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5 Myths of Programmatic Buying 
Brian Gleason, Managing Director, North America 
Digiday Programmatic Summit 2014
The Biggest Challenges Programmatic Faces According to 
Agencies 
A lack of understanding of what it is and how it works 
...
“CMO’s are waking up to the fact that IT can’t be 
treated like a back-office function anymore, the CIO is 
“It’s no longe...
“By embracing the complexity that 
comes with today’s intricate systems 
that knit together the programmatic 
audience buy...
WPP announced a 2.7% increase in 
rep“Aodrt-eadg erenvceyn eume ptloo y£m5.e4n7tb ins iant 2it0s1 4. 
highest level since ...
“Headline-writers will continue to 
proclaim the death of advertising, and 
marketing, and agencies – and they’ll 
still b...
“The opposite of programmatic 
is not premium. It’s manual.” 
k 
-Marissa Mayer, CEO, Yahoo
Buyer to Seller Programmatic Relationships 
Open Exchanges – Many: 
• Bid inflation 
• Quality concerns 
• Competition wit...
News Lifestyle 
30+ 
PUBLISHERS 
OVER 
350 
SITES 
MARKETPLACE 
INVENTORY 
Career 
Shop 
Entertainment 
Finance 
Tech 
Spo...
The Publisher ‘Waterfall’ 
Xaxis 
Marketplace 
PUBLISHER AD SERVER 
Other ‘Private 
Marketplace’ Buyers 
High Impact/Rich ...
Understanding 
CDlieantat 
Provider 
Platform 
(1st party) 
(3rd 2nd party) 
party)
It’s the Right Data Amplified 
It’s not BIG data – it’s the RIGHT data 
Big Data 
The Right Data
“Ad buying isn’t a core competency for most 
organizations, and neither is understanding and 
implementing complicated adv...
It Takes an Army 
18 15 41 33 45 
And That’s Just in North America… 
Ad Ops Product 
Dev 
Supply Analytics Strategy & 
Inv...
Programmatic Buying isn’t Easy… 
Inventory Data 
People 
Technology 
Brand Safety 
Viewable 
Non-Bot 
Premium 
Safety 
Pri...
Xaxis saved one of its top 5 
clients $7.61MM last year.
What is Xaxis? 
World’s largest programmatic media and technology platform 
DATA 
Unique proprietary Xaxis Audiences free ...
Thank You
5 Myths of Programmatic Buying
5 Myths of Programmatic Buying
5 Myths of Programmatic Buying
5 Myths of Programmatic Buying
5 Myths of Programmatic Buying
5 Myths of Programmatic Buying
5 Myths of Programmatic Buying
5 Myths of Programmatic Buying
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5 Myths of Programmatic Buying

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Sponsored by Xaxis, presented at the Digiday Programmatic Summit.

Published in: Marketing
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5 Myths of Programmatic Buying

  1. 1. 5 Myths of Programmatic Buying Brian Gleason, Managing Director, North America Digiday Programmatic Summit 2014
  2. 2. The Biggest Challenges Programmatic Faces According to Agencies A lack of understanding of what it is and how it works Source: eMarketer 2014
  3. 3. “CMO’s are waking up to the fact that IT can’t be treated like a back-office function anymore, the CIO is “It’s no longer marketing that drives business growth – it’s digital marketing…CMO’s and CIO’s becoming a strategic partner who is crucial to developing and executing marketing strategy” must recognize that technology and marketing are now inextricably tied. – McKinsey & Company By 2017, CMO’s will spend more - Forbes.com "Getting the CMO/CIO relationship right is critical for delivering seamless, omnichannel experiences on IT than their counterpart In the for past customers.” year, we’ve heard… CIO’s. -Brian Whipple, Senior Managing Director, “Developing a strong partnership between CIO’s and CMO’s is critical to successfully incorporating digital technology into the enterprise. A strong CIO–CMO partnership as one of the 5 critical factors to -Laura Accenture McLellan, Interactive. Gartner Analyst “In the next five years, digital will account for more than 75% of marketing budgets.” maximizing your technology investments. - Price Waterhouse Coopers -Adweek.com
  4. 4. “By embracing the complexity that comes with today’s intricate systems that knit together the programmatic audience buying landscape, we actually arm ourselves with more tools.” -Evan Hanlon, VP Strategy & Investment, Xaxis
  5. 5. WPP announced a 2.7% increase in rep“Aodrt-eadg erenvceyn eume ptloo y£m5.e4n7tb ins iant 2it0s1 4. highest level since 2001, agency stocks have hit all-time highs and U.S. ad spending this year is forecast to grow “[WPP is] fortunate to have some of the most celebrated agencies in at its fastest clip since 2004. the business, all of which U.S. agency revenue increased 3.7% to $39.1 billion in 2013, It's a good time to be in the agency game.” a record revenue. -Adage DataCenter Agency -Adage.com Report “Agencies are on track for another year of…growth in 2014.” -Adage.com continue to be successful, both creatively and commercially.” -Sir Martin Sorrell, CEO, WPP
  6. 6. “Headline-writers will continue to proclaim the death of advertising, and marketing, and agencies – and they’ll still be wrong.” “While traditional models persist, the agency sector cannot afford to disinvest without cross channel integration and the co-existence of old The Agency Model is NOT dead… but it is evolving. -Sir Martin Sorrell, CEO, WPP “WPP, a strong proponent of a and new. cross-agency "team" approach, has team leaders coordinating - Rob Norman, Chief Digital Officer, GroupM more than 35,000 employees on 35 of its largest accounts. -Adage.com
  7. 7. “The opposite of programmatic is not premium. It’s manual.” k -Marissa Mayer, CEO, Yahoo
  8. 8. Buyer to Seller Programmatic Relationships Open Exchanges – Many: • Bid inflation • Quality concerns • Competition with entire landscape Private Exchanges – Few: • Limited access only minimizes competition • Exclusiveness of invitation questioned Programmatic Direct – One: • Programmatic business relationship • Predefined inventory, price and priority
  9. 9. News Lifestyle 30+ PUBLISHERS OVER 350 SITES MARKETPLACE INVENTORY Career Shop Entertainment Finance Tech Sports
  10. 10. The Publisher ‘Waterfall’ Xaxis Marketplace PUBLISHER AD SERVER Other ‘Private Marketplace’ Buyers High Impact/Rich Ads Guaranteed Non-Guaranteed (Direct) Ad Exchanges/Open Auctions Ad Networks
  11. 11. Understanding CDlieantat Provider Platform (1st party) (3rd 2nd party) party)
  12. 12. It’s the Right Data Amplified It’s not BIG data – it’s the RIGHT data Big Data The Right Data
  13. 13. “Ad buying isn’t a core competency for most organizations, and neither is understanding and implementing complicated advertising technologies. [Taking it in-house] is a temporary phenomenon. Our view is after a year or two it will change. I question whether [clients] will be able to apply technology successfully.” – Sir Martin Sorrell, CEO, WPP
  14. 14. It Takes an Army 18 15 41 33 45 And That’s Just in North America… Ad Ops Product Dev Supply Analytics Strategy & Investment Trading & Ops = 152 people
  15. 15. Programmatic Buying isn’t Easy… Inventory Data People Technology Brand Safety Viewable Non-Bot Premium Safety Privacy Guarded Matching Engineers Analysts Data Scientists Strategists Creative Dynamic Storytelling Impactful Proprietary Walled Gardens Advantage Ubiquitous
  16. 16. Xaxis saved one of its top 5 clients $7.61MM last year.
  17. 17. What is Xaxis? World’s largest programmatic media and technology platform DATA Unique proprietary Xaxis Audiences free advertisers from the clutter EXPERTISE Dedicated team specializing in optimization, audience planning & analytics TECHNOLOGY $1bn investment in technology including: Market leading proprietary DMP – Turbine INVENTORY Exclusive Publisher agreements Bespoke Private Marketplaces Direct link to all major Exchanges
  18. 18. Thank You

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