Media Economy Report 4

Media Economy Report Vol. 04

Media
Economy
Report
Better, Smarter,
Faster: How Data
is Changing our
Business.

Vol. 04

New Value Drivers
Demand

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

January 2014

Table
Of Contents

Supply
Pervasive consumer connectivity
generates tons of new data for targeting

We are in the midst of the next great transformative era
in the media business. The digital age, supported by

drive client business results, and less time on chasing

new opportunity to be more precise, more efficient, and

proposals, units, and invoices.

Demand

more effective with our clients’ media investments.

And, as we move toward automation, toward better use

Programmatic trading, born out of necessity to harness

of our people’s time, and toward better use of data and

Programmatic activity of all types
now permeates digital media

the explosion in display inventory along the digital long

technology, we create an opportunity where EVERYONE

tail, has blasted open the door to new ways of thinking

can win. Let’s break out of the zero sum game between

about media...

agencies, clients, and media owners and seize this

06

to spend more time on high level custom solutions that

data, technology, and predictive analytics has created a

Page

We want agencies staffers, clients, and media owners


Building
the
Future

New ways of reaching and influencing them at critical moments.
New ways of discovering the 50%
of advertising that works, and avoiding the 50% that doesn’t.

opportunity to all grow together.
Marketers: Better understanding of customer behavior
and improved ROI with less waste.

New Value Drivers
Timing is becoming and increasingly important
aspect of reaching receptive consumers

Page

Media Owners: Better understanding of their viewers

16
24

with improved yield through audience optimization.
Agencies: Time freed up for higher-value activity and
increased opportunity to be compensated based on

CONCLUSION

results instead of FTE hours.

Insights for a competitive
advantage

Thank you to the dozens of real live humans that
contributed to this report on data and the improved

past two years in digital are now available to improve and

processes it creates. I hope that all of us, human and

to transform ALL transactions across the traditional and

machine, can work together this year to drive the

the digital landscape. Not only to make our media work

media business forward.

harder, but also to eliminate the low value, manual pro-

Best,

cesses that still dominate the current media work flow.

Todd Gordon

34

EVP, US Director

Demand

Strategies and technologies that have come of age in the

Page

New Value Drivers

New ways of identifying who
your customers are.

Page

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MAGNA GLOBAL


Page 5

Big Data Does Not
Mean Smart Data
Past behavior is a better predictor of
future behavior than age or sex.

Traditional
Approach

Nuanced
Approach

Beginning with Demographic

Begin with Objective, e.g. sell more units

01
age

First Layer – begin with clear behaviors of likely
buyers, e.g. visited website, searched for product, etc.

sex

02

Algorithms and machine-based
learning uncover previously
unrecognizable patterns

New Value Drivers

income

Pitfalls

Assumes all women with these characteristics behave

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

Smaller, more targeted
audience most likely to buy

Supply

Demand

the same


Supply
Traditionally, “supply” has simply referred to the potential audience available
to see an ad message. However, constant connectivity has created a doubleedged 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.

5. For some categories, contextual targeting may actually be better at driving
online conversions than behavioral targeting.

New Value Drivers

to combine detailed behavioral data with contextual targeting.

Demand

4. In online media, the vast number of audience interactions allow marketers

Supply

precise targeting locally.

Key Takeaway

3. Impressions-based transactions will also create the opportunity for more


Audience Measurement
Platform (AMP)

AMP pinpoints the relationship between TV
and digital ads by media type and the resulting
business outcomes.

MAGNA GLOBAL's Custom
Data Stack

Search

Identifies audiences and media
strategies that deliver results

Sales

TV Ads

for our clients.
Digital leads

01

Brand Perception
Change

Digital Ads

Effectiveness

Planning
& Buying Tools

Case Study
IPG Mediabrands Client

Measurement &
Optimization

And in addition to measuring more traditional TV ad
campaigns, AMP is able to track custom integrations and

04

sponsorships.

02

In Show Integration

107

149

477

20

143

142

294

46

123

147

187

51

Sponsorship

169

145

997

12

Stunted Programming
Block with Sneak
Peek

163

159

281

31

Total

138

148

333

160

Buying

03
Going beyond traditional age and sex demography to

measures resulting brand outcomes. MAGNA GLOBAL’s

identify receptive consumers is the first step in an

Audience Measurement Platform accomplishes this

enhanced national TV planning and investment process;

by incorporating cost, observed media behavior, brand

one that follows the same targets through exposure and

health metrics, verified ad exposures, and sales data.

In Percent – Q3 2012 thru Q1 2013

indices

New Value Drivers

Number of
Integrations

Demand

Purchase
Intent

Sneak Peek

Programmatic

Lift in
Video Views

ROS Vignette

Cross-platform
reach and affinity

Lift in
Awareness

Supply

Promotion type

Local TV trading


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:
3. Enable more precise tar-

1. Create additional supply by
turning tiny, fickle percentages

geting when combined with

into hard numbers that can be

additional qualitative data.

aggregated.

1

Target Consumer Forecast
and Plan Optimization

Automated Execution
and Management

3

Campaign
Optimization

4. Feed into new, more efficient

2. Make local TV more comparab-

buying processes for both

le to other media.

Ingest target data

Impressions reporting

Insertion, verification, and invoicing

Adjustment of creative

37.1

Forecast
34.8

29.6

29.5

35.3

34.7

38.2

Segment creative

and goals

48.9

37.7

Place one multi-market execution
Confirm schedule and impressions

broadcast and cable inventory.

49.5

2

Generate schedule

and schedule
Export data

Ingest CPMs and adjust
DF

Low Rated Half Hours vs. Total Half Hours

CHI

Provide recommendation

BO S

NY

Increase in Available Inventory Using Impressions

WideOrbit for
Local Broadcast

Programmatic Buying
Platform
Reach

DF

CHI

NY

BO S

US

Buy

Directly connects agencies
agencies

Efficiency
up to

with 75% of US TV stations
Enables data-driven targeting to optimize buying

Provides a CPM-based model

efficiency and consumer reach

that allows agencies to buy

Delivers real-time analytics that provides audience
insight and enables on-the-fly buying optimization

DMA s in %

across markets

62

%

Buying process
reduction

Demand

LA

New Value Drivers

97

Supply

LA

11

My media buyer agency
recommended it

0

35

25

using one type alone
Another partner (such as

21

In Percent

a search agency, portal or

50

35% of advertisers are using

4. Increased focus on private marketplaces to augment open auction

59

recommended it

23%

2. Use both display and video formats
3. Exclude below-the-fold impressions

My DSP or trading desk

their programmatic buys on

1. Maximize share-of-voice using
contextual targeting in addition to
audience targeting,

2. Prove value of display ads
in driving results

Investment Mix

23%

20%
34%

Predictive
Targeting 1
Contextual
Targeting
Behavioral
Targeting
Re-Targeting 2

1 Anticipating actions based on previous behavior
2 Leveraging cookie pools built from
company website

network)

contextual targeting in

Tactics

1. Drive lowest possible cost
per action

Leading
Reasons for
Buying

Greater accuracy than

%

Goals

17

Higher performance than
using one type alone
75

Page 13

Case Study: Major Real Estate Company
Using DoubleClick Bid Manager


Online Programmatic Goes
Beyond Audience Data with
Contextual Targeting

Google’s DoubleClick Bid Manager platform.

%

Result

0,12

Contextual drove the highest
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

click-through rate – at a cost-

0,10
0,08
0,06
0,04

havioral or predictive targeting.

Audience in Context"commissioned by Google, Sept. 18, 2012

per-action 50% lower than be-

0,00

0,02
Contextual

Re-Targeting

Predictive

Behavioral

Combining tactics (audience + contextual) can drive better results across
the marketing funnel, and can be utilized across formats (display, video),

Interest

Intent

Remarketing

Keyword-contextual
Based on the specific topic a
user is reading on a web page

Interests
Based on online
browsing activity

Category-contextual
Based on the content category of the web page

Remarketing
Re-engage based on
previous engagements

Language settings
Of the browser

Female 18-24

Female 18-24

Female 18-24

Tennis enthusiast

Awareness

Female 18-24

Read tennis
racket reviews

Added tennis
rackets to cart
Purchase & Loyalty

Environment
How the ad renders
based on user’s device

Demand

Demographic
Age, gender, income
level, geography

Other
Lookalike modeling, onlineto-offline, time of day

Location
Increased precision
Supply

Demographic

Intent
In-market for products or services

CONTEXTUAL

New Value Drivers

BEHAVIORAL

screens, and inventory types (open auction or private marketplaces).

approach, one in which customer behavior and preference data determine the content and timing—and

action. This is why you see most executives looking

delivery channel—of marketing messages. Marke-

for use cases to help them to identify the low hanging

ting campaigns should be cohesive: content should

fruit. Once companies see results, it helps create a

be versioned and distributable across multiple

data-driven culture.

channels. Marketers should collect holistic data profiles on consumers, including channel response and

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

How should marketers think about approaching big

Head of Business Development

operating under the adage “build it and they will

data and integrating it into their operations?

come.” Eventually users understood what an ana-

1. Start small. Identify the top three areas of high

MAGNA GLOBAL

MasterCard Advisors
Author of Partnering with the CIO
(Wiley, 2007) and Big Data Big
Analytics (Wiley, 2013)

lytical platform was and worked together with IT to
define the business needs and approach for deriving
insights for their firm.

cheaper), mobile computing (that smart phone or mo-

In today’s Big Data Age there is an interactional

Big data is the next generation of data warehousing

bile tablet in your hand), social networking (Facebook,

model between various companies, creating more

and business analytics and is poised to deliver top line

Foursquare, Pinterest, etc.), and cloud computing

social collaboration beyond your firm’s walls. This is

revenues cost-efficiently for enterprises. The grea-

(you don ’t even have to own hardware or software

the only way marketers can cope with the major shift

test part about this phenomenon is the rapid pace of

anymore; you can rent or lease someone else ’s).

in today’s consumer.

2. A perfect data storm. Volumes of transactional data

Today’s consumer has new options that better fit

we’ll be in just two years and definitely not where we’ll

have been around for decades for most big firms, but

their digital lifestyle. They can choose which marke-

be in a decade. This new age didn’t suddenly emerge.

the flood gates have now opened with more volume ,

ting messages they receive, when, where, and from

It’s not an overnight phenomenon. It’s been coming for

velocity, and variety— the three Vs. This makes it ext-

whom. They prefer marketers who talk with them, not

a while. It has many deep roots and many branches. In

remely complex and cumbersome with current data

at them.

fact, database marketers were pioneers of big data back

management and analytics technology and practices.

The linear concept of a traditional funnel, or even a

in the 1960s!

3. A perfect convergence storm. Traditional data

succession of lifecycle “stages,” is no longer a useful

So why does it seem to be a hot topic now?

management and analytics software and hardware

framework for planning marketing campaigns and

There are three main reasons:

technologies, open-source technology, and commo-

programs. Today’s cross-channel consumer is more

dity hardware are merging to create new alternatives

dynamic, informed, and unpredictable. While using

for IT and business executives to address big data

a lifecycle model is still the best way to approach

analytics.

marketing, today’s new cross-channel customer

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

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.

New Value Drivers

Information Services

innovation and change; where we are today is not where

into account channel preferences.

Michael Minelli

Research & Analytics

What’s your definition of big data?

and more. Segmentation strategies should now take

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

Demand

EVP

preference data, social footprint/area of influence,

with your technology colleagues—they need to be
an integral part of the team.
Photo: David Sundberg/ESTO

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Keith Camoosa

Page 15

channel consumer demands a more nimble, holistic

How has big data & analytics changed marketing?

A

at a moment’s notice. Marketing to today’s cross-

people, technology tools, and most importantly pro-

and providing the ability for turning the insights into

&

Marketers must be ready with relevant marketing

value from “big data”. This “lens” is a mix of smart

per direction from management on where the focus

Q

annoyed, vocal, or quiet at any given moment.

In general, I see “smart data” as the lens to deriving

Partner
Perspective

is online, offline, captivated, distracted, satisfied,

data?


Do you make a distinction between smart data & big

Demand
Advertisers are no longer approaching programmatic as a segment of their

Page 17

Inventory that is easily standardized is quickly auto-

by machines. This integration pyramid will be mirrored

anything in a commoditized size will be bought and sold

in other media as programmatic methods encroach on

primarily by machines in the not-too-distant future.

for programmatic dollars, both real time and automated.

ted, other aspects of the transaction will be managed

campaigns will always require human stewardship,

and brands are demanding that media owners make their inventory available

Even at the high end where creative can’t be automa-

mated. While high-touch sponsorships and customized

overall strategy; data and targeting permeates all aspects of digital planning,


Digital formats
Migrating to
programmatic

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.
Customized & ‘native’
campaigns

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.

Premium formats are starting to be

Premium
formats

display advertising that will remain largely
untouched by automated buying mechanisms.

transacted programmatically. Little of

03

it will be fully RTB, at least at first.

Within 5 years in the US
(a bit longer elsewhere) the

Mid-tier
inventory

02

overwhelming majority of
non-premium inventory
will be transacted
through programmatic, primarily

Remnant

New Value Drivers

4. Advertisers aren’t only thinking about programmatic spend as a direct

Key Takeaway

rapidly increase as the ecosystem expands globally.

04

through RTB.

inventory

01

Demand

programmatic fashion, the number of advertisers trading in this way will

Non-standard campaigns are the only form of

Supply

3. While only the largest digital markets are already spending in a

Global Programmatic spend

While ‘programmatic’ was 2013’s marketing buzzword of the year,


Definition/Scope

Global Programmatic Spend ($bn)

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

30

(automated) transactions within programmatic can be recognized by

30

whether the transaction is …

30

01

RTB

NRTB

20

03

Dollar

2.8 $

0

2012

China

17.6 $

15.2 $

12.6 $

9.9 $

7.5 $

4.8 $

Japan
United States

2013

2014

2015

2016

2017

Global Programmatic Market Share

2011

80%

80

Targeting specific demographic groups or behavioral
groups while being vendor-agnostic and content-agnostic...

70

60%

60

05

United Kingdom

7.6 $
4.5 $

90

04

Germany

12.1 $

2011

Capable of adressing discrete impressions as opposed
to packages of impressions, in a cost efficient way...

Australia

16.7 $

15

Integrated with, and empowered by, media usage and
consumer data...

France

22.1 $

10

02

Netherlands

27.7 $

25

Driven by advanced technology and streamlining the
traditional mediabuying workflow...

Spain

33.3 $

59%

2012

2014

2015

2016

2017

56%
52%

50

Can be bought in "real-time", allowing feed-back loop
and continued adjustment in campaign settings...

2013

40%

40

33%

3o

31%
23%

20

Matches demand and supply from multiple vendors and
multiple buyers through bidding mechanisms...

10

%

06

0
United States

Netherlands

United Kingdom

France

Australia

Japan

Germany

Spain

China

Ecosystem

1
1

0

0
1

1

Agency
Desks

0

1

0

1

1

0
1

1

1

0

1
1

0

1

0

0

0
0

DSP's

0

0
1

1

0

1

0

1

0

0

0
1

0

1
0

0

0

1

1

1
0

1
1

Advertisers

0

0

1

1

1

0

1

1

0

0

Demand

0

0

0

1
1

1

Supply

0
0 1
1
0 1
0
1
0
0

0

1

New Value Drivers

Data Providers

Exchanges

Publishers

Many networks and cable
operators are hesitant to make
their inventory available on
automated platforms.

Radio

The ecosystem to implement
non-real time programmatic
processes is already far along
in its development.

There is significant transactional infrastructure in place that
will take time to evolve.

The tech infrastructure for
hyper-targeting isn't widespread on digital radio, so it is
largely limited to demographics
by station for now.

Digital radio already has
enough measurement in place
to show the value of each ad
and therefore the value of programmatic efficiencies can be
seen quantitatively.
Radio ads can be sold in real
time as well as cross-channel,
making it attractive as a part of
broader ad campaigns.

Digital OOH is not a common
existing element of most campaigns; programmatic dollars
will have to grow organically
and won't have much existing
spend to cannibalize.

Out-of-Home

Digital OOH inventory can be
updated in real time (and potentially, in the future, depending on who is observing).

The ecosystem is already
developing with solutions like
Vistar and Vukunet. Even before
exchanges develop, programmatic direct will be offered.

Radio only represents 7% of total spend globally so there isn't
nearly the same drive behind
programmatic development as
there is for television.

Digital OOH inventory is unique
so it's difficult to set standardized inventory types on which
to bid. Location data will have
to be very specific to give context to impressions.

New Value Drivers

The most money is spent in
television, therefore the greatest gains are available from
increases in efficiency.

Demand

TV


Inhibitors

Supply

Drivers

Programmatic for
traditional media

Media Owner
Perspective

this approach will explode creativity in the
marketplace and enable agencies, advertisers
and publishers to focus on driving unprecedented client value and the most engaging user
experiences.
What proportion of your advertising sales are


wanted to be involved. We firmly believe that

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

Q

&

A

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 –

Vincent Letang
EVP, Director
of Forecasting

Bob Lord

brands, agencies or publishers – can afford to

CEO of AOL

ignore the dramatic movement by consumers to

Networks

multi-screen and video consumption. Obviously

MAGNA GLOBAL

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.
brands scale across all screens and formats to solve

programmatic and automation following the AOL

real business problems. And I believe we’re at the right

Programmatic Upfront of September 2013?

place at the right time given the structural and econo-

So we are very bullish on achieving our goal of moving

mic pressures digital is putting on the advertising and

the conversation around programmatic from remnant

media ecosystems.

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 realtime. We have worked very hard to refocus our teams
and technologies on platforms that help agencies and

What prompted your decision to join the MAGNA
Consortium on automation?
We continue to have tremendous respect for IPG Mediabrands and MAGNA’s leadership in a move to automating

Demand

attended the Upfront and over 300 additional clients in

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

Supply

RTB to automation and efficiency. Over 650 people

New Value Drivers

Can you give us a sense of your inroads into


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

their needs based on passively collected data.

New Value Drivers

5. Many global internet users are in favor of their devices anticipating

Demand

responses to the brand.

Supply

4. Sequential messaging across TV and online also improves positive

Key Takeaway

online ad exposures, the more memorable the messages will be.

Consumers 2x as Likely to
interact with content when
it is real-time

Ad Recall By Time
(TV + Online)


Timing
Matters

A recent collaborative research study between the IPG Media Lab and multi-screen
audience aggregator Collective demonstrated that closely timed exposures across tele-

Real -Time Ad
Non Real-Time

vision and online generated significant bumps in ad recall and key brand metrics.

Interactions with Intent: % of viewers who actively
and intently engage by:

%
01 Rolling over ad for min of 0.5 seconds

100

85%

80%

90

02 AND conducting a min. of one positive action

(e.g. expand, click-through, play video, etc.)

71%

80

24%

70%

67%

63%

70
60

48%
42%

50

27%

37%

35%

40

32%

30
20

Aided Ad Recall

10

Unaided Ad Recall

12%

12%

Total Audience

Da
y
7+

Da
y
7
3-

1

-3

Da
y

Da
y
1
tPa
r
Da
y

in
ith
W

Se

qu

Da
y

en

Pa
r

tia

t

l

0

Multi-Screen Plans Have Most
To Gain From Condensed Timing

In-Market Audience

Gain In Metric With Sequential Exposures

60
50

60%

68%

40

69%
58%

30
20

Real -Time Ad

10

Non Real-Time
Brand Favorability

Purchase Intent

TV Only

TV + Online

Unaided Ad Recall

+3%

+12%

Aided Ad Recall

+12%

+21%

Overall Favourability

0%

+4%

Likelihood To Recommend

0%

+9%

Purchase Intent

-1%

+10%

Demand

70

Supply

80

Source: IPG Lab/AOL Study: The Power of Real Time

%

New Value Drivers

(Sequential Exp. Minus 7+ Day Exp.)

Incorporating Real-Time Content
Into ads Drives Favorability & Intent

Anticipatory
Computing
The idea of targeting in real-time is to create a mutually

passively collected data streams like sound and location

beneficial scenario for the brand and consumer—you’re

to proactively provide information. It is already being

offering something they need. But what if you could anti-

used in some mobile apps, and a survey of global internet

cipate those needs before they even arise?

vealed that many are ready and willing for their devices to

rather than waiting for the user to make a query, uses

anticipate their needs and recommend new experiences.

Page 29

users performed in collaboration with Microsoft has re-

That is the promise of anticipatory computing, which,

“I like devices and services that
provide me with recommendations
that are based on my previous behaviour online and are provided on
regular basis.”


“I love digital devices and services
that provide me with new recommendations or content at the moment
when I need them without me actively
seeking them out."

Global Internet Users –
“I expect technology to introduce me
to new and surprising experiences”

31%

20%

i

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?”

38%
“I expect brands to
know me and offer me
something I didn’t even
know I wanted”

30%

12%

28%

29%

e
gre

isa

N

e

gre

er A

h
eit

D
nor

ee
agr

Dis

ly
ong
Str

ee
agr

Dis

Strongly Agree
Agree

Q22. “I expect technology to introduce me to new and surprising experiences that are
uniquely tailored to me and that feel like coincidences”

41%

31%

New Value Drivers

7%

ee
Agr

20%

Neither Agree nor Disagree

Disagree

Demand

o
Str

5%

15%

8%

e

gre

yA
ngl

6%

13%

Strongly Disagree

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

Supply

17%

“I am much more likely
to buy a product or
service from a brand that
delivers pleasantly
surprising experiences”


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

What it Does - Vistar uses

What it Does - Triple Lift powers

eyetracking technology to

mobile location data to inform

native visual ad content at scale

measure attention on display

OOH buys that can be bought

by automatically reformating

advertising to provide insights

programatically

image assets to match the look
and feel of publisher's sites

and marketing accountability
Ad Experience - Premium

Ad Experience - Digital Out of

Ad Experience - Native Visual

display ads

Home

Ads similar to Pinterest

Marketing Objective -

Marketing Objective - Awareness

Marketing Objective - Build
Brand Image, Awareness,

Accountability & Measurement

Conversion

What it Does - Perch marries

What It Does - Placed is a location-

real customer data into video

motion-sensing cameras,

driven consumer insights and

to create personalized content

software and a projector to

mobile ad intelligence service.

rendered on the fly

detect product interaction at

They measure billions of location

shelf that can inform in-store

data points across the U.S.

displays

using an opt-in panel of 100,000

video typically delivered via

participants
Ad Experience - In store media
displays using a projector

Marketing Objective - Educate,
Build Relationship, Sales

Ad Experience - Survey questions
via mobile app

Demand

email

Marketing Objective - Sales
Marketing Objective Measurement & Attribution

Supply

Ad Experience - Personalized

New Value Drivers

What it Does - Idomoo integrates


Agency Perspective

Direct response advertisers have generally adopted
programmatic buying. What about brand advertisers?

What is the agency's role in an increasingly data-driven marketplace?

Brian Hughes

Forrester Research appropriately labeled this dynamic the "Splinternet"

Analysis Practice
Lead at
MAGNA GLOBAL

inventory (at the impression level) and near real-time measurability
and, as such, aligns very well with their marketing goal and

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,

Direct response advertisers were quick to adopt programmatic
because it provides an unprecedented level of choice over

The Internet continues to expand and fragment at a rapid pace.

SVP, Audience

Brian Hughes

Neeraj Kochhar

priorities. However, brand advertisers are starting to realize

Neeraj Kochhar

that programmatic management of individual exposures, via the

EVP, Managing Director
Programmatic at

use of first-and-third-party data and other indicators such as

MAGNA GLOBAL

content and context, has the potential to drive highly personalized

and massively complex. Targeted reach at scale while theoretically

communications at scale in the right environments. We are

achievable, hinges on the proper utilization and intersection of data

beginning to see a healthy increase in brand spend and I expect this

(huge amounts of it) and technology. So, agencies are now in the data

to continue and grow throughout 2014.

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

Does scale matter in programmatic?

buying capability – with investments in talent, proprietary insights, and
technology partnerships – to power highly targeted conversations with
Brian Hughes

customers across devices and channels. It’s not a trivial undertaking by

Absolutely. Swaths of premium inventory are not currently
available on the open exchanges. The combination of scale plus

any means and a massive opportunity for agencies.

programmatic buying means that we can continue to bring leverage
to bear on our deals with premium publishers at the macro level yet

Neeraj Kochhar

extract maximum value by applying programmatic techniques at

What is the biggest challenge to more widespread adoption

the micro individual exposure level.

of programmatic buying?

There is no overarching agreement in the industry regarding the

Is programmatic really this transformative force that many

definition or scope of programmatic. Programmatic has, for

in the industry suggest?

many, come to represent remnant inventory, distressed CPMs,
and strictly direct-response tactics. This simplistic association

New Value Drivers

Brian Hughes

Neeraj Kochhar

Brian Hughes

Yes. Well, that’s my personal opinion and I guess you can say that I’m

programmatic as the unprecedented opportunity to drive targeted

biased! As Stephen Baker, technology journalist, said in a post in the

reach at scale through the use of data and technology across all

New York Times about a related topic:

classes of inventory. So, in that sense, programmatic has a brand

“The Impact of new technologies is invariably misjudged because we

problem! The good news is that programmatic is very much in its

measure the future with yardsticks from the past.”

Neeraj Kochhar

Demand

has understandably left the sell side wary. The buy side views

the potential transformative power of programmatic buying.

Supply

infancy. I’m very optimistic that we can work together to fully realize

1. Consumers are twice as likely to interact with online
ad content when it is delivered in real-time.

Contributors
Brian Hughes @bhughes_magna

Supply

Demand

1. Aligning data from across the behavioral spectrum—

1. Programmatic spend no longer refers only to real-

from media exposure to sales results—creates a

time bidding (RTB); audience targeting now occurs

robust targeting methodology that drives better

via both real-time and non-real-time methods, and

decision making in national TV trading.

as a result advertisers are accessing more and more

New Finding: Past behavior is a better predictor of

premium data-enhanced inventory.

future behavior than age and sex.

New Finding: Non real-time processes will make

2. Moving from ratings to impressions in local TV

premium publishers more comfortable with doing

trading will not only create additional supply, but

business programmatically.

enable more automated transaction processes.

2. Global growth in digital programmatic trading was

New Finding: Inventory may increase by more than

nearly 60% in 2013, and will continue at nearly 40%

30%, depending on the market.

this year.

3. Impressions-based transactions will also create the

New Finding: By 2017, the digital programmatic spend

opportunity for more precise targeting locally.

across nine major markets will exceed $33 billion.

New Finding: Overlaying impressions with qualitative

3. While only the largest digital markets are already

and purchase data will make this possible.

spending in a programmatic fashion, the number of

4. In online media, the vast number audience

advertisers trading in this way will rapidly increase as

interactions allow marketers to combine detailed

the ecosystem expands globally.

behavioral data with contextual targeting.

New Finding: An expansion of infrastructure in

New Finding: Contextual indicators can include

emerging programmatic markets will make

keywords, content categories, and location.

this possible.

5. For some categories, contextual targeting may

4. Advertisers aren’t only thinking about programmatic

actually be better at driving online conversions than

spend as a direct targeting tool; programmatic

behavioral.

brand advertising is becoming more popular, and is

New Finding: Cost must also be taken into account

measurable with today’s suite of campaign tools.

when determining the success of different

New Finding: The growth in available data in

EVP, US Director, MAGNA GLOBAL

targeting methods.

developed markets has enabled highly personalized

todd.gordon@magnaglobal.com

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%.

MAGNA GLOBAL
brian.hughes@magnaglobal.com
Vincent Letang @vletang_magna
EVP, Director of Forecasting, MAGNA GLOBAL
vincent.letang@magnaglobal.com
Luke Stillman @lukestillman

3. In a multi-screen campaign, the shorter the interval

Forecasting Manager, MAGNA GLOBAL

between TV and online ad exposures, the more

luke.stillman@magnaglobal.com

memorable the messages will be.

Janice Finkel-Greene

New Finding: The difference in unaided recall between

EVP, Buying Analytics, MAGNA GLOBAL

sequential exposures and those seven days apart

janice.finkel-greene@magnaglobal.com

was 33%.

Keith Camoosa

4. Sequential messaging across TV and online also

EVP, Research & Analytics, MAGNA GLOBAL

improves positive responses to the brand.

keith.camoosa@magnaglobal.com

New Finding: The results for sequential exposures on

Tanya Kolosova

TV alone were not nearly as positive.

SVP, Director of Research and Analytics, AMP,

5. Many global internet users are in favor of their

MAGNA GLOBAL
tanya.kolosova@magnaglobal.com

devices anticipating their needs based on passively
collected data.
New Finding: More than 60% agreed that they would

Kara Manatt @karamanatt
VP, Consumer Research Strategy, IPG Media Lab
kara.manatt@ipglab.com

be much more likely buy a product or service that
delivered “pleasantly surprising experiences.”

Jack Pollock @pollockj07
Senior Analyst, IPG Media Lab
jack.pollock@ipglab.com

Neeraj Kochhar @neeraj_kochhar
Managing Director, Programmatic, MAGNA GLOBAL
neeraj.kochhar@magnaglobal.com

the availability of data in emerging markets.
Concluding Tweet

Natalie Bokenham @natlikethat
SVP, Managing Partner, Digital, UM

programmatic ecosystem.

Brian Hughes @bhughes_magna

natalie.bokenham@umww.com

Demand

5. Long term growth of advertiser spend will depend on

New Value Drivers

Todd Gordon @tpgtweets

communications at scale.

New Finding: Data is the life-blood of the

SVP, Audience Analysis Practice Lead,


New Value Drivers

Data is inching us ever closer to that “Minority
Report” moment of real-time, one-to-one
messaging, regardless of location.

Design by
Bureau Oberhaeuser @oberhaeuserinfo
contact@oberhaeuser.info

Supply

Summary Cheat Sheet

In Percent

5.5

4.2

North
America

This will primarily benefit television and digital media

year-on-year growth since 2010 (+8.4%, following the

where new formats and opportunities are being explo-

2009 recession). The non-recurring sports events of

These insights are based on the bi-annual global

and the US mid-term elections will contribute to the

advertising forecast update published on December 9,

global growth of television (+7.5%). That compares a

2013. The next update will be published in June 2014.

10.0

red for activation and branding campaigns.

2014 (Sochi Winter Olympics, Brazil Soccer World Cup)

8.7

7.6
6.3

to unlock marketing and branding budgets in 2014.

+6.1%) and reach $521.6bn, which will be the strongest

9.5

12.9

CEE

WE

ment and stronger than usual cyclical drivers is bound

advertising revenues to grow by +6.5% (previously:

-0.8

The combination of an improved economic environ-

so will advertising spending. We now expect global

Developed
Markets

11.3

1.5

As the world economy gradually improves in 2014,

0.9

14.6

2.1

12.3

Page 37

The Global
Advertising Market
2013-2014

9.5
7.9


Revenue growth by region

with a modest 1.8% growth in 2013 for TV globally.

-0.3
MEA
LATAM

Emerging
Markets

Revenues by Media
20%

15.9 15.5

15%
10%

7.5

5%

1.5 2.2

1.8

0%

Revenues 1999-2018

Emerging
Asia

APAC

-2.9
-5.0

-5%

Magazine

4.8

6.5
3.2

-3.9
-5.6

Newspaper

3.0

-10%

Television

$600

Internet

Radio

Out of Home

2013

All Media

2014

10%

Global Media Mix

Ad Market by Region
Latam

0%
$300

7%

Free TV

-5%

$200

-10%

$100

7%

Pay TV
Search
Display

emea

12% emerging
31%

7%

28%

Mobile

-15%

$0
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17

18

Video
Other Digital

Radio
Out-of-home

30%

17% mature

17%
3% Canada
10%

Magazine

YOY growth/decline

2% mea
4% CeE

21% WE

Newspaper

Advertising Revenues in constant billion USD (2012)

apac

7%

New Value Drivers

$400

3%

2% 6%
1%

9%

Demand

5%

33% USA

North america

Supply

$500

SE

Europe

North
America

United
Kindom

FI

Page 39

$2,105

DK

$22,092

490
Billion Dollars

$1,592


$3,450

NO

market size

$3,031

Total

The Global Advertising
Market 2013

Germany

$23,621
IE

$13,004

PL

$2,463

France

$1,147

Switzerland
$3,863

USA

Italy

$8,122

Spain

$5,434
PT

$673

CO

$4,914

South
Africa
$4,541

Puerto
Rico
$918

Africa

Latin
America

Brazil
$17,804

$8,083

China

$44,100

Turkey
$3,327
Lebanon
$188

Saudi
Arabia
$1,707

Pakistan
Kuwait
$308
$534
Bahrain $121
UAE

Taiwan
$1,939

India

$6,882
Thailand Hong
$4,341
Kong
$3,032

$936

Oman
$161

Sri Lanka
$143

Philippines
$1,438
Vietnam
$711
Malaysia
$2,637
Singapore
$2,012

Indonesia
$6,326

Asia
Pacific

VE

$1
,2

31

29
$7

$4

31

EC PE

Kenya
$536

Korea

Greece
$940

Qatar $236

Panama
$514

Romania $406

Egypt
$2,456

Morocco
$420

$52,070

Bulgaria $252

Middle
East

Mexico
$3,739

Costa Rica
$694

HU

Serbia $173
Croatia $251

$156,546

Kazakhstan
$329

Slovak Republic $384
$620

Austria
$3,036

Japan

$1,258

UA

CZ
$1,303

$13,376

$10,876

New Value Drivers

Belgium
$2,463

Chile
$1,419

AR

UY

$446

$5,788
1bn

5bn

10bn
in USD

Advertising Spending in $ per capita (2013)
$0

$100

$200

$300

$400

$500

$600

Reading this map: the size of each country is proportional 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.

Australia

$13,234

New
Zealand
$1,406

Demand

Canada

Russia

Supply

$4,090

LT LV EE
$1 $9 $1
44 7 10

NL

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 reaching 50% automated buying by 2016, the team in North America invests 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 information, 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 invest $37 billion in global media on the behalf of our clients, employ over
8,500 diverse and daring marketing communication specialists worldwide and operate our company businesses in more than 130 countries.
A proven entity in helping clients maximize business results through integrated, intelligence-driven marketing strategies, IPG Mediabrands is
committed to driving automated buying, pay-for-performance and digital innovation solutions through its network of media agencies including
UM, Initiative, BPN, Orion Holdings, and ID Media. Its roster of specialty service agencies including MAGNA GLOBAL, Mediabrands Audience
Platform, Mediabrands Publishing, IPG Media Lab, Ensemble, and Identity offer technologies and industry moving partnerships that are recognized for delivering unprecedented bottom line results for clients. For
more information, please visit www.ipgmediabrands.com or follow us on
Twitter @IPGMediabrands.

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