Programmatic + Mobile: The Divide Between Buyers and Sellers Rob Kramer GM of Mobile, OpenX
Nov 22, 2014
Programmatic + Mobile: The Divide Between Buyers and Sellers
Rob Kramer
GM of Mobile, OpenX
Today’s Discussion
• Methodology and Participants
• Executive Summary
• Top Findings
Agenda
Methodology & Participants
Seller: 56%Buyer: 44%
Retargeter1%
Publisher41%
Agency27%
Ad Network9%
DSP8%
Brand7%
SSP4%
Ad Exchange3%Method
• Format: all responses collected via email survey
• Timeline: ran for three weeks from Feb 10 – Feb 28
• Incentive: chance to win $500 gift or free trip to DPS
Participants
Total – 478 Respondents
Seller – 265
Buyer – 213
• Programmatic continues rapid adoption with 82% of sellers and 83% of buyers reporting higher usage in 2013 vs. 2012
• Programmatic Buying on Mobile
– Audience targeting is a key area of disconnect between buyers and sellers with interest from buyers being 2x higher (74% vs. 34%).
– +50% of buyers cite mobile banners as most desirable formats, though publishers favor substantially more (81% vs. 56%).
• …Across Native and Video Formats
– Buyers and sellers agreed on definition of native but differ on who should standardize.
– Buyers place higher priority on conversions and time spent vs. traditional metrics such as PVs, impressions, and UVs.
– Pre-roll video is the popular format with buyers – by more than double that sellers find this format desirable to automate.
Executive Summary
In 2013, was your revenue from / spending on programmatic ad channels higher, lower or the same as it was in 2012?
Lower by %
Lower
Exactly the same
Higher by %
Higher
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
15%
2%
14%
55%
83%
21%
5%
13%
81%
82%
Sellers Buyers
Q. In 2013, was your spending on programmatic ad channels higher, lower orthe same as it was in 2012?
Top reasons why SELLERS find it challenging to make money via programmatic Mobile channels
0% 10% 20% 30% 40% 50% 60%
10%
25%
27%
31%
32%
48%Insufficient advertiser demand
Implementing multiple SDKs
Inability to provide targeting
Insufficient inventory
Inability to measure success
We do not find it hard to make money via programmatic
mobile channels
Q. Please select the top reasons why you find it challenging to make money viaprogrammatic MOBILE channels (select no more than 3):
Top reasons why BUYERS find it challenging to buy Mobile ads via programmatic channels
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
10%
16%
26%
27%
29%
44%
47%Lack of robust targeting
Inability to measure effectiveness
Poor performance/ROI
Limited ad formats
Not enough inventory
We do not find it hard to buy Mobile ads via programmatic channels
Too expensive
Q. Please select the top reasons why you find it challenging to buy Mobile ads viaprogrammatic channels (select no more than 3):
Most popular TARGETING parameters for the Mobile ads you sell / buy via programmatic channels
0% 10% 20% 30% 40% 50% 60% 70% 80%
42%
4%
51%
17%
74%
53%
12%
17%
31%
33%
37%
64%
Sellers Buyers
By content (site or app)
By audience
By device
By location (GPS-derived lat/long)
By operating system
Using retargeting
Q. Please select the most popular targeting parameters for the Mobile ads you buy or sell via programmatic channels (select no more than 3):
Most desirable FORMATS for programmatic mobile?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
3%
22%
16%
25%
56%
47%
31%
56%
0%
7%
13%
19%
20%
27%
35%
81%
Sellers Buyers
Banners
Interstitials
Rich media
Pre-roll videos
Native ads
IAB rising stars
Interstitial videos
Offer walls
Q. Please select the most popular ad formats for buying or selling Mobile ads via programmatic channels (select no more than 3):
Which descriptions best define NATIVE advertising?
0% 10% 20% 30% 40% 50% 60% 70% 80%
14%
21%
43%
43%
74%
19%
37%
45%
37%
69%
Sellers Buyers
Ad experience mimics that of the site’s or mobile app’s content
Custom content written by a publisher’s editorial team on behalf
of an advertiser
Ad unit endemic to the site or Mobile app
Custom content written by advertiser/agency
Non-standard ad units
Q. Please select the descriptions below that you believe best define Nativeadvertising (select no more than 3):
Who should be responsible for creating standardized ad units for NATIVE ads in programmatic channels?
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
20%
11%
42%
27%
14%
21%
26%
39%
Sellers Buyers
Publisher
Marketing Associations (e.g. IAB, MMA)
Ad technology provider
Advertiser
Q. Please select who should be responsible for creating standardized ad units for Native advertising via programmatic channels:
Ways you measure success for NATIVE advertising on Mobile:
0% 10% 20% 30% 40% 50% 60%
11%
10%
38%
53%
42%
53%
20%
41%
27%
29%
29%
41%
41%
41%
43%
51%
Sellers Buyers
Click-through rates
Impressions
Conversions (e.g. leads, installs)
Total number of social engagements (e.g. likes, shares, tweets)
Time spent on content
Brand lift
Pageviews
Unique visitors
Q. Please select the top 3 ways you and/or your clients measure success forNative advertising on Mobile devices:
Top challenges in selling / buying NATIVE ads on Mobile via programmatic channels:
0% 10% 20% 30% 40% 50% 60% 70%
21%
21%
32%
59%
59%
12%
27%
30%
46%
49%
Sellers Buyers
Scaling issues – native ads can’t be bought and sold across a multitude
of sites and devices (PC, mobile)
Native by definition is custom, therefore it can’t be automated
Brand-safe controls are not fully evolved
Automated native ads don’t have publisher oversight
Native ads aren’t targeted
Q13 Please select your top challenges for buying or selling Native ads on Mobile viaprogrammatic channels (select no more than 3):
Most desirable targeting parameters for BUYING / SELLING Video ads on Mobile via programmatic channels:
0% 10% 20% 30% 40% 50% 60% 70% 80%
1%
41%
10%
47%
40%
74%
19%
23%
26%
31%
43%
48%
Sellers Buyers
By audience
By page or mobile app content
By video content
By device
By location (GPS-derived lat/long)
By operating system
Q34 Please select the most popular targeting parameters for selling Video adson Mobile devices via programmatic channels (select no more than 3):
Most popular ad formats for BUYING / SELLING Video ads for Mobile devices via programmatic channels:
0% 10% 20% 30% 40% 50% 60% 70% 80%
7%
16%
42%
21%
53%
73%
4%
10%
26%
29%
38%
66%
Sellers Buyers
Pre-roll video
Interstitial video
Banners
Rich media
Mid-roll video
Post-roll video
Q. Please select the most popular ad formats for selling Video ads for Mobiledevices via programmatic channels (select no more than 3):
THANK YOU!
Rob Kramer
GM of Mobile, OpenX
@smartfuel