 32 | Course Title

Selling audience extension packages


Do you sell audience extension packages?

21%

25%

53%


Yes No, but we plan to within the next 12 months No, and no plans to do so


Regional breakdown – Do you sell audience extension packages?

29%

18%

53%

16%

32%

52%

0%

10%

20%

30%

40%

50%

60%

Yes No, but we plan to within the next12 months

No, and no plans to do so


US / Canada Europe

| 35 | Course Title

Impact of trading desks


Has your business been affected by the rise of trading desks?

14%

8%

26%

52%

0%

10%

20%

30%

40%

50%

60%

Yes, we have seen anincrease in spend

Yes, we have seen adecrease in spend

No Too early to say



Regional breakdown – Has your business been affected by the rise of trading desks?

13%

6%

25%

56%

12% 10%

28%

49%

0%

10%

20%

30%

40%

50%

60%

Yes, we have seen anincrease in spend

Yes, we have seen adecrease in spend

No Too early to say


US / Canada Europe

| 38 | Course Title

Number of networks that publishers work with


How many different online ad networks do you work with?

37%

25%

7%

9% 9%

6%

4% 5%

10%

14%

19%

10% 9%

16%

7%

2%

13%

0%

5%

10%

15%

20%

25%

30%

35%

40%

1 2 3 4 5 6-10 11-15 16-20 More than20


2009 2011


Regional breakdown – How many different online ad networks do you work with?

7%

17%

12%

9%

8%

20%

7%

4%

17%

14%

13%

22%

10% 11%

13%

7%

1%

11%

0%

5%

10%

15%

20%

25%

1 2 3 4 5 6-10 11-15 16-20 More than20


US / Canada Europe

| 41 | Course Title

Are publishers working with more or less networks than a year ago?


Are you working with more or less online ad networks than you were a year ago?

41%

11%

48%

33%

28%

39%

0%

10%

20%

30%

40%

50%

60%

More ad networks Fewer ad networks The same


2009 2011


Regional breakdown – Are you working with more or less online ad networks than you were a year ago?

32%

29%

38%

30% 30%

41%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

More ad networks Fewer ad networks The same


US / Canada Europe

| 44 | Course Title

Proportion of display advertising inventory which goes to ad networks


What proportion of your online display advertising inventory goes to ad networks?

Average

Global 42%

US / Canada 51%

Europe 34%



14% 14%

16%

12%

7% 7%

9%

5% 6%

9%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

1-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%




9%

10% 10%

12%

7%

11%

14%

6%

7%

13%

20%

19%

21%

11%

6%

3%

4%

5% 5% 5%

0%

5%

10%

15%

20%

25%

1-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%


US / Canada Europe

| 48 | Course Title

Proportion of display advertising revenue which comes from ad networks


What proportion of your online display advertising revenue comes from ad networks?

30%

12% 12% 12%

9%

1%

4% 4%

5%

9%

0%

5%

10%

15%

20%

25%

30%

35%

1-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%



Regional breakdown – What proportion of your online display advertising revenue comes from ad networks?

25%

11%

8% 8%

13%

1%

6% 7% 7%

13%

38%

14%

16%

12%

6%

1% 2%

1%

3%

6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

1-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%


US / Canada Europe

| 51 | Course Title

Challenges faced when working with networks


What are the challenges you face working with online advertising networks?

57%

53%

22% 23%

15%

7%

61%

49%

45%

32% 32%

28%

22%

5%

0%

10%

20%

30%

40%

50%

60%

70%

Difficultieswith ad quality

Erosion of ratecard (reducingCPMs / prices)

Discrepanciesbetween

network dataand our data

Channelconflict

Data leakage Poor /infrequentreporting

Revenuecollection

Other


2009 2011

Note: The ‘revenue collection’ option

was phrased differently in the 2009

report (‘time spent chasing

payment’). ‘Channel conflict’ and ‘data

leakage’ were new options in 2011

report, so there is no trend data.

| 53 | Course Title

Are publishers willing to accept a higher CPM if ad networks are allowed to drop cookies on their users?


Are you willing to accept ad networks dropping a cookie on your users in return for a higher CPM?

45%

19%

36% 37%

23%

41%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Yes No Maybe


2009 2011


Regional breakdown – Are you willing to accept ad networks dropping a cookie on your users in return for a higher CPM?

39%

20%

40%

34%

26%

40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Yes No Maybe


US / Canada Europe

| 56 | Course Title

Reasons for not working with networks


Why don’t you work with online advertising networks?

38%

24%

32% 30%

12%

50%

46%

41%

36%

23%

9%

0%

10%

20%

30%

40%

50%

60%

Conflict with in-house / direct

sales

Rates too low Difficulties with adquality

Erosion of ratecard (reducingCPMs / prices)

Too time-consuming

Issues withrevenue

collection


2009 2011 Note: ‘Issues with revenue collection’

was a new option in the 2011 report, so

there is no trend data.

| 58 | Course Title

Benefits of working with supply-side platforms


What are the benefits of working with a supply-side platform?

58%

54%

48%

35%

31%

14%

7%

0%

10%

20%

30%

40%

50%

60%

70%

Opens upinventory to

RTB

Incrementalrevenue

Extractinggreater valuefrom inventory

Free up salesforce

Ensure adquality

Reducechannel conflict

Other


| 60 | Course Title

Use of private ad exchanges


Have you implemented a private ad exchange yet?

10%

35% 55%


Yes, this is live No, but we are planning to No plans for this


Regional breakdown – Have you implemented a private ad exchange yet?

8%

35%

57%

11%

36%

53%

0%

10%

20%

30%

40%

50%

60%

Yes, this is live No, but we are planning to No plans for this


US / Canada Europe

| 63 | Course Title

Revenue and lift on yield


Is your private ad exchange showing demonstrable revenue and overall positive lift on yield?

78%

22%


Yes No


Regional breakdown – Is your private ad exchange showing demonstrable revenue and overall positive lift on yield?

100%

0%

73%

27%

0%

20%

40%

60%

80%

100%

120%

Yes No


US / Canada Europe

| 66 | Course Title

Impact of data privacy laws on revenue


Do you expect changes to data privacy laws to have an impact on your revenue?

5%

40% 54%


Yes, significant negative impact Yes, minor negative impact No


Regional breakdown – Do you expect changes to data privacy laws to have an impact on your revenue?

4%

42%

54%

7%

40%

53%

0%

10%

20%

30%

40%

50%

60%

Yes, significant negative impact Yes, minor negative impact No


US / Canada Europe

| 69 | Course Title

Implementation of Online Behavioural Advertising (OBA) compliance


Do you plan to implement Online Behavioural Advertising (OBA) compliance?

25%

11%

20% 21%

23%

0%

5%

10%

15%

20%

25%

30%

We are alreadycompliant

Yes, within threemonths

Yes, within sixmonths

Yes, after six months No



Regional breakdown – Do you plan to implement Online Behavioural Advertising (OBA) compliance?

22%

16%

20%

23%

19%

27%

8%

23%

20%

23%

0%

5%

10%

15%

20%

25%

30%

We are alreadycompliant

Yes, within threemonths

Yes, within sixmonths

Yes, after six months No


US / Canada Europe

| 72 | Course Title

Understanding of data privacy law and its implications


How well does your business understand data privacy law and its implications for you as a publisher?

35%

44%

21%


Good understanding Reasonable understanding Poor understanding


How well does your business understand data privacy law and its implications for you as a publisher?

30%

45%

25%

40% 42%

18%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Good understanding Reasonable understanding Poor understanding


US / Canada Europe

| 75 | Course Title

Concerns about changes to data privacy laws


Are you worried about the changes to data privacy laws?

6%

43%

51%


Yes, extremely worried Yes, worried No


Regional breakdown – Are you worried about the changes to data privacy laws?

4%

45%

51%

8%

42%

51%

0%

10%

20%

30%

40%

50%

60%

Yes, extremely worried Yes, worried No


US / Canada Europe

| 78 | Course Title

Ad Networks Findings

| 79 | Course Title

Inventory purchasing


Do you purchase inventory from the following? (ad networks survey)

81%

70%

61% 60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Publishers directly Supply Side Platforms(SSPs), e.g. the Rubicon

Project

Other online advertisingnetworks

Online advertisingexchanges


| 81 | Course Title

Investing in real-time bidding technology


Are you investing in real-time bidding (RTB) technology? (ad networks survey)

29%

24%

15%

9%

8%

15%

0%

5%

10%

15%

20%

25%

30%

Yes, our owntechnology

Yes, third partytechnology

Yes, acombination of

our own and thirdparty technology

No, but we plan towithin the next 6

months


months

No, and we donot plan to invest



Regional breakdown – Are you investing in real-time bidding (RTB) technology? (ad networks survey)

33%

17%

8%

11% 11%

19%

31%

22%

20%

6% 6%

14%

0%

5%

10%

15%

20%

25%

30%

35%

Yes, our owntechnology

Yes, third partytechnology

Yes, acombination of

our own and thirdparty technology


months


months

No, and we donot plan to invest


US / Canada Europe

| 84 | Course Title

Use of real-time bidding for buying and selling


Do you use real-time bidding (RTB) for any of the following? (ad networks survey)

31%

7%

37%

25%


Buying Selling Both Not relevant


Regional breakdown – Do you use real-time bidding (RTB) for any of the following? (ad networks survey)

31%

11%

31%

28%

31%

6%

37%

26%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Buying Selling Both Not relevant


US / Canada Europe

| 87 | Course Title

Using a supply-side platform exclusively for real-time bidding


Regional breakdown – Do you use a supply-side platform exclusively for RTB? (ad networks survey)

34%

66%

24%

76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No


US / Canada Europe


Do you use a supply-side platform exclusively for RTB? (ad networks survey)

29%

71%


Yes No


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