One of the most popular sessions of our IAB Canada X-Series: RTB event in May 2013. CPAX, the Canadian Premium Ad Exchange, discussed how they formed their alliance and the shared candidly how they operate. Presented by Corby Fine, Senior Director & GM and other participants within CPAX.

2. So, why CPAX?

3. Our first year.
Spring 2012
Summer / Fall 2012
Winter 2013

4. Numbers we like.
CPAX ecosystem:
+24B CDN impressions / month (A.N.)
+1M server calls a second (global)
+200 CPAX bidders connected
+100% growth monthly impressions
+130% growth impressions won
+225% growth in monthly revenue (10% French)
+50% of spend to date driven by Canadian Agency Trading Desks

5. An Overview Of The RTB Business In Canada
Total online ad spending along with display spending is growing at a CAGR of approximately
7.5% into 2016, with display retaining its 32% share of online ad spending.
Sizing Of The RTBmarket!
the Business In Canada
An Overview
Canada: RTB Digital Display Ad Spending 2011-2016
(millions $C)
Total online ad spending along with display spending is growing at a CAGR of approximately
2011
2012
2013
2014
2015
2016
CAGR
7.5% into 2016, with display retaining its 32% share of online ad spending.
Total Spending Online*
2593
2904
3180
3446
3744
4006
7.5%
Total Display Spending*
% of Total Online that is Display
840
32%
944
33%
1025
32%
1284
32%
7.3%
Canada RTB Display Spending
% of Spending Online*
TotalDisplay that is RTB
% growth in total rtb
Total Display Spending*
15
2011
2%
2593
191%
840
302012
3%2904
94%944
% of Total Online that is Display
Growth of Display less RTB $
Canada RTB Display Spending
% growth Spending Online
% of DisplayTotal Display
% growth in that is RTB
% growth Display less RTB
% growth in total rtb
32%
825
15
2%
191%
33%
915
12% 30
12%3%
94%
11%
53 2013 82 2014 117 2015 155
5% 3180 7% 3446 10% 3744 12%
81%1025 54% 1114 43% 1204 32%
32%
32%
32%
971
1032
1086
1130
10% 53
8% 82 9% 117 7%
5%
9%
9% 7% 8% 10% 7%
6% 81% 6% 54% 5% 43% 4%
47.1%
2016
37.1%
4006
1284
32%
5.4%
155
12%
32%
Canada: RTB Digital Display Ad Spending 2011-2016
1114
32%
1204
32%
(millions $C)
CAGR
7.5%
7.3%
47.1%
37.1%
*Converted to Display of 1.008 CDN
Sources: eMarketer - Oct., Dec., 2012
Growth of CDN at rateless RTB $/ USD
825
915
971
1032
1086
1130
5.4%
% growth Spending Online
12%
10%
8%
9%
7%
% growth in interesting,
12%
9%
9%
8%
7%
What’s moreTotal Display perhaps, is that starting in 2013 the growth in display spending will
% growth Display less RTB
11%
6%
6%
5%
4%
increasingly come from RTB.
*Converted to CDN at rate of 1.008 CDN / USD
Sources: eMarketer - Oct., Dec., 2012
The revenue from direct sales of display at present yield a much higher CPM than the average
What’s more interesting, perhaps, isthen RTB will increasingly encroach in display revenues will
RTB CPM brings in. If nothing changes that starting in 2013 the growth on display spending
increasingly come from RTB.
as advertisers expect more inventories to be made available. At present, it is primarily unsold
inventory that is being offered of display systems like CPAX, but going forward than likely
The revenue from direct salesthrough RTBat present yield a much higher CPM that isthe average
to change.
RTB CPM brings in. If nothing changes then RTB will increasingly encroach on display revenues

6. Total online ad spending along with display spending is growing at a CAGR of approximately
7.5% into 2016, with display retaining its 32% share of online ad spending.
An Overview Of The RTB Business In Canada
Sizing the market!
Canada: RTB Digital Display Ad Spending 2011-2016
(millions $C)
Total online ad spending along with display spending is growing at a CAGR of approximately
2011
2012
2013
2014
2015
2016
CAGR
7.5% into 2016, with display retaining its 32% share of online ad spending.
Total Spending Online*
2593
2904
3180
3446
3744
4006
7.5%
Total Display Spending*
% of Total Online that is Display
840
32%
944
33%
1025
32%
Canada RTB Display Spending
% of Spending Online*
TotalDisplay that is RTB
% growth in total rtb
Total Display Spending*
15
2011
2%
2593
191%
840
302012
3%2904
94%944
% of Total Online that is Display
Growth of Display less RTB $
Canada RTB Display Spending
% growth Spending Online
% of DisplayTotal Display
% growth in that is RTB
% growth Display less RTB
% growth in total rtb
32%
825
15
2%
191%
33%
915
12% 30
12%3%
94%
11%
53 2013 82 2014
5% 3180 7% 3446
81%1025 54% 1114
32%
32%
971
1032
10% 53
8% 82
9% 5%
9% 7%
81% 6% 54%
6%
Canada: RTB Digital Display Ad Spending 2011-2016
1114
32%
1204
32%
1284
32%
7.3%
(millions $C)
117 2015 155 2016
47.1%
10% 3744 12% 4006
37.1%
43% 1204 32% 1284
32%
32%
1086
1130
5.4%
9% 117 7% 155
8% 10% 7% 12%
5% 43% 4% 32%
CAGR
7.5%
7.3%
47.1%
37.1%
*Converted to Display of 1.008 CDN
Sources: eMarketer - Oct., Dec., 2012
Growth of CDN at rateless RTB $/ USD
825
915
971
1032
1086
1130
5.4%
% growth Spending Online
12%
10%
8%
9%
7%
% growth in interesting,
12%
9%
9%
8%
7%
What’s moreTotal Display perhaps, is that starting in 2013 the growth in display spending will
% growth Display less RTB
11%
6%
6%
5%
4%
Too conservative?
increasingly come from RTB. 422 CDN Marketing Execs say:
*Converted to CDN at rate of 1.008 CDN / USD
13%
Sources: eMarketer - Oct., Dec., 2012
46%
38%
22%
The revenue from direct sales of display at present yield a much higher CPM than the average
What’s more interesting, perhaps, isthen RTB will increasingly encroach in display revenues will
RTB CPM brings in. If nothing changes that starting in 2013 the growth on display spending
increasingly come from RTB.
have
Say RTB is
average increase
utilize RTB now
as advertisers expect more inventories to be made available. At present, it is primarily unsold
increased
fully integrated
in RTB spend in
inventory that is being offered of display systems like CPAX,much
The revenue from direct salesthrough RTBat present yieldwithin higher CPM that isthe average
a but going forward than likely
spend
5 years
2013
to change.brings in. If nothing changes then RTB will increasingly encroach on display revenues
RTB CPM
past year
as advertisers expect more inventories to be made available. At present, it is primarily unsold
There are too many variables to accurately predict what will happen to the Canadian RTB
inventory that is being offered through RTB systems like CPAX, but going forward that is likely
marketplace in the next 10 years:

7. CPAX TECH

8. Just The Basics
• User Visits
Website
• Publisher has ad
inventory to
monetize
• Advertiser has
campaigns to
deliver
• Ad is served
to the site

9. Pop Quiz
28%

10. Evolution
RTB TECHNOLOGY
SSP
• User Visits
Website
DSP
• Ad is
served to
the site

11. CPAX Set Up (Current)
Publisher Ad Servers flow inventory to
AppNexus
AppNexus custom installation merges 4 seats
into one targetable entity
Content Channels representing 100+ sites are
targetable as single domain e.g.
http://WomensLifestyle.cpaxrtb.ca
Console and DSP clients are both able to target
without a custom connection to AppNexus

12. CPAX Controls
PUBLISHERS:
Control their own rates
Manage their own block list
Add/remove inventory in minutes
Can customize opportunities by bidder

13. Challenges
US 3rd party data doesn’t scale in Canada
Verifications services (e.g. Pier 39)
DSP rate issues
DSPs Optimize differently
Direct Deals difficult to manage

14. Solutions
More consistent pricing per channel via strategic
analysis of bid rates
Less domains to target and manage
Support for verifications services
Collaboration with DSPs
Publisher Direct Options

15. What’s next?
DIRECT
GUARANTEED
PREFERRED
(RTB or
DIRECT)
OPEN
(RTB)

16. D-A-T-A
Publishers are building segments $
audiences
CPAX offers aggregate data
opportunities
Publishers have different
specializations
In aggregate, no audience is left out

17. Retargeting
Publishers within CPAX maintain the
ability to manage retargeting
campaigns within the collective
with preferred pricing on media
Costs
Fully transparent
EXCHANGE
CPAX
NETWORK
Same safe, premium brands
Data from one publisher, mixed
with inventory from the others
SITE

18. More Info: CPAXRTB.ca
COMING SOON: Mobile & Audio Inventory!