The document discusses the outlook for programmatic advertising in 2015, highlighting that 55% of U.S. digital display ads will be bought programmatically, with significant growth expected in mobile and programmatic direct channels. Key trends include the proliferation of private marketplaces and an increased focus on ad quality, while investment in programmatic TV is anticipated but won't see widespread adoption this year. Additionally, marketers are urged to explore data beyond third-party cookies as they continue adapting to programmatic models.

1. © 2015 eMarketer Inc.
Made possible by
Programmatic Advertising 2015
Outlook
Lauren T. Fisher
Analyst
February 12, 2015

2. © 2015 eMarketer Inc.
Agenda:
 Defining “programmatic”
 Sizing US programmatic digital display investment
 Tracking key programmatic trends for 2015

3. © 2015 eMarketer Inc.
Defining
‘Programmatic Advertising’

4. © 2015 eMarketer Inc.
What is programmatic advertising?
 Programmatic advertising is an automated,
technology-driven method of buying, selling or fulfilling
ad placements

5. © 2015 eMarketer Inc.
Within
programmatic,
there are two
main
subcategories:
RTB and
programmatic
direct

6. © 2015 eMarketer Inc.
A word of
caution on
‘private
marketplaces’

7. © 2015 eMarketer Inc.
Sizing US Programmatic
Digital Display Ad
Spending

8. © 2015 eMarketer Inc.
In 2015, the spending scale will tip toward
programmatic:
55% of all
US digital display
ads will be bought
programmatically
in 2015, worth
$14.88 billion

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RTB will capture the lion’s share of
programmatic ad dollars, but programmatic
direct will gain quickly
8%  26%  42%
Expected portion of US programmatic digital display ad spending
flowing through programmatic direct channels in 2014,
2015 and 2016

10. © 2015 eMarketer Inc.
Dollars flowing into programmatic direct won’t
necessarily come from RTB
“ Looking at programmatic direct,
specifically the reservations and futures,
a lot of those ad dollars will come
from traditional ad buying
margins. Agencies and traditional buyers
are at a point where they’re looking to
simplify the buying process and want to
consolidate toolsets and streamline
processes in doing so.”
—Esco Strong, director of programmatic
advertising at Microsoft

11. © 2015 eMarketer Inc.
Within RTB,
the open
exchanges
will continue
to dominate,
though private
marketplaces
will see steep
growth

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More than
half of all US
programmatic
digital display
ad spend will
come from
mobile this
year

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Factors driving mobile programmatic growth
include:
 Broader ad spending growth across mobile display
 Large-scale programmatic adoption among those
best positioned for cross-device and mobile
 Improvements to incorporating mobile data into
demand-side platforms (DSPs) and exchanges
 Movement away from last-click attribution models

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Interest and chatter around programmatic video
will be significant this year …

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… but programmatic’s overall contribution to
video won’t match the hype
14.6%
Programmatic ad spending
allocated to video
28%
Total video ad spending
transacted programmatically

16. © 2015 eMarketer Inc.
Key Takeaways:
 2015 will be a tipping point for programmatic advertising
 Open exchanges will still thrive, but programmatic direct
will come of age
 More than half of all ad spending will come from mobile
 Most video ad dollars will remain locked in with
traditional direct sales

17. © 2015 eMarketer Inc.
Tracking Trends for 2015

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1. More private-type setups will proliferate

19. © 2015 eMarketer Inc.
Combined, US programmatic direct and private
marketplace spend will account for:
 43% of US
programmatic
digital display
ad spending in
2015
 58% in 2016

20. © 2015 eMarketer Inc.
2. Longstanding concerns about inventory
quality will finally be addressed

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To continue to thrive, the open markets will have
no choice but to embrace quality
“ The buy side is getting more
sophisticated when it comes to traffic
quality and viewability. To the extent
that the exchanges don’t make similar
investments in their own quality,
they’re going to find there’s less and
less demand out there. Ultimately,
they’ll find themselves priced out of
market.”
—John Murphy, VP of marketplace quality
at OpenX

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3. Marketers will look beyond third-party cookies
to other data sources
 CRM
 Cross-device
 Offline purchase
data

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4. Programmatic
advertising
won’t move
in-house
en masse

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5. Interest and talk around programmatic TV will
far outweigh investment

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Programmatic is more apt to come to TV in
stages vs. widespread adoption
 Addressable TV
 Linear TV
– Spot & scattered
– Upfront & national:
Data-driven
– Upfront & national:
True automation

26. © 2015 eMarketer Inc.
6. Where programmatic will make gains is with
connected TV and over-the-top (OTT) video
“ This year, we’ll see real
auctions running inside of many of
the apps that sit inside your Roku,
your Amazon Fire or your Apple TV.”
—Jeff Green, CEO of The Trade Desk

27. © 2015 eMarketer Inc.
7. As other devices and screens enter the mix,
expect programmatic to play a significant role

28. © 2015 eMarketer Inc.
Key Takeaways:
 Programmatic will tip the scale on ad spend this year
 Mobile will be a driving force
 Programmatic direct and private marketplaces will draw
new ad dollars to programmatic
 Improvements to ad quality will become mandatory
 Data will continue to prove critical to development
 Programmatic buying is coming to TV and wearables,
but 2015 won’t be the breakthrough year

29. Building Brands Through Programmatic
02.12.15

30. © 2015 Dstillery. All Rights Reserved. Proprietary and Confidential
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Programmatic Across Industries
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34. © 2015 eMarketer Inc.
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Lauren T. Fisher
Programmatic Advertising
2015 Outlook
 Digital Display Adverting: Nine Things to Know About in 2015
 2014 Programmatic Advertising Forecast: Digital Display Spending
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 CPG and Programmatic: The Biggest Ad Spenders Look to
Automate Buys, But on Their Terms
 Programmatic TV Advertising: Small Investment Today, Big
Opportunity Tomorrow
 Programmatic Video Advertising: Automated Platforms Begin to
Transform Digital’s Premium Marketplace