1. Media Economy Report Vol. 04
Media
Economy
Report
Better, Smarter,
Faster: How Data
is Changing our
Business.
Vol. 04
January 2014
Magna Global
© 2014 MAGNA GLOBAL USA, Inc. All Rights Reserved
All property, including trademarks, are the property of their
respective owners and have, as applicable, been licensed for use.
Supply Demand New Value Drivers

2. Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 3
Supply
Pervasive consumer connectivity
06 generates tons of new data for targeting
Page Demand
Programmatic activity of all types
16 now permeates digital media
Page New Value Drivers 24
Timing is becoming and increasingly important
aspect of reaching receptive consumers
Page CONCLUSION
Insights for a competitive
34 advantage
Page Building
the
Future
We are in the midst of the next great transformative era
in the media business. The digital age, supported by
data, technology, and predictive analytics has created a
new opportunity to be more precise, more efficient, and
more effective with our clients’ media investments.
Programmatic trading, born out of necessity to harness
the explosion in display inventory along the digital long
tail, has blasted open the door to new ways of thinking
about media...
Strategies and technologies that have come of age in the
past two years in digital are now available to improve and
to transform ALL transactions across the traditional and
the digital landscape. Not only to make our media work
harder, but also to eliminate the low value, manual pro-cesses
that still dominate the current media work flow.
Table
Of Contents
New ways of identifying who
your customers are.
New ways of reaching and influ-encing
them at critical moments.
New ways of discovering the 50%
of advertising that works, and avo-iding
the 50% that doesn’t.
We want agencies staffers, clients, and media owners
to spend more time on high level custom solutions that
drive client business results, and less time on chasing
proposals, units, and invoices.
And, as we move toward automation, toward better use
of our people’s time, and toward better use of data and
technology, we create an opportunity where EVERYONE
can win. Let’s break out of the zero sum game between
agencies, clients, and media owners and seize this
opportunity to all grow together.
Marketers: Better understanding of customer behavior
and improved ROI with less waste.
Media Owners: Better understanding of their viewers
with improved yield through audience optimization.
Agencies: Time freed up for higher-value activity and
increased opportunity to be compensated based on
results instead of FTE hours.
Thank you to the dozens of real live humans that
contributed to this report on data and the improved
processes it creates. I hope that all of us, human and
machine, can work together this year to drive the
media business forward.
Best,
Todd Gordon
EVP, US Director
MAGNA GLOBAL

3. Begin with Objective, e.g. sell more units
Smaller, more targeted
audience most likely to buy
Big Data Does Not
Mean Smart Data
Beginning with Demographic
income
Pitfalls
sex
age
Assumes all women with these characteristics behave
the same
Disregards males that may be in market for your product
or service
Decision based on opinions about what will drive
business rather than demonstrable indicators
First Layer – begin with clear behaviors of likely
buyers, e.g. visited website, searched for product, etc. 01
02 Algorithms and machine-based
learning uncover previously
unrecognizable patterns
Past behavior is a better predictor of
future behavior than age or sex.
Traditional
Approach
Nuanced
Approach
Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 5

4. Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 7
Key Takeaway
Supply
Traditionally, “supply” has simply referred to the potential audience available
to see an ad message. However, constant connectivity has created a double-edged
sword that both challenges our ability to capture consumer attention and
generates a host of new data points with which to identify receptive audiences.
“Opportunity to see” is no longer enough—“likelihood to notice,” and ultimately,
“likelihood to purchase” are the characteristics we are striving for.
1. Aligning data from across the behavioral spectrum—from media exposure
to sales results—creates a robust targeting methodology that drives better
decision making in national TV trading.
2. Moving from ratings to impressions in local TV trading will not only create
additional supply, but enable more automated transaction processes.
3. Impressions-based transactions will also create the opportunity for more
precise targeting locally.
4. In online media, the vast number of audience interactions allow marketers
to combine detailed behavioral data with contextual targeting.
5. For some categories, contextual targeting may actually be better at driving
online conversions than behavioral targeting.

5. Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 9
Audience Measurement
Platform (AMP)
Effectiveness
Measurement &
Optimization
01
02
03
04
Planning
& Buying Tools
Cross-platform
reach and affinity
indices
Programmatic
Buying
Search
Sales
Digital leads
Brand Perception
Change
Identifies audiences and media
strategies that deliver results
for our clients.
Going beyond traditional age and sex demography to
identify receptive consumers is the first step in an
enhanced national TV planning and investment process;
one that follows the same targets through exposure and
AMP pinpoints the relationship between TV
and digital ads by media type and the resulting
business outcomes.
TV Ads
Digital Ads
Case Study
IPG Mediabrands Client
Promotion type Purchase
Lift in
Awareness
Intent
Number of
Integrations
In Show Integration
ROS Vignette
Sneak Peek
Sponsorship
Stunted Programming
Block with Sneak
Peek
Total
Lift in
Video Views
107 149 477 20
143 142 294 46
123 147 187 51
169 145 997 12
163 159 281 31
138 148 333 160
In Percent – Q3 2012 thru Q1 2013
measures resulting brand outcomes. MAGNA GLOBAL’s
Audience Measurement Platform accomplishes this
by incorporating cost, observed media behavior, brand
health metrics, verified ad exposures, and sales data.
And in addition to measuring more traditional TV ad
campaigns, AMP is able to track custom integrations and
sponsorships.
MAGNA GLOBAL's Custom
Data Stack

6. Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 11
Target Consumer Forecast
and Plan Optimization
Enables data-driven targeting to optimize buying
efficiency and consumer reach
Delivers real-time analytics that provides audience
insight and enables on-the-fly buying optimization
Local TV trading
49.5
48.9
LA
38.2
37.7
DF
35.3
34.7
CHI
37.1
34.8
29.6
29.5
NY BOS
Low Rated Half Hours vs. Total Half Hours Increase in Available Inventory Using Impressions
Ingest target data
and goals
Forecast
Generate schedule
Ingest CPMs and adjust
Provide recommendation
Segment creative
Impressions reporting
Adjustment of creative
and schedule
Automated Execution
and Management
Place one multi-market execution
Confirm schedule and impressions
Insertion, verification, and invoicing
Export data
Provides a CPM-based model
that allows agencies to buy
across markets
WideOrbit for
Local Broadcast
agencies
Reach
Efficiency
62
Buying process
reduction
%
up to
Programmatic Buying
Platform
Directly connects agencies
with 75% of US TV stations
AL DF CHI NY BOS Buy
97
US DMAs in %
Local television inventory has long been traded on ratings, but
fragmentation has reduced the average rating size, rendering them
unstable and unpredictable. Moving to impressions-based trading
would accomplish the following:
1. Create additional supply by
turning tiny, fickle percentages
into hard numbers that can be
aggregated.
2. Make local TV more comparab-le
to other media.
3. Enable more precise tar-geting
when combined with
additional qualitative data.
4. Feed into new, more efficient
buying processes for both
broadcast and cable inven-tory.
1 2 3
Campaign
Optimization

7. Supply Demand New Value Drivers Media Economy Report Vol. 03 Page 13
Online Programmatic Goes
Beyond Audience Data with
Contextual Targeting
My media buyer agency
recommended it
Higher performance than
using one type alone
Greater accuracy than
using one type alone
Another partner (such as
a search agency, portal or
network)
My DSP or trading desk
recommended it
17
1 1
0
Demographic Interest Intent Remarketing
Female 18-24 Female 18-24
Tennis enthusiast
Female 18-24
Read tennis
racket reviews
Female 18-24
Added tennis
rackets to cart
Awareness Purchase & Loyalty
Case Study: Major Real Estate Company
Using DoubleClick Bid Manager
Goals Tactics Investment Mix
1. Drive lowest possible cost
per action
2. Prove value of display ads
in driving results
23%
20%
23%
34%
Predictive
Targeting1
Contextual
Targeting
Behavioral
Targeting
Re-Targeting 2
1 Anticipating actions based on previous behavior
2 Leveraging cookie pools built from
company website
Contextual drove the highest
click-through rate – at a cost-per-
action 50% lower than be-havioral
or predictive targeting.
Result
Contextual Re-Targeting Predictive Behavioral
%
0,12
0,10
0,08
0,06
0,04
0,02
0,00
Note: n=141 interactive marketers who combine contextual and audience targeting; numbers may
not add up to 100% due to rounding. Source: Forrester Consulting, "Display Media Buyers Value
Audience in Context"commissioned by Google, Sept. 18, 2012
35% of advertisers are using
contextual targeting in
their programmatic buys on
Google’s DoubleClick Bid Ma-nager
platform.
Leading
Reasons for
Buying
21
59 In Percent
35
%
75 25
50
BEHAVIORAL CNOTEXTUAL
Keyword-contextual
Based on the specific topic a
user is reading on a web page
Category-contextual
Based on the content cate-gory
of the web page
Language settings
Of the browser
Intent
In-market for pro-ducts
or services
Interests
Based on online
browsing activity
Remarketing
Re-engage based on
previous engagements
Other
Lookalike modeling, online-to-
offline, time of day
Environment
How the ad renders
based on user’s device
Location
Increased precision
Demographic
Age, gender, income
level, geography
Combining tactics (audience + contextual) can drive better results across
the marketing funnel, and can be utilized across formats (display, video),
screens, and inventory types (open auction or private marketplaces).
1. Maximize share-of-voice using
contextual targeting in addition to
audience targeting,
2. Use both display and video formats
3. Exclude below-the-fold impressions
4. Increased focus on private market-places
to augment open auction

8. Photo: David Sundberg/ESTO
Keith Camoosa
EVP
Research & Analytics
MAGNA GLOBAL
What’s your definition of big data?
Big data is the next generation of data warehousing
and business analytics and is poised to deliver top line
revenues cost-efficiently for enterprises. The grea-test
part about this phenomenon is the rapid pace of
innovation and change; where we are today is not where
we’ll be in just two years and definitely not where we’ll
be in a decade. This new age didn’t suddenly emerge.
It’s not an overnight phenomenon. It’s been coming for
a while. It has many deep roots and many branches. In
fact, database marketers were pioneers of big data back
in the 1960s!
So why does it seem to be a hot topic now?
There are three main reasons:
1. A perfect computing storm. Big data analytics are the
natural result of four major global trends: Moore ’s
Law (which basically says that technology always gets
Michael Minelli
Head of Business Development
Information Services
MasterCard Advisors
Author of Partnering with the CIO
(Wiley, 2007) and Big Data Big
Analytics (Wiley, 2013)
cheaper), mobile computing (that smart phone or mo-bile
tablet in your hand), social networking (Facebook,
Foursquare, Pinterest, etc.), and cloud computing
(you don ’t even have to own hardware or software
anymore; you can rent or lease someone else ’s).
2. A perfect data storm. Volumes of transactional data
have been around for decades for most big firms, but
the flood gates have now opened with more volume ,
velocity, and variety— the three Vs. This makes it ext-remely
complex and cumbersome with current data
management and analytics technology and practices.
3. A perfect convergence storm. Traditional data
management and analytics software and hardware
technologies, open-source technology, and commo-dity
hardware are merging to create new alternatives
for IT and business executives to address big data
analytics.
Do you make a distinction between smart data & big
data?
In general, I see “smart data” as the lens to deriving
value from “big data”. This “lens” is a mix of smart
people, technology tools, and most importantly pro-per
direction from management on where the focus
and providing the ability for turning the insights into
action. This is why you see most executives looking
for use cases to help them to identify the low hanging
fruit. Once companies see results, it helps create a
data-driven culture.
How has big data & analytics changed marketing?
It wasn’t too long ago when marketers thought the
Holy Grail would be a corporate data warehouse.
Back then data systems were fairly new and users
didn’t know quite know what they wanted. IT was
operating under the adage “build it and they will
come.” Eventually users understood what an ana-lytical
platform was and worked together with IT to
define the business needs and approach for deriving
insights for their firm.
In today’s Big Data Age there is an interactional
model between various companies, creating more
social collaboration beyond your firm’s walls. This is
the only way marketers can cope with the major shift
in today’s consumer.
Today’s consumer has new options that better fit
their digital lifestyle. They can choose which marke-ting
messages they receive, when, where, and from
whom. They prefer marketers who talk with them, not
at them.
The linear concept of a traditional funnel, or even a
succession of lifecycle “stages,” is no longer a useful
framework for planning marketing campaigns and
programs. Today’s cross-channel consumer is more
dynamic, informed, and unpredictable. While using
a lifecycle model is still the best way to approach
marketing, today’s new cross-channel customer
is online, offline, captivated, distracted, satisfied,
annoyed, vocal, or quiet at any given moment.
Marketers must be ready with relevant marketing
at a moment’s notice. Marketing to today’s cross-channel
consumer demands a more nimble, holistic
approach, one in which customer behavior and pre-ference
data determine the content and timing—and
delivery channel—of marketing messages. Marke-ting
campaigns should be cohesive: content should
be versioned and distributable across multiple
channels. Marketers should collect holistic data pro-files
on consumers, including channel response and
preference data, social footprint/area of influence,
and more. Segmentation strategies should now take
into account channel preferences.
How should marketers think about approaching big
data and integrating it into their operations?
1. Start small. Identify the top three areas of high
potential impact.
2. Make sure your advertising team is fully leveraging
your direct/database marketing analytics talent.
3. Seek big data use cases from your peers—even if
they are in different industries.
4. Hire or consult some data scientists and engineers
that understand the “open source” technology
world. It’s amazing how much analytics innovation
is happening on a daily basis- and it’s free!
5. Create an R&D or lab function where people are
100% focused on testing new big data approaches
that can be implemented. It’s too hard to do it
with 10% of someone’s time.
6. Leverage the big data vendor community. They
often will put some skin in the game if you treat
them like a partner!
7. Make sure you have a good working relationship
with your technology colleagues—they need to be
an integral part of the team.
Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 15
Partner
Perspective
Q & A

9. Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 17
Key Takeaway
Demand
Advertisers are no longer approaching programmatic as a segment of their
overall strategy; data and targeting permeates all aspects of digital planning,
and brands are demanding that media owners make their inventory available
for programmatic dollars, both real time and automated.
Digital formats
Migrating to
programmatic
Inventory that is easily standardized is quickly auto-mated.
While high-touch sponsorships and customized
campaigns will always require human stewardship,
anything in a commoditized size will be bought and sold
primarily by machines in the not-too-distant future.
04
03
02
01
Customized & ‘native’
campaigns
Mid-tier
inventory
Remnant
inventory
Non-standard campaigns are the only form of
display advertising that will remain largely
untouched by automated buying mechanisms.
Premium formats are starting to be
transacted programmatically. Little of
it will be fully RTB, at least at first.
Within 5 years in the US
(a bit longer elsewhere) the
overwhelming majority of
non-premium inventory
will be transacted
through pro-grammatic,
primarily
through RTB.
Premium
formats
Even at the high end where creative can’t be automa-ted,
other aspects of the transaction will be managed
by machines. This integration pyramid will be mirrored
in other media as programmatic methods encroach on
traditional ecosystems.
1. Programmatic spend no longer refers only to real-time bidding (RTB);
audience targeting now occurs via both real-time and non-real-time
methods, and as a result advertisers are accessing more and more premium
data-enhanced inventory.
2. Global growth in digital programmatic trading was nearly 60% in 2013, and
will continue at nearly 40% this year.
3. While only the largest digital markets are already spending in a
programmatic fashion, the number of advertisers trading in this way will
rapidly increase as the ecosystem expands globally.
4. Advertisers aren’t only thinking about programmatic spend as a direct
targeting tool; programmatic brand advertising is becoming more popular,
and is measurable with today’s suite of campaign tools.
5. Long term growth of advertiser spend will depend on the availability of data
in emerging markets.

10. Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 19
Definition/Scope
Ecosystem
1
1
Global Programmatic spend
Global Programmatic Spend ($bn)
2.8 $ 4.8 $
2011 2012 2015
2013 2016 2017
80%
United States
2014
60% 59% 56%
30
30
30
20
15
10
0
90
80
70
60
1
1
Agency
Desks DSP's
Exchanges
Spain
Netherlands
France
Australia
Germany
United Kingdom
China
Japan
United States
52%
40%
33% 31%
Advertisers Publishers
23%
Netherlands United Kingdom France Australia Japan Germany Spain China
25
50
40
3o
20
10
0
% Dollar
Global Programmatic Market Share
7.5 $
9.9 $ 12.6 $
15.2 $ 17.6 $
4.5 $
7.6 $
12.1 $
16.7 $
22.1 $
27.7 $
33.3 $
2011 2012 2013 2014 2015 2016 2017
Data Providers
0
0
1
1
0
0
0
0
1
1
1
1
1
1
0
0
1
1
1
0
1
1
0
0 0
0
0
0
1
0
0
0
0
1
0
Driven by advanced technology and streamlining the
traditional mediabuying workflow...
RTB
01
02
03
04
05
06
NRTB
Integrated with, and empowered by, media usage and
consumer data...
Capable of adressing discrete impressions as opposed
to packages of impressions, in a cost efficient way...
Targeting specific demographic groups or behavioral
groups while being vendor-agnostic and content-agnostic...
Can be bought in "real-time", allowing feed-back loop
and continued adjustment in campaign settings...
Matches demand and supply from multiple vendors and
multiple buyers through bidding mechanisms...
1
1
1
1
1
1
1
1 1
1
1
1
1
1
1
1
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1 0
0
0
While ‘programmatic’ was 2013’s marketing buzzword of the year,
the term itself has been used in various ways since its inception and
continues to evolve. To us, the difference between RTB and non-RTB
(automated) transactions within programmatic can be recognized by
whether the transaction is …

11. Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 21
Programmatic for
traditional media Drivers Inhibitors
The ecosystem to implement
non-real time programmatic
processes is already far along
in its development.
TV
Radio
Out-of-Home
Many networks and cable
operators are hesitant to make
their inventory available on
automated platforms.
There is significant transactio-nal
infrastructure in place that
will take time to evolve.
Radio only represents 7% of to-tal
spend globally so there isn't
nearly the same drive behind
programmatic development as
there is for television.
The tech infrastructure for
hyper-targeting isn't wides-pread
on digital radio, so it is
largely limited to demographics
by station for now.
Digital OOH is not a common
existing element of most cam-paigns;
programmatic dollars
will have to grow organically
and won't have much existing
spend to cannibalize.
Digital OOH inventory is unique
so it's difficult to set standar-dized
inventory types on which
to bid. Location data will have
to be very specific to give con-text
to impressions.
The most money is spent in
television, therefore the gre-atest
gains are available from
increases in efficiency.
Digital radio already has
enough measurement in place
to show the value of each ad
and therefore the value of pro-grammatic
efficiencies can be
seen quantitatively.
Digital OOH inventory can be
updated in real time (and po-tentially,
in the future, depen-ding
on who is observing).
Radio ads can be sold in real
time as well as cross-channel,
making it attractive as a part of
broader ad campaigns.
The ecosystem is already
developing with solutions like
Vistar and Vukunet. Even before
exchanges develop, program-matic
direct will be offered.

12. Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 23
Media Owner
Perspective
Q & A
Bob Lord
CEO of AOL
Networks
wanted to be involved. We firmly believe that
this approach will explode creativity in the
marketplace and enable agencies, advertisers
and publishers to focus on driving unprece-dented
client value and the most engaging user
experiences.
What proportion of your advertising sales are
you expecting to be automated in one year, in
three years?
It’s an interesting question for us because we
actually use the same platform to operate our
managed services business as our clients use
as self-service programmatic tools. So I guess I
would say 100% of our business will continue to
be run using programmatic/automated tools.
Can you comment on the drivers and obstacles
for mobile and video inventory on the road to
automation and programmatic?
The primary driver is consumer behavior, for
both mobile and video. No one in our industry –
brands, agencies or publishers – can afford to
ignore the dramatic movement by consumers to
multi-screen and video consumption. Obviously
as these trends continue, inventory constraints
will lessen, but the real issue is making sure the
platforms buyers use can access and analyze
from an inventory and screen-agnostic view.
Vincent Letang
EVP, Director
of Forecasting
MAGNA GLOBAL
Can you give us a sense of your inroads into
programmatic and automation following the AOL
Programmatic Upfront of September 2013?
So we are very bullish on achieving our goal of moving
the conversation around programmatic from remnant
RTB to automation and efficiency. Over 650 people
attended the Upfront and over 300 additional clients in
fourteen cities have participated since. We’ve seen over
$50 million in commitments thus far so I feel very good
that we are changing the agency media model in real-time.
We have worked very hard to refocus our teams
and technologies on platforms that help agencies and
brands scale across all screens and formats to solve
real business problems. And I believe we’re at the right
place at the right time given the structural and econo-mic
pressures digital is putting on the advertising and
media ecosystems.
What prompted your decision to join the MAGNA
Consortium on automation?
We continue to have tremendous respect for IPG Media-brands
and MAGNA’s leadership in a move to automating
the processes that can and should be automated to
drive more client and agency value. It was a very quick
decision once we heard the focus as to whether we

13. Key Takeaway
New Value
Drivers
As technology and data speed have improved, timing has become increasingly
important as a component of successful targeting. Relevance can hinge not
only on when the message is delivered to the consumer, but on the cadence of
subsequent communications.
1. Consumers are twice as likely to interact with online ad content
when it is delivered in real-time.
2. Incorporating real-time content into online display ads improves
brand favorability and purchase intent.
3. In a multi-screen campaign, the shorter the interval between TV and
online ad exposures, the more memorable the messages will be.
4. Sequential messaging across TV and online also improves positive
responses to the brand.
5. Many global internet users are in favor of their devices anticipating
their needs based on passively collected data.
Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 25

14. Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 27
Consumers 2x as Likely to
interact with content when
it is real-time
Timing
Matters
Incorporating Real-Time Content
Into ads Drives Favorability & Intent
Interactions with Intent: % of viewers who actively
and intently engage by:
Rolling over ad for min of 0.5 seconds
AND conducting a min. of one positive action
(e.g. expand, click-through, play video, etc.)
12%
12%
27%
24%
Real -Time Ad
Non Real-Time
Real -Time Ad
Non Real-Time
Total Audience
Brand Favorability Purchase Intent
In-Market Audience
01
02
68% 69%
%
80
70
60
60% 58% 50
40
30
20
10
Source: IPG Lab/AOL Study: The Power of Real Time
Ad Recall By Time
(TV + Online)
A recent collaborative research study between the IPG Media Lab and multi-screen
audience aggregator Collective demonstrated that closely timed exposures across tele-vision
and online generated significant bumps in ad recall and key brand metrics.
%
100
90
80
70
60
Multi-Screen Plans Have Most
To Gain From Condensed Timing
Gain In Metric With Sequential Exposures
(Sequential Exp. Minus 7+ Day Exp.)
TV Only
Unaided Ad Recall
Aided Ad Recall
Overall Favourability
Likelihood To Recommend
Purchase Intent
+3%
+12%
0%
0%
-1%
TV + Online
+12%
+21%
+4%
+9%
+10%
50
40
30
20
10
0
Sequential
Within Day Part
Day Part - 1 Day
1 -3 Day
3-7 Day
7+ Day
48%
42%
37%
35% 32%
Aided Ad Recall
Unaided Ad Recall
85%
80%
71% 70%
67%
63%

15. Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
17%
38%
30%
8%
7%
Anticipatory
Computing
Global Internet Users –
“I expect technology to introduce me
to new and surprising experiences”
Source: IPG Mediabrands/Microsoft, “The Future Laboratory,” May 2013
Q22. “I expect technology to introduce me to new and surprising experiences that are
uniquely tailored to me and that feel like coincidences”
“I love digital devices and services
that provide me with new recom-mendations
or content at the moment
when I need them without me actively
seeking them out."
20%
i
“I like devices and services that
provide me with recommendations
that are based on my previous be-haviour
Source: IPG Mediabrands/Microsoft, “The Future Laboratory,” May 2013
Q23. “Which of the following statements best describes your attitude to how you discover things using technology?”
“I expect brands to
know me and offer me
something I didn’t even
know I wanted”
“I am much more likely
to buy a product or
service from a brand that
delivers pleasantly
surprising experiences”
Source: IPG Mediabrands/Microsoft, “The Future Laboratory,” May 2013
Q29b. And still thinking about the brands or services that you interact with on a day- to -day
basis, on and offline, to what extent do you agree with the following statements
online and are provided on
regular basis.”
31%
13%
29%
31%
15%
12%
20%
41%
28%
6% 5%
Strongly Agree
Agree
Neither Agree nor Disagree Disagree
Strongly Disagree
Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 29
The idea of targeting in real-time is to create a mutually
beneficial scenario for the brand and consumer—you’re
offering something they need. But what if you could anti-cipate
those needs before they even arise?
That is the promise of anticipatory computing, which,
rather than waiting for the user to make a query, uses
passively collected data streams like sound and location
to proactively provide information. It is already being
used in some mobile apps, and a survey of global internet
users performed in collaboration with Microsoft has re-vealed
that many are ready and willing for their devices to
anticipate their needs and recommend new experiences.

16. Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 31
Start-Ups
to Watch
The explosive growth of connected media
devices in consumers’ hands and the resulting
data they provide has created numerous paths
to better targeting. New companies with
different ideas on how to harness that
information are cropping up all the time.
What it Does - Sticky uses
eyetracking technology to
measure attention on display
advertising to provide insights
and marketing accountability
Ad Experience - Premium
display ads
Marketing Objective -
Accountability & Measurement
What it Does - Vistar uses
mobile location data to inform
OH buys that can be bought
programatically
Ad Experience - Digital Out of
Home
Marketing Objective - Awareness
What it Does - Triple Lift powers
native visual ad content at scale
by automatically reformating
image assets to match the look
and feel of publisher's sites
Ad Experience - Native Visual
Ads similar to Pinterest
Marketing Objective - Build
Brand Image, Awareness,
Conversion
What it Does - Idomoo integrates
real customer data into video
to create personalized content
rendered on the fly
Ad Experience - Personalized
video typically delivered via
email
Marketing Objective - Educate,
Build Relationship, Sales
What it Does - Perch marries
motion-sensing cameras,
software and a projector to
detect product interaction at
shelf that can inform in-store
displays
Ad Experience - In store media
displays using a projector
Marketing Objective - Sales
What It Does - Placed is a location-driven
consumer insights and
mobile ad intelligence service.
They measure billions of location
data points across the U.S.
using an opt-in panel of 100,000
participants
Ad Experience - Survey questions
via mobile app
Marketing Objective -
Measurement & Attribution

17. Agency Perspective
What is the agency's role in an increasingly data-driven marketplace?
What is the biggest challenge to more widespread adoption
of programmatic buying?
Direct response advertisers have generally adopted
programmatic buying. What about brand advertisers?
Does scale matter in programmatic?
Is programmatic really this transformative force that many
in the industry suggest?
The Internet continues to expand and fragment at a rapid pace.
Forrester Research appropriately labeled this dynamic the "Splinternet"
in a 2010 report. Consumers engage with content and advertising across
a wide spectrum of paid, owned, and earned media channels. These
changing media consumption habits have resulted in an underlying
media buying ecosystem that is constantly evolving, highly fragmented,
and massively complex. Targeted reach at scale while theoretically
achievable, hinges on the proper utilization and intersection of data
(huge amounts of it) and technology. So, agencies are now in the data
and tech business just as much as they are in the intelligence and
investment business. The agency’s role, in my opinion, has never been
more important. Agencies need to insulate marketers from the complex
underlying circuitry involved and establish an agile programmatic
buying capability – with investments in talent, proprietary insights, and
technology partnerships – to power highly targeted conversations with
customers across devices and channels. It’s not a trivial undertaking by
any means and a massive opportunity for agencies.
There is no overarching agreement in the industry regarding the
definition or scope of programmatic. Programmatic has, for
many, come to represent remnant inventory, distressed CPMs,
and strictly direct-response tactics. This simplistic association
has understandably left the sell side wary. The buy side views
programmatic as the unprecedented opportunity to drive targeted
reach at scale through the use of data and technology across all
classes of inventory. So, in that sense, programmatic has a brand
problem! The good news is that programmatic is very much in its
infancy. I’m very optimistic that we can work together to fully realize
the potential transformative power of programmatic buying.
Direct response advertisers were quick to adopt programmatic
because it provides an unprecedented level of choice over
inventory (at the impression level) and near real-time measurability
and, as such, aligns very well with their marketing goal and
priorities. However, brand advertisers are starting to realize
that programmatic management of individual exposures, via the
use of first-and-third-party data and other indicators such as
content and context, has the potential to drive highly personalized
communications at scale in the right environments. We are
beginning to see a healthy increase in brand spend and I expect this
to continue and grow throughout 2014.
Absolutely. Swaths of premium inventory are not currently
available on the open exchanges. The combination of scale plus
programmatic buying means that we can continue to bring leverage
to bear on our deals with premium publishers at the macro level yet
extract maximum value by applying programmatic techniques at
the micro individual exposure level.
Yes. Well, that’s my personal opinion and I guess you can say that I’m
biased! As Stephen Baker, technology journalist, said in a post in the
New York Times about a related topic:
“The Impact of new technologies is invariably misjudged because we
measure the future with yardsticks from the past.”
Brian Hughes
SVP, Audience
Analysis Practice
Lead at
MAGNA GLOBAL
Brian Hughes
Brian Hughes
Brian Hughes
Brian Hughes
Neeraj Kochhar
EVP, Managing Director
Programmatic at
MAGNA GLOBAL
Neeraj Kochhar
Neeraj Kochhar
Neeraj Kochhar
Neeraj Kochhar
Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 33

18. Supply Demand New Value Drivers Media Economy Report Vol. 04 Page 35
Contributors
Brian Hughes @bhughes_magna
SVP, Audience Analysis Practice Lead,
MAGNA GLOBAL
brian.hughes@magnaglobal.com
Vincent Letang @vletang_magna
EVP, Director of Forecasting, MAGNA GLOBAL
vincent.letang@magnaglobal.com
Luke Stillman @lukestillman
Forecasting Manager, MAGNA GLOBAL
luke.stillman@magnaglobal.com
Janice Finkel-Greene
EVP, Buying Analytics, MAGNA GLOBAL
janice.finkel-greene@magnaglobal.com
Keith Camoosa
EVP, Research & Analytics, MAGNA GLOBAL
keith.camoosa@magnaglobal.com
Tanya Kolosova
SVP, Director of Research and Analytics, AMP,
MAGNA GLOBAL
tanya.kolosova@magnaglobal.com
Kara Manatt @karamanatt
VP, Consumer Research Strategy, IPG Media Lab
kara.manatt@ipglab.com
Jack Pollock @pollockj07
Senior Analyst, IPG Media Lab
jack.pollock@ipglab.com
Todd Gordon @tpgtweets
EVP, US Director, MAGNA GLOBAL
todd.gordon@magnaglobal.com
Neeraj Kochhar @neeraj_kochhar
Managing Director, Programmatic, MAGNA GLOBAL
neeraj.kochhar@magnaglobal.com
Natalie Bokenham @natlikethat
SVP, Managing Partner, Digital, UM
natalie.bokenham@umww.com
Design by
Bureau Oberhaeuser @oberhaeuserinfo
contact@oberhaeuser.info
Summary Cheat Sheet New Value Drivers
1. Consumers are twice as likely to interact with online
ad content when it is delivered in real-time.
New Finding: The results are even better among the
in-market audience (i.e. those seeking to buy).
2. Incorporating real-time content into online display
ads improves brand favorability and purchase intent.
New Finding: Percent increases compared to non
real-time ads were between 13-19%.
3. In a multi-screen campaign, the shorter the interval
between TV and online ad exposures, the more
memorable the messages will be.
New Finding: The difference in unaided recall between
sequential exposures and those seven days apart
was 33%.
4. Sequential messaging across TV and online also
improves positive responses to the brand.
New Finding: The results for sequential exposures on
TV alone were not nearly as positive.
5. Many global internet users are in favor of their
devices anticipating their needs based on passively
collected data.
New Finding: More than 60% agreed that they would
be much more likely buy a product or service that
delivered “pleasantly surprising experiences.”
Supply
1. Aligning data from across the behavioral spectrum—
from media exposure to sales results—creates a
robust targeting methodology that drives better
decision making in national TV trading.
New Finding: Past behavior is a better predictor of
future behavior than age and sex.
2. Moving from ratings to impressions in local TV
trading will not only create additional supply, but
enable more automated transaction processes.
New Finding: Inventory may increase by more than
30%, depending on the market.
3. Impressions-based transactions will also create the
opportunity for more precise targeting locally.
New Finding: Overlaying impressions with qualitative
and purchase data will make this possible.
4. In online media, the vast number audience
interactions allow marketers to combine detailed
behavioral data with contextual targeting.
New Finding: Contextual indicators can include
keywords, content categories, and location.
5. For some categories, contextual targeting may
actually be better at driving online conversions than
behavioral.
New Finding: Cost must also be taken into account
when determining the success of different
targeting methods.
Demand
1. Programmatic spend no longer refers only to real-time
bidding (RTB); audience targeting now occurs
via both real-time and non-real-time methods, and
as a result advertisers are accessing more and more
premium data-enhanced inventory.
New Finding: Non real-time processes will make
premium publishers more comfortable with doing
business programmatically.
2. Global growth in digital programmatic trading was
nearly 60% in 2013, and will continue at nearly 40%
this year.
New Finding: By 2017, the digital programmatic spend
across nine major markets will exceed $33 billion.
3. While only the largest digital markets are already
spending in a programmatic fashion, the number of
advertisers trading in this way will rapidly increase as
the ecosystem expands globally.
New Finding: An expansion of infrastructure in
emerging programmatic markets will make
this possible.
4. Advertisers aren’t only thinking about programmatic
spend as a direct targeting tool; programmatic
brand advertising is becoming more popular, and is
measurable with today’s suite of campaign tools.
New Finding: The growth in available data in
developed markets has enabled highly personalized
communications at scale.
5. Long term growth of advertiser spend will depend on
the availability of data in emerging markets.
New Finding: Data is the life-blood of the
programmatic ecosystem.
Concluding Tweet
Brian Hughes @bhughes_magna
Data is inching us ever closer to that “Minority
Report” moment of real-time, one-to-one
messaging, regardless of location.

19. Supply Demand Media Economy Report Vol. 04 Page 37
The Global
Advertising Market
2013-2014
As the world economy gradually improves in 2014,
so will advertising spending. We now expect global
advertising revenues to grow by +6.5% (previously:
+6.1%) and reach $521.6bn, which will be the strongest
year-on-year growth since 2010 (+8.4%, following the
2009 recession). The non-recurring sports events of
2014 (Sochi Winter Olympics, Brazil Soccer World Cup)
and the US mid-term elections will contribute to the
global growth of television (+7.5%). That compares a
with a modest 1.8% growth in 2013 for TV globally.
Revenues 1999-2018
-10%
$200
0%
$100
-5%
$600
$500
$400
10%
$300
5%
$0 -15%
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Advertising Revenues in constant billion USD (2012) YOY growth/decline
0.9
4.2
12.9
10.0
apac
6.3
8.7
14.6
11.3
Ad Market by Region
emea
Latam
12% emerging
2% mea
4% CeE
21% WE
3% Canada
33% USA
30%
17% mature
7%
28%
North america
Revenue growth by region
In Percent
1.5
5.5
12.3
20%
Global Media Mix
Free TV
Pay TV
Search
Display
Mobile
Video
Other Digital
Newspaper
Magazine
Radio
Out-of-home
7.9
9.5
-0.3
31%
10%
2% 6% 9%
3%
1%
7%
17%
7%
7%
2013 2014
-0.8
2.1
WE
CEE
North
America
APAC
Emerging
Asia
LATAM
1.8
-5.0 -5.6
7.5
15.9
1.5
3.0
15.5
2.2
4.8 3.2
6.5
9.5
7.6
MEA
Developed
Markets
Revenues by Media
Emerging
Markets
15%
10%
5%
0%
-5%
-10%
Television Internet Newspaper Magazine Radio Out of Home All Media
The combination of an improved economic environ-ment
and stronger than usual cyclical drivers is bound
to unlock marketing and branding budgets in 2014.
This will primarily benefit television and digital media
where new formats and opportunities are being explo-red
for activation and branding campaigns.
These insights are based on the bi-annual global
advertising forecast update published on December 9,
2013. The next update will be published in June 2014.
New Value Drivers
-2.9 -3.9

20. Supply Demand Media Economy Report Vol. 04 Page 39
The Global Advertising
Market 2013
UA
Slovak Republic $384
Romania $406
Reading this map: the size of each country is pro-portional
to advertising spending in billion USD; the
color reflects the level of spend per capita, akin to the
intensity of advertising pressure: green is very low
(less than $50), red is very high ($400 and more). This
map reveals that the US alone represents a third of
global advertising market while some large countries
by surface or population, like India or Russia, remain
largely underdeveloped.
1bn
5bn
10bn
in USD
Advertising Spending in $ per capita (2013)
NL
$4,090
DK
$0 $100 $200 $300 $400 $500 $600
Billion Dollars
Total
market size
490
Sri Lanka
$143
Pakistan
$308
Croatia $251
France
$13,376
AR UY
China
$44,100
Canada
$13,004
USA
$156,546 Bulgaria $252
Serbia $173
New
Zealand
$1,406
Austria
$3,036
Switzerland
$3,863
Belgium
$2,463
Germany
$23,621
Greece
$940
Turkey
$3,327
Saudi
Arabia
$1,707
Bahrain $121
Hong
Kong
$3,032
Kazakhstan
$329
Kuwait
$534
$936
LV $97
Lebanon
$188
LT $144
PL
$2,463
HU
CZ
$1,303
Korea
$8,083
Philippines
$1,438
Mexico
$3,739
Qatar $236
$620
Russia
$10,876
India
$6,882
Taiwan
$1,939
United
Kindom
$22,092
Italy
Spain $8,122
$5,434
Japan
$52,070
EE $110
Egypt
$2,456
South
Africa
$4,541
Kenya
$536
Morocco
$420 Oman
$161
Thailand
$4,341
Vietnam
$711
UAE
Malaysia
$2,637
Australia
$13,234
Singapore
$2,012 Indonesia
Brazil $6,326
$17,804
CO
$4,914
VE
IE
NO
SE
North FI
America
Latin
America
Asia
Pacific
Europe
Middle
East
Panama
$514
Africa EC PE
$431
$446
$729
$1,231
Chile
$1,419
$5,788
$1,147
PT
$673
Costa Rica
$694
Puerto
Rico
$918
$2,105
$3,450
$3,031
$1,592
$1,258
New Value Drivers

21. About
MAGNA GLOBAL
MAGNA GLOBAL is the strategic global media unit of IPG Mediabrands,
comprised of two key divisions.
MAGNA GLOBAL Investment harnesses the aggregate power of all IPG
media investments to create power and leverage in the market, drive
savings and efficiencies, and ultimately make smarter, more effective
media investments on behalf of our clients. With a stated goal of re-aching
50% automated buying by 2016, the team in North America in-vests
across digital, programmatic, broadcast and all traditional media
platforms and is therefore considered the most comprehensive buying
and negotiating unit in the media industry. The architects of the MAGNA
Consortium – a powerful committee of executives from A&E Networks,
AOL, Cablevision, Clear Channel Media and Entertainment, ESPN and
Tribune – MAGNA North America is also dedicated to shaping industry
automation and audience specific buying.
MAGNA GLOBAL Intelligence has set the industry standard for more
than 50 years by predicting the future of media value. MAGNA GLOBAL
Intelligence produces more than 40 annual reports on audience trends,
media spend and market demand, and ad effectiveness. For more in-formation,
please visit www.magnaglobal.com or follow us on Twitter
@MAGNAGLOBAL.
About
IPG Mediabrands
We were founded by Interpublic Group (NYSE: IPG) in 2007 to manage all
of its global media-related assets. Today that means we manage and in-vest
$37 billion in global media on the behalf of our clients, employ over
8,500 diverse and daring marketing communication specialists worldwi-de
and operate our company businesses in more than 130 countries.
A proven entity in helping clients maximize business results through in-tegrated,
intelligence-driven marketing strategies, IPG Mediabrands is
committed to driving automated buying, pay-for-performance and digi-tal
innovation solutions through its network of media agencies including
UM, Initiative, BPN, Orion Holdings, and ID Media. Its roster of special-ty
service agencies including MAGNA GLOBAL, Mediabrands Audience
Platform, Mediabrands Publishing, IPG Media Lab, Ensemble, and Iden-tity
offer technologies and industry moving partnerships that are reco-gnized
for delivering unprecedented bottom line results for clients. For
more information, please visit www.ipgmediabrands.com or follow us on
Twitter @IPGMediabrands.