The Evolution of Digital Media BuyingMarch 27, 2015

Contents

1. Personal Background

2. Evolution of Digital Media Buying

3. Ad Exchanges: Key Benefits for Buyers

4. Future Outlook

5. Closing Remarks

Personal Background

Buying

Selling

2008

2009

2011

2013

Evolution of Digital Media Buying

Publishers & Ad Networks

Beweb (1995)

AdLink Internet Media (1995)

Hi-media (1996)

…

‘95: consolidation of the market

Advertiser Agency PublisherAd Network*

Demand Supply

De Persgroep (2006)

Rossel (2008)

Sanoma (2012)

…

‘06: insourcing & re-fragmentation

Advertiser Agency Publisher

‘94: first display banner & fragmentation

Advertiser Agency Publisher

Introducing the Ad Exchange

“An ad exchange brings together buyers and sellers to buy and sell online

advertising inventory in an automated manner”

‘05 first ad exchange: Right Media (later Yahoo RMX)

Advertiser Agency PublisherAd NetworkAd

Exchange

Demand Supply

Advertiser Agency DSP PublisherAd NetworkSSPAd

Exchange

‘07 first DSP’s and SSP’s: Turn, Rubicon, Admeld, …

Demand Supply

Ad Exchanges

What’s Next: From RTB to Programmatic

RTB: How can I outsmart

my competitor-buyer?

- Technological issue: take

into account auction

mechanics, algorithm, yield

management

Private Marketplaces: How

can I get the most out of

trading?

- Social issue &

Technological issue: get to

know all media & tech

partners, negotiate, close

deals based on platform

metrics

Ad Exchanges: Key Benefits for Buyers

‘Traditional media is 10 to 15 times more

efficient to buy & sell’Eric Picard, Founder and CEO of Rare Crowds

‘Digital programs (…) the most labour-

intensive medium in the advertising industry’Joe Burton, COO Universal McCann

Ad Exchanges: Key Benefits for Buyers

1. Efficiency

1st party ad server 3d party ad server Ad exchange

Material Handled by seller Handled by seller & buyer Handled by buyer

Measurement Seller Real-Time Real-Time

Delivery Control Seller Seller Buyer

Optimization on KPI’s None Seller Buyer

Ad Exchanges: Key Benefits for Buyers

2. Control

Combining trading and

campaign optimization to

yield better performances and

in-view rates (65%-70%)4%

14% 13% 10%17%

44%34% 29%

42%29% 31% 31%

60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% open exchange vs. private deals

private deals open exchange

Ad Exchanges: Key Benefits for Buyers

3. Quality

Source: http://img.en25.com/Web/TurnInc/%7Bd06963a9-4d83-41d0-a78d-ca27122980e2%7D_Turn_AII_Report_May2014_.pdf

Future Outlook

A Video in a Magazine App

A Banner in a TV interface

Boundaries disappearing

17

Syncing opportunities:• Own TV spots• Competitor TV spots• Sync occurs in real-time• Across desktop, mobile and tablet

Xaxis Sync: Reach TV viewers in real-time across screensBoundaries disappearing

The Medium is A

Screen Size

From Channel Buying to Integrated Buying

TV Video TV Channels

OOH Image Billboard

Print Text/ImageNewspapers/

Magazines

Digital Banners Websites

Programatically Bought &

Holistically Measured

Manually Bought &

Separately Measured

“The medium is the message” (McLuhan) The medium is a screen size

Device (screen size)

Video, text, banners,

audio

Ad Campaign

ConsumerDataAnalytics

Online Radio, Digital Out Of Home

Already There

In-game Advertising

Wearables

Connected TV

Potential Is Huge for E-Commerce

Closing Remarks

Closing remarks

• Ad Exchanges Bring More Efficiency, Quality &

Control for Buyers (power shift)

• Higher CPM’s for Quality Publishers

• Evolution From RTB to Programmatic

• Boundaries between Media are Disappearing

• Digital will be the Technology, the Medium a Screen

Size

Thank You

Frederik Dooms

Xaxis Director - Group M

be.linkedin.com/in/frederikdooms/

@Frederik_Dooms

frederik.dooms@xaxis.com