The Future of the Forward Market

The Future of the Forward Market, Q1 2014 White Paper and Survey Results: The Trade Desk and Digiday Jeff Green CEO The Trade Desk

THE TRADE DESK IS A BUYERS’ PLATFORM BUILDING BUSINESSES FOR

THE NEXT 100 YEARS.

The world is changing how it buys and sells the annual $600B in advertising.

NEW WINNERS AND LOSERS WILL EMERGE FROM THIS TRANSITION.

EVERYTHING OF SIZE WILL BE TRANSACTED DIGITALLY.

RTB HAS NO GUARANTEES

•  647 digital media and marketing professionals

•  35 percent as agencies, 7 percent identified as advertisers, 36 percent as publishers, and 22 percent as none of the above. The 22 percent who responded as none of the above only answered the first series of questions which gave us our baseline of “programmatic” and “premium programmatic” definitions.

METHODOLOGY Digiday State of the Industry Survey

Analysis consisted of a series of cross-tabulations alongside some basic correlation analysis using both Pearson and Spearman methods. In addition, three qualitative interviews were conducted with programmatic specialists

on both the buying and selling sides to confirm or interpret the findings.

90% programmatic is more than just the RTB spot market

55% already buying premium inventory via programmatic

>1 year how long have you been buying premium via programmatic?

11-20% how much of your digital budget went to programmatic?

0-10% how much of your 2013 programmatic budget went to premium?

>1 year when did you embrace programmatic premium?

67% direct buy relationships are not an obstacle to buying premium via programmatic

80% expect to increase 2014 programmatic spending, & increase premium spend

SKEPTICISM

where the analogy fails

no price discovery

no current scale in private marketplaces

odds of winning are different

commodities are all different.

every ad is different. utility is very different

transacting inventory for a

$5,000 cpm for every

fence-sitting voter

in Ohio the three final days before the election.

the answer

Scale can only happen when we can apply what we learn at 10k impressions to 100 MM.

trump card •  uses RTB pipes

•  run the auction but the trump card bypasses the auction

•  publishers guarantee to send inventory of certain kind

•  advertisers guarantee to buy at certain rate or amount

the solution

0

20

40

60

80

100

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100 MS 1 DAY 1 MONTH 1 QUARTER 2 QUARTERS

DEMAND FOR FUTURE INVENTORY

DEMAND FOR CURRENT INVENTORY

incremental demand

80%+ OF FORWARD CONTRACTS WILL INITIATE FROM THE BUY SIDE.

OUR PREDICTION

YOU THANK

for listening