An Introduction to Programmatic Trading Webinar

Transcription

1 An Introduction to Programmatic Trading Webinar Wednesday 1st April Good afternoon and welcome to the Webinar, we will start shortly

2 Today s presenters and agenda Introduction and agenda Alison Fennah, Executive Business Advisor, IAB Europe Introduction to Programmatic Trading and its benefits - Graham Wylie, Senior Director EMEA & APAC Marketing, AppNexus Operational Effectiveness Ben Crain, Chief Strategy Officer, Improve Digital European Programmatic Trading Landscape Oliver Gertz, Managing Director, MediaCom Markets roundtable: David Frew, Digital Programmes Manager, IAB UK Kick Zandbergen, Chairman Programmatic Taskforce, IAB Netherlands and Head of Partner Business Solutions Benelux, Google Simona Zanette, International Affairs & Event Consultant, IAB Italy and Member of Executive Committee and Board, IAB Europe Julian Simons, Chairman Committee Programmatic Advertising, BVDW and Managing Partner, Mediascale Summary Alison Fennah, IAB Europe Poll results Alison Fennah, IAB Europe Q&A 2

3 Introduction to Programmatic Trading and its benefits

4 What is Programmatic Trading? 4

5 Benefits of Programmatic 1 Where the market is inefficient A B Programmatic increases efficiency 2 A B Traditional Buying Pre-negotiated fixed price Users grouped over periods of time Lack of campaign levers Limited scale User duplication Programmatic Buying Dynamic pricing Users are assessed in real time Limitless optimisation Increased scale Single user frequency cap 5

6 Benefits of Programmatic Key benefits of programmatic Improve targeting React in real time 50% 54% Reduce wastage Personalise adverts GTM faster Track success of campaigns 35% 33% 30% 30% Cheaper advertising Better value impressions 24% 22% More creative advertising 16% Source: IAB Europe, AppNexus and WARC study 6

7 Stakeholder adoption Use of programmatic by organisation type 79% 48% 46% 22% Media Buying Agencies Publishers Advertising Agencies Marketers Source: IAB Europe, AppNexus and WARC study 7

8 Operational Effectiveness

9 Operational effectiveness 100% 90% 80% 70% 60% 50% 40% Overheads Media Spend 30% 20% 10% 0% TV Traditional Display 9

10 What does programmatic mean for sales? Reduced time spent on administration and operations; more time for client solutions Improved execution process for all involved Increased focus on high-touch sales engagements and high-margin deals & packages Automate and optimise smaller deals, volume buys, and secondary inventory 10

11 What about ad operations? From a focus on trafficking of campaigns to - Emphasis on data collection, reporting, and performance analysis - The first and last stop in yield optimisation - Active price management for all sales channels - Analysing and optisiming: people, process, tools 11

12 A process, not a channel Buy-Side? Taking programmatic mainstream We are taking programmatic planning and activation services closer to the media planning process, where programmatic expertise belongs. Our media agencies have more programmatic capacity than ever before, and will be equipped like never before - Publicis / Vivaki source, ExchangeWire, Feb 2015 Sell-Side? Reconceiving sales strategies 1. Basic RTB-as-Remnant Some gains in operational efficiency Some gains in yield Benefit is only seen for least valuable inventory 2. Intermediate Programmatic Direct Incremental revenue from opportunistic sales; Development of datadriven programmatic product set 3. Advanced Holistic Sales Equal focus on direct and programmatic; strategic channel management A single approach to optimisation; the end of the waterfall 12

13 European Programmatic Trading Landscape

14 Changing Programmatic Landscape CPC CPM Performance CPM CPM CPA RTB CPM Deals Direct 14

15 Online advertising revenue generated through programmatic mechanisms exceeded 2bn in ,079m +111% year on year m Source: IHS/IAB Europe Programmatic Sizing Initiative IHS

16 Markets across Europe vary 82M 66M 64M PEOPLE (67m 50m 52m online) 1.3bn 2.2bn 1bn DISPLAY Source: IAB Europe AdEx Benchmark 2013 report and Eurostat (2013) 16

17 Markets roundtable

18 Markets roundtable UK Germany The Netherlands Italy 18

19 46% of all trading in the UK will be programmatic by the end of % 60% 50% 40% 30% 20% Mobile adspend will shift rapidly as new advertising products come online while online video will shift more slowly due to concentration of sales amongst a small number of media owners 10% 0% Source: IAB UK and MTM London

20 Programmatic traded display advertising in The Netherlands realised a revenue growth of almost 39% in % % H H H H H H

21 Programmatic Trading in Italy 21

22 Programmatic Trading in Germany: market share of online-display spendings (estimate) 2013 to 2014 with a forecast for

23 Summary Programmatic has matured beyond RTB to performance, deals and direct Drives efficiency for buyer and seller Adoption is increasing across markets Lack of education is the biggest hindrance Missed opportunity to see how to build brands, at scale, across cannels Technology needs to evolve further for greater transparency and inventory discovery, and consistency in metrics and measurement 23

24 Poll results

25 Q&A Please address any further questions and comments to Alison Fennah

26 Thank you for attending Next steps: Watch the Webinar recording on the IAB Europe website Download the IAB Europe Programmatic Trading White Paper from the IAB Europe website Survey at the end of this Webinar please provide your feedback

27 Contact Alison Fennah, IAB Europe Marie-Clare Puffett, IAB Europe Connect with IAB Europe