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© faberNovel Strictement confidentiel Hi Advertising, meet Mr Big Data 12 février 2013
© faberNovel Strictement confidentiel Remember 1996 ?
© faberNovel Strictement confidentiel The beginning of online advertising: a process inspired by offline media buying This direct sales approach is still very active today on the premium inventory market, which is very competitive and puts up high CPMs. Direct sales Precise knowledge of where your ad will be displayed Targeting based on visited page content #1 #2 #3 “I'll pay you 100$ for 1000 impressions of my ad on your homepage.” “OK, I'll take care of it.” Advertiser Publisher Mid 90’s
© faberNovel Strictement confidentiel The explosion of web inventory volumes led to the development of intermediaries called "Advertising Networks” “Hey, I’ll help you sell all the inventory you haven't managed to sell directly to advertisers (remnant inventory). I'll pay you 1$ for 1000 ad impressions.” “Hey, I have all this inventory coming from thousands of websites. Give me your ads and I'll take charge of displaying them on pages that are most likely to be read by your target customers.” However convenient they can be, Ad Networks have a major drawback : advertisers have very little control over where their ads are actually displayed. Inventory available may be of poor quality. Publishers Advertisers “We have a lot of inventory to sell but not enough media sales force to deal with it” “We still have ads to display but not enough time and resources to deal with all the publishers!” Advertising Network Step 1Step ’s
© faberNovel Strictement confidentiel Google launched a totally transparent way of purchasing high volumes of targeted inventory : AdWords 2000’s When search results are delivered, Google also displays sponsored links related to the search keywords: AdWords Ads.
© faberNovel Strictement confidentiel Advertisers and publishers are turning to real-time bidding (RTB) through Ad Exchanges AD EXCHANGE Demand Side PlatformSell Side Platform A DSP is a software for transparent automated media buying across multiple Ad Exchanges. An advertiser uses several DSPs. An Ad Exchange is a real- time marketplace that automates inventory buying and selling. Demand for ads and real- time bids (automatic orders) based on data provided by publishers and data possessed by the marketer Available inventory and real-time data on who is seeing each piece of inventory An SSP is a software for transparent automated media selling across multiple Ad Exchanges. A publisher uses several SSPs. Publishers Advertisers Average number of employees in a big Ad EX: 20 people 2012
© faberNovel Strictement confidentiel Source: Real-Time Bidding in the United States and Western Europe, 2010–2015, IDC, october 2011 U.S : 28% France : 51% CAGR Automated buying through Ad Exchanges is predicted to grow over the next years Share of RTB in all display* ad sales in the U.S. and France % 15% 10% 21% 9% 4% Note: *IAB display formats including richmedia formats Ad Exchanges support IAB and rich media formats but also linear TV ad and radio. As everything is on its path to digitalisation, we will be able to deliver ads in real- time auction to all devices.
© faberNovel Strictement confidentiel Quote “ If you want to see the future of the ad-tech industry, look to the history of the financial- services industry” Andrew Nibley, former CEO of Yieldex Advertising has just begun to emerge from a decade of opaque and information-starved deal- making. As data and analytics become more crucial and available on a large scale, forecasting and spotting future trends is strategic to buyers and sellers. As Bloomberg or Reuters made financial exchanges faster, more transparent and efficient, we expect that advertising distribution will be managed by computers.
© faberNovel Strictement confidentiel In a data-driven world, marketing and digital technology come together Traditional media will be transformed by digital technology. The user-centric approach will be the critical component of any media! MEGATRENDS by 2015… Interactive TV A/B testing Web-to-store Second screen experiences Real-time targeting Facial recognition Data ubiquity Sentiment analysis
© faberNovel Strictement confidentiel To paraphrase John Wanamaker: We now can know which of advertising is useful 10 50%
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