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PROGRAMMATIC:THE ESSENTIALSHow programmatic is transforming digital advertising
Brett PetersonAccount Lead – Southern Nevada
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LET’S DISCUSS…
A programmatic definition
How far our industry has come
Buying media: then and now
The mobile and video programmatic
scene
The latest challenges and
opportunities
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PROGRAMMATIC ADVERTISING IS
an automated technology infrastructure that enables media
buying.
OUR INDUSTRY IS TRANSFORMING
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A LOOK BACK
PRESENTPrivate marketplacesand monetizing data
2011RTB goesmainstream
2009Debut ofnative ads
2008YouTube unleashes pre-roll ads
2007Launch ofDSPs
2005Launch ofad exchanges
2005Facebook invents social ads
1990World Wide Web is created
1994First display ad is delivered on Hotwire.com
1996Launch of ad network
2000Google develops AdWords
1996Yahoo! Debuts search ads
2000Debut of mobile ads
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INDUSTRY TRENDSProgrammatic forecasts continue to increase
Growth forecasts in programmatic continue to play catch-up with annual corrections. eMarketer revised 2012,
2013 & 2014 estimates to better capture the rapid rise of advertiser investment.
2012 2013 2014 2015 2016$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$1.54$2.48 $3.12 $3.82 $4.53
$1.92$3.37
$4.66$6.15
$7.83
$4.24
$10.06
$14.88
$20.41
2012 Forecast2013 Forecast2014 Forecast
FORECASTED SPEND IN $BILLIONS
HOW MEDIA BUYING HAS CHANGED
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BEFORE PROGRAMMATIC
ADVERTISER(BRAND)
It was just advertisers and publishers.
PUBLISHER(WEBSITE)
AUDIENCE(AD VIEWER)
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We have technology platforms that leverage layers of data, making programmatic audience buying possible across a multitude of
publishers.
DSP SSP PUBLISHERADVERTISER AUDIENCE
TODAY
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RTB AUCTION TYPES
OPEN AUCTION PRIVATE AUCTION PREFERRED DEAL
$2.40eCPM
$1.95eCPM
$3.40eCPM $3.25
eCPM
$4.00eCPM
$5.00eCPM
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PREDICTIVE CRMSITE LISTCONTEXTUAL LOOKALIKESEARCH RETARGETING
SITE RETARGETING
FACEBOOK EXCHANGE
PRIVATE MARKETPLACE
AUDIENCE
TARGETING HAS CHANGED DRAMATICALLY
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PRICING HAS CHANGEDCPM VS. ECPM
1,000 IMPRESSIONS(Bulk)
1,811 IMPRESSIONS(Individual)
$5.00— CPM —
$5,000budget
$5,000budget
$2.76— eCPM —
Flat CPMS eCPMs
$0.0015
$0.0042
$0.0012$0.0036
$0.0113
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MOBILE & VIDEO TRENDS
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2013 2014 2015 2016$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$0.19
$0.71
$2.18
$3.84
US Programmatic Digital Video Ad Spending 2013- 2016
2015 WILL SEE LARGE BUDGET SHIFTSTO DIGITAL VIDEO
Programmatic digital video ad spending
% of total digital video ad spending
5%
US Programmatic Digital Video Ad Spending 2013-2016
12% of Programmatic Spending in
2014
Expected to hit
28% in 2015 and
40% in 2016
12%28%
40%
$BILLIONS, AND % OF TOTAL PROGRAMMATIC DIGITAL DISPLAY SPENDING
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2013 2014 2015 2016$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$1.33
$4.44
$8.36
$14.15
US Programmatic Digital Video Ad Spending 2013- 2016
MASSIVE MOVEMENT OF EYEBALLS TO ‘MOBILE’ SCREENS
Programmatic digital video ad spending
% of total digital video ad spending
31.3%
US Programmatic Mobile Display Ad Spending 2013-2016
44% of Programmatic Spending
in 2014
Expected to surpass desktop spending in 2015, hitting over
55%
25% of marketers plan to significantly increase mobile
and ad budget
$BILLIONS, AND % OF TOTAL PROGRAMMATIC DIGITAL DISPLAY SPENDING
44.1%
52.2%69.3%
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IT IS BECOMING IMPERATIVE THAT ADVERTISERS AND AGENCIES HAVE
“IN-HOUSE” PROGRAMMATIC ABILITIES
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CAN BE MINIMAL:
Basic media planningSimple retargeting campaigns
Inventory spot buys
OR HEAVY:
Full campaign managementData curation and management
Analytics linked optimization
CAN BE SELF-SERVE OR MANAGED
INVOLVEMENT
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Want media budget control
Want campaign transparency
Have dedicated staff for in-house trading
IN-HOUSE TRADING IS A GOOD FIT IF YOU:
DON’T GO IT ALONE FIND A PARTNER WHO CAN…
Arm your team with training and education
Serve as a strong and reliable DSP
Offer managed services when needed
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MORE CHANGES AHEAD….
WE’VE ONLY STARTED OUR PROGRAMMATIC JOURNEY…
Poised to see an upswing in programmatic TV buying
More marketers to buy both site-direct and RTB via programmatic technology
Coming soon from Centro…
Evolved software to offer a single-point solution for every digital media
buy: from bidding to billing
