BeyondProgrammaticChallenges and opportunities for digital publishers

Martijn EindhovenElegant Bit consulting

@meindhoven

WhoAmIIntroduction

Martijn EindhovenIndependent consultant9 years of experience in digital media, onlinemarketing, Ad- & Mar-Tech and ePrivacy.

Independent consultant helping companies navigate in a digitizing world to understand, implement and operationalize a sound digital framework with the right technology, go-to-market and operations.

æ Digital media Ad- & MarTech � ePrivacy Online Marketing

Let`s start!

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1

2

State of ProgrammaticDrivers and Trends

Retail MediaRetailers as publishers, ZMOT opportunity

End of presentation

3 OpportunitiesPublisher opportunities

State of ProgrammaticDrivers and Trends

StateOfProgrammaticDigital spending

42% Digital spendTowards Mobile 56% Market share

Google & Facebook combined

&

2009 2015 2014 2015

BeyondProgrammatic

0%

5%

10%

15%

20%

25%

$0

$10

$20

$30

$40

$50

$60

$70

2009 2010 2011 2012 2013 2014 2015Y/Ygrow

ht(%

)

USAInternetadvertising($B)

DesktopAdvertising MobileAdvertising Y/YGrowth

0

5

10

15

20

25

30

35

Google Facebook Others

MarketShare(%

)

2014 2015

+18%Y/Y

+59%Y/Y

+13%Y/Y

Source: KPCB 2016 Internet Trends, PWC Internet Advertising Report`

StateOfProgrammaticDigital spending

Online advertising

spend

Display advertising

Non-video, non-mobile

display

Video

Mobile

10%

�

12,6%

-6,1%

37,3%

57,5%

BeyondProgrammatic

H1 2014 H1 2015

Source: IAB/HIS adex benchmark 2015

StateOfProgrammaticProgrammatic trend Netherlands

Source: IAB Netherlands Ad Spend Report 2015

2014 2015

BeyondProgrammatic

StateOfProgrammaticCustomers taking matters in own hands

StateOfProgrammaticCustomers taking matters in own hands

Online advertising ineffectiveness

81% Mute video ads

62% Annoyed with forced pre-rolls

93% Consider using ad blocking software

BeyondProgrammatic

StateOfProgrammaticBeyond the banner

Header bidding Native programmatic Viewability

BeyondProgrammatic

StateOfProgrammaticProgrammatic backlash

Ad Fraud Malvertising

BeyondProgrammatic

StateOfProgrammaticProgrammatic backlash (sort of)

Updated European privacy regulation

Harmonization Enforcement

Off-shore processing

BeyondProgrammatic

Governance

Consent One-Stop-Shop

Transparency Data portability

Right to be forgotten Data processors

Retail Media

RetailMediaNew media opportunities

“UK retail media $1B

opportunity”-Triad Retail Media

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Retail media opens new opportunities to brands and suppliers in crucial phase of

Touch-tell-sell funnel

BeyondProgrammatic

RetailMediaRetailers dipping their toes in the water

Retailers Active in media Retail media solution providers

BeyondProgrammatic

RetailMediaAdvertising Zero Sum game for retail experiens

BeyondProgrammatic

RetailMediaZMOT and information availability

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ZMOT82% of users evaluate purchase decisions in-the-moment

?Information65% of users look for the most relevant information regardless of the company providing the information

ÅCustomers33% of users purchased from a brand or company other than the one they intended to because of information provided in the moment they needed it.

BeyondProgrammatic

RetailMediaWeaknesses and Strenghts

Strengths Weakness

OpportunitiesThreats

S W

T O

• Limited inventory• Limited advertising capabilities• Product & Brand relevancy

• Audience extension• Data cooperation with publishers• Content cooperation• Joint subject matter platform

• Actual intent information in path-to-purchase

• Authorized users• Past buying behavior

• Trade promotion budgets under pressure

• Google & Facebook shopping products

• Amazon

BeyondProgrammatic

Opportunities

OpportunitiesCooperation opportunities

BeyondProgrammatic

Publisher and Retailer data exchangeCombination of high velocity with high variety dataAbility to create closed feedback loop on effectiveness

Subject matter expert platformsJoint venture on content platforms specific audiencesCombine audience interest with shopper profilesE.g. young families, pensioners, house movers, etc.

Content cooperationPartnering in relevant in-context information for brandsLeveraging publisher relationship and retail knowledge

OpportunitiesCooperation challenges

DefensivenessRetailers are defensive when it comes to trade promotion budgets.Vice versa Publisher will try to defend their media budget allocations.

Media sales experienceMost retailers lack experience and resources in selling media. This results in constructing or buying expertise in technology and sales.

Ability and willingness to shareThe willingness and ability to share audienceinformation in Europe between companies is still nascent. Zalando is spearheading a European initiative through their acquisition of Nugg.ad

BeyondProgrammatic

ToConcludeConclusions

Programmatic

Retail media Cooperate

Data vault

Still on the riseMoving to high impact formats

Challenged by ad blocking & fraud

Challenger based on audience dataRetailers lack experience

Retailers seeking critical advertising mass

Enter partnership with retailers

Seek partnership in audience data to counter walled

solutions

BeyondProgrammatic

Martijn Eindhoven

m.eindhoven@elegant-bit.com

+31 6 24 97 04 44