How Programmatic Disrupted Traditional Media Buying

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How Programmatic Disrupted Traditional

Media Buying:

PRESENTED BY: LUKAS HERMUS

From Radio To Programmatic Radio

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Digital Media Agency

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Agenda

Digital Radio – What & Why

Drivers Of Digital Audio

Valuable Audiences

Challenges

Growth of Digital Audio

What we’ll be talking about today

Future

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Audio campaigns

are the perfect tool

to reach young

people for any

awareness or

branding

campaign.”— Lukas Hermus

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Information

Mood Booster

Surprises

Escapism

Be Present

Why Do People Use Radio and Music?

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See

Think

Do

Care

Radio’s Position In The Funnel

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Online RadioMusic Streaming

PlatformsBranded Podcasts

Branded Playlists / Branded Sessions

Audio Hosting

Programmatic Radio & Audio

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Advantage• Reach engaged users

Disadvantage• Users can leave too

soon

Spot Length• Longer

Mid-roll

Advantage• Reach users directly

Disadvantage• Chance of users leaving

Spot Length• Short

Pre-roll

Ad ‘Locations’

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4

5

3

2

1Demographics

Geography

Device & Publisher

Genre

Additional segmentation

Targeting Options

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Programmatic Radio: Advantages

Targeting, Tracking & Measurement

Listen through rates, unique users, # of listens, ...

No Clutter

100% SOV and subconcious interaction

Reach on important segments

Young users consume more and more digital audio

Presence

Reach people at times that other media cannot

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+ + =

Audience Placement Creative Results

The Perfect Equation

Ad placement should drive ad creation & ad content

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That’s all great,

but start

convincing me.”— The audience

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-

200.000,00

400.000,00

600.000,00

800.000,00

1.000.000,00

1.200.000,00

1.400.000,00

1.600.000,00

1.800.000,00

2011 T1 2011 T2 2011 T3 2012 T1 2012 T2 2012 T3 2013 T1 2013 T2 2013 T3 2014 T1 2014 T2 2014 T3 2015 T1 2015 T2 2015 T3 2016 T1

16% of Belgian Population (+12) listens to the radio online every week – CIM / IPB

Growth of Digital Radio in Belgium

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36%34%

39%41%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2012 2013 2014 2015

Online Audio Use in Belgium

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Mobile Devices

Other

Mobile Drives Audio – Digital Radio

80%

20%

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Mobile Devices

Other

Mobile Drives Audio – Streaming

83%

17%

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0,00% 20,00% 40,00% 60,00% 80,00% 100,00% 120,00%

Mobile Time

Mobile Music Time

Largest percentage of time on mobile devices is dedicated to listening to digital audio: 35 minutes via apps

and 21 minutes via mobile websites. – Emarketer, Jan 2017

Music & Mobile Usage

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Improved Mobile Data / Connection

The democratisation of mobile internet leads to more

mobile data being made available for the users

More audio

The more mobile data becomes available, the more music can

be listened to on mobile devices on the go. Creating more

advertising opportunities as well as advertising space

More Data = More Music

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0

1

2

3

4

5

6

7

8

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Use of Streaming in BelgiumSpotify

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Source graph: IP Belgium

Use of Streaming in BelgiumDeezer Vs Radio

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16%

30%

24%

15%

8% 7%

0%

5%

10%

15%

20%

25%

30%

35%

-18 18-24 25-34 35-44 45-54 55+

Almost 50% of users can be found in the group of -18 to 24

Streaming Age Breakdown

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25% 24%

4% 4% 3%0%

5%

10%

15%

20%

25%

30%

Spotify Itunes Apple Music Google PlayMusic

Deezer

Platform Use Audio - Belgium

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01

02 03

2 - Brand Buyers

2x as likely to pay extra for brands3 - Media consumers

5x as likely to use TV and watch

movies on a daily basis

Value in Streaming Users: Streamers vs. Non-StreamersComscore & Spotify Study

1 - Brand Advocates

61% more likely to advocate for brands

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Digital Music Listeners

41% of Belgians listen to music digitally41%

75%

34%

Adoption of Adblocking

34% for 16-24 year olds

Accept ads for free audio access

75% of users agree that ads are fair in return for free audio. 20% does not agree, 5% is not sure

Adblocking & Audio

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Of daily music listening

“Our Music Was Better Back Then”

Baby-Boomers Millenials

1.77 Hours 3.1 Hours

Of daily music listening

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Traveler, 45 years old

Gamer, 21 years old

Tech Fan, 30 years old

Young Professional, 25 years old

Music for every occasions

Pre-roll, Online Radio1Sponsored Playlist, Streaming Platform

Branded Podcast

Mid Roll Ad, Online Radio Station /

Streaming Platform

2

3

4

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RESULT ANALYSIS

Listen Through Rates

and CTRs

AD INTERACTION

Direct interaction with

ads

DRIVE

Social elements drive

content & growth

ATTRIBUTION

Measuring the direct

impact of audio spots

Challenges For Programmatic Audio

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More Targeting Options

More Socially Driven Content

Voice Activated Interactions

Cross-platormintegration

Future for Programmatic AudioWrite here your great subtitle

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Thank You !For your undivided attention

Questions?

Lukas Hermus

Head of Programmatic

Lukas.hermus@blue2purple.com