eMarketer Webinar: Programmatic Advertising 2015 Outlook

© 2015 eMarketer Inc.

Made possible by

Programmatic Advertising 2015

Outlook

Lauren T. Fisher

Analyst

February 12, 2015


Agenda:

Defining “programmatic”

Sizing US programmatic digital display investment

Tracking key programmatic trends for 2015


Defining

‘Programmatic Advertising’


What is programmatic advertising?

Programmatic advertising is an automated,

technology-driven method of buying, selling or fulfilling

ad placements


Within

programmatic,

there are two

main

subcategories:

RTB and

programmatic

direct


A word of

caution on

‘private

marketplaces’


Sizing US Programmatic

Digital Display Ad

Spending


In 2015, the spending scale will tip toward

programmatic:

55% of all

US digital display

ads will be bought

programmatically

in 2015, worth

$14.88 billion


RTB will capture the lion’s share of

programmatic ad dollars, but programmatic

direct will gain quickly

8% 26% 42%

Expected portion of US programmatic digital display ad spending

flowing through programmatic direct channels in 2014,

2015 and 2016


Dollars flowing into programmatic direct won’t

necessarily come from RTB

“ Looking at programmatic direct,

specifically the reservations and futures,

a lot of those ad dollars will come

from traditional ad buying

margins. Agencies and traditional buyers

are at a point where they’re looking to

simplify the buying process and want to

consolidate toolsets and streamline

processes in doing so.”

—Esco Strong, director of programmatic

advertising at Microsoft


Within RTB,

the open

exchanges

will continue

to dominate,

though private

marketplaces

will see steep

growth


More than

half of all US

programmatic

digital display

ad spend will

come from

mobile this

year


Factors driving mobile programmatic growth

include:

Broader ad spending growth across mobile display

Large-scale programmatic adoption among those

best positioned for cross-device and mobile

Improvements to incorporating mobile data into

demand-side platforms (DSPs) and exchanges

Movement away from last-click attribution models


Interest and chatter around programmatic video

will be significant this year …


… but programmatic’s overall contribution to

video won’t match the hype

14.6%

Programmatic ad spending

allocated to video

28%

Total video ad spending

transacted programmatically


Key Takeaways:

2015 will be a tipping point for programmatic advertising

Open exchanges will still thrive, but programmatic direct

will come of age

More than half of all ad spending will come from mobile

Most video ad dollars will remain locked in with

traditional direct sales


Tracking Trends for 2015


1. More private-type setups will proliferate


Combined, US programmatic direct and private

marketplace spend will account for:

43% of US

programmatic

digital display

ad spending in

2015

58% in 2016


2. Longstanding concerns about inventory

quality will finally be addressed


To continue to thrive, the open markets will have

no choice but to embrace quality

“ The buy side is getting more

sophisticated when it comes to traffic

quality and viewability. To the extent

that the exchanges don’t make similar

investments in their own quality,

they’re going to find there’s less and

less demand out there. Ultimately,

they’ll find themselves priced out of

market.”

—John Murphy, VP of marketplace quality

at OpenX


3. Marketers will look beyond third-party cookies

to other data sources

CRM

Cross-device

Offline purchase

data


4. Programmatic

advertising

won’t move

in-house

en masse


5. Interest and talk around programmatic TV will

far outweigh investment


Programmatic is more apt to come to TV in

stages vs. widespread adoption

Addressable TV

Linear TV

– Spot & scattered

– Upfront & national:

Data-driven

– Upfront & national:

True automation


6. Where programmatic will make gains is with

connected TV and over-the-top (OTT) video

“ This year, we’ll see real

auctions running inside of many of

the apps that sit inside your Roku,

your Amazon Fire or your Apple TV.”

—Jeff Green, CEO of The Trade Desk


7. As other devices and screens enter the mix,

expect programmatic to play a significant role


Key Takeaways:

Programmatic will tip the scale on ad spend this year

Mobile will be a driving force

Programmatic direct and private marketplaces will draw

new ad dollars to programmatic

Improvements to ad quality will become mandatory

Data will continue to prove critical to development

Programmatic buying is coming to TV and wearables,

but 2015 won’t be the breakthrough year

Building Brands Through Programmatic

02.12.15

© 2015 Dstillery. All Rights Reserved. Proprietary and Confidential

We Use All Intelligence Available to Find Your Best Audiences

TRUE CROSS-PLATFORM CAMPAIGNS

1st Party

CRM

Location

Lifestyle

Device/Apps

3rd Party

Context

DATASOURCES

BRAND SIGNAL

+

+

+

+

REAL-TIMEFEEDBACK

HUMAN &AUTOMATED

OPIMIZATION

✓

✓

✓

✕

AUDIENCEEXPANSION

98% of Impressions Delivered to Audiences Scored within the Past 24 Hours


We Find the Unique Audiences That Perform at Scale

Action takers represent raw data

equivalent to homepage & conversion

page visits by offering. We use these

to build out our Act Alike models.

Prospect models indicate Dstillery

prospecting Act Alike models

(new people). As you can see, we can

achieve both scale and performance!

SCALE

PER

FO

RM

AN

CE

Our Science Goes Beyond First and Third-Party Targeting To Identify Unique High-Value Audiences

Third Party indicates 3rd party data

sets. This is included to determine

whether activating 3rd party

segments makes sense for this

campaign. Here it does not.

Mobile Infusion identifies key

locations relevant to your brand

and your audiences lifestyle.

Great for upper/mid funnel.


Dstillery's CrossWalk: Intelligent Device Matching

Continue the conversation with your audience wherever they choose to engage.

Dstillery Uses Good Science To Enable True Cross-Platform Campaigns For Marketers

RECENCY

FREQUENCY

POPULARITY

CrossWalk Device

Match Score Card

X ✓


Programmatic Across Industries

Drive online credit card applications for a leading credit card company. Dstillery was the top performer on the plan and received incremental spend 2x the initial budget.

71% DECREASE IN CPABRAND AWARENESSBRAND ENGAGEMENTDIRECT RESPONSE: CPA

BOTTOM

FUNNEL

MID FUNNEL

UPPER FUNNEL

3 week campaign telco campaign

during Black History Month

49% INCREASE IN VIDEO INTERACTION RATE 82%

RetailBELOW CPA GOAL


Learn more about digital marketing with an

eMarketer corporate subscription

Around 200 eMarketer reports are published

each year. Here are some recent reports you

may be interested in:

Q&A Session

Made possible by

You will receive an email tomorrow with a link to view the

deck and webinar recording.

To learn more: www.emarketer.com/products

800-405-0844 or [email protected]

Lauren T. Fisher

Programmatic Advertising

2015 Outlook

Digital Display Adverting: Nine Things to Know About in 2015

2014 Programmatic Advertising Forecast: Digital Display Spending

Broadens Beyond Open Exchanges

CPG and Programmatic: The Biggest Ad Spenders Look to

Automate Buys, But on Their Terms

Programmatic TV Advertising: Small Investment Today, Big

Opportunity Tomorrow

Programmatic Video Advertising: Automated Platforms Begin to

Transform Digital’s Premium Marketplace

eMarketer Webinar: Programmatic Advertising 2015 Outlook

Marketing

programmatic ad spending

programmatic video

programmatic ad dollars

us programmatic direct

programmatic direct

mobile programmatic

programmatic direct

traditional ad