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Five Predictions for 2014 OMMA RTB - Chicago
FROM THE TEAM THAT INVENTED REAL-TIME BIDDING
ENGINEERING TEAM: Only team in the world to build mul2ple RTB pla7orms FOUNDERS: Started AdECN, the first ad exchange, bought by MicrosoD in 2007 HEADQUARTERED: Ventura, California; addi2onal offices in Los Angeles, New York City, Chicago, San Francisco, Boulder, London, Hamburg, Singapore and Tokyo. TTD POWERS: 5 of 7 agency trading desks, 3 of top 5 ad networks, and many more agencies and buyers
1. The rise of RTB for branding and video campaigns
2. Forward market buys with premium publishers
3. How brands are tying RTB to offline sales and metrics
4. Advances in non-‐cookie user targe2ng
5. How advanced buyers are building their own op2miza2on rules and algorithms
Five big trends for 2014
3
CPG is here to stay in RTB
4
End of artificial silos
5 These materials are not intended for distribution outside of The Trade Desk and its partners and customers
Agencies are following suit
6
In-‐house trading team Dedicated agency RTB trading team
Dedicated agency RTB trading team Dedicated agency RTB trading team
Video stands to gain in 2014
7
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Display Video
Queries per second
Video stands to gain in 2014
8 These materials are not intended for distribution outside of The Trade Desk and its partners and customers
1. The rise of RTB for branding and video campaigns
2. Forward market buys with premium publishers
3. How brands are tying RTB to offline sales and metrics
4. Advances in non-‐cookie user targe2ng
5. How advanced buyers are building their own op2miza2on rules and algorithms
Five big trends for 2014
9
Agencies are following suit
10 These materials are not intended for distribution outside of The Trade Desk and its partners and customers
Deal ID as good start
Can I buy this ad in RTB?
What went wrong with Deal ID?
• Deal ID: Single code to match a buyer with a publisher in an RTB auc2on.
• More fric2on than liquidity • Less scale than the old way • Too many phone calls and emails for
over-‐worked RTB buyers • No commitment from either side
The Forward Market
2016 PresidenRal Candidate
$1,000 CPM from a poliRcal agency for Ohio swing
voters in November 2016
The Forward Market – how it works
2016 PresidenRal Candidate
• Commits to sending 10M impressions per day to the buyer in Nov. 2016
• Commits to buying 10% of the impressions they see in Nov. 2016 at agreed-‐upon CPM
• More stability and higher CPMs for pubs • More scale on audiences that buyers want
1. The rise of RTB for branding and video campaigns
2. Forward market buys with premium publishers
3. How brands are tying RTB to offline sales and metrics
4. Advances in non-‐cookie user targe2ng
5. How advanced buyers are building their own op2miza2on rules and algorithms
Five big trends for 2014
14
WHY ARE WE STILL MEASURING CLICKS?
Same-‐store sales Red to digital media
• Pet food brand experiment in Pacific NW
• A/B tested in grocery stores • Heavy digital spend by zip
in test regions proved same-‐store sales liD of 17%
• Used checkout data for lookalike modeling and audience refinement
• Took program na2onal • CMO judged digital
program by offline sales
Brand li\ Red to digital media
0
100
200
300
Yes No
“Do you plan to purchase this brand in the next 30 days?”
Primarily 18-‐24 female, Bravo watchers, HHI <$50K, in-‐market 2-‐door sedan, plays musical
instrument
Primarily 34-‐48 married female with teenagers,
HHI >$90K, rural/exurban, TLC watchers, reality show junkies
1. The rise of RTB for branding and video campaigns
2. Forward market buys with premium publishers
3. How brands are tying RTB to offline sales and metrics
4. Advances in non-‐cookie user targeRng
5. How advanced buyers are building their own op2miza2on rules and algorithms
Five big trends for 2014
18
• Challenges from Mozilla, consumer privacy, lack of targe2ng on mobile…
• Rise of unique IDs from Google, Facebook, MicrosoD…
• New entrants with proprietary tech like Tapad, Drawbridge…
Will cookies die in 2014?
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• Proprietary tracking systems won’t last (or scale)
• Google, Facebook, MicrosoD (or anyone) controlling user IDs isn’t good for the rest of us (or consumers)
• There needs to be an open source standard
User tracking is not winner-‐take-‐all
OpenStatID
A collabora2ve, open-‐source standard to user iden2fica2on and privacy
1. The rise of RTB for branding and video campaigns
2. Forward market buys with premium publishers
3. How brands are tying RTB to offline sales and metrics
4. Advances in non-‐cookie user targe2ng
5. How advanced buyers are building their own opRmizaRon rules and algorithms
Five big trends for 2014
22
• 2013 Ford Mustang -‐ $22,200
• 2013 Saleen 351 Mustang Black Label -‐ $82,600
• Every DSP has its own algorithms and op2miza2on
• But advanced media buyers are bringing their own op2miza2on: – Mining CRM data and selng unique CPM bids for
every single user – Building (and selling) op2miza2on systems on top of the DSP – Crea2ng advanced rule-‐sets and algorithms that are proprietary
• A true plaiorm welcomes innovaRon builders
Bring Your Own Algorithm
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