programmatic: what buyers and sellers should know
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Future ofProgrammatic Workshop
European Publisher SummitJune 3, 2014
Matt O’NeillUnanimis
“The industry has gone from a niche area of digital to a nearly agreed-upon bulwark of the future media system. The question now is just what shape it takes.”
How we got here
• Optimization of network demand and remnant supply is becoming the de facto trading standard
• Spot solution Industry standard• Not just display banners but mobile,
video, rich media, and a robust data market
Percent of Display
2011 2012 2013 2014 2015 2016 201711 19 28 34 41 47 5213
18
2529
3232 31
7662
47 3627 21 17
Programmatic - RTB Programmatic - Non-RTBNon-Programmatic
59%
Source: Magna Global RTB & Programmatic Report – Oct. 2013
Patterns + Tools
Solving a problem
Publisher
Network 1
Exchange 1
Network 2
Network 3
Network 4
Exchange 2?
Projections & Stats
• Global / US– Programmatic 80% of digital display by 2017– Programmatic sales to surpass direct sales in next 18 months– $6Bln $32Bln between 2014 and 2017
• UK Specific– Currently programmatic is 17% of total UK Display spend– Spend estimated to hit 30% by 2016
• Core areas of growth projected– Premium & Private– Mobile & Cross Platform (Flow)– Data & Audience– Content Marketing
• All roads are leading to programmatic
Sources:AOP Organizational census on programmatic & dataMagna Global Report October 2013
Programmatic – Great Unifier
ProgrammaticDisplay
Data
Social
Search
Content Marketin
g
Programmatic – Delivering scale
UAP / Search
Large Formats &
Video
Remnant Sponsorship
Scalability
Yield
Challenges, Risks & Threats
• CMO adoption & acceptance– Confusion holds back the BIG cash
Programmatic still isn’t well understood
12%
23%
10%
26%
29%
I am unaware of this way of buying
I understand it and use it to execute campaigns
I understand it but haven't used it yet
I understand the con-cept but need to learn more about how to apply it to campaigns
I've heard the term but don't have a clear un-derstanding of it
Challenges, Risks & Threats
• CMO adoption & acceptance– Confusion holds back cash
• Increasing Fragmentation– Adds ‘right device’ to the equation
Top activities performed during simultaneous screen usage
Challenges, Risks & Threats
• CMO adoption & acceptance– Confusion holds back cash
• Increasing Fragmentation– Adds ‘right device’ to the equation
• Increased buy-side control– Race to bottom on CPMs & Display
Revenue
US Newspaper Ad Revenue
2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
10,000
20,000
30,000
40,000
50,000
60,000
PrintOnlineTotal
http://stateofthemedia.org/2013/newspapers-stabilizing-but-still-threatened/newspapers-by-the-numbers/
Global Programmatic Advertising Pricing Trends
Challenges, Risks & Threats
• CMO adoption & acceptance– Confusion holds back cash
• Increasing Fragmentation– Adds ‘right device’ to the equation
• Increased buy-side control– Race to bottom on CPMs & Display
Revenue
• Privacy concerns & Cookie Challenges– Always a unknown threat in the wings
Key Opportunities
• Market Growth
A rising tide…
Key Opportunities
• Market Growth• Programmatic ‘Premium’ & PMPs• Open RTB & Deal ID
Selling Methods for Premium Pubs
Open Exchanges
Private Exchanges (PMP)
Fixed-Price Unreserved (DealID)
Fixed-Price Reserved, Automated
Direct, Manual
Key Opportunities
• Market Growth• Programmatic ‘Premium’ & PMPs• Open RTB & Deal ID• Mobile, Video, and Multi-device
Advertising
Cross Device & Mobile Targeting
Key Publisher Opportunities
• Market Growth• Programmatic ‘Premium’ & PMPs• Open RTB & Deal ID• Mobile, Video, and Multi-device
Advertising• Data Monetisation & Optimisation
It’s coming together
Data
Mobile
Premium
Programmatic
Delivering Data at Scale
Guardian 1st Party Data
Rubicon
Krux 3rd Party Data
Invite Media
£1.00
£0.75
£2.50
Key Opportunities
• Market Growth• Programmatic ‘Premium’ & PMPs• Open RTB & Deal ID• Mobile, Video, and Flow Advertising• Data Monetisation & Optimisation• Native & Brand Marketing
Native Advertising Growth
2012 2013 2014 2015 2016 2017£0.0
£0.5
£1.0
£1.5
£2.0
£2.5
£3.0
£3.5
£4.0
£4.5
£5.0
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Native SpendingPct. Change
Source: Business Insider, October 2013
An Ad by Any Other Name
Source: Online Publishers Association (OPA) Study in Partnership with Radar Research
Native & Programmatic
Native Advertising• Standardization Is
Coming• “Answering” the
Scale Question• Expect Greater
Regulation• Native will Be
More Data-driven
Programmatic Buying• Buyers will Grow into
Tech ExpertsPremium Programmatic will Be Key
• Marrying Programmatic and Native
• Direct Sales will Go Programmatic
http://www.foliomag.com/2014/native-advertising-and-programmatic-buying-predictions-2014#.U4YAp_ldVQA
Whatever you call it, it is coming…
You want to know how I know?
THANK YOUMatt O’Neill
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