Closing the programmatic gap The changing digital advertising ecosystem in Germany Closing the programmatic gap | The changing digital advertising ecosystem in Germany Closing the programmatic gap | The changing digital advertising ecosystem in Germany

Executive Summary 3 Programmatic in Germany on the rise? 4 Consolidation everywhere? Executive How to navigate the heterogeneous ecosystem 7 The hunt for data, analytics and real-time technology 10 Summary Play to win – Leverage audiences and scale (together?) 12 Players have to act rapidly to win in a fast-changing Glossary 14 environment The programmatic market in Germany analytics capabilities and real-time enabling End notes 15 is expected to kick off and to grow to technology stacks. Those capabilities are EUR 2.8 bn by 2019, offering a significant set to be acquired externally. Cooperation market opportunity. New players enter across Media Houses and other players in a dynamic market dominated up to now the ecosystem could be a lever against the by hot shots like Google and Facebook. In two advertising heavyweights, but the win- order to succeed, traditional Media Houses dow of opportunity is closing fast. Telcos and Telcos have to seize the current and Media Houses have to act quickly to opportunity to capitalize on the tremen- capture their value share in programmatic. dous data assets via a combination of

02 03 Closing the programmatic gap | The changing digital advertising ecosystem in Germany Closing the programmatic gap | The changing digital advertising ecosystem in Germany

Programmatic in Germany on the rise?

Programmatic advertising is the current hype in advertising, and a shift towards trading inventory programmatically has a tremendous impact on the advertising market.

Looking abroad (but here in Germany too), The German market is Fig. 1 – Programmatic maturity across markets a strong tandem has crystalized. Digital advertising is increasingly dominated by behind the US/UK markets Uncertainty Development Maturity walled-garden players like Google and by two to three years. Regions Facebook, and these players are writing a unique success story (for example, Looking over to the US the market is Facebook’s advertising revenue grew significantly ahead in the development of APAC & LATAM Germany, France & Rest of Europe UK, USA from USD 11.5 bn to USD 17 bn in 2015, the mobile advertising landscape. Mobile Typical duration driven mainly by advertising via mobile digital advertising spending overtook online 1–2 years 2–3 years 2–3 years devices). The reasons for their success are spending in 2015, reaching USD 32 bn rather simple. Firstly, both players have a (online USD 28 bn) according to eMarketeri. Activity vast set of customer data. Due to log-ins, Programmatic already dominates display The first phase of development in As the market matures programmatic In mature markets the mutual benefit of the information they have about their advertising buying and with regard programmatics is characterised by a expands to more channels (esp. mobile programmatics is firmly established. audiences and individual users is a real to mobile, the programmatic share is disorderly market with very low CPMs. and video). A greater variety of measure- Offerings across all channels are deve- Multinationals enter as one of the first ment tools becomes available and loped and programmatic is leading in advantage. Secondly, they have developed already at almost 70 %ii. The top three players and companies with quantitative volumes of premium inventory traded non-customized content. Players can of corresponding analytics capabilities walled gardens (Facebook, Google and offerings develop fast. Publishers hesita- programmatically grow significantly. execute campaigns across platforms to turn this data into real insights and Twitter) have made up over 43 % of digital te primarily as they fear cannibalization Programmatic Direct may also act as and also carry out brand ad- thirdly they have all this backed by a strong advertising spending in the USiii. of existing products. Private exchanges a temporary arrangement. vertising. technology base. are just starting to develop and thus have low liquidity.

Facebook and Google Source: Deloitte analysis capture half of the digital advertising market

So the question is: will Facebook and Google be the only winners or can traditional Media Houses (and others) with their various online and mobile activities compete successfully in the German market?

04 05 Closing the programmatic gap | The changing digital advertising ecosystem in Germany Closing the programmatic gap | The changing digital advertising ecosystem in Germany

Abb. 4 – 2,5(10) -spaltig, Breite 154,417 mm Abb. 4 – 2,5(10) -spaltig, Breite 154,417 mm • La Place Media is a JV of five of France’s biggest media players • LaAudience Place Media Square is isa JVa cooperationof five of France’s between biggest eleven media French players media houses (incl. Les Echos, M6 Group, Group Le Monde) • Audience Square is a cooperation between eleven French media Fig. 2 – Programmatic share of display advertising across selectedhouses markets (incl. Les Echos, M6 Group, Group Le Monde) The situation is quite similar in the UK. Fig. 2 – Programmatic share of display advertising across selected markets Digital mobile advertising spending is expected to overtake online in 2016iv. US (in %) UK (in %) DE (in %) Consolidation US (in %) UK (in %) DE (in %) Compared to those impressive numbers, 70 both mobile and programmatic are still 64 70 behind in Germany (mobile accounting 64 everywhere? for 31 % of digital advertising spending in 2015) but potentially catching up in 2017v. 49 49 Total programmatic share is at ~23 % but 45 49 49 How to navigate in the heterogeneous we expect the programmatic share also to 45 ecosystem catch up in the next three to four years.

23 Consolidation everywhere? The programmatic market However, we see the German market at 23 is highly dynamic and many players (traditional Media an inflection point now with significant Houses and new entrants) see their chance by eng- growth potential projected for the coming aging in programmatic and securing their portion of years. The German programmatic market Abb.2015 4 – 2,5(10)2019 -spaltig,2015 Breite2019 154,4172015 mm 2019 the above-described opportunity. However, as the is expected to grow by 39 % p.a. by 2019, Abb.2015 4 – 2,5(10)2019 -spaltig,2015 Breite2019 154,4172015 mm 2019 market matures, players will have to reap economies of to EUR 2.8 bn and thus catching up with • La Place Media is a JV of five of France’s biggest media players Abb. 4 – 2,5(10) -spaltig, Breite 154,417 mm scale to stay profitable and a consolidation process will the US and UK markets, creating significant Source: Deloitte analysis • Audience Square is a cooperation between eleven French media houses (incl. Les Echos, M6 Group, Group Le Monde) set in. Possessing unique data assets such as log-ins is opportunities for all players the share of Source:Fig. 3 – Deloitte Programmatic analysis advertising market DE across selected regions Fig. 2 – Programmatic share of display advertising across selected markets decisive in such an environment as it enables players mobile could increase significantly, reading Fig. 3 – Programmatic advertising market across selected regions to occupy niche markets in the ecosystem. The mere ~37-59 %vi. US (in B€)UK (in B€) DE (in B€) accumulation of inventory on its own is not as critical for building complete and universal data sets around Programmatic in Germany is expected to USUS (in (in%) B€29,4)UUK (in %) K (in B€)DE (in %) DE (in B€) CAGR customers and audiences. kick off since Media Houses have overcome +33% 29,4 47% CAGR their reluctance: 9,5 +33% 47% 70 Existing collaborations 9,5 64 3,3 Abb. 4 – 2,5(10) -spaltig, Breite 154,417 mm 69%ExistingEmerging collaborations collaborations Fig. 4 – Programmatic value chain •• Media Houses understand that 3,3 2,8 2,8 EmergingNo identified collaborations collaborations • La Place Media is a JV of five of France’s biggest media players 69% CAGR 43% programmatically traded inventory 49 +34% 49 2,8 2,8 • Audience Square is a cooperation between eleven French media No identified collaborations CAGR 53% CAGR 41% houses (incl. Les Echos, M6 Group, Group Le Monde) 45 43% +39% must not necessarily be cheaper than +34% 63% 53% CAGR 41% inventory sold directly 31% +39% 63% Fig. 2 – ProgrammaticMaturity share of displayMedia advertising Agency across selected markets Marketer Media house 1,0 +/– 22% 31% 57% 0,8 •• (Supply-) technology has become mature, 1,0 59% +/– 22% 77% 37% allowing not only for auction-based deals 57%23 88%0,8 Print Print 77% 23% 12% 59% Print (as in early days) but also for private deals 88% 37% US (in %) UK (in %) DE (in %) 2015 2019 2015 23% 2019 2015 12% 2019A 2019B marketer publisher as well as other forms of transaction 2015 2019 2015 2019 2015 2019A 2019B 70 •• The industry has developed a commonly- Radio Radio 2015Online2019 2015 2019 2015 2019 Radio 64 used set of standards (OpenRTB marketer station standards from IAB), making it easier to OnlineMobile integrate with the ecosystem Source:Mobile Deloitte analysis 49 49 TV Advertiser Agencies TV station 1 Source: Deloitte analysis 45 Source: Deloitte analysis 2 Out of OoH home 23 inventory

Digital Digital DSP Exchange SSP 3 inventory Existing collaborations 2015 2019 2015 2019 2015 2019 Emerging collaborations 4 No identified collaborations Source: Deloitte analysis 5

Source: Deloitte analysis 06 07

Existing collaborations Emerging collaborations No identified collaborations Closing the programmatic gap | The changing digital advertising ecosystem in Germany Closing the programmatic gap | The changing digital advertising ecosystem in Germany

The ecosystem is 3 Agencies move downstream into Norwegian’s Telenor acquired Tapad, a characterized by five AdTech models Verizon absorbs cross-device re-targeting provider, to Ströer’s shopping former Internet “take a position within the rapidly growing spree key developments. Agencies on the other side of the table market for advertising technology, and move down the value chain by building icons secure important competence within digital 1 Media Houses consolidate inventory their own DSPs (trading desks). Recently, marketing and analytics”. Ströer acquired a number of – size matters! they also moved towards data by acquiring players with considerable With the acquisitions of AOL and or setting up DMPs. Some examples Cable operator Comcast recently inventory assets on its way to Yahoo, Verizon followed an During the consolidation phase over the (to name but a few): GroupM, who announced it would acquire StickyAds. achieving 50% of its revenues in aggressive expansionary last three to four years we saw several launched Xaxis as a trading desk, acquired tv, a French video SSP, to integrate it into the digital sector. In November approach to boost its digital moves of Media Houses to acquire new exchangelab Meta-DSP and launched Comcast’s subsidiary Freewheel. 2015 the company purchased advertising business. Both targets inventory. Axel Springer for example Turbine DMP. Omnicom launched Accuen t-online.de and Interactive Media failed to deliver on their promise significantly increased its digital reach (DSP) and annalect (DMP). Vivaki acquired The most recognized big bangs however from Deutsche Telekom for about as Internet hopefuls in the via acquisitions. Key rationale was to RUN (DSP/DMP). have been Verizon’s acquisition of AOL EUR 300 mn and took over online post-2000s, instead being manage the transition from traditional and Yahoo in order to enter the digital marketer OMS in January 2016xiii. overtaken by Google and media towards digital. Ströer followed 4 Programmatic players consolidate advertising scene. Verizon’s vision is to At that time OMS had more than Facebook. When Verizon a similar path and by acquiring OMS or add cross-channel capabilities leverage the big data assets of mobile 28 million unique users, thus announced the takeover of AOL and Interactive Media brought together users (including name, address and often bringing together the largest for USD 4.4 bn in May 2015, the largest German online reach. The Players of the first programmatic hour, enough credit card data) via AOL’s and German online reachxiv. analysts commented that the T-online acquisition was beneficial for namely DSPs and SSPs, are starting to Yahoo’s inventory and based on their main driver behind the deal was Ströer especially with regard to acquiring struggle and consolidate horizontally. Some technology stack. “not so much the content as additional Inventory. Mediahouses have US players are already reconsidering their having a platform for Thus data becomes the new ecosystem thus significantly enhanced their inventory sales approach in Europe and streamlining What are currently the winning programmatic [advertising].”xi currency and therefore a variety of players base. They will have to navigate further operations in order to increase profitability. business models? Verizon’s recent acquisition of have evolved with the aim of monetizing challenges in programmatic, however, Yahoo (July 2016, USD 4.8 bn) data by making it programmatically as the winning business models in the Additionally, some DSPs saw acquisitions The entire value chain was historically occurred in much the same accessible (e.g., DMPs, data market places). ecosystem will be based on identifying and as a way to build the relevant capabilities inventory-focused. However, since media spiritxii: not only did the company communicating with specific, advertiser- and position for cross-device and multi- buyers are shifting to buying audiences and thus obtain considerable tech and requested audience segments. channel. Sizmek, for example, acquired users rather than bulk inventories, data is reach assets but, more StrikeAd to acquire mobile capabilities. becoming more important. Recent efforts importantly, valuable customer Media Houses expand upstream to streamline the programmatic workflow 2 data and new audiences. into AdTech businesses Consolidation, especially on DSP side, will therefore shift to targeting precision. Especially log-in and email data further accelerate and assume that there (particularly available in the case The emergence of several players along is room for only three to five large global Due to this shift, players who only enable of AOL) allow for effective the programmatic value chain led to players in the field. Only real integrated the programmatic process technologically targeting in digital/ programmatic smaller profits on the media house side. In AdTech stacks are expected to survive. (e.g., DSPs/SSPs) will have to fight for their advertising. traditional media, Media Houses received value share. Data will be the key to creating approximately 70 cents in the euro spent 5 New entrants enter the value and players who will be able to on advertising. In programmatic days, their programmatic field sellers directly, while reducing the role of monetize data (either by providing access profit decreased to 40 centsvii. intermediaries. Adobe has also announced to a unique data asset or by being the As already mentioned, programmatic it will integrate advertising technology into nodal marketplace for data) will be the new Media Houses want to recapture some advertising has become a playground for their Adobe Marketing Cloud. Other tech- heavyweights in the ecosystem. of the lost value and move up the value various companies. Many players who were nology companies have already climbed chain. RTL for example acquired video not originally active in the media area have the advertising Olympus. IBM IX is already And although almost everyone in the SSP SpotXchange. Sky recently acquired entered the market. considered the largest online agencyviii. market agrees that data might add a a significant stake in DataXu, one of the benefit to the targeting process, so far no large international DSPs to prepare for SAP, for example, has expanded its enter- Telecommunications players have also one is really able to measure the added programmatic in TV. ProSiebenSat.1 aims prise software solutions towards a full-scale entered the stage. In Germany, Deutsche value. However, there are some data points to develop an integrated AdTech stack and integrated end-to-end advertising stack Telekom partnered with several Media that underline the value that data adds to invest in players in the ecosystem via their under the SAP XM (eXchange Media) brand. Houses to build emetriq, forming the strate- the bidding process. We assume that CPM subsidiary Virtual Minds (together with The idea is to enable a new digital advertis- gic cooperation to build a shared marketing for data-enriched impressions increased by United Internet). ing buying model that connects buyers and data pool. a factor 1.5 to non-enriched impressions.

08 09 Closing the programmatic gap | The changing digital advertising ecosystem in Germany Closing the programmatic gap | The changing digital advertising ecosystem in Germany

The hunt for data, analytics and real-time technology

The consolidation patterns described follow a simple logic. Players want to combine capabilities in order to create a picture of their specific customer or audience that is as complete as possible.

The key capabilities that players are players have positioned themselves for capabilities. Increasing segmentation technology partners, using more Media Houses in particular are strategically currently hunting for are data, analytics, the data game. Stand-alone DMPs, for capabilities (backed by the corresponding comprehensive, people-based targeting well-positioned to exploit the advantages and real-time capabilities backed by broad example, have entered the scene and are data sets) will permit targeting the methods, and increasingly demanding of their existing portfolios. Telcos, too, inventory reach. allowing advertisers to use their own first- advertiser’s focal audiences. As the next services across all devices and channels. can be expected to profit, thanks to their party data. They also allow advertisers to evolutionary step, customer insights Fully integrated players who combine considerable mobile inventory. Data as a prerequisite for the ingest and use third-party data purchased analytics will find their way into the the success factors across the full complete view on the customer from external data providers and thus programmatic process since Media Houses programmatic spectrum (multi-channel and Data, analytic capabilities, real-time more and more are developing towards are beginning to monetize their audiences. cross-device, performance measurement, integration and inventory are thus the Data is the key to targeting success and data marketplaces. Agencies also have attribution services) will have a competitive four key elements for success in the access to / control over valuable customer acquired or established their own DMPs Technical integration and advantage. Niche players will leave the programmatic ecosystem. Bundling these data is a game-changing asset. More and even DSPs and SSPs are also trying to real-time market, either by being acquired or by capabilities will allow players to step than 50 % of the respondents to an IAB differentiate by setting-up DMP offerings. being squeezed out. beyond generating data to create customer survey answered that they had already However, only stand-alone DMPs have a Needless to say: programmatic advertising insights. realized a “tangible competitive advantage clear (and inventory-agnostic) proposition. is a real-time game and the best data and Inventory as a lever for through [their] use of data in marketing and analytics capabilities are useless if not increased reach advertising”. Almost the same proportion Analytics capabilities (“Data +”) made usable/accessible for programmatic of respondents mentioned that they were to generate customer insights with real-time APIs. An integrated tech In addition to the three innovative satisfied with the value realized by first- will be the real value driver stack reduces the technological complexity capabilities described above, Media Houses party data while third-party data is lagging for all potential partners. expand their inventory base since scale behindx. Data is the basis for targeting success. And with regard to technology platforms, is becoming more and more important. However, pure data injection also has to the days of niche players are numbered. Other business models in the ecosystem Different business models have emerged prove the value it contributes. Central Advertisers are increasingly striving require a broad advertising reach across a around a data proposition and different to success are the underlying analytics to reduce the number of advertising variety of channels.

10 11 Fig. 5 – Publisher cooperations

Closing the programmatic gap | The changing digital advertising ecosystem in Germany Closing the programmatic gap | The changingExisting digital collaboration advertisings ecosystem in Germany Emerging collaborations No identified collaborations

Fig. 5 – Publisher cooperations • La Place Media is a JV of some of France’s biggest media players • Audience Square is a cooperation between eleven French media houses (incl. Les Echos, M6 Group, Group Le Monde) • AdAudience is a JV between G+J EMS, Forward AdGroup, IP Deutschland, iq digital media, Media Impact,Existing OMS collaborationand SevenOne s Abb. 4 – 2,5(10) -spaltig, Breite 154,417 mm Media. The partnershipEmerging was expanded collaboration and s the Intelligent Data Alliance was founded • La Place Media is a JV of five of France’s biggest mediawith xplosion player interactive.s No identified Deutsche collaboration Telekom’s s • Audience Square is a cooperation between elevennewly French founded media subsidiary emetriq aims to houses (incl. Les Echos, M6 Group, Group Le Monde)market Germany’s largest pool of data • La Place Media is a JV of some of France’s • Danish Publishers Network is a collaboration biggest media players Fig. 2 – Programmatic share of display advertising across selected markets platform between premium publishers • Audience Square is a cooperation between • Pangaea is a digital advertisingeleven French alliance media houses (incl. Les Echos, of the Guardian, FinancialM6 Group,Times, CNN Group Le Monde) International, Reuters and others US (in %) UK (in %) DE (in %) • 1XL is a collaboration• platformAdAudience between is a JV 30 between G+J EMS, local media groups Forward AdGroup, IP Deutschland, iq digital media, Media Impact, OMS and SevenOne 70 • Cpex is a collaborationMedia. platform The between partnership was expanded and six premium publishers Play to win – 64 the Intelligent Data Alliance was founded • The 10 largest Finnishwith publishers xplosion recently interactive. Deutsche Telekom’s founded a cooperationnewly to market founded their subsidiary emetriq aims to inventory together market Germany’s largest pool of data 49 49 • Danish Publishers Network is a collaboration 45 • Aunia, a collaboration platform was Leverage audiences formed with a focus onplatform online video between premium publishers Source: Deloitte analysis advertising • Pangaea is a digital advertising alliance • The Premium Publisher’sof theNetwork Guardian, (PPN) Financial Times, CNN Fig. 5 – Publisher cooperations was launched in 2014 International,and features the Reuters and others inventory of 24MEDIA, DPG Digital Media, 23 • 1XL is a collaboration platform between 30 Olive Media and Adweb local media groups and scale (together?) • Project Agora is a publisher coalition led by ad-tech company• TailWindCpex is bringing a collaboration platform between together Greek and Romaniansix premium publishers publishers In order to win against digital heavyweights like 2015 2019 2015 2019 2015 2019 • The 10 largest Finnish publishers recently Existing collaborationfounded as cooperation to market their Google and Facebook, the German players will have to Emerging collaborationinventory togethes r reconsider how to compete. Source: Deloitte analysis No identified• Aunia,collaboration a collaborations platform was formed with a focus on online video Source: Deloitte analysis advertising • La Place Media is a JV of some of France’s biggest •me Thedia Premiumplayers Publisher’s Network (PPN) • Audience waSquares launched is a cooperation in 2014 and between features the eleven Frenchinventory media of houses 24MEDIA, (incl. DPG Les Digital Echos, Media, M6 Group,Oliv Groupe Med Leia Monde) and Adweb • Project Agora is a publisher coalition led • AdAudience is a JV between G+J EMS, The current programmatic market situation customers. With the analytics capabilities important first mover advantages. Acquisi- such alliances have to create a combined that enable them to leverage their data by ad-tech company TailWind bringing Forward AdGroup,together IPGreek Deutschland, and Romanian iq digital publishers allows solvent players to gain a foothold, gained, Media Houses can leverage for tions of existing programmatic players are pool of audience data to benefit from asset and develop a broad technological media, Media Impact, OMS and SevenOne Existing collaborations Media. The partnership was expanded and thus a viable alternative for solvent players. typically through M&A. It is essential for example DMPs to uncover audience seg- differentEmerging partner collaborations audiences. Secondly, it footprint in the ecosystem. the Intelligent Data Alliance was founded all players to act rapidly, as the window of ments with significant market value. Also is essentialNo identified that the collaborations analytic capabilities to with xplosion interactive. Deutsche Telekom’s opportunity is closing fast. The intelligent players with a data-driven understanding 3 Cooperation as alternative to M&A - deduce audience segments and provide Thus in order to (re-)capture some value newly founded subsidiary emetriq aims to market Germany’s largest pool of data use of existing customer data to identify of their customers are set to benefit. They Telcos in a key position audience insights be built up. Furthermore, in programmatic and address the large • Danish Publishers Network is a collaboration relevant audiences for certain campaigns can make audiences - potentially enriched the cooperation should build the required market opportunity, Telcos and media platform between premium publishers will be a key task in order to survive in the with third-party data - accessible for adver- A prime example of the inorganic approach technology stack together, leverage a mutu- players should immediately start the M&A • Pangaea is a digital advertising alliance market. Media Houses must therefore tisers as a new sales opportunity. The care- described is Verizon. With the acquisition al data management platform to share and game and monitor the start-up scene to of the Guardian, Financial Times, CNN overcome their reluctance and engage in ful analysis of marketers buying inventory of Yahoo and AOL, Verizon is set to become access the data pool to make it accessible identify the technology nuggets that add International, Reuters and others the programmatic game. on an audience basis through exchanges an important player in programmatic for advertisers. Lastly, it is critical that play- the required capabilities. Both Telcos and • 1XL is a collaboration platform between 30 local media groups and sell-side platforms (SSPs) helps media advertising. However, the circumstances ers and platforms cooperate with external Media Houses are very well positioned to Houses uncover new opportunities with a surrounding deals like this – a solvent, data providers to enrich their own data and play key role in the market – and they have • Cpex is a collaboration platform between 1 Media Houses need to develop the six premium publishers 360° view on their customers programmatic strategy. dominant Telco and large Internet players deduce relevant segments. to start immediately, to take advantage of • The 10 largest Finnish publishers recently with substantial tech capabilities – are not the window of opportunity. founded a cooperation to market their Media Houses have to realize the value of 2 To build or to buy? M&A as entry given in Germany. Thinking beyond publisher cooperation, inventory together their customer data as their most valuable into programmatic Telcos could play a nodal role and could • Aunia, a collaboration platform was asset by implementing the necessary cus- Scale is nevertheless an important factor become key players as they are very well formed with a focus on online video advertising tomer analytics capabilities. Implementing Realizing the above-described capabilities and cooperation is an opportunity for Ger- Source: Deloittepositioned analysis to drive the programmatic inte- for instance data management platforms through an organic build-up of the nec- man players, data providers, and platforms gration game. They own a tremendous data • The Premium Publisher’s Network (PPN) was launched in 2014 and features the or big data capabilities is an important essary department is a long and arduous to create a nodal German heavyweight asset and have a transactional relationship inventory of 24MEDIA, DPG Digital Media, step in this direction. It enables them to task. Media Houses that plan on entering against the likes of Google and Facebook. with their customers. Telcos could seize Olive Media and Adweb A number of considerations are however • Project Agora is a publisher coalition led connect insights across all customer touch- programmatic will not have the time to the opportunity to enter the market by by ad-tech company TailWind bringing points and to create the 360° view of their complete this process if they are to realize essential for effective cooperation. Firstly, identifying and acquiring the tech nuggets together Greek and Romanian publishers

12 13 Closing the programmatic gap | The changing digital advertising ecosystem in Germany Closing the programmatic gap | The changing digital advertising ecosystem in Germany

Glossary End-Notes

Ad exchange Technology platform enabling automated trading of bid requests i eMarketer: “Digital Ad Spending to Surpass vi Deloitte calculations com/2015/05/12/verizon-to-buy-aol-for-44- TV Next Year”. URL: http://www.emarketer. billion.html (accessed 01 September 2016) CPM (cost per mille) Cost of 1000 impressions of a certain type com/Article/Digital-Ad-Spending-Surpass- vii IHS: “Tomorrow’s programmatic TV-Next-Year/1013671 (accessed 31 August landscape & how publishers can claim xii Cnet: “Verizon to buy Yahoo for $4.83 Demand-side Technology platform allowing brands and agencies to automatically bid for and purchase inventory 2016) control”. URL: http://www.improvedigital. billion, merge it with AOL”. URL: http://www. platform (DSP) com/main/wp-content/uploads/2014/06/ cnet.com/news/verizon-buying-yahoo- ii eMarketer: “More Than Two-Thirds DanielKnapp-IHS-Cannes.pdf (accessed 05 likely-merging-it-with-aol/ (accessed 01 First-party data Information and data sets owned or derived by the advertiser (e.g., CRM data) or by publishers of US Digital Display Ad Spending Is September 2016) September 2016) (e.g. audience data) Programmatic”. URL: http://www.emarketer. com/Article/More-Than-Two-Thirds- viii Business Insider: “IBM quietly built the xiii manager magazin: “Ströer kauft T-Online, Programmatic buying/ The automated trading of impressions of-US-Digital-Display-Ad-Spending- world’s largest digital agency — here’s Telekom wird Großaktionär“. URL: http:// trading/selling Programmatic/1013789 (accessed 31 how it got there”. URL: http://www. www.manager-magazin.de/unternehmen/ August 2016) businessinsider.de/ibm-quietly-built-the- it/stroeer-kauft-t-online-a-1047997.html Second-party data Data obtained from a partner who derived the data from its users (i.e. its first-party data). Includes, worlds-largest-digital-agency-heres-how-it- (accessed 01 September 2016) for example, data pooling iii Signal: “Signal’s Prediction for Digital got-there-2016-3?r=US&IR=T (accessed 31 Marketing in 2016: Limitations of Walled August 2016) xiv W&V: “Deal ist perfekt: Ströer übernimmt Supply-side Technology platform enabling publishers to manage the sale of their inventory programmatically Gardens Will Force Advertisers and OMS“. URL: http://www.wuv.de/digital/ platform (SSP) Publishers to Make Tough Choices”. URL: ix Signal: “Signal’s Prediction for Digital deal_ist_perfekt_stroeer_uebernimmt_oms http://www.signal.co/blog/prediction- Marketing in 2016: Advertisers Will Shift (accessed 01 September 2016) Third-party data Data obtained from external data providers advertisers-data-co-ops/ (accessed 31 Focus from Workflow Efficiency to Targeting August 2016) Precision”. URL: http://www.signal.co/blog/ prediction-targeted-marketing/ (accessed iv eMarketer: “Mobile Is Driving UK 31 August 2016) Ad Spend Growth”. URL: http://www. emarketer.com/Article/Mobile-Driving-UK- x IAB: “Data as Competitive Advantage”. Ad-Spend-Growth/1013685 (accessed 31 URL: http://www.iab.com/wp-content/ August 2016) uploads/2015/10/Winterberry-Group- White-Paper-Data-as-Competitive- v eMarketer: “Digital Ad Spending Overtakes Advantage-October-2015v2.pdf (accessed Newspapers in Germany”. URL: http://www. 31 August 2016) emarketer.com/Article/Digital-Ad-Spending- Overtakes-Newspapers-Germany/1013078 xi CNBC: “Verizon to buy AOL for $4.4B; (accessed 31 August 2016) AOL shares soar”. URL: http://www.cnbc.

14 15 Closing the programmatic gap | The changing digital advertising ecosystem in Germany

Your contacts

Christiane Wagner Director Tel: +49 89 29036 7477 [email protected]

Christoph Materzok Manager Tel: +49 211 8772 3793 [email protected]

Klaus Böhm Director Tel: +49 211 8772 3545 [email protected]

Alexander Mogg Partner Tel: +49 29036 7939 [email protected]

Editors Christiane Wager, Christoph Materzok, Klaus Böhm, Alexander Mogg, Johann-Maximilian Bohle

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