1.
2013 State of the Industry
Programmatic + Premium
Current Practice & Future Trends
Digiday Publishing Summit, March 18, 2013
QasimSaifee, SVP Monetization Platform
Todd Rosenberg, VP Monetization Platform

2.
Methodology
Respondents
Digital Publishers 41% • Fielded Jan 25 - Feb 9, 2013
• Emailed to 35,000+ senior, digital media and
Media Buyers 31% marketing professionals
• 843 people in total responded – most ever!
Media Trader / Intermediary 28%

3.
Publishers and Buyers Are in the Game
Percent Who Trade Ads Programmatically
Digital Publishers 71%
Media Buyers 71%
Q: Do you make your digital display advertising inventory available on either a public or private exchange?
Q: Do you purchase digital display advertising programmatically?

4.
Majority of Publishers Saw Revenue Increase, Will Trade Even
More in the Year Ahead
Revenue: 12 Month Period Inventory: The Year Ahead
8% Down by 19%
21%
No Change
55%
58%
Up by 21%
Will rise 25%
37% 21%
No Change Will fall 19%
Q: How has programmatic selling affected your total Q: Given your experience with programmatic selling, how much more or less of
revenue in the last 12 months vs. the year your digital ad inventory do you anticipate will be sold programmatically in the
previous? coming year…?

5.
Buyers Purchased More Because of Programmatic
77% of Buyers Spent More on RTB Year over Year
Substantially More 30%
Somewhat More 47%
No Change 18%
SomeWhat Less 4%
Substantially Less 1%
Q: How much more or less of your inventory are you acquiring via programmatic trading now vs. 12 months ago?

6.
Does Programmatic Benefit Publishers and Buyers Equally?
Publishers Buyer
No 45% No 18%
Don't know 30% Don't know 44%
Yes 25% Yes 38%
In its current state, does programmatic selling benefit buyers and sellers equally? If
Q: no, who benefits more and why?

7.
Does Programmatic Benefit Both Sides Equally?
If not (benefit equally), why not?
• “Benefits buyers more, because it allows them to use their 1st-party data to identify
valuable audience and buy it cheaply -- because the seller does not know the value.”
• “It benefits buyers. Not because it can't benefit sellers, but because sellers just haven't
figured out how to use it to their benefit yet…”
• “The sell side still doesn't have the insight, controls and automation to really optimize yield
and manage an integrated direct/indirect strategy.”

8.
Programmatic Premium

9.
Publishers Are More Familiar with “Programmatic Premium”
Publishers Buyers
Yes
57% Yes 40%
No
43% No 60%
Q: Are you familiar with the term programmatic premium?

10.
Publishers Define “Programmatic Premium”
“Buying top tier premium publisher inventory via programmatic means.”
“A way to buy premium inventory through automation instead of through
a salesperson and a scanned IO, etc.”
“Premium inventory sold within structured terms but bought
programmatically.”
“Programmatically bought inventory where there is no distinction in the
inventory from direct-sold, just in the manner in which it is executed.”
Q: If you are familiar with programmatic premium, how would you define it?

11.
Buyers Define “Programmatic Premium”
“Ability to buy „premium‟ inventory (i.e. guaranteed, rich, by specific
position and run date) via an exchange.”
"No longer needing insertion orders to obtain premium inventory
from publishers. Usually a set floor price or minimum number of
quality impressions to buy in a month.”
"Defining audiences and objectives then system matches premium
publishers who can get to those audiences.”
Q: If you are familiar with programmatic premium, how would you define it?

12.
OpenX Defines “Programmatic Premium”
Direct relationships between buyers and sellers facilitated through
programmatic (automated) means. The two programmatic elements are:
- Automated discovery, negotiation and workflow.
- Buyer-defined rules governs the inventory that‟s purchased.
„Premium‟ is in the eye of the beholder.

13.
To Contribute More Premium Inventory, Publishers Want
Control Over Pricing, Relationships
Control CPM/Pricing 75%
Maintain Direct Relationships 67%
Control Ad Quality/Brand Safety 66%
Set Different Terms For Buyers 54%
Predictable Volume/Revenue Guarantees 54%
White List Buyers 47%
Maintain Data Security 47%
None of the Above 4%
Q: What would lead you to sell more premium inventory programmatically?

14.
Buyers Want More Data and New Inventory
More Data to Inform Bids 68%
Exposure to Inventory Not Currently Available 67%
Preferred Access to Inventory ("First Look") 57%
Maintain or Expand Direct Buying Relationships 39%
More Easily Negotiate Direct Buys 29%
Q: What would lead you to buy more premium inventory programmatically?

15.
“Programmatic” Trading of Premium Emerges
Publishers Buyers
Remnant Only 57% Remnant Only 12%
Both Premium & Remnant 35% Both Premium & Remnant 55%
No Distinction 6% No Distinction 16%
Premium Only 3% Premium Only 18%
Q: What types of inventory do you make available via programmatic selling?
Q: What types of inventory do you purchase via programmatic buying?

16.
Pain Points that Programmatic Premium Can Solve
Insertion order workflow 68%
Billing/Reconciliation 60%
Optimization 59%
Trafficking 52%
Price Negotiation 36%
Ad quality review 25%
None of the above 6%
Q: What elements of the traditional direct sales process do you think can be replaced
programmatically?

17.
What do you need
toexecute programmatically?

18.
Programmatic Requires the Right Platform
Does your ad server integrate If no, will you convert within the next If yes, are you more or less likely to
exchange capabilities? 12 months? engage in programmatic selling?
Yes 81% Highly likely 35% More likely 62%
Somewhat likely 35% No impact 33%
No 19%
Not at all likely 29% Less likely 5%
Do you use an ad server…that has exchange capabilities integrated into the platform? If you answered “yes” are you more
Q: or less likely to engage…? If you answered “no” how likely are you to convert to an ad sever that accommodates
programmatic…?

19.
Top Ad Tech Requirements for Publishers
Yield optimization 88%
Reporting Insights 87%
Set price floors by buyer or segment 79%
Transact directly w/terms 76%
Manage guaranteed and non-guaranteed 74%
Content optimization 73%
Sell inventory in real-time markets 68%
Overlay audience data 67%
Screen out certain buyers 58%
Q: When selecting an ad technology solution, which of the following are more important to you?

20.
Conclusions
• Programmatic trading is growing fast…but most publishers think it benefits
buyers more
• Significant levels of premium inventory now traded programmatically
• To continue to grow, programmatic needs to evolve to provide more controls
to publishers, and more quality inventory for buyers
• Publishers need to adopt the right ad technology platform to tap into growing
revenue from programmatic trading

21.
2013 State of the Industry
Programmatic + Premium
Current Practice & Future Trends
openx.com/insights/documentation