Programmatic Buying and the Role of TGI

Geoff Wicken

Head of TGI International, Kantar Media

Shanghai,

September 2015

Agenda 1. The Programmatic market – trends and forecasts

2. How research providers can help buyers and sellers

3. Building solutions with TGI

Programmatic – what does it mean?…

Au

tom

ated

Machine-processed transaction between buyers and sellers of online display advertising space Eff

icie

nt Ads are bought in

real time

Sp

ecif

ic

Opportunity to show a specific ad…

…to a specific consumer…

…in a specific context

337

1,254

1,259

1,270

1,694

2,996

3,317

4,405

7,327

17,706

India

Australia

Brazil

France

Canada

Germany

UK

Japan

China

US

Online display advertising expenditure by key market, 2014 (US$m)

Source: Magna Global

165

466

635

719

806

837

840

898

2,355

11,155

India

Brazil

France

Germany

China

Japan

Australia

Canada

UK

US

Programmatic advertising expenditure by key market, 2014 (US$m)

Source: Magna Global

45%

48%

48%

51%

53%

55%

56%

63%

76%

123%

Japan

France

US

Germany

UK

Australia

Canada

Brazil

India

China

Annual growth in Programmatic ad expenditure, 2014 vs 2013

Source: Magna Global

Growth in the Programmatic share of online display advertising expenditure

% share of total online display spend Source: Magna Global

Forecast Programmatic share of online display ad expenditure, 2018

Source: Magna Global

Two key trends within online and Programmatic advertising

1. The move from quantity to quality

Programmatic – the move from quantity to quality Publisher strategy is changing:

• Away from direct selling

• Towards placing high quality inventory into

the programmatic environment

This also has implications for buyers:

• Improved quality and access to inventory

• Enhanced access to audiences

• More efficiency – orders are sent

electronically rather than on paper

Two key trends within online and Programmatic advertising

2. The move to mobile – growing faster than any other advertising category

32.4 33.4 33.0 32.0 29.0 26.7 23.9

4.4 10.4

18.9 28.5

40.2 49.6 57.5

2012 2013 2014 2015 2016 2017 2018

Mobile

Desktop

Source: eMarketer

US digital ad expenditure by channel, 2012-2018 forecast (US$bn)

+19% +18% +17% +10% +7% +14% Annual growth – total market

+139% +81% +51% +23% +16% +41% Annual growth – mobile

57.5

0.9

40.6

11.1 7.6 5.3

0

10

20

30

40

50

60

2013 2014 2015 2016 2017 2018

US

China

UK

Japan

Germany

Mobile internet ad expenditure by country, 2013-2018 forecast (US$bn)

Source: eMarketer

The digital eco-system

How research providers can help buyers and sellers

Agencies Buyers (DSP) Ad Exchanges Supply Side (SSP) Publishers Advertiser Creative

Many players exist in both desktop and mobile advertising

- Hard to create formal data definitions and standards

- Agency plans become diluted once passed to delivery partners – with no true end-to-end solution.

Opportunity for providers of quality research sources such as TGI

- Use detailed offline metrics to determine decisions in the online world

- Consistent audience definition through all stages of the process.

Build a programmatic solution that allows for a connected end-to-end planning process

- To ensure client objectives are met in a programmatic environment with premium inventory

Connecting the stages

Building Programmatic solutions with TGI

Working towards a total Programmatic solution with two product offers:

- Site-based solution (TGI Digital Planner).

- Tools that encourage the use of TGI Clickstream data in the buying and

selling of premium inventory.

- Driving improved quality and efficiency for buyers and sellers

- Cookie-based solution (TGI Ad-Vantage).

- Allows agencies to create and buy custom online audiences based on

TGI variables.

Site-Based Buying

Programmatic Integration with

TGI Digital Planner

TGI can help to enable the “automated guaranteed”

premium marketplace through the provision of data

to both buyers and sellers

When integrated with SSPs, the technology will

provide:

- faster access to ad inventory

- complete pricing control

- immediate delivery of campaigns

Site-based solution: the TGI Digital Planner

TGI Digital Planner

Choose exactly where you want the campaign

to appear from the TGI Clickstream list of sites -

taking into account online reach and accuracy

Identify the most relevant target for advertisers

from 700 categories and 4,000 brands -

or import a TGI target already created

for an advertiser client

TGI Digital Planner allows you to link between strategy and digital media buying

Providing value for advertisers, agencies and publishers

Technology Publishers Agencies

Use TGI to sell offline and

online media

Use TGI to understand brands and

build efficient targets

Action via TGI Digital Planner

integrated with Supply Side

Platforms (SSPs)

SUPPLY DEMAND

TGI becomes the digital currency which allows a consistent audience to be used for campaigns,

across the programmatic guaranteed trading market

TGI Digital Planner – connects planning with delivery

PLANNING GOAL

_______________________

The online planning app allows users to

identify the most effective digital media

plan for a specific brand or consumer

target

FOR AGENCIES

_______________________

Easy-use system to create the media plan for

the audience target, and convert this into

instructions for their buying platform

FOR PUBLISHERS

_______________________

A showcase that allows agencies to see

publisher sites and understand their

effectiveness for brand-led campaigns

Offering benefits for agencies and publishers – and quality outcomes for advertisers

Cookie-Based Buying

TGI Ad-Vantage:

Translating Campaign Targets for Agency

Programmatic Buying

The highly targeted brief

TGI has the answer

ONLINE

PLANNING

BRIEF

How do I reach this exact highly

targeted group online? TV provider new offering

Ability to watch different

programmes in different rooms

across different devices.

Watch a program without

compromising another

family member’s

viewing experience

The ‘Who, Why and How’ of

consumer understanding:

product use, leisure activities,

demographics, media

consumption, attitudes,

motivations.

c. 25,000

-

representative

sample of all adults

in Great Britain

Media industry currency data

source. Over 300 clients –

communications agencies,

media owners and brand

owners.

High Quality Comprehensive Trusted

Bespoke models built by

statisticians using

transactional data.

On/Offline transactional data

on 33 million individuals

Link models to over 60

million targetable online

profiles

Scale Predictive

Modelling

Cookie Data

Link

Kantar Media Ad-Vantage

KBM Group’s i-Behavior

on/offline database

33 million …a set of

which are ‘cookied’.

These cookies

are then made

available to the

adserving platform

3 years of TGI

matched with i-Behavior

transactional database

through emails and

addresses

52,000 individual

respondents

Modelled out over i-Behavior database using

propensity (look-a-like) modelling...

How it works

TGI seed

respondents

Our target group using

TV TECH ENTHUSIASTS

Definitely agree – ‘PVR technology has

changed the way

I watch TV’

Watch TV across multiple devices: desktop,

laptop, mobile, tablet

Reaching the exact target

We want to target “my family”

In this huge target group

Generate cookies to reach

this exact target

Result

33% increase in

average video

viewing time

Ad-Serving

Platform

Programmatic Buying and the Role of TGI

Geoff Wicken

Head of TGI International, Kantar Media

Shanghai, September

2015