Post on 14-Jan-2017
IAB AdTech & Data | Joanna O’Connell, CMO MediaMath
Trending and Here to Stay
The Reign of Programmatic
©2016 MediaMath Inc. 2
“It no longer makes economic sense to send a message to the many in hopes of persuading the few.”
-‐ Lawrence LightFormer CMO, McDonald’s
©2016 MediaMath Inc. 3
“Why would I not buy media in a way that I can get data back and use it to make smart decisions?”
-‐ Bonin BoughVP, Global Media & Consumer Engagement, Mondelez International
©2016 MediaMath Inc. 4
“It’s silly that ‘programmatic’ is this special thing. [More efficient targeting] is the
most useful thing for us. We won’t spend less money. We’ll spend more in digital. We’ll get a better ROI.
It’s a virtuous cycle.”
“There’s a little bit of laziness and a little bit of fear on [the big media agencies’] side and on the sites’ side that programmatic will ruin them – I don’t think
that at all. Not understanding it is what will really ruin them.”
From the mouth of a real marketer (honest)
©2016 MediaMath Inc. 5
But what IS Programmatic?
Humans using the automation of process and decisions, driven by data and powered through
machines, to deliver business outcomes
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Some Context May Help…
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Mid – Late 1990s
Mid – Late 2000s
Present Day
The FutureComing Soon
In the US, it all started in the 90s
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Evolution of Programmatic in US Transformed Five Big Areas
AudienceMedia Intelligence Talent
Platform
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Evolution of Programmatic in US: Audience
3P Behavioral and Contextual
1P Onboarding
2P Coop
IdentityDemographics
Audience
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Evolution of Programmatic in US: Media
BulkMedia Buys
Exchanges/SSPs
DSP
Private Deals & Curated
Marketplaces
CDN Infrastructure
Header Bidding
Pub Buys
Media
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Evolution of Programmatic in US: Intelligence
Integrated Attribution
Last Click Optimization
Standalone Attribution
Incremental OutcomesMachine Learning
Publisher-‐defined Metrics
Intelligence
©2016 MediaMath Inc. 12
Evolution of Programmatic in US: Talent
DomainExpertise
Arbitrage Outsource
Transparent ManagedOutsource Triumvirate
Talent
In-‐House Expertise
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Evolution of Programmatic in US: Platform
Multi-‐Tennant UI
APIs & Customizable Interface
Single Tenant UI
Platform & Operating Partner
Platform
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So What Does All of This Mean For Buyers?
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From publisher driven… to marketer driven$20 VPM
$12 VPM
$2.50 VPM
$.75 VPM
$4.25 VPM$6 VPM
$6 CPM
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From random guesses… to true audience targeting
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From siloed… to unified
Programmatic Software
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From display only… To omni channel and omni platform
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Brazil’s OpportunityGood news -‐ some of you have already made the leap!
AudienceMedia Intelligence Talent
Platform
Shift from ad networks to curated markets via
PMPs
Inheritance of mobile as dominant strategy
Activation of 1P data via DMPs; reduced reliance on
3P data
Shift from click-‐centric measurements to true
business KPIs
Embrace of programmatic training and certification
Insistence on a unified view of customers across devices
Client demand of transparency and results right from the get-‐go
Emergence of multi-‐relational model
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Where We’re Going
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Source: AdExchanger.com 9/28/15 “Magna Global: Programmatic Will Eat Half Of Display And Video Ad Budgets By 2019”
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015 2019
Global Programmatic Penetration
Programmatic Non-‐Programmatic
76%
24%
69%
31%
50%
50%
Programmatic continues its global growth… look at 2019!
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Key Brands Are Vowing to Go Programmatic First
“ Telstra already has 65% of its digital spend going through programmatic…Their ambition is to have 80% going through some sort of programmatic capacity by the end of the year.
““ American Express would like to transform
their Display Media Channel to become 100% programmatic.
““ Procter & Gamble wants to buy 70% to
75% of its U.S. digital media programmatically by the end of this year
““ We’ve [Kellogg’s] seen tremendous results
when using programmatic buying. Depending on the brand, the digital media ROIs have increased as much as six times
“
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Ad Tech and Mar Tech will converge
The convergence of Ad Tech and Mar Tech is connecting the dots between paid media and marketers’ owned channels
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“Programmatic Marketing” will power the full range of marketing touchpoints, whatever a marketer’s goal, in whatever channel
• Display• Video • Mobile• Paid Social• Search• TV
Targeted Reach and Frequency
+Ensuing
anonymous action(s)
Engagement with/across brand(s)
Conversion to customer
Loyalty, cross-‐sell, upsell
First anonymous digital touch
point
Managing A Consumer’s Journey
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So What Should You Do TODAY to Be A Part of That Future?
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Scale by creating a virtuous cycle
A simple formula!
Increase Marketer ROI, reduce LOE
Focus on win-‐wins: share in ROI in order to incentive partners to expand footprint
Expand programmatic footprint (more
touchpoints, better data = quality decisions)
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Scale by investing in success AND innovation
80% Proven & Scalable
20% Innovation
©2016 MediaMath Inc. 28
In Summary
§ A prescription to accelerate and scale
§ Fully embrace Programmatic; learn from the past
§ Follow the virtuous cycle
§ Invest for the future