Create - Day 2 - 13:30 - Programmatic 101 with David Frew, IAB UK
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This document discusses programmatic advertising and issues related to it. It provides definitions of key terms like programmatic trading. It also summarizes data on the growth of programmatic advertising in the UK, finding that it accounted for 45% of online display advertising in 2014, up from 28% in 2013. The document also examines factors that may continue driving future growth of programmatic and discusses some concerns of media owners, like fraud, data leakage, and lack of viewability standards.
Create - Day 2 - 13:30 - Programmatic 101 with David Frew, IAB UK
- 2. SOURCE: IAB / PwC Digital AdspendFull Year 2014iabuk.net UK Digital Adspend 2014
- 3. Display catching up on Search SOURCE: IAB / PwC Digital AdspendFull Year 2014iabuk.net
- 4. Mobile accounts for over one fifth of all digital advertising SOURCE: IAB / PwC Digital AdspendFull Year 2014
- 5. Mobile display almost doubled on a like for like basis SOURCE: IAB / PwC Digital AdspendFull Year 2014
- 7. The Evolution of Online Display Advertising - Video http://www.iabuk.net/video/the-evolution-of-online-display-advertising iabuk.net
- 8. 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
- 9. A wide range of industry participants contributed to the research 31 survey respondents 13 intermediary interviews 14 media agency and expert interviews SOURCE: IAB Media Owner Sales Techniques 2014
- 10. 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
- 11. 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
- 12. 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%
- 13. • 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
- 14. 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
- 15. 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
- 16. Brand Safety, Viewability and Fraud 04/11/2015iabuk.net
- 17. 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
- 18. 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
- 19. Guideline metrics iabuk.net Standard Display 50% of the ad Viewable for a minimum of 1 second Large Canvas Display 30% of the ad Viewable for a minimum of 1 second Video In-stream (Not yet released in UK) 50% of the ad Viewable for a minimum of 2 consecutive seconds
- 20. 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
- 22. 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