AGENCY/ ADVERTISERS DISPLAY Publisher Display...of integrated display, social, mobile and VOD...

Publisher

WE SELL DIRECT TO AGENCY/ADVERTISERS

KEEP READING THIS BOOK TO FIND OUT!

TRADINGDISPLAYSellers Guide

WE USE AN SSP

Publisher

WE SELL THROUGH AD NETWORKS

HOW ARE WE CURRENTLY SELLING OUR INVENTORY?

WE HAVE TO THINK BEYOND RTB AND FOCUS ON INCREASING EFFICIENCY

WE HAVE TO EXPERIMENT WITH DIFFERENT PLATFORMS

WE HAVE TO UNDERSTAND HOW BUYERS ARE BUYINGOK – HOW CAN WE

TAKE ADVANTAGE OF AUTOMATED TRADING? CAN WE FIND THE RIGHT AUDIENCE AND DELIVER THE RIGHT AD? I NEED TO KNOW MORE…

WE HAVE TO SPEND TIME TO OPTIMISE ACROSS ALL SALES CHANNELS

WE HAVE TO BUILD A DATA STRATEGY

Publisher

SOUNDS GOOD – BUT COMPLICATED. HOW CAN I FIND OUT MORE?

Contents

Introduction 1

What to consider 8

Data 23

Finding the right technology 30

Additional information on ePrivacy 38

Directory 39

IAB DISPLAY TRADING BUYERS GUIDE

IAB DISPLAY TRADING BUYERS GUIDE 1

With so much talk about paid content in the past couple of years, it’s easy to forget display advertising still makes up the vast proportion of publishers’ digital revenues.

While the online ad space can sometimes seem overly technical and complex (and packed with three letter acronyms), it’s worth remembering a few home truths as you begin to define your objectives:

• Advertisers are shifting spend to digital channels - a big factor in this is the growth of real time bidding (RTB) as a trading mechanic, which offers greater efficiency and accountability than ‘traditional’ channels

• Google and Facebook dominate the space, offering single digital buying points with mass market reach

• BUT publishers are in a unique position to offer their clients the creativity and one-to-one business relationships their larger competitors lack

Jay Steven, Vice-President and General Manager, International

–Rubicon Project

Year on Year growth by sector

www.iabuk.net/highestadspend

(like for like 14.4%)

Digital TV Outdoor

16.8

2.7

PressDisplay

0.7

-5.9

20

15

10

5

0

-5

-10

Source: IAB/WARC Figures 04/2012

Introduction

IAB DISPLAY TRADING BUYERS GUIDE

IAB DISPLAY TRADING SELLERS GUIDE

As you can see from the above, RTB is exploding as a protocol for display advertising. That said, for the time being, publishers’ traditional revenues still outweigh digital. So at this stage many publishers’ energies are focussed on ensuring they are best placed for a future where digital dominates: gaining a strong foothold, building up internal skills and knowledge, experimenting and learning along the way.

Real-Time Bidding year on year graph?

20%

15%

10%

5%

0%2010 2011 2012 2013 2014 2015

4%

10%

16%

20%

24%

27%

1%

6%

12%

17%

21%

25%

1%

4%

8%

13%

17%

20%

14%

18%

21%

1%

4%

9%

US UK Germany France

30%

25%

Source: Real-Time Bidding in the United States and Western Europe, 2010-2015 IDC Oct 2011

2

IAB DISPLAY TRADING SELLERS GUIDE IAB DISPLAY TRADING SELLERS GUIDE 3

One such example of publishers’ more bullish approach to automated trading is the private marketplace phenomenon, which is covered in some detail later. Essentially private marketplaces bring the controls of direct sales to RTB, and in many ways mark the next stage in the development of real time trading. Initially, automated trading focussed on optimising non-guaranteed inventory. But within private market places, CPMs are reaching 3 to 5 times the amount of standard real time auctions - it’s clear that RTB is moving up the sales chain.

(Taken from Rubicon private marketplace data)

It’s worth remembering too that RTB technology is just a couple of years old, and we’ve hardly scratched the surface of the creative opportunities it offers. Just as publishers’ brands and content vary widely, we can see a unique and tailored approach to direct versus automated emerging for each individual media owner. A good place to start on defining your strategy would be to ask what you’re actually trying to achieve with RTB:

CPM

Network RTB PrivateMarketplaces

CPM

Your RTB Objectives

• Where is your business under-performing and how can RTB assist?• Which budgets are you trying to break into?• What is your goal - reducing overheads? Increasing DR spend? Attracting new advertisers?• Where can automation provide a value-add to other parts of the business?(to take one example

– private marketplaces set up alongside sponsorship deals or site takeovers)

What does the buy side need?

Quite simply - the buy side needs to understand your greatest assets as a publisher, and see this backed up with hard data. In a brutally competitive space, agencies need to hear loud and clear what makes you unique, be it content, audience, creative execution or a combination of all three.

As cross-media, audience extension and increasingly first party data (more detail on this later under behavioural targeting) come to the fore, publishers will be able to bring more unique offerings to the sell side – the differentiation that has often been missing in a market characterised by over-supply. Publishers are sometimes criticised for misunderstanding the dynamics of supply and demand – of adding banners to a page, when they should be taking them away.

But could the automated space throw up new opportunities for creating scarcity?

IAB DISPLAY TRADING SELLERS GUIDE4

IAB DISPLAY TRADING SELLERS GUIDEIAB DISPLAY TRADING SELLERS GUIDE 5

For example - using a data management platform (DMP), you could limit access to your first party data to premium buyers who buy into your private marketplaces – thereby encouraging incremental premium direct deals via RTB without the usual overheads of a manually sold IO.

The Wall Street Journal has just announced that it is launching a private marketplace, WSJ Audex, to provide its advertisers with automated, efficient access to its high value audience with great levels of control and protection.

Moving beyond data and private marketplaces, in the next chapter we also talk about publisher co-ops such as La Place Media in France, and publisher trading desks which enable media owners to extend their audience and sell across a range of contextually similar sites.

In short, publishers are moving towards a point where automated ad technology, from data to private marketplaces forms a key part of their sales proposition. Is it just a matter of time before publishers include private marketplaces options for agencies at the briefing stage of campaigns?


The Guardian’s approach to RTB

In defining its approach, the Guardian identified the following trends in the display market:

• Evolution of agency buying methods• Budget shifting from networks to agency trading desks• Real-time selling• Private marketplaces And has responded in kind by:

• Expanding non-guaranteed monetisation• Creating additional inventory for the RTB market• Establishing private market places with premium clients

The results of the Guardian’s RTB strategy speak for themselves, including a fourfold increase in non-guaranteed revenues.

Agencies and automation

In order to understand fully what the buy side needs from you, it’s first worth taking a look at what the agencies themselves are doing.


The first thing to note is the sheer amount of investment that’s gone in on the buy side when it comes to RTB. Agency trading desks (ATDs) are not just another three letter acronym – these ‘insight hubs’ represent a real statement of purpose compared to which many publishers are still playing catch up.

Agency Trading Desk (ATD) goals

• Increased return on investment (ROI) for clients

• Greater operational efficiency

• Using APIs (application program interfaces) instead of manual order processing

• Improved targeting – through audience data combined with contextual data

• A single view on frequency capping and reporting

• Central attribution modelling

The word from the agencies is that the intelligence they are building up through ATDs is changing how they run all types of campaigns, including how they view attribution. In the long run, it’s entirely possible automation will be instrumental in proving what premium publishers have long known: that advertising in branded environment has a far greater impact in the sales cycle than has ever been credited in digital display.


What toconsider‘Anything that can be transacted automatically will be...publishers need to adapt’. (Manning Gottlieb OMD Head of Digital Katie Eyton)

Jay Stevens, Vice-President and General Manager, International –

the Rubicon Project

Real-Time Bidding (RTB) in online display promises greater efficiency, transparency and most importantly, profits for publishers. We don’t have to look far to see how other industries have benefitted from automation, where first they might have looked more like a threat to people’s jobs:

From stock exchanges, to car sales on eBay, to the tech that sits behind the airline trade, we’ve seen examples of solutions that start low down the chain (‘remnant’ ticket sales in the case of the airlines, low cap stocks in the case of Nasdaq) to eventually power it all (Sabre Systems is the back-end for the entire travel industry now, and eBay Motors is selling cars at a rate of one per minute).


Perhaps the best example of all is the arrival of the PC – initially IBM’s machines threatened to replace humans in the workplace, but guess what? It turns out they still need people to operate them, and those people didn’t end up losing their jobs, they just became more productive and efficient.

In the same way, automated trading doesn’t remove the need for humans and human interaction in online advertising. If the technology is doing its job correctly, it should bring the buyer and seller even closer together, sitting underneath rather than in between the two.

RTB promises to make the execution of a deal far less convoluted, repetitive and inefficient than has been the norm before this protocol gained widespread acceptance in 2011.

At this moment, publisher sales are polarising between directly sold creative partnerships and automated deals, but new developments like private marketplaces promise to straddle the gap.

It’s an exciting time - but beware anyone who tries to blind you with jargon, acronyms or slides packed with logos – in fact anything that makes this space seem confusing – it’s really only as complicated as you want it to be.


The ‘map’ of the online ad ecosystem, often trotted out at events (aka – the ‘vomit slide’)

As MediaMath’s response to it, the Kitchenscape shows, the ecosystem is only as complex as you want to make it.

Direct Response/Brand

‘I spend $1, I need $5 back. If my ROI is less than $5, I pull back on budget. If it is more than $5, I throw a party.’ – Digital Marketing Consultant Vic Drabicky

Online display ad campaigns have evolved into an either-or: direct response (DR) or brand campaigns, with DR performance campaigns dominated by the ad networks. But the emergence


of integrated display, social, mobile and VOD campaigns (not to mention the growth of real time trading and integrated digital/print deals) is beginning to shake things up.

Positive signs for the publisher come in the way of agencies starting to talk about the two as different sides of the same coin – since the audience understanding gained from RTB channels can be used to inform campaigns on the branding side.

Since RTB has often been viewed itself in terms of DR, we’ve still to understand fully how it can complement the brand side, but with the promise of creative that’s customisable in real-time, and the reach that’s possible across emerging publisher co-operatives (discussed later), it’s safe to say we’ve only just started to scratch the surface. Perhaps it’s time for a new set of definitions - OMD talks about automation (maths) and brand campaigns (magic) as follows:

“MATHS is about dispersion: the functional delivery of ad impressions to people who haven’t asked for them, but whom we hope to influence.” “MAGIC is about attraction: creating impressions so perfect that people choose to spend time with them, and maybe even pass them on.”

* The worthless battle between direct response and branding http://marketingland.com/the-worthless-battle-between-direct-response-and-branding-11582


Private marketplaces

In the UK, a typical direct ad campaigns includes £25k of agency fixed costs and 15 hours to add each new media outlet. Private marketplaces (aka private exchanges) are quite simply a way of defining and enforcing the rules you’d have around a direct sale with a particular agency and automating it via the RTB protocol. Private marketplaces promise better yields for publishers, and preferred access to premium inventory for buyers, without the overheads and legwork of direct (Lunches are optional.)

Private Marketplace Objectives

Before setting up a private marketplace, as a publisher you first need to be clear on your objectives. Some of these might be: • Finding new advertisers• Reducing the cost of manual performance advertising• Leveraging your creative solutions to take a larger share of the overall spend in the display marketplace• Capturing spend from existing advertisers without causing sales channel conflict• Enhancing existing trading agreements for preferential pricing.


Three types of private marketplace

Private – the publisher agrees with the agency (or agency trading desk – ATD) a certain segment of inventory, for a certain period of time which is available only to that ATD only at one price

First Right - Here the advertiser is effectively agreeing to pay more for first right of refusal on a specific segment of a publisher’s inventory - For example, both sides agree an ATD can buy certain impressions at £X - they can win bids on them at this price, even if other bids are higher

Preferred Pricing – this is simply a rule, or pricing agreement, either high or low between the publisher and ATD

Where next for private marketplaces?

By the end of 2012, we expect to see increased use of data across the board. This will include third party data sets for agencies, and more likely publishers’ first party data being passed within private marketplaces - as media owners look to further increase yield and safely leverage the data they bring to bear.

Private marketplaces are moving beyond auction models to include ‘programmatic guaranteed’ – essentially the purchasing of futures where operational aspects are managed through RTB APIs, rather than manually on paper-based IOs.


We also expect buy-side ad verification technologies (such as comScore’s vGRP and tools from AdSafe, DoubleVerify etc.) to be implemented across campaigns as advertisers become more savvy about which media they’re buying. Publishers, in turn, will use these tools to better price their inventory.

Publisher Co-ops

“Automation is not necessarily an auction model. It’s not about adding data to an impression, it’s about scale. Premium publishers need to take back more control from the buy-side and also educate internally.” - Martin Van Der Meij, De Telegraaf Media Group, speaking at the Ad Trading Summit, London

http://www.exchangewire.com/blog/2012/09/21/ats-london-wrap-up/

The graph right illustrates the situation in every major online market in the world – once you get outside the top five internet giants, the share of the total available impressions is well below 1% for each publisher.

If you look at this from an agency point of view – wanting to access audience at scale, you have to draw together a selection of these premium publishers to reach a significant percentage.


Facebook 16.1Google 11eBay 4.4Microsoft 3.2Yahoo 3BBC 2DMGT 0.5Sky 0.4GMG 0.3News Int 0.2TMG 0.1CBS 0.1Trinity Mirror 0.1ITV 0.1Hearst 0.1Channel 4 0.1RBI 0.1Conde Nast 0.1

UKOM monthly online audience summary: August 2012 - % share of page views

0.1

16.10.1

0.2

0.3

11

0.4

0.4

2

3

3.2 4.4


The marketplace is fragmented for quality inventory, to say the least. The financial services industry responded to the same issue by taking this inventory and putting it together on automated platforms - making it available at scale, in a safe environment for transactions to occur.

Publishers in several European markets are now doing the same thing – pooling premium inventory together to form co-ops to more effectively compete for ad Euros or pounds against the Googles and Facebooks of this world.

It is still early days for the first of these country, or even continent-wide premium marketplaces – but there are rumblings that UK publishers will soon follow in their footsteps.

Attribution

The aim of attribution modelling is to move away from the traditional ‘last click wins’ mentality, which has benefitted search to the detriment (some say) of publishers’ display advertising. The aim is to understand fully the influence of ads across different sites (and channels), building a more accurate picture of the influence each one has on the consumer.

Online display advertising still lacks solid attribution models, and for RTB to move ‘up the funnel’ (the industry jargon for breaking further into brand campaign budgets) this will be key. Marketers will always have an excuse to plumb for TV until we make digital as straightforward and simple to buy.


Since RTB is more transparent than traditional ad networks, and single buying and selling points allow true frequency capping and lack of duplication, agencies are starting to be able to use these insights to inform their ad campaigns on other platforms. As a result, certain clients are beginning to move away from ‘last click wins all’ to take a broader view on attribution. Through automated campaigns, agencies are learning be able to prove the effect of branding earlier in the sales cycle.

Growing marketer interest in mobile advertising, social media and online video is also contributing to the expansion of online brand advertising as a category.

Mobile

Banners and text links£41.8m 23%

(2011, £22.4m, 29%)

Video pre-post roll£1.7m 1%

(2011, £0.3m, 0.4%)

Tenancy Deals£0.7m 1%

(2011, £0.4m, 0.5%)

Search£131.3m 73%(2011, £52.2m, 67%)

In SMS / MMS and other£5.9m 2%(2011, £2.4m, 3%)

Total Market

£181.5m

Source: IAB / PwC Digital AdSpend Survey H1 2012


Over the past year, a range of publishers have seen web traffic growth leveling off - that growth is shifting to mobile platforms. Fill rates on mobile ad platforms tend to be low, but that too is now changing thanks to the emergence of mobile RTB, better ad formats and incremental mobile spend.

Mobile offers the possibility of highly relevant advertising by tailoring ads based on a user’s location, platform or other factors. Publishers should ensure their partners support a robust set of targeting attributes to deliver highly-customised messages to users. Mobile advertising promises to allow advertisers to target by:

• Location (latitude/longitude)

• Content

• Day/Time

• Demographic

• Operating System

MOBILE


Mobile Creative

The next generation of mobile ads formats are emerging – more interactive and more effective than their predecessors:

Scrollable, multipanel,horizontal or vertical ad unit, much like “The Filmstrip” Display Standard Ad Unit

Richly engagingexperience with tons ofcontent possibilitiesdelivered in page withusers fully in control

Overlay unit on thebottom of a page mirrorstouch screen habit,prompting users to slidethe entire page over,unveiling a full brandexperience, much like“The Slider” DisplayStandard Ad Unit

Optimal creative spacekeeping viewer fully incontrol of ad experience

Standard banner that“adheres” to its startPosition when device isrotated or when contentis manipulated (e.g.,with a tap to magnify)

Elegant solution to fundamental challenge

Full screen experiencethat accommodates bothportrait and landscapeorientation

An ideal creative canvas - the whole screen - with interactivefunctionality

A bottom or top bannerthat expands to fullscreen, not unlike “ThePushdown” DisplayStandard Ad Unit

Allows for an immersive,in-page ad experience,with users in control

Filmstrip Slider AdhesionBanner

Full Page Push

Click to enlargeClick to enlargeClick to enlarge Click to enlarge Click to enlarge

Source: IAB/PwC Digital ad spend survey H1 2012

http://www.iab.net/risingstars


Though it’s still early days, the first industry research into these Rising Star formats is very encouraging:

Rising Stars Ad Standard Ad

38%

15%

Users are2.5 times more

likely to interact withRising Stars ads

Universal Interaction Rate

Rising Stars Ad Standard Ad

15.8

7.9

2 x moreinteraction with

Rising Stars

Universal Interaction Time (seconds)

http://www.iab.net/media/file/IABRisingStarsAdUnitsvsStandardAdUnitsFINAL.pdf


Publisher Trading Desks

‘Choose to continue down the same path and … for years to come, industry panels will be filled with irate publishers bemoaning the state of the industry, and questioning the commercial viability of the ad funded model.’ – ExchangeWire

http://www.exchangewire.com/blog/2012/06/27/ptd-2-0-the-next-evolution-of-the-publisher-trading-desk/

As with the agencies, publishers like AND and IDG have developed their own insight hubs for online trading, promising to take a more aggressive approach more commonly only seen on the sales side.

More than that, the real promise of PTDs is to take advantage of the highly valuable first party data that publishers are sitting on, and extend their reach to inventory on external partner sites. PTDs are probably most relevant for niche sites or verticals - where you can extend your audience across a range of contextually similar partner sites.

Behavioural TargetingRTB brings to play comes a whole host of opportunities for advertisers to target their ads. It’s worth a quick recap of what exactly those targeting capabilities are, since we’re all guilty of talking about this type of data in vague, general terms:


• Site/Content Targeting - lets buyers target by account, site, channel, keyword, zone, placement, time, browser and ad size.

• 2nd Party Data - SSPs facilitate the buyer’s audience campaigns where the advertiser leverages their own cookie pools and audience data (“2nd party data”) this happens through so-called “cookie sync”. The RTB buyer is never given direct access to the publisher’s site or the user’s PC.

• 1st Party Data - Audience targeting leveraging publisher data: A special type of RTB-powered targeting consists of leveraging the publisher’s own data (“1st party data”). This would normally be set up only within a private marketplace to mitigate against data leakage.

• Retargeting – applying the logic of search to display, showing ecommerce-related product offerings or other offerings the user has just viewed on another site. Potentially high CPMs, but frequency capping and creative execution are key to prevent users from feeling bombarded by ‘creepy’ ads that follow them around the web.

The real potential of the PTD is in a combination of contextual plus targeted impressions at scale. On the downside, it requires (often directly competing) publishers to collaborate closely, something which has held back many of these efforts so far.

SummaryIn summary, advances in efficiency and innovation are leading to new business models, and new sources of demand, increasing revenues for publishers on a global scale. The more money flows in, the more efficient the market becomes. The further marketers’ budgets go, the more they spend on digital.


Data

Programmatic buying - or Real Time Bidding - on display advertising seems to have “arrived” in the UK this year, having been a much discussed, but little utilized, topic of many an industry event panel and conversation over the last couple of years. It will account for ~14% of the UK Display Media Spend in 2012 and is forecasted to account for 25% of all Display Spend in the UK by 2015.

With the exponential growth of platform-traded media and RTB much of the attention is now focused on the availability of data to aid and inform the bidding process. The impressions bought on a real-time-bid basis are only as good as the data you have on the user behind the impressions, and there are real opportunities for publishers to now leverage their data to improve the effectiveness and yield of an ad campaign.

Dora Michail, Director, DR Marketplace,Data Strategy and Media

Buying, Yahoo! EMEA


Thinking about your data

If you are a publisher who has traditionally sold media over the years there are now questions to be considered to help unlock and understand the potential behind the data you are able to capture from your user base. By doing so, there is real potential to improve your yields as well as the performance of a campaign.

Some key questions to consider:

• What type of data do you have on users? - Demographic data? - Behavioural data? - Purchase Intentions?

• Which type of advertisers would it benefit? - If your site content attracts an affluent audience of a certain demographic then this would be of

interest for many a brand advertiser looking to put their products front of mind. - If your site includes information about certain products or services, for example price comparison

or reviews, then this type of audience – i.e. those who are in the purchase cycle – would be of interest to a direct response advertiser.

• How will you segment your user data? - Audiences such as auto intenders for example can be incredibly sought after by advertisers,


but consider the difference between a user who is interested in the latest BMW release, versus a user in the market to actually buy.

- Demographic data is often the foundation against which you can sell your audiences and by overlaying certain demographics – be it age or gender or both, you can add both value to the advertiser and a premium to your site.

- Product segmentation is another useful way of defining your user base. If your site sections are built around product reviews for example, such as consumer electronics by brand or type, this can be a great way to add value to an impression based on what a user’s recent activity infers about their purchase intentions.

- Interest data such as those who read travel or fashion blogs can be great audiences for many advertisers looking at creating brand awareness.

- Search terms, as the biggest search companies know, give some of the best insights into what a user is in the market for in real-time. By leveraging this information and using it to put the right ad in front of a user, the value of that impression can be increased dramatically if you have a search box in your site.

• Will you de-couple your inventory from your data and sell it independently from your inventory to be used by buyers across other sites?

• Or will you couple your data with your inventory, preventing any data leakage and allowing you to price up the audience targeted inventory?


• Who will you sell to?

There are a number of buyers of data in the marketplace: - Data Management Platforms - DR Networks - Pure-play Data Aggregators - Agency Trading Desks - Advertiser’s direct

Managing your data

There are various options when it comes to finding a scalable way to manage your data and achieve some of the things we discuss above.

Data Management Platforms (DMPs) can be used by publishers in order to support the framework for selling both inventory couple with data or stand-alone data selling.

• How does it work?

- DMP pixel tags across your site drop cookies on user’s browsers - From here you can segment your audiences into practical and useful

segments based on user activity


- Parameters might include: o KW searches o frequency of visit o recency of visits o combinations of activity on pages of interest or products of interest

• Why might you want to license one?

- Reporting & Insights into your user base - Building audience based go-to-market offers for your advertisers - Transparency for advertisers - Ease of segmentation

• Costs & pricing models can vary

- CPM based on monthly page views processed is common

There are other options for data management should the cost of a DMP present an issue. As previously mentioned, there are several buyers of data in the market. Some examples are below:

• DR Networks - Most networks today have the ability to create 1x1 pixels that can segment your site - They’ll be able to share performance uplifts with you versus other data providers (but will keep

their sources anonymous) - They have hundreds of Direct Response advertiser campaigns every month and are therefore


looking for purchase intent data for the retail, travel, auto & telco sectors - They won’t sell it on to other parties, they will use it for their own optimisation - Pricing models may vary but a flat fee for pixel tenancy per month is common. The price is often

based on the unique user numbers of your site and the simple set-up and guaranteed monthly revenues can make this a very easy route for publishers to go down.

• Data aggregators - These companies are looking for a broad range of data – purchase intent, user interest, demo,

etc - often for both DR & Branding campaigns - They aggregate multiple data sources and using algorithms to combine them produce segments

that they sell on to Agency Trading Desks, Networks, Demand Side Platforms, etc - Pricing models can vary, it could include: o Flat fee for pixel tenancy per month o Rev share o Usage on a CPM basis

Understanding Performance

The buyers of data in this market will have clear performance goals and profitability margins to meet. Therefore understanding how your data performs and ensuring you have the segmentation right in order for it to add real value to advertisers is key. As a basic principle, the impression overlaid with data should always yield greater results, be they click through rates, or conversion rates, than an untargeted impression does.


Some other tips• Ensure you are valuing your data appropriately; it should result in higher CTRs and CVR than

“vanilla” untargeted impressions and therefore deserves a premium price

• Data performance and value will always be in question whilst we continue to attribute conversions based on the last click/last view model

• When you are selling media, protect your data in your Ts & Cs with the buy-side. In other words, buyers of your media shouldn’t be dropping pixels and building data segments based on the media they are buying from you; they should be willing to pay for the use of the data.

Publishers making use of their data by sharing it in some way with the buy-side is a viable opportunity under the right terms and conditions and many publishers have found this to be an entirely new revenue stream in the last couple of years. Defining your own data strategy is key in a market where those with unique or exclusive data or inventory are likely to succeed in a real time advertising world.

We can’t talk about performance without acknowledging the limitations of the last click / view model. We should expect to see the buy-side valuing activities higher up the purchase funnel, using improved ‘path-to-conversion’ reports which show the value in prospecting new customers for advertisers. This is an important conversation to have when discussing the performance of your data.


Finding the righttechnology

Nicolle Pangis, President,

Real Media Group

There has been an evolution in media buying, with buyers changing focus. Instead of buying specific website inventory – a placement or location on a web page - they are now more likely to buy a targeted audience type. This enables them to reach their audiences more effectively and to select the best impression to bid on. The pyramids below illustrate how the digital advertising sales strategy has evolved since 1999.

Understanding how the buy side is currently buying

Sponsor

Direct Sold

Network

Sponsor

Direct Sold

Network/SSP

Audience

Context/Channel

Private Exchanges

RON/Brand

Direct Response

RTB/Exchange/Network

Data Monetisation

1999 2005 2011

Insider Sales

Third Party

PremiumSponsorship

CPM InventoryValue


For a publisher to remain competitive in today’s complex and challenging marketplace, it is important that they find an appropriate, sophisticated technology that will enable them to manage all kinds of inventory and optimise yield. The illustration below shows a more integrated and holistic sales strategy that could be adopted by publishers today.

Context/Channel

Ad Exchange Private Exchange

Sponsorships Audience Direct Response

RON

3rd party data Single Ad ServingTechnology with

YieldOptimisation

1st p

arty data

Technology is now the critical tool that gives publishers the ability to segment audiences for advertiser needs and to deliver precise targeting while transitioning easily from a world of manual campaign implementations to programmatic advertising.


Understanding the different technologies available to sellersFirst, publishers must make sure they have an understanding of the wide range of technology available and the advantages inherent in each one. Here are the main technologies that should be understood:

Agency - An advertising agency is a company that represents other companies by providing advertising related services such as planning, creating, buying and tracking an advertisement on behalf of their client.

Trading desk – An agency branch trading entity known as the expert operators in their use of new technology. These entities can be independent or operate within an agency holding company. This group of people (known as traders) play the day-to-day campaign management role. Who uses: Agency holding companies, operating agencies, advertisers.

Ad exchanges - An online auction based marketplace that facilitates the buying and selling of inventory across multiple parties ranging from direct publishers, Ad Networks and Demand Side Platform (DSP). These automated marketplaces enable sellers to monetise inventory via acceptance of the highest bid from buyers. Who Uses: Advertisers, Agencies, Ad Networks, DSPs, and Publishers.

Ad networks - An online advertising service provider, often with proprietary technology, that helps marketers run display advertising campaigns across various sources of online inventory, including Direct Publishers and Ad Exchanges. Who Uses: Advertisers, Agencies to reach audiences, Publishers to sell remnant inventory.


Ad server - A technology that delivers and tracks advertisements independent of the web site where the ad is being displayed. Use of an ad server helps establish trust between an advertiser and publisher since the statistics can be maintained by an objective third party. Who uses: Advertisers, Agencies, DSPs, Ad Networks, Publishers.

Demand-side platform (DSP) - An advertising technology platform which allows marketers to manage their online media campaigns by facilitating the buying of auction-based display media and audience data across multiple inventory and data suppliers in a centralised management platform. Who Uses: Agencies, Marketers.

Data exchanges - An online auction marketplace where advertisers acquire third-party data that helps them better reach their target audiences with display. Data Exchanges were created as marketplaces where Online Data Providers could sell their data directly to DSPs and Ad Networks. Who Uses: Ad Networks, DSPs.

Data management platform (DMP) - Platforms that allow advertisers, agencies, publishers and others to control their own first-party audience and campaign data, compare it to third-party audience data, and give the ability to make smarter media buying and campaign planning decisions via behavioural targeting or extending audiences via lookalike modeling. Advertisers and agencies generally utilise DMPs in order to buy more effectively while publishers typically utilise DMPs in order to segment their audiences and sell more effectively.


Online data providers/data aggregator - The definition of an “Online Data Provider” is broad and includes a number of players and data types, such as companies like Experian (Financial data), Nielsen (demographics and psychographic data) and OwnerIQ (purchase history). Who Uses: Advertisers and their agencies, Ad Networks, DSPs, Data Exchanges.

Real-time bidding (RTB) – RTB is a protocol that enables the valuation and bidding on individual impressions in real time. The buying takes place over online media exchanges – basically media marketplaces – which connect sellers (publishers) and buyers (advertisers).

Publisher – A web property providing content for consumers using the internet. Business models range from subscription services to advertising monetisation. Publishers that choose to monetise their site with advertising have a choice to sell their inventory through direct, remnant or automated RTB channels.

Supply-side platform (SSP) - An advertiser technology platform which represents publishers / the suppliers of online ads. SSPs give publishers the ability to increase their website advertising revenues by engaging with multiple demand-side channels (Ad Networks, Ad Exchanges and DSP’s) through a single vendor. Who Uses: Publishers.


• Learn the Technology

Explore how the technology is connected to the whole ecosystem and how it will impact your site latency. Choose a tech partner that can provide solutions to cover all necessary requirements.

• Understand and Control Inventory

When considering an ad exchange or a demand partner, it is very important to take stock of inventory and to understand what marketers are buying and how it is currently priced. It is critical to have the ability to segment inventory into clear buckets, and to efficiently use an ad server to ensure total control over exactly which inventory is provided on an exchange.

• Establish Clear Value

When working directly with an advertiser, publishers must ensure that the ad packages / audience segments they provide are clearly differentiated from what can be purchased programmatically.

Choosing a technology partnerPublishers have a wide variety of technology partners to choose from and identifying the right one for you can be a challenge. Here are some key points to consider when looking for a technology partner:


Sellers should be thinking more like marketers and developing custom solutions that take full advantage of the content, brand, and voice of the publication being sold. Consider, for example, selling non-standard display units. In taking a different approach, not only are publishers listening to clients better, providing them with ideal solutions, but also ensuring that the pricing models of the exchange will not undercut or devalue their premium inventory.

• Transparency and Protection

Before committing to a platform, be sure it includes brand safety measures, that it supports automated block lists (so you are able to define who can purchase your inventory), and is fully integrated with ad verification solutions.

• ePrivacy

The revised ePrivacy Directive (transposed into UK law as the Privacy and Electronic Communications (EC Directive) (Amendment) Regulations 2011) requires the informed consent for “the storing of information or the gaining of access to information stored in the terminal equipment of a subscriber or user”. It is important to have an appropriate consent mechanism on your site(s) as well as up-to-date privacy policy that includes a description of the cookies used and other technologies. Publishers can also use the AdChoices icon (e.g. in a footer) to notify internet users of behavioural targeting (see adchoices icon below). For further details on the new law see: www.iabuk.net/policy/briefings/iab-fact-sheet-may-2012-revised-eu-eprivacy-directive.

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IAB DISPLAY TRADING SELLERS GUIDE IAB DISPLAY TRADING SELLERS GUIDE 37

• Fully Leverage Programmatic Buying

Programmatic buying, RTB, is a very efficient sales channel and, if deployed properly, will drive new revenues from non-endemic advertisers, increase fill and improve yield and overall revenues. Inventory made available through exchanges should be smartly packaged and tiered with varying pricing floors to promote the best yield possible and aid in the protection of the direct sales channel. However, to get full benefit from programmatic buying, the majority of standard display inventory should be viewable and biddable enabling both direct and indirect buyers to compete for the inventory.

To find out more please go to - www.iabuk.net/displaytrading or contact - [email protected]

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The advertising industry has developed a self-regulatory initiative across all EU and EEA markets with the goal of offering internet users clear, transparent and contextual information about the collection and use of information for behavioural advertising (including retargeting), as well way this information can be controlled and managed, and ways to turn it off altogether.

At the heart of this work is an icon that will appear in or around the advertisements on websites, as well as on web pages themselves. When a user clicks on the icon he or she will be able to find out more about the information collected and used for this purpose. The icon will also link to ways for the internet users to manage their interests, such as via privacy dashboards or ad preference managers. It will also link to pan European website now available in 24 different EU languages – www.youronlinechoices.eu – with helpful advice, tips to help protect privacy and a control page where you can turn off behavioural advertising. As yet, the icon does not have to be applied to ads on mobile or other connected devices (but can be). Further details on the initiative are available at: www.iabuk.net/obafactsheet.

Additional information on ePrivacy

It is mandatory for third party ad businesses to license and serve the icon in or around ads. Publisher can also use the icon on their web pages (e.g. as a footer) and details on how to apply for an icon are available at: www.edaa.eu. Publishers are encouraged to work with third party ad businesses committed to this self-regulatory programme. Whilst not, in itself, a compliance solution for the revised ePrivacy Directive, the initiative has the full support of the UK Government and European Commission.

IAB DISPLAY TRADING SELLERS GUIDE

IAB DISPLAY TRADING SELLERS GUIDE 39

AdMeld Tom JenenCommercial Director [email protected]

ad pepper Media Henrik [email protected]

Adconion Maria CadburyADR UK [email protected]

AppNexus Nigel Gilbert Director of Sales, [email protected]

Google Tanzil BukhariHead of Buyer Relations [email protected]

Infectious Media Zoe SteventonManaging Director [email protected]

Jemm Media Julia SmithConsultant [email protected]

Media MathErich WassermanCo-Founder, GM EMEA [email protected]

Microsoft Scott Burford3P Procurement Lead [email protected]

Quantcast Phil MacauleyEU Managing [email protected]

Quisma Ellie Edwards-ScottManaging [email protected]

Real Media Group Larry Allen SVP Business [email protected]

Right Media, Yahoo! Sue HuntDirector, Right Media [email protected]

Rubicon Project Commercial Director, EMEAOliver Whitten [email protected]

Specific Media Katie FieldVP European Publisher [email protected]

UnanimisWill KingMarketing [email protected]

ValueClick Media Elliott ClaytonHead of [email protected]

Yahoo! Dora MichailDirector, Media Buying EMEA [email protected]

DIRECTORY

To find out more please go to

iabuk.net/displaytrading

Coming soon:

“IAB Future of Display guide”

www.iabuk.net

IAB Display Trading Sellers Guide Internet Advertising Bureau

14 Macklin StreetLondon WC2B 5NFT: +44(0)20 7050 [email protected]

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