The document discusses the state of programmatic advertising and outlines several key points: 1. Programmatic advertising has grown significantly in the past 10 years but is still evolving as the pillars that support it, like third-party cookies and mobile usage, are changing. 2. How people consume media is shifting massively to mobile and social platforms, and advertising models must follow users to these new mediums. 3. For programmatic advertising to succeed long-term, ad formats need to fit the medium and provide a good user experience rather than prioritizing short-term monetization. When done well with relevant content, intent targeting, and first-party data, programmatic can be user-centric.

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The State of
Programmatic

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+ 2 unannounced

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Ten years in, but
still early.

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http://blogs.wsj.com/cmo/2014/03/31/marketers-want-more-transparency-from-media-agencies/

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http://reactionwheel.net/2014/03/automated-ad-buying-already-mainstream-whether-marketers-
understand.html

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Programmatic is
evolving.

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Pillars of
programmatic
are under stress.

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Ad formats

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Third-party
cookies

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Mobile

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Social

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http://www.businessinsider.com/how-people-use-smartphones-2013-4

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Native

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Massive shift in
how people use
the“web”.

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People define the
ad units.
http://taylordavidson.com/2013/adtech

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Brands follow
eyeballs.

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Dollars follow
performance.

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In long run, ad
units trend towards
fitting the medium.

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The process of
programmatic
isn’t going away.

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What’s native today
will be programmatic
tomorrow.
http://taylordavidson.com/2012/native

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The venture
funding of massive
consumer sites…

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… creates
advertising-based
models down the
line.

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That’s the conflict
the industry has
to balance.

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Testing,
guardedly.

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Performance
opens up scale.

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Programmatic !=
native?

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RTB != native?

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Based on short-
sighted view.

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Focusing on
monetization before
user experience.

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Native ad units + relevant content +
intent targeting + limited inventory
+ first-party data = user-centric
native ad deployment

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Native ad
blindness

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The pipes for
banners will be
fitted to native.

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The inventory is
light

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http://reactionwheel.net/2014/03/automated-ad-buying-already-mainstream-whether-marketers-
understand.html

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Bots

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Viewability

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Cross-device

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Identification

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Tech + Standards

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New inventory + new
data = new creative
opportunities

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That’s the real
challenge to the next
phase of
programmatic

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Native ad units + relevant content +
intent targeting + limited inventory
+ first-party data = user-centric
native ad deployment

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3 Key Takeaways
1. Programmatic growth is real
2. What people do determines what ads we see
3. Programmatic buying will fit new mediums