Programmatic 101

1. Programmatic 101
04/11/2015iabuk.net

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

6. Brokers
Technology Providers
Sellers
Data
Providers
Buyers
Simpler than we think

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

21. Anti-Fraud Commercial Group

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”
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23. david@iabuk.net
04/11/2015iabuk.net