Programmatic Advertising in Brief
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Transcript of Programmatic Advertising in Brief
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24 Feb 2016
PROGRAMMATIC IN BRIEF
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"All advertising should…connect an individual person's needs to a business that can offer that individual value."
David Ogilvy
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‘programmatic’ as defined
for robots
Programmatic Advertising is machine-to-machine
automation of advertising/media transactions. This
typically involves machine-learning decisioning and
both biddable and non-biddable inventory, but currently
relies on human input to create rules for both the buy
and sell side.
Some examples of programmatic:
Ad Networks
Search
Real Time Bidding
Automated Guaranteed
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‘Programmatic’ defined
for people like us
Forget the phrase “Programmatic“ - it’s terrible.
It’s actually about targeted and personalised
advertising.
It’s about reaching an audience and individual
consumers, not the publisher/media channel
It’s about serving relevant advertising to the right
person at the right time.
It about reducing wasted advertising spend
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PROGRAMMATIC FLIPPING THE MARKET
100%
80%
60%
40%
20%
0% 2011 2017 2012 2013
Programmatic
2014 2015 2016
Non- Programmatic
11
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In 2015, the spending scale tipped towards
programmatic:
55% of all
US digital display
ads were bought
programmatically
in 2015, worth
$14.88 billion
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why is RTB growing so fast? From past to present
Buyers
Sellers
Past Present
Execution Transparency
Cheap Media
High liquidity
High ROI on Direct Response
Scale
Data Collection
Transparency & ROI
Access to premium inventory
Contextual Relevance
Operational + Media efficiencies
Flexibility in planning
1st party data access
Yield Management
Revenue for unsold media
Sales Channel Conflict
Transparency
Premium Environments
Control
Scale
Operational Efficiency
Higher Yield
1st Party Data Usage
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the programmatic evolution Ad Networks ad networks aggregated
inventory and sold it to
advertisers. helped
publishers by selling
inventory they could not
sell themselves.
Ad Exchanges
& SSPs real-time
marketplaces with a
large pools of liquid
inventory not sold in
direct buys; SSP’s
have more controls
for publishers to
optimize yield
DSPs Bidding technology
designed to help
advertisers/agencies
target and optimize
their buys across
multiple ad
exchanges/publisher
inventory pools
Reservation
Buying ads sold via direct
transactions between
advertisers/agencies
and publishers
1990s
Private
Exchanges &
Automated
Guaranteed Exclusive advertiser-to-
publisher inventory
relationships for
programmatic
purchasing in brand
safe environments
Programmatic
Premium
Direct Sold/
Guaranteed/
Reserved
Indirect/
Programmatic/
Unreserved
Now
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terminology: the painful stuff
RTB Real Time Bidding –the technology that allows the selling and buying of inventory one impression at a time.
Ad Exchange Transparent real-time marketplace where large pools of inventory are bought and sold.
Agency Trading Desk
Holding company-created division to execute audience buying strategies, both direct and programmatic.
DSP Demand Side Platform - Technology company that powers RTB buying for advertisers and agencies. Leverages
Demand Side Decisioning.
SSP Supply Side Platform - Technology platform that powers RTB selling for publishers. Aka a ‘publisher biased exchange.
PMP Strategy to create a premium sales channel using RTB to execute direct buys, aka Private Exchange.
DMP Data Management Platform - 1st party and 3rd party
Automated Guaranteed
Workflow automation and execution channel for direct sold reserved inventory.
Bid Request/ Bid Response
Action in auction where SSP solicits all requests for bids, and DSPs respond with bids.
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MARKETPLACE
actors & acronyms What role each plays in the ecosystem
AD
VE
RT
ISE
R /
AG
EN
CY
P
UB
LIS
HE
R
DSP
AD
VE
RT
ISE
R A
D S
ER
VE
R
SSP
AGENCY TRADING DESK
DMP
PU
BL
ISH
ER
AD
SE
RV
ER
SERVICES
DMP
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Google confidential
Powerful segmentation
Gain insights and optimize
Understand and reach your audience
Google confidential
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Segment your audience for powerful targeting
Interested in baby shoes
Interested in fashion shoes
Sh
Interested in sneakers
Rule Builder
Create powerful audience segments based on Customers’ online behaviour
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Signal/data source Dynamic ad template Personalized ads
Dynamic creative Targeted Messages Segment your audience for powerful targeting and send the right message to the right audience at the right time
Interested in fashion shoes
Interested in Hogan sneakers
Interested in baby shoes
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90+% reach of
typical cookie lists
across exchanges,
Gfooorgmle caontfsid,enatianl d geos
All your display channels in one place: desktop, mobile, video, tablet
Reach more of your audience
+140B Impressions available globally
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Google confidential
impressions seen monthly in ZA
Reach more of your audience 10 billion
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the agency reclaims budget control
Programmatic Budgets climb as % of total Digital Spend
> Half of Senior Ad Buyers allocate between 31-60% of digital budget
to programmatic > By 2016, programmatic will be 65% of US Digital Spend
Programmatic Budgets determined at Agency Level
> Agencies have reclaimed control of programmatic budgets
> Agency Trading Desk Model is challenged i.e. Vivaki
> Agencies have created programmatic teams in-house
As Agencies drive budget, demand increases for innovative
products
> Viewability
> Rising Stars
> Guaranteed buys (thru AG or PMP G)
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how does a publisher manage its business?
Transaction Automation
Programmatic
World
> Price
> Delivery
> Sell thru (STR)
> Revenue
> Yield
> Fill
> Transparency
> Data Leakage & Protection
> Viewability
> Discoverability
Before
Programmatic
> Price (CPM)
> Delivery
> Sell thru (STR)
> Revenue
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Within
programmatic,
there are two
main
subcategories:
RTB and
programmatic
direct
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> High CPM and yield
> Direct Demand
> Non Standard
> High Volume
> Guaranteed Delivery
> Prioritized remnant
> Repackaged media
> Undifferentiated media
> Demand-Supply
imbalance
prioritization in the ad server a.k.a. “The Waterfall”
PREMIUM
DIRECT
STANDARD
DIRECT
PREMIUM
PROGRAMMATIC
OPEN
PROGRAMATIC
> Sponsorship
> Custom Executions
> Context Targeting
> Audience Targeting
> ROS & RON
> PMP
> SSP
> Ad Nets
Typical Publisher
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Automated Guaranteed
Private Marketplace
Open Market
Direct bought guaranteed inventory access, non-RTB
Direct bought RTB based inventory access
RTB based inventory access in open marketplace
Predictable and scalable high value placements
Controlled buying with price agreements for bids
Efficient and targeted audience buying
channels definition value
Pro
gra
mm
atic D
irect
layers of programmatic Premium at scale, across all buying channels
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PREMIUM
DIRECT
PREMIUM
PROGRAMMATIC
STANDARD
DIRECT
OPEN
PROGRAMATIC
> Sponsorship
> Audience Targeting
> Custom Executions
> PMP
> Targeted Media
> ROS
> RON
> SSP
> AdNets
prioritization in the ad server
PREMIUM
DIRECT
STANDARD
DIRECT
PREMIUM
PROGRAMMATIC
OPEN
PROGRAMATIC
> Sponsorship
> Custom Executions
> PMP
> SSP
> Ad Nets
a.k.a. “The Waterfall”
Typical Publisher Future
> Context Targeting
> Audience Targeting
> ROS & RON
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Big Data
Marketers will look beyond publisher and third party
cookies to other data sources
CRM
Cross-device
Offline purchase
data
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Marketers’ Key Challenge: Delivering the Right Message
to the Right Audience in a Fragmented Environment
Create a Complete, Unified Customer Profile
Deliver a Consistent Message Across Channels
Throughout all Stages of the Customer Lifecycle
Multiple Data Sources Multiple Channels Multiple Lifecycle Stages
Mar alified
O ity
Cu mer
Su
pp
ort/S
erv
ice &
Ren
ew
Up
/Cro
ss-s
ell
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Data
Purchase Own
Maintain
Expand Research
Evaluation
Data-Driven Modern, Personalized Marketing
Requires Data to Inform Decisions for all Channels and Stages
Interest
Data
Email Mobile Web Social Direct Display Ads Search Mail
• Enables precise and efficient
personalization that scales
across channels
• Orchestrates unique
messaging, regardless of
customer lifecycle stage
• Transforms multi-sourced
primary and secondary data
into actionable information
• Provides rich data on target
audience and customers as
they progress through funnel,
convert, and reactivate
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Industry Leading Data Management Platform • Allows marketers to manage 1st party data, supplement with 3rd party data, and create private use 2nd party actions
• DMP allows marketers to work with multiple execution partners and across channels, including web, mobile, email,
offline and social
• One of the most scalable marketing DMPs with 200 billion activities generating more than 7.5 trillion outputs per month
• 3 of the Top U.S. Wireless Telcos
• 3 of the Top U.S. Retailers
• 3 of the Top U.S. Banks
• 3 of the Top Global Travel Brands
• 3 of the Top Technology Providers
…All Rely on DMPs to
Maximize their Marketing Spend
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• Access to the largest aggregation of
licensed 3rd party data providers
available anywhere
• Provides customers more than
30,000 data attributes including
intent, B2B, past purchases,
geo/demo, interest/lifestyle, branded
and qualified demographics
• Over 700 million global profiles
• More than 200 data providers
• 200+ customers across multiple
industries
Audience Data Marketplace for Digital Marketers
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Tracking Trends for 2016
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Combined, US programmatic direct and private
marketplace spend accounts for:
43% of US
programmatic
digital display
ad spending in
2015
A projected
58% in 2016
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2. Longstanding concerns about inventory
quality will finally be addressed
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3. Interest and talk around programmatic TV will
far outweigh investment
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Programmatic is more apt to come to TV in
stages vs. widespread adoption
Addressable TV
Linear TV
– Spot & scattered
– Upfront & national:
Data-driven
– Upfront & national:
True automation
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4. Where programmatic will make gains is with
connected TV and over-the-top (OTT) video
“ This year, we’ll see real
auctions running inside of many of
the apps that sit inside your Roku,
your Amazon Fire or your Apple TV.”
—Jeff Green, CEO of The Trade Desk
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5. As other devices and screens enter the mix,
expect programmatic to play a significant role
© 2015 eMarketer Inc.
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Key Takeaways:
Programmatic has tipped the scale on digital display ad
spend this year
Mobile was and will be a driving force
Programmatic direct and private marketplaces will draw
new ad dollars and from RTB and open market places
Improvements to ad quality will become mandatory
2nd
and 3rd
party Data will continue to prove critical
Programmatic buying is coming to TV and wearables,
but 2016 won’t be the breakthrough year