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PROGRAMMATIC Marco Bertozzi, President Audience On Demand EMEA & North America Client Services @m_bertozzi TAKING OVER WTF Happened? THE WORLD

WTF is Programmatic? - WTF Programmatic UK, 11/11/14

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Marco Bertozzi's presentation from WTF Programmatic UK on November 11, 2014.

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  • 1. PROGRAMMATICTAKING OVERMarco Bertozzi,President Audience On Demand EMEA & NorthAmerica Client Services@m_bertozziWTFHappened?THE WORLD

2. A JOURNEY AWAY FROM CLICKS TO AUDIENCEWTF Happened? 2 3. RECESSION OF2001 SHAPED THEDIRECTION OFINTERNET ADVERTISINGWTF Happened? 3 4. Nothing importantA RECESSION THATMADE THE INTERNET PIVOThas ever been builtwithout irrationalWTF Happened? 4exuberance Fred Wilson | VC 5. SUCCESS DRIVEN BY CLICKS AND PAGE VIEWS Created a direct responseWTF Happened? 5offering from the web Every sales pitch was aboutdelivering clicks andperformance Google launched in UK tofurther amplify the sentiment Branding was ditched in favourof impressions and clicks Adserving was born to count 6. WITH REVENUECAME WEBSITESAND LOTS OF THEMWTF Happened? 6Number of websites 2000-2014 7. THE RISE OF THE AD NETWORKWTF Happened? 7Advertisers purchasemajority of inventorythrough publishers directlyNetworks begin topurchase and packagepremium placements2001 2003 2005Ad networksconsolidate longtailand remnantinventoryAdvanced databegins to fuel networksaudience segmentsAd networks procure large volumes ofbulk inventory, apply unique insights& data, and resell impressions at apremium rate Take on media risk for potentialupside of 80-90% profit margins Advertisers have little insightregarding where placementsrun or what is successful 8. BEHIND THE SCENES CAME THE EXCHANGESWTF Happened? 8Technology platforms where buyersand sellers directly transact, usingauction-based pricing to determineinventory distributionAd exchanges emergeto address marketplaceinefficiencies2005Started to power the Ad Networkmodel fuelling cheap, nontransparent selling to agencies 9. Agencies being pushed harder for salesat reduced price Publishers and Adnets challengedto deliver more for less Turned to adexchanges and useof advertiser and publisher firstparty dataQuality of impressions less of concern Margin first and foremostWTF Happened? 9 10. A SHIFT FROM SALESREPRESENTATION TOAGGREGATOR OF IMPRESSIONSWTF Happened? 10 11. FRUSTRATION BUILDING ON BUY AND SELL SIDEWTF Happened? 11Publisher frustration Low cpms achieved Valuable data leakage Value created in Ad Net Commoditisation of sitesBuy side frustration Lack of visibility Transparency issues Advertiser data abuse Need to drive efficiency Data sophistication 12. BUY SIDE TOOLS UP 2007 SEES MULTIPLE LAUNCHESDemand Side Platforms (DSPs) Media buying tools that allow active optimisationand dynamic biddingacross multiple ad exchanges & data inventorysources Enhanced technologies integratemedia, data, and learningalgorithms which allow morecomplicated executionsWTF Happened? 12Demand Side Platforms (DSPs) exposeexchange inventoryin single environment Started to power the Ad Networkmodel fuelling cheap, nontransparent selling to agencies2007Agency Trading Desks(ATDs) grow intocenters of audience-buyingexpertise 13. PROGRAMMATIC INDUSTRYLAUNCHESON 3 INGREDIENTSWTF Happened? 13Data TechnologyMediaProgrammaticingredients 14. LAUNCH OFTRADING DESKSANDNEW PUBLISHERRULES SAW AN INDUSTRYREVOLUTIONISEDWTF Happened? 14 15. LETS AGREE SOME TERMINOLOGYWTF Happened? 15Programmatic BuyingLeveraging data driventechnology to automate mediabuying in real time to maximiseefficiency.Real Time Bidding (RTB)Buying and selling digital adimpressions via real-timeauctions. Ad buyers candifferentially value eachindividual opportunity to buyan ad impression in real time.Addressable MediaLeveraging data todeliver messaging basedon known insights aboutindividuals.A channel or device isaddressable when thereis specific data availableto target specific users. 16. SO THAT TAKES US UP TO TODAY AND TOMORROWDemand Side Platforms(DSPs) exposeexchange inventory insingle environment2001 2003 2005 2007 2009 2011 TodayWTF Happened? 16Advertisers purchasemajority of inventorythrough publishersdirectlyNetworks begin topurchase and packagepremium placementsAd exchanges emergeto address marketplaceinefficienciesAgency Trading Desks(ATDs) grow into centresof audience-buyingexpertiseAd networksconsolidatelongtail andremnantinventoryAdvanced databegins to fuelnetworksaudiencesegmentsTechnology &data convergenceleads to Real TimeBidding/BuyingData Management Platforms(DMPs) evolve to managedata 17. AND TOMORROW BRINGS INCREDIBLE GROWTHWTF Happened? 1750-60% of all digitalwill be programmatic in 2yrs 18. SO WHY HASIT TAKEN OFF?WTF Happened? 18 19. DATA AND RTBHAVE SAVEDDIGITAL ADVERTISINGReversed declines in displayIndustry growinginnovation, investmentand moving upscaleWTF Happened? 19 20. ONLINE DISPLAYHID SERIOUSINEFFICIENCIESWTF Happened? 20 21. PUBLISHERS HAVEALLOWED DISPLAYTO BECOMECOMMODITISEDWTF Happened? 21 22. CLIENT LEDGROWTHWTF Happened? 22 23. MEDIA PLANNING AND BUYING V3A NEW CURRENCYWTF Happened? 23 24. BETTER TARGETINGACROSS CHANNELSAND DEVICESWTF Happened? 24 25. INNOVATIVE PRODUCTS Triggering Ads on 2nd Screens based on a TVWTF Happened? 25SignalClassical Brand Spots Single Spots Special Spots Products SpotsCompetitor Brand Spots Single Spots Special Spots Products SpotsContextual Verticals Individual 26. SO WHATS COMINGDOWN THE ROAD?WTF Happened? 26 27. 5 BIG THEMES TO WATCHWTF Happened? 27The rise of GIANTSOne Data Management Platform to rule them allENTER the non media companyConsolidation is acceleratingCross channel expertise 28. PROGRAMMATIC FOR YOUWTF Happened? 28 Be open mindedBe brave time to revolutionise Move fast Be inquisitive