programmatic_creative_report

What’s real.
What’s next.
INTRODUCTION
In an increasingly connected world, digital is gaining a greater share of total
media ad spending, topped only by television. Last year, US online advertising
spend soared to $42 billion. i As the digital industry grows, so does the need
for innovation and technological advancement. For the past few years,
programmatic media buying was the answer.
According to the Interactive Advertising Bureau (IAB), 85% of advertisers and
72% of publishers participate in programmatic, a number that is expected to
grow in the next two years. ii Those participating in programmatic can leverage
sophisticated targeting tactics and real-time media optimization to improve
the performance of their campaigns. But now that such high efficiency is
becoming the norm in media, the creative portion of the process is having
trouble keeping up. Advertisers cannot produce the array of creative assets
required to take full advantage of digital within the timeframe necessary to
optimize campaigns in real time and are therefore losing out on the benefit
that programmatic media has created.
Additionally, another opportunity of programmatic digital advertising is
that advertisers can rapidly test and iterate campaigns, allowing them to
optimize their placement and targeting tactics. Advertisers need to take a
similar approach to testing the ads themselves, and they should assess best
performing creative against those placements and audiences. The most
successful campaigns find the optimal message, design, and mix of ad units.
“Programmatic advertising has turned media buying on its head, and created
an ecosystem in which online advertising is both more efficient and more
effective,” says Jeff Hirsch, CMO of CPXi. “The next challenge for brands is to
be able to iterate high-quality creative on-the-fly that can keep up with the fast
paced world of real-time bidding.”
This special report will examine the scope of the problem facing advertisers,
as well as the potential benefits that the digital advertising ecosystem can
reap when employing an automated approach to the creative process, which
we term Programmatic Creative. We will explore how Programmatic Creative
enables advertisers to strengthen their position in the market with regards to
the new four Cs: cost, competition, coverage, and capability.
To conduct the research, CPXi looked to AppNexus. The AppNexus
technology platform powers the world’s most innovative trading solutions and
marketplaces for internet advertising. AppNexus’ industry leadership position
afforded CPXi the most accurate picture of the internet advertising landscape
as it exists today. Their data equipped CPXi with deep insight into how
advertisers can better position themselves within the existing environment.
© 2014 CPXi
1