kevin mannion

2014 Programmatic Study | P. 1

Report On Programmatic Study (Winter 2014)

Kevin MannionChief Strategy Officer

& FutureLandscape The Programmatic

As Viewed By Top Buyers & Sellers


Media Buyers Overall

Company TypeAgency 35%

Marketer 65%

Job Title

VP and above 45%

Director/Supervisor 34%

Manager/Planner/Buyer 21%

Annual SpendingLess Than $10 Million 42%

$10 Million or More 58%

Media Sellers Overall

Company TypePublisher 58%

Ad Network 42%

Job Title

VP and above 68%



Buyers & Sellers




Marketer 65%

Job Title

VP and above 45%







Ad Network 42%

Job Title

VP and above 68%



Agencies | Marketers | Ad Networks




Marketer 65%

Job Title

VP and above 45%







Ad Network 42%

Job Title

VP and above 68%



Top Executives


Here’s what we know about programmatic.

- Buyers highly optimistic about programmatic

- Yet there are factors holding it back

- What needs to be solved

- Partners and leaders

- Evolution of programmatic

- It’s a Google world


Total Respondents (%):

spending across all media

Optimismnext 12 months

Increase Maintain Decrease

Mobile and digital continue to be the magnets

Net optimism very high for both.

Net Optimism (% increase minus % decrease)


Digital/Mobile Respondents (%):

spending

across digital

categories

Net Optimism (% increase minus % decrease)

Total Respondents (%):

spending across all media

Optimismnext 12 months

Increase Maintain Decrease

Mobile, Social, Search, Video and Programmatic

are primary drivers in digital spending.


Programmatic growing vs. direct

In 2014 programmatic was up to 40% of ad budgets.

Allocation of Digital Ad

Budgets by

62% 38%Traditional Buying Programmatic Buying

201

4

Buyers



Today it is approaching half of all digital ad budgets.


Budgets by


201

4


201

5

Buyers



That’s a 21% increase in just one year.


Budgets by

62%Traditional Buying Programmatic Buying

201

4


201

5

Buyers38%

+21%


STRONG Somewhat Non

e

48%

59%

39%

27%

13%

14%

Media Buyers

Media Sellers

Buyers and sellers are both

strongly concerned about media coverage of fraud and viewability.

% level of concern


Transparency and Brand Safety

Sales – Knowledge and Service

Programmatic problems

begin and end with trust and credibility.

“Sites not safe

for our client.” “Quality of inventory

was very poor.”“They didn't

know what they

were doing.”

“They aren't experts on

their own products.”

“Some guys were not

trustworthy.”

“Some sales staffs

don't understand

programmatic.”

“Misrepresented inventory.”

“Disheartened by a

lack of transparency.”

“Unsavory content.”


Rated 1-3

Advertisers prefer single full-service solution.

Sellers

Sellers truly believe that media buyers

are looking for a one-stop shopping solution.

44% 33% 22%

5 Rating 4 Rating 1-3 Rating

Rating Levels: 5=strongly agree/1=strongly disagree


Rated 1-3

5

Rating

Rated 1-3

Advertisers prefer single full-service solution.

Rating Levels: 5=strongly agree/1=strongly disagree

It’s better to work with a single full-service provider than have a several point solution.

Sellers

Buyers

44% 33% 22%

20% 34% 46%

4 Rating 1-3 Rating

5 Rating 4 Rating 1-3 Rating

But the buyers don’t agree.

Only 1 in 5 actually wants a single source solution


What does Partnership mean to marketers? 3 factors:

Credibility. Expertise. Service.

“Great customer service,

responsiveness and

campaign performance.”

“Collaborative effort to achieve goals.”

“Customer service,

transparency and reporting

viewability.”

“Good communication about

shared outcomes.”

“Great customer service and training.”

“A relationship based on

trust and transparency.”

“A partner who assures the

quality of the content

environment.”


Buyers are demanding better performance.

No other factor comes close.

Better ROI &

performance

Key Factors For Media Buyers

42%

23% Effective &

transparent pricing

18%

Continuing embrace

& acceptance

17% Transparenc

y in

placement

16%Brand safety

1

.

2

.

3

.

4

.

5

.


Better ROI &

performance

Key Factors For Media Buyers

42%

23% Effective &

transparent pricing

18%

Continuing embrace

& acceptance

17% Transparenc

y in

placement

16%Brand safety

1

.

2

.

3

.

4

.

5

.

Simplicity is #1 for sellers.

But premium prices and better yields rank high too.

Key Factors For Media Sellers

Operational

simplicity & ease43%

34% Premium inventory

at premium prices

28%

Better yields

23% Effective audience

targeting

23% Effective &

transparent pricing

1

.

2

.

3

.

4

.

5

.


Use and partnership with programmatic brands.


Companies partnered with in past 12 months in programmatic

Google and Yahoo!

are the dominant brands in the programmatic world.

82% 69% 34% 21% 20% 18% 18%


In the programmatic world right now there is one

and only one prominent brand – Google.

36% 7% 6% 6% 5%16%

Q: Of all the vendors/partners that you use, who do you see as the ONE you value more than any other?

Note: 50 other vendors/partners were included in this question but all tallied under 5%


LUMAscape positions every player in the programmatic arena.

It’s more than a little chaotic.


Can you identify the leading digital advertising networks and platforms?

Let’s play The Feud!


Here is what LUMAscape

ranks as the leading digital Ad Networks.

Ad Networks

Positioned by


Positioned by

Ad Networks

Buyers and sellers

could identify the leaders – but it falls apart after that.

38%

28%

25%

24%

29%

Survey says…

Audience Ads

2/3


38%

28%

25%

24%

29%

Positioned by

Ad Networks

There is huge confusion about

what a digital advertising network really is.

did not identify Google Display Network

as a digital advertising network

62%

Survey says…

2/3

Audience Ads


Positioned by

Agency

Trading Desk

(ATD)


ranks as the leading ATDs (Agency Trading Desks).


Positioned by

Buyers and sellers

could correctly identify only four of eight primary ATDs.

21%

13%

12%

19%

Survey says…

Agency

Trading Desk

(ATD)1/4


Positioned by

Ad Exchanges


ranks as the leading digital Ad Exchanges.


44%

38%

36%

34%

42%

Positioned by

Ad Exchanges

And survey says there is high recognition of the top Ad Exchanges.

But . . .

Survey says…


44%

38%

36%

34%

42%

Positioned by

Ad Exchanges

Over half the respondents are not aware that the term “Ad Exchange” in your title,

might mean you are an Ad Exchange.

Survey says…

NOT aware that Yahoo

Ad Exchange is an Ad Exchange

56%


Positioned by


ranks as the leading DSPs (Demand-Side Platforms).

Demand-Side

Platforms

(DSP)


26%

21%

20%

19%

23%

Positioned by

Demand-Side

Platforms

(DSP)

Awareness of the

Demand-Side Platforms is highly spotty.

Survey says…


Positioned by

Supply-Side

Platforms

(SSP)


ranks as the leading SSPs (Supply-Side Platforms).


44%

40%

39%

35%

42%

Positioned by

Supply-Side

Platforms

(SSP)

Total confusion!

Most respondents cannot identify even one Supply-Side Platform.

Survey says…



ranks as the leading Data Management Platforms.

Positioned by

Data

Management

Platforms


Positioned by

25%

22%

21%

23%

Survey says…

Data

Management

Platforms3/8

Poor showing. Only 5 brands were

correctly identified as a Data Management Platform.


“More transparent. Better

understanding of how it works.”

“More transparent, more refined

definitions for viewability.”

“Need to show more of how, why and

where ads appear.”

“Continue to grow. Efficiencies will be

found in improved technology.”

“The number of advertising strategies

will rapidly increase.”

“More transparency and real-time

data/reporting.”

“Easier to use thanks to better data and

more tools for sellers.”

“Growing steadily if metrics also grow and

can prove results.”

Overall Growth and ImprovementIncreased Transparency

Improved Measurement

What’s next? Programmatic will

1.Grow 2.Evolve 3.Improve 4.Change the world of media.

“More cross channel opportunities.”

“More integrated cross-device.”

“Increased acceptance and usage for online

and mobile inventory and as a method of

buying other traditional media vehicles.”

“It will grow both online and linear/VOD.”

“TV inventory will be included.”

Integration Across Media Platforms


Programmatic buying will continue to accelerate

Concerns: fraud, viewability, transparency

Partnership = trust + credibility + transparency + service

ATD’s, DMP, DSP, SSPs—fairly meaningless categorizations to many

Google winning – it’s still early but Google is the predominant force

Evolution: all believe in a future of growth, improvement, cross media

integration, and, yes, even transparency

Here are the things I’d like you to remember.

1.

2.

3.

4.

5.

6.


Report On Programmatic Study (Winter 2014)

Kevin MannionChief Strategy Officer

As Viewed By Top Buyers & Sellers

& FutureLandscape The Programmatic

kevin mannion

Documents

programmatic study winter

programmatic growing

job titlevp

digital spending

digital categoriesnet

media coverage of fraud

annual spendingless

digitalmobile respondents