Programmatic: What Buyers and Sellers Should Know
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Future of Programmatic Workshop European Publisher Summit June 3, 2014 Matt O’Neill Unanimis
description
Programmatic advertising is here to stay, and is likely to dominate the majority of media trades on a volume and revenue level moving forward. This session with Matt O'Neill, head of supply and fulfillment at Unanimis, will discuss what buyers and sellers can do to optimize exchanges, change and build their audience and move away from standard ad units.
Transcript of Programmatic: What Buyers and Sellers Should Know
Future ofProgrammatic Workshop
European Publisher SummitJune 3, 2014
Matt O’NeillUnanimis
“The industry has gone 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.”
How we got here
• 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
Percent of Display
2011 2012 2013 2014 2015 2016 201711 19 28 34 41 47 5213
18
2529
3232 31
7662
47 3627 21 17
Programmatic - RTB Programmatic - Non-RTBNon-Programmatic
59%
Source: Magna Global RTB & Programmatic Report – Oct. 2013
Patterns + Tools
Solving a problem
Publisher
Network 1
Exchange 1
Network 2
Network 3
Network 4
Exchange 2?
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 & dataMagna Global Report October 2013
Programmatic – Great Unifier
ProgrammaticDisplay
Data
Social
Search
Content Marketin
g
Programmatic – Delivering scale
UAP / Search
Large Formats &
Video
Remnant Sponsorship
Scalability
Yield
Challenges, Risks & Threats
• CMO adoption & acceptance– Confusion holds back the BIG cash
Programmatic still isn’t well 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 con-cept but need to learn more about how to apply it to campaigns
I've heard the term but don't have a clear un-derstanding of it
Challenges, Risks & Threats
• CMO adoption & acceptance– Confusion holds back cash
• Increasing Fragmentation– Adds ‘right device’ to the equation
Top activities performed during simultaneous screen usage
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
US Newspaper Ad Revenue
2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
10,000
20,000
30,000
40,000
50,000
60,000
PrintOnlineTotal
http://stateofthemedia.org/2013/newspapers-stabilizing-but-still-threatened/newspapers-by-the-numbers/
Global Programmatic Advertising Pricing Trends
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
Key Opportunities
• Market Growth
A rising tide…
Key Opportunities
• Market Growth• Programmatic ‘Premium’ & PMPs• Open RTB & Deal ID
Selling Methods for Premium Pubs
Open Exchanges
Private Exchanges (PMP)
Fixed-Price Unreserved (DealID)
Fixed-Price Reserved, Automated
Direct, Manual
Key Opportunities
• Market Growth• Programmatic ‘Premium’ & PMPs• Open RTB & Deal ID• Mobile, Video, and Multi-device
Advertising
Cross Device & Mobile Targeting
Key Publisher Opportunities
• Market Growth• Programmatic ‘Premium’ & PMPs• Open RTB & Deal ID• Mobile, Video, and Multi-device
Advertising• Data Monetisation & Optimisation
It’s coming together
Data
Mobile
Premium
Programmatic
Delivering Data at Scale
Guardian 1st Party Data
Rubicon
Krux 3rd Party Data
Invite Media
£1.00
£0.75
£2.50
Key Opportunities
• Market Growth• Programmatic ‘Premium’ & PMPs• Open RTB & Deal ID• Mobile, Video, and Flow Advertising• Data Monetisation & Optimisation• Native & Brand Marketing
Native Advertising Growth
2012 2013 2014 2015 2016 2017£0.0
£0.5
£1.0
£1.5
£2.0
£2.5
£3.0
£3.5
£4.0
£4.5
£5.0
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Native SpendingPct. Change
Source: Business Insider, October 2013
An Ad by Any Other Name
Source: Online Publishers Association (OPA) Study in Partnership with Radar Research
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 ExpertsPremium 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
Whatever you call it, it is coming…
You want to know how I know?
THANK YOUMatt O’Neill
