This document outlines 5 predictions for trends in real-time bidding (RTB) in 2014. The trends include: 1) Increased use of RTB for branding and video campaigns. 2) Forward market buys with premium publishers. 3) How brands are tying RTB to offline sales metrics. 4) Advances in non-cookie user targeting. 5) How advanced buyers are building their own optimization rules and algorithms. The document also discusses related topics like the rise of programmatic buying by agencies, increased use of RTB for video, and potential replacements for cookies for user tracking and targeting.

1. Five Predictions for 2014
OMMA RTB - Chicago

2. FROM THE TEAM THAT INVENTED REAL-TIME BIDDING
ENGINEERING
TEAM:
Only
team
in
the
world
to
build
mul2ple
RTB
pla7orms
FOUNDERS:
Started
AdECN,
the
first
ad
exchange,
bought
by
MicrosoD
in
2007
HEADQUARTERED:
Ventura,
California;
addi2onal
offices
in
Los
Angeles,
New
York
City,
Chicago,
San
Francisco,
Boulder,
London,
Hamburg,
Singapore
and
Tokyo.
TTD
POWERS:
5
of
7
agency
trading
desks,
3
of
top
5
ad
networks,
and
many
more
agencies
and
buyers

3. Five big trends for 2014
1. The
rise
of
RTB
for
branding
and
video
campaigns
2. Forward
market
buys
with
premium
publishers
3. How
brands
are
tying
RTB
to
offline
sales
and
metrics
4. Advances
in
non-­‐cookie
user
targe2ng
5. How
advanced
buyers
are
building
their
own
op2miza2on
rules
and
algorithms
3

4. CPG is here to stay in RTB
4

5. End of artificial silos
These materials are not intended for distribution outside
of The Trade Desk and its partners and customers
5

6. Agencies are following suit
In-­‐house
trading
team
Dedicated
agency
RTB
trading
team
Dedicated
agency
RTB
trading
team
Dedicated
agency
RTB
trading
team
6

7. Video stands to gain in 2014
Queries
per
second
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Display
Video
7

8. Video stands to gain in 2014
These materials are not intended for distribution outside
of The Trade Desk and its partners and customers
8

9. Five big trends for 2014
1. The
rise
of
RTB
for
branding
and
video
campaigns
2. Forward
market
buys
with
premium
publishers
3. How
brands
are
tying
RTB
to
offline
sales
and
metrics
4. Advances
in
non-­‐cookie
user
targe2ng
5. How
advanced
buyers
are
building
their
own
op2miza2on
rules
and
algorithms
9

10. Agencies are following suit
Deal
ID
as
good
start
Can
I
buy
this
ad
in
RTB?
These materials are not intended for distribution outside
of The Trade Desk and its partners and customers
10

11. What
went
wrong
with
Deal
ID?
• Deal
ID:
Single
code
to
match
a
buyer
with
a
publisher
in
an
RTB
auc2on.
• More
fric2on
than
liquidity
• Less
scale
than
the
old
way
• Too
many
phone
calls
and
emails
for
over-­‐worked
RTB
buyers
• No
commitment
from
either
side

12. The
Forward
Market
$1,000
CPM
from
a
poliRcal
agency
for
Ohio
swing
voters
in
November
2016
2016
PresidenRal
Candidate

13. The
Forward
Market
–
how
it
works
• Commits
to
sending
10M
impressions
per
day
to
the
buyer
in
Nov.
2016
2016
PresidenRal
Candidate
• Commits
to
buying
10%
of
the
impressions
they
see
in
Nov.
2016
at
agreed-­‐upon
CPM
• More
stability
and
higher
CPMs
for
pubs
• More
scale
on
audiences
that
buyers
want

14. Five big trends for 2014
1. The
rise
of
RTB
for
branding
and
video
campaigns
2. Forward
market
buys
with
premium
publishers
3. How
brands
are
tying
RTB
to
offline
sales
and
metrics
4. Advances
in
non-­‐cookie
user
targe2ng
5. How
advanced
buyers
are
building
their
own
op2miza2on
rules
and
algorithms
14

15. WHY
ARE
WE
STILL
MEASURING
CLICKS?

16. Same-­‐store
sales
Red
to
digital
media
•
•
•
•
•
•
Pet
food
brand
experiment
in
Pacific
NW
A/B
tested
in
grocery
stores
Heavy
digital
spend
by
zip
in
test
regions
proved
same-­‐store
sales
liD
of
17%
Used
checkout
data
for
lookalike
modeling
and
audience
refinement
Took
program
na2onal
CMO
judged
digital
program
by
offline
sales

17. Brand
li
Red
to
digital
media
“Do
you
plan
to
purchase
this
brand
in
the
next
30
days?”
300
200
100
0
Yes
Primarily
18-­‐24
female,
Bravo
watchers,
HHI
<
$50K,
in-­‐market
2-­‐door
sedan,
plays
musical
instrument
No
Primarily
34-­‐48
married
female
with
teenagers,
HHI
>$90K,
rural/
exurban,
TLC
watchers,
reality
show
junkies

18. Five big trends for 2014
1. The
rise
of
RTB
for
branding
and
video
campaigns
2. Forward
market
buys
with
premium
publishers
3. How
brands
are
tying
RTB
to
offline
sales
and
metrics
4. Advances
in
non-­‐cookie
user
targeRng
5. How
advanced
buyers
are
building
their
own
op2miza2on
rules
and
algorithms
18

19. Will cookies die in 2014?
•
Challenges
from
Mozilla,
consumer
privacy,
lack
of
targe2ng
on
mobile…
•
Rise
of
unique
IDs
from
Google,
Facebook,
MicrosoD…
•
New
entrants
with
proprietary
tech
like
Tapad,
Drawbridge…
19

20. User
tracking
is
not
winner-­‐take-­‐all
• Proprietary
tracking
systems
won’t
last
(or
scale)
• Google,
Facebook,
MicrosoD
(or
anyone)
controlling
user
IDs
isn’t
good
for
the
rest
of
us
(or
consumers)
• There
needs
to
be
an
open
source
standard

21. OpenStatID
A
collabora2ve,
open-­‐source
standard
to
user
iden2fica2on
and
privacy

22. Five big trends for 2014
1. The
rise
of
RTB
for
branding
and
video
campaigns
2. Forward
market
buys
with
premium
publishers
3. How
brands
are
tying
RTB
to
offline
sales
and
metrics
4. Advances
in
non-­‐cookie
user
targe2ng
5. How
advanced
buyers
are
building
their
own
opRmizaRon
rules
and
algorithms
22

23. • 2013
Ford
Mustang
-­‐
$22,200
• 2013
Saleen
351
Mustang
Black
Label
-­‐
$82,600

24. Bring Your Own Algorithm
•
Every
DSP
has
its
own
algorithms
and
op2miza2on
•
But
advanced
media
buyers
are
bringing
their
own
op2miza2on:
–
–
–
•
Mining
CRM
data
and
selng
unique
CPM
bids
for
every
single
user
Building
(and
selling)
op2miza2on
systems
on
top
of
the
DSP
Crea2ng
advanced
rule-­‐sets
and
algorithms
that
are
proprietary
A
true
plaiorm
welcomes
innovaRon
builders
24

25. THE
TRADE
DESK
C O N T A C T :
B R I A N
S T E M P E C K
BRIAN.STEMPECK@THETRADEDESK.COM