WFA webinar featuring Anthony Rhind, Global CEO of Havas Digital to introduce programmatic digital management or "what are DSPs and trading desks all about?"

1. Programmatic digital management,
or "what are DSPs and trading desks all about?"
Webinar, 20th May 2012

2. Quick introductions…
Anthony Rhind Rob Dreblow
Global CEO

3. Questions from many WFA associations…
Serbia

4. …and also from multinational members

5. So we started digging...

6. Some confidence creeping in…
How much do you know about agency trading
desks?
Good working Nothing, 0%
knowledge,
Not much,
22%
33%
Fair
understanding,
44%
Source: WFA online survey: Base: 9 companies. Date: April 2012. Beware: low sample

7. Usage increasing, but concerns remain…
Do you use your agency
group’s trading desk?
If not, why not...?
Don't
know Yes
• “Lack of transparency”
11% 56% • “Invariably this gives rise to
conflict of interests”
• “Lack of transparency and
conflict of interests at
No agency”
33%
Source: WFA online survey: Base: 9 companies. Date: April 2012. Beware: low sample

8. “Will demand-side platforms encourage
you to…”
Increase marketing
Agency spend
50%
Advertiser
29%
Decrease marketing
Don’t know 30% 0% 12%
spend
26%
20%
32%
Have no impact
Source: WFA/ Festival of Media survey. Mar-Apr 2012 Base. 70.

9. LIVE POLL 1
Which of the following do you agree with?

10. LIVE POLL 1
Which of the following do you agree with?

12. Some definitions
Some precautions
Some wild predictions
Some questions

13. Hype, hype, hype, hype, hype, hype
4/20/2012 :: 13 ‘Media’ … analogue to digital

14. Forrester view:
changing structure of media buying …
Source: Forrester – The Future of
Digital Media Buying (January 2012)

15. Forrester view:
changing process of media allocation
a
Source: Forrester – The Future of Digital Media Buying (January
2012)

16. Programmatic ‘RTB’ is scaling
… not a specialist niche
Source: eMarketer

17. Why all this complexity … ?
Over-supplied Under-measured
Impactful, innovative, mobile ...
Fixed cost entertainment hard to measure ROI
Growth in low cost
advertising markets
Driven by social

18. Over-supply created secondary markets …
Adnetworks: Image
daisy chain
Ad Exchange:
Rightmedia Exchange
operations image –
neutral platform
simultaneously
connecting buyers /
sellers
Source: PubMatic: Death to the Ad Network Daisy Chain (Jan 2009)

19. Ad Exchanges created to flatten ‘secondary’
market, initial (RMX) principle of neutrality

20. Proliferation of ‘exchanges’ …
no longer neutral

21. Trading takes place in ‘real-time’:
Invite Media / Google’s explanation of RTB

22. Trading takes place in ‘real-time’:
Invite Media / Google’s explanation of RTB
Most commonly used data sets …
•Time of day
•Date
•Full URL
•OS
•Browser Type
•Browser ID
•Referral URL
•Location (IP)
•Search / behaviour history
•Data markets remain nascent …

23. Now auctionmarket-makers on
both buy & sell sides (DSPs & SSPs)

24. Invite Media / Google’s explanation of a DSP

25. Invite Media / Google’s explanation of a DSP
Source: Forrester – The Future of
Digital Media Buying (January 2012)

26. Beware an illusion of ROI integrity …
attribution is one digital-elephant in the room

27. Rewards ‘attribution gaming’ …
cookie-bombing / chasing last pixel

28. Rewards ‘attribution gaming’ …
cookie-bombing / chasing last pixel
Very expensive RTB
marketplace placement

29. Invest in verification:
Ad delivery, ‘data ghosting’, cookie / data usage

30. LIVE POLL 2
Are you using a 3rd party delivery verification
company such as the companies Anthony has just
shown?

31. LIVE POLL 2
Are you using a 3rd party delivery verification
company such as the companies Anthony has just
shown?

32. Control pixels on site …
Consolidate retargeting & performance buys

33. Evolve attribution: First capture all influences
across paid, owned & earned touch-points
Acquisition
On-Site
Halo Effect
Targeted
Display
ROI Social
Halo Effect
eCRM
SEM
Halo Effect

34. … getting to a single consumer view is complex
Display adserver, Rich-media adserver, search optimiser,
site analytics provider, 3rd party enrichment sources,
social interactions, offline relationship (store / CRM)

35. … enables you to model weight of contribution
Position in
Position in search results
journey
Click or view path
Density of
interaction
(frequency Recency of
within a time interaction
period)
Nature of
Ad keyword:
size Customer
Branded or not. segmentation
High / low and value
volume

36. DMP & the emerging specialism of ‘Big Data’
Real-time ‘programmatic’ experience optimisation
Universal iD
integration

37. Data driven: ‘Addressable media’ should be
supported by ‘addressable communication’
Dynamic Ad Home/ Landing Dynamic Site
Versioning Page Optimisation Path Optimisation
Original
Optimised
Dynamic creative message
& offer listings
Matched creative to media
environment
Optimized best performing Lift = 107%
creative combination CPA improvement 58%
Time on site increased
& bounce rate reduced

38. Trading desks today
 An opportunity to consolidate all aggregated buying
 Should be developing bespoke segmentation to evolve ‘addressable at scale’
 Must be measured transparently versus other inventory sources
 Will help protect you from attribution gaming
 Can not operate at traditional digital media management remuneration levels

39. Programmatic buying in the medium term
 Current digital display advertising model is not sustainable:
 Over-supplied, under-measured, under-valued … consumer / advertiser / yield
 Programmatic model most effective with scarcity, certainty & quality
 Segmentation reduces wastage
 Data improves certainty (targeting & attribution)
 Design management improves consumer response
 Display environment / inventory must improve
 Video & mobile are scaling on ‘exchange’ marketplaces
 TV, digital OOH, digital cinema & tablet ‘print’ will soon be ‘ad-served’
 Anticipate segment-able / addressable model, with creative adaptability
 Mobile will add a powerful data layer – SO LO MO CO
 Anthony Rhind’s view (not speaking for Havas):
 Majority of all media will be adserved & traded programmatically
 Trading desks will be the ‘deployment’ arms for agencies (across P.O.E.)
 DSPs are the technology layer – adservering & optimisation commodity

40. LIVE POLL 3
Which of the following do you agree with?

41. LIVE POLL 3
Which of the following do you agree with?

42. What’s next for WFA members?
• More detailed peer research and ad-hoc web meetings
• Included on agenda at Digital Network : 10th May, Paris
• Updated ePrivacy webinar: 15th May
• Round-table at Media Committee: 3rd October NYC

43. Thank you!
Anthony Rhind
anthony.rhind@havasdigital.com
Rob Dreblow
r.dreblow@wfanet.org