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State of the Industry with Rubicon Project: Automating Guarantees in a Complex Marketplace at DAS, 10/21/14
1. Leading the Automation of Advertising
The State of the Industry:
Automating Guarantees in a Complex Marketplace
Presented by Josh Wexler
2. Be brilliant and creative.
Goal: Provide the buyers and sellers of advertising
enabling technology to accelerate their ability to
deliver better performance and higher yield.
3. Awareness
Consideration
Engagement
Conversion
Automated
Guaranteed
Programmatic
Premium
Auction
Auction
Repurchase Intent
$29B*
$6B*
* [Source: IDC "Real-Time Bidding In the US & Worldwide, 2010-2017]
Largest Market is Underserved
4. Current Inefficiencies
• Today, more than half of those surveyed spend at least 20% of their time
manually processing digital advertising transactions.
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
On average, what proportion of the day is spent by employees manually handling coordination and
execution of deals across all platforms and services for automated buying and selling?
0 percent 1%-20% 21%-40% 41%-60% 61%-80% 81%-100%
0 percent
1%-20%
21%-40%
41%-60%
61%-80%
81%-100%
5. Efficacy Over Efficiency
“As systems get streamlined, it gives buyers more
time to focus on the efficacy of media: really trying
focus on what systems should be integrated into the
streamlined process.”
– Will Heins, director of partnerships for digital, OMD
6. Current Systems are Fragmented
• The majority (76%) of buyers today uses multiple different systems to plan
and execute a buy, causing significant inefficiencies and driving up costs.
200
180
160
140
120
100
80
60
40
20
0
How many different systems (email, Excel, planning, DSPs, ad Servers, billing
systems, DMPs, etc.) do you log into to manage a GUARANTEED buy?
6+
4-5
2-3
1
6+ 4-5 2-3 1
7. “Automated guarantees are a good stepping stone for
getting to a full programmatic buying experience,
because you can still guarantee a certain amount of
inventory, which the publishers like because they are
prone to selling out, but you can have the data
overlaid and see insights.”
-- Danielle Sporkin, North American director of investment and
partnerships, Essence Digital
Automate Everything
8. Automated Guaranteed Systems are Limited
• Respondents don’t believe a guaranteed automation offering
currently exists the marketplace that best serves their needs.
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
What percentage of your GUARANTEED orders are transacted in an automated (programmatic) fashion?
0 percent
1%-10%
11%-20%
21%-30%
31%-40%
41%-50%
51%-60%
61%-70%
71%-80%
81%-90%
91%-100%
9. Automated Guaranteed Systems are Needed
“This is probably one of the more underutilized
portions of programmatic media.”
– Brian Nadres, director of programmatic at Media Kitchen
10. Direct Order Automation is in Demand
• Nearly 9 out of 10 surveyed believe the marketplace needs a direct
order automation platform to eliminate inefficiencies, reduce costs
and increase overall return on investment.
How strong is the industry’s demand for an intuitive and easy-to-use
platform that includes end-to-end services (Discovery, Packaging,
Negotiation, Execution, Insights/Optimization)?
Very strong
Strong
Somewhat strong
Not very strong
Not at all strong
11. "Digital buying of media is done
by machines, as if you're
standing on the floor of the
Nasdaq as opposed to
traditional media shop.
I hold the long-term belief that
eventually traditional media, or
a lot of traditional media, will
get purchased that way.“ - John Wren, Omnicom CEO