The Future of the Forward Market

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

Jeff GreenCEOThe Trade Desk

THE TRADE DESK IS A BUYERS’ PLATFORM

BUILDING BUSINESSES FORTHE 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.

METHODOLOGYDigiday 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

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

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

<1 yearwhen 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

the solution

100 MS 1 DAY 1 MONTH 1 QUARTER 2 QUARTERS0

20

40

60

80

100

120

140

160DEMAND FOR FUTURE INVENTORY

DEMAND FOR CURRENT INVENTORY

incremental demand

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

OUR PREDICTION

YOUTHANK

for listening