Iab future of display guide

MOON DSP

FUTURE OF PLANET

DISPLAY MEDIA

Trading Guide

MOUNT
PUBLISHER

ADVERTISER
LAND

IAB FUTURE OF DISPLAY TRADING GUIDE

Contents
The future of Real Time Bidding 1
The path to automated brand spend 4
Five years time 7
Are brands taking enough care to stay safe online? 10
Connected TVs to take over the living room in 2013 13
The future influence of data in display advertising 19
The mobile potential for Real Time Bidding 23

IAB FUTURE OF DISPLAY TRADING GUIDE 1

The future of Martin Kelly,

Real Time Bidding Co-founder and CEO,
Infectious Media

Since its emergence in 2010, Real Time Bidding (RTB) has been one
of the most over-hyped technologies in advertising. I wrote an article
earlier on this year on Exchange Wire where I talked about RTB
actually being a huge disappointment and this struck a chord with a
number of advertisers that we’ve spoken with who can’t see what all
the fuss is about. These advertisers are generally seeing RTB
as just another line on their usual media plan, shuffling money
from one supplier to another with very little benefit to them.
And, this is the main issue with RTB as we enter 2013, we
fundamentally don’t know what to do with it yet. We’ve witnessed the
creation of an amazing infrastructure that has the ability to deliver
so much and yet to-date has delivered little for advertisers beyond
making it easier and potentially cheaper to do exactly what they have
been doing since the late 1990’s when display advertising was born.

2 IAB FUTURE OF DISPLAY TRADING GUIDE

So what’s next, what can we expect and what do we need to
do? Firstly, education is key, not only for advertisers but also for
the people that create and implement campaigns on their behalf.
Instead of thinking of RTB as a method of doing the same thing
slightly better, we need to look at what the technology enables us
to do. To be clear, the endgame is about making the advertising
experience, rather than the buying process, better. When we get
there we’ll start to see a real shift plus excitement from advertisers.
Two technologies stand out for us as areas that are going to be
key to facilitate this shift, the widespread adoption of the Data
Management Platform (DMP) and dynamic creative technologies.

It seems obvious but what makes the real-time space conceptually better is that we can use actual
audience data to make buying decisions rather than using panels (TGI, ComScore etc.). This is
great in theory but in practice getting data is difficult. Third party data has proved itself unreliable
and a red herring. Ultimately the real change, and competitive advantage for the advertiser, comes
from unlocking the value of their own first party data. Again, great in theory but in practice it can
take up to six months to even get a pixel on an advertisers site! DMP’s are platforms that allow
advertisers to take control of their own data assets, storing them somewhere that’s secure and
giving the flexibility to analyse and cut segments, and finally linking this to the real-time buying
space to action those audiences.


‘What does a real-time advert look like?’ This is a question I was asked recently by a big
advertiser and it summed up one of the most fundamental current problems we have as an
industry. We have all this amazing technology that allows us to pinpoint our audience and bid
solely for them and yet we generally show them the same ad we show everyone else. This goes
back to educating everyone in the industry, we’re so used to not being able to target media buys
very well that we’ve become accustomed to producing creative that has to appeal to millions of
people. So when the opportunity comes to target smaller audiences more precisely our existing
ways of working are not sufficient. Think about search advertising, when the ability was introduced
to build ad copy dynamically, the increase in response rates was
dramatic compared to when generic copy was used. When we
target an audience because they live in Manchester or it’s a sunny
day, or because they have been to our site, then let’s personalise
the creative based on that, the technology is there to do it, it just
needs our planning processes and creative agencies to catch up.

There’s been a dramatic shift over the last two and a half years and
there is nobody left denying that RTB/programmatic trading is the future.
However, if we’re really going to fulfil the potential on offer then we need
to change the most analogue function, how we are thinking about it.


The path to
automated brand spend
Cost efficiencies Jay Stevens,
Vice-President and General
From stock exchanges, to car sales on eBay, to the tech that Manager, International –
powers the airline trade, you don’t have to look far to see the Rubicon Project
automation benefiting a wide range of industries.

Many of these solutions start low down the chain (‘remnant’ airplane ticket
sales, low cap stocks on the Nasdaq) but are so effective they end up
powering it all (Sabre Systems now provides the back-end for the entire
travel industry, and eBay Motors is selling cars at a rate of one per minute).

In the same way, Real-Time Bidding (RTB) in online display promises to make
the execution of ad deals far less convoluted, repetitive and inefficient than was
the norm before this trading mechanic gained widespread acceptance in 2011.

But the automation we’ve seen so far is really just the start – the first steps
to a fully automated future, with a single buying point for multiplatform brand
campaigns incorporating mobile, video and social.


When you add in real-time creative and the reach that’s possible across emerging BEEP! BEEP!

publisher co-ops, it’s safe to say we’ve only just started to scratch the surface of
what might be possible in branded RTB.

Back in the present, early signs of RTB beginning to connect with the brand side
come in the way of agencies describing DR and brand spend as different sides
of the same coin – since the audience understanding gained from DR on RTB
channels can also be used to inform campaigns on the branding side.

Add to this the fact that top global brand advertisers from the automotive sector
(Ford, Nissan, Toyota) show up regularly already on top 10 lists of RTB buyers.

Attribution
Another key factor in the future growth of RTB brand spend is better attribution and more
specifically, looking at audience penetration and viewability of ads rather than just the clicks and
conversions which have dominated this largely DR-led area so far.

Attribution modelling represents a move away from the traditional ‘last click wins’ mentality, which
has, some would say, benefitted search engines to the detriment of publishers’ display advertising.
The aim is to understand fully the influence of ads across different sites (and platforms), 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 plump for TV until we make digital just as
straightforward and simple to buy.

Since automated channels are more transparent than traditional ad
networks, with single buying and selling points allowing true frequency
capping and lack of duplication, agencies are starting to be able to
use RTB insights to inform 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 effectively learning how to prove
the effect of branding earlier in the sales cycle.

With larger formats, takeovers and rich media coming to RTB in future, and multi-screen publishers
like Sky and Virgin taking the first steps towards integrated cross-platform insights themselves, not
to mention fast growing marketer interest in mobile advertising, social media and online video – all
of these factors spell one thing:

The first steps on the path to brand campaigns shifting to automated channels. We’re not there
yet, but we’re most definitely on the way.


Five Years’ Time Gustav Mellentin,
CEO, Adform

Gustav Mellentin looks at why a mixture of accessibility and
innovation lies at the heart of progress for the online display
marketing industry over the next five years.
Online display: a rapidly evolving space that is capturing the
imagination of the entire digital marketing industry. Display has been
a major player in the digital marketing mix for some years, but its
role at the forefront of maximising brand presence online has
been given a boost through a wave of recent innovation.
Advances in rich media have made the space
more exciting and engaging for consumers, with
new formats offering a clearer approach to interactive
online ads. Use of automated and programmatic
formats have also supported display’s growth,
perpetuated by media coverage welcoming the
benefits Real Time Bidding brings.


But there is a current danger that with innovation comes fragmentation, with numerous players
producing very specific solutions that optimise display in their own individual way. High numbers
of vendors now exist specialising in dynamic creative optimisation, product re-targeting, exchange
buying and campaign optimisation. With an increasing volume of products, some have embraced
the many technologies available to them and have worked out innovative combinations that
produce extremely effective campaigns.

However the danger lies with others who are grappling to get their heads around the innovations
at their disposal. In line with this, we asked attendees of ad:tech London 2012 what they wanted
to see in the next five years – nearly three quarters (73%) said they would hope to use a fully
functioning single platform to run all elements of their display marketing campaigns in the next five
years. It was therefore hardly surprising that respondents pointed to their
annoyance at the current inaccessibility of online display advertising solutions,
with 53 per cent of marketers frustrated about having to use multiple platforms
to run campaigns.

This raises the question of the overall accessibility of the display world. It
appears that abbreviations borne out of the innovations coming out of display,
are making the industry more difficult to understand to others in the digital
marketing community.


Our research found that under a third of marketers (32%) can decipher
the term RTB, despite IDC claims that the real-time bidding market is
expected to be worth around £4 billion in ad spend by 2015 in the U.S.
and major markets in Western Europe. The findings also found other key
terms are unfamiliar to digital marketers, with only 26% recognising DSP,
18% understanding SSP and only 4% identifying DCO (dynamic creative
optimisation).

Technology and creative thinking should remain at the heart of the industry. But over the next
five years, the display industry needs to carefully assess how it will make itself as accessible and
understandable as possible to its digital marketing peers. Where channels such as mobile, video
and social have been the subject of considerable hype in the recent past, they are set to converge
and integrate more and more over the coming years. This will undoubtedly prompt marketers to
call for more consistently accessible solutions to run multichannel campaigns – no matter which
channel makes up the focus of a particular campaign.

A decent first step is to give the industry what it wants – a platform that integrates creative, third
party ad serving, planning, real time bidding, dynamic creative optimisation, data management and
path to conversion reporting into a seamless workflow. As the omnichannel approach emerges as
an increasingly important part of marketers’ overriding strategies, display should aim to become as
straightforward as it can over the course of the next five years if it is to seamlessly play its part at
integrating with effective brand building campaigns.


Are brands taking enough care to
stay safe online?
Julia Smith,
Independent Consultant,
Our clients ask our sales team a lot of questions; Jemm Group Ltd.
“Are you giving me value for money?” “What’s my ROI?”
“Can you turn this direct response display ad around in a
week?”, and the now infamous “How can we make this trend?”
Whether the budget is big or small, marketers have a right to
ask as many questions as they can about their campaigns, to
reassure their bosses and remain confident that their target
audience is being reached in the right way at the right time.

But I wonder how many clients ask the question “Am I safe?” Perhaps that
seems like a strange preoccupation to have in this day and age when markets
are mature and advertising is one of the most advanced, revolutionary industries
on the planet. But the concept of brand safety is creeping up the agenda, as
advertisers and agencies realise that serious steps need to be taken in order to
protect their brands, particularly online.


Media planning and buying is now, of course, a far more complex beast. Gone are the days when
you had a tried and tested broadcast/print/outdoor formula that guaranteed sufficient reach within
channels as overwhelmingly reliable as a pair of old slippers. But the times have changed, and with
the growth of digital came an increase in new, dynamic, often user-generated content both on and
offline. As engaging and fresh as this content is, it may not always be the best place for a brand
to find themselves. On the other hand, for younger, riskier ad campaigns, this could be the perfect
place, but it’s a dilemma that needs to be acknowledged.

In fact, at the IAB Engage conference a few years ago, AOL’s president of global advertising and
strategy, Jeff Levick highlighted the need for brands to be much more aware of where their ads
are going, and the impact of appearing next to inappropriate content. He said that with the rise of
reality television, advertisers now can’t be so sure they’re placed within the most relevant media
surroundings. He said that “marketers are steadily running out of places to control their brand”,
and referenced a quote from a senior marketer at P&G, who had told him that more than “60% of
network programming will be reality television and I can’t put my brand there”.

This presents opportunities for the digital industry. Behind the scenes for some years now we’ve
been taking great strides in ensuring that brands no longer see the internet as a veritable ‘wild
west’, or a vast incomprehensible space unfettered by moral codes. And that’s where DTSG, the
Digital Trading Standards Group, has stepped in to ensure that advertisers and agencies have no
uncertainty about how safe their ads are online.


The DTSG is a cross-industry group that has drafted the Good Practice
Principles. Their aim is to significantly reduce the risk of the misplacement
of display advertising across the digital trading ecosystem.

But whilst best practice guidelines can be put into place and codes of
conduct launched to police the activities of organisations online, as an
industry we should always strive to achieve ’100% safe’. As technology
develops, so too should our business models and our methods of
reassuring advertisers that their ads are in safe hands.

For example, we have seen significant growth of real-time services which monitor where ads
are appearing next to content (based on keywords) to further reduce the risk of inappropriate
placement. We’ve all been sent by our friends the screen grabs where ads for airlines appear next
to news stories about plane crashes, and marketing messages for junk food are positioned on
discussion threads dedicated to obesity. Such real-time ‘content safe’ services will greatly reduce
these risks, and serve to reinforce the integrity of our medium even further.

So brands have a responsibility to ask their agencies “Am I safe?” They need to be confident that
their ads are not just getting to the right people and evoking the right response, but they’re not
surrounded by inappropriate content that could damage their reputation. They should be asking
the question, and then letting the experts do the rest, because brand safety is incredibly easy to
achieve, but if lost can prove incredibly difficult to retrieve.


Connected TVs
to take over the living room in 2013
Shirlene Chandrapal discusses the changing Shirlene Chandrapal,
television landscape and how Connected TV VP Connected TV,
is affecting user behaviour. smartclip

In the last few years we have seen the advent and
growth of the Connected TV market, and with
research and consulting firms predicting a possible
1.6 billion devices in use by 2014 the future for
the Connected TV looks very bright heading into
2013. The increased consumer engagement
and targeting capabilities this channel offers to
advertisers means it is important they are ready to
take full advantage of the opportunity this medium
presents. As this more connected world continues
to become more pervasive and take over the living
room, smartclip has compiled the top predictions
for 2013:


1) More fragmentation

We can expect to see more fragmentation. TV and device
manufacturers will continue to develop what they think makes
sense for them and not for the industry or more importantly for the
consumer. Although there will be progress in some areas, such
as platform architecture, the complexity relating to input devices,
interactivity, improved computing power whilst maintaining profit
margins and so many players getting involved, will result in more
fragmentation in 2013. Initiatives such as the Smart TV Alliance
still need to find ways to make it easier for content producers
to build for multiple devices cost efficiently. This also extends to
ad serving solutions, which are becoming less standardised and
result in content producers having to implement 3 or 4 different
ad-serving solutions if they intend to build for multiple platforms. If
device manufacturers are serious about making money, payment
solutions and advertising needs to be more standardised. They
can differentiate on the user experience, search, recommendation,
and other areas, but they need to make it much easier to build
opportunities for all platforms to drive revenue through transaction
and/or advertising.


2) The growth of the second screen and social TV

Simultaneous use of the Internet and TV is becoming the
norm. In fact, recent consumer research carried out at
smartclip showed that nearly two-thirds of people use the
TV
internet frequently while watching TV. Most of this usage is
social TV or email currently. Social reinforces appointment-
based viewing and presents a compelling use case for
broadcasters and content producers of traditional TV. We
will see more and more synchronised apps from content
producers to counteract multi-tasking and on-demand
viewing. Device manufacturers who build multiple products,
such as tablets and smartphones, will make it easier to build
for 2nd screen opportunities through auto
content recognition and other technologies
for interacting or synching with the
big screen.


3) Data and targeting
With multiple devices working off the same network and interacting with each other, device
manufacturers and content owners can analyse behaviours and gather data that will improve
the consumer’s experience. This data can also be extended to the advertising experience. Data
is commonplace in the internet world and has improved targeting and relevancy for many years.
Today, many Connected TV platforms have limitations in their ability to gather or leverage data, but
other devices in the house can be used to determine what people are doing on their TVs. Device
manufacturers are waking up to the importance of data and looking at how they can capture
information that can help their content partners, their advertisers and themselves in building
better platforms for the future.


4) More advertisers will embrace CTV
In 2012 we saw significant growth in CTV traffic across our content
partners, as well as strong interest from advertisers. In some markets,
agencies are already appointing dedicated specialists for Connected TV.
The global TV advertising industry is worth $188.5 billion in 2012 and
when a user is on a Connected TV they are not watching linear TV. It
is, however, the same device in the same household and for the first
time television offers real interactivity. Advertisers can build TV optimised
microsites with the same analytics they have on the web and can drive
users to these sites from their ad campaigns across Connected TV.
Our research study that was conducted in Germany, which is one of
the most advanced markets for CTV, found that the biggest use case
on Connected TVs was surfing the web. 48% of people were surfing
the web despite the fact that most of these websites are not optimised
for TV or the remote control. In addition to surfing the web, video on
demand, gaming, music, news, information services, and social were
all popular pastimes on Connected TV. There is a finite amount of time
and these services steal time from linear TV. Advertisers are beginning to
realise the opportunity this presents, as well as the ability to target a more
educated, affluent, and sophisticated TV audience.


5) The start of the really fun stuff

2013 will see more innovation around 3D, augmented reality,
voice, gesture, and kinetics in general. This is still early and
has a strong novelty factor associated to it, but we are
beginning to see the window to the future of a truly advanced
TV experience. Content producers and advertisers are already
exploring options to take advantage of these technologies.
Advertisers want to know how they can build an experience
that will allow consumers to truly engage and interact with their
brand in a way that goes beyond standard interactivity,
such as click through. They want the future now.


The future influence of data in
display advertising Richard Sharp,
MD, ValueClick

Data has become an intrinsic
part of the display marketing
landscape. The three pillars
that shape our industry are ENTRY
DATA
technology, data and service
– with data at the heart of
all activity, built into every
campaign or programme in
the online advertising world.

Our company has always been focused on performance, and historically our
strategies revolved around managing which sites display campaigns are served
on; targeting women’s sites to reach women and men’s sites to reach men (in
its most basic of forms), which is very much how things still work in the offline
worlds of press and TV.


We would identify a group of sites targeted at an advertiser’s
audience, and then optimise the site mix throughout the campaign
to deliver the best ROI. This method has, quite obviously, developed
over the last few years to a more active approach; we now look at
individual user behaviour online across multiple devices such as
laptops, smart phones and tablets. We also look at the multiple
stages of the transaction process such as browsing, research,
price comparison leading to the final purchase. All these elements
allow display campaigns to reach users at different junctures in their
daily lives.

It’s not just where data is collected that has evolved either, there are
many types of data available to marketers. Retargeting data can
provide scale and third party data can provide behavioural insight.
However, neither of these provide differentiation or unique data to
marketers. It’s the unique, proprietorial data that I think will shape
the future of this industry.

The one major concern of the industry is privacy. There’s a big
difference between a consumer purchasing a product because
of a retargeted advert and consumers feeling like they’re followed
around the internet by a display advert.


ValueClick looked into this further with a research project in conjunction with the IAB earlier this
year. It was revealed that 45% people agree with the statement: “I am happy for advertisers to
show me relevant advertisements based on my previous web browsing activities,” however 33%
of this group want to know more about how this is done.

Consumers are aware of the influence of data in online advertising, but there’s an underlying lack
of understanding about how it is used. Marketers need to be aware of this issue when dealing with
data in the future, as consumers are becoming increasingly savvy about online advertising and will
start to take more control of their privacy online.

The other development of data is the alignment of online and offline data sets. We’ve been able
to use algorithms to predict user behaviour, we’ve been able to mine insights from data sets and
we’ve been able to match offline information with online cookies. However there’s a lot of dilution
in these data sets and marketers are starting to focus on the quality of data they’re using to match
these elements together, rather than the scale.

These two developments are impacting how advertisers interact with audiences.
Advertisers now have a more complete story about who they’re reaching and who is
responding to their advertising campaigns. Currently few companies use data to tell
a complete story, but this is changing as data becomes easier to access,
easier to understand and easier to gain actionable insights from.


As data becomes the driving force behind even more campaigns, programmes and marketing
strategies, the final key development that we’re going to see is an evolution in attribution strategy.
Advertisers have tools to track users offline and online at scale, but in order to continue to learn
about their audience they will need to be able to de-duplicate the effect of advertising across TV,
print and online. This will allow marketers to look at a holistic picture of their audience enabling
them to tailor their marketing strategy accordingly; allocating ad spend more effectively.

Data is shaping our industry – it’s increasing efficiency, offering insight about audiences and
analysing consumer behaviour. Data can integrate multiple platforms, allowing marketers a
rounded approach to aid their marketing strategy. Technology is important in this industry, it’s the
‘doing’ part of what we do, but if there’s weak data behind it then it doesn’t matter how quickly
you can bid for an impression or how many you can win, the best ROI will come from the best use
of quality data.


The mobile potential
for Real Time Bidding Sue Hunt,
Director, Right Media
Exchange, Yahoo! EMEA
At the turn of the year, everyone was labeling
2012 as the year of mobile, and among the online
ad industry, real time bidding (RTB) was also
earmarked for rapid growth. Not only are these two
predictions looking like they’re not too wide off the
mark, but we could also soon see mobile and RTB
collide and make waves in the industry!

There are plenty of critics of RTB who will point to the
low percentage of UK ad spend it accounted for last
year (around 10%). I, however, sit on the other side of
the fence here so will obviously disagree, but there are
some extremely compelling arguments as to why this
view is off the mark.


Firstly, the key point here is around growth. The uptake of RTB in the US over the last couple of
years is a good indication of what we can expect in the European market, and this was 140 - 150%
year-on-year. In strained economic times where every pound of ad spend is crucial, this growth has
largely been driven through RTB allowing advertisers to reach their audiences efficiently, and easily
demonstrate performance through strong analytics and optimization techniques – whether based
against views, clicks, engagement, etc, whatever success looks like to your brand.

Then we come to mobile, something which is becoming increasingly difficult to ignore for any
marketer who wants to reach and interact with consumers to the greatest affect – not really
surprising given that there are said to be over 60 million mobile phones in the UK and half of these
are smartphones (and that’s before you throw tablets into the mix). At Right Media Exchange we
launched RTB capabilities to further drive performance for advertisers and media owners and it is
important that the same performance capabilities are also made available on mobile
– including targeting by device, browser, OS and Wi-Fi connection – to create
efficient, cross-platform opportunities, all with the same capabilities and
workflow as PC.

We already see up to 1bn impressions per day being monetized on
mobile devices, and if we focus on standardizing the trading model,
enabling the same features and functionality as traditional PC
advertising already enjoys, then we can expect this number to
continue to grow.


DIRECTORY

Adform Jemm Media Right Media, Yahoo!
Neil Cameron Julia Smith Sue Hunt
neil.cameron@adform.com jsmith@jemmgroup.com hunts@yahoo-inc.com

AdMeld
Tom Jenen Media Math Rubicon Project
tjenen@google.com Erich Wasserman Oliver Whitten
erich@mediamath.com owhitten@rubiconproject.com
ad pepper Media
Henrik Kjaer Microsoft Specific Media
Hkjaer@adpepper.com Scott Burford Katie Field
Adconion scottbu@microsoft.com kfield@specificmedia.com
Maria Cadbury
maria.cadbury@adconion.com Quantcast Unanimis
Phil Macauley Will King
AppNexus
pmacauley@quantcast.com will@unanimis.co.uk
Nigel Gilbert
ngilbert@appnexus.com
Quisma ValueClick Media
Google Ellie Edwards-Scott Elliott Clayton
Tanzil Bukhari ellie.edwards-scott@quisma.com eclayton@valueclickmedia.com
tbukhari@google.com

Infectious Media Real Media Group Yahoo!
Zoe Steventon Larry Allen Dora Michail
zoe@infectiousmedia.com larry.allen@realmedia.com michail@yahoo-inc.com

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