This document provides an overview of programmatic media and its relationship to mobile advertising. It defines programmatic media as the automated buying and selling of digital ad space through platforms. Programmatic allows for high audience segmentation, real-time campaign monitoring, and more agility. While technology enables programmatic, human strategy and decision making are still needed. The majority of US media buyers plan to increase their programmatic spending as more than two-thirds of US digital ads are expected to be bought programmatically in 2016. Mobile programmatic spending is growing rapidly and is projected to receive $15.5 billion in the US in 2016, driving the rapid adoption of programmatic media.

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E D T I O N 0 1 - 2 0 1 6
PROGRAMMATIC
MEDIA AND
MOBILE

2. Sponsored by

3. EXPEDIENT
Mobile Marketing Association - Latam
Diretor-Geral: Fabiano Destri Lobo
Diretora de Desenvolvimento de Negócios: Thais Schauff
Gerente de Membership Brasil: Graziela Mazzer
Country Manager Argentina: Soledad Moll
Country Manager Mexico: Carolina Mathieu
- fabiano@mmaglobal.com
- thais.schauff@mmaglobal.com
- graziela.mazzer@mmaglobal.com
- soledad.moll@mmaglobal.com
- carolina.mathieu@mmaglobal.com
Produção Playbook
Editor-chefe: José Saad Neto
Pesquisa e textos: Débora Yuri
Revisora: Adriana Silva
Projeto gráfico e diagramação: JB Junior

4. 4PROGRAMMATIC MEDIA AND MOBILE
CONTENTS
1. Introduction
2. What is programmatic media
3. Programmatic Media and Mobile
4. How does it really work
5. Inevitable move
7. Interview
Alberto Pardo “Banano”, Adsmovil
6. Large advertisers who believe on
mobile programmatic
05
07
12
17
22
32
24

5. 5PROGRAMMATIC MEDIA AND MOBILE
1. INTRODUCTION
This is the first of a series of educational material that we will distribute
along this year aiming to bring knowledge and promote the mobile
marketing market maturation for the Latin America advertising industry
The MMA Latam initiative, in line with the mission of the association
throughout the world of accelerating the transformation and innovation of
marketing through the mobile, draws attention to urgent and important
matters, that allow greater growth of the marketing ecosystem, and of
everyone involved.
We will produce a total of five Playbooks like this one, and three White
Papers. By the end of the year, all of them together will become the
MMA Mobile Yearbook Latam 2016, that will include consumer behavior
research in the use of mobile devices, assays of the growth of mobile
in Latin America, large assays of winning cases of the Smarties 2016,
interviews with industry leaders, and much more, besides the Playbooks
and White Papers. The MMA Mobile Yearbook Latam 2016 will be
distributed to MMA members only, as a PDF file and also through the
mobile app.

6. 6PROGRAMMATIC MEDIA AND MOBILE
On this first edition, we couldn’t have a different subject. The
programmatic media has broken barriers and advances as one of the
most intelligent ways to optimize media resources.
It’s growing and noticeable the number of large advertisers investing their
performance media budgets in programmatic models. And there are
several companies specialized in the end-point of this automation. The
expectation is that the mobile programmatic receive US$ 15.5 billion in
investments in the US in 2016, or 69% of the total for the programmatic
digital media.
If there were still doubts about the “year of mobile” announced for at
least 10 years, the numbers and opportunities of this growing market
show that much more than the year or the decade of mobile, we live in
the era of mobile, and the best is yet to come.”
Good reading!
Fabiano Destri Lobo
Managing Director Latam
Mobile Marketing Association (MMA)

7. 7PROGRAMMATIC MEDIA AND MOBILE
Programmatic media is the model where you buy and manage media
through digital platforms. These technologies connect large data
about the user to the abundant available inventory, which allows the
optimization of several processes in the advertising industry.
With the automation of the purchase process, negotiation is no longer
offline and may involve millions of publishers. Another programmatic
advantage is the capability of segmenting the audience, using Big Data,
finding and impacting specific targets.
Campaign monitoring also changes when this model is adopted. In real
time it is possible to measure what’s generating more results and focus
the investment – in specific groups of users, vehicles, devices used,
brand of the devices, locations, time of the day. The obligation of being
bonded to a pre-established number of impressions on a specific media
ceases to exist.
BENEFITS OF THE TECHNOLOGY
• Plurality of access to inventories and also to data and information
about consumers. And, for those who sell media, diversity of access
to advertisers.
• High capacity of segmentation. The use of data lets you find and
impact your target audience.
• Real-time results monitoring.
WHAT IS PROGRAMMATIC MEDIA
“In real time it is
possible to measure
what’s generating
more results
and focus the
investment”

8. 8PROGRAMMATIC MEDIA AND MOBILE
• More agility in decision-making.
• The possibility of correcting directions and making adjustments in
the middle of the campaign.
• Gain in scalability.
• Increased efficiency
• More transparency
Although technology us the basis of all programmatic purchase, it does
not substitute the human capacity of defining strategy and making
decisions.
“Platforms don’t work alone, since they’re not 100% automated. They
need someone’s input to raise the campaign performance”, says Daniel
Winter, head of programmatic at Adsmovil, company leader in mobile
solutions in Latin America and the Hispanic market in the USA. “After all
“Platforms don’t work
alone, since they’re
not 100% automated.
They need
someone’s input to
raise the campaign
performance”
source: Magna Global
76% 69%
50%
50%
31%24%
Programmatic Nonprogrammatic
Programmatic vs. Nonprogrammatic
Ad Spending Share Worldwide,
2014, 2015 & 2019
% of total

9. 9PROGRAMMATIC MEDIA AND MOBILE
“Free of the manual
execution, of
tightening screws,
brands and agencies
will have more”
professionals
available to think.”
technology is not able to fix something that it does not even recognize as
being faulty”.
But technology gives us more time to create sophisticated actions and
complex strategies, he ads.
“Free of the manual execution, of tightening screws, brands and
agencies will have more professionals available to think.
Programmatic
52%
Nonprogrammatic
48%
source: eMarketer
Note: 2014 programmatic ad spending = $10.1 bilion; 2014 digital display
ad spending = &19.6 bilion; programmatic ad spending was approximately
20% of 2014 digital ad spending ($49.5 bilion); includes banner ads, digital
video, rich media and sponsorship on desktop and mobile devices
Source: Interactive Advertising Bureau (IAB), “IAB Programmatic Revenue
Report 2014 Results” conducted by PrincewaterhouseCoopers (PwC) ans
sponsored by Google and PulsePoint, July 20, 2015
US Digital Display Ad Spending Share,
Programmatic vs. Nonprogrammatic, 2014
% of total

10. 10PROGRAMMATIC MEDIA AND MOBILE
source: Digiday
Yes, a significant
increase
43.0%
Yes, a moderate
increase
32.2%
Yes, a small
increase
13.5%
Unsure
6.5%
No
4.8%
US Media Buyer for Whom Increasing
Programmatic Ad Spending Is a Focus of Their
Future DigitalAdvertising Strategy, March 2015
% of respondents
Source: Digiday, “Premium Programmatic: Turning What If Into What is” in
association with Sonobi, March 26, 2015
“more than 2/3
of the digital ad
spaces in the USA
will be bought
in programmatic
way in 2016”
MIGRATION OF INVESTMENTS
The traditional media-buying model still dominates the digital market, but
several studies show to a rapid inversion of roles.
According to an assay by eMarketer presented in April, more than 2/3 of
the digital ad spaces in the USA will be bought in programmatic way in
2016. The projection is that the technological model surpasses US$ 22
billion in investments this year – a 40% growth in comparison to 2015.

11. 11PROGRAMMATIC MEDIA AND MOBILE
‘The projection
is that the
technological model
surpasses US$ 22
billion in investments
this year”
A research by the media company Digiday, with advertisers of the same
country, held in March 2015, showed that the great majority intended
to increase their spending with programmatic in their digital strategy.
For 43%, the increase would be significant, and 32.2% responded that
the expansion in share would take place moderately. Only 4.8% stated
that they had no intention of increasing their investment to the, relatively
new, model.
Even when the assays include digital markets not so mature like the
American one, they also indicate a rapid increase in programmatic
buying in the next years. Data from Magna Global, the research unit from
IPG Group, indicate that it will be leveled with traditional buying, in global
terms, by 2019.
THE MOBILE REVOLUTION
By the eMarketer analysis, the fact that we live in an era focused on
data, has been the great catalyzer of this migration. Another fact is
that advertisers are more comfortable with the use of technologies
considered essential to marketing. And there’s a third key factor: the
power of the mobile revolution.
The expectation is that mobile programmatic will receive US$ 15.5 billion
in investments, in the USA, in 2016, or 69% of the total amount intended
for programmatic media. And 2017 will be the year in which automated
purchase of ad spaces to advertise mobile videos, will surpass videos on
desktops, also in the American market: the projection is that it will reach
US$ 3.9 billion (or 51% of the total intended for programmatic), versus
US$ 3.7 billion on desktops. ●

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