These slides will help you better understand the trends of programmatic advertising and how to leverage audience data to improve your campaign results. This presentation was conducted by Effective Measure in South Africa in August 2017, but it is also applicable to all digital marketers worldwide.

1. The future of programmatic
& how to leverage audience
data

2. Overview
• WHERE IS THE INDUSTRY NOW?
• FUTURE PROGRAMMATIC TRENDS
• HOW TO LEVERAGE AUDIENCE DATA

3. WHERE ISTHE INDUSTRY NOW?

4. Programmatic is here
2014 - 52%
of U.S. display ad spend was allocated
to programmatic
IAB Programmatic Report 2014
2017 - 78%
of U.S. display ad spend will transact
programmatically
eMarketer, April 2017

5. A powerful duopoly has formed
High complexity leads to massive advertiser effort for minimal return
High Spend
Easy to use
Complex to
manage
Low Spend

6. Why Google and Facebook are dominating
Wall Street Journal

7. The breakdown of the ad dollar
Wall Street Journal
$0.77
of each new ad dollar
goes to Google and
Facebook

8. This dominance goes into Mobile too
Wall Street Journal
58%
Dominance in Mobile by
Google and Facebook

9. The impact of a strong duopoly
Wall Street Journal
Brian Wieser - Pivotal Research
"The big point is that if Google
and Facebook are the primary
interfaces to buyers, over the
long-run they own the
relationships and the related
data, every partner they work
with is subservient.”
The decline in independent publisher revenue

10. Where we all want the industry to be
High Spend
Easy to use
Complex to
manage
Low Spend
A simpler system that makes local audiences as compelling as global leaders

11. FUTURE PROGRAMMATICTRENDS

12. Trend 1:The growth of programmatic direct
This year in the U.S. programmatic direct will represent 56% of programmatic display
spending, while 44% will be bought via open exchanges
eMarketer, April 2017
Open Exchanges
44%
Programmatic Direct
56%

13. Trend 2:The growth of mobile
51%
of 2016 online ad
spend in U.S. was on
mobile
IAB USA Ad Rev Report 2016
Advertising format share, 2008 - 2016 (% of total revenue)

14. Trend 3:The increase in performance buys
64%
of budgets are being
allocated to Performance
IAB USA Ad Rev Report 2016
Internet ad revenues by pricing model*

15. Trend 4: Expect display to mature like search
Adobe
4X
growth in spend vs growth
in visits means advertisers
are paying more per
impression
Increase in Spend Increase in Visits
11%
42%
11%
42%
Increase in VisitsIncrease in Spend

16. Trend 5:The death of site-centric media planning
Brands are becoming less concerned with what site their ad is shown on, and becoming
more concerned with who it is shown to.

17. Trend 6: Independent publisher cooperatives

18. Trend 7:Transparent programmatic pricing
55% Tech. & Man. fees
IAB Programmatic study
45% Media Cost

19. Trend 8: Strict audits of inventory quality
$16.4bn
Estimated ad fraud in 2017
which is…..
The&Partnership Ad fraud Study 2016
20%
of total online ad spend in the USA
Click!
Click!
Click!

20. What do these trends tell us
• Google and Facebook are dominating because they have made it so simple
• Independent publishers are not giving the demand-side what they are looking for
• Programmatic direct deals offer an effective way to leverage independent publishers
• Independent publishers need to collaborate if they want to compete
• With a powerful duopoly, it is inevitable display prices will increase like Search
• Transparent programmatic costing will become the norm
• If unmanaged, Ad Tech can sky rocket your programmatic costs
• Quality of inventory will be the new core metric

21. HOWTO LEVERAGE AUDIENCE DATA

22. Have clear campaign KPI’s
Know your end campaign metric
• For Brand Awareness focus on reach
• For Conversions focus on CPA (Cost per acquisition)
VS
Conversions
Awareness

23. Buy for quality and not price
AUDIENCE A AUDIENCE B
Banner CPM R60 R20
Conversions / ‘000 imp 4 1
Campaign CPA R15 R20
Cheaper does not always mean better

24. Know your data
• Know your data suppliers and how they collect their audience data
• Try buy 3rd party data from sources that have the least broker layers
• Tried and tested data = trusted data, so always test your new data
• Make sure your data is fresh and up to date

25. Know your tech stack
• Know each of your technology layers and what Ad Tech will work best for your needs
• Consolidating or doing away with unnecessary tech can save you a lot of money
DSP DMP Analytics

26. Start simple
• Start by utilising third party data. This will minimise your development and setup costs.
• Once you are achieving positive results with third party data, look at how you can
implement your own DMP to consolidate and leverage 1st, 2nd and 3rd party data.

27. Summary of leveraging audience data
• Don't lose track of the core benefit of data; which is to target audiences more accurately
in order to reduce your cost of acquisition and because of that Quality is King.

28. Overall conclusion
To achieve a more harmonious balance, and to take this programmatic world forward, the
industry needs more:
• DIVERSITY
• TRANSPARENCY
• SIMPLICITY
• FOCUS ON QUALITY
• CLEARER KPI’s

29. Locals helping locals
Effective Measure. Better data, better results.
Access the best audience data for the emerging market at:
effectivemeasure.com/advertisers