For: B2C Marketing Professionals The Forrester Wave™: Demand-Side Platforms, Q2 2015 by Richard Joyce, June 3, 2015 Key Takeaways DataXu, The Trade Desk, AOL, Turn, And AppNexus Lead The Pack Forrester’s research uncovered a market in which DataXu, The Trade Desk, AOL, Turn, and AppNexus lead the pack. Rocket Fuel and MediaMath offer competitive options. Google and AudienceScience lag behind. The DSP Market Is Growing As Programmatic Media Buying Goes Mainstream Programmatic has gone from buzzword to the standard for digital media buying. Buyers have long-term plans for using data and programmatic technology to fuel their digital media buys in the age of the customer. Ignoring this new standard will put marketers at a disadvantage as all media buying becomes more complex, multichannel, and flexible. Breadth Of Offerings And Service Strategy Are Key Differentiators In The DSP Market Today, marketers use a breadth of tools for digital media buying. An open and flexible platform is table stakes but marketers need to reduce the complexity of the digital media buying landscape. Vendors that provide marketers with robust buying, data, and analytics offerings, with strong service, will excel in a still-cluttered category. Access The Forrester Wave Model For Deeper Insight Use the detailed Forrester Wave model to view every piece of data used to score participating vendors and create a custom vendor shortlist. Access the report online and download the Excel tool using the link in the right-hand column under “Tools & Templates.” Alter Forrester’s weightings to tailor the Forrester Wave model to your specifications. Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA Tel: +1 617.613.6000 | Fax: +1 617.613.5000 | www.forrester.com
For  B2C Marketing Professionals  The Forrester Wave     Demand-Side Platforms, Q2 2015 by Richard Joyce, June 3, 2015  Ke...
For B2C Marketing Professionals June 3, 2015 The Forrester Wave™: Demand-Side Platforms, Q2 2015 The Nine Providers That Matter Most And How They Stack Up by Richard Joyce with Luca S. Paderni and Wei-ming Egelman Why Read This Report In Forrester’s 53-criteria evaluation of demand-side platform (DSP) vendors, we identified the nine most significant software providers — AOL, AppNexus, AudienceScience, DataXu, Google, MediaMath, Rocket Fuel, The Trade Desk, and Turn — in the category and researched, analyzed, and scored them. This report details our findings about how well each vendor fulfills our criteria and where they stand in relation to each other to help B2C marketers select the right partners for their demand-side platforms. Table Of Contents Notes & Resources 2 Marketers Prepare For A Fully Programmatic Advertising World Forrester conducted product evaluations in February 2015 and interviewed nine vendor and user companies, including: AOL, AppNexus, AudienceScience, DataXu, Google, MediaMath, Rocket Fuel, The Trade Desk, and Turn. The Digital Advertising Ecosystem Is Still Plagued By Opacity 4 Demand-Side Platform Evaluation Overview Our Evaluation Considered Current Offering, Strategy, And Market Presence Related Research Documents We Found Five Leaders In The Demand-Side Platform Space Ad Fraud: Tackle Digital Ads’ Dirty Little Secret And Make Money In The Process 7 Vendor Profiles Leaders Strong Performers 11 Supplemental Material The Future Of Digital Media Buying Media Buying’s Evolution Challenges Marketers North American Online Display Advertising Forecast, 2014 To 2019 © 2015, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please email clientsupport@forrester.com. For additional information, go to www.forrester.com.
For B2C Marketing Professionals  June 3, 2015  The Forrester Wave     Demand-Side Platforms, Q2 2015 The Nine Providers Th...
For B2C Marketing Professionals 2 The Forrester Wave™: Demand-Side Platforms, Q2 2015 Marketers Prepare For A Fully Programmatic Advertising World Over the last two years, marketers have taken “programmatic” from buzzword to the mainstream way of buying display media. By 2019, Forrester expects exchange-based trading to make up 30.2% of total display impressions in North America, and this does not include growth that will come from the expansion of private marketplaces and programmatic direct.1 Today, programmatic ad buying is setting the expectation that all types of advertising inventory will become addressable and will deliver new levels of accuracy and effectiveness. Today, marketers look to demand-side platforms (DSPs) to power buying with all programmatic channels on all sorts of digital devices, along with robust tools for insight and optimization. DSPs offer digital ad buyers the promise of: ■ Centralized management across multiple programmatic media sources. No longer just a means for accessing desktop display, DSPs support all programmatic media across all devices. And while the bulk of programmatic inventory is still purchased via the open exchange, 69% of programmatic ad buyers also use DSPs to foster private exchanges.2 As programmatic becomes the default way to buy advertising in the future, marketers will become dependent on the DSPs’ ability to centralize management of all media buying. ■ Flexible machine learning and tools for improving optimization automation. All DSP vendors offer some form of optimization automation. However, for marketers from all industry verticals embracing programmatic buying and pursuing different marketing objectives, DSPs have adapted their offerings to meet the needs of power users and newcomers alike. Marketers and agencies are also keen for the possibility to customize the key features and elements of their DSPs: This is an important feature for 68% of programmatic ad buyers.3 ■ Powerful audience management and predictive analytics. Marketers are no longer satisfied with just the ability to efficiently and effectively purchase media. Seventy-six percent of marketers who use DSPs for ad buying also take advantage of the analytics and reporting features available on their platforms.4 These marketers are using audience management tools and predictive analytics to fuel planning, audience extension, and cross-device targeting, going beyond the immediate business benefits of programmatic ad buying. The Digital Advertising Ecosystem Is Still Plagued By Opacity Ad technology has made great strides in providing marketers with tools that support greater transparency into digital media buying, but the digital advertising ecosystem still supports arbitrage, daisy-chaining, and obfuscated ad impressions. Advertisers are getting smarter at detecting opaque business practices and impressions by using DSPs, brand safety ad tech, and more sophisticated metrics. But marketers have also started to realize that the multilayered advertising ecosystem is driving complexity and higher transaction costs.5 While the market still dictates that DSPs support marketers and intermediaries at the same time, marketers are looking for renewed trust in agencies, more “complete” technologies with deeper capabilities, and publishers that share the same agenda for eliminating suspect ad inventory from the ecosystem. Change is in the cards as, from our research, we expect that: © 2015, Forrester Research, Inc. Reproduction Prohibited June 3, 2015
For B2C Marketing Professionals  2  The Forrester Wave     Demand-Side Platforms, Q2 2015  Marketers Prepare For A Fully P...
For B2C Marketing Professionals 3 The Forrester Wave™: Demand-Side Platforms, Q2 2015 ■ Agencies and trading desks have to realign with marketers’ interests. While agencies and their trading desk counterparts provide marketers with the expertise and resources to run effective programmatic initiatives, the current business models create a conflict of interest rooted in arbitrage and closed-door agreements on rebates. These practices have put into question whether agencies have marketers’ best interests in mind.6 Recently, Publicis restructured VivaKi by reassigning its programmatic specialists out to individual agencies.7 While VivaKi wants its “technology jockeys” closer to its clients, it is also responding to the growing demand for transparency into agency fees, pricing, and data privacy issues. ■ Demand-side platforms must find ways to minimize marketers’ costs of buying media. DSPs rely on a cornucopia of external tech to help marketers ensure brand safety, understand audiences, and plan strategies that can react to today’s empowered customer. While the vendors in the space support these integrations, brand safety, for example, shouldn’t be an incremental cost of doing business. DSPs are responding to this demand through acquisition and internal development to provide native tools for media mix modeling, data management, brand safety, tag management, ad serving, and more. Overall, DSPs are enriching their offerings as marketer demand for “completeness” and simplification increase. ■ Publishers and exchanges must be proactive in eliminating fraud from the ecosystem. With unethical publishers designing web pages to support stacked ads and others tainting their own sources of traffic by daisy-chaining to non-transparent ends, it’s no wonder marketers are still concerned with the transparency of digital media buying. At the same time however, responsible publishers have seen increased investment from savvy marketers. These publishers are proactively addressing issues of transparency by stopping the deployment of stacked ads and not compromising their own traffic quality to fulfill campaigns’ goals.8 Exchanges are playing their part as well, eliminating known sources of fraud and raising the standards they have for publisher partners. By putting quality over scale, publishers and exchanges can help marketers address opacity in the ecosystem. ■ Marketers must lead the charge when it comes to technology and data strategies. The burden of accountability does not rest solely on the shoulders of agencies, trading desks, DSPs, and publishers. Leading programmatic ad buyers have taken an active role in vetting technology and leading data and media strategy. One of the most highly publicized marketers in brandled programmatic initiatives is Kraft Food Group.9 Kraft Food Group puts data at the center of its strategies for audience management, content development, and programmatic buying.10 Marketers who drive data and technology decisions can expect to gain levels of transparency and addressability that traditional ways of advertising could never offer. © 2015, Forrester Research, Inc. Reproduction Prohibited June 3, 2015
For B2C Marketing Professionals  3  The Forrester Wave     Demand-Side Platforms, Q2 2015       Agencies and trading desks...
For B2C Marketing Professionals 4 The Forrester Wave™: Demand-Side Platforms, Q2 2015 Demand-Side Platform Evaluation Overview To assess the state of the demand-side platform market and see how the vendors stack up against each other, Forrester evaluated the strengths and weaknesses of top DSP vendors. Out of the 22 vendors screened, Forrester included nine vendors in the assessment: AOL, AppNexus, AudienceScience, DataXu, Google, MediaMath, Rocket Fuel, The Trade Desk, and Turn. Each of these vendors was selected for its ability to (see Figure 1): ■ Support major programmatic channels and devices. DSPs have evolved to support multiple digital channels and devices. The vendors considered for this assessment support desktop display, desktop video, mobile web display, mobile web video, in-app display, in-app video, and private marketplaces across desktop display, desktop video, mobile display, and mobile video. ■ Support queries per second (QPS) greater than 999,999. Vendors selected for this assessment have the technical infrastructure to support the analysis of one million or more bid requests per second. QPS is important to marketers as a measurement because as more inventory becomes programmatic, lower QPS could mean that marketers miss out on valuable inventory opportunities. Figure 1 Evaluated Vendors: Vendor Information And Selection Criteria Vendor Product evaluated AOL ONE by AOL AppNexus AppNexus AudienceScience AudienceScience Helios DataXu The DataXu Platform Google DoubleClick Bid Manager MediaMath TerminalOne Marketing Operating System Rocket Fuel Rocket Fuel DSP The Trade Desk The Trade Desk Platform Turn Turn Campaign Suite Vendor selection criteria • The vendor must support at least 10 programmatic channels and devices. • The vendor must be able to support a maximum QPS (queries per second) greater than 999,999. • The vendor must have more than 300 active clients as of Q3 2014. Source: Forrester Research, Inc. Unauthorized reproduction, citation, or distribution prohibited. © 2015, Forrester Research, Inc. Reproduction Prohibited June 3, 2015
For B2C Marketing Professionals  4  The Forrester Wave     Demand-Side Platforms, Q2 2015  Demand-Side Platform Evaluation...
For B2C Marketing Professionals 5 The Forrester Wave™: Demand-Side Platforms, Q2 2015 Our Evaluation Considered Current Offering, Strategy, And Market Presence After examining past research, user need assessments, and vendor and expert interviews, we developed a comprehensive set of 53 evaluation criteria against which we evaluated vendors. We grouped the evaluation criteria into three high-level buckets: ■ Current offering. In this section, we identified three key sub-criteria of DSP current offerings: 1) buying offering; 2) data offering; and 3) analytics offering. We assessed how the vendors performed across the entire range of demand-side platform tasks. We studied how many DSP features each platform can provide and how well it performs those functions. ■ Strategy. Here we evaluated each vendor’s product development road map and how well that road map positions each vendor for market leadership. We also assessed each vendor’s client satisfaction and how focused each vendor was on delivering best-in-class DSP technology. ■ Market presence. Lastly, we gauged vendors’ presence in the market based on their global presence, customer base, and client distribution. We Found Five Leaders In The Demand-Side Platform Space The evaluation uncovered a market in which (see Figure 2): ■ Vendors DataXu, The Trade Desk, AOL, Turn, and AppNexus lead the pack. Two distinct factions of DSPs have risen to the top of the vendors that we evaluated: 1) platforms with a robust breadth of capabilities and 2) fully flexible technology-agnostic platforms. While DataXu boasts the strongest current offering, it shares a vision with AOL of providing marketers with tools needed for improving general marketing initiatives that go beyond just digital. Within the second group, The Trade Desk, Turn, and AppNexus have focused heavily on providing marketers with maximum flexibility in executing programmatic initiatives. Turn and AppNexus supplement any features that are natively unavailable on their platforms with integrations of external technology. However, The Trade Desk’s service strategy and client feedback make it a better option for buyers. ■ Vendors Rocket Fuel, MediaMath, Google, and AudienceScience offer competitive options. Any of our Strong Performers would make great DSP partners, but each has different strengths. Rocket Fuel is heavily committed to developing “marketing that learns” through artificial intelligence that takes the human element out of campaign optimization. MediaMath offers a powerful integrated DMP with features like Akamai-powered full audience view, complex conditional sequencing logic, and 60 third-party data integrations. Google has invested heavily in improving its DoubleClick suite of products to better meet marketer needs, with a focus on being a one-stop shop for programmatic advertising. Lastly, AudienceScience has fully embraced being a true technology solution for marketers, and boasts a client roster that is 100% marketer-direct. © 2015, Forrester Research, Inc. Reproduction Prohibited June 3, 2015
For B2C Marketing Professionals  5  The Forrester Wave     Demand-Side Platforms, Q2 2015  Our Evaluation Considered Curre...
For B2C Marketing Professionals 6 The Forrester Wave™: Demand-Side Platforms, Q2 2015 This evaluation of the DSP market is intended to be a starting point only. We encourage clients to view detailed product evaluations and adapt criteria weightings to fit their individual needs through the Forrester Wave Excel-based vendor comparison tool. Figure 2 Forrester Wave™: Demand Side Platform, Q2 ’15 Risky Bets Contenders Strong Performers Leaders Strong DataXu Rocket Fuel AOL Turn MediaMath The Trade Desk AppNexus AudienceScience Google Current offering Go to Forrester.com to download the Forrester Wave tool for more detailed product evaluations, feature comparisons, and customizable rankings. Market presence Weak Weak 120112 Strategy Strong Source: Forrester Research, Inc. Unauthorized reproduction or distribution prohibited. © 2015, Forrester Research, Inc. Reproduction Prohibited June 3, 2015
For B2C Marketing Professionals  6  The Forrester Wave     Demand-Side Platforms, Q2 2015  This evaluation of the DSP mark...
For B2C Marketing Professionals 7 The Forrester Wave™: Demand-Side Platforms, Q2 2015 Forrester’s Weighting AOL AppNexus AudienceScience DataXu Google MediaMath Rocket Fuel The Trade Desk Turn Figure 2 Forrester Wave™: Demand Side Platform, Q2 ’15 (Cont.) CURRENT OFFERING Buying offering Data offering Analytics offering 50% 33% 33% 33% 3.93 3.49 3.61 4.70 3.48 3.56 3.98 2.90 2.99 3.28 2.80 2.90 4.48 3.84 4.70 4.90 2.68 3.64 1.31 3.10 3.71 3.76 4.17 3.20 3.78 3.50 3.85 4.00 3.50 3.46 3.65 3.40 3.51 3.29 3.65 3.60 STRATEGY Corporate strategy Service strategy 50% 30% 70% 3.74 5.00 3.20 3.80 3.80 3.80 2.38 4.20 1.60 3.95 5.00 3.50 3.38 3.80 3.20 2.90 5.00 2.00 2.90 5.00 2.00 4.58 5.00 4.40 3.95 5.00 3.50 MARKET PRESENCE Market presence 0% 100% 2.75 2.75 4.00 4.00 2.75 2.75 5.00 5.00 2.50 2.50 5.00 5.00 2.25 2.25 2.25 2.25 4.00 4.00 All scores are based on a scale of 0 (weak) to 5 (strong). Source: Forrester Research, Inc. Unauthorized reproduction, citation, or distribution prohibited. Vendor Profiles Leaders ■ Consider DataXu if you are looking for a total advertising solution. DataXu has developed valuable tools to help marketers plan better and react faster in today’s digital buying ecosystem. Most notably, it has developed a media mix modeling technology called Active Analytics. This solution uses machine learning and predictive analytics to test ad investment patterns, analyze ad investment against projected outcomes, and optimize media mix across online and offline media down to the region. DataXu admits that the use of this tool requires time and a significant investment, but it has the most unique tool for helping marketers plan offline and online investments at the most granular level. By trying to solve marketer challenges that go beyond digital media buying, DataXu has set itself apart as a more complete solution for marketers. According to the online survey conducted for this Forrester Wave evaluation, DataXu’s ad buying platform has room to grow, receiving below average scores for user-centric analytics, tag management, and available application program interfaces (APIs).11 While its offering does include access to non-RTB sources like Twitter Promoted Tweets, iAd, and the Facebook native API, it hasn’t integrated with channels that would make them a more complete solution, such as email, digital out-of-home (DOOH), audio, and other addressable channels of media. If DataXu’s goal is to be a total advertising solution, it will need to address these issues for marketers. © 2015, Forrester Research, Inc. Reproduction Prohibited June 3, 2015
For B2C Marketing Professionals  7  The Forrester Wave     Demand-Side Platforms, Q2 2015  Forrester   s Weighting  AOL  A...
For B2C Marketing Professionals 8 The Forrester Wave™: Demand-Side Platforms, Q2 2015 ■ Consider The Trade Desk if you plan to heavily leverage your agency. The Trade Desk’s approach to programmatic ad buying is to power the media buying agency of the future. As a broad solution that must meet the demands of a wide variety of clients represented by agencies, it has built a highly flexible and customizable platform that allows users to influence every targetable variable directly from the console or via its APIs. A brand-led programmatic strategy with a transparent agency partner behind the execution would be served well by The Trade Desk, since this is a platform that can be tailored to meet the needs of power users and new comers alike. Even though The Trade Desk set the bar for capabilities scores by clients, there is still room for improvement, specifically across its user-centric data capabilities. Currently, the platform is heavily reliant on external partners to facilitate deterministic and probabilistic matching as well as multidirectionality. This could be seen as a weakness in the future as the consolidation of the market inhibits the platform’s access to key data sources such as device graphs. ■ Consider AOL for cross-channel real-time decisioning with powerful multitouch attribution data. Though Verizon recently announced intentions to acquire AOL, key acquisitions of AOL’s own with Adap.tv and Convertro have positioned its platform as a strong ad buying solution in an addressable media future.12 AOL has a strong video offering as well as a compelling offering in cross-channel attribution. Specifically, the integration of Convertro provides marketers with a powerful attribution engine that feeds real-time ad buying decisioning. This will be imperative as multitouch attribution becomes the standard for measurement, replacing traditional lasttouch attribution models. AOL still has some work to do in terms of integrating all of these disparate technologies, specifically from a workflow and user-interface standpoint, as clients rated the vendor below average on depth of reporting and interface.13 ONE by AOL is working quickly to bring these elements together seamlessly, having improved the integration and workflow of its integrated DMP.14 ■ Consider Turn if you are looking for a well-rounded set of features. Turn provides marketers with a well-rounded set of tools for buying, data management, and analytics with its Campaign Suite offering. As a Leader, it provides the features that marketers expect from DSPs today, as well as integrations to fill any gaps in its capabilities, e.g., brand safety, cross-device graphs, and closed loop reporting. Turn also provides marketers with tools that make its platform substantially customizable, like the PMML (predictive markup marketing language) tool. As a pioneer of programmatic, Turn is always a viable option for marketers because of its ability to incorporate external tools into its platform. Turn still has work to do to in the DSP space, considering its clients gave its capabilities an average rating.15 As marketers look for platforms that simplify the digital ad buying ecosystem, they will find that Turn is still heavily dependent on integrations with external tech partners, © 2015, Forrester Research, Inc. Reproduction Prohibited June 3, 2015
For B2C Marketing Professionals  8  The Forrester Wave     Demand-Side Platforms, Q2 2015       Consider The Trade Desk if...
For B2C Marketing Professionals 9 The Forrester Wave™: Demand-Side Platforms, Q2 2015 which can be problematic. Take its integration with Adometry for example: With Adometry discontinuing its service to external partners, Turn had to find a replacement in Pixalate to ensure continuity of service. The potential need to find replacement solutions and the incremental costs associated with using external partners will motivate marketers to look to platforms that offer more complete marketing solutions. ■ Consider AppNexus if you need a strong technology foundation to build on. AppNexus provides a powerful technology platform to buy ads programmatically for those technically skilled users who can take full advantage of its sophisticated features. This is confirmed by the highly positive client feedback on AppNexus’ APIs.16 But not all buyers are created equal, and while AppNexus is taking stride to improve its user-friendliness with less sophisticated buyers through native tools, this platform has found a niche with power users. Power users find value in this DSP because everything is extensible using API data, which allows tech-savvy buyers to build on top of the technology. To appeal to less tech-savvy clients, AppNexus still has work to do. It aims to empower agencies with the release of products that streamline processes, break silos, and facilitate aggregation to restore agency value. These products include Twixt, Console, and Media Investment Platform (MIP). AppNexus’ approach to product development is unique in that it plans quarterly road maps and has a track record of delivering against it. Based on that track record, we anticipate that these launches will be timely and relevant for the space. Strong Performers ■ Consider Rocket Fuel if you value a hands-off approach that relies on machine learning. Rocket Fuel’s focus is on providing marketers with an autonomous programmatic buying platform that is independent of human optimization. Rocket Fuel stresses that its artificial intelligence (AI) consistently out-performs marketer manual optimizations and is looking to further automate the process for marketers by eliminating the need to monitor performance and the “guesswork” involved in determining optimal investment allocation. Despite its confidence in its AI, Rocket Fuel has also responded to demand from clients for an improved user interface and expanded custom features of its self-serve offering. With the acquisition of X Plus One, Rocket Fuel is developing a more well-rounded platform for those users who demand to be more involved. Rocket Fuel certainly has more work to do, and is working quickly to refine its self-service offering, currently rated by its customers as below average in campaign setup and management.17 The product demo highlighted strong forecasting tools and unique data management features like the visualization of real-time user activity, but the interface was cluttered and required multiple logins.18 Admittedly, some of the features, like the performance forecasting tool, were only employed by internal users and available via managed service, so Rocket Fuel will need to develop easier ways for its clients to fully leverage the power of its technology. © 2015, Forrester Research, Inc. Reproduction Prohibited June 3, 2015
For B2C Marketing Professionals  9  The Forrester Wave     Demand-Side Platforms, Q2 2015  which can be problematic. Take ...
For B2C Marketing Professionals 10 The Forrester Wave™: Demand-Side Platforms, Q2 2015 ■ Consider MediaMath for its superior access to addressable media. Marketers can rely on MediaMath to provide a platform that supports broad access to addressable digital channels and devices.19 Most notably, MediaMath is the only DSP that has Facebook FMP status. Fully embracing the total marketing solution theme, MediaMath also offers clients a breadth of native solutions to enhance digital media buying through its Terminal One Operating System. Specifically, MediaMath is the only vendor in the space that can offer a native first-party data management solution that is tagless for clients that use Akamai to power their sites. The Akamai-powered solution provides extended reach for marketers against retargeting audiences. As the tagless future of digital looms close, MediaMath is uniquely positioned to be a powerful solution for marketers. MediaMath still has work to do in refining its user-centric data capabilities and analytics offering, receiving the lowest user-centric analytics rating from the client survey and below average on depth of analytics. Currently in live beta, MediaMath’s Connected ID product is an example of the work that needs to be done from a user-centric standpoint, but customers feel that MediaMath’s depth of reporting could use work as well. Based on Forrester’s evaluation, we saw that this vendor is highly dependent on integrations across multitouch attribution, closedloop reporting, and brand studies. Additionally, MediaMath’s predictive analytics capabilities fall short for users who are looking to leverage the technology to forecast performance against conversion activity. By addressing these elements, MediaMath can become a more complete solution for marketers looking to simplify the digital media buying ecosystem. ■ Consider Google if you already use other products within the DoubleClick suite. Marketers that currently use DoubleClick products will find that Google has made it a priority to integrate those products into DoubleClick Bid Manager, resulting in the highest client ratings in campaign setup and management capabilities.20 These integrations facilitate workflow and collaboration across invested parties like creative teams, ad ops teams, analytics teams, and media teams. Google is enhancing its product suite to be a one-stop shop for marketers as confirmed by the integration of MTA and brand safety features from recent acquisitions. Google still has quite a bit of work ahead to serve as the ideal solution for ad buyers. One major element missing in its product offering today is the lack of a DMP. Though Google recently announced that it will launch a DMP called DoubleClick Audience Center, this product was not generally available at the time of the product demo and assessment so Google’s scores do not reflect this product’s capabilities.21 Google also opted out of answering several questions on usercentric data, impacting its scores negatively. Although DoubleClick Bid Manager has some data management capabilities, Google is at a disadvantage for marketers considering technologies that offer stronger audience management and first-party data importing capabilities. © 2015, Forrester Research, Inc. Reproduction Prohibited June 3, 2015
For B2C Marketing Professionals  10  The Forrester Wave     Demand-Side Platforms, Q2 2015       Consider MediaMath for it...
For B2C Marketing Professionals 11 The Forrester Wave™: Demand-Side Platforms, Q2 2015 ■ Consider AudienceScience for its dedicated approach to serving marketers. Previously known as the ad network Revenue Science, AudienceScience has come a long way to be considered a contender in the DSP space, specifically for its commitment to only working with marketers. One of the features that marketers appreciate when partnering with AudienceScience is the option to use a private data warehouse. This feature successfully addresses concerns about first-party data safety. Additionally, AudienceScience engineers work with marketer analytics and software teams to tailor machine learning to specific marketer needs. This commitment to marketers has served this vendor well, as global CPG brands have turned to AudienceScience to create private in-house trading desks. Overall, AudienceScience has a lot of work to do to enhance its platforms capabilities. Most notably, AudienceScience has to focus on supporting more channels and devices as marketers want to partner with DSPs to access addressable inventory across all types of media. With more inventory integrations, AudienceScience will be a strong marketer-focused solution that is flexible enough to be tailored to specific marketing needs. Supplemental Material Online Resource The online version of Figure 2 is an Excel-based vendor comparison tool that provides detailed product evaluations and customizable rankings. Data Sources Used In This Forrester Wave Forrester used a combination of four data sources to assess the strengths and weaknesses of each solution: ■ Vendor surveys. Forrester surveyed vendors on their capabilities as they relate to the evaluation criteria. Once we analyzed the completed vendor surveys, we conducted vendor calls where necessary to gather details of vendor qualifications. ■ Product demos. We asked each vendor to conduct demonstrations of its product’s functionality. We used findings from these product demos to validate details of each vendor’s product capabilities. ■ Customer reference calls. To validate product and vendor qualifications, Forrester also conducted reference calls with at least one of each vendor’s current customers. ■ Online client surveys. To understand how clients work with the vendors and their interpretation of the strengths and weaknesses of the offerings. © 2015, Forrester Research, Inc. Reproduction Prohibited June 3, 2015
For B2C Marketing Professionals  11  The Forrester Wave     Demand-Side Platforms, Q2 2015       Consider AudienceScience ...
For B2C Marketing Professionals The Forrester Wave™: Demand-Side Platforms, Q2 2015 12 The Forrester Wave Methodology We conduct primary research to develop a list of vendors that meet our criteria to be evaluated in this market. From that initial pool of vendors, we then narrow our final list. We choose these vendors based on: 1) product fit; 2) customer success; and 3) Forrester client demand. We eliminate vendors that have limited customer references and products that don’t fit the scope of our evaluation. After examining past research, user need assessments, and vendor and expert interviews, we develop the initial evaluation criteria. To evaluate the vendors and their products against our set of criteria, we gather details of product qualifications through a combination of lab evaluations, questionnaires, demos, and/or discussions with client references. We send evaluations to the vendors for their review, and we adjust the evaluations to provide the most accurate view of vendor offerings and strategies. We set default weightings to reflect our analysis of the needs of large user companies — and/or other scenarios as outlined in the Forrester Wave document — and then score the vendors based on a clearly defined scale. These default weightings are intended only as a starting point, and we encourage readers to adapt the weightings to fit their individual needs through the Excel-based tool. The final scores generate the graphical depiction of the market based on current offering, strategy, and market presence. Forrester intends to update vendor evaluations regularly as product capabilities and vendor strategies evolve. For more information on the methodology that every Forrester Wave follows, go to http://www.forrester.com/marketing/policies/forrester-wavemethodology.html. Integrity Policy All of Forrester’s research, including Forrester Waves, is conducted according to our Integrity Policy. For more information, go to http://www.forrester.com/marketing/policies/integrity-policy.html. Survey Methodology Forrester’s Q1 2015 Demand-Side Platform Wave™ Online Survey was fielded to 94 marketers who are client references of DSP vendors participating in this Forrester Wave. Forrester fielded the survey during Q1 2015. Exact sample sizes are provided in this report on a question-by-question basis. This data is not guaranteed to be representative of the population, and, unless otherwise noted, statistical data is intended to be used for descriptive and not inferential purposes. While nonrandom, the survey is still a valuable tool for understanding where users are today and where the industry is headed. © 2015, Forrester Research, Inc. Reproduction Prohibited June 3, 2015
For B2C Marketing Professionals  The Forrester Wave     Demand-Side Platforms, Q2 2015  12  The Forrester Wave Methodology...
For B2C Marketing Professionals 13 The Forrester Wave™: Demand-Side Platforms, Q2 2015 Endnotes “Most of the growth in online display between 2014 and 2019 will come from three areas that will generate the bulk of the growth by 2019: programmatic exchange-based trading, video advertising, and mobile display.” See the “North American Online Display Advertising Forecast, 2014 To 2019” Forrester report. 1 2 Out of the 94 respondents, 65 (69%) responded that they use DSPs to facilitate private exchanges. Source: Forrester’s Q1 2015 Demand-Side Platform Wave™ Online Survey. Of the 94 respondents, 68% said that they customized several or a substantial amount of elements of their DSP platform. Source: Forrester’s Q1 2015 Demand-Side Platform Wave™ Online Survey. 3 Seventy-six percent of those surveyed said that they use the analytics and reporting available on their platform. Source: Forrester’s Q1 2015 Demand-Side Platform Wave™ Online Survey. 4 “Today, programmatic buying entails an alphabet soup of new classes of vendors to execute a buy. As more advertisers adopt programmatic buying and learn these complexities and as issues like viewability move toward resolution, this is likely to rise to become a top concern.” See the “Media Buying’s Evolution Challenges Marketers” Forrester report. 5 “Advertisers aren’t sure if new agency models are in their interest. [Marketers are expressing] a high level of concern over the possibility that agencies may receive a rebate from the media sellers. Not only could this be considered ‘double dipping,’ as clients already pay agencies for media buying, but media rebates to the agency create at least the perception of a conflict of interest: Is the agency choosing the media placement solely based on its judgment of the fit for the assignment or because it’s more profitable for the agency?” See the “Media Buying’s Evolution Challenges Marketers” Forrester report. 6 Source: Alex Kantrowitz, “Vivaki Overhauls Its Trading Desk,” Advertising Age, February 13, 2015 (http:// adage.com/article/digital/vivaki-overhauls-trading-desk/297170/). 7 For more information on publisher/marketer best practices to detect and diminish ad fraud, see the “Ad Fraud: Tackle Digital Ads’ Dirty Little Secret And Make Money In The Process” Forrester report. 8 Source: Jeff Fraser, “Meet the brands at the cutting edge of programmatic,” Marketing, March 6, 2014 (http://www.marketingmag.ca/brands/meet-the-brands-at-the-cutting-edge-of-programmatic-102795). 9 Source: Melanie White, “How Kraft Harnessed Data to Transform Marketing,” ClickZ, January 29, 2015 (http://www.clickz.com/clickz/news/2392789/how-kraft-harnessed-data-to-transform-marketing). 10 DataXu’s results were gathered from 17 respondents. Source: Forrester’s Q1 2015 Demand-Side Platform Wave™ Online Survey. 11 Source: David Gelles, “Verizon Bets on Video Ads in $4 Billion Deal for AOL,” The New York Times, May 12, 2015 (http://www.nytimes.com/2015/05/13/business/dealbook/verizon-to-buy-aol-for-4-4-billion. html?_r=0). 12 AOL’s results were gathered from 11 respondents. Source: Forrester’s Q1 2015 Demand-Side Platform Wave™ Online Survey. 13 © 2015, Forrester Research, Inc. Reproduction Prohibited June 3, 2015
For B2C Marketing Professionals  13  The Forrester Wave     Demand-Side Platforms, Q2 2015  Endnotes      Most of the grow...
For B2C Marketing Professionals 14 The Forrester Wave™: Demand-Side Platforms, Q2 2015 AOL has created a single sign-on and improved user interface since this evaluation. 14 Turn’s results were gathered from 11 respondents. Source: Forrester’s Q1 2015 Demand-Side Platform Wave™ Online Survey. 15 AppNexus’ results were gathered from nine respondents. Source: Forrester’s Q1 2015 Demand-Side Platform Wave™ Online Survey. 16 Rocket Fuel’s results were gathered from eight respondents. Source: Forrester’s Q1 2015 Demand-Side Platform Wave™ Online Survey. 17 Since this evaluation, Rocket Fuel has taken steps to incorporate a single sign-on feature, available in June 2015. 18 MediaMath’s results were gathered from nine respondents. Source: Forrester’s Q1 2015 Demand-Side Platform Wave™ Online Survey. 19 Google’s results were gathered from eight respondents. Source: Forrester’s Q1 2015 Demand-Side Platform Wave™ Online Survey. 20 Source: Garett Sloane, “Google Builds a Data Platform That’s the Last Piece of Its Ad Empire,” Adweek, April 22, 2015 (http://www.adweek.com/news/technology/googles-planned-data-management-platformkey-competing-facebook-164210). 21 © 2015, Forrester Research, Inc. Reproduction Prohibited June 3, 2015
For B2C Marketing Professionals  14  The Forrester Wave     Demand-Side Platforms, Q2 2015    AOL has created a single sig...
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About Forrester Global marketing and strategy leaders turn to Forrester to help them make the tough decisions necessary to...