AOP Programmatic Workshop

May 21, 2014

One Chart to Understand

Programmatic

The industry has gone from a niche area of digital to a nearly agreed-upon bulwark of the future media system. The question now is just what shape it takes.

How we got here

• Opposite of Programmatic is Manual. • Spot solution Industry standard• What was once the optimization of

remnant unsold is becoming the de facto trading standard

• Not just display banners but mobile, video, rich media, and a robust data market

Projections & Stats• Global / US

– Programmatic 80% of digital display by 2017– Programmatic sales to surpass direct sales in next 18

months– $6Bln $32Bln between 2014 and 2017

• UK Specific– Currently programmatic is 17% of total UK Display

spend– Spend estimated to hit 30% by 2016

• Core areas of growth projected– Mobile & Cross Platform (flow)– Data & Audience– Content Marketing

• All roads are leading to programmatic

Programmatic – Great Unifier

Programmatic – Delivering scale

Scalability

Yield

Challenges, Risks & Threats

• CMO adoption & acceptance– Confusion holds back cash

Programmatic still isn’t well understood

Challenges, Risks & Threats

• CMO adoption & acceptance– Confusion holds back cash

• Increasing Fragmentation– Adds ‘right device’ to the equation

Top activities performed during simultaneous screen usage

Challenges, Risks & Threats

• CMO adoption & acceptance– Confusion holds back cash

• Increasing Fragmentation– Adds ‘right device’ to the equation

• Increased buy-side control– Race to bottom on CPMs & Display

Revenue

US Newspaper Ad Revenue

http://stateofthemedia.org/2013/newspapers-stabilizing-but-still-threatened/newspapers-by-the-numbers/

Global Programmatic Advertising Pricing Trends

Challenges, Risks & Threats

• CMO adoption & acceptance– Confusion holds back cash

• Increasing Fragmentation– Adds ‘right device’ to the equation

• Increased buy-side control– Race to bottom on CPMs & Display

Revenue

• Privacy concerns & Cookie Challenges– Always a unknown threat in the wings

Key Opportunities

• Market Growth

A rising tide…

Key Opportunities

• Market Growth• Programmatic ‘Premium’ & PMPs• Open RTB & Deal ID

Selling Methods for Premium Pubs

Key Opportunities

• Market Growth• Programmatic ‘Premium’ & PMPs• Open RTB & Deal ID• Mobile, Video, and Flow Advertising

Cross Device & Mobile Targeting

Key Opportunities

• Market Growth• Programmatic ‘Premium’ & PMPs• Open RTB & Deal ID• Mobile, Video, and Flow Advertising• Data Monetisation & Optimisation

It’s coming together

Key Opportunities

• Market Growth• Programmatic ‘Premium’ & PMPs• Open RTB & Deal ID• Mobile, Video, and Flow Advertising• Data Monetisation & Optimisation• Native & Brand Marketing

Whatever you call it, ‘native’ is coming…

You want to know how I know?

Today’s Agenda

• 2.15-2.20 - Welcome from AOP• 2.20-2.30 - Chair’s introduction• 2.30-2.50 - Bill Swanson, Pubmatic• 2.50-3.10 - Todd Tran, Nexage• 3.10-3.30 - Paul de la Nougerede, AOL HuffPo• 3.30-3.50 - Coffee • 3.50-4.10 - Sam Sherson, Guardian• 4.10-4.30 - Katie Eyton, MG OMD

Sessions & Presenters• Bill Swanson – PubMatic

– Demystifying Programmatic• Todd Tran - Nexage

– Mobile programmatic– how the mobile ecosystem differs from the desktop– what publishers have to do to be ready as advertisers switch budget from web to mobile– what traditional publishers need to know

• Paul de la Nougerede – AOL/HuffPo– will present how AOL Brands including the Huffington Post UK are approaching their

commercial strategy– importance of programmatic, covering the challenges and gurgles they face and the

rewards and opportunities of this approach.• Sam Sherson - Guardian

– Guardian's journey programmatic journey– upskilling the sales team and other cultural aspects– setting up their own private marketplaces, mobile, video– use of programmatic to extend bespoke creative solutions/branded content campaigns.

• Katie Eyton – MG OMD– Offering an agency perspective– what agencies want in their dealings with publishers and how that will change– impact of programmatic on mobile, video and native advertising