Making the Great Leap Can Programmatic Truly Cross-Over from Digital to Television?

Digital Programmatic

Audience Targeting via Granular Data

Addressability (1:1 Marketing)

Automated Inventory Management

Both RTB and Non-RTB

Programmatic Universe = Display & Video

Search/Social: 100% Programmatic

Source: Digiday, WTF is Programmatic?

2015 Global Programmatic Spend $14B - 31% of Display/Video

Source: MAGNA GLOBAL, Programmatic 2015: Roadmap for Growth, September 2015

10 14

37

30 32

37

0

10

20

30

40

50

60

70

80

2014 2015 2019

Programmatic Non-Programmatic

Display and Video Spend ($bn)

24% 31%

50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2019

Programmatic Non-Programmatic

Programmatic Penetration* (%)

Global programmatic spend by format

Source: MAGNA GLOBAL, Programmatic 2015: Roadmap for Growth, September 2015

54%

24%

19%

22%

18%

27%

8% 28%

0%

20%

40%

60%

80%

100%

120%

World 2015 World 2019

Desktop Banner Mobile Banner Desktop Video Mobile Video

Programmatic Spend by Format

2015 73% desktop 26% video 2019 50% mobile 55% video

5 8 12 16 20 25

30 3 4

5

7

0

10

20

30

40

50

60

70

80

2013 2014 2015 2016 2017 2018 2019

RTB Programmatic Non-RTB Programmatic Non-Programmatic

Digital programmatic is still growing, especially full RTB

Source: MAGNA GLOBAL, Programmatic 2015: Roadmap for Growth, September 2015

Global Programmatic Spend and Growth

70%

60%

50%

40%

30%

20%

10%

0%

6 Gro

wth

(%

)

Spend (

$bn)

US, UK, Japan, China, Germany lead in Programmatic Spend

Source: MAGNA GLOBAL, Programmatic 2015: Roadmap for Growth, September 2015

United States

United Kingdom

Japan

China

Germany

Australia

Italy

France

Netherlands

Canada

Brazil

Sweden

Spain

Czech Republic

Argentina

Denmark

Mexico

Norway

India

Other

0 200 400 600 800 1,000 1,200 7,500

UK, Australia, Netherlands, Denmark and U.S. Lead in Share

Source: MAGNA GLOBAL, Programmatic 2015: Roadmap for Growth, September 2015

47% 46% 45% 44% 43%

37%

31% 31% 31% 30%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

United KingdomAustralia Netherlands Denmark United States France Belgium Sweden Malaysia Italy

Programmatic Penetration by Country (2015)

Advertisers are leading: 79% in U.S. say they’ve used it

Top Global

Programmatic

Advertisers

include “digital

native”

companies, as

well as major

global

marketers.

Source: BI Science; 2014 ANA/Forrester: Media Buying’s Evolution Challenges Marketers Survey;

ANA/Forrester 2016 Programmatic Media Buying Survey

Programmatic’s top benefits: Targeting and optimization

Base: 91 (2014) and 85 (2016) marketers

Sources: 2014 ANA/Forrester: Media Buying’s Evolution Challenges Marketers Survey; ANA/Forrester 2016 Programmatic Media Buying Survey

62%

62%

66%

76%

90%

68%

59%

76%

76%

2014

2016

Better targeting

Real-time optimization

Managing buys across

multiple channels

Reach customers at multiple

points along the purchase path

Decreased cost of media

Q8. In general, how important are the following potential benefits of programmatic buying? [Percentage of responses 8 and higher on a scale from 1 (not important) to 10 (very important)].

NA

Programmatic TV = Program-Manual

• U.S. 2015: $ 1B (2% of total TV ad spend)

• U.S. 2019: $10B (17% of total TV ad spend)

• Better Audience Targeting using Granular Data

• Initial focus on monetizing unsold inventory, mainly local markets

• Some inventory optimization, but manual I/Os and no RTB

• Pay TV addressable infrastructure only reaches 30% of homes

Source: Digiday, WTF is Programmatic TV?

Perception vs. Reality in Addressable TV (US)

Reality

Linear TV “Programmatic”

Linear TV

Video On

Demand

(VOD)

Digital Video Over The Top

(OTT)

Full

Addressable

TV

Scale (HH’s) 30+M/1% of TV ads 115M/100% of TV ads 100M/95% of TV ads 40M/1% of TV ads <50M/1% TV ads 70M/5% TV ad volume

Perception

Linear TV Full

Addressable TV

Data Sources STB, Nielsen, First Party,

Third Party, Credit-Card

STB, Nielsen, First Party,

Third Party, Credit-Card Cookies / DMPs Cookies / DMP’s Nielsen Rentrak

Programmatic No Data processes automated;

Insertion manual No Yes Mixed Yes

Sold on ROI? Yes No No No Some No