Programmatic: What Buyers and Sellers Should Know

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