Lunchtime Sessions: Demyst i fy ing Programmatic

GARETH NEVILLERetail Sales Director at Ve Interactive

INTRODUCT ION

Please tweet any questions to @veinteractiveor email Gareth.Neville@veinteractive.com

Ve INTERACT IVE

31+ OFFICES

43 TERRITORIES

19 LANGUAGES

WHAT WE’LL COVER

• What is programmatic?

• What are the benefits of using it?

• How does it work?

• Reporting metrics

• Optimisation

• Q&A

PROGRAMMAT IC WORLD

An estimated 20 billion dollars being spent in 2016

The fastest growing

medium…

PROGRAMMAT IC WORLD

Study shows only 23%of marketers understand programmatic buying.

DSP RTB

SSPDMP

All images are for illustrative purposes and are indicative only.

more than half still rate their knowledge as very poor/average

1 year later

WHAT IS PROGRAMMATIC?

83% of all display buys will be programmatic by 2017 (eMarketer)

• Any inventory (ad space) bought automatically through either bidding for the space or buying it directly.

• Increase efficiency

• Inventory measured in impressions – opportunities to show an advert

Programmatic=

Automatic

BEFORE

THE BENEF ITS OF PROGRAMMAT IC

AFTER

• Ads bought/sold manually

• Bulk impressions bought ahead of time from different sites & repackaged to be sold

• No transparency

• Inefficient & unreliable

• Faster

• More efficient

• Less expensive

• More granularity & control over campaign performance

RTB , DSP , SSP

Real-time bidding Demand-side platform

Supply-side platformOr sell-side platform

RTB DSP SSP

Inventory bought & sold on a per-impression basis via instantaneous programmatic auctions

Platform that allows buyers to manage multi ad exchanges, data exchange accounts & campaigns

Platform that lets publishers manage ad inventory & maximise revenue from digital media

Let’s start with some basic terms…

AD EXCHANGE

ADEXCHANG

EPlatform where ad space is bought and sold online. This is a technology driven approach

TRAD ING DESK

TRADINGDESKGroup of traders within an agency/ad company known as experts in their use of technology.

The traders are responsible for daily optimisation of campaigns & driving efficiency from budgets.

DATA IS K EY

COOKIES

• Info stored on a person’s computer by a web server

• It’s retrieved when the user accesses a website

• Record a users unique behaviour during each visit

3 TYPES OF DATA 2nd Party Data

• 1st Party Data obtained from an agreement with another publisher

1st Party Data

• Data owned by the advertiser

• Converted customers are the most valuable data

3rd Party Data • Data from an external

company

• eXelate, Blue Kai, Neilson

• Segmented by age, gender, demographic, interest & intent to purchase

DATA IS K EY

Data Management Platform 

DMPData combined from a number of sources to generate audience segments for improved targeting

DMP

4 TYPES OF INVENTORY

• Real-time bidding

• Variable CPM

• Open to any buyer

• Majority of performance buying and direct response activity

• Pricing determined in real time when the ad is served

4 TYPES OF INVENTORY

• Real-time bidding• Strict price floors

• Invitation-only buyers

• PMP spend has tripled over the last 3 years

• Gives advertisers more control over where ads run

4 TYPES OF INVENTORY

• Abbreviated to PMP

• Non-auction model

• Fixed CPM (pricing)

• Inventory not guaranteed (unreserved)

• Publishers make blocks of inventory with fixed, pre-negotiated pricing available to advertisers

• Advertisers can purchase inventory away from the open market

• Any inventory that’s not sold will often get sent off to auction

4 TYPES OF INVENTORY

• Non-auction model

• Fixed CPM (pricing)

• Guaranteed inventory

• Advertisers get more transparency into inventory they are buying from publishers

• Publishers get more control over which advertisers buy their inventory at specific prices

• Any deal that is negotiated directly between buyer and seller but executed through automation

4 TYPES OF INVENTORY

• AKA “programmatic guaranteed”

BUY ING PROCESS

 

Male, 35 years oldABC, married withchildren, likes cars

and travel 

Auction Model

REPORT ING METR ICS

Cost per Acquisition

CPACost per Action

CPA

Cost per Click

CPCCost per Mille

CPMClick Through Rate

CTR= total marketing cost divided by

number of acquisitions= total marketing cost divided by

total number of actions

= total marketing cost divided by total number of clicks

= total marketing cost divided by number of impressions

= number of clicks the ad receives divided by number of times ad is

shown

REPORT ING

ACH IEV ING PERFORMANCE & OPT IM IS AT ION

ACH IEV ING PERFORMANCE & OPT IM IS AT ION

DSPLearning phase Optimised phaseSUCCESS EVENTS

Sufficient daily spend has to be allocated in order to reach an optimised phase

Tech based on algorithms that optimise throughout the campaign

Measure CPA & KPIs against the available budget

ACH IEV ING PERFORMANCE & OPT IM IS AT ION

At Ve Interactive, we have a team of traders who manually optimise campaigns for greater efficiency

ACH IEV ING PERFORMANCE & OPT IM IS AT ION

SUMMARY

• Basic terminology

• Benefits of programmatic & reasons to invest

• How the auction model works

• Reporting metrics & optimisation

For more information check out the IAB’s jargon buster.

Next time… Prospecting & Retargeting Strategies

For more information, please contact Gareth.Neville@veinteractive.com