Programmatic + Mobile: The Divide Between Buyers and Sellers

Rob Kramer

GM of Mobile, OpenX

Today’s Discussion

• Methodology and Participants

• Executive Summary

• Top Findings

Agenda

Methodology & Participants

Seller: 56%Buyer: 44%

Retargeter1%

Publisher41%

Agency27%

Ad Network9%

DSP8%

Brand7%

SSP4%

Ad Exchange3%Method

• Format: all responses collected via email survey

• Timeline: ran for three weeks from Feb 10 – Feb 28

• Incentive: chance to win $500 gift or free trip to DPS

Participants

Total – 478 Respondents

Seller – 265

Buyer – 213

• Programmatic continues rapid adoption with 82% of sellers and 83% of buyers reporting higher usage in 2013 vs. 2012

• Programmatic Buying on Mobile

– Audience targeting is a key area of disconnect between buyers and sellers with interest from buyers being 2x higher (74% vs. 34%).

– +50% of buyers cite mobile banners as most desirable formats, though publishers favor substantially more (81% vs. 56%).

• …Across Native and Video Formats

– Buyers and sellers agreed on definition of native but differ on who should standardize.

– Buyers place higher priority on conversions and time spent vs. traditional metrics such as PVs, impressions, and UVs.

– Pre-roll video is the popular format with buyers – by more than double that sellers find this format desirable to automate.

Executive Summary

In 2013, was your revenue from / spending on programmatic ad channels higher, lower or the same as it was in 2012?

Lower by %

Lower

Exactly the same

Higher by %

Higher

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

15%

2%

14%

55%

83%

21%

5%

13%

81%

82%

Sellers Buyers

Q. In 2013, was your spending on programmatic ad channels higher, lower orthe same as it was in 2012?

Top reasons why SELLERS find it challenging to make money via programmatic Mobile channels

0% 10% 20% 30% 40% 50% 60%

10%

25%

27%

31%

32%

48%Insufficient advertiser demand

Implementing multiple SDKs

Inability to provide targeting

Insufficient inventory

Inability to measure success

We do not find it hard to make money via programmatic

mobile channels

Q. Please select the top reasons why you find it challenging to make money viaprogrammatic MOBILE channels (select no more than 3):

Top reasons why BUYERS find it challenging to buy Mobile ads via programmatic channels

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

10%

16%

26%

27%

29%

44%

47%Lack of robust targeting

Inability to measure effectiveness

Poor performance/ROI

Limited ad formats

Not enough inventory

We do not find it hard to buy Mobile ads via programmatic channels

Too expensive

Q. Please select the top reasons why you find it challenging to buy Mobile ads viaprogrammatic channels (select no more than 3):

Most popular TARGETING parameters for the Mobile ads you sell / buy via programmatic channels

0% 10% 20% 30% 40% 50% 60% 70% 80%

42%

4%

51%

17%

74%

53%

12%

17%

31%

33%

37%

64%

Sellers Buyers

By content (site or app)

By audience

By device

By location (GPS-derived lat/long)

By operating system

Using retargeting

Q. Please select the most popular targeting parameters for the Mobile ads you buy or sell via programmatic channels (select no more than 3):

Most desirable FORMATS for programmatic mobile?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

3%

22%

16%

25%

56%

47%

31%

56%

0%

7%

13%

19%

20%

27%

35%

81%

Sellers Buyers

Banners

Interstitials

Rich media

Pre-roll videos

Native ads

IAB rising stars

Interstitial videos

Offer walls

Q. Please select the most popular ad formats for buying or selling Mobile ads via programmatic channels (select no more than 3):

Which descriptions best define NATIVE advertising?

0% 10% 20% 30% 40% 50% 60% 70% 80%

14%

21%

43%

43%

74%

19%

37%

45%

37%

69%

Sellers Buyers

Ad experience mimics that of the site’s or mobile app’s content

Custom content written by a publisher’s editorial team on behalf

of an advertiser

Ad unit endemic to the site or Mobile app

Custom content written by advertiser/agency

Non-standard ad units

Q. Please select the descriptions below that you believe best define Nativeadvertising (select no more than 3):

Who should be responsible for creating standardized ad units for NATIVE ads in programmatic channels?

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

20%

11%

42%

27%

14%

21%

26%

39%

Sellers Buyers

Publisher

Marketing Associations (e.g. IAB, MMA)

Ad technology provider

Advertiser

Q. Please select who should be responsible for creating standardized ad units for Native advertising via programmatic channels:

Ways you measure success for NATIVE advertising on Mobile:

0% 10% 20% 30% 40% 50% 60%

11%

10%

38%

53%

42%

53%

20%

41%

27%

29%

29%

41%

41%

41%

43%

51%

Sellers Buyers

Click-through rates

Impressions

Conversions (e.g. leads, installs)

Total number of social engagements (e.g. likes, shares, tweets)

Time spent on content

Brand lift

Pageviews

Unique visitors

Q. Please select the top 3 ways you and/or your clients measure success forNative advertising on Mobile devices:

Top challenges in selling / buying NATIVE ads on Mobile via programmatic channels:

0% 10% 20% 30% 40% 50% 60% 70%

21%

21%

32%

59%

59%

12%

27%

30%

46%

49%

Sellers Buyers

Scaling issues – native ads can’t be bought and sold across a multitude

of sites and devices (PC, mobile)

Native by definition is custom, therefore it can’t be automated

Brand-safe controls are not fully evolved

Automated native ads don’t have publisher oversight

Native ads aren’t targeted

Q13 Please select your top challenges for buying or selling Native ads on Mobile viaprogrammatic channels (select no more than 3):

Most desirable targeting parameters for BUYING / SELLING Video ads on Mobile via programmatic channels:

0% 10% 20% 30% 40% 50% 60% 70% 80%

1%

41%

10%

47%

40%

74%

19%

23%

26%

31%

43%

48%

Sellers Buyers

By audience

By page or mobile app content

By video content

By device

By location (GPS-derived lat/long)

By operating system

Q34 Please select the most popular targeting parameters for selling Video adson Mobile devices via programmatic channels (select no more than 3):

Most popular ad formats for BUYING / SELLING Video ads for Mobile devices via programmatic channels:

0% 10% 20% 30% 40% 50% 60% 70% 80%

7%

16%

42%

21%

53%

73%

4%

10%

26%

29%

38%

66%

Sellers Buyers

Pre-roll video

Interstitial video

Banners

Rich media

Mid-roll video

Post-roll video

Q. Please select the most popular ad formats for selling Video ads for Mobiledevices via programmatic channels (select no more than 3):

THANK YOU!

Rob Kramer

GM of Mobile, OpenX

@smartfuel