Switzerland May 2015 Programmatic Advertising Findings

DEALS HAVE LANDED

Introduction

Real Time Advertising (RTA) has made its breakthrough in Switzerland. A number of local publishers have jumped on the train by now.

It’s time to take a look at the status quo. Which sellers are now active, how many so-called deals are in circulation and what prices does Mediahead pay for? Here are the findings of our own internal analysis that we conducted during the month of April 2015.

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DEALS

What’s a deal? The “deal” (or “deal ID”) has emerged as an important part of programmatic ad buying because it is used to match buyers and sellers individually, based on a variety of criteria that were negotiated beforehand, such as price, type of ad units, section of the site, etc. It replaces the written contract between advertiser and publisher.

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How many deals are active? By April 2015, Mediahead negotiated 1,045 deals. Most of them were excluded after auditing them. At the moment, Mediahead has 172 active deals running.

What’s in it for publishers? As a deal is negotiated individually, publishers can achieve high prices on a CPM level.

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Let’s have a closer look at Mediahead’s active deals

•  Top 30 deals deliver 87% of ad impressions •  Top 30 deals are provided by 14 sellers

30

132

6

87%

Deals

Ad Impressions

Number of deals

provided by

14 Sellers  Microsoft  Stailamedia  Tamedia  United Internet Media  Interactive Media  Audience Square  Watson  Omnimedia  Mediabox  Telegraaf*  Tomorrow Focus  La Place Media  Comparis  BBC  

* this is due to a campaign running in the Netherlands in april 2015

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Ad Impressions Proportional distribution of top 10 sellers

31%

22% 14%

11%

9%

4% 3% 2% 2% 2%

Microsoft

Stailamedia

Tamedia

United Internet Media

Interactive Media

Audience Square

Watson

Omnimedia

Mediabox

Telegraaf

30%

24%

23%

6%

6%

3% 3% 2% 2% 1%

Tamedia

Microsoft

Stailamedia

United Internet Media

Audience Square

Watson

Omnimedia

Interactive Media

Mediabox

BBC

Revenue Proportional distribution of top 10 sellers

CPM*

paid by Mediahead to top14 sellers

Seller   CPM  BBC   CHF 15.00  Tamedia   CHF 13.42  Audience Square   CHF 10.07  Comparis   CHF 8.36  Omnimedia   CHF 7.70  Stailamedia   CHF 6.45  Mediabox   CHF 6.34  Watson   CHF 5.29  La Place Media   CHF 4.99  Microsoft   CHF 4.99  United Internet Media   CHF 3.58  Tomorrow Focus   CHF 3.00  Telegraaf   CHF 2.77  Interactive Media   CHF 1.28  

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Average CPM of all deals (172) over 7 months

CHF 0

CHF 1

CHF 2

CHF 3

CHF 4

CHF 5

CHF 6

* Cost per thousand advertising impressions

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Origin Proportional distribution by origin of top 30 deals

.ch 61%

Border mix (.ch, .de, .fr)

21%

.de 10%

.fr 5%

.nl 2%

.com / .co.uk 1%

.ch 67%

Border mix (.ch, .de, .fr)

22%

.de 7%

.fr 2%

.nl 1%

.com / .co.uk 1%

Revenue Proportional distribution by origin of top 30 deals

Key findings “Deals”

•  Few deals deliver a major part of the ad impressions. There is great potential for sellers to provide the market with more deals.

•  So far, five players take 90% of revenue: Tamedia, Microsoft, Stailamedia, United Internet Media, Audience Square. There is a lot of room for new sellers to join the game.

•  Media brands recognized to be “premium” achieve highest CPMs.

•  Average CPM over last seven months moderately increased.

•  97% of ad impressions come from Switzerland or from neighboring countries.

•  The lion’s share of revenue goes to .ch domains.

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Fact I:

Programmatic inventory treated as a deal is just as local and clean as any manually booked campaign.

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Fact II:

The original fear of publishers to face declining prices when selling their inventory programmatically has proven to be unfounded.

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Fact III:

Programmatic advertising has arrived at Switzerland’s sell side. Still, we see a lot of potential to come.

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