Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

WTF is Programmatic? - WTF Programmatic UK, 11/11/14

7,191 views

Published on

Marco Bertozzi's presentation from WTF Programmatic UK on November 11, 2014.

Published in: Marketing

WTF is Programmatic? - WTF Programmatic UK, 11/11/14

  1. 1. PROGRAMMATIC TAKING OVER Marco Bertozzi, President Audience On Demand EMEA & North America Client Services @m_bertozzi WTF Happened? THE WORLD
  2. 2. A JOURNEY AWAY FROM CLICKS TO AUDIENCE WTF Happened? 2
  3. 3. RECESSION OF 2001 SHAPED THE DIRECTION OF INTERNET ADVERTISING WTF Happened? 3
  4. 4. Nothing important A RECESSION THAT MADE THE INTERNET PIVOT has ever been built without irrational WTF Happened? 4 exuberance – Fred Wilson | VC
  5. 5. SUCCESS DRIVEN BY CLICKS AND PAGE VIEWS ► Created a direct response WTF Happened? 5 offering from the web ► Every sales pitch was about delivering clicks and performance ► Google launched in UK to further amplify the sentiment ► Branding was ditched in favour of impressions and clicks ► Adserving was born to count
  6. 6. WITH REVENUE CAME WEBSITES AND LOTS OF THEM… WTF Happened? 6 Number of websites 2000-2014
  7. 7. THE RISE OF THE AD NETWORK WTF Happened? 7 Advertisers purchase majority of inventory through publishers directly Networks begin to purchase and package premium placements 2001 2003 2005 Ad networks consolidate longtail and remnant inventory Advanced data begins to fuel networks’ audience segments Ad networks procure large volumes of bulk inventory, apply unique insights & data, and resell impressions at a premium rate ► Take on media risk for potential upside of 80-90% profit margins ► Advertisers have little insight regarding where placements run or what is successful
  8. 8. BEHIND THE SCENES CAME THE EXCHANGES WTF Happened? 8 Technology platforms where buyers and sellers directly transact, using auction-based pricing to determine inventory distribution Ad exchanges emerge to address marketplace inefficiencies 2005 Started to power the Ad Network model – fuelling cheap, non transparent selling to agencies
  9. 9. ►Agencies being pushed harder for sales at reduced price ► Publishers and Adnets challenged to deliver more for less ► Turned to adexchanges and use of advertiser and publisher first party data ►Quality of impressions less of concern ► Margin first and foremost WTF Happened? 9
  10. 10. A SHIFT FROM SALES REPRESENTATION TO AGGREGATOR OF IMPRESSIONS WTF Happened? 10
  11. 11. FRUSTRATION BUILDING ON BUY AND SELL SIDE WTF Happened? 11 Publisher frustration ► Low cpms achieved ► Valuable data leakage ► Value created in Ad Net ► Commoditisation of sites Buy side frustration ► Lack of visibility ► Transparency issues ► Advertiser data abuse ► Need to drive efficiency ► Data sophistication
  12. 12. BUY SIDE TOOLS UP – 2007 SEES MULTIPLE LAUNCHES Demand Side Platforms (DSPs) ► Media buying tools that allow active optimisation and dynamic bidding across multiple ad exchanges & data inventory sources ► Enhanced technologies integrate media, data, and learning algorithms which allow more complicated executions WTF Happened? 12 Demand Side Platforms (DSPs) expose exchange inventory in single environment ► Started to power the Ad Network model – fuelling cheap, non transparent selling to agencies 2007 Agency Trading Desks (ATDs) grow into centers of audience-buying expertise
  13. 13. PROGRAMMATIC INDUSTRY LAUNCHES ON 3 INGREDIENTS WTF Happened? 13 Data Technology Media Programmatic ingredients
  14. 14. LAUNCH OF TRADING DESKS AND NEW PUBLISHER RULES SAW AN INDUSTRY REVOLUTIONISED WTF Happened? 14
  15. 15. LET’S AGREE SOME TERMINOLOGY WTF Happened? 15 Programmatic Buying Leveraging data driven technology to automate media buying in real time to maximise efficiency. Real Time Bidding (RTB) Buying and selling digital ad impressions via real-time auctions. Ad buyers can differentially value each individual opportunity to buy an ad impression in real time. Addressable Media Leveraging data to deliver messaging based on known insights about individuals. A channel or device is addressable when there is specific data available to target specific users.
  16. 16. SO THAT TAKES US UP TO TODAY AND TOMORROW Demand Side Platforms (DSPs) expose exchange inventory in single environment 2001 2003 2005 2007 2009 2011 Today WTF Happened? 16 Advertisers purchase majority of inventory through publishers directly Networks begin to purchase and package premium placements Ad exchanges emerge to address marketplace inefficiencies Agency Trading Desks (ATDs) grow into centres of audience-buying expertise Ad networks consolidate longtail and remnant inventory Advanced data begins to fuel networks’ audience segments Technology & data convergence leads to Real Time Bidding/Buying Data Management Platforms (DMPs) evolve to manage data
  17. 17. AND TOMORROW BRINGS INCREDIBLE GROWTH WTF Happened? 17 50-60% of all digital will be programmatic in 2yrs
  18. 18. SO WHY HAS IT TAKEN OFF? WTF Happened? 18
  19. 19. DATA AND RTB HAVE SAVED DIGITAL ADVERTISING Reversed declines in display Industry growing innovation, investment and moving upscale WTF Happened? 19
  20. 20. ONLINE DISPLAY HID SERIOUS INEFFICIENCIES WTF Happened? 20
  21. 21. PUBLISHERS HAVE ALLOWED DISPLAY TO BECOME COMMODITISED WTF Happened? 21
  22. 22. CLIENT LED GROWTH WTF Happened? 22
  23. 23. MEDIA PLANNING AND BUYING V3 A NEW CURRENCY WTF Happened? 23
  24. 24. BETTER TARGETING ACROSS CHANNELS AND DEVICES WTF Happened? 24
  25. 25. INNOVATIVE PRODUCTS ► Triggering Ads on 2nd Screens based on a TV WTF Happened? 25 Signal Classical ► Brand Spots ► Single Spots ► Special Spots ► Products Spots Competitor ► Brand Spots ► Single Spots ► Special Spots ► Products Spots Contextual ► Verticals ► Individual
  26. 26. SO WHAT’S COMING DOWN THE ROAD? WTF Happened? 26
  27. 27. 5 BIG THEMES TO WATCH WTF Happened? 27 The rise of GIANTS One Data Management Platform to rule them all ENTER the non media company Consolidation is accelerating Cross channel expertise
  28. 28. PROGRAMMATIC FOR YOU WTF Happened? 28 ► Be open minded ►Be brave – time to revolutionise ► Move fast ► Be inquisitive

×