IAB GLOBAL SUMMIT 2015

September 30 – October 1New York, New York

IAB GLOBAL SUMMIT 2015

September 30 – October 1New York, New York

Programmatic: Global Technology, Local Approaches

Ravikumar Shankar, Vice President of Global Business Development,

Miaozhen Systems

Alice Manners, Chief Executive Officer, IAB Australia

Luis Arvizu, Managing Director, Yahoo! Mexico and President, IAB Mexico

Moderator: Carl Kalapesi, Vice President of Industry Initiatives, IAB

GLOBAL  TECHNOLOGY,    CHINA  APPROACH  Programmatic Buying

3rd-Party Servers

PROGRAMMATIC ADTECH LANDSCAPE INCREDIBLY FRAGMENTED

Complicated by multiple participating enterprises with differing roles and duties.

US$ 23 Billion Internet

Advertising 74%

Mobile Advertising 26%

Non Programmatic US$ 20.24 billion

(88%)

Programmatic US$ 2.76 billion (12%)

US$  62  billion 1

Total Advertising Spends

PROGRAMMATIC - A BUZZ WORD, THOUGH IN ITS INFANCY

Data Source: 1.  eMarkerCNNIC201507 Report; National Bureau of Statistics 2014; 2.  CNNIC 201507 Report ; 3.  National Bureau of Statistics 2014; Miaozhen Research;

686  million 2

Internet Population

US$  23  billion  (37%) 1

Digital Advertising Spends

49%  3

Penetration

US$ 23 Billion

                   

AVAILABLE INVENTORY TYPES: Understand the benefits of each inventory types to your brand.

Programmatic

Non- Programmatic

Returnable Ad Serving

Non RTB Programmatic

Non Returnable Ad Serving

Ad Exchange

Media Center ( SP/ TP)

DMP (Database, Data, Data Operations)

DSP/RTB

RETURNABLE ADSERVING (NON – RTB)

Media Deliver 200 imp

Client Required 100 imp

Based on publishers in-target imp% benchmark, publishers to deliver IMPRESSIONS

more than client requirements.

Advertisers to select the media IMPRESSION to be served & RETURN the

unqualified IMP in real time.

CATEGORIES USING PROGRAMMATIC BUYING

* Data Source: PinYou&AdChina Report 2014

35%  32%   31%  

29%   28%  

23%   22%  

0%  

5%  

10%  

15%  

20%  

25%  

30%  

35%  

40%  

E-­‐Commerce   Finance   Auto   Travel   FMCG   Games   IT  

%  Digita

l  Spe

nds  

Programmatic 15% 23% 31% 24% 49% 10% 25%

CURRENT STATUS

1.  Publishers are more open compared to last year.

2.  More publishers are setting up PMP (youku, tabao, sina, iqiyi, etc.,). •  Advertisers can choose websites with quality content but still adopt a programmatic approach to

purchasing ads.

3.  Many advertisers have done fantastic work, this hasn’t necessarily translated to the industry at large.

•  Most of the P&G video ads are delivered through programmatic buying system.

4.  RTB is growing fast, but mostly using remnant inventory. Video inventory is beginning to join the RTB marketplace.

MAJOR PLAYERS Each major ad exchange has its own unique characteristics, advertisers need to select the one that is a best fit to their objective.

•  Uses third party media resources, like Sina.com, Sohu.com, CNTV, ifeng.com and even TANX.

•  DoubleClick has access to a relatively high-end audience in China.

•  Offers Ad Exchange, DSP, SSP and original DMP.

•  Taobao monetizes its audience on sites like Taobao.com

•  Tencent’s real-time AdExchange is integrated with Tango (DSP) to connect with its rich user data obtained from QQ.com, V.QQ.com, Discuz!alliance and the Tencent mobile alliance..

•  Baidu’s search engine covers 95% of China’s domestic search engine market, and also brings together the resources of 600,000 partner sites in its alliance.

TANX(TAOBAO) TENCENT DOUBLECLICK BAIDU

KEY CHALLENGES

IAB  ProgrammaMc  Buying

The  Australian  Landscape  

Now:  ProgrammaJc  in  Australia  

Now:  ProgrammaJc  faces  Global  Challenges  

Next:  ProgrammaJc  in  Australia  

PROGRAMMATIC ADVERTISING A Mexican Perspective

Luis Arvizu – IAB Mexico President Yahoo Mexico Managing Director www.iabmexico.com

Programmatic advertising: A Mexican perspective

•  The Digital Advertising industry in Mexico has had steady growth over the last 10 years: 43% CAGR, up to $828 M USD.

•  In the last 4 years programmatic advertising has become a reality in Mexico.

•  In 2013, 54 publishers reported that 7% of their average income of display advertising is from programmatic platforms (PwC).

Digital Advertising Evolution in Mexico 2005-2014* $ M USD

28 47 92 169

174 269

345 434 522 581 27

52

118

246

$0

$200

$400

$600

$800

$1,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Mobile

Desktop/Laptop

16% CAGR Non Mobile

372 449

828 77% CAGR Mobile

24% CAGR 2011-2014

43% CAGR 2005 - 2014

*Exchange Rate of all years based on Mexican Federal Bank records

640

•  Unfortunately the conversation about programmatic has not been balanced from the start.

•  The conversation started with buyer side platforms (ATD, DSPs), with very limited knowledge from agencies & advertisers and minimum participation from the selling side (SSPs, DMPs, publishers).

Programmatic advertising: Initial stage

•  Local publishers have not developed strong Ad Ops teams and they were not ready for the conversation; the initial approach to programmatic was harsh and complicated.

•  The scope of the Mexican programmatic

ecosystem is still slow regarding the data quality that is needed and also limited in terms of the inventory that publishers are offering.

Programmatic advertising: Publishers & Ad Ops

•  CIM – Consejo de Investigación de Medios (Local institution similar to MRC) has had a very limited role in the Digital Advertising Industry.

•  The consequences of which are that the industry is immature in reporting conflicts and the lack of guidance for advertisers to choose certified platforms.

Programmatic advertising: CIM - MRC

•  Since 2014, IAB Mexico has had several initiatives such as discussion groups and panels about programmatic to integrate the complete digital ecosystem in the conversation with initial results already visible

•  Key Initiatives 2016: programmatic advertising whitepaper, innovation day, data & programmatic as a key part of IAB Conecta

Programmatic advertising: IAB Mexico´s role

IAB GLOBAL SUMMIT 2015

September 30 – October 1New York, New York

IAB GLOBAL SUMMIT 2015

September 30 – October 1New York, New York

Programmatic: Global Technology, Local Approaches

Ravikumar Shankar, Vice President of Global Business Development,

Miaozhen Systems

Alice Manners, Chief Executive Officer, IAB Australia

Luis Arvizu, Managing Director, Yahoo! Mexico and President, IAB Mexico

Moderator: Carl Kalapesi, Vice President of Industry Initiatives, IAB