Fernando Narcio - Pubmatic

1. Fernando Narcio
Regional Manager, Latin America
@ PubMatic

2. 5Thought-Driving Trends in Media

3. 1. Follow the Consumer
2. Empower Publishers
3. Inspire Buyer Confidence
4. Role of Technology
5. Look Beyond the Horizon
5Thought Drivers

4. 1. Follow the Consumer
2. Empower Publishers
3. Inspire Buyer Confidence
4. Role of Technology
5. Look Beyond the Horizon
5Thought Drivers

5. Content is King
Relevance
Follow the Consumer…
More Connected Devices Per Person
MoreTime Spent with Media Per Day
MoreAd Impressions Seen Per Day

6. Advertisers Continues to Follow Consumers into Digital
2015 2020E 2035E
Global Ad Spending, Digital vs. Non-Digital
($ in Billions)
Global Non-Digital Advertising (-6% CAGR)
Global Digital Advertising (12% CAGR)
21%
79%
36%
64%
90%
10%
2015
$30B
2035
$1.1
Trillion
Programmatic Spend
$721
$971
$1,500
Sources: IDC, Magna Global, Zenith Optimedia, eMarketer and PubMatic Analysis

7. Ad Dollars Follow Digital & Mobile Eyeballs
Advertisers coming to terms with consumers’ shifting consumption habits
$0,6 $1,4
$2,4
$4,1
$6,3
$8,1
$5,5
$6,8
$8,1
$9,6
$11,1
$12,7
2013 2014 2015 2016E 2017E 2018E
LatAm Digital & Mobile Ad Spend
($ in Billions)
Mobile
Total Digital
Sources: Mobile – eMarketer (Mar. 2015), Programmatic – eMarketer (Mar. 2015)

8. 1. Follow the Consumer
2. Empower Publishers
3. Inspire Buyer Confidence
4. Role of Technology
5. Look Beyond the Horizon
5Thought Drivers

9. REACH
FREQUENCY
DURATION

10. REQUIRED TECHNOLOGY FOUNDATION
Companies that are successful in extending their
capabilities early will win disproportionate share
Requirements for Success
DATA
HOLISTIC
INVENTORY
MANAGEMENT
OPTIMIZATION &
CONTROL
REPORTING &
ANALYTICS

11. Make Your Impressions Stand Out

12. 1. Follow the Consumer
2. Empower Publishers
3. Inspire Buyer Confidence
4. Role of Technology
5. Look Beyond the Horizon
5Thought Drivers

13. Concerns: Ad Fraud, Ad Blocking, and Viewability

14. Ad Quality Concern Driven by Ad Fraud
Source: WhiteOps (Dec. 2014), Integral Ad Science (Apr. 2015)
Global advertisers will lose
$6.3 billion to bots in 2015
4.0%
All Publishers
16.5%
Networks &
Exchanges
% of Ads
Affected by
Ad Fraud

15. Ad Availability Concern Driven by Ad Blocking
Source: PageFair (June 2015)
Alone could have lost up to
$6.6billion from
AdBlock in 2014
2%
10%
10%
10%
20%
20%
30%
Middle East & Africa
US
AsiaPac
Latin America
Canada
Western Europe
Central & Eastern Europe
Estimated Ad Blocking Adoption Rates,
by Region
Latin America

16. Ad Value Concern Driven by Viewability
80% of ads seen for
1-2 seconds with
50%+ of the ad loaded
was deemed VIEWABLE
In a Media Rating
Council (MRC)
analysis of billions of
impressions…
% of Ads that are
Viewable
All Publishers
Networks &
Exchanges
Source: Integral Ad Science (April 2015)

17. 1. Follow the Consumer
2. Empower Publishers
3. Inspire Buyer Confidence
4. Role of Technology
5. Look Beyond the Horizon
5Thought Drivers

18. Publisher Journey
Technology is Required For Success in Media
This means automating the publisher’s marketing value chain—everything
from identifying a new buyer, qualifying that buyer, nurturing buyer
relationships, converting a sale and identifying future opportunities to
upsell and cross-sell.
Obviously, these are not new concepts. However, doing them successfully
millions of times a week and in real-time is only possible when enabled by
technology.
ID Opportunities Qualify Nurture Convert Grow

19. Marketing Automation is Required
Opportunity
Identification Qualification Planning Conversion Growth
Publishers Need to
Identify Potential
New Advertiser
Relationships
Publishers Need to
Qualify Target
Audiences &
Placements for
Advertisers
Publishers Need
Inventory
Packaging and
Negotiation
Publishers Need IO
Generation &
Trafficking of
Campaigns
Publishers Need to
Identify New Cross-
Screen, Cross-
Channel
Opportunities

20. The Good and Bad of Multiple Partners
20
Advantages Challenges
A tiered pricing strategy
(leads to higher fill rates, value for inventory)
First look inventory is sold arbitrarily
(risk of overexposing and devaluing inventory)
Create more competition for your
inventory from potential new partners
Ad quality concerns
(sources of fraud, imperfect block-lists)
Diversify partner revenue streams and
ad-serving opportunities
Low visibility and no single source of
truth from data
Free to take advantage of market
changes and emerging technology
Slower page loads, poor ad UX and lost
impressions

21. Key questions for your tech partner
Whose best interests are being served?
Is your partner focused on innovating the tech you need?
Is your forward visibility their highest priority?
Is their platform proposition truly holistic or a point solution?
Does their business model make them a vendor or a partner?

22. 1. Follow the Consumer
2. Empower Publishers
3. Inspire Buyer Confidence
4. Role of Technology
5. Look Beyond the Horizon
5Thought Drivers

23. Growing Need to Simplify the Stack
22%
25%
17%
15%
21%
15%
20%
14%
20%
31%
5 or fewer
5-10 vendors
11-20 vendors
21-30 vendors
30+ vendors
2015
2012
51%
of organizations
use more than
20 vendors

24. Actionable Insights Are Your Competitive Advantage
25%
37%
44%
47%
47%
Real-time reporting
Advanced customer
behavior analytics
Dashboards
Cross-channel
view of results
Prescriptive and
predictive analytics
Source: Gartner (2014), Regalix (Mar. 2015)
85%of marketing organizations are
leveraging analytics data to measure
marketing effectiveness
Media companies spend 11%of their
marketing budget on analytics
Top Needs from a Marketing Software Provider

25. • Follow the “hyper-connected”
consumer and increase relevancy
• Deploy technology to understand
and anticipate consumer needs
• Address buyer concerns
• Automate your marketing value
chain
• Simplify the stack and use data to
stay ahead
Key Takeaways

26. 1. Follow the Consumer
2. Empower Publishers
3. Inspire Buyer Confidence
4. Role of Technology
5. Look Beyond the Horizon
5Thought Drivers