Evento AdTech & Data 2016 - The Reign of Programmatic - Joanna O'Connel - MediaMath

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


“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


“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)


But what IS Programmatic?

Humans using the automation of process and decisions, driven by data and powered through

machines, to deliver business outcomes


Some Context May Help…


Mid – Late 1990s

Mid – Late 2000s

Present Day

The FutureComing Soon

In the US, it all started in the 90s


Evolution of Programmatic in US Transformed Five Big Areas

AudienceMedia Intelligence Talent

Platform


Evolution of Programmatic in US: Audience

3P Behavioral and Contextual

1P Onboarding

2P Coop

IdentityDemographics

Audience


Evolution of Programmatic in US: Media

BulkMedia Buys

Exchanges/SSPs

DSP

Private Deals & Curated

Marketplaces

CDN Infrastructure

Header Bidding

Pub Buys

Media


Evolution of Programmatic in US: Intelligence

Integrated Attribution

Last Click Optimization

Standalone Attribution

Incremental OutcomesMachine Learning

Publisher-‐defined Metrics

Intelligence


Evolution of Programmatic in US: Talent

DomainExpertise

Arbitrage Outsource

Transparent ManagedOutsource Triumvirate

Talent

In-‐House Expertise


Evolution of Programmatic in US: Platform

Multi-‐Tennant UI

APIs & Customizable Interface

Single Tenant UI

Platform & Operating Partner

Platform


So What Does All of This Mean For Buyers?


From publisher driven… to marketer driven$20 VPM

$12 VPM

$2.50 VPM

$.75 VPM

$4.25 VPM$6 VPM

$6 CPM


From random guesses… to true audience targeting


From siloed… to unified

Programmatic Software


From display only… To omni channel and omni platform


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


Where We’re Going


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!


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

“


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


“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


So What Should You Do TODAY to Be A Part of That Future?


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)


Scale by investing in success AND innovation

80% Proven & Scalable

20% Innovation


In Summary

§ A prescription to accelerate and scale

§ Fully embrace Programmatic; learn from the past

§ Follow the virtuous cycle

§ Invest for the future

Evento AdTech & Data 2016 - The Reign of Programmatic - Joanna O'Connel - MediaMath

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