Professional Thesis - How to reach audiences in a fragmented Media Environment - Romain VILLA
THESIS ORAL: 26TH NOVEMBER 2015 | FOLLOWING TUTOR: MARGHERITA PAGANI
How to reach audiences in a
SPECIALIZED MASTER MARKETING AND SERVICE
HAVAS MEDIA GROUP
Table of contents
Executive summary.................................................................................................................... 5
Introduction ................................................................................................................................ 7
I/ Marketing Communication: diverse ways to reach people thanks to Media.................. 9
1°) Media functioning and organization..................................................................................... 9
a- Press and OOH (Out Of Home): 2 old and local Media ........................................................ 9
b- Radio and Television: the beginning of the mass Media model.......................................... 11
c- Emergence of the Internet and the mobile technology: Evolution of how to measure and to
know customer preferences...................................................................................................... 13
d- The roles of Media agencies and the case of Havas Media ................................................. 16
2°) An environment which knows deep modifications ............................................................ 16
a- A political and legal environment that have a strong influence on the Media landscape.... 16
b- Technology has helped in disrupting the economic environment….................................... 17
c- … answering to new customer needs................................................................................... 18
d- Intensity of the variables in the Media landscape................................................................ 18
e- Analysis of the different forces in presence for Havas Media ............................................. 19
3°) Links and relationships between brands, Media agencies and customers.......................... 20
a- The service brand relationship value triangle ...................................................................... 20
b- The evolution of how to reach customers and how it can be measured............................... 25
c- Challenges for advertising agencies..................................................................................... 27
4°) Presentation of the interviews: a qualitative study to understand those challenges........... 29
a- Explanation of the methodology and the people interviewed.............................................. 29
b- What are the main ideas presented?..................................................................................... 30
II/ A media landscape which knows different evolutions in its functioning ..................... 32
1°) Presentation of the programmatic technology.................................................................... 32
a- The model of programmatic buying..................................................................................... 32
b- Focalization on the Real Time Bidding processes............................................................... 35
c- How entities make Real Time Bidding primordial today?................................................... 37
2°) A technology which meets different objectives for brands and Media agencies ............... 39
a- Advantages of Programmatic and the need of programmatic technology to help in the
strategic choices ....................................................................................................................... 39
b- Applications to every Media and evolutions ....................................................................... 41
III/ Challenges of Programmatic: a need of a better understanding ................................ 44
1°) A need for brands and Media agencies to understand their audience ................................ 44
a- Media agencies have to be “agile” and to be creative.......................................................... 44
b- Make understanding the benefits of programmatic to announcers ...................................... 45
c- But the French legal setting is obsolet ................................................................................. 47
2°) Technologic limits.............................................................................................................. 48
a- Telecommunication operators and the need of unification.................................................. 49
b- The case of Adblock: a threat or an opportunity?................................................................ 49
IV/ Havas Media has the possibility to develop Audience planning, by accompanying the
evolution of the Media landscape.......................................................................................... 51
1°) A need to help in change .................................................................................................... 51
a- How to restrict data and technical limits?............................................................................ 51
b- How to consider the Adblock software?.............................................................................. 53
c- A need of changing of the law for this field......................................................................... 54
d- What about ethics?............................................................................................................... 55
2°) To develop research and rethink the role of Media agencies............................................. 56
a- A need of change of the Media agencies remuneration? ..................................................... 56
b- To develop researches about data ........................................................................................ 57
c- A need to build Media planning thanks to Audience planning and to accompany the Media
environment to change ............................................................................................................. 59
Annex - PESTEL analysis of the Media landscape............................................................. 64
2nd annex - 5 Porter forces analysis on the Media agencies environment .............................. 67
annex - Audio characteristics in France, Mediametrie Global radio and Kantar Media,
annex - Video characteristics in France, Mediametrie Home Devices and Global TV, 2014
annex - Publishing characteristics in France, Press Observatory, 2014.............................. 73
annex – Programmatic ecosystem and examples of principal actors.................................. 75
I particularly want to thank Margherita Pagani, who has followed the evolution of my entire professional
thesis and helped me a lot in the development of my problematic.
I also want to thank Camille Bellemon, Consultant Director of Havas Media, who has been working with
me for six months. Her advices and her follow up have allowed me to find all information I need. I also think about
Deborah Wits, who has helped me a lot in the understanding of programmatic.
Finally, I also want to thank all people interviewed. Their testimonies helped me a lot in understanding
the Media environment. I could not have analysed issues and recommendations the same way without their
With the development of new technologies and particularly Digital, Media environment
has deeply changed. Offer diversification and devices have been developed. Consequently,
audience has been fragmented and the technologic development to understand this audience has
strongly increased. Media agencies had the reflex to adapt their advertising campaign
management, evolving from a model of Media planning to Audience planning. We move from
a Media centric to a user centric vision where Media agencies do not buy anymore a Media but
an audience. Considered as more efficient and answering lots of communication issues, we can
ask if Audience planning is not going to make disappear Media planning.
Traditional Media, evolving in their Business Models and the development of their
offers have more or less adapted their technologies to the evolution of audience tracking. To
finance their models and to adapt their advertising revenues, Media as TV use IPTV to find its
audiences, and Radio develops its offers in Digital. However, it is still rare to see those
transactions done in real time.
Media agencies have developed programmatic to analyse audiences by getting data. One
of those aspects, RTB or Real Time Bidding, is a buying system, where locations are being
auctioned, in real time, in function of the Internet user paths, and is spreading quickly.
Programmatic, characterized to find the good customer at the good moment and at the good
price disrupts advertising codes. Audience targeting implies new rules in data collecting but
also in its analysis. Different traditional Media are thinking in how they can develop
programmatic inside their offers. And Media agencies have to adapt to this evolution.
Media agencies need to be agile and to make evolve their offers. Programmatic
development seems today to be ineluctable and Media agencies have to take advantage of it.
Processes transparency has to be taken into account. These companies know technologic limits
due to telecommunication operators but also software, and an obsolete French law. Competition
also forces Media agencies to innovate in their data analysis. Moreover, they have to understand
new needs of customers and to be actors of the change.
They have to adapt their offers, considering the different limits, technical or legal, and
to make understand that Media agencies have to evolve in their remuneration and to reconsider
it. They have to take advantage of new software as Adblock which can refine audience and
show that advertising can be a true service given to consumers. As a consequence, ethics
questions become central and the constitution of departments dedicated to researches around
data analysis seems necessary.
The development of communication campaigns on Media planning and Audience
planning models answers to different objectives. It is not one against the other but one with the
other. Media agencies have to take advantage of technologic evolutions and manage their
« Programmatic development has come from the existence of an incalculable number
of supports, and the difficulty to reach audiences in a fragmented environment” explains a
Havas Media Consultant. Due to difficulties in their business models, Media agencies use new
ways to reach audiences. Digital and innovation seem today unavoidable. Media agencies role
evolves more and more from service providers to Business partners.
The Media environment (Television and Cinema, Radio, Digital, Out Of Home and
Press) has radically changed, particularly since the arrival of Digital. Media are easily
accessible and develop more and more a freemium Model on Digital. Moreover, with the arrival
of new channels and numeric platforms, Media have to develop their offers to prove what
audience they reach. On the other side, announcers have to innovate in their communication to
reach customers and they need more and more to address their messages to a precise audience.
By answering this, Media agencies have to find new ways to reach this audience. But what tools
and technologic innovations could help them?
Communication campaigns are traditionally organized on a Media planning model. The
objective is to use a Media to reach a particular kind of audience. Traditional Media have
developed their technologies to find audiences. Moreover, thanks to Digital, new tools have
been developed to analyse audiences and gather data. Programmatic is one of the biggest
revolution in the Media environment to reach the good audience. It allows to gather data and to
analyse Internet user behaviours. Programmatic is considered as a system to find the good
audience, at the good moment and at the better price possible. With this technologic evolution,
the objective is not to use a Media to find an audience but to target the Internet user directly.
For many people, it allows to measure the audience and to have precise data that can be analysed
to adapt messages. Theoretically, programmatic is the best tool to target audience. More and
more people think that this model is going to spread to every Media. But is Programmatic can
answer every Media objectives?
In the context of a fragmented Media environment, does the audience planning is
going to remove traditional Media planning?
Audience planning implies lots of innovation, in the service given but also in processes.
It needs a deep adaptation of the Media environment and particularly Media agencies. It is first
necessary to analyse how the Media environment is constituted and to determine how
Programmatic can influence them. It will permit to understand issues and understand that Media
agencies have the possibility to develop Audience planning, questioning their Business Model
I/ Marketing Communication: diverse ways to reach
people thanks to Media
1°) Media functioning and organization
Understanding the Media landscape and knowing its specificities on its Business Models
allow us to see why they are more and more willing to use new technologies to find their
audiences and become more efficient.
a- Press and OOH (Out Of Home): 2 old and local Media
Press is the oldest Media in the world. It has appeared on several forms: manuscript
news, lampoon, almanacs… It has particularly been developed during the 17th
centuries. The first one Relation Aller Fürnemmen und gedenckwürdigen Histortien is launched
at Strasbourg in December 1605 by Johann Carolus1
thanks to the decline of paper prices and
the high development of printing. In France, the first printed newspaper is La Gazette, created
by Théophraste Renaudot and published at Paris, during May 1631. The development of written
press has let the development of famous titles that we still know today, as Le Figaro (1826), La
Dépêche du Midi (1870), La Croix (1880), Les Echos (1904) and “L’Humanité” (1908). The
Business Model of paying written press has been developed since today. The coming of the free
newspapers in the middle of the 20th
century implies a new Business Model, only based on
advertising to finance the publications. More local at the beginning, the regional free
newspapers have been developed during the eighties with the creation of Les Nouvelles
d’Orléans in 1980 by Michel Gaudron and Etienne Verdier or Le Petit Solognot, in 1983 by
Gérard Bardon and Dominique Labarière. But we had to wait until February 2002 to see the
first national free newspaper Metro (which is now a pure player, the paper version has been
stopped in July 2015), followed by 20 Minutes and Direct Matin.
To finance their publications, press companies can sell their newspapers but also being
paid thanks to advertising. But, with the development of Digital, Press has changed its Business
World Association of Newspapers, wan-press.org
Models. The high numbers of free articles on the Internet have changed the ways people
consume Press. They can have an easy access on every subjects. The example of Metro shows
that the Internet has changed how to reach people. The decrease of publications forced this free
newspaper to change its Business Model, to become a pure player and only available on the
Internet and not more on paper versions. Most of traditional newspapers have changed their
offers as the example of Le Figaro or Les Echos which are now based more on a freemium
model. You can first access to some articles every months but you have to pay if you go on
more than 5 articles for Les Echos. For its part, Le Figaro lets access to the majority of its
articles but some of them are reserved for subscribers, for example.
More and more newspapers and magazines pursue their mutation to the Digital.
However, the loss of revenue for the paper versions are not counterbalanced by Digital
revenues. According to the OJD, during its “25th
Press Observatory”, professional Press has
declined by 7,4%, the national daily Press, by 5%, and magazine Press, by 3% in 2014. On the
contrary, the websites frequentation of those titles have increased by 22% between 2013 and
2014, and mobile frequentation raised by 39% on the same period. 18% of French people, aged
of 15 years old and more, read at least one press brand on tablets2
. But this augmentation does
not compensate the losses of written Press. 3,8 billion paper copies have been produced in 2014,
according to the 24th
Press Observatory in January 2015 and 43,9 million copies in numeric
Business Models of Press evolve. According to Future exploration3
written Press could
disappear in the United States by 2017, and in France, by 2029. Press is considered as a
qualitative Media where brands place their advertisings, responding to brand image
problematic. Press is, in fact, considered as a Media of quality and permits to brands to be as
close as possible to their customers. However, the decrease of revenues are a real threat for this
Media because it implies that the quality of this Media in general is on the decline. And if the
quality declines, audience will decline, as the advertising investments. It is a vicious circle that
can be counterbalanced. The pursuing of mutations also shows that new ways to find financing
are possible, and are going to be studied in the coming paragraphs.
OOH (Out Of Home) is also a “proximity Media”, which puts products in our daily life
and is considered as the last contact point with customers. It appeared during the 15th
Mediametrie: Audipresse One Global – Mediametrie, April 2015
Ross Dawnson, Newspaper extinction timeline – When newspapers in their current form will become
in cities to stick up the announcements of public town criers and particularly developed during
century with the development of alphabetization. The offers have been developed and
when we speak about OOH nowadays, it can be public posters but also flyers or placemats. It
is a Medium which resists more than others because it is less replaceable. With an increase of
0,4% of investments in 2013, according to France Pub, it is considered as solid but also modifies
. Thanks to new technologies and possibilities along with smartphones, the 2 world
leaders, JCDecaux and Clear Channel have deleted lots of their big format (1500 to 2000 for
JCDecaux, 1500 for Clear Channel) to be more concentrated on interactive support (billboards
become more and more digital for them with 2941 screens in 2013, 500 more than 2012).
b- Radio and Television: the beginning of the mass Media model
During the 19th
century, characterized by the evolution of multiple inventions, from the
electric telegraph and Morse, invented by Samuel Morse in 1841, the discovering of hertzian
waves in 1886-1888 by Heinrich Rudolf Hertz as examples, the first application of radio in
France have begun in November 1898 with Eugène Ducretet who has made the first public
transmission with “Wireless Telegraphy” between the Eiffel Tower and the Pantheon. The first
Radio emission destined for public has been made in December 1921 by Radio Tour Eiffel. The
interwar period has seen the development of private and public radios to the nationalization of
every radio in March 1945. French radios had to wait until 1981 to see official private radios
opening and 1982 to attribute the hertzian waves with the creation of the “High authority of
audio-visual communication”. It is the first Mass Media model. Millions of people can hear the
same message in a very short period, with free access. The Business Model is also built on
advertising to finance programs.
Today, the debate is on the TNR (Terrestrial Numeric Radio), which has started in 2012
with Paris, Marseille, Nice, and after in Lyon, Nantes, Brest… Hertzian waves are now
saturated in France and independent radios demand to expand TNR in order to develop their
coverage on the territory. TNR permits in fact to broadcast far more stations, to improve the
sound and to give the possibility to have associated data (song, title, picture, games…). But the
biggest groups as Radio France, NRJ group, Lagardère Activ and Nextradio TV, which gather
Alexandre Debouté, L’affichage résiste en France, Le Figaro, 22nd
the majority of the hertzian waves estimate that the TNR is expensive and non-operational.
Independent radios consider that big private groups make a lobby action to restrict competition
and to keep their audience base.
Radio is a Medium which changes a lot, particularly with the development of the
Internet which modifies the listening habits. In September – December 2013, they were 43,3
million people who have listened to the radio daily and 3 hours on average5
. According to
, in 2014, 89,4% of people aged from 13 years old were listening to the radio on
radio post, 3,8% on mobile and 6,7% on other supports. But if we focus only on the people aged
from 13 to 24 years old, the proportion of radio post is 70,9%, 16,5% on mobile and 12,5% on
other supports. A modification in the habits that radios want to change by using more and more
digital to have revenues.
The beginning of Television, for its part, was in 1880-1881 when Georges R. Carey,
Adriano de Paiva and Constantin Senlecq had developed the concept of sequential analysis
principle that is at the base of every animated image transmission. In France, the first image
transmission occurred in April 1931, thanks to René Barthélemy. The first emission is
transmitted in January 1937, every evening between 8 p.m. and 8.30 p.m. Canal+, the first
private and paying channel is created in November 1984. TF1 is privatized during 1987. France
Télévision, for its part has been created in January 2000 and the cessation of advertising on this
public service between 8 p.m. and 6 a.m. has begun in January 2009. TNT (Terrestrial Numeric
Channel) has been created in March 2005 with eight more channels (TMC, NT1, W9…). As it
was defined before, TNR would be on the same signal than TNT. The signal has then permitted
to welcome more channels like BFM TV or France Ô. Except France Television, which is
financed, in part, by the French government, and some channels, like Canal+, in part by
subscriptions (around 13,4 million today according to Mediametrie7
), the majority of TV
channels is financed by advertisement.
Television (with Cinema) is the major Medium in terms of investments in France and
in duration of watching (3h41 per people in 2014 every day). At the end of 2013, 83% of French
homes had a television8
. As other Media, laws have been voted to legislate advertising. France
Chiffres clés de la Radio en France, Mediametrie and SNRL (Syndicat National des Radio Libres), 24th
Mediametrie Global Radio 2 December 2014, Monday-Friday 5a.m. – 12 p.m., 13 years old and +
Communiqué de presse, Médiamat’thématik – L’audience des chaînes sur le câble, le satellite et la TV par
ADSL, du 2 septembre 2013 au 16 février 2014, Mediametrie, 13th
Key figures of French Audiovisual: 2nd
Semester 2014, ASC (Audiovisual Superior Council)
has the particularity to ensure the listening quality for every Media. But it implies numerous
restrictions: the sponsorship is highly delimited and advertising has to be at the national scale
(Décrêt n°92-280 on 27 March 19929
). Only a few Media, as France 3 Régions can have
advertising at the local scale.
Television is also a Medium which knows lots of mutations, particularly since the
beginning of video on the Internet and the arrival of new actors as Netflix or Youtube. Watching
habits has changed. According to Mediametrie, 2 million people in France (15+ years old)
watch Television on another screen in 201410
. It is 82% more than 2 years ago and they spend
4 minutes on it every day. 40,5% of people 15+ years old watch TV on another screen, but this
rate climb at 58,7% for the 15-24 years old people11
. A modification that channels have
c- Emergence of the Internet and the mobile technology: Evolution of how to measure and to
know customer preferences
World Wide Web has spread at the end of the nineties and has been particularly
developed at the beginning of the 21st
century. We have to go back in 1934 to find the first
vision of the Internet rising with Paul Otlet in its Documentation treaty. The first informatics
connection with a high distance has been made in 1965 with Lawrence G. Roberts and Thomas
Merrill between Massachusetts and California. The Internet is organized in more than 47 000
autonomous networks and the World Wide Web is one of the applications of the Internet. The
Web, as we know it today has appeared at the beginning of the nineties with the HTML
technology and the first browser in 1993. In September 2014, the Internet (as we will call it to
refer to the World Wide Web) has one billion websites for 3 billion Internet users. And those
figures are still increasing.
The Internet and its digital applications have deeply changed our habits and the ways
we are linked to the world and to Media. 75% of French people (46,2 million) aged of 2 years
Legifrance: décret n°92-280 du 27 Mars 1992 pris pour l’application des articles 27 et 33 de la loi n°86-1067
du 30 Septembre 1986 et fixant les principes généraux définissant les obligations des éditeurs de services en
matière de publicité, de parrainage et de télé-achat
L’année TV 2014, Mediametrie, 28th
Global TV, april-june 2014
and more have access to the Internet12
, 55,7% (30,4 million) are mobile users13
and 29,1% (12,6
million) are tablet users14
. Mobile is said to spread far more in the coming years and is
considered as the future principal device for Media. In 2014, 9 million French homes had 4
screens by average (1/3 of French homes)15
. To establish a picture of the Media landscape, we
can see in this scheme the repartition of Media investments and the evolution between 2013
Digital has become the second most powerful Medium in terms of advertising
investments in 2014 (it represents 2,89 billion of Euros in France, increasing by 4% comparing
to 2013). In more details, according to the SRI (Syndicat des Régies Internet), in Digital, mobile
advertising investments have increased by 80%, programmatic by 66% and video format by
. The evolution of Search, Display and other levers is shown in this scheme:
Measure of the fixed Internet, 2 years old people and more, Mediametrie, February 2015
Telephony and Mobile services - 11 years old people and more, Mediametrie, 4th
Observatory Web - Internet users 15 years old and more, Mediametrie, 3rd
Home Device - November / December 2014
Olivier Chicheportiche, Pub en ligne: Internet dépasse la presse écrite pour la première fois, zdnet.fr, 29th
Display is the ensemble of classical formats (banners, interstitials…), video formats,
Programmatic and Mobile. Search is referring to search engines like Google or Bing. More and
more Media uses the Web to develop their strategies and to enlarge offers. Every one of them
is becoming more and more digital. OOH has interactive billboards, radio and TV can be
listened and watch on the Internet and Press titles publish more and more on their websites. The
model of “Freemium”, characterized by a free part and a paying premium part, which allows
access to a bigger part of those websites or removes advertising, is spreading. Platforms are
also rising like Deezer or Spotify for music, Netflix and Youtube for the Video or e-Press and
LeKiosk for Press and disrupt the codes of Media.
Media world evolves. A new kind of the advertising is developed and Media are
searching for new ideas to know their audiences. Digital Marketing has lots of challenges today,
as Programmatic, and technology permits now to target the good audience at the good moment.
But the applications are different today, in function of every Media.
d- The roles of Media agencies and the case of Havas Media
A Media agency advises an announcer in its Media choices and accompany it in the
setting of its communication strategy. In the case of Havas Media, it has to elaborate Media
strategies, to plan campaigns, to negotiate prices of locations of Media sellers and to measure
the profitability of Media investments.
Havas Media is considered as the sixth international group in terms of turnover. It has
been created in 1999, with the fusion of Media planning in Spain and Mediapolis in France.
The two companies work on the same activities but are complementary on the geographic
repartition. It has developed its Trading desk Affiperf to manage new technologies and to be
able to make programmatic buying.
Media consultant at Havas Media work in intern with different department, specialized
on every Media to organize multi-Media strategies, responding to the objectives of brands. They
are always searching for new ways to reach the good audience in a Media environment which
is constantly changing.
2°) An environment which knows deep modifications
A Macro-environment analysis permits to understand what the biggest issues of a Media
agency like Havas Media are, and to understand what are threats and opportunities. The
PESTEL analysis (see annex n°1), from the Havas Media point of view, allows a better vision
of the Media landscape and permits to have a first study of the issues.
a- A political and legal environment that have a strong influence on the Media landscape
Modifications of the Media landscape are numerous. Some agencies can even
sometimes work for nothing when there are invitations to tender. The aim is after to keep the
announcer and to propose diversifications of their Media campaigns to make money. But this
kind of proposal can be problematic, particularly for small actors. The question is to know if
modifications have to be brought by the government or if it is all actors that have to coordinate
their remuneration and to reconsider their work. Havas Media has to make understand that it
has to modify ways it remunerates. Remuneration is largely made on volumes which have been
sold. Reconsidering Media agencies, at the centre of the Media environment, as Business
partners and not only location buyers is now primordial.
There is a lack of transparency between actors. The development of Media sellers inside
Media agencies has caused a temptation to compensate losses of invitations to tender in a lack
of transparency in their Media buying.
Laws restrict for the moment the possibilities to make local advertisements.
Development of programmatic in Media needs an adaptation of the law to permit to target
people, even on Mass Media and make personalized advertising.
b- Technology has helped in disrupting the economic environment…
Digital has brought lots of opportunities, but it has also disrupted the Media
environment. In fact, more and more content is available on the Internet, freely and it has
changes ways for Havas Media to target the good audience. This audience is fragmented and
Media agencies have developed programmatic, for example, to target precisely the good
audience. One of the biggest issue today seems to be the lack of transparency in the Media
agencies processes. Another issue is the lack of measurement for the advertising campaigns.
Technologic innovation and Digital has permitted to have more measurements on how
customers can consume Media. The tracking on the Internet and the development of new KPIs
(time spent on website, click rate…) allow to understand more the consumer behaviour on
Media, and particularly Digital. More and more tools in advertising, like brand safety software
allow to delimit the environment of diffusion of brands. New automations of processes also
help in the organization of a Media campaign.
c- … answering to new customer needs
People spend more and more time on Media, particularly with the development of
Mobile. Media agencies have to understand that new generations consume Media differently.
Havas Media uses software as SIMM-TGI to understand what Media can be consumed, in
function of the audience and the subjects. If Havas Media wants to reach them, it has to be
multi-devices and to understand their behaviours.
Moreover, customers have now the possibility to remove advertisements on their
browsers thanks to software as Adblock. Lots of customers consider that advertisement can be
intrusive and the question of tracking data on Digital is also a very sensitive subject. Havas
Media has to demonstrate that advertising can be a service for customers.
d- Intensity of the variables in the Media landscape
The following scheme allows to measure the impact of each variable for Havas Media:
The Media environment knows lots of modifications. The most important one is the
technologic variable which influences a lot Havas Media. It allows to automate processes and
to diversify devices. Moreover, Digital technology, applied to TV or Radio has permitted to
develop devices and has directly influenced the development of offers. The major issue for
advertising agencies is to manage new technologies and to understand audience behaviours.
e- Analysis of the different forces in presence for Havas Media
The following scheme shows the intensity of every forces and measures their impacts
on Havas Media:
The five forces are completed by a qualitative grade, classed from 1 to 4. The French
market is mature and firms, with an international network are already presents. But, innovations
in Digital are increasing and Media agencies have to remain alert. So the risk of potential new
entrants (as it has been the case for Facebook or Google for example) can increase in the coming
years. Moreover, Media agencies and Havas Media will have to rethink about their
remuneration and Business Model, with the development of the need of transparency by
Havas Media has integrated, the entire value chain in the advertising campaigns.
However, announcers can also hire Media consultant and develop their own Media departments
inside their companies. It could help them in data securing by limiting its share.
Suppliers, as Media, have a stronger negotiation power. Strong actors as Facebook,
Youtube or Google can impose their rules. However, the fragmentation of the Media landscape
and audience have driven down the prices of traditional locations.
Customers are central in the Media agency strategy. The diversification of ways they
can interact with brands (particularly thanks to social networks) have given them more power,
by contacting them directly, under the watchful eye of others customers. Moreover, with the
development of Adblock software, people can choose, if they want, to have advertisements or
not. To understand audiences and their needs is a challenge for Media agencies which demand
coordination from the ensemble of Media actors.
To understand them, Media agencies have developed their technologies to get data on
Media. Data management implies all actors of the Media landscape. Security, share and ethics
of data analysis are some of the biggest issues in the years to come. Data will be one of the
future comparative advantage in the Media environment. But we have to understand links
between every part to understand this question of data.
3°) Links and relationships between brands, Media agencies and customers
Media agencies have a central role in the Media landscape. Understand their position in
this environment will allow to see how Audience planning modify their links.
a- The service brand relationship value triangle
Before the arriving of the Internet, the biggest challenge for marketers was to know how
to reach in another way the contact and how they could interact with him. Personalization is
still a big issue today to create more contact with the customer. But the creation of this contact
implies that Media agencies have to measure it. Measuring marketing communications results
has never been easy. And measuring the returns of Integrated Marketing Communication (IMC)
seems to be doubly difficult. IMC is a strategy of Communication and Marketing, aimed at
integrating in such a way as to be coherent and efficient, all the communication canals of a
brand. The IMC challenge is how to measure the results of a combination of elements or
activities or communication forms that may or may not interact with each other and may or may
not create enhanced results. There is no one, single, agreed-upon measure of advertising or
marketing communication effectiveness which is widely accepted in either country. As for Don
E.Schultz, from the Northwestern University and Agora, in IMC Measurement: The Challenges
of an Interactive Marketplace, historically, some experts said that the value of the
communication must be to the consumer or prospect (Keller, 2003; Lavidge & Steiner, 1961;
Rust, Zeithaml and Lemon, 2004). Others said that it must be determined by what financial
returns are generated by the marketing organization (Schultz, Tannenbaum & Lauterborn, 1996;
Lenskold, 2003, Shcultz, Barnes, Schultz and Azzaro, 2009). Others think about social returns:
marketing communications activities must support corporate sustainability and to contribute to
the well-being of the society as a whole (Sharma & Starick, 2002; Kotler, 2010; Kotler
Kartajaya & Seitawan, 2010).
The initial efforts in IMC measurement were not necessarily based on communication
effects, but on behavioural responses by consumers. During the eighties and mid-nineties, the
focus of most Marketing communications measurement was on expending and refining the wide
variety of techniques that had been developed over the previous fifty or so years. For
advertising, that meant measuring communication effects. For the functional groups as Media
agencies, it generally involved behavioural measures. It was the challenge of finding ways to
combine and to coordinate the various communication activities. It has been traditionally
measured by addition or subtraction, not multiplication. It is also one of the big issues today:
how to combine human and technologic forces to target the right audience.
A Media campaign is prepared as followed:
In the mid 90’s, digital communication came on the scene. It radically changed the
control of the entire communication system. Where historically marketers controlled most of
the market and Marketing information, the interactive systems began to enable consumers and
customers to access information from sources other than the marketing organization as third
party sources such as websites, consortiums, resource centres, other customers... Marketing
Communication began to be interactive.
It has a major impact on all forms of marketing communication as it is shown in this
It has been called the development of the “push-pull” marketing communications
system. Marketing organizations continue to send out planned Marketing communication
messages through traditional outbound Media systems. These are called “Push” approaches:
the marketer pushes communications out to the customer or prospect. Marketers tried to connect
into an efficient communication delivery system or generate some type of consumer responses,
either attitudinal or behavioural. “Pull” methodologies customers are now using to acquire the
information or material they want or need. Three broad approaches are currently being used:
- The Internet and World Wide Web (search),
- Mobile communication where consumers can connect to other customers,
- New electronic word of mouth systems, which often are called social Media.
In each of these “Pull” Media forms, the systems are driven by the consumer. Today,
most marketing communication measures are based on some application of the hierarchy of
effects models. The problem is how to separate or to quantify which activity generates the
attitudinal or memory change. The marketplace is complex and the brand has become
particularly central as it is shown in the next scheme:
In the world of communication, it is necessary to understand how to manage every part
of the brand relationship value triangle. Brands are central and at the heart of the
communication. Another issue must be taken into consideration: the synergy or the potential
multiplicative effects that may occur as a result of consumer’s exposure to multiple Marketing
communication messages. Before, organizations activities as advertising, sales promotion or
direct marketing were measured separately. Now, the synergy between and among them
becomes an important emerging measure that must be considered.
3 major IMC audiences must be taken into account:
- Consumers/customers/users of IMC,
- The Marketing communication organization that develops and delivers IMC programs,
- Other, more global audiences such as the general society where issues of sustainability
and proper allocation of social resources are involved.
To estimate the impact of a communication campaign and to measure it have never been
easy. However, particularly thanks to new technologies, ways to reach customers have evolved.
b- The evolution of how to reach customers and how it can be measured
We are more and more today on the problematic to reach the right audience at the good
moment. Advertising agencies speak more about “Audience Planning” than “Media Planning”.
Media Planning is the action which consists in “choosing, in the framework of an advertising
campaign, Media and supports to be used, the choice of the diffusion moments and the
establishment of a campaign calendar”17
. It is more focused on the Media to use in order to
reach the ensemble of a target. For example, for an advertising campaign, you can use a
particular radio that reach the SCP+ (well off Socio-Professional Category) 25-59 years old
men. The message will be send to every people who listens to the radio, which means
particularly the SCP+ 25-59 years old men, but also other targets. Audience Planning refers to
the “process which consists in reaching a target, answering to precise characteristics, without
having any a priory on the places or the advertising supports used”18
. It has been born thanks
to digital campaigns with the “Ad-exchanges” which we are going to develop in the next parts.
A typical example is “retargeting campaign” where you have to quickly reach the people who
has left a website, thanks sometimes to “cross device”. Cross device is the “problematic which
consists in following and recognizing a user when he uses successively some screens or
With Audience Planning, Havas Media reaches a precise person associated to data and
not thanks to a Media (Media planning). Every time an Internet user is on a website, he interacts
with it, leaving data-rich digital footprints. It reveals pages a consumer visits on a website,
where he engages, subscriptions, cross-device behaviours… It permits to Havas Media
consultant to understand their audience and to reach them. When you know your audience, it
means that you interest in its interaction with brands and how you can interact and make them
understand your message.
Havas Media uses KPI’s (Key Performance Indicators) to measure the impact of an
advertising campaigns. If we take the example of a radio, the average time of listening and the
number of persons who listens to the radio are considered as KPI’s. Audience planning also
allows to have KPI to measure the impact of the advertising campaigns. Those KPIs can be the
behaviours of the website visitor (Average time on the website, click rate, number of pages
Definition Media planning, Définitions Marketing
Définition Audience planning, Définitions Marketing
Definition Tracking cross-device, Définitions Marketing
visited…), purchase data, Newsletter subscription… If we take KIA motors France for example,
KPIs could be the number of visits on the website or the car tests requests, answering
With the Internet, all Internet users can be “followed” to understand their propensity to
answer favourably to an advertiser’s message. The understanding of the customer behaviour
allows to identify the good strategy to adopt in order to deliver a message. To understand the
customer, marketers use “first”, “second” and “third party data”:
- The first party data is defined as the information of your own company about your
audience. It is most often cookie-based data and it can incorporate information
assembled from website analytics platforms, CRM (Customer Relationship
Management) systems and business analysis tools. It is the major strategy of Amazon:
their personalized recommendations are a first party data example. They understand
their customers behaviour and create dynamic and personalized advertising to make
convert customers, which means, in this case, to buy other products linked to the
- When companies do not have first-hand information, second and third party data
become useful. Second party data is somebody else’s first party data. The two trusted
entities find an arrangement to share their customer data,
- When a company sells its data, it is considered as a third party data. This kind of
company is also known as DMP’s (Data Management Platforms) or data aggregator.
They are esteemed to gather a vast amount of data and they make their data accessible
to competitors. So there is not a unique audience intelligence and it is possible to adapt
the strategy, answering competitors which can use the same data20
One other difference between Audience and Media planning is the optimization of the
campaign. Once a Media-plan has been agreed, it will be mostly stable, at least for a first part
of a campaign. But with Audience planning, it is possible to have direct feedback and to adapt
the campaign. Real-time campaign performance authorizes to modify the segmentation and
targeting model. To allow new insights and to enrich the KPI’s permit to modify the targeting,
to identify trends and sometimes to change the strategy adopted by a company.
Kathleen Limon (Product Manager), The difference between first, second, and third party data and how to use
them, Retargeter Blog
Audience targeting has deeply changed the marketer approaches on online Media. And
we know that, very soon, all Media are going to be planned differently as more and more
channels become digital.
c- Challenges for advertising agencies
To be successful in the new Media landscape, marketers must adapt their environment,
understand the effectiveness of every Media and the information collected. But it implies
numerous challenges as the transparency of the data.
With Audience planning, you move from a media-centric vision, proper to Media
planning, to a user-centric vision. It is a considerable step forward to the transparency of the
data and to know the impact of the advertising message. But, with the online advertising, there
is also the problem of “robots”, which are considered to make lose around 8 billion euros in the
world in 201421
, according to IAB (Interactive Advertising Bureau). Moreover, they consider
that 25 to 50% of online advertising investments are wasted in impressions and are never seen
by Internet users. It is one of the bigger challenges to take up in the years to come with the rise
of programmatic advertising which is going to rise to 28% in 2013 to 65-75% in 2017, according
to the IDC (International Data Council).
The value of an advertisement depends on the public interactions with the website. To
make this advertisement valuable, it is possible to make the announcer paying the click or the
page viewed. We speak about advertising fraud when software are used to simulate the traffic
on another website. Thus, the impression is never seen by the Internet user and the statistics are
deformed. Technically, a person can create a website and register it on an ad-network which
sells advertisement locations thanks to an ad-exchange. After that, this person can develop or
buy easily on the Web a software which imitates an Internet user behaviour, opening different
pages on the previous website created, and can do it endlessly. Announcer can, this way,
identify a website which correspond to its target, bid on the inventory and give impressions to
Ari Levenfeld, Publicité en ligne: combattre les robots, ou comment régler un problème à 8 milliards d’euros!,
robots. And if the ad-network or the ad-exchange detects the fraud and expels the website, it is
possible to create a new one.
But there are measures taken to guard against this fraud. Google for example has
acquired spider.io which is specialized in fraud detection. They have identified a fraud of 6
million dollar lost per month to announcers. Facebook has sued Martin Grunin for the
misappropriation of 360 000 dollars. Buying platforms also changed: it is now possible to
dismiss suspect websites by distinguishing human to robot behaviours. Humans for example
buy on the Internet thanks to their credit cards and not robots. Moreover, a human will not visit
thousands of websites every days on short periods. The IAB has published an ensemble of anti-
fraud principles to help in having a reference in protection against trickery.
Another challenge for advertising agencies is to diversify their Media landscape:
“We are facing a macroeconomic crisis and a strong evolution of the Media landscape,
with new entrants in TNT, technologic evolutions and usage modifications” says Luc Tran-
Thang, president of Starcom (Publicis Group)22
With the decrease of press publications and the rise of online journalism, press
diversifies its revenues thanks to its websites but the online advertising stocks are cheaper than
printed press. Media consultants can use Programmatic and analyse data to be more user-
centric. Using ad-exchange permits to use a precise targeting.
Luc Thang adds: “data permits to make the link between different channels, to
understand better the consumer path, whose contact points are more and more multiple. It
permits to go from a Media orchestration system to an inter-Media integration”23
In the same trend, Media are more and more “social”. People do not always fill forms
but they can “tweet”, “like” and “comment”. Everyone produces deliberately data which can
be analysed. Dominique Delport, from Havas Media France evaluates that there is an increase
of audience from 10 to 20% on deferred diffusion. It is now possible to create direct contact
with the customer. During the last Super Bowl, when advertising screen interrupted by a
blackout, the creative people of the brand Oreo have developed an advertisement in a few
minutes with the slogan: “You can still dunk in the dark”, the verb “to dunk” refers to put an
Capucine Cousin, Les 5 Enjeux des agences médias, Stratégies.fr, 25th April 2013
Oreo in milk. Oreo created a direct link with customers and ensured it a large scale
Moving from a Media-centric to a user-centric vision implies many challenges. To pay
attention to online advertising fraud and to diversify the Media landscape by using
Programmatic or social networks permits to answer to the Media crisis by finding other ways
to find money. They are two consequences of the need of traceability of data and the need to
maintain or develop a good Media editorial quality thanks to more measurable communication.
And the development of more and more digital suggest that Programmatic will spread to other
Media than only the Internet.
4°) Presentation of the interviews: a qualitative study to understand those
It is primordial to understand Consultants points of view, regarding their own
departments. Their testimonies permit to understand what biggest direct issues are for them and
will allow to give recommendations.
a- Explanation of the methodology and the people interviewed
In this study, we aim at searching if new technologies help in the organization of a Media
agency campaign and if they are going to replace the traditional Media planning. To understand
this, a qualitative study is necessary to understand what actual challenges are and the feelings
of the people interviewed. It has permitted to have their points of view about the impact of
technologies on their jobs and how they manage it. Their testimonies are anonymous.
To complete this study to understand the new ways to reach customers, 9 people have
been interviewed. Those interviews had three main objectives. The first one was to make an
inventory of fixtures of the Media landscape and how to reach customers, which means if they
make a difference between Media planning and Audience planning and if they know the
functioning of Programmatic. The second objective was to understand their work and to see
what the evolutions were and how technologies have made evolve their jobs. The third objective
was to see if they consider that there was challenges for Media, brands and Media agency. This
way, it was interesting to know how they consider their work was going to be in the coming
years and what could be done.
People interviewed all work in the Media field in front (in direct contact with customers
and brands) or middle office (people who manage campaigns to meet with the objectives). They
work in Media agencies or Digital advertising companies. Those people work with all types of
Media, online and offline and are directly confronted to new technologies which modify the
way they organize campaigns.
b- What are the main ideas presented?
Programmatic is one the biggest revolution in the Media landscape of the last years. All
the people interviewed are aware of it and make a real difference between what we called Media
planning and now, more Audience planning. However, they do not make sometimes the
difference between RTB (Real Time Bidding) and Programmatic. By and large, they are
globally positive about programmatic buying and consider that it can give something new in
the organization of a Media campaign. Two of them are not convinced by the pertinence of the
model and do not consider that it will spread to every Media. Others think that it is very positive
and the campaign organizations will be, except for precise fields as luxury for example, totally
based on the model of programmatic buying.
They all agreed for the moment that the luxury field needs to be on the model of Media
planning to ensure the “quality of the impression”, argument highlighted by everyone and
particularly the 2 people who are more reluctant to programmatic buying. For programmatic in
open market, the uncertainty of where the advertisement will occur is also featured and is not
reassuring for announcers. On the other hand, the main advantages pointed out are the quality
of the audience targeted. I have heard from all of them the idea to “get the right audience, at the
good moment and at the good price”. Programmatic is presumed to give, for the moment the
best audience, depending on the quality of the data and it is possible to understand when to give
the good message. Geo-localization or double synchronization permit to help in understanding
those moments. If someone watches an advertisement on TV, he will be retargeted on a second
screen on a very short period. It is what we call double synchronization. Programmatic buying
is based on bidding, so, Media agencies will try to get the best target at the better price. But
they all precise that the quality of the targeting is linked to quality of the data.
Data quality seems in fact to be one of the biggest challenges in the years to come
because it will ensure the pertinence of programmatic buying. If Media and Media agencies
manage to prove that they can ensure a good quality of their audience on the good supports,
programmatic has a good chance to spread more. This data also has to be measurable. New
KPI’s can be found and habits have to be more and more analysed. The quality of impressions
is also considered as a challenge. Media agencies and announcers have to be agile and to
innovate in their communication to attract consumers. Even if they did not speak about it
spontaneously, Adblock can divide. Some of the people interviewed considers it as a threat for
Digital. But they consider that solutions are going to be found. On the contrary, others consider
that it improves the quality of the audience. In fact, if a people do not want any advertisement,
he will not be sensible to messages. So it permits to focus only on people who could be sensible
to them. Another challenge is the actual consideration of Programmatic and how to adapt the
message to announcers. Programmatic was used at first to fill the unsold locations on websites.
It has gradually been developed to target people. But it still has the reputation to deliver a low
quality inventory. But beyond those challenges, their interviews indicate that there are limits to
the development of programmatic buying in France.
The first one is legal. On mass Media, except some cases, it is necessary for the moment
to send the same message to everyone at the national scale. Laws become more and more
obsolete, as Programmatic becomes popular. The second limit is technologic. It is necessary
that telecommunication operators (as SFR, Free, Orange or Bouygues Telecom) use the same
technologies for their Internet boxes to help in the development of Programmatic in traditional
Programmatic buying is now considered as unavoidable, even if some people are not
convinced by the model. The understanding of the functioning of programmatic buying will
allow a better analysis of the challenges and will help in the research of recommendations.
II/ A media landscape which knows different evolutions in
1°) Presentation of the programmatic technology
Programmatic disturbs the Media landscape and ways Media agencies can organize their
advertising campaigns. Understand its processes will allow to understand how Media agencies
can give a precise service for announcers thanks to a better targeting.
a- The model of programmatic buying
Audience planning is a direct consequence of programmatic buying. The most complete
definition should be the one of Yannick Lacombe, Strategy and Numeric transformation
director of France Télévision Publicité (FTV):
“The programmatic buying is a new manner to consider a commercial transaction between
an announcer and an advertisement seller. It is about to introduce a buyer to a real time seller,
through technologies (DSP, Demand Side Platform and SSP, Supply Side Platform) on
marketplaces that can be opened or constrained (Ad-exchange, Private Ad-exchange). The most
usual buying way is the RTB, which means Real Time Bidding of each advertising elements of
a website or an application, on standard display formats or video. What we observe is that we
do not speak only of the Programmatic but programmatics. In fact, the impression acquisition
can be dealt thanks to bidding but also thanks to ID Deals which fix a precise CPT (Cost Per
Thousand). It can be with or without an inventory guaranty. Programmatic is more and more
qualified with labels as: programmatic guaranteed, priority programmatic (preferred deals),
programmatic with private access (private marketplaces), or open programmatic (open
marketplaces). The relationship was an exclusive link between trading desk and an ad-
exchange, we observe that companies which organize Media planning and advertising agencies
can be programmatic deal creators, and trading desks with Ad exchanges, operators of those
deals. Programmatic starts to be protean and complex”24
Définition: qu’est-ce que des achats programmatiques?, Ad-exchange.fr
Targeted audience is at the base of Programmatic. To target this audience, it is necessary
to use data and the quality of the audience depends on the quality of the data. As explained in
the previous parts, three kinds of data are available. As for a Media consultant interviewed:
“The first party data is the data which belongs to your announcer. If Carrefour wants
to make programmatic, it wants to have Allocine data for example, and make a deal with it to
have access to its data. It is what we call second party data. Third party data comes from
specialized companies in data mining. They are providers of the data”.
To analyse those data, it is necessary to understand the technology. In Programmatic,
automation is a real technologic innovation but the influence of people is also very important
(Media consultant, data scientists…) to know how to react in function of the progress of
The data is essentially collected thanks to cookies installed on machines. They permit
to build Internet users profiles as age, gender, city, center of interests, navigation historic…
Those data permit to target more precisely the audience. They are managed by databases called
Data Management Platform (DMP). It is a predictive way to target audience. Another way is
declarative when Internet users fill forms for example.
Two things are already sure today: the use of Mobile and Programmatic are going to
spread more in the coming years. In the United States, programmatic market is now around 15
billion dollars with an annual growth of 20%. Business Insider anticipates the fact that around
65% of online advertising will be programmatic by 2020. According to the E-Pub-SRI-
, for the French market, programmatic buying has increased by 125% in
2013. It represented 117 million euros. PWC estimates that programmatic will represent around
32% of French display market in 2017, 42% for the United States, 30% in Great Britain and
28% in Germany. Digital is the only Advertising segment which increased in 2013.
Rencontres de l’UDECAM, Livre Blanc - Les révolutions de l’achat programmatique, 25th
To make an ensemble vision, the programmatic buying can be summarized in this
one seller -
one seller -
one seller - all
with fixed rate
Reserved Fixed One - One Programmatic
in the ad
of the data...
with fixed rate
Unreserved Fixed One - One Preferred
First right of
Private auction Unreserved Auction One - Few Private
Open auction Unreserved Auction One - All Open
The reserved inventory is an advertising space on a publisher’s website that is put aside
for a specific advertiser for an agreed price. The fixed price is any arrangement where the buyer
and seller agree on a flat price that the buyer pays rather than the highest bidder in an auction
Four kind of programmatic buying can be done today. A guaranteed transaction with
fixed rate is similar to a classical direct sale, negotiated between an editor and one buyer. Price
and inventory are guaranteed. It is a real time automation process with a targeted audience.
With an unguaranteed transaction with fixed rate, the price is fixed in advance but the location
Matthieu Tranvan, 5 paradoxes de l’achat programmatique RTB aujourd’hui, matthieu-tranvan.fr, 2nd
in the inventory is not guaranteed. Private auction is an auction where a group of buyer is
selected. The editor defines the minimum price. Other criteria are activated and give restrictions
to those who participate to the bid. Finally, an open auction is a classical bid, which is accessible
to every buyers. The editor defined the minimum sale price of impressions in its inventory.
Every locations and every announcer can access the bid.
A common mistake is to make the confusion between Programmatic and RTB.
Programmatic in general is to reach the good audience at the good time, and indirectly, at the
better fixed price. In addition to those criteria, RTB includes the notion of auction. Open and
private action are based on RTB model. For a better understanding of the challenges, it is
necessary to analyse processes and actors who make up RTB.
b- Focalization on the Real Time Bidding processes
RTB business network and processes can be represented as followed:
RTB is a Business Model which allows, thanks to a technology based on an algorithm,
to bid in real time on advertising locations online, with pre-defined parameters in function of
the needs and the objectives of the campaigns. When an Internet user selects a web page which
uses RTB, the URL tag “calls” an ad-server which makes the link with announcers, ad-networks
or ad-exchanges. The Internet user is targeted thanks to cookies. If some announcers want the
same location, process of bidding appears. If the Internet user who is the target by the announcer
visits a website page, the advertisement impression available on this page will be auctioned.
Depending on his profile and moments, an Internet user do not see the same advertising than
another Internet user.
According to Magna Global, (IPG Mediabrands), transactions in programmatic
represented 21 billion dollars in 2014 for the 35 countries studied. 44% of this amount has been
programmatic (around 9,3 billion dollars). They also predict that more than half of RTB buying
will be for mobile in 201927
“Website editors continue to sell classically via Media agencies which whom
transactions are made directly. But RTB is taking more and more place”, explains Richard
Strul, Resoneo founder and Vice-President of IAB France (Interactive Advertising Bureau).
RTB has been born the 23rd
October 2000, when Google has launched its Ad-words
system. If an announcer wants to publish an advertisement when an Internet user is searching
for a special keyword, he will make a bid to buy this keyword. The announcer who has the most
elevated auction and respects limits fixed (as daily budget or the number of impressions…)
wins the impression and its advertisement is published. All this process of bidding is done in
less than a second (around 120 milliseconds, according to Tradelab). In 2015, RTB is based on
the same model but it includes banners or video pre-roll.
Programmatic was, at the beginning, created to sell the unsold locations, which had not
been sold to announcers. It was a promise to buy a cheaper location but also less qualitative.
But this notion have changed, because of the development of new actors as SSP (Supply Side
Platforms), DSP (Demand Side Platforms) which allow to optimize the Internet user targeting,
the buying of locations and to sell them at the better price. Between DSP and SSP, there is the
ad-exchange platform which permits the consolidation between Offer and Demand and finalizes
the financial transaction. It is a virtual marketplace. Trading desks manage and optimize for
announcers and Havas Media, Display, Video and Mobile Media buying on ad-exchanges.
Le Marché mondial de l’achat programmatique augmentera de 52% cette année, Journal du Net, September
DMP (Data Management Platform) and others data providers manage large amount of data.
They use first, second and third party data to create audience segments.
Internet giants has invested on this technology as Google which has its ad-exchange,
Facebook has Facebook Exchange (FBX). Twitter has bought the start-up Mo Pub which has
developed its RTB technology. If we take the example of the operation realized by Rocket Fuel
ad-exchange for the Lufthansa Company, they have made an increase of 11% of their
conversions, decrease their CPA (Cost Per Action) on the plane tickets by 50%, thanks to
programmatic behavioural targeting. The theoretical success of programmatic model forces
traditional Media as TV or Radio, to invest on it, and to think about the technologic possibilities
to spread this model.
Those advantages of RTB are possible thanks to the components of the environment of
RTB. But how do they help in optimizing the audience?
c- How entities make Real Time Bidding primordial today?
SSPs are technological platforms, as AppNexus, which permit to sellers to facilitate the
managing of their inventory. Those platforms identify available locations and automate their
sell on ad-exchanges. It permits to gain time for Media sales houses and publishers.
DSPs are technical platforms which negotiate prices with ad-exchanges. Mediamath,
Invitemedia, Turn or TheTradeDesk are examples of DSP. There are 2 kinds of DSP:
- Open APIs (Application Programming Interfaces) which allow to buyers to plug their
own technologies to optimize Media buying,
- Closed APIs which are simple campaign monitoring, which capital is essentially human.
It is an automatic process where a Media agency, for example, is searching for an
available impression to target a precise audience. It gathers different ad-exchanges and data
providers. Agencies and trading desks can apply their different strategies to buy spaces
available on the DSP. As ad-exchanges, some DSPs specialize on Display,Video or Mobile.
Ad-exchanges are virtual marketplaces where sellers (websites editors, mobile
applications, social networks and Media sales houses) meet buyers (announcers, agencies and
technologic service providers). Sellers provide inventories with a minimum price and buyers
can bid on it. The highest bid wins the publication. Audience Square, La Place Media,
Facebook, DoubleClick by Google, Hi Media or Orange are famous ones.
Trading desks, for their part, manage and optimize Display Media buying, Video and
Mobile on ad-exchanges for announcers and agencies. It exists two types of trading desks:
- Affiliated structures to Media agencies as Affiperf for Havas Media,
- Independent structures as Tradelab.
In those trading desks, there are “simple” Media buyers but also technologic providers.
The last ones are Media buyers but they also guide the advertising investments of their
customers by building technologic solutions. They can personalize their technologies to answer
announcer problematics but there is also the “human capital”, which means that trading desks
have people who can manage campaigns and provide solutions in function of the objectives as
TradeLab or Vivaki. They know which kind of audience are on ad-exchanges.
Ad-servers permit to manage, in a centralized way digital advertising. It manages
display but also ensures statistics to know the number of impressions generated on a website.
There are two types of ad-servers: editor’s ad-servers which manage display zones on their
websites according to announcer imperatives and agency’s ad-servers which allow to media
agencies to control the productivity of their advertising campaigns. It is composed of two
- A campaign computer manager which allows to input visuals and to configure the order
of displays and the location placements on the website,
- A zone computer manager which configures the number and format of every advertising
location on the website. It furnishes scripts for every zone. It permits to broadcast the
Finally, DMPs allow to transform data in insights and audience targeting. This audience
is qualified to be transformed in data and utilizable information for Marketing. DMPs nourish
the advertising targeting of the trading desk. The 6th
annex, page 73 allows to see the principal
actors who manage RTB.
2°) A technology which meets different objectives for brands and Media
To deliver their services and answer to brand strategies, Media agencies have to develop
Programmatic inside their agencies and to manage its issues.
a- Advantages of Programmatic and the need of programmatic technology to help in the
A Commercial Director explains: “The first advantage of Programmatic is the data
part, the targeting part, the contact that I am going to reach. The second advantage that you
are going to give is the notion of costs. Ultra-targeted contact also means performance. […]
You can work, not on short term but on long term, on a tactical way”.
It seems that the more your data is “clean”, the more your audience will be precise. The
highlighted advantages could be resumed in this scheme:
Thanks to Programmatic, campaigns are more and more measurable and it is easier to
have KPIs and to analyse the Returns On Investments (ROI). From a total theoretical point of
view, Programmatic is now the best way to target precisely the audience and can help in
answering the need for announcers to see what the effects of their investments are, and how
they can improve their campaigns to have ROI. They also know precisely where their
investments are gone and how many impressions have been done.
Programmatic can help in strategic choices, as engagement or branding. Thanks to RTB,
an advertising location, which is not clicked by the Internet user, will not be bought by the DSP
and SSP takes in account that it does not interest the Internet user. Moreover, RTB allows to
target precisely the website pages which can interest the announcer. Only some pages can be
chosen to broadcast a campaign. It allows to announcers to know more about where they are
going to publish their visuals.
To understand what is important in the use of programmatic but also issues that inhibit
its use, Chango trading desk have questioned marketers from the Fortune 500 members. They
have ranked their priorities in the two following graphs28
Que savent vraiment les annonceurs en matière de marketing programmatique, Ad-exchange.fr
Whether it is the driving or the inhibiting in the use of Programmatic, the issue which
seems to be the most important is the data management. It shows that, if data is well managed
and if Media agencies prove that they control locations of publications, Programmatic has a
chance to spread more in communication campaigns.
In a general way, programmatic seems to be one of the biggest issues today. And the
development of it in digital seems to be, for the moment, a necessity for Media and Havas
Media to find new ways to develop their offers. But is programmatic developed for other
b- Applications to every Media and evolutions
For TV, as a Media Consultant, “we do not make programmatic buying. If I hesitate
answering you, it is because TV channels pride themselves in making “guaranteed GRP [Gross
Rating Point] cost” and already making programmatic because we give them precise briefings:
targeting, day type, daily pressure… And it is on those bases, those ultra-quantified data that
they automatically program thanks to specialized software screens. They build and rebuild
plans every day to reach the performance objectives. If I tell TF1 or M6 that I want to buy at a
guaranteed costs, it will be a form of programmatic buying. However, it will not be in real time,
but in advance, some days before the diffusion. Negotiation is neither in real time. It is a
negotiation by mutual agreement and we find conditions to have a GRP cost and the channel
manages the delivering”.
GRP is a pressure grade on a precise target to know how many contacts are going to be
reached by an advertising campaign. It can be calculated thanks to the coverage rate multiplied
by the medium repetition rate. It is one of the principal measures to know the efficiency of the
campaign. TV channels sell screens with a type of audience they know.
The next step will be to target this audience but in real time. It implies that TV will be
personalized to every viewer. The experience has started in the United States and United
Kingdom. French TV channels are working on it. Today, IPTV (Internet Protocol Television,
which means, all forms of TV broadcasted on a network using Internet Protocol) works on a
programmatic system. In the United States, programmatic TV could represents 4% of total
advertising TV turnover. As for a programmatic Director:
“Today, we already have IPTV on the Internet boxes. You can go on replays or TF1
Replay. There is not notion of targeting but you have inventory at your disposal”.
There is a development of audience targeting and buying is automated. In 2015, Canal+
Régie has shown its “All Ad In” project aimed at launching personalized TV.
Problematic of Programmatic are quiet the same for radios. As for an Audio Director:
“All our campaigns will not be in Programmatic tomorrow, but the day after tomorrow,
yes”. He adds: “That’s all new! It is “Work in progress” because audio programmatic did not
exist before, except in the United States or United Kingdom […]. We are starting the first
campaigns […]. The programmatic specificity has come from the existence of an incalculable
number of supports and difficulties to reach audiences in a split environment”.
Three ad-exchanges, specialized in audio have been born to develop programmatic for
audio as Adwave, A2X and Radionomy. Deezer and Spotify develop their targeting on their
platforms and use more and more the data.
Media consultant estimates in general that Programmatic will be harder to apply on
OOH and press. For OOH, a programmatic Director asks:
“How is it possible to drive programmatic for this offer? We can make automatic and
combine Decaux or Clear Channel inventories but, even if we make this totally automatic, you
do not have audience. If you have your Sephora billboard on digital screens, you can identify
my smartphone to know if I am nearby the screen but you do not know If I will be receptive to
this advertising […]. The challenge for tomorrow will be: how can we add this notion of
Audience planning in this notion of OOH”.
OOH screens are more and more digital and can be personalized. But audience
measurements have to be developed. It is the same problematic for Press but we also have to
understand that Press environment is still changing a lot and we do not know if printed Press
will still exist in the coming years.
Programmatic has a huge impact in the Media environment and changes in many ways
the vision that we can have of communication, thanks to better measurements and a better
estimation on ROI. But what are the challenges of it? How to accompany Programmatic
III/ Challenges of Programmatic: a need of a better
1°) A need for brands and Media agencies to understand their audience
Innovation and adaptation are two rules in the Media environment. But what roles Media
agencies can have and how it can influence their environment?
a- Media agencies have to be “agile” and to be creative
Consumers are now multi-devices and are very exposed to advertising. If a person
consumes around 6 hours of Media every day, with the average number of advertisements every
hour, this person could see around 350 advertisements every day and this number can increase
in function of the Media used. Segmentation is harder today and audience is less a monolith.
People are more and more on 2 screens. Double synchronization, permits to target a people on
a second screen after he has watched an advertising on TV. It permits to announcers to reach
him 2 times and to improve memorization.
This is especially true especially as customers can now interact with their brands and
advertising. Advertising has to be done for the customers but also with him. Social networks
and Digital in general permit to interact more with them. However, as they gain power in the
brand image with the developments of links, particularly thanks to social Media, brands and
Havas Media have to adapt their messages and be aware of customer’s reactions.
It is the duty of Havas Media consultants to build multi-Media strategy and to
understand the Media landscape to reach customers. Mass Media are useful to target a large
audience but the principal need today is personalization. Understand channel diffusions allows
to improve communication effects. Media consultants will need to give advises to announcers
and to improve the links between the technical part of advertising and announcers for a better
understanding of what message to give at a certain moment for a certain person. The real added
value for Havas Media is to make understand what the better way to make advertising is.
Moreover, a Programmatic Director adds: “Programmatic is, beyond targeting the good
audience, you need creation […]. You are going to address to people who are more or less
engaged in a transformation tunnel, in the knowledge of the brand and you decide what message
you are going to give”.
If someone knows the brand, is used to buy its products, an adaptation of the message
is necessary and could be for example an invitation for a private sale. Indirectly, it is necessary
to understand how it is possible to reach the customer without annoying him. Differentiation of
the message is really important and it depends a lot on the creation and which words are going
to be used to attract customers.
As for a Commercial Director, “the biggest issues today, if you want that RTB works
and has sense, is, firstly the quality of your data and secondly, the quality of your advertising”.
One of the biggest issue today for announcers is the “quality of the impression”.
The quality of the creation and location are obviously primordial but the quality of the
data seems to be the most important.
b- Make understanding the benefits of programmatic to announcers
An Audio Director explains that “the issue in programmatic is the data. It is necessary
to have all necessary resources to have a precise targeting. I think it is one of the biggest
challenges. We have technologies to activate data segments, to geo-localize, to make precise
targeting and retargeting. The issue is to have the “cleanest” data, to have a clever and efficient
targeting. The second challenge is to measure those campaign results to learn lessons and
adjust tactics if what you have activated is not pertinent”.
The most important is to improve the quality of the data and to find new ways to measure
customer habits. The more Havas Media will prove that announcers can have good ROI, the
more the use of Programmatic will become widely accepted.
Furthermore, Havas Media has to change the vision of communication for announcers.
Traditionally, announcers have the habit to choose one Media, so they know precisely where
they are broadcasted. With programmatic, you have a better comprehension of your audience
and data, thanks to precise targeting. However you do not know precisely where your locations
are. A Media Consultant explains:
“If you have to work the audience, those actors want to have guarantees of contexts and
locations in which they are going to appear. They need in priority to know where they are going
to be present before knowing which specific target they reach”.
And it is comprehensible. He has given an example:
“The FDJ [Française Des Jeux] cannot address its message to people aged under 18
and they are really aware on websites where they have appeared. We are going to work more
on programmatic than RTB. We cannot be on open RTB. We are going to search for a specific
website list, safe, secure to ensure a presence on locations which correspond to their target”.
Media consultants have to make them understand that they can reduce the diffusion list
and select specific website lists. There are also more and more brand safety tools as Adledge,
Alenty or Integral Ad Science which exist and help in giving a quality diffusion list. Brand
safety concerns, in fact, every stakeholders. Brand safety tools permit to control where the
publications occur, to respect brand image. It can reassure brands in their list diffusions. It is
necessary to explain that it is possible to control the diffusion environment. It is also important
to explain that Programmatic is not only RTB and it is possible to control diffusion. A
Programmatic Director tells:
“I think the priority issues are reassure and reinsure announcers on the pertinence of
Digital and that is an unavoidable Media. The 0 default cannot exist, you will not necessarily
see your brand. But engagement is measurable. Everything is measurable in Digital. Your
money is well invested”.
Brand Safety tools also allow to detect robots. Considered as a real problem, many
studies have estimated that around 25 to 50% of traffic on Digital is not generated by Humans
(and it was only 6% in 2011)29
, causing a reckoning loss of 5 billion dollars.
“We cannot see our announcer in the eye and say that the 25 million impressions I
diffused have not been seen by robots. Today, we cannot guarantee that. But it is the case of
Digital since the beginning. It is a big issue. There is KPI notion (click rate, bounce rate, arrival
Internet: la fraude au clic fait planer une menace sur le secteur, Les Echos, 22th
rate, spent time…) which allows to know if you are a robot or a human. There are programmatic
solutions which allow to know ahead if there are robots”, admits a Programmatic Director.
Education about Programmatic is one of the biggest challenge in the coming years for
Havas Media. It is important to make understand that the diffusion environment can be
controlled. But French law can be restrictive.
c- But the French legal setting is obsolet
One of the law which legislates advertisement is the Law n° 93-122 relative to
corruption prevention, economic life and public procedures transparency, approved the 29th
January 1993, which is also Sapin Law, in reference to the name of the minister who developed
it. The article 18 highlights that “every producer, service provider, wholesaler or importer, has
to communicate to every product buyer or service provider for a professional activity, who
makes the demand, price scale and selling conditions”30
. This article, for example, is
considered as obsolete in the Media environment. It is not possible to know, for RTB the price
of the impression before the publication and the process of bidding.
With the Macron law discussions in 2015, Digital should be under the legislation of the
Sapin law. The Sapin law has permitted to have more transparency in the sale of advertising
locations. One more problem is the status of seller – buyer. With the Digital, and particularly
RTB, locations can be bought by actors (“retargeters”, trading desks…) and resold. Digital
needs a new status of buyer and reseller, as for the UDECAM (Union Des Entreprises de
Conseil et Achat Media). They want to create a new status of “location transformers”, for those
who buy locations and enrich it with data to sell it again in a global service setting. The president
of the UDA (Union Des Annonceurs), Pierre-Jean Bozo explains:
Legifrance, LOI n°93-122 du 29 Janvier 1993 relative à la prévention de la corruption et à la transparence de
la vie économique et des procédures publiques
“We do not want to come back on the Sapin law. We want its maintenance, but with an
application circular concerning online advertising and the respect of the non-confusion
principle between the buyer and the seller of advertising locations”31
UDECAM, SRI and UDA are trying to change the status of those who buy locations to
make understand that they are now, more “Marketing providers”, thanks to data than simple
buyers. They want to make them remunerate, not on the volume but on performance and time
spent on the campaign. They also think about the legislation about targeted and locals
advertising. A programmatic Consultant explains:
“French law stipulates that, at the national scale, everybody has to get the same
advertising, it is the law”.
It is, for the moment, impossible to make local advertising on mass Media as TV. If
Programmatic is developed to traditional Media, French law will have to change.
Digital needs a setting and traditional definitions are jeopardized. However, legal
settings are not the only limit.
2°) Technologic limit
One of the future biggest limits to the development of Programmatic is the technologies
restrictions, hold by telecommunication operators. Moreover, more and more tools on the
Internet have been developed to block advertisements on the Internet.
Loi Sapin et Internet : Annonceurs et agences médias prêts à l’autorégulation, Les Echos, 26th
a- Telecommunication operators and the need of unification
“There already are synergies which are set up but there are so many actors… If we take
the topic of TV and its big issues, as we will not be able to identify who is behind his TV and to
standardize Internet boxes, in order to have a unique and identified information, we will not be
able to make case by case”, adds a Programmatic Director.
Technology has to be at least national. If telecommunication operators agree to unify
their technologies and to harmonize the way they gather data, it will be possible to make a better
There are 5 principal operators in France: Orange, SFR, Bouygues Telecom, Free and
the MVNOs (Mobile Virtual Network Operator). Each one of them has its particular technology
to understand their audiences. If traditional Media, particularly TV and Radio, want to make
Programmatic at the national scale, on the Digital signal of Internet boxes, it is necessary to
harmonize French telecommunication operators technologies.
A unique technology to gather data from those companies would permit the
development of Programmatic on traditional Media. However, Media has also to face other
problems linked to technology.
b- The case of Adblock: a threat or an opportunity?
Created on December 2009, Adblock Plus is a software which permits to obstruct
advertisements on Digital. Adblock is the most popular Google Chrome extension with over 40
million users and Safari extension32
. It is free to download and to use. Adblock has been
critiqued due to its white list, which permits to publish advertisements judged “non-intrusive”.
In June 2013, Google advertisements have been added to the white list thanks to a financial
agreement between the two sides (around 20 million dollars could be deposited by Google every
year to Adblock33
). A Media Consultant considers in fact that:
Google Chrome Webstore
Gilles Tanguy, Les logiciels bloqueurs de pub vont-ils tuer le Web ?, Capital, no
276, October 2014, page 48
“They do not talk about it a lot. But when we see how much is lost, it is a consequent
budget which flies away. It is 8 billion34
. It is huge. As for me, Adblock is an extortion”.
However, other people think, reflected by another Media Consultant:
“We are able to know lots of things thanks to Internet boxes. My data is furnished. I
want a ROI if they sell my data. […] It does not disturb myself. It is a « win-win situation ».
Digital is a canal. […] ». She adds, about Adblock: “if there is a democratization, this can
becomes dangerous. It is necessary to develop lobbies. However, it requalifies the audience.
The most refractory ones have their needs. They do not need advertisements. We question
ourselves too. Doctissimo for example. The website is better and with less advertisements. We
have to gamble on creation, to create dreams”.
In fact, if a people really do not want to see any advertisements, even if it is published,
he will not care about it. So it could, in a way, refine the audience. It is necessary for websites
and Havas Media, for the future, to make understand that advertising can be interesting for
people and to choose for them advertisements link with their centre of interests. Websites could
also make understand that they need advertising to live but also make understand that it
advertisements can be a win-win situation.
Those limits have to be overtaken in order to help in the development of Programmatic.
The next recommendations can help in overcoming challenges presented.
Olivia Solon, Google spins ad fraud-busting web with spider.io, Wired, 24th
IV/ Havas Media has the possibility to develop Audience
planning, by accompanying the evolution of the Media
1°) A need to help in change
Programmatic issues are numerous and Havas Media can take advantage of it. Havas
Media has the tools to adapt but it needs principally a mentality change.
a- How to restrict data and technical limits?
Media and Media agencies take seriously into account the issue of data safety.
Integration of DMP inside Media agencies allows to centralize their data and those of
announcers. However, a Media Agency Director explains:
“I am going to be a little weird about this. If we want to have an efficient DMP, we have
to put Media data with CRM data […]. I do not think it is positive for our announcer to give its
CRM data. Because it is a very sensitive data. I am comfortable with hosting DMP in the
announcer’s company, to guarantee data safety, to guarantee to my announcer that I am not
going to use its compartmental data for others announcers, who are not necessarily its
competitors. A potential car buyer can be used for my insurer customer”.
Data safety is an issue and if Media agencies as Havas Media want to keep DMP inside
their companies, they have to be aware of its security. About technical limits, it is necessary to
develop a unique technology to be shared with the ensemble of actors, Media and
“Canal+ has announced, a month and a half ago, that it wanted to take the leadership
in programmatic buying in TV. Why? Because they have 11 million subscribers. They have rich
information. They want to make advertisement personalization through their boxes
Canal+/Canal Sat with other telecommunication operators as Free, Orange, Bouygues and
adopt the same technology to make Ad-serving through every boxes of French homes.
Obviously, if they do not convince others, they will do it alone” explains an Audio Director.
People interviewed in general want the development of a “lobby” to unify the
technology. Telecommunication operators have to pool their inventories. Canal+ for example
and Havas Media should develop their systems and gather a maximum of actors to show the
advantages of Programmatic on traditional Media.
“It can be positive, not for the biggest TV announcers, but for those who cannot afford
to be on TV” adds a Video Director.
If Canal+ wants to develop a unique technology, it has to show in what ways
Programmatic can be positive to the ensemble of actors, and Havas Media could help in that
Another technical issue for the development of Programmatic to traditional Media, is
the “fluidity” of the watch or listening. An Audio Director asks:
“It is a question to be studied: who do you replace? If we switch a film by another inside
the same announcer, there is no problem, it is inside the same group…”
It is necessary to develop the technology to unify the advertisements (advertisement
duration, number of screens…).
To fight against robots, rules can be found. Using safety brand tools as Spider.io, bought
by Google are a solution. Havas Media organizes itself to make pay the advertisement that is
really seen by humans. In the United States, the IAB has published 3 principles that they
recommend to adopt:
- To settle technologic tools that permit to fight against the fraud,
- The duty to precise to the announcer the source of the website on which advertisement
- To have transparency principles in the process of buying.
Another way to fight against online advertising fraud is to modify ways Havas Media
can measure advertising campaigns. KPIs as CPT (Cost Per Thousand) or CPC (Cost Per Click)
are very sensitive to fraud. The logic would be to compare the turnover generated by those
advertising campaigns. Robots can imitate more and more precisely human comportments but
they cannot reproduce real conversions (when an Internet user make an action to have more
information on a product or to buy it) or to generate turnover. Analysing turnover permits to
have a clear evaluation of the success of a campaign. By measuring turnover, Media Consultant
can understand the consumer engagement and advertising efficiency.
Stephane Hauser, general director of IAB in France explains that they “are not police
officers […]. It is essential to settle safeguards”.
As explained before, Law has to be changed and it is the gathering of every actors
(Media, announcers, Media agencies) which could change the French principles.
b- How to consider the Adblock software?
Except a legal restriction, Adblock is going to spread more. From 21 million users in
January 2010, we have reached the 181 million in January 201535
. It is a mainstream
phenomenon and it cannot be ignored. Native advertising, seems to be a good answer, because
native advertising content is impossible to identify and to remove. Native advertising is a form
of online advertising that furnish contents in the context of user experience. The Internet user
will have a content linked to its centre of interests and is included inside other contents.
Sponsored links of LinkedIn, Google or Twitter are examples. Another solutions is not using
third party data, which are detected by Adblock.
Websites can also react by creating subscription offerings. Subscribers are willing to
pay for quality digital content. It is also a solution to monetize their content. But this solution
is not possible for every publishers. Some of them ask Internet users to deactivate their Adblock
to see the content and make them understand that advertisement is necessary to their Business
Model. It is also possible to “monetize” an Internet user who has Adblock by making him
complete a short survey for example. Getting data is a way to compensate the loss of the
advertisement. Finally, blocking Adblockers can be a solution for Havas Media but it implies a
decrease of the website traffic.
Adblock has to be seen as a way to refine the audience. Adblock could be considered as
a form of trading desk. If people do not want to see any advertisement, it will be hard to prevent
it, except if a law is voted. Publishers have to use Adblock to have an audience more disposed
Patricio Robles (Tech reporter at Econsultancy), Seven ways publishers are addressing ad blocking,