Programmatic at TMK
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Transcript of Programmatic at TMK
COME SEE: PRIVATE MARKETPL ACES
F e b r u a r y 2 4 , 2 0 1 5
P R O G R A M M AT I C AT T M K
© The Media Kitchen 2014 all rights reserved
Started with Programmatic centralized and out-sourced to our partner trading desk
Performance play; however, TMK desired deeper insights and transparency
Introduction of technology made Programmatic buying more accessible Self-service tools empower advertisers to take control of programmatic
Moving Programmatic in-house decentralized buys and provided flexibility Transparency into costs and performance; Private Marketplace deals
could be negotiated as part of overall digital buy
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OUR PROGRAMMATIC STORY �
© The Media Kitchen 2014 all rights reserved 4
OUR PROGRAMMATIC TEAM PHILOSOPHY �
The majority of media will be bought programmatically through self-service platforms, which makes media buying more transparent, flexible, and efficient. This technology requires a new type of media professional. With insight into this evolution, The Media Kitchen has developed the Programmatic Media Buying Team. The Programmatic Media Team oversees 3 major areas: • Programmatic RTB/PMP (includes banners, video, and mobile) • Paid Search (e.g., Google and Bing) • Paid Social Media (e.g., Facebook, Twitter, LinkedIn)
P R O G R A M M AT I C O V E RV I E W
© The Media Kitchen 2014 all rights reserved
0%
20%
40%
60%
80%
100%
2011 2012 2013 2014 2015 2016 2017
Programmatic Non-Programmatic
Source: eMarketer: “US Display Ad Spending Share, by Type” 2013 hFp://digiday.com/plaJorms/global-‐outlook-‐programmaLc-‐adverLsing-‐5-‐charts/
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PROGRAMMATIC FLIPPING THE MARKET �
The Programmatic ad market will grow from $12 billion in 2013 to more than $32 billion in 2017
Source: ANA
PROGRAMMATIC �
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2014 WORD OF THE YEAR �
RTB GOES MAINSTREAM
1994� 1996� 2005� 2007� 2011�2000�
DSPs LAUNCH
AD EXCHANGES LAUNCH
ADWORDS LAUNCH
AD NETWORKS LAUNCH
2014�
PRIVATE MARKETPLACES
© The Media Kitchen 2014 all rights reserved
DIGITAL ADS LAUNCH
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DIGITAL A D R E V O L U T I O N �
E V O L U T I O N O F P R I VAT E M A R K E T P L A C E S
© The Media Kitchen 2014 all rights reserved
ADVERTISER: • Buy as much quality
inventory as possible at low cost • Negotiate with Publishers to achieve desired plan
PUBLISHER: • Sell as much inventory as possible at high cost • Create value for inventory
through content and scarcity
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ADVERTISER AND PUBLISHER RELATIONSHIP �
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Thus, significant amounts of unsold inventory jeopardized the inventory “scarcity” tenant that Publishers held dear
Unsold Inventory
Sold Inventory
Web
Tra
ffic
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AS THE WEB EXPANDED �
It created an increased amount of site traffic, while advertiser growth did not keep pace
© The Media Kitchen 2014 all rights reserved 12
UNSOLD INVENTORY = OPPORTUNITY �
The growth of the web left Publishers with unsold inventory. Programmatic offered Publishers an opportunity
© The Media Kitchen 2014 all rights reserved
Advertiser
Publisher
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PROGRAMMATIC INITIALLY FAVORED ADVERTISERS �
© The Media Kitchen 2014 all rights reserved
Through this model, Publishers lose direct contact with advertisers and agencies
Advertiser Publisher
Second Price Auction
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SYMBIOSIS DISRUPTED �
Inventory sold across the exchanges at variable costs and to unknown advertisers
© The Media Kitchen 2014 all rights reserved
Advertiser Publisher
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PUBLISHERS CONTROL TRANSPARENCY �
However, knowledge about the specific inventory won is often obfuscated
© The Media Kitchen 2014 all rights reserved
56%
17%
23% Of Publisher impressions
are not viewable
Of Programmatic display ads are viewed by bots
Of online video ads are viewed by bots
Sources: hFp://www.bloomberg.com/news/2014-‐12-‐09/robots-‐not-‐humans-‐fake-‐23-‐of-‐web-‐video-‐ad-‐views-‐study-‐finds.html ANA (hFp://blogs.wsj.com/cmo/2014/12/09/5-‐things-‐marketers-‐need-‐to-‐know-‐about-‐ad-‐fraud/) 16
MONETIZATION OF INVENTORY �
The open exchange encouraged fraudulent traffic, and poor placement viewability as web-crawlers and bots attempted to
exploit advertising to generate publisher revenue
© The Media Kitchen 2014 all rights reserved
Private Marketplaces put the responsibility for inventory quality on the Publisher, allowing them to lock in advertiser
dollars and a pre-agreed price
QUALITY
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PRIVATE MARKETPLACE AS A STABLIZING FORCE �
© The Media Kitchen 2014 all rights reserved 18
EVOLUTION OF PRIVATE MARKETPLACES �
A Private Marketplace is a customized, invitation-only marketplace where Publishers make their inventory
and audiences available to a select group of buyers.
Unlike a direct buy, which can be labor intensive for both Publishers and Advertisers, buyers in a PMP use programmatic-media
buying controls to purchase from Publishers.
DefiniLon via RockeJuel hFp://rockeJuel.com/webinars/what-‐is-‐a-‐private-‐marketplace
© The Media Kitchen 2014 all rights reserved 19
WATERFALL �
Publisher Direct �
Automated Guarantee �
Preferred Deal�
Private Auction�
Open Exchange �
© The Media Kitchen 2014 all rights reserved
WIN FOR ADVERTISER: • Choose inventory with specific
partners • Control of serving parameters and
audience (time of day, day of week, first and third party audience data, etc.)
• Decrease issues pertaining to viewability and fraud
WIN FOR PUBLISHER: • Can sell more inventory (fill
rates) at desired or preferred CPMs
• Fill inventory with preferred Advertisers rather than just the highest bidder
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PRIVATE MARKETPLACES ARE A WIN-WIN �
© The Media Kitchen 2014 all rights reserved
Preferred Deals
Private Auction
Pricing # of Buyers Description Publishers
One Publisher
Fixed Price
One Advertiser
Negotiated, fixed price; completed through
self-serve tool
2nd price auction with select group of buyers; auction with set floor;
through publisher-owned DSP 2nd Price Auction w/
Floors
One Publisher
Select Advertisers
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TYPES OF PRIVATE MARKETPLACES �
RFP PROCESS
© The Media Kitchen 2014 all rights reserved
Crafting Proposal�
Negotiating Plan�
Execution of Buy�
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RFP PROCESS: OVERVIEW �
© The Media Kitchen 2014 all rights reserved
Media team develops RFP
Media team issues RFP
Publisher submits proposal
Should include information such as… • Are Programmatic and Publisher Direct considered one digital plan? • Can Programmatic and Publisher Direct inventory overlap? • Is there specific inventory desired? • Are there inventory quality standards (viewability and fraud)? • Is there specific targeting required (audience, geo, etc.)? • What Programmatic tactic is preferred (PMP or Private Auction)?
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RFP PROCESS: CRAFTING A PROPOSAL �
© The Media Kitchen 2014 all rights reserved 25
RFP PROCESS: CRAFTING A PROPOSAL �
For Publisher: • Send RFP and any additional documentation explaining campaign (i.e. excel doc with specific proposal format)
Media team develops RFP
Media team issues RFP
Publisher submits proposal
© The Media Kitchen 2014 all rights reserved 26
Placement Name Unit Sizes Start Date End Date Cost Structure
Net/Gross Rate
Planned Impressions
Planned Cost
Site – Preferred Deal PMP_728x90 728x90 1/1/15 4/30/15 CPM $8.00 TBD
$100,000
Site – Preferred Deal PMP_300x250 300x250 1/1/15 4/30/15 CPM $8.00 TBD
Site – Preferred Deal PMP_300X600 300x600 1/1/15 4/30/15 CPM $8.00 TBD
Site – Publisher Direct_300x250 300x250 1/1/15 4/30/15 CPM $16.00 TBD
Site - Publisher Direct_728x90 728x90 1/1/15 4/30/15 CPM $16.00 TBD
� � � � � - � - �$100,000
RFP PROCESS: CRAFTING A PROPOSAL �
Media team develops RFP
Media team issues RFP
Publisher submits proposal
© The Media Kitchen 2014 all rights reserved
Media team negotiates RFP terms with Publisher
Media team and Publishers discuss details of Programmatic prior to paperwork
Media team provides IO and T&Cs based upon agreed plan
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RFP PROCESS: NEGOTIATING PLAN �
Terms of Negotiation: • Price floor and/or fixed CPM • Packages and inventory • Spend flexibility • Any viewability and/or fraud percentages to be considered
© The Media Kitchen 2014 all rights reserved 28
RFP PROCESS: NEGOTIATING PLAN �
Details Needed: • TMK Team DSP • Publisher SSP • Any site pixeling opportunities for Publisher • Reporting options
Media team negotiates RFP terms with Publisher
Media team and Publishers discuss details of Programmatic prior to paperwork
Media team provides IO and T&Cs based upon agreed plan
© The Media Kitchen 2014 all rights reserved 29
RFP PROCESS: NEGOTIATING PLAN �
Signed document: • Holds Publisher accountable for inventory type, quality and floor pricing • Holds Advertiser accountable for investment level required to achieve rates
Media team negotiates RFP terms with Publisher
Media team and Publishers discuss details of Programmatic prior to paperwork
Media team provides IO and T&Cs based upon agreed plan
© The Media Kitchen 2014 all rights reserved
Media team to inform TMK PMG of upcoming campaign
Publisher works with SSP in setting up inventory and Deal IDs
Post-launch maintenance and communication
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RFP PROCESS: EXECUTION OF BUY �
For TMK PMG team: • Media team to complete TMK PMP In-Take Doc and share with TMK PMG team • Once TMK PMG team has a chance to review, schedule internal meeting to discuss campaign next steps
© The Media Kitchen 2014 all rights reserved
Media team to inform TMK PMG of upcoming campaigns
Publisher works with SSP in setting up inventory and Deal IDs
Post-launch maintenance and communication
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RFP PROCESS: EXECUTION OF BUY �
Deal IDs are a string of characters that pass the planned inventory between the DSP and SSP • Without Deal IDs, publishers and platforms cannot always allocate client spend more efficiently or reserve inventory
© The Media Kitchen 2014 all rights reserved 32
RFP PROCESS: EXECUTION OF BUY �
Post-Launch Maintenance (Media and Programmatic teams) • Are Deal IDs receiving adequate amount of impression volume? • Do CPMs need to be changed based on performance or delivery? • Is the program performing according to prearranged quality standards and KPIs?
Media team to inform TMK PMG of upcoming campaigns
Publisher works with SSP in setting up inventory and Deal IDs
Post-launch maintenance and communication
MANAGING DEALS
© The Media Kitchen 2014 all rights reserved
Private Auction
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PRIVATE DEAL VS. PRIVATE AUCTION �
Preferred Deal
© The Media Kitchen 2014 all rights reserved
Bid Optimizations can be implemented based on: • Site Category • Time of Day • Day of Week • Browser (and Browser version) • Frequency • Creative Size • Device Type • Recency
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MANAGING DEALS �
© The Media Kitchen 2014 all rights reserved 36
OPTIMIZATION EXAMPLES �
Vanguard FAS Private Auction
Vanguard Retail Preferred Deals
THANK YOU!