2014 Global Programmatic Insights Report: From Scale to Sophistication
- 1. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header 2014 Global Programmatic Insights Report: From Scale To Sophistication Copyright © 2015 OpenX Inc. All Rights Reserved
- 2. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header About OpenX ! OpenX pioneered programmatic advertising marketplaces. We operate one of the first, largest and highest quality programmatic marketplaces for digital advertising, delivering 120+ billion monthly ad requests in 190+ countries. ! OpenX Ad Exchange is used by all of the Top 100 AdAge advertisers and most of the comScore top 100 publishers. ! Our platform connects 1,200+ publishers with 34,000+ advertising buyers.
- 3. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header About This Report ! The 2014 Global Programmatic Insights Report is our first study of both buying and selling behaviors in the OpenX marketplace. Our unique visibility into programmatic trends provides a comprehensive picture of the health and direction of the market, and we’re thrilled to be able to share it with you here.
- 4. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Methodology ! The data presented in this report is generated by the OpenX Ad Exchange which processes and delivers digital ad impressions globally. Our analysis is based on data from January 2013 through December 2014, in order to capture trends in our programmatic platform. Specifically, we use ad calls to our platform to illustrate the reach of our publisher ecosystem, and ad spend to depict the adoption of programmatic by advertisers.
- 5. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Copyright © 2015 OpenX Inc. All Rights Reserved 5 Scale Sophistication We have seen adoption of programmatic advertising grow every year since 2009. There’s no question that by 2014, we had reached “Scale.”
- 6. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Copyright © 2015 OpenX Inc. All Rights Reserved 6 Both sides of the marketplace saw healthy growth. Demand (ad spend) and supply (ad requests) were both up YoY. Supply! (Ad Requests) Demand! (Ad Spend) 26% 64%
- 7. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Copyright © 2015 OpenX Inc. All Rights Reserved 7 Growth in demand spanned across industries… CPG Insurance Health & Beauty Retail Telecom 86% 86% 83% 78% 65%
- 8. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Copyright © 2015 OpenX Inc. All Rights Reserved 8 …With typical seasonal spending patterns. Media & Entertainment CPG Financial Services Travel Retail Categories with 10% above average spending 1H 2014 2H 2014
- 9. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Copyright © 2015 OpenX Inc. All Rights Reserved 9 Users spanned the globe. Nearly half of the ad requests originated from outside the United States. Canada 3% US 52% LATAM 4% EMEA 20% APAC 21%
- 10. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Copyright © 2015 OpenX Inc. All Rights Reserved 10 Advertisers bought significantly more audiences worldwide. CanadaUS Argentina Turkey Japan South Korea Mexico Philippines Hong Kong Singapore Indonesia South Africa Portugal Ireland UK Sweden Egypt Italy Poland >100% 80%-100% 50%-80% 30%-50% Spain Denmark YoY Growth by Ad Spend
- 11. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Copyright © 2015 OpenX Inc. All Rights Reserved 11 By achieving “Scale,” we reached a new level of “Sophistication.” Scale Sophistication
- 12. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Copyright © 2015 OpenX Inc. All Rights Reserved 12 We saw expansion of programmatic across all dimensions. FormatsScreens Buying/Selling Models
- 13. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Copyright © 2015 OpenX Inc. All Rights Reserved 13 Mobile app ad requests grew 4x faster than mobile web Mobile Web Mobile App Annual Growth 1000% 800% 600% 400% 200% 0 Mobile ad requests nearly tripled in volume since 2013 and accounted for 25% of total ad requests Mobile 25% Desktop 75% Screens 4X New types of publishers came on board and programmatic grew across screens.
- 14. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Copyright © 2015 OpenX Inc. All Rights Reserved 14 Mobile led much of the global growth in supply… More than 40% of the mobile ad requests came from abroad. Canada 3% US 58% LATAM 3% EMEA 18% APAC 18% Screens
- 15. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Copyright © 2015 OpenX Inc. All Rights Reserved 15 …And drove growth in demand. Screens Desktop Mobile YoY Growth in Ad Spend 250% 200% 150% 100% 50% 0 4X
- 16. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Copyright © 2015 OpenX Inc. All Rights Reserved 16 More ad formats were added… Formats 320x50 300x600 970x250 160x600 300x250 +158% +77% +56% +46% +33% YoY growth in ad requests.
- 17. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Copyright © 2015 OpenX Inc. All Rights Reserved 17 …And more buying and selling models were created... Buying/Selling Models News Health & Fitness Lifestyle & Entertainment Social Networking Gaming PMP by Ad Spend Preferred Deals 20% Private Auctions 80% Private Marketplace (PMP) deals saw growth across multiple categories
- 18. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Copyright © 2015 OpenX Inc. All Rights Reserved 18 …Which led to the availability of more premium inventory and higher yields. Buying/Selling Models Open RTB eCPM Private Marketplace eCPM 3X
- 19. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header Copyright © 2015 OpenX Inc. All Rights Reserved 19 Key Findings Programmatic advertising enjoyed strong growth in 2014, with a 64% jump in ad spend and a 26% increase in supply.! ! Growth in demand was primarily driven by five industries (CPG, Insurance, Telecom, Retail, and Health & Beauty), accounting for nearly 40% of total ad spend.! ! Our trusted publisher ecosystem reached users across the globe with almost half (48%) of all ad requests stemming from outside the U.S. Meanwhile, buyers increasingly spent their advertising dollars on audiences outside the U.S., primarily in Europe and Canada. Mobile ad requests nearly tripled in volume since 2013, while demand for mobile inventory grew 4x faster than demand for desktop ad units.! ! Newer ad formats (e.g. 320x50, 300x600 and 970x250) saw the highest increase in adoption, allowing advertisers to deliver more interactive and impactful ads (e.g. IAB Rising Star formats).! ! Publishers from various categories increasingly explored newer programmatic models. For example, private marketplaces resulted in a 3x higher eCPM than RTB open auctions by delivering premium inventory and richer audience data. Scale Sophistication
- 20. Header Minimal Footer Branded Header Branded Footer Minimal Footer Work cited Header We hope you’ve found the results of our study insightful. To learn more about how OpenX solutions can help you make the most of your advertising, please: ! • Visit us at www.openx.com • Send us an email at sales@openx.com • Call us at +1-855-673-6948 (U.S.) or +44-800-587-3690 (Europe)