to invest in programmatic video for … top 5 reasons to invest in programmatic video for branding...

THE TOP 5 REASONS TO INVEST IN PROGRAMMATIC VIDEO FOR BRANDING

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DEBUNKING MYTHS

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INTRODUCTIONVideo ad formats and the use of programmatic media-buying technologies are consistently identified as two of the biggest driving factors in today’s digital advertising industry, but there is a disconnect between them.

CHAPTER 1

INTRODUCTIONThis white paper will examine the evolution of video advertising and its growing role within the contemporary marketing milieu. It will pay particular reference to its role as an ad format employed by marketers in brand advertising campaigns, given the advent of programmatic technologies.

The Top 5 Reasons To InvesT In ProgrammaTIc vIdeo for BrandIngDebunking myths


These technologies use behavioural data to improve the targeting, delivery, and analysis of ad campaigns. The historic purpose of which has been to improve efficiencies in an advertiser’s operations in display advertising, primarily through the use of retargeting technologies and enhanced audience management techniques, in order to re-engage web users that previously visited a relevant website.

programmatic advertising technologies have previously been restricted to such marketing techniques associated with the lower end of the ‘purchase funnel’* – activities typically referred to as direct response (or DR) tactics – as a result of

the messaging put into the marketplace by vendors.

However, with increasing amounts of consumer and audience data at the disposal of marketers – the vast majority of data was created in the last few years according to IBM** – the technology can be employed in a more sophisticated way, further up the ‘purchase funnel’.

This white paper will explore the case for using programmatic advertising technologies for brand advertising campaigns, examining the issues both for and against, using both quantitative and qualitative research studies, plus testimonies from leading industry professionals.

We would like to thank the following industry experts, who were consulted during the research for this white paper.

Sammy Austin, Head of programmatic at MoneySuperMarket.com

Marco Bertozzi, president, Global Clients, VivaKi

Steve Chester, Director of Data and Industry programmes, Internet Advertising Bureau (IAB UK)

Americo Compos Silva, Global Media Manager, Shell

Nigel Gwilliam, Digital Consultant, IpA

Khurram Hamid, Senior Director - Global Head Digital Media at GlaxoSmithKline

Duncan McMonagle, Chief Revenue Office, 90min

Marc Syal, MEA Head of Media, Essence

Alex Tait, industry consultant, ex-chair of ISBA digital, data, & direct action group

Jana, Head of Demand partnerships, EMEA (mopub), Twitter

Caspar Schlikum, CEO, Xaxis EMEA

Danny Hopwood, Vice president Solutions & platform Operations EMEA, VivaKi

*Defining Advertising Goals for Measured Advertising (DAGMAR) www.investopedia.com/terms/d/dagmar.asp

**Apply New Analytics Tools to Reveal New Opportunities www.ibm.com/smarterplanet/us/en/business_analytics/article/it_business_intelligence.html


INTRODUCTIONVIDEO AD FORMATS AND THE USE OF PROGRAMMATIC MEDIA-BUYING TECHNOLOGIES ARE CONSISTENTLY IDENTIFIED AS TWO OF THE BIGGEST DRIVING FACTORS IN TODAY’S DIGITAL ADVERTISING INDUSTRY, BUT THERE IS A DISCONNECT BETWEEN THEM.

CHAPTER 1



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the growth of online videoA recently published US research study from the IAB* identified video as the growth medium among marketers, with 68% of the 300-plus respondents claiming they intend to increase their online video ad spend over the next 12 months. According to the study, growth in the sector will outpace forecasted increases in media spend on TV.

for the most part, media buyers expect greater investment in digital video will be driven by an overall rise in advertising budgets in 2015, plus a shift in funds away from broadcast and cable television.

This increase was also identified by Business Insider Research**, which analysed

recently posted quarterly earnings from ad tech firms whose primary offering are video services, demonstrating that online video ad spend experienced double-digit growth in the final quarter of 2014 (see graph).

The three companies – TubeMogul, Tremor Video, and yume – posted combined revenues in excess of $135m, 21% up on the same period 12 months before, a growth rate that was almost double the increase in search advertising.

Increase in programmatic spendThis increase in online video consumption, plus a subsequent increase in online video ad spend, has also been complemented by the rise of programmatic advertising.

dIgItal VIdeo adVertIsIng reVenue - globalselect Companies

*www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-042715

**https://intelligence.businessinsider.com/welcome



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However, further analysis of the rise of programmatic spending patterns demonstrates that brands are missing out on the full scale of the opportunity posed by such technologies. programmatic advertising technologies are increasingly influencing how advertisers decide how to invest their media budgets.

The value of the US programmatic advertising market hit $11.31bn last year, and is expected to more than double by the end of 2016 when it will be valued at $24.25bn, according to a study from eMarketer* (see charts).

IAB Europe has painted an equally healthy picture of the programmatic market in EMEA. In research published in

September 2014, it found the market had grown 111% from €0.98bn in 2012 to €2.08bn in 2013.

Based on an analysis of dozens of data points, plus research with up to 50 professionals in the advertising and media industry, eMarketer’s report estimates programmatic ad spend will account for 55% all display ad spend in the US this year, and 28% of ad spend on video in 2015.

This is driven in the main part by the increasing consumption of video online, as audiences migrate from linear viewing experiences on their TV sets.

However, the figures also indicate that while programmatic advertising is

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Note: digital display ads transacted via an API, including everything from publisher-erected APIs to more standardized RTB technology; includes advertising that appears on desktop/laptop computers as well as mobile phones and tablets; * includes banners, rich media, sponsorship, video and otherSource: eMarketer, Oct 2014

*www.emarketer.com/Article/US-programmatic-Ad-Spend-Tops-10-Billion-This-year-Double-by-2016/1011312

us PrograMMatIc dIgItal ad sPendIng 2013-2016


The Top 5 Reasons To InvesT In ProgrammaTIc vIdeo for BrandIngDEBUNKING MyTHS

growing in popularity, it is still predominantly perceived as a technology used to drive online display advertising.

The reasons for the historical association between programmatic advertising technologies and display are manifold, and will be explored at length later in this paper. Several sources consulted for this study attest that this association is due to programmatic vendors’ historic emphasis on how their technology can drive efficiencies.

As a result, programmatic media buying technologies have been perceived as a means for publishers to monetise unsold, or ‘distressed’, display ad

inventory at cut-price costs. This is a message that is incompatible with advertisers looking to position their brand as a premium offering using rich media such as video.

Historically, such advertisers have eschewed opportunities posed by online advertising in favour of the more controlled media environments, typically TV, where they feel more assured of brand safety, and the more established methods of media-buying.

the case for changeHowever, such conservative attitudes are being challenged by consumers’ changing media consumption habits. The IAB’s Original Digital Video Consumer Study* analysed the viewing habits

Note: digital video ads transacted via an API, including everything from publisher-erected APIs to more standardized RTB technology; includes advertising that appears on desktop/laptop computers as well as mobile phones and tablets; includes banners, in-stream and in-text. Source: eMarketer, Oct 2014

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* www.iab.net/media/file/GfK_IAB_2015_Original_Digital_Video_Report_fINAL1.pdf

us PrograMMatIc dIgItal VIdeo ad sPendIng 2013-2016



of audiences taken from a sample of over 1,900 users, and found significant changes in consumption patterns. The study, conducted in April 2015, revealed that 24% of the adult population tune in to video on demand at least once a month, an increase of 13% year-on-year, with youth audiences (those aged 18-34) adopting such viewing patterns faster than any other demographic.

This study, conducted by GfK, also quizzed audiences on their perception of online video and found that video on demand is perceived as more innovative, edgy, unique and mobile compared with linear TV programming.

The qualitative element of the study also found that such

content was almost at parity with primetime TV, as the video type such audiences were most likely to watch, and has a higher preference than the other regular TV genres (daytime, sports, news).

These audience segments are migrating to such consumption patterns due to the ‘anytime, anywhere’ convenience on-demand video offers them, particularly across devices (see graph).

The survey demonstrated that online video consumption is now taking place across a number of devices, with 56% accessing such content via connected TVs, 56% via smartphones and 48% via tablets. This demonstrates that such devices are being used to stream original digital video

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* includes either built-in Internet capability or TV-connected devices with internet capabilitySource: IAB 2015 Original Digital Video Consumer Study April 2015

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more than twice as often as two years ago, while computer viewing of original digital video (72%) remains steady.

Addressing the disconnectAs identified earlier in the eMarketer study, media owners have typically been slow to monetise their inventory using programmatic advertising technologies, prompted by fears that using such technologies will result in lower advertising yield.

Report author, and eMarketer analyst, Lauren fisher, says: “Today publishers largely guard high-value ad inventory such as TV and premium digital video content, though we expect a greater number of ads sold programmatically in these formats starting in 2015.”fisher contends that the

shift towards increased programmatic video ad buying will be accommodated by the rise of more direct trading models, in a move that should offer brand advertisers the increased assurances they demand in order to secure their budgets.

securing inventory assurances programmatic advertising has historically been seen as a means of purchasing cheap inventory primarily through the use of real-time bidding (RTB), typically in open exchanges where reports of concerns around transparency made mainstream brand advertisers wary to engage.

This has been exacerbated by media owners’ eagerness to protect their inventory prices (by not opening their

Today publishers largely guard high-value ad inventory such as TV and premium digital video content, though we expect a greater number of ads sold programmatically in these formats starting in 2015. Lauren Fisher, eMarketer analyst



most valuable inventory to exchanges), but programmatic vendors have responded by offering both the buy and sell side of the industry increased assurances, transparency and control.

The rise of programmatic direct, an alternative to the open, auction-based, model of media trading has also been an important factor. The programmatic direct method of trading allows advertisers to negotiate advertising placements in a more controlled environment with media owners, with the pair able to pre-agree the cost of such placements.

Practising due diligenceThe same period has also seen greater emphasis on providing media buyers with greater

assurances over transparency, as ad tech vendors look to provide them with greater levels of control, regardless of which trading model they choose to negotiate media placements.

Brands exploring the programmatic sector are increasingly practising due diligence when deciding which vendor to partner with. The main transparency issues they are exploring are ad viewability and click fraud (these issues will be explored in-depth in the next chapter of the study), particularly in more open trading environments. Those seeking such assurances are increasingly offered quality assurance through third-party verification from bodies including the UK’s ABC, with marketers better able to

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measure the effectiveness of their spend, thus proving how media buys are contributing to their company’s overall operations.

As identified by both the IAB and eMarketer numbers above, these dual trends in the industry appear to be resonating with the market. Tremor Video’s Q1, 2015 quarterly earnings report noted how over 70 of the publishing industry’s top premium publishers are making their inventory available through its Supply-side platform (SSp), an increase from 50 during the previous quarter.


THE TOP 5 REASONS TO INVEST IN PROGRAMMATIC VIDEO FOR BRANDINGDEBUNKING MYTHS


The growth of online videoA recently published US research study from the IAB* identified video as the growth medium among marketers, with 68% of the 300-plus respondents claiming they intend to increase their online video ad spend over the next 12 months. According to the study, growth in the sector will outpace forecasted increases in media spend on TV.

For the most part, media buyers expect greater investment in digital video will be driven by an overall rise in advertising budgets in 2015, plus a shift in funds away from broadcast and cable television.

This increase was also identified by Business Insider Research**, which analysed

recently posted quarterly earnings from ad tech firms whose primary o�ering are video services, demonstrating that online video ad spend experienced double-digit growth in the final quarter of 2014 (see graph).

The three companies – TubeMogul, Tremor Video, and Yume – posted combined revenues in excess of $135m, 21% up on the same period 12 months before, a growth rate that was almost double the increase in search advertising.

Increase in programmatic spendThis increase in online video consumption, plus a subsequent increase in online video ad spend, has also been complemented by the rise of


**https://intelligence.businessinsider.com/welcome

TOP 5 REASONS YOU’RE NOT USING PROGRAMMATIC VIDEO FOR BRANDING - AND WHY THEY’RE WRONG

Brand advertisers have been wary of using programmatic advertising technologies for a multitude of reasons, outlined below. However, several studies indicate they are eager to explore the potential of these technologies as long as the industry can provide the necessary assurances.

CHAPTER 2



the below section lists the top 5 concerns among advertisers, and also examines how the past 18-24 months have seen the programmatic industry make a concerted drive to address these issues, with the backing of both brands eager to embrace the potential of the technology, as well as trade bodies to act as an independent arbiter.

1. VIewabIlIty Issues Mean ads just aren’t seen by the audIence

Referring to the question of whether an ad served on a screen has actually been viewed by a web user, has been one of the key issues of debate in digital advertising for the last 18-24 months.

Reports from technology vendors on the average ad viewability rates in the industry vary wildly, but most agree that under half of all online display ads served are not seen – discrepancies in ad counting techniques between vendors is another pain point. In May 2015, Google announced that almost half, 46%, of video ads were never seen.

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However, the study found many of those ads run in the background, are hidden by another active tab, or the user scrolled or closed the window in under two seconds.

The IAB and Media Rating Council (MRC) report The State of Viewability* maintains that 100% viewability is just not feasible at present, and further advises all sectors of the industry to act in collaboration to resolve any issues.

The report further advises that billing should continue to be based on the number of served impressions during a campaign and these should be separated into two categories: measured and non-measured.

The body also advises that if a campaign does not achieve the 70% viewability threshold for measured impressions, then publishers should be willing to guarantee additional viewable impressions until the threshold is met before billing. Several factors can play a role here, such as poor creative or low quality content reducing the engagement of an ad or site.

However, for advertisers under pressure to prove a return on investment (ROI) of their ad spend, this stance is simply not good enough. The reaction of many has been to opt for directly negotiated media deals, where they are better assured they will be seen by audiences they seek to engage with.



If a user doesn’t see a client’s ad, then they are not going to engage as a result of that media placement, and quite simply, we are not getting what we paid for. When you are tasked with showing value for a client’s media spend, you at least have to be able to prove that they get what they pay for, and being sure that consumers have seen the ad is the least you can ask for. Director, holding group trading desk


The Top 5 Reasons To InvesT In ProgrammaTIc vIdeo for BrandIngDEBUNKING MyTHS



Viewability is a key performance indicator (KpI), as opposed to a metric in itself. It’s something that we offer to our advertisers, and if we see publishers that are not fulfilling we stop working with them. Managing director, ad tech provider

Brands are also taking further control in this regard, with many tasking their media-buying agencies to work with hand-selected viewability providers, and then agreeing benchmarks for them to reach in terms of viewability.

Ad tech vendors are also optimising their offerings to allow advertisers to pre-determine viewability as a key performance indicator (KpI) and then automatically optimise to that goal.

the real truthViewability rates, or lack thereof, are vastly over-reported in the press, promoted chiefly by specialist ad tech vendors eager to promote their own wares, according to experts consulted during the course of this study. There is also often confusion between viewability and fraud, page position or user engagement.

The call for increased levels of transparency is also being accommodated by several programmatic advertising vendors providing the option not to charge advertisers unless their ads are deemed viewable by an independently verified auditor.

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Programmatic video has greater levels of transparency. We looked to change how we were serving out video ads last year, and found that our in-target ad serving improved vastly after we chose a third-party viewability provider to work with our agency. Global head of digital, multinational FMCG



2. clIck fraud Means ad budget wIll be wasted

Click fraud has also hit the headlines with several companies falling prey to the practice in high profile cases involving some of the world’s most iconic brands. The IAB published a report in 2014* indicating the practice costs the industry as much as $11bn per year.

The open nature of advertising exchanges has meant that programmatic advertising has become synonymous with such malpractice, or at least widely recognised as more vulnerable to it.

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Needless to say, this has caused advertisers to be wary of using programmatic advertising technologies, as the ‘black box’ nature of the offering proves difficult for them to guarantee they won’t fall victim too.

the real truthwhile it is true that using programmatic advertising technologies carries with it an element of risk regarding ad fraud, it is no less vulnerable to it than other forms of online media-buying, in fact, companies operating in the space have been more proactive in minimising the risk than any other sector.

The establishment of the IAB-led task force The Traffic of Good Intent (TOGI) in the US is arguably the highest profile example of forces campaigning against the threat in all forms of online advertising. The outfit, which also incorporates brand advertising bodies, has pledged to help programmatic advertising firms identify bot-generated, non-human traffic and remove such players from the supply chain.

TOGI was followed in the UK with the launch of the anti-fraud group from the Joint Industry Committee for web Standards (JICwEBS) – the independent body that defines best practice and standards for online ad trading.

Set up to tackle ad fraud, it will be publishing anti-fraud good practice principles for the UK and accrediting companies that meet industry-agreed standards.

Another example is measurement firm comScore launching its Industry Trust Initiative** that lets advertisers measure the quality of the trading environment they operate within by assessing their likelihood for carrying non-human traffic (NHT).

* http://www.iab.net/tag

**http://www.comscore.com/Insights/press-Releases/2015/4/comScore-Industry-Trust-Solution-for-programmatic-Now-Available-in-44-Countries?ns_campaign=GLOB_REG_ApR2015_pR_INDUSTRy%20TRUST%20LAUNCH&ns_mchannel=email&ns_source=comscore_elq_GLOB_REG_ApR2015_pR_INDUSTRy%20TRUST%20LAUNCH%20ENGLISH%20EMEA&ns_linkname=text_general&ns_fee=0&elq=803ee01f34704c1a8344145ae3d4acf6&elqCampaignId=1380&elqaid=1958&elqat=1&elqTrackId=97129054b0a64be59415d0b0522b8675


It’s up to the industry - from advertisers, to ad networks, and aggregators, etc - to come together to ensure that sites which produce dubious or illegal content are blacklisted, and to steer all forms of ad revenue away from them. CEO, holding group agency trading desk

For many media owners – excluding TV media owners – the mainstay of their commercial model is display. There are a relative few that use video as the staple of their ad inventory. Head of digital, media agency trade body

3. brandIng requIres PreMIuM InVentory lackIng In the

PrograMMatIc sPace where PrIcIng Models are a race to the bottoM wIth lIttle control The traditional association of programmatic media-buying with cut-price media offerings has been proliferated by vendors emphasising their ability to drive value from display inventory that would otherwise go unmonetised.

This surplus of inventory was then auctioned off, often at low price points, with this pricing model commonly referred to as a ‘race to the bottom’, one that provided little value for media owners, and brand advertisers alike.

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As a result, publishers did not release their more desirable inventory to channels that use programmatic-buying technologies.

This caused a misconception that video would fare the same fate despite its similarities to TV vs. display.

However, as mentioned earlier in this paper, the rise of programmatic direct is leading to more progressive means of satisfying both sides of the market, as it facilitates advertisers’ desire to purchase more highly desirable inventory in an automated fashion, plus allay media owners’ concerns over price-erosion.





– are beginning to embrace programmatic, and injecting further premium inventory to the market.

Such companies consulted in the course of this study claim they have been able to significantly increase advertising yield by adopting a ‘programmatic first’ approach, a tactic that has also allowed them to introduce new ad formats such as video.

While programmatic technologies have been associated with cut-price o�erings, advertisers too are increasingly vocal about their willingness to pay more money for ad space, as long as they have the required guarantees over transparency.

THE REAL TRUTHIt is true that programmatic advertising was used as a means of extracting value from otherwise unsold display inventory. However, with video, there is more of an equilibrium around the balance of supply and demand, i.e. with display there is an over-supply of display ad inventory and new ad space can easily be created. But with video this is less so, as media owners have been more cautious about monetisation and pre-roll is directly tied to content and therefore cannot be arbitrarily added to a web page. Also, emerging online brands that have no print legacy revenue streams to protect – brands that are commonly referred to as ‘digital first’



I’m happy to pay more money to publishers for ad space, but for a long time the transparency has not been there. now, with more direct access I can be guaranteed I’ll be getting value for my money. Head of digital, multinational FMCG

with the increasing willingness of advertisers to embrace programmatic technologies, as well as more sophisticated business models around them, media owners are following suit.

Many media owners have learnt how the buy-side of the industry has benefitted from programmatic, and taken the lead in how to monetise video inventory.

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This includes selling media inventory on an automated basis in environments such as private marketplaces (pMps), where selected advertisers are offered ‘first look’ at premium inventory which is potentially more valuable (to both the advertiser, and media owner).




It’s true programmatic has been about low cost CpMs. But now we are starting to see the benefits of it as a branding medium, we are starting to transition to a strategy where we are willing to pay a premium for the right kind of inventory, that helps us acquire a customer. I call this ‘effective CpM’, even if we do have to pay more. global head of digital, multi-national FMCG



The technology and measurement has been focused on the bottom of the ‘purchase funnel’, with a lot of focus on clicks and conversions, and there wasn’t the focus on things like how it can drive attention Head of buy-side platforms, ad tech vendor

4. PROGRAMMATIC IS ABOUT ENGENDERING AN ACTION SO

BEST SUITED TO DRIVING CONVERSION IN DR ADVERTISING The ‘cut-price legacy’ of programmatic advertising comes from it being employed by DR advertisers that operate on a performance basis, i.e. where they are charged only when an ad unit can be proved to have driven a conversion (such as the registration of a sales lead, or a direct sale).

This has meant that advertising techniques employed by such providers have included crude forms of engaging with online audiences, such as retargeting with messaging in a manner that doesn’t resonate with brand marketers.

CHAPTER 2

This has been driven predominantly by the use of last-click attribution, where third-party programmatic advertisers have been incentivised to bombard web users with messaging for products they may have already seen, and decided not to buy.

The negative e�ects of this are potentially devastating for a brand. A research study entitled Familiarity, Frequency and Fine Lines* recently published by InSkin Media found that only 10% of consumers are more likely to buy something after seeing the same ad served.

More worryingly for brands that engage in the tactic, if an ad is seen up to 5 times, it becomes ‘annoying’ and ‘intrusive’. Once it hits 10 times, ‘angry’ becomes the dominant reaction, the study found.

* www.inskinmedia.com/blog/retargeted-ads-put-half-people-buying/


facilitated through greater use of sophisticated attribution models, which take into account more than just the first, or last, click before a web user registers an interest with a brand.

This has been facilitated by a growing emphasis on di�erent attribution models throughout the industry, a shift that was recently highlighted by the launch of attribution consultancy Gain Theory by the advertising industry’s largest holding group WPP.

Gain Theory brings together data, analytics, technology solutions and consumer-insights to help brands devise more sophisticated methods of analysing and predicting audiences’ online behaviours, and then linking them back to wider business results.

THE REAL TRUTHThe maturation of the space means advertisers do not have to employ programmatic advertising technologies in such a crude manner. While retargeting is primarily employed to drive reach and frequency, more refined applications are now possible.

Employing underlying data around consumers, which is made possible through the increasing uptake of technologies such as data management platforms (DMPs), makes it possible to deliver sequential media plans.

This means greater emphasis is placed on core campaign planning tenets, such as frequency-capping, and serving users with di�erent messaging depending on how recently they visited a website. This is also

One of the up-sides of increased focus on audience data is that media agencies can o�er a more consistent experience to advertisers, who should increasingly realise that using programmatic is simply media planning and buying using technologies that can become more adept with every campaign executed

MD ad tech company


5. brandIng Is about IMMersIVe, eMotIVe exPerIences

wIthout a call-to-actIon and dePends on consIstency of enVIronMent that PrograMMatIc can’t delIVer

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Another fallout of the legacy of programmatic advertising’s past association with DR campaigns is a widespread perception that it equates to a lack of creativity. Ad formats common in programmatic are disliked or ignored by the consumers brand marketers want to engage emotionally. Creativity is lacking according to many who see programmatic ad delivery as a copy and paste method of extending reach and frequency, but doing little for creativity and brand engagement.

Brand and DR advertisers have entirely different objectives, hence they require separate creatives. for brand campaigns to be effective, they have to drive certain objectives such as increasing purchase intent, and consideration. Meanwhile, the creative on DR campaigns focuses on driving immediate results, with executions designed to drive specific outcomes, such as data registration, or clickthrough.

*www.thesun.co.uk/sol/homepage/features/6410544/Sun-Investigation-Adverts-for-major-British-brands-appear-on-paedo-websites.html




THE REAL TRUTHAt first, programmatic and branding appear to be at odds with one another. However, a case study presented by Google* shows how fashion brand Tory Burch was able to fuse its first party data with its creative ad formats to and deliver a message specifically tailored to the audience viewing it within specific environments, via ad units purchased in real-time.

Using this technique the fashion house was able to stream its New York Fashion Week show via ad units served on premium publisher sites from Condé Nast, Hearst and Time Inc. For example, if the designer had separate shows for her men’s and women’s lines, livestreams could be served based on the gender of the person viewing the show.

You now have ad formats with interactive features that can engender real interaction with a brand, with formats such as these you no longer have to rely on things like viewability to ensure that a brand’s messaging is getting across.

MD ad tech company

*www.thinkwithgoogle.com/articles/programmatic-merging-data-and-creative.html



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Nestlé recently ran its first wholly programmatic branding campaign for its Nescafé Dolce Gusto brand in the UK, with Gawain Owen, digital lead at Nestlé UK and Ireland widely quoted in the press celebrating the factor this campaign had proved that programmatic did work for branding campaigns.

As online video content publishing has become more common, video publishers have sought to monetise their content with in-stream video advertising, and since 2012 the IAB has helped implement the Video Ad Serving Template (VAST) specification offering the industry common technology standards to meet client demands for increased creative formats.

In addition, those unsatisfied with pre-roll and banner ad formats can now ask programmatic advertising vendors to book campaigns across screens, including TV screens.

for instance, Tremor Video recently announced that it has partnered with placemedia to offer targeted linear TV impressions* via its platform, hence blurring the lines between programmatic advertising techniques, and offline manual ad insertion.

The tie-up means more than 30 billion targeted linear TV impressions are available to advertisers each month, with progressive broadcasters, such as UK premium broadcaster Sky also offering similar services via

its Sky Ad Smart programme.

This method of using programmatic advertising technology – which can target specific households via the broadcaster’s audience data to deliver tailored TV ads via set-top boxes – using to buy TV buying ads – means brands are assured the full creative canvass of TV ad formats, with the more precise targeting of programmatic technology.

Hence, it remains clear that premium ad formats able to deliver premium quality content are available on the market, meaning advertisers are no longer limited to retargeted ad formats optimised to simply generate clickthrough or metrics that benefit the intermediaries, not brands.

*www.jicwebs.org/current-priorities/brand-safety-online/161-dtsg-seal-press-release


PROGRAMMATIC BRAND METRICS The e�ectiveness of programmatic advertising has historically been judged by metrics such as clickthrough rates and conversion and such metrics are adequate when assessing the impact of performance campaigns.

CHAPTER 3


There is an important role for metrics such as viewability; as you can at least show that there was someone looking at your ad. For instance, by comparison, with TV ad campaigns, there is always the question over whether or not someone is in the living room in front of a television. Chief strategy o�cer, media agency

CHAPTER 3




reach & frequencyThis is helping more of the industry’s influential stakeholders to appreciate the tech, and what’s possible. According to several sources contacted throughout this study, and some contend the enhanced metrics offered by programmatic ad platforms mean it could surpass TV as a branding tool.

A key consideration for brand advertisers is whether or not their online ad campaigns are cannibalising their TV spend. what’s important for advertisers is to realise is whether or not their online video campaigns are augmenting their TV messaging, using a unified advertising platform that enables brands to book media across platforms enables this.

However, these metrics are the domain of dr campaigns, and deemed as a mere proxy to an ad campaign’s impact on brand health. To meet the needs of brand advertisers, a mind-shift from programmatic advertising vendors is required, as well as an increased level of trust from advertisers. The market is starting to appreciate what is possible when it comes to employing programmatic technology in brand campaigns through emerging metrics, and education drives.

Research from Ebay found that dual screening is now a mass market reality, with 61% of Brits admitting to ‘dual-screening’, watching TV whilst browsing laptops, tablets or smartphones at the same time.

grP on digital To this end, Nielsen digital ad ratings (DAR) – the gross rating point (GRp) metric used in television advertising to calculate campaign exposure – is now available for online placements.

This gives advertisers the ability to compare TV buys to digital video reach and frequency against a target demographic audience using DAR, effectively allowing TV advertisers, and programmatic players to speak the same language.

Rival comScore has its own measurement tool, Validated Campaign Essentials (VCE).

Increased guidanceHowever, further levels of guidance are available to advertisers as more and more take the leap of faith, with some of the industry’s biggest brand names blazing the trail.

A recent case study from Nestlé* revealed that using programmatic ad buying technologies as part of a brand campaign increased brand safety measures seven-fold, as well as serving 91% of the ads served to consumers that had not previously visited its website.

The core objective of the campaign was to reach new

*www.thinkwithgoogle.com/intl/en-gb/case-study/nescafe-dolce-gusto-drives-sales-with-audience-signals/



CHApTER 3

There is increasingly sophisticated technology, and more intelligent application of it is helping brands to see how much of the ad was seen throughout the duration of its play, plus whether or not the sound was turned on at this time, plus whether or not it was doing so within an active browser tab. Head of buy-side platforms, ad tech vendor

for many, the key advantage to using programmatic advertising technologies as part of a fully integrated ad campaign is the ability it offers to gain insight in real-time, thus allowing advertisers to optimise programmatic elements of their campaign before it has run its course in line with audiences’ reactions, thus enhancing efficiencies further.

The brands that will succeed in harnessing the technology will be those that think beyond formats and platforms and leverage the strength of programmatic to understand their audiences better, and deliver messaging in line with audience habits.

audiences, and was achieved with high impact formats like homepage takeovers and other big ad units served using first party customer data to improve targeting.

cross-device impact on awareness and recall furthermore, a recent study from the Association of Online publishers (AOp)* found that a cross-device brand campaign for an automotive brand resulted in a 60% uplift in ad awareness compared to single-device exposure in a campaign for a premium car marque. The study also saw brand consideration increase from 6% (when ads were served on a single device) to 30%, and recommendation increase from 0% to 15%.

*www.ukaop.org/event/15th-april-mobile-forum/


CONCLUSIONTHE TIME TO INVEST IN PROGRAMMATIC FOR BRANDING IS NOW.

With the help of some of the industry’s most influential names, this white paper has provided the evidence any brand needs to make a conclusive case for their own investment in programmatic advertising.

IT’S TIME TO BUST SOME OF THOSE MYTHS YOURSELF AND REAP THE REWARDS!

There are a large number of myths surrounding the programmatic advertising market. Myths that can be very dangerous in leading marketers to take the wrong path. Programmatic advertising provides one of the biggest opportunities marketers have ever seen and it’s crucial brands realise the real truth behind these myths.

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Produced by The Drum Works, the branded content arm of The Drum, Europe’s biggest marketing website.


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