Digiday Publishing Summit, March 18, 2013
2013 State of the Industry
Programmatic + Premium Current Practice & Future Trends
Qasim Saifee, SVP Monetization PlatformTodd Rosenberg, VP Monetization Platform
Methodology
Media Trader / Intermediary
Media Buyers
Digital Publishers
28%
31%
41% •Fielded Jan 25 - Feb 9, 2013
• Emailed to 35,000+ senior, digital media and marketing professionals
•843 people in total responded – most ever!
Respondents
Publishers and Buyers Are in the Game
Media Buyers
Digital Publishers
71%
71%
Percent Who Trade Ads Programmatically
Q: Do you make your digital display advertising inventory available on either a public or private exchange?
Do you purchase digital display advertising programmatically? Q:
Majority of Publishers Saw Revenue Increase, Will Trade Even More in the Year Ahead
Q:
Revenue: 12 Month Period
37% No Change
55% Up by 21%
8% Down by 19%
Inventory: The Year Ahead
21% Will fall 19%
58% Will rise 25%
21% No Change
How has programmatic selling affected your total revenue in the last 12 months vs. the year previous?
Q: Given your experience with programmatic selling, how much more or less of your digital ad inventory do you anticipate will be sold programmatically in the coming year…?
Buyers Purchased More Because of Programmatic
Substantially Less
SomeWhat Less
No Change
Somewhat More
Substantially More
1%
4%
18%
47%
30%
77% of Buyers Spent More on RTB Year over Year
Q: How much more or less of your inventory are you acquiring via programmatic trading now vs. 12 months ago?
Does Programmatic Benefit Publishers and Buyers Equally?
Yes
Don't know
No
25%
30%
45%
Publishers
Yes
Don't know
No
38%
44%
18%
Buyer
In its current state, does programmatic selling benefit buyers and sellers equally? If no, who benefits more and why?Q:
Does Programmatic Benefit Both Sides Equally?
If not (benefit equally), why not?
• “Benefits buyers more, because it allows them to use their 1st-party data to identify
valuable audience and buy it cheaply -- because the seller does not know the value.”
• “It benefits buyers. Not because it can't benefit sellers, but because sellers just haven't
figured out how to use it to their benefit yet…”
• “The sell side still doesn't have the insight, controls and automation to really optimize yield
and manage an integrated direct/indirect strategy.”
Programmatic Premium
Publishers Are More Familiar with “Programmatic Premium”
No
Yes
43%
57%
No
Yes
60%
40%
Publishers Buyers
Are you familiar with the term programmatic premium?Q:
Publishers Define “Programmatic Premium”
“Buying top tier premium publisher inventory via programmatic means.”
“A way to buy premium inventory through automation instead of through a salesperson and a scanned IO, etc.”
“Premium inventory sold within structured terms but bought programmatically.”
“Programmatically bought inventory where there is no distinction in the inventory from direct-sold, just in the manner in which it is executed.”
If you are familiar with programmatic premium, how would you define it?Q:
Buyers Define “Programmatic Premium”
“Ability to buy ‘premium’ inventory (i.e. guaranteed, rich, by specific
position and run date) via an exchange.”
"No longer needing insertion orders to obtain premium inventory
from publishers. Usually a set floor price or minimum number of
quality impressions to buy in a month.”
"Defining audiences and objectives then system matches premium
publishers who can get to those audiences.”
If you are familiar with programmatic premium, how would you define it?Q:
OpenX Defines “Programmatic Premium”
Direct relationships between buyers and sellers facilitated through
programmatic (automated) means. The two programmatic elements are:
- Automated discovery, negotiation and workflow.
- Buyer-defined rules governs the inventory that’s purchased.
‘Premium’ is in the eye of the beholder.
To Contribute More Premium Inventory, Publishers Want Control Over Pricing, Relationships
None of the Above
Maintain Data Security
White List Buyers
Predictable Volume/Revenue Guarantees
Set Different Terms For Buyers
Control Ad Quality/Brand Safety
Maintain Direct Relationships
Control CPM/Pricing
4%
47%
47%
54%
54%
66%
67%
75%
What would lead you to sell more premium inventory programmatically? Q:
Buyers Want More Data and New Inventory
More Easily Negotiate Direct Buys
Maintain or Expand Direct Buying Relationships
Preferred Access to Inventory ("First Look")
Exposure to Inventory Not Currently Available
More Data to Inform Bids
29%
39%
57%
67%
68%
What would lead you to buy more premium inventory programmatically? Q:
“Programmatic” Trading of Premium Emerges
Premium Only
No Distinction
Both Premium & Remnant
Remnant Only
3%
6%
35%
57%
Premium Only
No Distinction
Both Premium & Remnant
Remnant Only
18%
16%
55%
12%
What types of inventory do you make available via programmatic selling?
What types of inventory do you purchase via programmatic buying?
Publishers Buyers
Q:
Q:
Pain Points that Programmatic Premium Can Solve
None of the above
Ad quality review
Price Negotiation
Trafficking
Optimization
Billing/Reconciliation
Insertion order workflow
6%
25%
36%
52%
59%
60%
68%
What elements of the traditional direct sales process do you think can be replaced programmatically?
Q:
What do you needto execute programmatically?
Programmatic Requires the Right Platform
No
Yes
19%
81%
Does your ad server integrate exchange capabilities?
Less likely
No impact
More likely
5%
33%
62%
If yes, are you more or less likely to engage in programmatic selling?
Not at all likely
Somewhat likely
Highly likely
29%
35%
35%
If no, will you convert within the next 12 months?
Do you use an ad server…that has exchange capabilities integrated into the platform? If you answered “yes” are you more or less likely to engage…? If you answered “no” how likely are you to convert to an ad sever that accommodates programmatic…?
Q:
Top Ad Tech Requirements for Publishers
Screen out certain buyers
Overlay audience data
Sell inventory in real-time markets
Content optimization
Manage guaranteed and non-guaranteed
Transact directly w/terms
Set price floors by buyer or segment
Reporting Insights
Yield optimization
58%
67%
68%
73%
74%
76%
79%
87%
88%
When selecting an ad technology solution, which of the following are more important to you?Q:
Conclusions
• Programmatic trading is growing fast…but most publishers think it benefits buyers more
• Significant levels of premium inventory now traded programmatically
• To continue to grow, programmatic needs to evolve to provide more controls to publishers, and more quality inventory for buyers
• Publishers need to adopt the right ad technology platform to tap into growing revenue from programmatic trading
openx.com/insights/documentation
2013 State of the Industry
Programmatic + Premium Current Practice & Future Trends
