Datmean just released the first study carried out in Spain about programmatic buying and data. The research points out where Spain stands on this subject and the challenges the country is facing in 2017

1. Programmatic and Data: What is Happening

2. It is the purchasing and selling of
advertising inventory in an automated
way through technology and based on
data of users’ actual behavior.
It is not about residual or low cost
inventory, it is about buying at a fair
price.
What is
Programmatic Ad
buying?
Programmatic Advertising

3. Why is it important?
• Scale: It allows for the purchase of all available advertising inventory on the
internet.
• Flexibility: Measures in real time every impression, enabling the optimization
of the marketing campaign.
• Targeting: the possibility to precisely choose which consumer sees which
message and at which moment (effective audience).
• Efficiency: pay to reach consumers that are then impacted, increasing the
ROI of the online investment and optimizing costs.

4. What are they looking for?
Advertisers, Agencies and Publishers
all have different priorities or different
reasons for investing in Programmatic.
Reaching the Target in an efficient
way and Operational Efficiencies are
the most important reasons
according to this study by e-Marketer.
Source: e-Marketer

5. Elements of the Eco-System
Collectors and processors of
data with the capacity to direct
them to specific brands and
media actions.
Data Supplier
Allow the connection between
advertisers and agencies,
providing them with a multitude
of inventory.
Trading Desk
Open Auction: there are no restrictions on
selling ad space.
Private Auction: a selection of advertisers
that bid on the ad space
ADExchange
Help advertisers define their
target market through the
analysis of data (1st and 3rd
party data).
DMP
Manage the sale of ad space,
sending impressions to the
best buyer.
SSP
Optimize digital marketing
campaigns and manage
demand.
DSP

6. Trading
Desk
Trading
Desk
How does it all work?
Eco-System
Source: Datmean 2016
Audiences
Audiences Audiences
Demand Suppy
Guaranteed
Priority
Data Market Exchange (Second Party Deals)
Third Audience Platforms
Audiences

7. “Without data you are just another person
with an opinion”
W. Edwards Deming
Data Scientist
Programmatic buying and the complex
ecosystem surrounding it is supporting
itself, little by little, on the knowledge of its
audience to reinforce its positioning and
value.
We are moving towards the sustainable
combination of Big Data and Real Time
Bidding.

8. First Party Data
Third Party Data
Second Party Data
1st
2nd
3rd
1st party: data that a company
collects directly from its
consumers.
2nd party: data from the sale of 1st
party data from one company to
another.
3rd party: data that can be
purchased pre-collected by an
external provider
How we classify Data

9. In what proportions are they used?
79%
70%
72%
43%
48%
27%
44%
69%
40%
Advertisers Agencies Publishers
1st party 2nd party 3rd party
Source: Iab Europe, 2016

10. Where does all this Data come from?
0% 10% 20% 30% 40% 50% 60% 70% 80%
Ad Exchanges
DMP
DSP
SSP
Data Marketplace
Data supplier
Own data
Publishers Agencies Advertisers
Source: Iab Europe2016

11. How to benefit from it?
Activation of Data:
1. Data Input.
2. Revelation of value.
3. Analysis of Data.
4. Generation of Insights.
Collecting large volumes of data is not everything; being able to work with this amount of
information and knowing how to process it through the use of efficient algorithms is what is
very useful. Thanks to this, it is possible to disclose the information in a way that it can be used
according to its relevance.
Source: Krux

12. • Offers insights regarding behavior on the web.
• Creates segments with behavioral data.
• Provides a more complete view of customers.
• Enables the use of more effective and efficient strategies.
• Helps control advertising costs and improve ROI.
• Brings greater control over the data assets.
Utilization of Data

13. Data Lock03 Premium Deals 01
BlackList02Post&PreBid04
Post-Bid analysis that helps identify
and classify URLs that use bad
practices. This information is used in
later bids to improve the control of the
ad buy.
Post & Pre Bid
Guaranteed protection of Data,
who uses the data and for what
purpose.
Data Lock
Limit the auctions to URLs
that have passed the filter of
more than 50,000 sites .that
are blocked for fraud or bad
practices.
Black List
Agreements with the principal
publishers, assuring presence on
Premium sites.
Premium Deals
Protecting Data: Brand Safety

14. 51%
39%
37%
2%
Lost sales opportunities
Wasted time/inefficiency
of process
Diminished relationships
with customers/prospects
Negative cultural impact
onemployees
Other
56%
Source: e-Marketer
Data Quality
“Data Quality Becomes a Top Concern for
Marketers”
Low quality Data can cause
lost sales opportunities,
inefficient processes and
diminished relationships with
customers among other
problems according to a
study from e-Marketer.

15. Source: Iguazio
Volume
VelocityVariety
PB
GB
MB
Table
Database
Photo
Web
Audio
Social
Video
Mobile
Unstructured
Batch
Periodic
Near Real-
Time
Real-Time
TB
Veracity
Quality
Unstrusted
Uncleaned
Uncertainty
Big Data or what we call “Big
Data” has four dimensions, each
one with its own characteristics:
Volume, Variety, Velocity and
Veracity.
Dimmensions of Big Data

16. Programmatic is much more than RTB
Reserved Not Reserved
Type of Inventory
Auction
Model
Guaranteed
PriceSetting
Source: Iab
Private Auction
Open Auction
RTB
Automatic
Guaranteed
No Guarantee
(preferred
agreement)

17. Programmatic vs RTB
Global Market of Programmatic and RTB ($.US mm)
Source: Socintel360, 2014.

18. 1990
2008
Now
2019
Reserved Buying
AD Networks
Ad Exchanges &
SSP
DSP’s
RTB
Prediction era
Evolution of programmatic

19. What is happening in the World?

20. United States
9,8
12,4
14,8
16,6
21,9
27,3
2014 2015 2016
Spending on Programmatic Advertising
($bn)
United States World
Source: e-Marketer
34% 29% 36%
41%
32%
27%
47%
32% 21%
RTB Non-RTB Non Programmatic
Market Share
2014 2015 2016
Source: GlobalMagna 2013
Here is how the United Sates’ market is evolving:

21. Europe
19%
28%
41%
18%
27%
45%
11%
16%
23%
2013 2014 2015
Share of Programmatic by format
Display Mobile Video
Source: IHS, Iab Europe
1.947
3.339
5.685
2013 2014 2015
Programmatic Spending (€m)
Source: IHS, Iab Europe
… and the European Market?

22. Europe
59%
56%
60%
33%
31% 31% 31%
UK France Netherlands Germany Spain Italy Greece
Source: MagnaGlobal
Estimated growth rate of Programmatic (2017)
Source: ExchangeWire, 2014
Total Investment in Programmatic buying ($mm)

23. Spain
39,3
31,1
8,2
49,2
36,9
12,3
Total Display Video
Investment in Programmatic
S1 2015 S1 2016
+ 25,60%
+ 19,30%
+ 50,51%
Source: Iab Spain, 2016.
The Spanish market has
adopted programmatic
somewhat late, however, it
is turning into a
fundamental element of
digital marketing and there
is a promising future for
this sector.

24. Spain
82,08%
17,92%
Investment in Video S1 2016
Negociated Programatic
Source: Iab Spain, 2016.
85,75%
14,03%
Investment in Display S1 2016
Negociated Programatic
Source: Iab Spain, 2016.

25. Latin America
Growth of Programmatic in 2016
Growth in Programmatic
of 197,9% in the rest of
LATAM in 2016
Growth in Brazil of
198,3% in 2016
Latin America is, on a global level,
the continent with the lowest
programmatic spending but also
the area of the fastest growth..
Brazil, Mexico, Argentina and
Colombia lead LATAM, being the
countries that are most quickly
adopting programmatic.
Source: E-marketer, Forrester, BI Intelligence

26. Is Programmatic the Future?
Yes
The buying and selling of Ad space thanks
to Programmatic is growing exponentially.
However, the vast majority of ads
purchased and sold in a programmatic
way are Online and Mobile.
Source: e-Marketer 2012.
Spending on RTB in online advertising – USA

27. Course of Programmatic
$0,31
$0,71
$2,16
$4,43
201,0%
127,8%
206,0%
105,0%
0,5% 1,0% 3,0% 6,0%
2015 2016 2017 2018
Programmatic Ad Spending Variation % Programmatic % over TV
Source: e-Marketer, 2016.
Programmatic TV
Advertising spending on Programmatic Advertising vs
Conventional Advertising in the USA
Video
Spend on Programmatic Advertising in the USA ($bn)
Source: e-Marketer, 2016.

28. 1. The concept of Transparency will be increasingly demanded by the market.
2. A Consolidation of the market of DSPs market is expected in 2017.
3. The Fight against Fraud and the Phenomenon of Ad-blocking will continue to be relevant.
4. Increase of preferential agreements with Premium Media through Brands, in an
increasing manner, will execute specific targeting strategies as well as niche targeting
strategies based on need.
5. The Marketing of Content and Programmatic should be intertwined, providing a qualified
product that provides more value to the End User.
Predictions of Programmatic

29. 6. Dashboard visualization tools will grow rapidly due to the need of advertisers to get
more real-time information on their campaigns
7. An Increase in 2nd Party agreements, sharing audiences including cross-device as well as
behavioral insights between companies with complimentary products.
8. New mediums such as Radio and Outdoor will soon be available for Programmatic
purchasing in Spain.
9. The Mobile medium should be consolidated as the big bet in programmatic for 2017.
10. The difficulties in finding Candidates with knowledge of programmatic will continue, which
is an opportunity for many people.
Predictions of Programmatic

30. “Machines are for
answers, humans are
for questions”
Kevin Kelly

31. www.datmean.com