The beginning of online advertising

Report
Hi Advertising, meet Mr Big Data
12 février 2013
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Remember 1996 ?
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The beginning of online advertising: a process inspired by offline media
Mid 90’s buying
“I'll pay you 100$ for 1000
impressions of my ad on
your homepage.”
“OK, I'll take care of it.”
Advertiser
Publisher
This direct sales approach is still very active today on the premium inventory market, which
is very competitive and puts up high CPMs.
#1
#2
#3
Direct sales
Precise knowledge
of where your ad
will be displayed
Targeting based on
visited page content
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2000’s
The explosion of web inventory volumes led to the development of
intermediaries called "Advertising Networks”
“We have a lot of
inventory to sell but
not enough media
sales force to deal
with it”
Publishers
“We still have ads to
display but not enough
time and resources to
deal with all the
publishers!”
Step 1
Step 2
“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.”
Advertising
Network
Advertisers
“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.
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2000’s
Google launched a totally transparent way of purchasing high volumes
of targeted inventory : AdWords
When search results are
delivered, Google also
displays sponsored
links related to the
search keywords:
AdWords Ads.
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2012
Advertisers and publishers are turning to real-time bidding (RTB)
through Ad Exchanges
Advertisers
Demand for ads and realtime bids (automatic
orders) based on data
provided by publishers and
data possessed by the
marketer
Demand Side Platform
A DSP is a software for
transparent automated media
buying across multiple Ad
Exchanges.
An advertiser uses several
DSPs.
Available inventory
and real-time data
on who is seeing each
piece of inventory
AD EXCHANGE
An Ad Exchange is a realtime marketplace that
automates inventory buying
and selling.
Publishers
Sell Side Platform
An SSP is a software for
transparent automated
media selling across
multiple Ad Exchanges.
A publisher uses several
SSPs.
Average number of
employees in a big Ad EX:
20 people
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Automated buying through Ad Exchanges is predicted to grow over the next years
CAGR 2011-2015 U.S : 28%
France : 51%
27%
10%
2011
15%
4%
21%
9%
2012
2015
Share of RTB in all display* ad sales in the U.S. and France
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 realtime auction to all devices.
Source: Real-Time Bidding in the United States and Western Europe, 2010–2015 , IDC, october 2011
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Quote
“If you want to see the future of the ad-tech industry, look to the history of the financialservices industry” Andrew Nibley, former CEO of Yieldex
Advertising has just begun to emerge from a decade of opaque and information-starved dealmaking.
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.
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In a data-driven world, marketing and digital technology come together
MEGATRENDS by 2015…
Traditional media will be transformed by digital technology.
The user-centric approach will be the critical component of any media!
Interactive TV
A/B
testing
Web-to-store
Second screen
experiences
Real-time
targeting
Facial
recognition
Data
ubiquity
Sentiment
analysis
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To paraphrase John Wanamaker:
We now can
know which
of advertising is useful
50%
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Contact
……………………………..…………
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Paris
17 rue du Faubourg du Temple
75010 Paris
+33 1 42 72 20 04
[email protected]
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San Francisco CA 91 103, USA
+1415 626 6406
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NY 10013
+1415 298 0209
[email protected]
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17, Stroenie 2 Moscow 11054
+7 (999) 639 80 82
[email protected]
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