Mobile advertising is transforming the industry, but when will mobile, specifically native and video formats, truly adapt to programmatic buying? OpenX, which helped Digiday pioneer the industry's first collective look at "Programmatic + Premium" in 2013, is again taking the lead in looking at the next phase in the evolution of programmatic, across screens and formats. In this presentation, we’ll share our provocative findings about the perception and reality of mobile adoption on programmatic channels from both buyers and sellers.

1. Programmatic + Mobile:
The Divide Between Buyers and Sellers
RobKramer
GM of Mobile,OpenX

2. Today’s Discussion
• Methodology and Participants
• Executive Summary
• Top Findings
Agenda

3. Methodology & Participants
Seller: 56%
Buyer: 44%
Retargeter
1%
Publisher
41%
Agency
27%
Ad Network
9%
DSP
8%
Brand
7%
SSP
4%
Ad Exchange
3%Method
• Format: all responses collected via
email survey
• Timeline: ran for three weeks from
Feb 10 – Feb 28
• Incentive: chance to win $500 gift
or free trip to DPS
Participants
Total – 478 Respondents
Seller – 265
Buyer – 213

4. • Programmatic continues rapid adoption with 82% of sellers and 83% of buyers reporting higher usage in
2013 vs. 2012
• Programmatic Buying on Mobile
– Audience targeting is a key area of disconnect between buyers and sellers with interest from
buyers being 2x higher (74% vs. 34%).
– +50% of buyers cite mobile banners as most desirable formats, though publishers favor
substantially more (81% vs. 56%).
• …Across Native and Video Formats
– Buyers and sellers agreed on definition of native but differ on who should standardize.
– Buyers place higher priority on conversions and time spent vs. traditional metrics such as PVs,
impressions, and UVs.
– Pre-roll video is the popular format with buyers – by more than double that sellers find this format
desirable to automate.
Executive Summary

5. In 2013, was your revenue from / spending on programmatic ad channels
higher, lower or the same as it was in 2012?
15%
2%
14%
55%
83%
21%
5%
13%
81%
82%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Lower by %
Lower
Exactly the same
Higher by %
Higher
Sellers Buyers
Q. In 2013, was your spending on programmatic ad channels higher, lower or
the same as it was in 2012?

6. Top reasons why SELLERS find it challenging to make money via
programmatic Mobile channels
10%
25%
27%
31%
32%
48%
0% 10% 20% 30% 40% 50% 60%
Insufficient advertiser demand
Implementing multiple SDKs
Inability to provide targeting
Insufficient inventory
Inability to measure success
We do not find it hard to make
money via programmatic
mobile channels
Q. Please select the top reasons why you find it challenging to make money via
programmatic MOBILE channels (select no more than 3):

7. Top reasons why BUYERS find it challenging to buy Mobile ads via
programmatic channels
10%
16%
26%
27%
29%
44%
47%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Lack of robust targeting
Inability to measure effectiveness
Poor performance/ROI
Limited ad formats
Not enough inventory
We do not find it hard to buy Mobile
ads via programmatic channels
Too expensive
Q. Please select the top reasons why you find it challenging to buy Mobile ads via
programmatic channels (select no more than 3):

8. Most popular TARGETING parameters for the Mobile ads you sell / buy via
programmatic channels
42%
4%
51%
17%
74%
53%
12%
17%
31%
33%
37%
64%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Sellers Buyers
By content (site or app)
By audience
By device
By location (GPS-derived lat/long)
By operating system
Using retargeting
Q. Please select the most popular targeting parameters for the Mobile ads you buy or sell via
programmatic channels (select no more than 3):

9. Most desirable FORMATS for programmatic mobile?
3%
22%
16%
25%
56%
47%
31%
56%
0%
7%
13%
19%
20%
27%
35%
81%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Sellers Buyers
Banners
Interstitials
Rich media
Pre-roll videos
Native ads
IAB rising stars
Interstitial videos
Offer walls
Q. Please select the most popular ad formats for buying or selling Mobile ads via
programmatic channels (select no more than 3):

10. Which descriptions best define NATIVE advertising?
14%
21%
43%
43%
74%
19%
37%
45%
37%
69%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Sellers Buyers
Ad experience mimics that of the
site’s or mobile app’s content
Custom content written by a
publisher’s editorial team on behalf
of an advertiser
Ad unit endemic to the site
or Mobile app
Custom content written by
advertiser/agency
Non-standard ad units
Q. Please select the descriptions below that you believe best define Native
advertising (select no more than 3):

11. Who should be responsible for creating standardized ad units
for NATIVE ads in programmatic channels?
20%
11%
42%
27%
14%
21%
26%
39%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Sellers Buyers
Publisher
Marketing Associations
(e.g. IAB, MMA)
Ad technology provider
Advertiser
Q. Please select who should be responsible for creating standardized ad units for Native
advertising via programmatic channels:

12. Ways you measure success for NATIVE advertising on Mobile:
11%
10%
38%
53%
42%
53%
20%
41%
27%
29%
29%
41%
41%
41%
43%
51%
0% 10% 20% 30% 40% 50% 60%
Sellers Buyers
Click-through rates
Impressions
Conversions (e.g. leads, installs)
Total number of social engagements
(e.g. likes, shares, tweets)
Time spent on content
Brand lift
Pageviews
Unique visitors
Q. Please select the top 3 ways you and/or your clients measure success for
Native advertising on Mobile devices:

13. Top challenges in selling / buying NATIVE ads on Mobile
via programmatic channels:
21%
21%
32%
59%
59%
12%
27%
30%
46%
49%
0% 10% 20% 30% 40% 50% 60% 70%
Sellers Buyers
Scaling issues – native ads can’t be
bought and sold across a multitude
of sites and devices (PC, mobile)
Native by definition is
custom, therefore it can’t be
automated
Brand-safe controls are not
fully evolved
Automated native ads don’t have
publisher oversight
Native ads aren’t targeted
Q13 Please select your top challenges for buying or selling Native ads on Mobile via
programmatic channels (select no more than 3):

14. Most desirable targeting parameters for BUYING / SELLING Video ads
on Mobile via programmatic channels:
1%
41%
10%
47%
40%
74%
19%
23%
26%
31%
43%
48%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Sellers Buyers
By audience
By page or mobile app content
By video content
By device
By location (GPS-derived lat/long)
By operating system
Q34 Please select the most popular targeting parameters for selling Video ads
on Mobile devices via programmatic channels (select no more than 3):

15. Most popular ad formats for BUYING / SELLING Video ads for Mobile
devices via programmatic channels:
7%
16%
42%
21%
53%
73%
4%
10%
26%
29%
38%
66%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Sellers Buyers
Pre-roll video
Interstitial video
Banners
Rich media
Mid-roll video
Post-roll video
Q. Please select the most popular ad formats for selling Video ads for Mobile
devices via programmatic channels (select no more than 3):

16. THANK YOU!
Rob Kramer
GM of Mobile, OpenX
@smartfuel