Pubmatic, Inc. · NASDAQ:PUBM
Pubmatic — PA Germany Presentations 27 March 2019 FINAL
87 slides from Pubmatic's investor presentation, Mar 27, 2019
Slide 1: #pubacademy
#pubacademy CONFIDENTIAL & PROPRIETARY
Slide 2: Agenda
AGENDA 3:00 PM: INTRODUCTION Sebastian Knauf, Senior Account Director, Germany 3:10 PM: PRESENTATION: Streamlining Digital. The growing importance of Supply Path Optimisation Matthias Juergensen, Director, Publisher Development, Central Europe, PubMatic 3:30 PM: PRESENTATION: The Buyside Perceptions
Slide 3: Agenda
AGENDA 4:30 PM: PRESENTATION: How to attract greater brand spend with improved inventory quality Kofi Amoako, Associate VP, Customer Success Operations EMEA, PubMatic 4:50 PM: FIRESIDE CHAT: The Future of Video Advertising • Sebastian Knauf, Senior Account Director, Germany, PubMatic • Sabine Schmid
Slide 4: #pubacademy
#pubacademy CONFIDENTIAL & PROPRIETARY
Slide 5: CONFIDENTIAL & PROPRIETARY
CONFIDENTIAL & PROPRIETARY 5
Slide 6: CONFIDENTIAL & PROPRIETARY
CONFIDENTIAL & PROPRIETARY 6
Slide 7: What is happening in Supply Path Optimization?
R E D W O O D C I T Y P U N E N E W Y O R K M U N I C H A M S T E R D A M L O N D O N S I N G A P O R E H A M B U R G WHAT IS HAPPENING IN SUPPLY PATH OPTIMIZATION? T O K Y O M I L A N N E W D E L H I S Y D N E Y S T O C K H O L M Matthias Juergensen, Director, Publisher Development, Central Europe,
Slide 8: WTF is SPO and is it relevant in Germany?
R E D W O O D C I T Y P U N E N E W Y O R K M U N I C H A M S T E R D A M L O N D O N S I N G A P O R E H A M B U R G WTF is SPO and is it relevant in Germany? T O K Y O M I L A N N E W D E L H I S Y D N E Y S T O C K H O L M CONFIDENTIAL & PROPRIETARY
Slide 9: SPO - Supply Path Optimization is:
SPO - Supply Path Optimization is: a technology a process an agreement a… CONFIDENTIAL & PROPRIETARY 9
Slide 10: Header Bidding
HEADER BIDDING OLD OLD WORLD WORLD NEW NEW WORLD WORLD (WATERFALL) (WATERFALL) (HEADER (HEADER / WRAPPER) / WRAPPER) DSP DSP 1 1 DSP DSP 1 1 SSP SSP 1 1 DSP DSP 2 2 SSP SSP 1 1 DSP DSP 2 2 If Not If Not DSP DSP 3 3 DSP DSP 3 3 Filled Filled DSP DSP 1 1 DSP DSP 1 1 Impression Impression SSP SSP 2 2 D
Slide 11: Header Bidding
HEADER BIDDING ‘You can get the same publishers across four or five exchanges […] Bill Simmons, CTO, DataXu ‘If I’m buying the same impression from three different SSPs, I have to find ways to differentiate them […]’ Bian Stempeck, CCO, The Trade Desk https://www.thetradedesk.com/news/adexchanger-he
Slide 12: CONFIDENTIAL & PROPRIETARY
12 CONFIDENTIAL & PROPRIETARY
Slide 13: Evolution of SPO
EVOLUTION OF SPO 2016 2017 2018 2019 ‘essentially an algorithm used by DSP’ 13 Introduced in August 2016 https://digiday.com/media/what-is-supply-path-optimization/ (May 24, 2017) CONFIDENTIAL & PROPRIETARY
Slide 14: Two years ago everything changed…
TWO YEARS AGO EVERYTHING CHANGED… ‘We serve ads to consumers through a non-transparent media supply chain with spotty compliance to common standards, unreliable measurement, hidden rebates and new inventions like bot and methbot fraud’ 14 — Marc Pritchard, CBO, P&G, at IAB Annual Leadership Meeting
Slide 15: Evolution of SPO
EVOLUTION OF SPO 2016 2017 2018 2019 ‘essentially an algorithm used by DSP’ 15 ‘Craft or crap? Technology enables both’ https://digiday.com/media/what-is-supply-path-optimization/ (May 24, 2017) CONFIDENTIAL & PROPRIETARY
Slide 16: We have a media supply chain that is murky at best
‘We have a media supply chain that is murky at best and fraudulent at worst’ CONFIDENTIAL & PROPRIETARY
Slide 17: Selbstverliebte Marketingfuzzis produzieren Schwachsinn
„Selbstverliebte Marketingfuzzis produzieren Schwachsinn“ Christian Meyer, Head of Digital, Müller Gruppe https://www.wuv.de/digital/mueller_milch_rechnet_mit_dmexco_und_digital_hype_ab (1. September 2016) CONFIDENTIAL & PROPRIETARY 17
Slide 18: SPO = Response to these challenges
SPO = RESPONSE to these challenges: 1. Transparency 6. Fraud 2. Measurement 7. Adverse Context 3. Latency 8. Ad Blocking 4. Privacy 9. Digital Duopoly 5. Viewability 10. Fragmentation http://blog.pixalate.com/digital-supply-chain-quality-transformation-dmexco-2017 (September 14, 2017) CONFIDENTIAL &
Slide 19: Agencies are waking up to the fact they need to lean in beyond the DSP
‘Agencies are waking up to the fact that they need to lean in beyond the DSP’ CONFIDENTIAL & PROPRIETARY 19
Slide 20: 2018 Scorecards
2018 SCORECARDS q Broad roll-out of ads.txt on desktop IAB framework for apps-ads.txt launched Removal of “buy-side” fees by most SSPs CONFIDENTIAL & PROPRIETARY
Slide 21: 2018 Scorecard: Progress
2018 SCORECARD: PROGRESS q Broad roll-out of ads.txt on desktop Share of Websites Worldwide that Have Implemented Ads.txt 100% (% of total) 80% 72.1% 71.1% 72.5% 64.7% 60% 45.2% 47.9% 49.5% 37.6% 40% 21.6% 20% 8.5% 0% Sept 18 Oct 16 Nov 20 Dec 18 Jan 15 Feb 19 Mar 19 Apr 16 May 21 Jun 18 2017 2018 P
Slide 22: Case: Goodway Group
CASE: GOODWAY GROUP . Industry-first, fully transparent, agency controlled SSP fee model • Moves the SSP fee to the agency • Understand the true cost of media • All buyers are still treated equally in the aucion https://pubmatic.com/blog/agency-supply-path-optimization/ (February 7, 2019) CONFIDENTI
Slide 23: The meaning to publishers
THE MEANING TO PUBLISHERS ‘[…] we believe there is a lot of upside potential to increase revenue as buyers will start to push more spend through supply chains offering 100 percent transparency.’ Jaan Janes VP, Customer Success CONFIDENTIAL & PROPRIETARY 23
Slide 24: Expected timing: next 12 months
EXPECTED TIMING: NEXT 12 MONTHS For all major holding companies and top advertisers QUALITY VALUE SCALE Connect transparently, Outstanding price efficiency Maximize data matching safely and directly in brand and transparent auction and addressable audience safe environments dynamics reach CONFIDENTI
Slide 25: The meaning to DACH market
THE MEANING TO DACH MARKET Consolidation of efforts, more in-depth conversations with a smaller landscape of providers Evaluation of e.g. inventory quality, prices, usability and fraud to assess which SSPs is stronger Getting a sense of where they can access certain publishers through specific SSPs
Slide 26: Thank you
THANK YOU CONFIDENTIAL & PROPRIETARY
Slide 27: #pubacademy
#pubacademy CONFIDENTIAL & PROPRIETARY
Slide 28: The Future or the Wild Wild West: How media buyers are approaching in-app
THE FUTURE OR THE WILD WILD WEST HOW MEDIA BUYERS ARE APPROACHING IN-APP Jeff Hirsch, CMO & Head of Publisher Development, PubMatic 27th March 2019 CONFIDENTIAL & PROPRIETARY
Slide 29: CONFIDENTIAL & PROPRIETARY
29 CONFIDENTIAL & PROPRIETARY
Slide 30: CONFIDENTIAL & PROPRIETARY
30 CONFIDENTIAL & PROPRIETARY
Slide 31: CONFIDENTIAL & PROPRIETARY
31 CONFIDENTIAL & PROPRIETARY
Slide 32: One perspective
ONE PERSPECTIVE 32 CONFIDENTIAL & PROPRIETARY
Slide 33: CONFIDENTIAL & PROPRIETARY
33 CONFIDENTIAL & PROPRIETARY
Slide 34: So what does the research show?
SO WHAT DOES THE RESEARCH SHOW? 34 CONFIDENTIAL & PROPRIETARY
Slide 35: Yes, there are concerns from brands in EMEA
YES, THERE ARE CONCERNS FROM BRANDS IN EMEA #1 Fear of fraud #2 Viewability #3 Brand safety measurement 36 CONFIDENTIAL & PROPRIETARY
Slide 36: And they want tech partners & publishers to take action
AND THEY WANT TECH PARTNERS & PUBLISHERS TO TAKE ACTION TO ALLEVIATE THESE Fraud Offer Brand safety Ad fraud verification viewability verification monitoring verification CONFIDENTIAL & PROPRIETARY
Slide 37: But buyers are allocating more spend to digital….
BUT BUYERS ARE ALLOCATING MORE SPEND TO DIGITAL…. CONFIDENTIAL & PROPRIETARY 38
Slide 38: …and they want to invest more, especially programmatically
…AND THEY WANT TO INVEST MORE – ESPECIALLY PROGRAMMATICALLY Direct Buy Programmatic Direct Open Exchange Stay the same Increase 1-5% Stay the same Increase 1-5% Stay the same Increase 1-5% Increase 6-10% Increase 6-10% Increase 6-10% CONFIDENTIAL & PROPRIETARY 39
Slide 39: So what do brands see as the benefits of in-app?
4. SO WHAT DO BRANDS SEE AS THE BENEFITS OF IN-APP? MORE/BETTER PERSONALISED 55 MARKETING 39 BETTER REACH AND FREQUENCY 38 CAPS 41 IMPROVED/OPTIMISED TARGETING OF 60 In-app video CAMPAIGNS 46 In-app advertising 55 BETTER AUDIENCE TARGETING 55 MORE EFFECTIVE CUSTOMER 61 ENGAGEMENT 55 0 10CONFIDENTIAL
Slide 40: Head of Planning quote on targeting options
“I think the targeting options are much greater, and therefore can impact different, more personalized iterations of creative. Being able to follow people through the full customer journey is another thing. A lot of the targeting options, we wouldn’t be able to get from mobile web.” Head of Planning
Slide 41: What can publishers do to attract in-app budgets?
WHAT CAN PUBLISHERS DO TO ATTRACT IN-APP BUDGETS? CONFIDENTIAL & PROPRIETARY 42
Slide 42: 1. Share & collect data
1. SHARE & COLLECT DATA CONFIDENTIAL & PROPRIETARY
Slide 43: 2. Deliver viewable experiences
2. DELIVER VIEWABLE EXPERIENCES CONFIDENTIAL & PROPRIETARY
Slide 44: 3. Audience transparency
3. AUDIENCE TRANSPARENCY CONFIDENTIAL & PROPRIETARY
Slide 45: 4. User experience is critical
4. USER EXPERIENCE IS CRITICAL CONFIDENTIAL & PROPRIETARY
Slide 46: Bad ads damage the experience
BAD ADS DAMAGE THE EXPERIENCE CONFIDENTIAL & PROPRIETARY 47
Slide 47: Good ads enhance it
GOOD ADS ENHANCE IT CONFIDENTIAL & PROPRIETARY 48
Slide 48: 5. Understand the KPIs that matter
5. UNDERSTAND THE KPIs THAT MATTER CONFIDENTIAL & PROPRIETARY
Slide 49: 6. Transact how buyers want to
6. TRANSACT HOW BUYERS WANT TO CONFIDENTIAL & PROPRIETARY
Slide 50: 7. Implement the IAB's Open Measurement SDK….
7. IMPLEMENT THE IAB’s OPEN MEASUREMENT SDK…. CONFIDENTIAL & PROPRIETARY
Slide 51: …and support app-ads.txt
…AND SUPPORT APP-ADS.TXT CONFIDENTIAL & PROPRIETARY 52
Slide 52: Find out more
FIND OUT MORE Download the Forrester Research at pubmatic.com/reports Read our press release on OpenBid which we launched recently at pubmatic.com/news Access our Quarterly Mobile Index at pubmatic.com/reports CONFIDENTIAL & PROPRIETARY 53
Slide 53: Thank you
THANK YOU CONFIDENTIAL & PROPRIETARY
Slide 54: #pubacademy
#pubacademy CONFIDENTIAL & PROPRIETARY
Slide 55: Panel: In-App Advertising - the Future or the Wild West?
#pubacademy Panel: Moderator: Roger Williams, VP, International Marketing, PubMatic In-App Advertising • Eka Rabe, VP Programmatic, PubNative - the Future or the • Jonas Wedemeyer, Technical Senior Account Manager, Adjust Wild West? • Paul Czekalla, Advertising Technology Manager, eBay Advertising C
Slide 56: Coffee break
COFFEE BREAK CONFIDENTIAL & PROPRIETARY
Slide 57: How to attract greater brand spend with improved inventory quality
HOW TO ATTRACT GREATER BRAND SPEND WITH IMPROVED INVENTORY QUALITY Kofi Amoako, Associate VP, Customer Success Operations EMEA, PubMatic 27th March ,2019
Slide 58: 4 myths about inventory quality in digital advertising
4 MYTHS ABOUT INVENTORY QUALITY IN DIGITAL ADVERTISING Fraud Premium Quality is a detection publishers Buyers know 100% tech alone don’t need to what they are solvable will protect worry IQ buying problem me issues
Slide 59: Understanding inventory quality: thinking beyond bots
UNDERSTANDING INVENTORY QUALITY: THINKING BEYOND BOTS NON-HUMAN LOW-VALUE TRAFFIC HUMAN TRAFFIC PRACTICES THAT MOBILE IN-APP DECEIVE & INVENTORY QUALITY OBFUSCATE
Slide 60: PubMatic's approach
PUBMATIC’S APPROACH § PARTNERSHIPS: We partner with MRC-accredited inventory quality vendors for brand-safety checks and inventory screening across multiple formats and platforms § IQ TEAM: We have a dedicated team that reviews all fraud reports and investigates all fraud complaints § FRAUD-FREE PRO
Slide 61: Non-human traffic
NON-HUMAN TRAFFIC
Slide 62: How non-human traffic works
HOW NON-HUMAN TRAFFIC WORKS STEP 1: STEP 2: STEP 3: SETUP REFINE 12%+ MONETIZE <2% $6.5B Average IVT IVT rate for Brand loss rate cookie Build in the US* premium pubs due to IVT § Botnet Setup (display and video) Sell(PubMatic bot Data) in 2017* profiles to impressions in mirror § Cloud-Based progra
Slide 63: Practices that deceive & obfuscate
PRACTICES THAT DECEIVE & OBFUSCATE
Slide 64: Practices that deceive
PRACTICES THAT DECEIVE AD DOMAIN PAGE-LEVEL POOR USER INJECTION / SPOOFING SCRIPTING EXPERIENCE MALWARE
Slide 65: Practices that deceive & obfuscate: domain spoofing
PRACTICES THAT DECEIVE & OBFUSCATE: DOMAIN SPOOFING KEY TAKEAWAYS § Domain spoofing is a problem that is on a path to extinction thanks to ads.txt § Ads.txt does have limitations: □ Doesn’t work for in-app inventory □ Cannot differentiate between ad formats (video vs. display) □ Risk of human error
Slide 66: ads.txt is not foolproof
; ADS.TXT IS NOT FOOLPROOF TESSERACT pubmatic.com, 123456, RESELLER, 1a2345b678c9def J oL J l T T SSP] TESSERACT RELATIONSHIP CERTIFICATION EXCHANGE SELLER ID TYPE AUTHORITY ID © PubMatic
Slide 67: ads.txt is not foolproof
ADS.TXT IS NOT FOOLPROOF CONTENT Media DISPLAY ADS
Slide 68: Mobile in-app inventory quality
MOBILE IN-APP INVENTORY QUALITY
Slide 69: Mobile in-app inventory quality
MOBILE IN-APP INVENTORY QUALITY DESKTOP MOBILE IN-APP KEY TAKEAWAYS § The signal set for mobile is very Tracking Cookies Device IDs different and can’t be used the same way for non-human fraud IPs Individual computers Cell towers, to which detection by third parties and servers thousands of devices
Slide 70: PubMatic's approach
PUBMATIC’S APPROACH There is currently no standardized solution adopted § Avoiding apps that aren't content heavy (e.g. flashlight, anti-virus) § Look at app store reviews § Exploring/testing unique approaches with new vendor § A preference for top 2000 apps § OM-SDK & App-ads.txt
Slide 71: Low-value human traffic
LOW-VALUE HUMAN TRAFFIC ——— 1] |
Slide 72: How it works
HOW IT WORKS 1. 2. 3. 4. Publisher sets up a Publisher develops Publisher attracts viewers User lands on the website with the primary generic or “listicle’ through paid traffic publisher’s page and purpose of selling ads content at scale acquisition activities ads are served 5. 6. 7. Impressions are
Slide 73: Click bait
~ CLICK BAIT ai 17 Stars Who Gave Up Their Identical Sisters Born In 2010 Children For Adoption Have Grown Up To Become... He Thought It Was Bigfoot's Skull, But Then Experts Told Him THIS Experts always know best! What Little Wednesday What Rebel Wilson Looks Looks Like Now Is Jaw Like Now is Jaw D
Slide 74: Transit hubs
TRANSIT HUBS Chrissy Teigen making early plans for baby number three aie ‘Agents Were Shocked at What ‘They Found This Abandoned re. This Is What Really Happens ‘. ® |)! '() When You Crack Your Knuckles Kidd With Famous Parents: What Do They Look Like Now? Tiiey Tegan taking eat plane forbaby nmbert
Slide 75: Fake authors
_ FAKE AUTHORS ROOT CANAL SERVICES IN BH Adobe stock a» FAE¥) 0 midage SEATTLE Posted by Sharon Vazquez “T cant say how happy Il am to have found SmartFeed. They have made my media searching for my kids better, safer and eas © PubMatic 76
Slide 76: Trust approach to site reviews: Inconsistent traffic patterns
TRUST APPROACH TO SITE REVIEWS: Inconsistent Traffic Patterns
Slide 77: Traffic source analysis
_ TRAFFIC SOURCE ANALYSIS @ nocartridge.com COMPARE DOWNLOAD Traffic Sources © © on desktop 52.40% 34.71% 12.30% 0.11% 0.31% 0.16% & ia Q a om ea © PupMatic
Slide 78: Trust approach to site reviews: Privacy registration
TRUST APPROACH TO SITE REVIEWS: PRIVACY REGISTRATON 79
Slide 79: The power of backlinks
THE POWER OF BACKLINKS 100 70 41 55 45 35 HIGH TRUST (100) (0) LOW TRUST 80
Slide 80: Website A
Website A Website A has an external link to Website B BACKLINK Website B Website B has a backlink from the Website A © PupMatic 81
Slide 81: Trust approach to site reviews: Privacy registration
TRUST APPROACH TO SITE REVIEWS: PRIVACY REGISTRATON PubMatic policy is to exclude inventory from sites with a Trust Flow Score of 0, 1 or 2 82
Slide 82: Best practices to promote quality
BEST PRACTICES TO PROMOTE QUALITY BUYERS PUBLISHERS / APPS ü Partner with accredited vendors to ü Incorporate third-party fraud reduce risk (i.e. TAG) detection ü Recognise the importance of content ü Focus on building a loyal audience and audience ü Build out IQ policies and practices ü Know where
Slide 83: Thank you
THANK YOU
Slide 84: #pubacademy
#pubacademy CONFIDENTIAL & PROPRIETARY
Slide 85: Fireside chat: The future of video advertising
#pubacademy FIRESIDE CHAT: • Sebastian Knauf, Senior Account THE FUTURE OF Director Germany, PubMatic VIDEO • Sabine Schmidt, Head of Programmatic ADVERTISING & Ad Operations bei Webedia
Slide 86: Thank you – please join us for drinks
THANK YOU – PLEASE JOIN US FOR DRINKS CONFIDENTIAL & PROPRIETARY 8
Slide 87: #pubacademy
#pubacademy CONFIDENTIAL & PROPRIETARY
PubMatic — PA Germany Presentations 27 March 2019 FINAL on 6ix