Dr. Ionel Naftanaila / October 2015 / Milano

Programmatic and Data Fusion

• Programmatic is no longer an afterthought, but a key strategic driver, both on buy and sell-side • IAB Europe has a Programmatic Trading

Committee • We’re setting up an Education Committee

Programmatic Trading at IAB Europe

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• The Programmatic Trading White Paper - July 2014

• Road to Programmatic - July 2015

• Attitudes towards Programmatic Advertising - August 2015

Programmatic Trading at IAB Europe

3Road to ProgrammaticAn IAB Europe White Paper

Programmatic solutions (a framework)

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Risk

Control +

+

XProgrammaticproduct

Programmaticservice

V

Programmatic solutions (a framework)

5Control +

Risk

+

XProgrammaticproduct

• You pay for results (less risk) but have less control

• Core examples: re-targeting networks, audience buying

• Vendor takes (all) risk

Programmatic product

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Programmatic solutions (a framework)

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Risk

Control +

+

XProgrammaticproduct

Programmaticservice

• Pay for the full programmatic stack • Take full control - decide upon which

technologies to use, how campaigns are executed, etc.

• Retain transparency • Take (all) risk • With great power comes great responsibility!

Programmatic service

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Programmatic solutions (a framework)

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Risk

Control +

+

XProgrammaticproduct

Programmaticservice

V

• What data, capabilities, reasons, the company has to move to programmatic?

• What scale does the company have? • How do “they” make money?

• Are they a technology company • Are they a media company • Or a mix?

• Is the company happy to pay for results or does it need more granular control?

• How do we measure progress? 10

V A balance?

Roadblocks and barriers

Expertise

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ATTITUDES TOWARDS PROGRAMMATIC ADVERTISING

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6. The Future of Programmatic Investment Investment in programmatic is set to increase significantly Programmatic trading revenues and investments are set to increase, regardless of market or stakeholder type. Whilst agencies see themselves at the forefront of programmatic adoption, there is little difference in optimism regarding the expected increase of programmatic trading investments and revenues across all stakeholders as over 90% of advertisers, agencies and publishers surveyed cite an increase over the next 12 months. Indeed, more than 4 in 10 expect an increase of more than 31%. Success in programmatic demands the right expertise

There is a recognition that success in programmatic demands the right technology and the right expertise as both buyers and sellers feel that hiring and training people with the right skill set to drive programmatic is currently the top barrier to adoption. Further, publishers are concerned with more understanding to drive revenue as over half (55%) state that having a clear understanding of the impact of programmatic trading on total revenue as a barrier at this time.

ATTITUDES TOWARDS PROGRAMMATIC ADVERTISING

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6. The Future of Programmatic Investment Investment in programmatic is set to increase significantly Programmatic trading revenues and investments are set to increase, regardless of market or stakeholder type. Whilst agencies see themselves at the forefront of programmatic adoption, there is little difference in optimism regarding the expected increase of programmatic trading investments and revenues across all stakeholders as over 90% of advertisers, agencies and publishers surveyed cite an increase over the next 12 months. Indeed, more than 4 in 10 expect an increase of more than 31%. Success in programmatic demands the right expertise

There is a recognition that success in programmatic demands the right technology and the right expertise as both buyers and sellers feel that hiring and training people with the right skill set to drive programmatic is currently the top barrier to adoption. Further, publishers are concerned with more understanding to drive revenue as over half (55%) state that having a clear understanding of the impact of programmatic trading on total revenue as a barrier at this time.

Source:AttitudestowardsProgrammaticAdvertising,IABEurope,August2015

Impact on bottom line

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ATTITUDES TOWARDS PROGRAMMATIC ADVERTISING

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6. The Future of Programmatic Investment Investment in programmatic is set to increase significantly Programmatic trading revenues and investments are set to increase, regardless of market or stakeholder type. Whilst agencies see themselves at the forefront of programmatic adoption, there is little difference in optimism regarding the expected increase of programmatic trading investments and revenues across all stakeholders as over 90% of advertisers, agencies and publishers surveyed cite an increase over the next 12 months. Indeed, more than 4 in 10 expect an increase of more than 31%. Success in programmatic demands the right expertise

There is a recognition that success in programmatic demands the right technology and the right expertise as both buyers and sellers feel that hiring and training people with the right skill set to drive programmatic is currently the top barrier to adoption. Further, publishers are concerned with more understanding to drive revenue as over half (55%) state that having a clear understanding of the impact of programmatic trading on total revenue as a barrier at this time.

ATTITUDES TOWARDS PROGRAMMATIC ADVERTISING

14

6. The Future of Programmatic Investment Investment in programmatic is set to increase significantly Programmatic trading revenues and investments are set to increase, regardless of market or stakeholder type. Whilst agencies see themselves at the forefront of programmatic adoption, there is little difference in optimism regarding the expected increase of programmatic trading investments and revenues across all stakeholders as over 90% of advertisers, agencies and publishers surveyed cite an increase over the next 12 months. Indeed, more than 4 in 10 expect an increase of more than 31%. Success in programmatic demands the right expertise

There is a recognition that success in programmatic demands the right technology and the right expertise as both buyers and sellers feel that hiring and training people with the right skill set to drive programmatic is currently the top barrier to adoption. Further, publishers are concerned with more understanding to drive revenue as over half (55%) state that having a clear understanding of the impact of programmatic trading on total revenue as a barrier at this time.

Source:AttitudestowardsProgrammaticAdvertising,IABEurope,August2015

Technology

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ATTITUDES TOWARDS PROGRAMMATIC ADVERTISING

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6. The Future of Programmatic Investment Investment in programmatic is set to increase significantly Programmatic trading revenues and investments are set to increase, regardless of market or stakeholder type. Whilst agencies see themselves at the forefront of programmatic adoption, there is little difference in optimism regarding the expected increase of programmatic trading investments and revenues across all stakeholders as over 90% of advertisers, agencies and publishers surveyed cite an increase over the next 12 months. Indeed, more than 4 in 10 expect an increase of more than 31%. Success in programmatic demands the right expertise

There is a recognition that success in programmatic demands the right technology and the right expertise as both buyers and sellers feel that hiring and training people with the right skill set to drive programmatic is currently the top barrier to adoption. Further, publishers are concerned with more understanding to drive revenue as over half (55%) state that having a clear understanding of the impact of programmatic trading on total revenue as a barrier at this time.

ATTITUDES TOWARDS PROGRAMMATIC ADVERTISING

14

6. The Future of Programmatic Investment Investment in programmatic is set to increase significantly Programmatic trading revenues and investments are set to increase, regardless of market or stakeholder type. Whilst agencies see themselves at the forefront of programmatic adoption, there is little difference in optimism regarding the expected increase of programmatic trading investments and revenues across all stakeholders as over 90% of advertisers, agencies and publishers surveyed cite an increase over the next 12 months. Indeed, more than 4 in 10 expect an increase of more than 31%. Success in programmatic demands the right expertise

There is a recognition that success in programmatic demands the right technology and the right expertise as both buyers and sellers feel that hiring and training people with the right skill set to drive programmatic is currently the top barrier to adoption. Further, publishers are concerned with more understanding to drive revenue as over half (55%) state that having a clear understanding of the impact of programmatic trading on total revenue as a barrier at this time.

Source:AttitudestowardsProgrammaticAdvertising,IABEurope,August2015

Cost of technology

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ATTITUDES TOWARDS PROGRAMMATIC ADVERTISING

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6. The Future of Programmatic Investment Investment in programmatic is set to increase significantly Programmatic trading revenues and investments are set to increase, regardless of market or stakeholder type. Whilst agencies see themselves at the forefront of programmatic adoption, there is little difference in optimism regarding the expected increase of programmatic trading investments and revenues across all stakeholders as over 90% of advertisers, agencies and publishers surveyed cite an increase over the next 12 months. Indeed, more than 4 in 10 expect an increase of more than 31%. Success in programmatic demands the right expertise

There is a recognition that success in programmatic demands the right technology and the right expertise as both buyers and sellers feel that hiring and training people with the right skill set to drive programmatic is currently the top barrier to adoption. Further, publishers are concerned with more understanding to drive revenue as over half (55%) state that having a clear understanding of the impact of programmatic trading on total revenue as a barrier at this time.

ATTITUDES TOWARDS PROGRAMMATIC ADVERTISING

14

6. The Future of Programmatic Investment Investment in programmatic is set to increase significantly Programmatic trading revenues and investments are set to increase, regardless of market or stakeholder type. Whilst agencies see themselves at the forefront of programmatic adoption, there is little difference in optimism regarding the expected increase of programmatic trading investments and revenues across all stakeholders as over 90% of advertisers, agencies and publishers surveyed cite an increase over the next 12 months. Indeed, more than 4 in 10 expect an increase of more than 31%. Success in programmatic demands the right expertise

There is a recognition that success in programmatic demands the right technology and the right expertise as both buyers and sellers feel that hiring and training people with the right skill set to drive programmatic is currently the top barrier to adoption. Further, publishers are concerned with more understanding to drive revenue as over half (55%) state that having a clear understanding of the impact of programmatic trading on total revenue as a barrier at this time.

Source:AttitudestowardsProgrammaticAdvertising,IABEurope,August2015

• Auditing • Fees and markups • Ownership of data

Transparency

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• Programmatic holds a great promise: to help fixing some of industry’s pressing issues

• Quality (and ownership!) of data is key • Human resource probably matters more than ever • It’s a turning moment in the history of our industry.

Those who are not adapting will be left behind. • It’s not for everyone (or rather it does not apply in the

same way to all). Experimentation is key.

Some closing remarks

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@inaftanaila

Ionel Naftanaila

www.iabeurope.eu

Contact

Dr. Ionel Naftanaila, IAB Europe – naftanaila@iabeurope.eu