An Introduction to Programmatic

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BravoEcho works with the leaders of organizations to evolve their business through brand, strategy and communications.

We create and build brands.

Our job is to know our Client’s audience. We are champions of the customer and the strategic voice behind the brands we serve.

WHO WE ARE

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TARGETING WITH TECHNOLOGY

WHAT IS PROGRAMMATIC THE LINGO

PROS & CONSAN AD

IMPRESSION

THE ROLE OF STORYTELLING

The Digital Advertising Landscape

1.

Programmatic Advertising

2.

Future Considerations

3.

The Digital Advertising

Landscape

“Half my advertising is wasted, I just don't know which half."

-John Wanamaker

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HOW FAR WE’VE COME

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IN THE PAST

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TODAY

WHAT IS PROGRAMMATIC

Programmatic buying is the gluten of advertising. Like gluten, ‘programmatic’ has become a buzzword that many people use but few really understand. They just know it’s important.”

-Jimmy Kimmel

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PROGRAMMATIC, THE NEW BUZZWORD

“

In this data-driven world we are surrounded by new technologies that enhance customer experiences, create efficiencies and reduce waste for businesses.

Programmatic is one tool that has come out of this technology race. It’s an audience-buying tool.

It’s a way in which the right message can be delivered to the right person at the right time.

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PROGRAMMATIC IS A TOOL

By definition, programmatic is an automated process in which ads are bought — through auction based systems in the marketplace or through publishers — and served across the web to a specific audience.

It’s simply focused on two components:

1) Buying targeted audiences

2) Making the process more efficient

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PROGRAMMATIC IS A TOOL

Programmatic is part of this complicated digital ecosystem.

And that’s the world advertisers must start to understand better in order to target and spend more efficiently.

Ultimately, realizing the same end goal — building brand and creating a stronger and more relevant relationship with the customer.

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BUILDING BRAND

Programmatic can also help to deliver stronger ROI, more “bang for your buck” when used and applied in the right way.

Two key components to this equation:

Lower cost impressions + Improved audience targeting

= Stronger results

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STRONGER ROI

Digital buying used to be centered on the advertiser buying inventory from premium publishers.

But over time, advertisers realized buying premium didn’t matter if the user wasn’t relevant. There was a ton of waste.

Programmatic allows advertisers to move from mass buys to a system that more precisely targets relevant audiences with stronger results and proven ROI.

Targeting the right user at the right time with the right message is the end goal AND is a strategic tactic that has now become price of entry.

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END GOAL

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Language

A CLOSER LOOK AT PROGRAMMATIC

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In the world of programmatic advertising, media is typically purchased through a DSP on a CPM basis facilitated by SSPs on individual websites which are connected to Ad Exchanges or Private Exchanges. Unlike Ad Networks, programmatic buys are transacted on a unit-by-unit basis offering full transparency into individual placements. More than just retargeting, 1st party data is one of the key leverage points in programmatic. Through the use of this data, tracking pixels and use of cookies create a feedback loop which combined with CPM gives us the ability to value all aspects of the campaign, audience, and inventory at an effective CPA.

Using these findings in combination with 2nd and 3rd party data we create look-alike models which extend the size of the audience. Once considered remnant inventory, RTB buys are where we explore for high performing site inventory. When that inventory has been identified, we secure programmatic preferred deals and programmatic guaranteed deals to scale the campaigns. Every dimension of a programmatic media buy can be assigned an appropriate price or bid so that the campaign is optimized on all levels for maximum ROI.

A software used by advertisers and agencies to purchase advertising in an automated manner.

DSPs allow advertisers to target specific users and buy impressions across a range of publisher sites. These publishers make ad impressions available through the marketplace and the DSP software decides which impressions make sense to buy.

The advantage of using DSPs instead of ad networks is the ability to buy, serve and track ads using one central tool, and to optimize campaigns more easily as a result. And, it’s cheaper.

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DEMAND SIDE PLATFORM (DSP)

A software used by publishers that connects their inventory with ad exchanges, networks, and DSPs to sell impressions at their highest value in real time. Publishers can set a minimum price they will sell impressions for.

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SUPPLY SIDE PLATFORM (SSP)

A model that charges advertisers every time an ad is displayed to a user, whether the user clicks on the ad or not.

If a publisher charges $3 CPM, the advertiser must pay $3 for every 1,000 impressions of its ad.

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COST PER THOUSAND (CPM)

A performance-based advertising measure that looks at how much it costs in advertising to convert a prospect to a customer for a company.

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COST PER ACQUISITION (CPA)

Ad networks bring together inventory and audiences to help marketers buy online ad impressions faster and more efficiently.

There are many different types of ad networks. Some focus on reach and price and don't provide much insight on who or where.

Other, more premium networks — including publisher-specific networks — are all about guaranteeing audience demographics and quality.

The business model for ad networks is to aggregate inventory from a range of publishers, mark it up and sell it on for a profit.

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AD NETWORKS

A technology platform that facilitates the buying and selling of advertising inventory between an advertiser and thousands of publishers, often through real-time auctions.

Ad exchanges allow advertisers to buy ads, using DSPs, across a range of sites at once versus site-direct through publishers.

Ad networks and other entities also buy ads from exchanges.

Exchanges are supposedly more transparent than networks because they enable buyers to see exactly what price impressions are being sold for.

Popular ones are Google Ad Exchange and Facebook Exchange.

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AD EXCHANGES

Publishers are starting to use private exchanges to control who can buy their inventory and at what price.

It allows them to be selective and not have to deal with the open market and/or networks that could sell those ad impressions through a markup.

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PRIVATE EXCHANGES

You are referred to as the 1st party.

This is data you own. It’s free. Information you have collected over time on your customer (via web cookies, mobile apps, purchases, forms, email). It’s unique.

It’s the most valuable type of data organizations can collect. Why?

Because, these are existing customers who are interacting with your brand, already. They have behaviors that can be analyzed and leveraged. It’s also limited. In quantity and in insights. But still, very valuable.

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1ST PARTY DATA

2nd Party Data is another organization’s first party data.

This is a growing area for audience targeting acquired through strategic partnerships and alliances.

3rd Party Data is data you buy from companies that are data aggregators.

It’s becoming less popular given the backlash from privacy groups and consumers.

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2ND AND 3RD PARTY DATA

A technology that allows an advertiser to serve up an ad to a visitor who has been to their site.

Retargeting has evolved to include Site, Search and CRM retargeting. And these audiences can be bought programmatically.

They say 2% of online shoppers convert the first time around. Retargeting helps to bring back the other 98%.

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RETARGETING

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A Tracking Pixel is essentially a piece of code that’s placed on a web page by a marketer. Not viewable by the users.

They can be placed where a sale or conversion takes place or across sites.

Pixels also trigger Cookies which store information about the user.

The cookie is what allows ad networks and exchanges to ID a user across sites and serve up an ad.

Pixels are extremely valuable in tracking campaigns and creating user profiles to create look-alikes.

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TRACKING PIXELS AND COOKIES

It’s simple a way of leveraging and analyzing data from your existing customers — generally your best customer profiles — for targeting.

Once characteristics, behaviors and profiles are identified, companies develop “look-alike” models.

It’s about broadening reach by finding new prospects who behave like current customers.

A technique that allows for targeting to be much more precise and efficient with media dollars.

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LOOK-ALIKE MODELING

Real-time bidding is the buying and selling of ad space (per impression) in real-time through auctions held.

RTB is not its own platform — it’s a type of technology that ad exchanges, DSPs, and SSPs integrate in order to perform these auctions.

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REAL-TIME BIDDING (RTB)

Trading desks are used by agencies and are a way to purchase ads and audiences in real time and measure results and report audience insights.

Trading desks were created in order to give the advertiser and the agency more control over the ad placement and more closely examine the results to optimize if and as necessary.

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TRADING DESKS

Preferred Programmatic — Buyers who have more information than other advertisers because it takes place outside an auction, and they have the right of first refusal over impressions. It’s based on set CPM but non-guaranteed inventory.

Programmatic Guaranteed/Direct — Buyers negotiated a set price and run date, outside of an auction. And it’s based on a set CMP and guaranteed inventory.

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PREFERRED PROGRAMMATIC VS GURANTEED/DIRECT

The Life of An Ad Impression


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Pros & Cons


Efficient in Process, Targeting, and Spend

Control and More Data

Flexibility with Tactics and Spending

Test and Learn Approach

Evolving beyond RTB

Evolving Opportunity for Brand Impact

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THE PROS

Remnant Inventory

Control over Sites and Context

Transparency

Hidden Costs/Fees

The Loss of Storytelling

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THE CONS

What’s the role of storytelling?


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Programmatic has traditionally been a tool focused on direct response campaign buys.

Meanwhile, direct site buys ensured premium inventory promoted brand and leveraged creative that pushed brand awareness and bigger storytelling.

Part of this stemmed from the historical perception that programmatic was limited to remnant (bad) inventory.

However, programmatic has evolved and matured. So now it’s time to understand the opportunity for brand messaging and storytelling.

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DIRECT REPONSE RULED

Facebook and Adaptly (social media ad platform) put these two marketing strategies to the test with Refinery29, a fashion lifestyle site, to see which would generate more email subscriptions.

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SEQUENCED STORYTELLING VS CALL TO ACTION

-View-Through, increased 87% by those exposed to sequencing storytelling

-Subscription rates increased 56% by those exposed to sequential storytelling

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SEQUENCED STORYTELLING PREVAILS

The idea of telling a story through a series of messages and the cumulative effect is not new.

But the idea of doing it in real-time is.

Building a sequential brand story that leverages real-time technology and insights, across multiple digital devices, allows advertisers to change the story and creative at each step.

Although the challenge has always been about engaging and entertaining the consumer, the new layer is getting the audience to become participants in integrating the pieces of the story.

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SEQUENTIAL STORYTELLING

Just A Trend?

FUTURE CONSIDERATIONS

In 2014, the most dramatic growth and expansion in programmatic occurred.

This year, nearly $15 billion will be spent programmatically, about 55% of total display ad spending.

By 2016, spending is predicted to reach $20.41 billion, nearly 63% of total display spend.

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A CONSISTENT PATTERN OF GROWTH

In 2013, AmEx spent $128.5 million on online display ads and was the 9th largest online display advertiser, according to Ad Age Datacenter

“American Express would like to transform their Display Media Channel to become 100% programmatic…We believe the advancements in programmatic buying give Amex the opportunity to get much closer to the digital media campaigns specifically using our expertise, data and resources.”

- 2014 RFP distributed by AMEX

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AMEX SHIFTED TO PROGRAMMATIC

Mondelez brands Oreo and Ritz bought :15 Super Bowl ads this past year to test and pilot programmatic buying in TV

“Programmatic fits within the larger digital optimization strategy we’ve been employing for the last year as we shift more media spend to digital, and online video is a major area for growth.”

-Ivelisse Roche, Mondelez’s , Associate Director for Global Media and Consumer Engagement

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MONDELEZ SHOWS EXTREME CONFIDENCE

Time Inc — publisher of People, Fortune, SI — announced earlier this year, the decision to let advertisers buy print programmatically. Target is among the first of advertisers to experiment.

“With this process, print is now as easy to buy as digital.”

-Andy Blau, Senior VP of Ad Sales and Marketing for Time Inc. Branded Solutions

“The ability to start to experiment with print and buy it programmatically fits nicely within our overall strategy."

-Kristi Argyilan, Target's Senior VP of Media and Guest Engagement

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TIME INC SELLS PRINT PROGRAMMATICALLY

Where will we be in 2020?

FUTURE PREDICTIONS

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Technology will become part of the planning and development of marketing. After this transition, technology will become part of the core fabric of marketing.

#2 TECHNOLOGY AND MARKETING MERGE

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New tools have made fans and consumers more accessible than ever. Create a community with them and have more direct conversations.

#3 OWNING YOUR AUDIENCE

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Smart homes, TVs, cars, and phones are all becoming interconnected. Smart marketers will take advantage of this.

#4 CONNECTED EVERYTHING, EVERYWHERE

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People will reward the brands that do good and punish those that don’t. Brand citizenship will turn into a marketing function that drives transactions and scale and creates advantages for companies in the talent wars.

#5 DOING GOOD IS GOOD BUSINESS

THANK YOU

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SOURCES

Videos "Big Data Meets Presidential Politics.” CSC. https://www.youtube.com/watch?v=6ZOfnFCMHTM

"The Evolution of Online Advertising." Interactive Advertising Bureau. https://www.youtube.com/watch?v=1C0n_9DOlwE

"200ms: The Life of a Programmatic RTB Ad Impression.” MediaCrossing. https://www.youtube.com/watch?v=rTg9l4d8MU4

Additional References Gallagher, Sean. "Built to win: Deep inside Obama’s campaign tech." http://arstechnica.com/information-technology/2012/11/built-to-win-deep-inside-obamas-campaign-tech/

Iseenberg, Sasha. "How President Obama’s Campaign Used Big Data." http://www.technologyreview.com/featuredstory/508836/how-obama-used-big-data-to-rally-voters-part-1/

Oetting, Jami. "The Definitive Glossary of Programmatic Advertising." http://www.chango.com/resources/magazine/storytelling-in-a-programmatic-age/

"Programmatic Advertising 101.” Chango.com. http://www.chango.com/resources/magazine/storytelling-in-a-programmatic-age/

Limon, Kathleen. "The Difference Between First, Second and Third Party Data." https://retargeter.com/blog/general/difference-first-second-third-party-data-use

Tyler, Mike. "The Pros and Con of Programmatic Ad Buying." http://advertisinginstitute.com/pros-and-cons-of-programmatic-ad-buying/

"The Value of Storytelling on Facebook for Marketers.” https://www.facebook.com/business/news/value-of-storytelling-on-facebook

"The Science of Social Media Advertising.” Adeptly, Facebook and Refinery. https://fbcdn-dragon-a.akamaihd.net/hphotos-ak-xft1/t39.2365-6/10333119_1457635661160496_168768318_n.pdf

"Storytelling in the Programmatic Age.” Chango.com. http://www.chango.com/resources/magazine/storytelling-in-a-programmatic-age/

"US Programmatic AD Spend Tops $10 Billion This Year.” eMarketer. http://www.emarketer.com/Article/US-Programmatic-Ad-Spend-Tops-10-Billion-This-Year-Double-by-2016/1011312

Beer, Jeff. "25 Predictions for What Marketing Will Look Like in 2020.” http://www.fastcocreate.com/3043109/sector-forecasting/25-predictions-for-what-marketing-will-look-like-in-2020

http://www.fastcocreate.com/3043109/sector-forecasting/25-predictions-for-what-marketing-will-look-like-in-2020

An Introduction to Programmatic

Marketing

Transcript of An Introduction to Programmatic