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5 Things about the Future of Programmatic - Digiday EU Publisher Summit 2014
The document discusses the evolution and future of programmatic advertising as a vital component of the media landscape, with forecasts predicting it will comprise 80% of digital display by 2017. Key challenges include CMO adoption, fragmentation, and privacy concerns, while opportunities lie in market growth and advancements in mobile, video, and data-driven strategies. The integration of programmatic and native advertising is anticipated to drive industry evolution towards more standardized and regulated practices.
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5 Things about the Future of Programmatic - Digiday EU Publisher Summit 2014
- 1. Future of Programmatic Workshop EuropeanPublisher Summit June 3, 2014 Matt O’Neill Unanimis
- 2. One Chart toUnderstand Programmatic 0 5 10 15 20 25 30 35 2006 2007 2008 2009 2010 2011 2012 2013 2014 Confusing Logo Farm Slides Marketing Cash Spent (in MM) Programmatic & RTB Conferences Use of WTF in Industry Headlines Display CPMs
- 3. “The industry hasgone from a niche area of digital to a nearly agreed-upon bulwark of the future media system. The question now is just what shape it takes.”
- 4. How we gothere • Optimization of network demand and remnant supply is becoming the de facto trading standard • Spot solution Industry standard • Not just display banners but mobile, video, rich media, and a robust data market
- 5. Percent of Display 11 19 2834 41 47 52 13 18 25 29 32 32 31 76 62 47 36 27 21 17 2011 2012 2013 2014 2015 2016 2017 Programmatic - RTB Programmatic - Non-RTB Non-Programmatic 59% Source: Magna Global RTB & Programmatic Report – Oct. 2013
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- 7. Solving a problem PublisherNetwork1 Exchange 1 Network 2 Network 3 Network 4 Exchange 2
- 9. Projections & Stats •Global / US – Programmatic 80% of digital display by 2017 – Programmatic sales to surpass direct sales in next 18 months – $6Bln $32Bln between 2014 and 2017 • UK Specific – Currently programmatic is 17% of total UK Display spend – Spend estimated to hit 30% by 2016 • Core areas of growth projected – Premium & Private – Mobile & Cross Platform (Flow) – Data & Audience – Content Marketing • All roads are leading to programmatic Sources: AOP Organizational census on programmatic & data Magna Global Report October 2013
- 10. Programmatic – GreatUnifier ProgrammaticDisplay Data Social Search Content Marketing
- 11. Programmatic – Deliveringscale UAP / Search Large Formats & Video Remnant Sponsorship Scalability Yield
- 12. Challenges, Risks &Threats • CMO adoption & acceptance – Confusion holds back the BIG cash
- 13. Programmatic still isn’twell understood 12% 23% 10%26% 29% I am unaware of this way of buying I understand it and use it to execute campaigns I understand it but haven't used it yet I understand the concept but need to learn more about how to apply it to campaigns
- 14. Challenges, Risks &Threats • CMO adoption & acceptance – Confusion holds back cash • Increasing Fragmentation – Adds ‘right device’ to the equation
- 15. Top activities performedduring simultaneous screen usage
- 16. Challenges, Risks &Threats • CMO adoption & acceptance – Confusion holds back cash • Increasing Fragmentation – Adds ‘right device’ to the equation • Increased buy-side control – Race to bottom on CPMs & Display Revenue
- 17. US Newspaper AdRevenue 0 10,000 20,000 30,000 40,000 50,000 60,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Print Online Total http://stateofthemedia.org/2013/newspapers-stabilizing-but-still-threatened/newspapers-by-the-numbers/
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- 19. Challenges, Risks &Threats • CMO adoption & acceptance – Confusion holds back cash • Increasing Fragmentation – Adds ‘right device’ to the equation • Increased buy-side control – Race to bottom on CPMs & Display Revenue • Privacy concerns & Cookie Challenges – Always a unknown threat in the wings
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- 22. Key Opportunities • MarketGrowth • Programmatic ‘Premium’ & PMPs • Open RTB & Deal ID
- 23. Selling Methods forPremium Pubs Open Exchanges Private Exchanges (PMP) Fixed-Price Unreserved (DealID) Fixed-Price Reserved, Automated Direct, Manual
- 24. Key Opportunities • MarketGrowth • Programmatic ‘Premium’ & PMPs • Open RTB & Deal ID • Mobile, Video, and Multi-device Advertising
- 25. Cross Device &Mobile Targeting
- 26. Key Publisher Opportunities •Market Growth • Programmatic ‘Premium’ & PMPs • Open RTB & Deal ID • Mobile, Video, and Multi-device Advertising • Data Monetisation & Optimisation
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- 29. Delivering Data atScale Guardian 1st Party Data Rubicon Krux 3rd Party Data Invite Media £1.00 £0.75 £2.50
- 30. Key Opportunities • MarketGrowth • Programmatic ‘Premium’ & PMPs • Open RTB & Deal ID • Mobile, Video, and Flow Advertising • Data Monetisation & Optimisation • Native & Brand Marketing
- 31. Native Advertising Growth 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% £0.0 £0.5 £1.0 £1.5 £2.0 £2.5 £3.0 £3.5 £4.0 £4.5 £5.0 20122013 2014 2015 2016 2017 Native Spending Pct. Change Source: Business Insider, October 2013
- 32. An Ad byAny Other Name Source: Online Publishers Association (OPA) Study in Partnership with Radar Research
- 33. Native & Programmatic Native Advertising •Standardization Is Coming • “Answering” the Scale Question • Expect Greater Regulation • Native will Be More Data-driven Programmatic Buying • Buyers will Grow into Tech Experts • Premium Programmatic will Be Key • Marrying Programmatic and Native • Direct Sales will Go Programmatic http://www.foliomag.com/2014/native-advertising-and-programmatic-buying-predictions-2014#.U4YAp_ldVQA
- 34. Whatever you callit, it is coming…
- 35. You want toknow how I know?
- 36.
Editor's Notes
- #11 Programmatic allows the scalable delivery of previously challening, complex ad strategeis – data, mobile, social, etc. are all activate by prgrmmatic trading. Programmatic unlocks the revenue potential of these marketing technoologies in a way that coldnt be done manually or through tradoionally direct channels.
- #12 High yield, highly scalable ads are no longer the exclusive province of direct, sponsorship, deals. Programmatic offers scale to the masses while at the same tie offering brand and editorial checks and balances. There are of course traps and challenges along the way – fraud. Viewabiity, transparency. Commoditization, etc. There is no one size fits all solution to programmatic. It is, after all, just the opposite of manual. It’s not all RTB. It’s not al about direct response. It’s not measured the same way.
- #13 Increasing Fragmentation - multi device & simultaneous usage Race to bottom on CPMs - while all these techs offer possible short term reversals of declining CPMs, will bid density be enough to keep up with exponential inventory growth? Will viewability & fraud offer scaricty to help drive CPMs up? Will we be able to charge enough of a premium to keep yield the same or possibly increase? Privacy concerns - We’ve dodged the initial bullets in short-sighted and ignorant privacy policy but I suspect this problem won’t go away and the use of increasbinlgy personalised levels of targeting via mobile geolocation and 3rd party sources may further exacerbate the problem. Blanket legistlation could significnatly harm the indusytry Device ID adoption Increased buy-side control
- #14 http://blogs.wsj.com/cmo/2014/03/31/marketers-want-more-transparency-from-media-agencies/ 126 marketers 23 Percent of CMOs understood programmatic advertising enough to use it in campaigns. 12 Percent of respondents hadn’t heard of it at all.
- #15 Increasing Fragmentation - multi device & simultaneous usage Race to bottom on CPMs - while all these techs offer possible short term reversals of declining CPMs, will bid density be enough to keep up with exponential inventory growth? Will viewability & fraud offer scaricty to help drive CPMs up? Will we be able to charge enough of a premium to keep yield the same or possibly increase? Privacy concerns - We’ve dodged the initial bullets in short-sighted and ignorant privacy policy but I suspect this problem won’t go away and the use of increasbinlgy personalised levels of targeting via mobile geolocation and 3rd party sources may further exacerbate the problem. Blanket legistlation could significnatly harm the indusytry Device ID adoption Increased buy-side control
- #16 http://marketingland.com/study-90-percent-use-multiple-screens-throughout-the-same-day-20386
- #17 Increasing Fragmentation - multi device & simultaneous usage Race to bottom on CPMs - while all these techs offer possible short term reversals of declining CPMs, will bid density be enough to keep up with exponential inventory growth? Will viewability & fraud offer scaricty to help drive CPMs up? Will we be able to charge enough of a premium to keep yield the same or possibly increase? Privacy concerns - We’ve dodged the initial bullets in short-sighted and ignorant privacy policy but I suspect this problem won’t go away and the use of increasbinlgy personalised levels of targeting via mobile geolocation and 3rd party sources may further exacerbate the problem. Blanket legistlation could significnatly harm the indusytry Device ID adoption Increased buy-side control
- #20 Increasing Fragmentation - multi device & simultaneous usage Race to bottom on CPMs - while all these techs offer possible short term reversals of declining CPMs, will bid density be enough to keep up with exponential inventory growth? Will viewability & fraud offer scaricty to help drive CPMs up? Will we be able to charge enough of a premium to keep yield the same or possibly increase? Privacy concerns - We’ve dodged the initial bullets in short-sighted and ignorant privacy policy but I suspect this problem won’t go away and the use of increasbinlgy personalised levels of targeting via mobile geolocation and 3rd party sources may further exacerbate the problem. Blanket legistlation could significnatly harm the indusytry Device ID adoption Increased buy-side control Add fraud/viewability/trust/transparency