September 9, 2015
Programmatic positioning on the road to dmexco
dmexco is fast approaching and OpenX will be attending once again this year, with our team available for meetings in Hall 8, stand B053.
With the state of the programmatic industry guaranteed to be a hot topic among the 32,000+ attendees, key members of the OpenX leadership team prepare for the event by answering vital industry questions on the current position of programmatic:
Andrew Buckman, MD, EMEA – on EMEA trends:
Q: What are the current programmatic trends in the EMEA region?
A: Programmatic is growing rapidly in this region, with one in five global ad requests originating from EMEA. The UK, French, and German markets are growing particularly rapidly, with 70% of all UK digital display advertising predicted to be executed programmatically by 2016*. Mobile is increasingly influential in programmatic advertising in EMEA, and programmatic ad spend on mobile platforms will overtake desktop in the UK by the end of 2015.
Programmatic traffic quality is an incredibly important issue for buyers in EMEA. In a joint digital marketer survey with ExchangeWire, OpenX discovered that investing in programmatic is perceived as high risk compared to other channels due to traffic quality issues, and that 84% of marketers would invest more in programmatic if marketplace quality was no longer a concern. A combination of sophisticated technological solutions and human review is required to detect and eliminate threats to the marketplace, and OpenX has a large team of employees dedicated to improving traffic quality. We have also been ranked number 1 for inventory quality in the Pixalate Global Seller Trust Index for three consecutive months.
Rob Kramer, General Manager, Mobile – on mobile:
Q: What are the key trends in mobile at the moment?
A: The shift from desktop to mobile-optimised web is occurring at a rapid pace – with demand for mobile inventory growing four times faster than demand for desktop ad units – encouraging publishers to focus on augmenting their inventory and adjusting their monetisation strategy in a non-cookie world. This is leading to a move from standard IAB banners towards native and video formats for mobile – specifically for in-app, as mobile app ad requests are growing four times faster than mobile web requests.
Ad blocking on mobile websites has many publishers panicking at present as the new IOS9 – which is currently being rolled out – could prevent advertising on mobile websites . Other key mobile trends include the rise in various auto, dynamic, mediation, and monetisation platforms, and increasing concerns over GPS location fraud.
Q: How is technology developing to better track users across devices, including mobile?
A: There are various approaches to cross device identification for audience targeting across desktop, mobile web, and app. At OpenX we are focussed on the probabilistic approach, algorithmically analysing thousands of different anonymous data points – such as device type, operating system, location data associated with bid requests, and time of day – to recognise and target specific users across multiple devices.
Qasim Saifee, Senior Vice President – on monetisation:
Q: How can publishers better monetise their inventory?
A: Publishers should consider the following three key areas when monetising inventory:
- Publisher centricity – Ideally publishers should partner with an ad tech company that is fully aligned with the supply side. This partnership will ensure the best possible yields for the publisher, rather than optimising for both the buy and sell side and potentially working against publisher interests by driving down prices or decreasing competition. A publisher-centric ad exchange will maximise publisher revenue by creating competition between buyers, and will allow publishers to set a minimum floor price to avoid devaluing inventory.
- Technology – The marketing technology landscape is evolving rapidly so publishers should ensure they are using the latest in programmatic technology, for example using the header bidding model rather than the traditional publisher waterfall.
- Quality – Brand safety is a high priority for advertisers, so maintaining high content quality levels is key to driving demand. In addition, publishers should consider adopting high impact ad units that are popular with buyers ¬– such as IAB rising stars, and diversifying content to support a range of ad formats such as video.
Paul Sternhell, General Manager, Ad Server and Programmatic Direct – on ad servers:
Q: How has programmatic guaranteed and the infiltration of multiple devices affected the role of ad servers?
A: Although ad servers still need to support some direct sale campaigns, the emergence of new models such as programmatic guaranteed has reduced the importance of traditional sales and order entry support features. While functions such as forecasting, incorporating viewability, and consolidated reporting are still crucial, programmatic ad servers now undertake the bare minimum in terms of managing inventory and connecting to a web page, and use programmatic technology for the rest.
The rise of programmatic and multiscreen means that – rather than working as a stand-alone technology – ad servers now frequently act as a gateway to other platforms such as ad exchanges. Owning the ad server on the publisher’s page often provides monetisation platform providers preferred access to publisher inventory resulting in the first opportunity to monetise it.
Ian Davidson, Senior Director, Platform Demand – on the OpenX platform:
Q: How is the buy side of the programmatic advertising industry evolving?
A: Advertisers are the driving force for change in the programmatic industry and various elements on the buy side are evolving in parallel. Viewability is still a major concern and buyers are demanding viewability rates of between 70% and 100%, although actual rates are typically much lower, averaging below 50%. Once the issue of wasted, non-viewable impressions is resolved, advertisers will be able to focus on the more exciting and creative aspects of programmatic such as sequential storytelling and omnichannel campaigns.
Meet the OpenX team at dmexco in Hall 8, stand B053 to learn more about key programmatic industry trends. To book a meeting with a member of our team please email email@example.com