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Hi Advertising , meet Mr Big Data. 12 février 2013. Remember 1996 ?. The beginning of online advertising: a process inspired by offline media buying. Mid 90’s. “ I'll pay you 100 $ for 1000 impressions of my ad on your homepage.”. “OK, I'll take care of it.”. Advertiser.
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Hi Advertising, meet Mr Big Data 12 février 2013
The beginning of online advertising: a process inspired by offline media buying Mid 90’s “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. #3 #1 #2 Precise knowledge of where your ad will be displayed Targeting based on visited page content Direct sales
The explosion of web inventory volumes led to the development of intermediaries called "Advertising Networks” 2000’s “We have a lot of inventory to sell but not enough media sales force to deal with it” “We still have ads to display but not enough time and resources to deal with all the publishers!” Publishers Advertisers 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.” “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.” Advertising Network 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.
Google launched a totally transparent way of purchasing high volumes of targeted inventory : AdWords 2000’s When search results are delivered, Google also displays sponsored links related to the search keywords: AdWordsAds.
Advertisers and publishers are turning to real-time bidding (RTB)through Ad Exchanges 2012 Demand for ads and real-time bids (automatic orders) based on data provided by publishers and data possessed by the marketer Publishers Advertisers Available inventory and real-time data on who is seeing each piece of inventory Demand Side Platform AD EXCHANGE Sell Side Platform A DSP is a software for transparent automated media buyingacross multiple Ad Exchanges. An advertiser uses several DSPs. An Ad Exchange is a real-time marketplacethat automates inventory buying and selling. 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
Automated buying through Ad Exchanges is predicted to grow over the next years U.S : 28% France : 51% CAGR 2011-2015 27% 21% 15% 10% 9% 4% Share of RTB in all display* ad sales in the U.S.and France Note: *IAB display formats including richmedia formats 2011 2012 2015 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 real-time auction to all devices. Source: Real-Time Bidding in the United States and Western Europe, 2010–2015 , IDC, october 2011
••• Quote “If you want to see the future of the ad-tech industry, look to the history of the financial-services industry” Andrew Nibley, former CEO of Yieldex Advertising has just begun to emerge from a decade of opaqueand information-starved deal-making. 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.
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! Second screen experiences A/B testing Interactive TV Web-to-store Real-time targeting Facial recognition Data ubiquity Sentiment analysis
To paraphrase John Wanamaker: Wenowcan know which of advertisingisuseful 50%