Future of Programmatic

Digital Ads with Scalable Precision

2021 Edition

“Over the next 24 months, an incremental $22 billion will enter the programmatic digital display advertising market as advertisers continue to rely on automation to power their banner, video, social, native, and even connected TV ad buys. By 2021, 86.5% of all U.S. digital display ad dollars, or nearly $80 billion, will transact programmatically.”

eMarketer

Table of Contents

For more innovation insights, visit ana.net/marketingfutures

GETTING STARTED WITH PROGRAMMATIC

THE FUTURE OF PROGRAMMATIC

CASE STUDY: AVEENO’s Data-Driven Master Brand

EXPERT PERSPECTIVE: Fully Harnessing Programmatic as it Evolves

ESSENTIAL PROGRAMMATIC INSIGHTS

NEW APPLICATIONS FOR PROGRAMMATIC MEDIA

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Innovate. Accelerate. Grow.

ANA Marketing Futures focuses on the innovations and trends that will shape the future of marketing to prepare brands for the challenges and opportunities that lie ahead.

As programmatic marketing continues to shift and evolve, it’s crucial that businesses understand its vital impact on opportunities in advertising spaces on different mediums and platforms.

We compiled research, opinions of industry experts, and examples from top brands to provide a well-rounded resource for the state of programmatic advertising today and what it may evolve into in the future.

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What is Programmatic?

Programmatic is an algorithmic, real-time ad buying and selling process

where software automates the purchasing, optimization, and placement

of media inventory by using a bidding-based system. Modern evolutions

in this technology include the use of omnichannel platforms with AI

technology and data integration, which offers greater tracking clarity with

deeper predictability and stronger consumer insights.

Getting Started with Programmatic

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Getting Started with Programmatic

Why Should Marketers Care?

By leveraging the future of programmatic technology, marketers can

build more targeted ads for narrow segments of consumers that are a

stronger match to the content being delivered. Programmatic systems,

such as blockchain verification of legitimate traffic and advanced AI data

technology, allow for advertisement opportunities to become advanced in

their ability to deliver the right messages and offers to the right audiences

at the best time for each consumer, all while offering unprecedented

media buying transparency.

How Can It Help Your Business?

Staying current on the future of programmatic positions businesses

to leverage the new transparency and efficiency of advanced data

integration and AI technology to target and reach consumers. Advances

in the programmatic space give marketers greater control over and more

information about their ad spending.

They can also focus more on the creative

aspects of advertising, as AI technology takes

care of the data and systems integration.

As programmatic’s reach extends beyond

the digital ecosystem into more traditional

channels, such as TV and Out-of-Home

(OOH), marketers can go even further with

data-driven, personalized advertising.

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Matt SweeneyCEO at Xaxis

“It’s a challenging marketplace, and there’s so much data coming at [marketers] that they don’t know what to do sometimes, so you do what you’ve always done—rely on traditional KPIs like click-through rates or cost per thousand impressions. What I think is exciting is that there are marketers who are saying, ‘We have to do better than that.’ The promise of digital marketing has always been for a more engaging, personalized communication with a customer or prospect, and we’ve got to deliver on that.”

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The Future of Programmatic

The future of programmatic includes connected TV, programmatic media

buying, and ad-supported media through omnichannels using different

platforms. Targeted traffic connected by accurate consumer data will reach

a better, more receptive audience.

The audience will find the ads they view addressing their specific consumer

interests, creating higher overall consumer satisfaction with the ad

experience. For example, Econsultancy’s Ben Davis shares:

Ben DavisEditor at Econsultancy

“This approach enables serving ads on Spotify

during the consumer’s morning commute,

engaging them with an in-feed ad on LinkedIn

during their lunch break, and again while they

are surfing on mobile on their way home.”

The Future of Programmatic

This comprehensive approach, which efficiently creates targeted advertising

matches, will also drive advertising costs up. As consumers become

more demanding, their expectations for customized communication and

entertainment in the omnichannel ad space will also grow, requiring higher

quality, more creative advertisements to grab their attention.

As ads better match a consumer’s day-to-day experience, their value will

increase. Consumers will find them less disruptive and more entertaining

or useful. Ads tailored and targeted to each individual consumer should

increase engagement, making investments in higher quality content more

manageable and desirable. This level of customization will result in fewer

advertisements because ad-funding expenses will increase with each ad

that is created.

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AVEENO’s Data-Driven Master Brand

AVEENO activated programmatic media across mobile and desktop screens to develop a precision approach that combined pinpoint targeting with personalized messaging at scale. The program was such a success that the brand received an Effie Award.

Despite being active in multiple product categories, AVEENO products have

historically experienced very limited cross-category purchasing. The brand

leveraged programmatic media to help raise awareness for its breadth of

products, increase purchase intent and favorability across product categories,

and drive the product portfolio’s incremental sales.

CaseStudy

One of the first steps in this multifaceted activation involved leveraging

shopper loyalty card data and consumer purchase behaviors to home in

on the target: the primary household purchaser.

Targets were clustered into high-value

audiences based on the AVEENO categories they

were and were not purchasing, allowing the

brand to serve up over 18,000 pieces of unique

and engaging addressable content featuring

products the consumer had not yet purchased.

The combination of purchase-based targeting, shopper data, contextual

environmental triggers, and personalized media drove cross-product

line promotions to consumers in a relevant way and enabled AVEENO to

reach users when they were ready to buy.

To measure success, AVEENO evaluated brand lift and in-store

purchases across various retail partners.

Case Study: AVEENO’s Data-Driven Master Brand

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The result was a 12 percent lift in ad awareness

and a 6 percent lift in purchase intent across

all product segments except for Skin Relief,

surpassing benchmarks by 233 percent.

The campaign also generated strong lifts in

brand favorability, proving that AVEENO is a

loved brand, with lifts ranging from 8 to 22 percent across categories.

Finally, the campaign resulted in an average return on ad spend (ROAS)

of $12.61, exceeding the benchmark by 347 percent. Also, two product

segments, Body Wash and Aging Skincare, resulted in ROAS of $29.49

and $28.98, respectively, adding up to a 7 percent sales lift.

The campaign results exceeded all benchmarks—but AVEENO did not stop

there. Its findings allowed the brand to develop an even more robust strategy

for the future, which continues to drive success for the AVEENO portfolio.

Case Study: AVEENO’s Data-Driven Master Brand

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Ed MontesChief Revenue Officer at Dataxu

“You can’t interrupt people anymore. You have to come alongside them on their journey and find a moment where you can be useful to them, or when they’re open to information. It’s very different from the days when we’d blanket bomb them with 30-second TV ads.”

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Expert Perspective:

Fully Harnessing Programmatic as it Evolves

ANA Marketing Futures spoke with Charles Cantu, CEO of Reset Digital and

the host of the Marketing Futures Podcast, about what’s standing between

marketers and hyper-personal, truly omnichannel, data-driven advertising.

Charles CantuCEO at Reset Digital

Few areas in advertising are as contentious as the media supply chain and, specifically, programmatic. In your opinion, what is programmatic’s greatest strength and greatest weakness as of today?

The inherent advantage of programmatic media management is

its ability to move into places that do not require programmatic

transactions (television for example) and optimize ad delivery in

more robust ways with better, smarter data. As personalization

becomes more important to consumer engagement, we’re

starting to move away from an attention-based approach to

advertising and toward an intention-based approach. The

challenge will be in navigating the constantly changing media

landscape, and brands must continuously work, test, and learn

alongside their ad partners and scale relationships if they wish

to stay ahead of their competition.

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Unfortunately, many of those folks are now afraid to move.

Herein lies the opportunity and current weakness in the system.

In the early days of programmatic, we labored to inform people

that programmatic was about people. Sadly, due to the cost

of operations, many have chosen to pay people less or keep

people that are less able to think both creatively and analytically.

But there are companies in the media ecosystem that have been

slowly but methodically innovating beyond the tech and data.

These companies and people will continue to stand out and

grow while the others holding on in hopes of a nearby exit will

continue their painful journey.

Being that we’ve reached a point where AI is fully deployable, it stands to reason that the greatest strength of programmatic is its ability to do more with less at scale. What does that mean? Those doing a “good enough” job have transitioned away from spreadsheets and into more robust automated systems.

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Expert Perspective: Fully Harnessing Programmatic as it Evolves

Are there still technical barriers to overcome for programmatic to reach its full potential, or is it now a matter of the application of that tech and the nature of the brand/agency relationship?

The issues today are issues of humanity. The industry did not

build programmatic based on the outcomes they wanted for end

users, themselves, and the world. It was built based on the pure

and raw ability to capture value from within our industry, and

we’re paying for that shortsightedness now. The good news is

that as marketers and consumers (and even publishers for that

matter) begin to get focused on better outcomes with balance/

counterbalance measurement, programmatic will evolve as a

means to not only drive clicks, completed views, and sales.

Along with other tools, programmatic will become the means by which companies deliver better sustainable outcomes for themselves, their consumers, humanity, and the planet.

Technically speaking, the bigger issues are around the new

rules being applied to the tools. GDPR, CCPA, and other

forthcoming rules will predicate how everyone is allowed or

not allowed to participate. Being that most of the industry

is far behind IAB standards, it stands to reason that the

industry isn’t fully prepared for advances that are available

to us now. Those of us that are building for the future

understand that we’re developing programmatic and ad

tech tools that you may not be aware you must have yet.

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What short-term and long-term advice would you offer advertisers looking to fully harness programmatic to drive efficiencies and business growth?

Find a way to set aside budget for ongoing learnings. Reward

the players internally and externally that represent the outcomes

and the world you want to live in. If you don’t like the people

you’re working with, take responsibility for where you are and

begin your journey to find the right partners. Take note of people

who are really sharing the “innards” of the tech stack and

helping you traverse your journey in a way that galvanizes your

brand equity and success throughout this auriferous process.

Expert Perspective: Fully Harnessing Programmatic as it Evolves

Technology is a tool. AI is also a tool. And just like a bat and ball, grand slams and home runs happen when you have the right team, plays, practice, and players. Choose wisely.

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Daniel GilbertCEO at Brainlabs

“There is an arms race amongst TV broadcasters and digital platforms in terms of programmatic TV. I think we’re going to see a very accelerated progression in programmatic TV, with major breakthroughs happening next year, [such as] the first programmatic linear inventory.”

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Essential Programmatic Insights

Programmatic advertising uses audience data and technology to tailor

campaigns to the right person, at the right moment, in the right context.

When properly executed, programmatic advertising ensures that brands

only deliver helpful, relevant, and timely content to achieve its desired effect.

Done poorly (e.g. a consumer buys a winter coat at his favorite online store,

and then he gets “followed around” for the next six weeks by online ads for

winter coats he doesn’t need), it can have a detrimental impact on a brand

and waste a company’s most precious resources: time and money.

Studies have shown that billions of dollars of brand investments in digital and

programmatic advertising are being wasted. As digital ad spending continues

to increase, with current projections estimated to reach $517 billion worldwide

in 2023, according to Statista, it has become crucial for brands to be cautious

and informed when moving forward with a programmatic advertising strategy.

The following section curates essential insights for marketers currently

using programmatic or considering it.

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To capitalize on the omnichannel promise,

marketers need expertise and tools from

programmatic agencies, ad tech providers, business

and procurement teams, and trade associations.

Soliciting expert knowledge and advice will enable

brands to build more efficient teams, break down

data silos, and achieve more reliable targeting

attribution while aligning budgets with outcomes.

Expert Advice

Brands should ask their agency for a comprehensive

breakdown of their media supply chain—what each link

in the chain does, how much it costs, and what value

it adds. Complete transparency from the agency leads

brands down a path that could significantly improve the

effectiveness and efficiency of their programmatic digital

media investments.

Mapping the Supply Chain

Essential Programmatic Insights

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Companies need to work with legal and procurement teams to

review and renegotiate the terms of agency contracts at least

once a year. Agency partners need to be entirely transparent

and upfront if there are any connections between them, their

holding companies, and any technology partners in the supply

chain. To ensure the agency is optimizing, set objectives and

targets upfront and review performance regularly.

Contract Reviews and Updates

Essential Programmatic Insights

To avoid data challenges, marketers must:

Ensure data quality, which includes accuracy, completeness,

reliability, timeliness, and consistency.

Work with agency partners to establish a clear process for

data access and help make data sharing easier and ongoing.

Stay up to date on privacy issues in ad tech. Programmatic

must ensure the ethical use of data and that consumer

privacy is fully respected.

Data Quality, Access, and Privacy

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Ultimately, programmatic technology is a tool, and its essential that those who

use the tool are well equipped with the knowledge and skills to wield it well.

Brands willing to invest in their teams’ skills, whether through hiring

practices or upskilling current staff, are better positioned to run successful

programmatic marketing campaigns. This investment reduces the likelihood

that poor quality data and siloes will hinder the marketing organization. They

can better understand which links in the supply chain add value and which do

not and build a digital advertising model—with the most relevant agency and

technology partners—that delivers optimal value.

Essential Programmatic Insights

Jim SinkLeader at MediaMath’s Global Partnerships Organization

“Once considered remnant inventory, 69 percent of

all digital media will trade programmatically during

2020. First-party data is now a brand’s best asset,

and marketers increasingly want more transparency

into their digital investments, technology, and

operations. On the downside, the dawn of 2020 has

illuminated that we still have far to go to clean up

our media supply chain so it’s safe, efficient, and

valuable for all parties, from advertiser dollars to

publisher content and success.”

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Programmatic Linear TV

When it comes to media buying, traditional

TV can still deliver a strong brand message

during key moments in pop culture, such as

the Macy’s Thanksgiving Day Parade, the

Oscars, or the World Series.

However, there’s only so much watercooler programming and live TV

available in a media buy, which opens up the door for programmatic

linear TV (PLTV).

PLTV is an automated, data-driven method of planning and buying

linear TV advertising that allows advertisers to extend TV reach while

still targeting their core audience. This audience-first approach is

also faster; agencies can build the campaign, get all the parameters

set, and go live within hours. This level of agility gives agencies

more control, enabling them to optimize and adjust bids while the

campaign is live, and provides advertisers with updates in real time.

Programmatic is evolving so rapidly that it’s hard to keep up. There seems to be an opportunity for programmatic advertising through every channel, and the following section identifies the frontrunners.

New Applications for Programmatic Media

New Applications for Programmatic Media

Programmatic Advertising on Wearable Devices

Nearly 57 million people in the U.S. used a wearable

device, like a smartwatch, at least once a month in 2019.

While smartwatch advertising is in its infancy, this channel has

enormous potential for the following reasons:

Sensor technology can capture indicators of a user’s emotions

(e.g., heart-rate variability), providing a channel for highly

personalized ads based on sensual segmentation and targeting.

Smartwatch advertising opens up the opportunity for brands

looking to target a younger audience: the 25–34 segment,

representing 38 percent of the wearable device market.

These devices are a rich source of data. Wearables regularly collect

data on location, lifestyle, health metrics, and real-time moods.

The downside? Data and privacy concerns.

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Jason FurlanoSVP of Programmatic at MiQ’s Toronto office

“I’m still finding that companies are executing [omnichannel programmatic] in a very siloed format. They’re looking at digital-out-of-home, or they’re looking at OTT or connected television, and then mobile or desktop activation. And they’re actually executing predominantly through separate teams at agencies. They’re executing across a variety of channels, but it’s not connectivity focused on omnichannel in the true sense of the word.”

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New Applications for Programmatic Media

Accelerated Growth for Voice Activated Advertising

From Amazon’s Alexa to Google’s Assistant

and Apple’s Siri, analysts predict 8 billion digital

voice assistants will be in use by 2023, a substantial

increase from the 2.5 billion assistants used in 2018.

From a conversion and revenue generation standpoint, automated

technologies open up endless ad delivery opportunities between

songs or podcast content. Consumers can engage with simple voice

commands like “buy it,” “download the app,” or “I want to learn more.”

As voice-activated assistants and technologies become more

prevalent, brands will have more opportunities to engage listeners

through automated programmatic advertising.

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New Applications for Programmatic Media

Looking Ahead to 2021

Programmatic advertising is not for the faint

of heart. The industry is laden with challenges,

from evolving privacy regulations to data

issues and ad fraud. However, programmatic

advertising will continue to gain momentum

across all media channels, and the COVID-19

pandemic may help speed up its adoption.

5G networks with unprecedented data speeds will drive further

growth of content streaming on mobile devices, presenting a

significant opportunity for brands to invest in video ads for on-the-

go mobile audiences. Advances in AI and machine learning will only

improve performance ROI through this channel in the long run.

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Sources“Aveeno’s Data Driven Masterbrand.” 2018 Silver Effie Award Winner, Data-Driven. Brand: AVEENO, Johnson & Johnson. Lead Agency: J3.

“Will Three Times Be the Charm?” Keri Bruce, Partner at Reed Smith LLP; Sam Tomlinson, Partner at PwC. ANA 1-Day Conference: Law and Public Policy, 9/15/20.

“The Programmatic Promise.” MiQ, 2020.

“Fixing the Leaky Bucket: How to Optimize Value from Programmatic Buying.” Jide Sobo, Director, Strategy & Innovation at Ebiquity, 2020.

“US Programmatic Digital Display Ad Spending.” eMarketer, November 2019.

“Analyst Inbox: Lizzy Foo Kune on Common Programmatic Advertising Issues.” Gartner.

“Analyst Inbox: Lizzy Foo Kune on In-House Programmatic Advertising Challenges.” Gartner.

“Analyst Inbox: Lizzy Foo Kune on the Best Approach to Programmatic Advertising.” Gartner.

“The Future of Programmatic Advertising: Top Trends & Tech to Watch in 2020.” Phil Parrish, ProgaMetrix. April 2020.

“What Does 2020 Mean for the Future of Programmatic Advertising and its Automation?” Jim Sink, Media Math. January 2020.

“Why One Media Buyer is Embracing Programmatic Linear TV.” Marta Martinez, Think With Google. September 2019.

“Data Silos: What They Are and How to Get Rid of Them.” Swetha Amaresan, HubSpot. May 2020.

“It’s Time for AdTech to Get Serious About Data Quality.” Oliver Wellmann, MarTech Series. November 2019.

Learn more about other game-changing trends at ana.net/marketingfutures

Our Story

Knowing that marketers are increasingly challenged in their efforts to

keep up with the latest trends and technologies, the ANA tasked itself with

creating a program designed to help marketers anticipate—and prepare for—

the future of marketing.

ANA Marketing Futures is what emerged. With a focus on innovative topics

and emerging trends, ANA Marketing Futures provides resources that will

influence and inform via member cases, research studies, and insight from

industry innovators. Check back often to learn about emerging trends and

become inspired to take steps toward the growth of your business.

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