create - day 2 - 13:30 - programmatic 101 with david frew, iab uk
TRANSCRIPT
Programmatic 10104/11/2015iabuk.net
SOURCE: IAB / PwC Digital Adspend Full Year 2014iabuk.net
UK Digital Adspend 2014
Display catching up on Search
SOURCE: IAB / PwC Digital Adspend Full Year 2014iabuk.net
Mobile accounts for over one fifth of all digital advertising
SOURCE: IAB / PwC Digital Adspend Full Year 2014
Mobile display almost doubled on a like for like basis
SOURCE: IAB / PwC Digital Adspend Full Year 2014
Brokers
Technology Providers
Sellers
DataProviders
Buyers
Simpler than we think
The Evolution of Online Display Advertising - Video
http://www.iabuk.net/video/the-evolution-of-online-display-advertisingiabuk.net
We define programmatic as the use of automation in the buying and selling of inventory
• Programmatic trading is the use of automated systems and processes to buy and sell inventory
• This includes, but is not limited to, trading that uses real-time bidding auctions
Most industry participants appear comfortable with this definition
An agreed upon definition of “programmatic”
SOURCE: IAB Media Owner Sales Techniques 2013
A wide range of industry participants contributed to the research
31 survey
respondents
13intermediary
interviews
14media
agency and expert
interviews
SOURCE: IAB Media Owner Sales Techniques 2014
In 2013, 28% of total UK online display advertising was traded programmatically
28%programmatic
Online video
£0.25bn
Mobile display and video
£0.47bn
Desktop display
£1.14bn
SOURCE: IAB Media Owner Sales Techniques 2014
Programmatic trading grew rapidly in 2014, accounting for 45% of total UK online display advertising
45%programmatic
Mobile display and video
£0.47bn
Desktop display
£1.14bn
Online video
£0.28bn
Mobile display and video
£0.86bn*
Desktop display
£1.0bn*
* - Display affiliate advertising is excluded from the totals
SOURCE: IAB Media Owner Sales Techniques 2014
All three segments have grown – mobile is the most advanced in terms of programmatic
16%
37%
26%
2013
17%
64%
37%
2014
Mobile display and video
£0.47bn
Desktop display
£1.14bn
Online video
£0.28bn
Mobile display and video
£0.86bn
Desktop display
£1.0bn
SOURCE: IAB Media Owner Sales Techniques 2014
+1%
+27%
+11%
• Increased awareness of benefits• Alleviation of concerns, e.g. fraud
• Increased awareness of benefits• Case studies from market leaders• Pressure from agencies/advertisers
Programmatic will grow over the next 3 years, driven by
factors such as increasing awareness and capability
Sell-side factors Buy-side factors
• Further growth in mobile consumption• Attitudes towards data gathering
• Increased sophistication, e.g. ease of use
• Easier integration• Reduced installation and running costs
Technology factors Consumer behaviour factors
SOURCE: IAB Media Owner Sales Techniques 2014
80-90%
70-80%
60-70%
2018
Mobile
Desktop
Video
Total display
70-80%
Ceiling on growth?
• Formats sold only direct (e.g. sponsorship) account for 5% of display ad spend
• Some high end premium publishers prefer a direct sales model
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018
Programmatic is expected to grow rapidly, accounting for 70-80% of display ad spend in 2018
SOURCE: IAB Media Owner Sales Techniques 2014
Media owners see fraud and the complexity of the ecosystem of intermediaries as increasing concerns
Key barriers: % of respondents that believe this is an important factor
* n = 23 (18 in 2013), % of organisations who rated a factor 8/10 or higher on a scale of 1 = not at all important to 10 = very important
72%
67%
28%
44%
28%
70%
61%
52%
39%
48%
2013 2014
Concerns about brand safety
Concerns about data leakage and lack of transparency
Concerns about fraud
Concerns about viewability
Ecosystem of intermediaries remains complex and fragmented
SOURCE: IAB Media Owner Sales Techniques 2014
Brand Safety, Viewability and Fraud04/11/2015iabuk.net
Joint Industry Committee for Web Standards
Created by the UK and Ireland media industry to ensure independent development of standards for measuring performance online and benchmarking best practice for online ad trading
The New Landscape - New self-regulation required –Digital Trading Standards Group (DTSG)
DSPATDs SSPs
Advertiser/Agency
PublisherPublisher
Ad networks
Travel Retail
Retail Finance
1010101010
1010101010
1010101010
1010101010
Ad exchange
1010101010
1010101010
Guideline metrics
iabuk.net
Standard Display
50% ofthe ad
Viewablefor a
minimum of 1 second
Large Canvas Display
30% ofthe ad
Viewablefor a
minimum of 1 second
Video In-stream(Not yet released in UK)
50% of thead Viewable
for a minimum of
2 consecutive seconds
Examples of ad fraud
Bad Bots / Botnets
Hijacked computers that are taken over by 3rd parties and fraudulent activity
performed
Ad Stacking
Placing ads on top of one another, thus only rendering the
ad on top of the pile visible
Pixel Stuffing
Compressing ads within a 1x1 pixel,
unreadable to human eye
Anti-Fraud Commercial Group
Key objective
“Release of industry guidance and
guidelines to educate the wider
industry to minimise the perpetration
of ad fraud and create a safer, more
transparent supply chain”iabuk.net
[email protected]/11/2015iabuk.net