© 2016 IHS
Information | Analytics | Expertise
IT’S A PROGRAMMATIC WORLD:
HOW ADVERTISING TECHNOLOGY CHANGES
THE TELEVISION INDUSTRY, AND WHO WINS
ITS FUTURE.
IHS TECHNOLOGY
Cable Congress, Warsaw, June 2016
© 2016 IHS
A different way of thinking about advertising
Source: Wellcome Library, London. Bills of Mortality from August 15 - 22, 1665. High death rate from plague. 1665. Under CC BY.40
© 2016 IHS
Across all formats, programmatic will represent over half of all
online advertising revenue by 2019 globally
31%33%
21%
29%
55%
63%
51%
54%
0%
10%
20%
30%
40%
50%
60%
70%
Desktop Banner Display Mobile Banner Display Desktop Video Mobile Video
World: Programmatic share of net ad revenue by format
2015 2019
© 2016 IHS
Panel Outline: Five Themes
1. The Programmatic
Promise
2. Programmatic
Confusions
3. Programmatic
Reality
4. Programmatic
Empires
5. Programmatic
Future(s)
© 2016 IHS
• Panelists:
• David Downey, CEO, INVIDI Technologies Corporation
• Ofir Daniel, Director of Entertainment Solutions, Amdocs
• Sarah Kiefer, Director of Sales Development, Ooyala
• Léon Siotis, Managing Director, UK and Southern, SpotX
• Moderator:
• Daniel Knapp, Sr Director Advertising Research, IHS
© 2016 IHS
Panel Outline: The Programmatic Promise
1. The Programmatic
Promise
2. Programmatic
Confusions
3. Programmatic
Reality
4. Programmatic
Empires
5. Programmatic
Future(s)
© 2016 IHS
Panel Outline: Programmatic Confusions
1. The Programmatic
Promise
2. Programmatic
Confusions
3. Programmatic
Reality
4. Programmatic
Empires
5. Programmatic
Future(s)
© 2016 IHS
Panel Outline: Programmatic Reality
1. The Programmatic
Promise
2. Programmatic
Confusions
3. Programmatic
Reality
4. Programmatic
Empires
5. Programmatic
Future(s)
© 2016 IHS
Value of data & interpretation exceeds media value
$1.00
$0.29
$0.14
$0.15
$0.12
$0.05
$0.15
$0.10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Advertiser Agency Trading desk DMP/Dataprovider
DSP Ad exchange SSP/Adnetwork
Publisher
15%
40%
15%
20%
Flow of spend in programmatic display ad ecosystem*
*Illustrative only. Variances depending on deal negotiations, technology ownership. Refers to banner display advertising, assumes
linear flow across all types of market participants listed. Data based on interviews with 43 ad tech companies, advertisers and
publishers in Europe and the US (2014), and reviews of SEC filings by ad tech companies (e.g. Rubicon, Tremor, YuMe).
$0.6
1
© 2016 IHS
Panel Outline: Programmatic Empires
1. The Programmatic
Promise
2. Programmatic
Confusions
3. Programmatic
Reality
4. Programmatic
Empires
5. Programmatic
Future(s)
© 2016 IHS
Large players have built proprietary operating systems
for production, distribution, monetization of contentFacebook Amazon Yahoo Google Verizon WPP
Ad server
or ad tech
platform
FBX and Liverail
(2014)
In-house
demand-side
platform
Yahoo Ad
Manager
DoubleClick Adap.tv
through AOL
(2013)
Xaxis
Videology
Appnexus
Content
production
In-house news
team;
Partnerships with
media companies
(NYT, National
Geographic, etc.)
Amazon
Prime
Yahoo original
series;
partnerships
with CNBC
and ABC news
and NBC
Sports Group
YouTube
MCNs
Huffington
Post (2011)
AOL.com
Techcrunch
Branded
content
agencies such
as Group SJR
Gateway to
video
Liverail Amazon
Prime
Yahoo Screen
& BrightRoll
(2014)
YouTube
(2006)
AOL One
Adap.tv
Vidible (2014)
Videology
Audience
Data
Audience Network Inferred
Amazon data
sets
Flurry (2014) Google+
profile data
Verizon
customer
database
Kantar (2008)
& comScore
Analytics Atlas Platform
(2013)
Amazon
Analytics
Yahoo Ad
Manager &
Flurry
Analytics
Adometry
(2014) &
Analytics
Convertro
(2014)
Kantar
*Acquisitions are listed with the year in which they were acquired
© 2016 IHS
Increasingly, ad tech firms are seen as vital components
for a proprietary technology stack
*Represents full,majority & minority stakes. ND is non-disclosed. List non-exhaustive, focus on broadcasters & their competitive set.
Agency Online technology platform Broadcaster Cable provider
Date Company Acquisition* Value
July 2015 ProSiebenSat.1 Smartstream.tv (majority) undisclosed
June 2015 ProSiebenSat.1 Virtual Minds (majority) undisclosed
May 2015 Verizon AOL (full) $4,400m
February 2015 WPP Appnexus (minority) $25m
November 2014 Publicis Sapient (full) $3,400m
November 2014 Yahoo Brightroll (full) $640m
October 2014 Telstra Ooyala/Videoplaza (full) undisclosed
July 2014 RTL Group SpotXchange (majority) $144m
July 2014 Yahoo Flurry (full) undisclosed
May 2014 Google Adometry (full) undisclosed
May 2014 AOL Convertro (full) $89m
March 2014 Comcast FreeWheel (full) $320m
February 2014 Facebook Liverail (full) $382m
February 2014 Oracle BlueKai (full) $408m
August 2013 AOL Adap.TV (full) $405m
© 2016 IHS
Panel Outline: Programmatic Future(s)
1. The Programmatic
Promise
2. Programmatic
Confusions
3. Programmatic
Reality
4. Programmatic
Empires
5. Programmatic
Future(s)
14Information Security Level 1 – Confidential
© 2016 – Proprietary and Confidential Information of Amdocs
Let’s take an exampleTarget the user with propriety data in a personalized campaign tailored for his profile, intention, and behavior
Herbert
Looking for new car
Service provider
Key insights
Content consumption
Social influencer
Commute frequency
Spending rank
Propensity to buy
The brand
Service Provider
Elastic Customer Profile
Partner
Age
35–45
Gender
Male
Household structure
Married, 3 children
Address
11211 Dennis Rd Dallas, TX 75229, USA
Equipment
NXT iPad
Credit rank
High
Subscription
Mobile / OTT
Information Security Level 1 – Confidential
© 2016 – Proprietary and Confidential Information of Amdocs15
Collect user’s browser data from Partner
Interactive Targeted Advertising Demo
• Time
• Page visits
• Selection drops/ check boxes/ clicks
• Device, browser, and OS technical details
Information Security Level 1 – Confidential
© 2016 – Proprietary and Confidential Information of Amdocs16
Aggregate user’s billing and CRM enhanced customer profile
Collect user’s browser data from Partner
Interactive Targeted Advertising Demo
• Age: 35–45
• Gender: Male
• Household structure: Married, 3 children
• Address: 11211 Dennis Rd Dallas, TX 75229, USA
• Financial rank: High
• Equipment: NXT iPad
• Preferred language: EN
Information Security Level 1 – Confidential
© 2016 – Proprietary and Confidential Information of Amdocs17
Pull user’s OTT app data
Aggregate user’s billing and CRM enhanced customer profile
Collect user’s browser data from Partner
Interactive Targeted Advertising Demo
• List of installed and recently used apps
• Application usages
• Geo location
• Device model and OS
• Device Language
• Historical app engagement
Information Security Level 1 – Confidential
© 2016 – Proprietary and Confidential Information of Amdocs18
Pull user’s OTT app data
Aggregate user’s billing and CRM enhanced customer profile
Collect user’s browser data from Partner
Identify user’s ad choices
Interactive Targeted Advertising Demo
• Selection of targeted ad
• Selection of specific ad (direct hit!)
Information Security Level 1 – Confidential
© 2016 – Proprietary and Confidential Information of Amdocs19
Pull user’s OTT app data
Provide interaction data back to the brand for analytics and sales
Interactive Targeted Advertising Demo
Aggregate user’s billing and CRM enhanced customer profile
Collect user’s browser data from Partner
Identify user’s ad choices
