emarketer webinar: programmatic advertising—rising investment and new realities

46
© 2016 eMarketer Inc. Programmatic Advertising: Rising Investment and New Realities Lauren T. Fisher Senior Analyst September, 2016 Made possible by

Upload: emarketer

Post on 15-Apr-2017

934 views

Category:

Marketing


0 download

TRANSCRIPT

© 2016 eMarketer Inc.

Programmatic Advertising:

Rising Investment and New Realities

Lauren T. Fisher

Senior Analyst

September, 2016

Made possible by

© 2016 eMarketer Inc.

Agenda

Defining programmatic display advertising

Quantifying programmatic ad investment

Highlighting five key trends moving the market

© 2016 eMarketer Inc.

What is programmatic advertising?

An automated,

technology-driven

method of buying,

selling or fulfilling ad

placements

Image Credit: Shutterstock

© 2016 eMarketer Inc.

When we say ‘digital display’ ads at eMarketer:

Banners

Sponsorships

Rich Media

Video

Native

Social

© 2016 eMarketer Inc.

Marketers’

use of

programmatic

permeates

the majority

of all

display-based

ad formats

and channels

in the US

© 2016 eMarketer Inc.

Within

programmatic,

there are two

main transaction

methods:

real-time bidding

(RTB) and

programmatic

direct

© 2016 eMarketer Inc.

A word about programmatic direct and private

marketplaces (PMPs):

Image Credit: Shutterstock

© 2016 eMarketer Inc.

Programmatic Investment

in the US

© 2016 eMarketer Inc.

Nearly

three-quarters

of US digital

display ad dollars

will be traded

programmatically

in 2016

© 2016 eMarketer Inc.

More than half

of those

dollars will

transact via

programmatic

direct

channels

© 2016 eMarketer Inc.

But when excluding social giants Facebook and

Twitter, that number is much, much smaller

53.0%

Programmatic direct share of total

programmatic ad spending in 2016

22.0%

Programmatic direct portion

excluding Facebook and Twitter

© 2016 eMarketer Inc.

Within RTB,

open exchanges

will maintain a

majority share

through 2018,

but private

marketplaces’

portion will

grow each year

© 2016 eMarketer Inc.

Many of today’s biggest digital advertising

challenges push buyers and sellers toward PMPs

“Buyers are a lot more attracted to

the private exchanges where

they can effectively manage fraud and

address viewability issues. ”

—Paulina Klimenko, Senior Vice President,

Corporate and Business Development,

Pubmatic

© 2016 eMarketer Inc.

Combined, private and direct setups dominate

the programmatic landscape through 2018

76.2%

of total

programmatic ad

spending by 2018

Image Credit: Shutterstock

© 2016 eMarketer Inc.

Three-quarters of all mobile display ad dollars

will be spent programmatically in 2016

That portion will

climb to

83.0%, or

$29.44 billion, by

2018

Image Credit: Shutterstock

© 2016 eMarketer Inc.

Here again, big players Facebook and Twitter

significantly skew percentages

Programmatic

direct’s share of

mobile programmatic

ad spending

excluding Facebook

and Twitter in 2016:

22.5%

© 2016 eMarketer Inc.

The scales will finally tip on programmatic video

advertising in 2016:

60.0%

of US digital video

ads will transact

programmatically,

rising to 74.0% by

2018

© 2016 eMarketer Inc.

Greater comfort with audience-driven buying is

drawing in both buyers and sellers

“We are seeing premium publishers

recognizing the power of using data

to find coveted audiences in

different ways other than targeting on

content or shows. However, they are

mostly looking to do that in private

and more direct settings.”

—Lauren Wiener, President, Buyer Platforms,

Tremor Video

© 2016 eMarketer Inc.

But for now,

desktop will

see the bulk of

programmatic

video ad action

© 2016 eMarketer Inc.

Interest in programmatic TV advertising will also

drive programmatic video growth

Image Credit: Shutterstock

© 2016 eMarketer Inc.

But

programmatic

TV’s rise is

just getting

underway

© 2016 eMarketer Inc.

Forecast Recap:

Programmatic advertising is now the norm across the

majority of channels and digital display ad formats

More private setups, such as programmatic direct and

PMPs, will prevail

Growth in big players like Facebook and Google will

continue to drive programmatic, particularly mobile

Publishers and brands are finally coming around to

programmatic’s use for digital video advertising

© 2016 eMarketer Inc.

Five Driving Forces to Watch

© 2016 eMarketer Inc.

Cross-device consciousness will drive

added investment in mobile and video

1

© 2016 eMarketer Inc.

Today, walled garden players like Facebook and

Google still have an advantage

Image Credit: Shutterstock

© 2016 eMarketer Inc.

Added improvements to bridging digital and

offline data are also driving growth

Image Credit: Shutterstock

© 2016 eMarketer Inc.

But how fast dollars shift depends on how

quickly metrics and measurement are enabled

© 2016 eMarketer Inc.

The demand for first-party data will fuel

interest in private deals and cross-

platform integrations

2

© 2016 eMarketer Inc.

First-party

data is now

critical for

reaching the

right

audiences

within digital

© 2016 eMarketer Inc.

That premium is manifesting in a variety of ways

Greater use of PMPs and programmatic direct

Greater desire for programmatic platforms supporting

cross-device and cross-channel efforts

Greater convergence between ad tech and marketing

tech

© 2016 eMarketer Inc.

The end goal is using first-party data from all

channels and inputs

“Marketers are leaning in [to programmatic]

because they are starting to isolate

data sets much better than they ever

have. They are using those for marketing,

for in-store work and for site behavior, and

they want to enable those same data

insights on their digital advertising. ”

—Sean Downey, Vice President, Media

Platforms, Google

© 2016 eMarketer Inc.

The desire for more holistic efforts

breeds desire for fewer but more

holistic tools

3

© 2016 eMarketer Inc.

Many buyers and sellers seek to simplify their

tech stacks

“If you’re in the platform business

explicitly, your customer is going to

ask you to make your platform as

comprehensive as possible,

because no one wants to use

multiple platforms.”

—Matt Greitzer, Co-Founder and COO,

Accordant Media

© 2016 eMarketer Inc.

The industry’s ability to address ad

quality issues will make or break

brands’ investment in programmatic

4

© 2016 eMarketer Inc.

Fraud,

viewability and

transparency are

all top-of-mind,

but cleanup is far

from done

© 2016 eMarketer Inc.

Until resolution arrives, brand spend will remain

at bay

“There’s definitely demand for

programmatic video, and our

advertisers want to spend more

money here. But the hesitation is

there is a lot of fraud in

online video. There needs to be a

lot of scrutiny in that space.”

—Carol Chung, Senior Vice President,

Media Technology, Digitas LBi

© 2016 eMarketer Inc.

Publishers will continue to lean on

header bidding to drive greater

revenues and advertiser competition

5

© 2016 eMarketer Inc.

With header bidding, programmatic is promoted

to the head of the class

“The idea of programmatic being remnant

or farther down the waterfall is officially

dead. With the rise of header bidding, it

means that every impression is

now up for auction.”

—Jeremy Hlavacek, Vice President, Global

Automated Monetization, The Weather Company

© 2016 eMarketer Inc.

Header bidding’s future is bright but uncertain

Image Credit: Shutterstock

© 2016 eMarketer Inc.

Key Takeaways

Interest in cross-device and an audience-centric view will

continue to drive additional mobile and video growth

First-party data—from all channels and sources—will serve as

prime programmatic ammunition

As brands center programs on first-party data, they will

inevitably look to platforms most compatible to do so

Issues of ad quality will temper programmatic investment so

long as they remain

Header bidding will prove pivotal to drive added value for

publishers and advertisers

© 2016 Adobe Systems Incorporated. All Rights Reserved.

Creative

Audience Media

Audience

Manager,

Analytics

Media

Optimizer

Dynamic Creative

Optimization

Adobe’s

Programmatic

Ad Stack

© 2016 Adobe Systems Incorporated. All Rights Reserved.

Media

Search Display Social

Programmatic Ad Buying

Across Channels & Inventory

Partners

Adobe Media Optimizer

© 2016 Adobe Systems Incorporated. All Rights Reserved.

ADOBE

MEDIA OPTIMIZER

ADOBE

ANALYTICS

Audience

ADOBE

MARKETING CLOUD

ADOBE

AUDIENCE

MANAGER

© 2016 Adobe Systems Incorporated. All Rights Reserved.

Creative

Dynamic Creative

Optimization

Deliver the most relevant &personalized display ad in real-time to drive user engagement

© 2016 Adobe Systems Incorporated. All Rights Reserved.

Pete Kluge

[email protected]

www.adobe.com/marketing-cloud/online-advertising-management

Adobe Media Optimizer YouTube Channel

Blogs.adobe.com/digitalmarketing/advertising

© 2016 eMarketer Inc.

Learn more about digital marketing with an

eMarketer corporate subscription

Around 200 eMarketer reports are published

each year. Here are some recent reports you

may be interested in:

Q&A Session

You will receive an email tomorrow with a link to view the

deck and webinar recording.

To learn more: www.emarketer.com/products

800-405-0844 or [email protected]

Lauren T. Fisher

Programmatic Advertising:

Rising Investment and New

Realities

US Programmatic Ad Spending Forecast: Most Mobile Display

and Video Ad Dollars to Be Automated by 2018

UK Programmatic Advertising Forecast: Market Maturation

Leads to Greater Confidence in Automated Trading

App Inventory: Programmatic’s Diamond in the Rough

Header Bidding: What’s Behind This Popular Trend?

Television Update Q2 2016: Advanced TV’s Progress

Made possible by