Programmatic buying jan 2015 v1.0

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Programmatic Buying

High Impact Advertising Opportunity


Key Points

• Programmatic share of total digital ad display spending will rise from 45% in

2014 to 63% in 2016

• Build-out of private marketplaces and programmatic direct deals will drive

future growth for programmatic along with the boost from continued

maturation in both mobile and video advertising

• Open Exchanges (open auctions) account for the majority of RTB based ad

spends, though Private marketplaces will see much steeper growth over the

next few years

• Mobile will surpass desktop as early as next year, taking 56.2% of all

programmatic ad expenditure

• Programmatic video is in the early stages of adoption and implementation,

but investment is growing


Marketers are spending more money than ever to reach

online consumers

$51

BillionTotal spending on US digital advertising in 2014

$22

Billion

Total spending on US digital display advertising

in 2014 - 44% of total digital spending


Programmatic is big and getting bigger

$10.1

BillionProgrammatic digital display ad

spending in 2014

$20.4

Billion

Programmatic digital display ad

spending in 2016

Programmatic share of total digital ad display

spending will rise from 45% in 2014 to 63% in 2016


The programmatic family tree has a few key branches

Is inventory being

auctioned?

Real Time Bidding (RTB) Programmatic Direct

Is it a public auction? Is inventory guaranteed?

Preferred deal

(Unreserved fixed rate)

Programmatic

guaranteed

(Automated

guaranteed)

Private marketplace

(invitation only auction)

Open Exchange

(Open Auction)

YES NO

YES NO YES NO


Current state of Programmatic


US Programmatic Ad Spend tops $10 Billion in 2014, to

Double by 2016

US programmatic digital display ad spending will grow 137.1% to eclipse $10

billion this year, accounting for 45.0% of the US digital display advertising market

Note –

* Digital Display ads transacted via an API, including everything from publisher erected APIs to more standardized RTB technology. Includes

advertising that appears on desktop/laptop computers as well as mobile phones and tablets

# Includes banners, rich media, sponsorship, video and others

Source - eMarketer

US Programmatic Digital Display Ad Spending* 2013 – 2016 (In $ Bn)

• Build-out of private marketplaces

and programmatic direct deals will

drive future growth

• Boost with continued maturation in

both mobile and video advertising

#


RTB remains the dominant transaction method, at least for

now

US Programmatic Digital Display Ad Spending - Real-Time Bidding (RTB) *2013 – 2016 (In $ Bn)

Note – Includes advertising that appears on desktop/laptop computers as well as mobile phones and tablets.

* Includes programmatic ads that are transacted in real time, at the impression level

Source - eMarketer


Open Exchanges (open auctions) account for the majority of

RTB based ad spends

US Programmatic Digital Display Ad Spending* by Channel2013 – 2016 (In $ Bn)

Open Exchange * Private Marketplace #


* includes ads transacted through a public RTB auction in which any buyer / seller can participate, also known as an open auction or open marketplace

# includes ads transacted through an invitation-only RTB auction where one publisher or a select group of publishers invite a select number of buyers

to bid on its inventory

Source - eMarketer

• In 2014, open exchanges will account for almost 90% of US RTB digital display ad spending, totaling

$8.14 billion

• Private marketplaces will see much steeper growth over the next few years


3 factors behind the rapid rise in private marketplace

(invitation only auction) spending

Control Increased adoption and participation from publishers

Competitive

AdvantageGrowing demand from agencies and other large

scale buyers

Client

Demand

Efforts by ad-tech players to incorporate private

marketplace – type capabilities


Programmatic direct takes on RTB with increase in spends

by 2016

US Programmatic Digital Display Ad Spending* by Transaction Method2013 – 2016 (In $ Bn)

Real-Time Bidding (RTB) * Programmatic Direct #


* Includes programmatic ads that are transacted in real time, at the impression level

# includes all programmatic ads that are transacted as blocks of inventory using a non-auction based approach via an API

Source - eMarketer

• Significant growth coming from programmatic direct, which will reach $8.57 billion in spending by 2016 to

represent 42.0% of programmatic ad expenditure in the US—up from 8.0% this year


Programmatic moves further toward premium future

Channels where US advertising executives plan to increase

programmatic ad spending, June 2014(% of respondents)

Source – AOL Platforms Survey

• On the brand/agency side, the most important reasons to spend on programmatic were economic

efficiency, cited by more than 75% of respondents, while 66% found the targeting beneficial

• Organizational efficiency came in third at 57%. On the publisher side, the top three were the same, but

more tightly grouped and with targeting slightly ahead


Programmatic – Mobile & Video


Mobile will overtake the desktop in programmatic too, only

sooner

US Programmatic Digital Display Ad Spending* by Device2013 – 2016 (In $ Bn)

Desktop / Laptop Mobile / Tablets

Note – * Digital Display ads transacted via an API, including everything from publisher erected APIs to more standardized RTB technology

Source - eMarketer

• Mobile will surpass desktop as early as next year, taking 56.2% of all programmatic ad expenditure

• This trend is consistent with the digital display ad market overall, which has shifted to mobile rapidly


US programmatic video is in the early stages of adoption

and implementation, but investment is growing

US Programmatic Digital Video Ad Spending2013 – 2016 (In $ Bn)

• Today publishers largely guard high-value ad inventory such as TV and premium digital video content,

though we expect a greater number of ads sold programmatically in these formats starting in 2015

• “Those who do decide to turn to programmatic, however, are likely to do so via programmatic direct,

where they can still secure inventory guarantees

Note – Digital Display ads transacted via an API, including everything from publisher erected APIs to more standardized RTB technology

Includes advertising that appears on desktop/laptop computers as well as mobile phones and tablets.

Source - eMarketer


Success Factors


Connect 1:1 with Audiences

How marketers are doing it?

Across billions of impressions

in real time, globally

By design, programmatic is able to deliver personalized messages at scale in real time

Wide Audience Reach

Buying decisions made in

milliseconds

18ms

Southwest Airlines uses programmatic to

reach new customers, spread awareness

for new flight routes and drive sales.

In a recent campaign, they used custom

first party data to reach millions of target

customers in top performing regional

markets, with their agency Camelot

Communications


Embrace Cross - Screen


Talk Talk used HTML5 to increase reached

across screens while reducing eCPA by

12%

Programmatic is aiding marketers in their rapid shift to cross-screen advertising

Rapid growth in mobile

programmatic

Mobile display ads bought

programmatically

297%Projected industry mobile

programmatic growth in 2014


Engage with Video


Nothing connects like video and programmatic can make it more powerful

Sony Mobile is investing more in

programmatic video after seeing positive

results on their branding efforts for the

launch of the new mobile Xperia Z1s

Precision targeting, combined with the

sight and motion, programmatic video is

integral Netflix’s content marketing efforts

Upsurge in programmatic video

spend

Access to video inventory has

sky-rocketed

4X growthIn impressions for videos

transacted programmatically

427% spend increasey-o-y on non YouTube sites across

Google properties


Measure what Matters

Programmatic buying is a leap forward to integrated marketing and measurement


Uses viewability as a metric to understand

who saw their ad

Gained Insight -

15% higher viewability

with programmatic

Centralized technology and data on

DoubleClick across channels

Gained Insight -

30% Increase in

conversions

Measuring what matters is

finally possible with new tools

Programmatic helps address

media fragmentation

4.7Average number of digital platforms

used by advertisers to address

cross channel needs


Contact Us – [email protected]

Visit Website – www.zincx.com

mailto:[email protected]

http://www.zincx.com/

Technology

Programmatic buying jan 2015 v1.0