Going Global:Programmatic Audience Development Around the WorldA WINTERBERRY GROUP WHITE PAPER JULY 2014WITH THE SUPPORT OFIN PARTNERSHIP WITH 2014 Winterberry Group LLC. 2ACKNOWLEDGEMENTSThis white paper would not have been possible without the significant contributions of more than 200 executive-level thought leadersincluding contributors, international trade association supporters and reviewers representing all segments of the advertising, marketing, media and technology industries across 12 global marketsAustralia, Brazil, Canada, China, France, Germany, the Persian Gulf region, Japan, Mexico, South Africa, the United Kingdom and the United States. In particular, Winterberry Group is grateful to our research partner, the Interactive Advertising Bureau, as well as the above sponsors for their generous support of this research initiative.Additionally, we extend our deepest appreciation to the marketers, publishers, technology developers and service providers who contributed their time, insights and enthusiasm in support of our research. Though their individual names are not mentioned in this paper, they represent some of the most respected and innovative companies in the data-driven marketing and media worldincluding AdAudience, AJ Advisers, Aunica, Brandwatch Germany, Clicks2Customers.com, Dell, Inc., Dentsu Aegis Network, Kaspersky Lab, makazi, News Corp Australia, nugg.ad AG, ROIx Brazil, SAP, Simbiose Ventures Brazil, and many others.Lastly, we would like to thank the IAB licensee organizations around the worldincluding IAB Australia, IAB Brasil, IAB Canada, IAB France, BVDW (Germany), IAB Mexico and IAB South Africawho enthusiastically lent their support to our research effort and introduced us to dozens of thought leaders within their respective markets. Premier SponsorsSupporting Sponsors 2014 Winterberry Group LLC. 3Humor sometimes has a hard time cutting through language and cultural barriers. But its no joke how the proliferation of data and technology is reshaping the media business. Publishers are looking to build audiences defined by specific interests and behaviors. Marketers are aiming to engage with consumers across devices, points of sale and geographies. And technology developers, agencies and other service providers? Theyre racing to make all of it happen.Theyve been spurred on by a pair of recent developments that together represent the most profound paradigm shift to affect the practice of publishing since the dawn of the Internet. The first is the embrace of the consumer audienceas defined by a wide range of expressed, observed and inferred data pointsas the strategic pillar upon which the transaction of media can and ought to be based. The secondthe meteoric growth of programmatic marketingfollows in natural order, representing the tactical means by which practitioners bring the promise of audience development to life.But while the media community in the United States, the United Kingdom and certain other markets has been awash in programmatic fever for more than five years, the shift to an “audience culture” has been slower to take hold elsewhere. Rapidly, though, thats changing. In fact, the accessibility of both data and technologyalong with a growing recognition of how the practice of “programmatic” may help media companies overcome daunting challenges to their underlying business modelsare driving vast new interest in the approach, with publishers and marketers alike rapidly moving to build their global audiences, establish properties in new markets and forge alliances with partners in markets all over the world. The 2013 promise of “programmatic everywhere,” it seems, is rapidly becoming a 2014 reality.Unfortunately, the shift to an audience culture in media circles hasnt yet managed to reform a wider world defined by vastly different political, technological and cultural norms. So even while they race to build programmatic infrastructure across marketswith U.S. brands moving to stand up a presence in overseas markets, and “global” brands casting their sights on the U.S. and elsewheredigital publishers are confronting a slew of challenges and opportunities that are both new and unique to each individual market. Where, for example, are local advertisers most accustomed to engaging with programmatic technology? How do contrasting regulatory frameworks impact the accessibility of behavioral data? And where are general market conditions most likely to reward audience investments over the long term?INTRODUCTION AND EXECUTIVE SUMMARYIts a running joke among the local publisher and agency communities around here. A U.S. company picks up on the enormous opportunity to expand to Europe, opens a tiny office in London and sets out to conquer the continent. As if it were that easy.CHIEF PRODUCT OFFICER, MEDIA OPTIMIZATION PLATFORM, BENELUX REGION 2014 Winterberry Group LLC. 4This white paper, published in partnership with the Interac