Transcript Xaxis 2016 Presentation Template

X A X I S
1 0 1
S E R I E S
PROGRAMMATIC 101
EACH DAY, XAXIS CAN PROGRAMMATICALLY CONNECT BRANDS
WITH CUSTOMERS ANYWHERE OVER 150 BILLION TIMES
For internal communications and client presentation only. Information or views presented in this post do
not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.
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WHAT IT IS
INVENTORY
DATA
TRENDS
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WHAT IS PROGRAMMATIC
PROGRAMMATIC
An automated method of buying digital
advertising in which supply and demand
partners make decisions on a per-impression
basis and adhere to business rules as
provided by the operators of each platform.
V I D E O : T H E P R O G R A M M AT I C P R I M E R
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WHY BUY PROGRAMMATICALLY?
TARGETING
STREAMLINING
SEGMENTATION
SCALE
AUTOMATION
Maximize accuracy in
Use technology to
Identify different user
Reach users at
Buy and optimize
reaching users with
manage and refine
types and speak to
volume, across the
campaigns efficiently
minimal waste
relationships
them differently
web
and effectively
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WHAT IS AN AUDIENCE?
Demo: Men 18-35
Working
professionals
making $75,000 $125,000
Mother’s who live
in the suburbs
Working adults
looking to go
on vacation
Watch/jewelry/
shoes/clothing
enthusiast
EXAMPLES
OF
AUDIENCES:
A target audience is the intended readership of a publication, advertisement, or other message. In marketing and advertising, it is
a specific group of people within the target market at which a product or the marketing message of a product is aimed.
Single men living
in NYC
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WHAT IS AN AUDIENCE?
CONTEXTUAL
TARGETING
Content as a Proxy for Audience
For years, digital marketers built their
of addressable audiences targeted in
targeting strategies around the
real-time, bringing on the rise of a new
assumption that prospective
audience-first digital marketing
customers were best defined and
paradigm. Underpinned by
targeted by the content being viewed
technologies such as DMPs, DSPs,
at the time of ad exposure. Though
and distributed processing
sometimes effective, contextually
infrastructure capable of ingesting and
driven content strategies often deliver
analyzing troves of data, it is now
valuable (and expensive) ad
possible to target users based on their
impressions to the wrong audience,
behaviors, propensities, and
resulting in wasted marketing spend
demographics either in isolation or
and missed opportunity.
coordination with contextual
PROGRAMMATIC
AUDIENCE TARGETING
Audience regardless of context
placement, bringing newfound
The recent proliferation and
accuracy and efficiency to digital
advancement of ad technology has
marketing.
helped marketers to realize the power
TARGET
OUTSIDE TARGET
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HOW BUYS ARE EXECUTED
STEP
2
YES
GUARANTEED AD
SERVED!
NO
SSP (SUPPLY SIDE PLATFORM)
USER REQUEST’S
WEB PAGE
STEP
PUBLISHER AD SERVER: “DO I
HAVE A GUARANTEED
IMPRESSION?”
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USER IS A WOMAN,
25-34, FASHIONISTA
“HEY, DSP’S – WE
HAVE SOMEONE!”
DSPS: “WHO IS THIS?
DO WE WANT TO BID?”
STEP
$0.95
$0.47
$2.10
DSPs
STEP
PASS
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HIGHEST BIDDING DSP WINS THE AD
IMPRESSION, DELIVERS CREATIVE
$0.96
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PROGRAMMATIC AT ITS MOST ESSENTIAL
ENABLES AUDIENCE BUYING
THE SAME SITE, WITH TAILORED ADVERTISING TO EACH SPECIFIC AUDIENCE
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DIFFERENT DATA SOURCES OFFER UNIQUE INSIGHTS
SURFS VACATION
WEBSITES
SEARCHED FOR
VACATION PACKAGES
Young married
Surfs vacation
All Inclusive Island
couple, 27-32,
websites
Vacation Packages
FITS THE DEMO
HHI: $125k
Probability to become a customer
WELL KNOWN
VACATION PACKAGE
DSP
The advertiser’s tech platform – it
enables buyers to manage multiple
programmatic connections and
exchanges to purchase inventory
through one interface
SSP
The Publisher’s tech platform – it
enables the automation and optimization
of inventory for the publisher, accepting
bids, prioritizing advertiser contracts and
relationships.
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AUDIENCE BUYING BENEFITS EVERYONE
ADVERTISERS
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Reach the best prospects possible
to deliver the highest return on
their marketing investment
CONSUMERS
Receive brand communications
that are relevant to their
interests and needs
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PUBLISHERS
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AGENCIES
Compensated on not just value of
inventory but also audiences
Deliver more powerful and
personal advertising campaigns
that take advantage of digital
media’s efficiency in creating high
return on ad spend for clients
INVENTORY
For internal communications and client presentation only. Information or views presented in this post do
not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.
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ONLINE AD INVENTORY
Advertising inventory is the number of advertisements, or amount of ad space, a publisher has
available to sell to an advertiser. Ad inventory is often calculated by the month. The term can refer
to ads in print or other traditional media but is increasingly used to refer to online or mobile ads.
Online ad inventory is often valued in terms of the site traffic or ad views that the publisher can
deliver to the advertiser.
DISPLAY
NATIVE
MOBILE/
TABLET
VIDEO
RADIO
DIGITAL
OOH
RICH MEDIA
PROGRAMMATIC
SEARCH
ADDRESSABLE
TV
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PREMIUM INVENTORY
Bot Traffic
Blocked
Inventory owned by
top publishers
3rd Party verified for
Viewability, fraud,
and content
Examples: ESPN,
New York Times
Brand Safety:
Excluding Porn, Hate
Speech, Violence,
Firearms, Gambling,
Piracy
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NETWORKS
Ad Networks: An advertising network aggregates, categorizes and sells publisher inventory in a way that can be
easily understood and purchased by advertisers on a fixed CPM basis. By aggregating inventory, Ad Networks offer
advertisers the ability to better reach their target audience while allowing publishers to sell their remnant inventory
more effectively. There are many types of Ad Networks. For example, some focus on delivering reach and price
efficiency while others focus on audience demographics and quality.
NETWORK
OFFER TYPES
TRAFFIC MIN.
Undertone
CPM, CPC, CPA, CPV
500,000
Tremor
CPM, CPD, CPVC, CPVT
500,000
Opera
CPI, CPA, CPM, CPV, CPC,
CPS, Pay-Per-Call
400,000
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BUYER TO SELLER PROGRAMMATIC RELATIONSHIPS
PRIVATE
EXCHANGES
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Limited access only minimizes
competition
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Exclusiveness of invitation called
into question
PROGRAMMATIC DIRECT
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Programmatic business relationship
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Pre-defined inventory, price, and
priority
OPEN EXCHANGES
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Competition with entire landscape
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Bid Inflation
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Efficient Reach and Scale
DATA
For internal communications and client presentation only. Information or views presented in this post do
not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.
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WHAT IS DMP?
As an intelligence layer for digital marketing, DMPs (Data
Management Platforms) enable marketers, publishers and
brands to plan and implement audience strategies, construct
audiences, activate and onboard 1st party data, personalize
consumer experiences, and report on trends across
audiences, while linking all data points associated with users
in real (or near-real) time.
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UNDERSTANDING DIFFERENT TYPES OF DATA
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1st PARTY
2nd PARTY
3rd PARTY
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Generated by client’s sites
and campaigns
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Mobile App Data
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CRM Data
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Point of Sale Data
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E-mail Lists
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Owned by the client
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Generated by platform delivery
advertising
Owned by the platform
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Generated by an independent
party, usually available for
purchase
Owned by the provider
PROGRAMMATIC TRENDS
OPPORTUNITIES IN THE MARKET
For internal communications and client presentation only. Information or views presented in this post do
not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.
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GROWTH OF PROGRAMMATIC DIGITAL DISPLAY AD SPEND IN US
67.9%
GROWTH
Growth in Programmatic
Display Ad spend YOY 2016
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PROGRAMMATIC GROWTH
anticipated in
programmatic
2016 US Programmatic Spend
While desktop display is
67% y-o-y growth
67
84.5
flat, programmatic video
$30
will increase 84.5%, and
mobile is up $6bn (77%)
Billions
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Programmatic slated
to be 67% of all
display spend, up from
59% in 2015
Programmatic expected
67
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$15
$8
to represent 40% of all
video and 69% of all
mobile in 2016
Sources: emarketer, “the state of us digital advertising 2016,” 3/30/16; Emarketer, “US mobile video advertising 2016”, 5/2/16
$-
2014
Desktop Display
2015
Mobile Display
2016
Video
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THE EXCHANGE SHIFT
DISPLAY
10%
Display’s share of RTB total volume
continues to shrink – its 2016 share will
be nearly 10% lower than 2015.
18%
55%
27%
57%
Mobile volume will double over
2015 levels, while video spend
will increase 57%.
Display
Mobile
Video
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CROSS-VERTICAL IMPACT
PROGRAMMATIC AS % OF ALL DISPLAY SPEND
PROGRAMMATIC SPEND BY VERTICAL
RETAIL
CPG
FINANCIAL SERVICES
TELECOM
AUTO
TRAVEL
COMPUTING & ELECTRONICS
ENTERTAINMENT & MEDIA
MEDIA
HEALTHCARE & PHARMA
80%
60%
40%
% OF DIGITAL SPEND
Source: emarketer, “Digital Display ad spending, by industry,” 6/1/15
20%
0%
$-
$0.50
$1.00
$1.50
$2.00
$2.50
SPEND (BILLIONS)
$3.00
$3.50
$4.00
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HOW BUYS ARE EXECUTED
STEP
2
YES
GUARANTEED AD
SERVED!
NO
SSP (SUPPLY SIDE PLATFORM)
USER REQUEST’S
WEB PAGE
STEP
PUBLISHER AD SERVER: “DO I
HAVE A GUARANTEED
IMPRESSION?”
1
USER IS A WOMAN,
25-34, FASHIONISTA
“HEY, DSP’S – WE
HAVE SOMEONE!”
DSPS: “WHO IS THIS?
DO WE WANT TO BID?”
STEP
$0.95
$0.47
$2.10
DSPs
STEP
PASS
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HIGHEST BIDDING DSP WINS THE AD
IMPRESSION, DELIVERS CREATIVE
$0.96
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GLOSSARY OF TERMS
For internal communications and client presentation only. Information or views presented in this post do
not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.
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GLOSSARY OF TERMS
•
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PROGRAMMATIC: An automated method of buying digital advertising in
•
PROGRAMMATIC DIRECT: a one-to-one inventory relationship between
which supply and demand partners make decisions on a per-impression basis
publisher and advertiser, agency, or platform that delivers media through
and adhere to business rules as provided by the operators of each platform
programmatic technology based on agreed upon business terms
REAL-TIME BIDDING: a type of programmatic buying by which multiple
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parties submit bids in real-time for a piece of inventory in a reduced price
DEMAND SIDE PROVIDER: a technology platform that allows advertisers to
programmatically acquire inventory through rule set creation
auction, to which the winning advertiser delivers creative
•
•
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SUPPLY SIDE PROVIDER: a technology platform that allows publishers to
OPEN EXCHANGE: a biddable open market system in which any seller can
programmatically fulfill inventory to various parties – direct buyers, exchanges,
make digital inventory available for purchase by any buyer
etc. – through rule set creation
PRIVATE EXCHANGE: a biddable environment in which a publisher can limit
access to inventory to certain advertisers with established pricing rules
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DATA MANAGEMENT PLATFORM: a data store that uses a persistent identifier
to store data at a disaggregated level pertaining to campaign performance, client
data, and audience attributes
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GLOSSARY OF TERMS
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1ST PARTY DATA: audience attributes generated from digital and non-digital
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assets belonging to an advertiser or publisher
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2ND PARTY DATA: audience attributes generated by platforms or advertisers
ATTRIBUTION: the method by which addressable media is assigned credit or
value for a measured outcome
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VIEWABILITY: the measured ability of a user to view an ad on a webpage
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FRAUD: the delivery of advertising in a duplicitous environment, whether to non-
through a data integration from a relevant publisher
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3RD PARTY DATA: audience attributes from a single source or aggregator
human bot traffic or by manipulating ad placement on a webpage
made available for purchase by advertisers
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AUDIENCE MODELING: a method of audience creation in which data science
is applied to a modeling dataset based on a seed dataset to create a
predictive targeting group
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USER-LEVEL ANALYTICS: directional data insights based on aggregate
learnings from each user exposed in a campaign
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ALGORITHMIC BUYING: automated acquisition of inventory based on machine
learning based on a single outcome or criteria, regardless of defined audience
attributes
X A X I S
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S E R I E S
THANK YOU
For internal communications and client presentation only. Information or views presented in this post do
not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.