This document discusses the shift in how audiences are consuming content and how advertisers are buying video advertising. It notes that audiences are becoming more fragmented and migrating to new platforms like mobile devices. It also shows data on the rise in time spent with online video and mobile devices. The document then discusses how advertisers are changing their video buying from traditional upfront and direct buys to programmatic buying through demand side platforms and exchanges. It suggests that programmatic buying for video has tripled from 2011 to 2012. Finally, it introduces the concept of private marketplaces for video as allowing publishers to sell their audiences at scale across their content channels and devices.
2. There is a shift happening.
Content used to be the proxy for audience…
3. …but audiences are becoming fragmented
and migrating to new platforms.
61.6%
12.9%
2003
2009
2012
2006
1982
1985
1991
1997
2000
1952
1955
1958
1961
1964
1967
1970
1973
1976
1979
1988
1994
Source: Nielsen
4. So where is the audience?
Time Spent on Mobile Devices
(min/day)
80
60
40
20
0
2009 2010 2011 2012
eMarketer, 2013
5. So where is the audience?
Time Spent Per Week
with Online Video
(hrs:min)
4:20
3:26
2:53
2:20
2009 2010 2011 2012
Source: Arbitron and Edison Research,
“The Infinite Dial”, 2012
6. How are advertisers buying video?
2011 2012
TV Upfront 44%
19%
Trading Desks 19%
11%
DSPs
36%
11%
Exchanges
32%
61%
Ad Networks
81%
Direct from 78%
Publishers 52%
Source: Adap.tv/Digiday Video State of the Industry Survey
7. Programmatic buying has
tripled
2011 2012
11%
DSPs
36%
11%
Exchanges
32%
Source: Adap.tv/Digiday Video State of the Industry Survey
8. Manual video buying is declining
manual
2012 2017
Digital Media Buying Forecast, 2012 To 2017
Joanna O’Connell, Niki Scevak and Anthony Mullen, October 9, 2012
9. Programmatic Video buying is growing
> 65%
a compound annual
rate of 17%
manual
< 30%
2012 2017
Digital Media Buying Forecast, 2012 To 2017
Joanna O’Connell, Niki Scevak and Anthony Mullen, October 9, 2012
10. The drums are beating!
“Ford Embraces Programmatic Buying” - MediaPost
“Programmatic Buying is Taking Over the Media-Buying Space”
– Bob Arnold, Global Strategy Director, Kellogg’s
“Nielsen, ComScore
“Top-tier Marketers See a
Battle for Online
Future in Programmatic
Audience Ratings” – Buys” - SmartBrief
Social Times
“Group M: Programmatic Surges”- AdExchanger
“The Next Big Thing In Digital Marketing: Programmatic” – ClickZ
11. Private marketplace
your ability to sell your
audience at scale,
programmatically,
across all of your content
channels and devices
12.
13. 8% 28% Publishers Using Private
Marketplaces for Video
Currently Within 12 Months
14. What does a private marketplace look like?
Proprietary 3rd party Audience Rich media Brand
auditing and
data data verification vendor Study/survey’s
Demand Supply
Sources Sources
Invited buyers O&O
- committed Private Syndicated
player
Invited buyers
– spot
Video
Publisher
Invited buyers Marketplace partnerships
– RTB API
API
Back office systems
15. PRESENTED BY
Henk Van Niekerk
VP, Platform
One Waters Park Drive, Suite 250
San Mateo, CA 94403 www.adap.tv
16. You can find this data and
more industry insights at
The Video Wire
www.blog.adap.tv
Notas do Editor
What ’s happening now… brands still want to be next to content, but their audiences are everywhere. Why are we seeing this growing trend in programmatic video buying? 15 years ago, it was easy to buy an audience. Working with a few broadcast networks enabled you to reach 80% of your target market.
Why are we seeing this growing trend in programmatic video buying? 15 years ago, it was easy to buy an audience. Working with a few broadcast networks enabled you to reach 80% of your target market.
Jason Bazinet , Citigroup Change in Same Day ratings
When advertisers were asked where they buy their online video ad inventory, the most common answer was ad networks at 73 percent. However, the growth in use of ad networks remained relatively flat. The more interesting story is the substantial rise in inventory sourcing via automated environments. It would appear that advertisers are demanding pricing efficiency and are finding it from a mix of suppliers including exchanges (29 percent vs. 15 percent in 2011), demand-side platforms or DSPs (32 percent vs. 15 percent in 2011) and trading desks (27 percent). Trading desks were included for the first time as a choice in this year ’s study but came out of the gate right from the start.
When advertisers were asked where they buy their online video ad inventory, the most common answer was ad networks at 73 percent. However, the growth in use of ad networks remained relatively flat. The more interesting story is the substantial rise in inventory sourcing via automated environments. It would appear that advertisers are demanding pricing efficiency and are finding it from a mix of suppliers including exchanges (29 percent vs. 15 percent in 2011), demand-side platforms or DSPs (32 percent vs. 15 percent in 2011) and trading desks (27 percent). Trading desks were included for the first time as a choice in this year ’s study but came out of the gate right from the start.
When advertisers were asked where they buy their online video ad inventory, the most common answer was ad networks at 73 percent. However, the growth in use of ad networks remained relatively flat. The more interesting story is the substantial rise in inventory sourcing via automated environments. It would appear that advertisers are demanding pricing efficiency and are finding it from a mix of suppliers including exchanges (29 percent vs. 15 percent in 2011), demand-side platforms or DSPs (32 percent vs. 15 percent in 2011) and trading desks (27 percent). Trading desks were included for the first time as a choice in this year ’s study but came out of the gate right from the start.