Programmatic in the Era of Transparency

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1 Programmatic in the Era of Transparency Trusted Media Brands - A STUDY CONDUCTED BY

2 Methodology and Respondent Profiles OMNIBUS STUDY Only Advertiser Perceptions talks to people who are actively making decisions about media brand selection Our Panel Includes Decision-Makers from the Top 200 Advertisers in the U.S. Leading Ad Categories 300 Online Interviews Conducted Apparel/Fashion Automotive Sample: Marketer and Agency contacts from The Advertiser Perceptions Media Decision Maker Database. Consumer Electronics Qualification: 100% involved in media brand selection decisions Consumer Packaged Goods Entertainment Financial Products/Services Home & Appliance Directional Data: Some findings in the presentation could reflect data with low bases and will be noted. Weighting: Data has been sample balanced and weighted to reflect relative agency/marketer influence. Liquor, Beer and Wine Parenthood Related Pharmaceuticals Quick Service Restaurants Retail Technology Telecommunications Toiletries & Cosmetics Travel Fielded: Incentives include cash and information Ranging in title: 40% VP and above 39% Director/Supervisor 21% Manager/Planner/Buyer Expressing opinions from: 60% Agencies 40% Marketers 2

3 OMNIBUS STUDY Advertisers Still Remained Most Concerned About ROI When Buying Digital Media Concerns About Digital Media Buying July 2017 ROI 30% 17% 15% 62% ROI 31% 15% 13% 59% Viewability 19% 18% 22% 59% Viewability 16% 22% 16% 54% Brand Safety/Premium Content 16% 24% 18% 58% Brand Safety/Premium Content 7% 19% 25% 51% Programmatic Transparency 9% 18% 17% 44% Ad Fraud 19% 14% 17% 50% Ad Fraud 15% 14% 13% 42% Programmatic Transparency 13% 16% 13% 42% Ad Blocking 10% 7% 11% 28% Ad Blocking 12% 11% 12% 35% Rank 1 Rank 2 Rank 3 Rank 1 Rank 2 Rank 3 QTMB1. Which of the following issues are you most concerned about when it comes to digital media buying? Base: Involved in Digital/Mobile Advertising 3

4 Digital Programmatic Spending is Evenly Split between Channels OMNIBUS STUDY Digital Programmatic Spending Allocation Average Percent Other programmatic approach 2% Programmatic Guaranteed: no auction, set CPM, guaranteed inventory 33% 34% Open Exchanges: RTB/auctionbased buying, variable CPM 31% Private Marketplaces: RTB/ auction-based buying, price floor, select group of advertisers QTMB2. What percent of your total digital programmatic spending is currently allocated to the following means of transaction? Base: Involved in Digital/Mobile Advertising (excludes the 12% that do not currently purchase programmatically) 4

5 OMNIBUS STUDY Advertisers are Most Optimistic about Programmatic Guaranteed and Private Marketplace Change in Programmatic Spending Optimism (Increase minus Decrease) Programmatic Guaranteed: no auction, set CPM, guaranteed inventory 29% 66% 5% 24 Private Marketplaces: RTB/auctionbased buying, price floor, select group of advertisers 31% 61% 7% 24 Open Exchanges: RTB/auction-based buying, variable CPM 21% 67% 12% 9 Increase Stay the same Decrease QTMB3. Will your programmatic spending with each of the following increase, stay the same or decrease over the next 12 months? Base: Involved in Programmatic 5

6 Levels of Agreement About Programmatic Buying OMNIBUS STUDY I'd like to see the programmatic marketplace become decentralized in the future by leveraging blockchain technology. 15% 33% 48% It's difficult to ensure brand safe environments when buying programmatically on the open exchange. 14% 47% 61% I do not see a lot of improvement in the transparency of buying advertising inventory on the open exchange. 14% 35% 49% The recent issues about consumer privacy/data protection has impacted or will impact my audience buying strategy. 13% 45% 59% The recent issues about consumer privacy/data protection make me more inclined to use programmatic guaranteed/private marketplaces vs. the open exchange. 10% 45% 55% The implementation of ads.txt has made programmatic buying more transparent. 10% 36% 46% Lifestyle publishers are more important than ever to ensure a brand safe environment for advertising. 10% 46% 56% I do not see a lot of difference today between buying programmatically on the open exchange or the private marketplace. 7% 27% 34% Agree Completely Agree Somewhat QTMB4. How much do you agree with the following statements about programmatic ad buying? (1-Disagree Completely, 5-Agree Completely) Base: Involved in Programmatic 6

7 OMNIBUS STUDY Better ROI and Access to Premium Inventory are the Top Reason Advertisers use Programmatic Guaranteed/Private Marketplace Top Reasons for Using Programmatic Guaranteed/Private Marketplaces vs. Open Exchange Drives better ROI 43% Agency 37% Marketer 51% Access to premium ad inventory 42% Agency 46% Marketer 37% Provides brand safe environments 39% Greater transparency in terms of inventory/contextual environment More efficient than whitelisting/blacklisting practices 37% 36% Agency 46% Marketer 23% Agency 40% Marketer 31% Access to proprietary data 30% Agency 33% Marketer 24% Drives better engagement 29% Greater economic transparency of the programmatic buy 29% Limit long tail inventory 21% QTMB5. Whether or not you re currently using Programmatic Guaranteed/Private Marketplaces, in your opinion, what are the top reasons for using Programmatic Guaranteed/Private Marketplaces vs. the Open Exchange? Base: Involved in Programmatic 7

8 OMNIBUS STUDY Biggest Frustration Buying Digital Advertising Inventory Programmatically Transparency (17%) Lack of transparency into what is happening at the ad exchange level, we are moving toward header bidding where our tech speaks directly to the pub - Agency, VP Fraud (12%) The degree of fraud that is ongoing Advertiser, VP The potential for ad and bot fraud - Agency, VP Brand safety (9%) Viewability (6%) Cost (5%) Ensuring that we're running on sites with which the brand would be comfortable appearing Agency, Director Balancing desired viewability with performance - Agency, Director Cost can be quite high - Agency, Director Lack of Control (4%) Lack of control where ads are displayed - Advertiser, Director None (15%) QTMB6. What is the biggest frustration you face in buying digital advertising inventory programmatically? Base: Involved in Digital/Mobile Advertising 8

9 Advertisers Have Already Taken Initiatives to Improve Brand Safety OMNIBUS STUDY Steps Taken to Improve Brand Safety of Digital Media Buys Increase use of programmatic guaranteed/private marketplaces 34% 44% Increase use of contextual targeting Whitelist specific sites/channels Blacklist specific sites/channels 29% 26% 24% 47% 55% Up 5% from July % Up 10% from July 2017 Demand more accountability from social platforms 34% 46% Avoid/limit political content/sites Avoid/limit user generated content/sites 27% 30% 48% 58% Up 8% from July 2017 Monitor/audit site lists 25% 56% Already Taken Plan to Take QTMB7. Which, if any of the following steps have you already taken or do you plan to take to improve brand safety of your digital media buys? Base: Involved in Digital/Mobile Advertising 9

10 OMNIBUS STUDY Advertisers will Start Using more First Party Data as an Effect of GDPR Effects in U.S. Due to Implementation of GDPR (General Data Protection Regulation) in the European Union More use of first party data vs. cookies 44% Consolidation of advertising technology companies 39% Increase use of Programmatic Private Marketplace/ Programmatic Guaranteed 36% 21% Stated I do not expect any impact in the U.S.. QTMB8. Which of the following will occur in the U.S. due to the implementation of GDPR (General Data Protection Regulation) in the European Union? Base: Involved in Digital/Mobile Advertising 10

11 Contacts: Randy Cohen Andy Sippel Justin Fromm What Advertisers Think The More You Know The Stronger Your Brand The More You ll Sell