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STATE OF THE INDUSTRY

Publisher Trends: Brand, Audience, and Real-Time Bidding Online Survey Conducted March, 2011

[Based on Presentation by Eric Klotz, VP Marketing, PubMatic Digital Publishing Summit, Park City, Utah, 03.28.11 ]

DEMAND FOR AUDIENCE TARGETING HAS NEVER BEEN GREATER.

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DEMAND FOR PREMIUM PUBLISHER BRANDS HAS NEVER WANED.

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Premium Brand

Premium Audience

Years ago the two were synonymous

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Premium Brand

Premium Audience

Over time they became disconnected

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Publisher Fears About Audience

VS.!
AUDIENCE

Audience Targeting was historically publisher brand agnostic Advertiser demand for Audience Targeting is growing Some fear that Audience Targeting will diminish brand value

Its Not Brand or Audience Its Both

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AUDIENCE

Advertisers want better transparency (as do publishers) Premium brands will always prefer premium content Advertisers and publishers want trusted relationships

DESPITE CHANGES IN TECHNOLOGY AND PERCEPTION.... THERE IS ONE THING THAT ISNT CHANGING SOON:
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ADVERTISERS STILL CONTROL THE BUDGETS.

Study Objectives
Finding the greatest demand for buying

Finding the greatest opportunities for selling

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The PubMatic + Digiday Study

Survey Respondents: 644 Conducted Online March 2011

71%

29%
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Buyers Were Broken Down By

Representing Single Advertiser

Representing Multiple Advertisers

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Publishers Were Broken Down By

Currently opening inventory for RTB

Does not currently open up inventory to RTB

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Demand for Audience Targeted Campaigns Grow, and Denition of Audience Targeting Evolves

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Demand for Audience is Growing

97%
ACROSS ALL ADVERTISER AND AGENCY RESPONDENTS

will use audience targeting in 2011 will have more than 1/2 of their total online spend include audience targeting

47%

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Demand for Audience is Growing

87% 48%

will have inventory sold with audience targeting

(user level attributes)

will have more than 1/4 of their inventory be audience targeted

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Right Content vs. Right Audience

If you can only pick one, which is most important?

90 72%
Audience

70 30 10 30

70 29

71

28%
Brand

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Missing Opportunities

66% 3%

have an increase in RFPs that include specic audience segment targeting of publishers have never seen any RFPs that include some audience segment targeting
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Missing Opportunities

47% 30% 23%

have had to turn down RFPs due to inability to target the requested segment have not

are unsure

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Dening Audience Selling / Targeting

Traditional Publisher Denition DSPs / Ad Nets Denition

AUDIENCE

Publisher collected data Based on limited information Not sold in real-time

Robust 3rd Party Data Enhanced targeting mechanisms: creative optimization & 3rd party contextual targeting Sold via Real-Time Bidding
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Dening Audience Selling / Targeting

74%

of advertisers prefer to use DSPs and ad networks to target audience

Todays denition of audience targeting includes 3rd party data because that is what the advertisers want
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Its Not About Audience vs. Publisher Brand: Advertisers Want Both in a Single Campaign

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Brand Safe Environments

What is your preferred method for purchasing audience campaigns?

#1 Response:
Direct from the Publisher
Brand safety and relevant content alignment is of utmost importance to our clients.
Respondent quote from study

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Publishers vs. Intermediaries

What are the benets of working with a publisher vs. an ad net or DSP?

More transparency and more trustworthy partner. they have a vested interest in being truthful and keeping direct clients loyal.
Respondent quote from study

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Combining Brand Value + Audience Targeting will Help Publishers to Meet Market Demand

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Private Marketplaces
Todays denition Premium Brand Premium Audience
with 3rd party data

Making them synonymous again

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Breaking the Technology Barrier

They control RTB budgets They want direct access

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Private Marketplaces: Publisher Sold & Controlled RTB

Two-way conversation Two-way transparency

Private Marketplaces

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Buyers Want Directly Sold RTB

If publishers could sell RTB directly, what would likely be your preferred method of buying audience targeted inventory?

ACROSS ALL ADVERTISER AND AGENCY RESPONDENTS

RTB far outweighed Non-RTB for audience buying RTB from the publisher received signicantly more votes than any other method including RTB from ad nets or DSPs
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Advantage for Buyers

Biggest incentives to buy RTB campaigns direct from publisher vs. DSPs / Ad Nets
Least Important Most Important

ACROSS ALL ADVERTISER AND AGENCY RESPONDENTS

Brand Safe Guaranteed Placement Greater Transparency

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Increasing RTB Spend

Would having direct access to RTB from a publisher likely increase your overall RTB budget?

Likely Not likely

72% 28%

74% 26%

62% 38%
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Increasing RTB Spend

Why would you increase RTB spend for publisher direct RTB campaigns?

Having control of exactly which publisher I was running on - with the increased benet of RTB allowing more efciency with a quality audience
Respondent quote from study

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RTB is Still Very Young

Advertisers are adopting RTB faster than publishers

62%
HAVE USED RTB

Supply vs. Demand

20%
OPEN INVENTORY TO RTB
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Growth of RTB ad formats

2011
21-30

% of online

budget across all buyers

(Based on most popular responses)

11-20
None

1-10

Video

Mobile

Rich Media Online Standard Online

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Growth of RTB ad formats

Not quite born

2011
Early Teen

Infant

Toddler

Ad format life stage

Video

Mobile

Rich Media Online

Standard Online
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Lots of Opportunity for Publishers 2011 2015

Majority of standard units bought via RTB

OpenRTB (.info) creating standards across online, mobile, and video Programmatic ad buying will increase especially as inventory grows
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 Demand for advanced audience targeting is growing Advertisers want the best of both audience targeting and premium brand association Publishers, now more than ever, have the ability to combine both to meet market demand Get the rst mover advantage now

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WE TAKE SIDES!

ADVERTISER!

PUBLISHER!

Learn More About Private Marketplaces

Contact Us: Phone: (646) 706-7171 Publishers contact: sales@PubMatic.com Demand partners contact: adnetworks@PubMatic.com For General Information: info@PubMatic.com www.PubMatic.com California Ofce: New York Ofce: 100 Vandam St. 444 High St. Third Floor Fourth Floor Palo Alto, CA 94301 New York, NY 10013