1. 2014 Programmatic Study | P. 1
Report On Programmatic Study (Winter 2014)
Kevin Mannion
Chief Strategy Officer
& Future
LandscapeThe Programmatic
As Viewed By Top Buyers & Sellers

2. 2014 Programmatic Study | P. 2
Media Buyers Overall
Company Type
Agency 35%
Marketer 65%
Job Title
VP and above 45%
Director/Supervisor 34%
Manager/Planner/Buyer 21%
Annual Spending
Less Than $10 Million 42%
$10 Million or More 58%
Media Sellers Overall
Company Type
Publisher 58%
Ad Network 42%
Job Title
VP and above 68%
Director/Supervisor 17%
Manager/Planner/Buyer 15%
Buyers & Sellers

3. 2014 Programmatic Study | P. 3
Media Buyers Overall
Company Type
Agency 35%
Marketer 65%
Job Title
VP and above 45%
Director/Supervisor 34%
Manager/Planner/Buyer 21%
Annual Spending
Less Than $10 Million 42%
$10 Million or More 58%
Media Sellers Overall
Company Type
Publisher 58%
Ad Network 42%
Job Title
VP and above 68%
Director/Supervisor 17%
Manager/Planner/Buyer 15%
Agencies | Marketers | Ad Networks

4. 2014 Programmatic Study | P. 4
Media Buyers Overall
Company Type
Agency 35%
Marketer 65%
Job Title
VP and above 45%
Director/Supervisor 34%
Manager/Planner/Buyer 21%
Annual Spending
Less Than $10 Million 42%
$10 Million or More 58%
Media Sellers Overall
Company Type
Publisher 58%
Ad Network 42%
Job Title
VP and above 68%
Director/Supervisor 17%
Manager/Planner/Buyer 15%
Top Executives

5. 2014 Programmatic Study | P. 5
Here’s what we
know about
programmatic.
- Buyers highly optimistic about programmatic
- Yet there are factors holding it back
- What needs to be solved
- Partners and leaders
- Evolution of programmatic
- It’s a Google world

6. 2014 Programmatic Study | P. 6
Total Respondents (%):
spending
across
all media
Optimism
next 12 months
Increase Maintain Decrease
Mobile and digital continue to be the magnets
Net optimism very high for both.
Net Optimism
(% increase minus % decrease)

7. 2014 Programmatic Study | P. 7
Digital/Mobile Respondents (%):
spending
across digital
categories
Net Optimism
(% increase minus % decrease)
Total Respondents (%):
spending
across
all media
Optimism
next 12 months
Increase Maintain Decrease
Mobile, Social, Search, Video and Programmatic
are primary drivers in digital spending.

8. 2014 Programmatic Study | P. 8
Programmatic growing vs. direct
In 2014 programmatic was up to 40% of ad budgets.
Allocation of Digital Ad
Budgets by
62% 38%
Traditional Buying Programmatic Buying
201
4
Buyers

9. 2014 Programmatic Study | P. 9
Programmatic growing vs. direct
Today it is approaching half of all digital ad budgets.
Allocation of Digital Ad
Budgets by
62% 38%
Traditional Buying Programmatic Buying
201
4
54% 46%
Traditional Buying Programmatic Buying
201
5
Buyers

10. 2014 Programmatic Study | P. 10
Programmatic growing vs. direct
That’s a 21% increase in just one year.
Allocation of Digital Ad
Budgets by
62%
Traditional Buying Programmatic Buying
201
4
54% 46%
Traditional Buying Programmatic Buying
201
5
Buyers
38%
+21%

11. 2014 Programmatic Study | P. 11
STRONG Somewhat Non
e
48%
59%
39%
27%
13%
14%
Media Buyers
Media Sellers
Buyers and sellers are both
strongly concerned about media coverage of fraud and viewability.
% level of concern

12. 2014 Programmatic Study | P. 12
Transparency and Brand Safety
Sales – Knowledge and Service
Programmatic problems
begin and end with trust and credibility.
“Sites not safe
for our client.”
“Quality of inventory
was very poor.”
“They didn't
know what they
were doing.”
“They aren't experts on
their own products.”
“Some guys were not
trustworthy.”
“Some sales staffs
don't understand
programmatic.”
“Misrepresented inventory.”
“Disheartened by a
lack of transparency.”
“Unsavory content.”

13. 2014 Programmatic Study | P. 13
Rated 1-3
Advertisers prefer single full-service solution.
Sellers
Sellers truly believe that media buyers
are looking for a one-stop shopping solution.
44% 33% 22%
5 Rating 4 Rating 1-3 Rating
Rating Levels: 5=strongly agree/1=strongly disagree

14. 2014 Programmatic Study | P. 14
Rated 1-3
5
Rating
Rated 1-3
Advertisers prefer single full-service solution.
Rating Levels: 5=strongly agree/1=strongly disagree
It’s better to work with a single full-service provider than have a several point solution.
Sellers
Buyers
44% 33% 22%
20% 34% 46%
4 Rating 1-3 Rating
5 Rating 4 Rating 1-3 Rating
But the buyers don’t agree.
Only 1 in 5 actually wants a single source solution

15. 2014 Programmatic Study | P. 15
What does Partnership mean to marketers? 3 factors:
Credibility. Expertise. Service.
“Great customer service,
responsiveness and
campaign performance.”
“Collaborative effort to achieve goals.”
“Customer service,
transparency and reporting
viewability.”
“Good communication about
shared outcomes.”
“Great customer service and training.”
“A relationship based on
trust and transparency.”
“A partner who assures the
quality of the content
environment.”

16. 2014 Programmatic Study | P. 16
Buyers are demanding better performance.
No other factor comes close.
Better ROI &
performance
Key Factors For Media Buyers
42%
23% Effective &
transparent pricing
18
%
Continuing embrace
& acceptance
17% Transparenc
y in
placement
16% Brand safety
1
.
2
.
3
.
4
.
5
.

17. 2014 Programmatic Study | P. 17
Better ROI &
performance
Key Factors For Media Buyers
42%
23% Effective &
transparent pricing
18
%
Continuing embrace
& acceptance
17% Transparenc
y in
placement
16% Brand safety
1
.
2
.
3
.
4
.
5
.
Simplicity is #1 for sellers.
But premium prices and better yields rank high too.
Key Factors For Media Sellers
Operational
simplicity & ease43%
34% Premium inventory
at premium prices
28
%
Better yields
23% Effective audience
targeting
23% Effective &
transparent pricing
1
.
2
.
3
.
4
.
5
.

18. 2014 Programmatic Study | P. 18
Use and
partnership
with
programmatic
brands.

19. 2014 Programmatic Study | P. 19
Companies partnered with in past 12 months in programmatic
Google and Yahoo!
are the dominant brands in the programmatic world.
82% 69% 34% 21% 20% 18% 18%

20. 2014 Programmatic Study | P. 20
In the programmatic world right now there is one
and only one prominent brand – Google.
36% 7% 6% 6% 5%16%
Q: Of all the vendors/partners that you use, who do you see as the ONE you value more than any other?
Note: 50 other vendors/partners were included in this question but all tallied under 5%

21. 2014 Programmatic Study | P. 21
LUMAscape positions every player in the programmatic arena.
It’s more than a little chaotic.

22. 2014 Programmatic Study | P. 22
Can you identify the leading digital advertising networks and platforms?
Let’s play The Feud!

23. 2014 Programmatic Study | P. 23
Here is what LUMAscape
ranks as the leading digital Ad Networks.
Ad
Networks
Positioned by

24. 2014 Programmatic Study | P. 24
Positioned by
Ad
Networks
Buyers and sellers
could identify the leaders – but it falls apart after that.
38%
28%
25%
24%
29%
Survey says…
Audience Ads
2/3

25. 2014 Programmatic Study | P. 25
38%
28%
25%
24%
29%
Positioned by
Ad
Networks
There is huge confusion about
what a digital advertising network really is.
did not identify Google Display Network
as a digital advertising network
62%
Survey says…
2/3
Audience Ads

26. 2014 Programmatic Study | P. 26
Positioned by
Agency
Trading Desk
(ATD)
Here is what LUMAscape
ranks as the leading ATDs (Agency Trading Desks).

27. 2014 Programmatic Study | P. 27
Positioned by
Buyers and sellers
could correctly identify only four of eight primary ATDs.
21%
13%
12%
19%
Survey says…
Agency
Trading Desk
(ATD)
1/4

28. 2014 Programmatic Study | P. 28
Positioned by
Ad
Exchanges
Here is what LUMAscape
ranks as the leading digital Ad Exchanges.

29. 2014 Programmatic Study | P. 29
44%
38%
36%
34%
42%
Positioned by
Ad
Exchanges
And survey says there is high recognition of the top Ad Exchanges.
But . . .
Survey says…

30. 2014 Programmatic Study | P. 30
44%
38%
36%
34%
42%
Positioned by
Ad
Exchanges
Over half the respondents are not aware that the term “Ad Exchange” in your title,
might mean you are an Ad Exchange.
Survey says…
NOT aware that Yahoo
Ad Exchange is an Ad Exchange
56%

31. 2014 Programmatic Study | P. 31
Positioned by
Here is what LUMAscape
ranks as the leading DSPs (Demand-Side Platforms).
Demand-Side
Platforms
(DSP)

32. 2014 Programmatic Study | P. 32
26%
21%
20%
19%
23%
Positioned by
Demand-Side
Platforms
(DSP)
Awareness of the
Demand-Side Platforms is highly spotty.
Survey says…

33. 2014 Programmatic Study | P. 33
Positioned by
Supply-Side
Platforms
(SSP)
Here is what LUMAscape
ranks as the leading SSPs (Supply-Side Platforms).

34. 2014 Programmatic Study | P. 34
44%
40%
39%
35%
42%
Positioned by
Supply-Side
Platforms
(SSP)
Total confusion!
Most respondents cannot identify even one Supply-Side Platform.
Survey says…

35. 2014 Programmatic Study | P. 35
Here is what LUMAscape
ranks as the leading Data Management Platforms.
Positioned by
Data
Management
Platforms

36. 2014 Programmatic Study | P. 36
Positioned by
25%
22%
21%
23%
Survey says…
Data
Management
Platforms
3/8
Poor showing. Only 5 brands were
correctly identified as a Data Management Platform.

37. 2014 Programmatic Study | P. 37
“More transparent. Better
understanding of how it works.”
“More transparent, more refined
definitions for viewability.”
“Need to show more of how, why and
where ads appear.”
“Continue to grow. Efficiencies will be
found in improved technology.”
“The number of advertising strategies
will rapidly increase.”
“More transparency and real-time
data/reporting.”
“Easier to use thanks to better data and
more tools for sellers.”
“Growing steadily if metrics also grow and
can prove results.”
Overall Growth and ImprovementIncreased Transparency
Improved Measurement
What’s next? Programmatic will
1.Grow 2.Evolve 3.Improve 4.Change the world of media.
“More cross channel opportunities.”
“More integrated cross-device.”
“Increased acceptance and usage for online
and mobile inventory and as a method of
buying other traditional media vehicles.”
“It will grow both online and linear/VOD.”
“TV inventory will be included.”
Integration Across Media Platforms

38. 2014 Programmatic Study | P. 38
Programmatic buying will continue to accelerate
Concerns: fraud, viewability, transparency
Partnership = trust + credibility + transparency + service
ATD’s, DMP, DSP, SSPs—fairly meaningless categorizations to many
Google winning – it’s still early but Google is the predominant force
Evolution: all believe in a future of growth, improvement, cross media
integration, and, yes, even transparency
Here are
the things
I’d like you
to remember.
1.
2.
3.
4.
5.
6.

39. 2014 Programmatic Study | P. 39
Report On Programmatic Study (Winter 2014)
Kevin Mannion
Chief Strategy Officer
As Viewed By Top Buyers & Sellers
& Future
LandscapeThe Programmatic