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The Video Ad Exchange Ecosystem
Terence Kawaja
What is the world’s 2nd largest search engine?
1.
2. _______________
188 million U.S. internet users watched 38 billion online videos
…in August ‘12
> 350 Million Views
© LUMA Partners LLC 2012 Denotes acquired company
VIDEO LUMAscape
© LUMA Partners LLC 2012
Performance
Video / Rich Media
Targeted Networks / AMPs
Horizontal
Vertical / Custom
Mobile
Exchanges DSPs
Publisher Tools
Data Suppliers
Ad Servers
DMPs and Data Aggregators
Measurement and Analytics
Creative Optimization
Agency Trading Desks
Denotes acquired company
Ad Networks
Media Planning and Attribution
Verification / Privacy
Ad Servers
Retargeting
Media Mgmt Systems and Operations
Sharing Data / Social Tools
SSPs
DISPLAY LUMAscape
MARKETER
PUBLISHER
CONSUMER
i
Tag Mgmt
Agencies
© LUMA Partners LLC 2012
The Future is Happening in REAL TIME (bidding)
Source: IDC
$352
$1,067
$1,975
$2,921
$3,948
$5,076
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
0%
10%
20%
30%
40%
50%
60%
70%
2010 2011 2012 2013 2014 2015
RTB Spend ($M) RTB % of Indirect RTB % of Display
US Real Time Bidding Growth
$(millions)
© LUMA Partners LLC 2012
Video RTB Growth
Source: econsultancy
$(millions)
US Video Real Time Bidding
15%
22%
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2009 2010 2011 2012 2013
RTB Non-‐RTB
© LUMA Partners LLC 2012
$0
$5
$10
$15
$20
$25
$30
2011 2012 2013 2014 2015 2016
Sponsorships
Rich Media
Video
Banners
Video vs. Display
Source: eMarketer
Adver\sing Spend by Display Format
61% 45%
32%
16%
$(billions)
© LUMA Partners LLC 2012
The Rise of Programma\c Premium
Hand Sold Sponsorships
Hand Sold Premium Inventory
Hand Sold Targeted Inventory
Targeted Inventory sold via Ad Exchanges
Remnant “Wholesale” Inventory sold to Ad Networks
Tier 1
Tier 1.5
*Inspired by Eric Picard (www.springload.com)
Tier 2
Show in a stacked bar chart
© LUMA Partners LLC 2012
Global Internet Device Sales
Source: Gartner, IDC, Strategy AnalyDcs, company filings, SAI, ISI esDmates
© LUMA Partners LLC 2012
There Remains a Huge Untapped Opportunity
Adver_sing Spend by Channel
$65 $66 $68 $69
$2.5 $3.1 $3.7 $4.5
0%
5%
10%
15%
20%
25%
30%
$0
$10
$20
$30
$40
$50
$60
$70
$80
2012 2013 2014 2015
Television Online Video Growth $(billions)
Source: eMarketer, Forrester
(Online Video)
Introducing
HOT OR NOT
© LUMA Partners LLC 2012
HOT or NOT: Media Formats
DISPLAY VIDEO
© LUMA Partners LLC 2012
HOT or NOT: Ad Formats
DISPLAY VIDEO
© LUMA Partners LLC 2012
Brand
HOT or NOT: Marketer Objec\ve
DISPLAY VIDEO
Direct Response
© LUMA Partners LLC 2012
HOT or NOT: View-‐ability
? ? DISPLAY VIDEO
© LUMA Partners LLC 2012
HOT or NOT: Revenue
DISPLAY VIDEO
$4 -‐
$2 -‐
$0
$6 -‐
$(Billions)
$8 -‐
$10 -‐
$20 -‐
$22 -‐
$24 -‐
2011
2011
2016
2016
(Growth)
© LUMA Partners LLC 2012
HOT or NOT: Analog Ad Opportunity
DISPLAY VIDEO
$12B
$16B
$72B
© LUMA Partners LLC 2012
HOT or NOT: CPM Pricing
DISPLAY VIDEO
© LUMA Partners LLC 2012
HOT or NOT: Exchanges
DISPLAY VIDEO
Exchanges Exchanges
© LUMA Partners LLC 2012
HOT or NOT: 800 LB Gorilla
DISPLAY VIDEO
© LUMA Partners LLC 2012
HOT or NOT: CEOs
DISPLAY VIDEO
© LUMA Partners LLC 2012 Denotes acquired company
STRATEGIC BUYER LUMAscape
Thank You
Investment Banking . Evolved. New York – Palo Alto
lumapartners.com
Thank you
@tkawaja
