TA - ThinkLA Class - 3.7 · Transparency in Programmatic Granular Optimizations Increased...
Transcript of TA - ThinkLA Class - 3.7 · Transparency in Programmatic Granular Optimizations Increased...
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Smart Technology:Programmatic’s Promised Efficiency
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History of Advertising
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What isprogrammatic?
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Programmatic buying is the process of buying media in an automated fashion
through digital platforms.
Programmatic /ˌprōɡrəˈmatik/ adjective
This automated, real-time bidding process replaces the traditional use of
RFPs, negotiations, and insertion orders to purchase digital media.
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3 Primary Options for Buying Digital…
Publisher Direct
Ad Network
DSP
• Guarantees spot & content• Custom units & SOV
• Limited scale & targeting• Scheduled, manual buys• Dozens of IOs to manage
• Greater scale & targeting• Lower cost for inventory• ‘Exclusive’ access
• Black-box buy• Non-transparent margin
• Maximum reach & scale• Full transparency• Flexibility & decisioning
• Contract vs. IO based• Usually self-service
Upside Downside
1
2
3
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Workflow & Billing InefficienciesHaunt the Direct Model of Buying
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Cut out workflow, setup, reporting, & billing inefficiencies associated with multiple ad
networks and publisher IOs on a plan through a holistic, omnichannel buying platform.
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The power of data & decisioningacross publisher inventory
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Programmatic in its simplest form is about choice.
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Key Components of Programmatic Buys
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Bra
nd /
Adv
ertis
er
Age
ncy
/ Tra
ding
Des
k
DSP
DMP
RTB Marketplace SSP
Publisher Ad Server
PublisherMeasurement & Verification
Ad
Serv
er /
DC
O
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Bra
nd /
Adv
ertis
er
Age
ncy
/ Tra
ding
Des
k
DSP
DMP
RTB Marketplace SSP
Publisher Ad Server
PublisherMeasurement & Verification
Ad
Serv
er /
DC
O
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RTB & Auction Mechanics
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Choosing the Right User with DecisioningExample CPG AdvertiserTarget: W25-54, HHI $75k+, consuming
cooking or home & family content
Auction 1CPM = $4
W45, HHI $100k
Auction 2CPM = $1M21, student
Auction 3CPM = $3
W30, HHI $50k
User 1 User 2 User 3
RTB provides a mechanism to efficiently buy targeted ads in real
time, on an impression-by-impression basis.User 1
$2.01 CPM
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Myth 1:Transparency
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The Association of National Advertisers voted “transparency” as 2016’s marketing word of the
year.
Market Demands
Why every digital advertiser should demand transparency?
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Advertiser
Market Demands Transparency
At this year’s IAB Leadership Summit, P&G’s brand chief, Marc Pritchard laid into Google and Facebook’s ‘walled gardens’ and demanded transparency from the digital supply chain telling attendees, “We need better advertising to drive growth, enabled by media transparency, to drive a clean and productive media supply chain.”
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Market Demands Transparency
Advertiser Publisher
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• Extremely high margins
• Limited reporting
• Traffic Arbitrage is out of
control
Market Demands Transparency
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Transparency in Programmatic
Granular Optimizations Increased decisioning power gives you the ability to make
optimizations in one place
Transparent ReportingTransparent reporting available in
real-time, across all campaigns and channels
Monthly BillingCut back on IOs & receive one
invoice with all costs clearly and transparently laid out
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Transparency AND Performance
• Clear idea of budget allocations:
• % of take rate
• % of ad serving
• % of data cost
• % of media buying
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You Are Empowered
1. Trim Inventory that doesn’t perform
2. Pay the Right Price
3. Spend money where it works
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Powerful Levers
Ad Format
Fold Placement
Creative
Device Type
Operating System
Browser
User Day of Week
User Hour of Day
Recency
Sales Cycle
Frequency
Supply Source
Site Category
Site
Audience
Data Elements
Country
State/Region
DMA
City/Town
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Transparent Reporting
Data / DMP Site / SSP
Cross-DeviceTargeting
1st Party Data 3rd Party Data
• E-mail lists• CRM data stripped of PII• Pixel-based (ex: site visit)
• S2S from other DMPs• Mobile Device IDs• Set-top-box TV data
Example 1st & 3rd Party Data:
Site & SSPLanguage Browser / OS
Mobile Carrier
Device Types
Device Make & Model
Geography / IP Address
Ad Format / Ad Size
Video Size & Quality
Time & DOW
Recency & Frequency
Viewability & Fold
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DSPs respond with different bids based on how they value that individual impression
00:00:00.0007
3
3rd party data: I offer $3.00 because the visitor is a 25-54 year old mom reading premium news content
1st party data: I offer $2.20 because the visitor abandoned my shopping cart 2 days ago
Geo data from ad exchange: I offer $1.80 because the visitor lives within 3 miles of my restaurant
$3.00
$2.20
$1.80
Ad exchange selects highest paying advertiser and sends corresponding creative to publisher website
00:00:00.0009
4Visitor sees creative from highest paying advertiser
00:00:00.0010
5
Ad Exchanges makes details of the impression spot available to buyers, including: geo, site, device, format
00:00:00.0002
2Anonymous User 457 visits website and publisher sends request to fill one 300x250 ad spot
00:00:00.0000
1
AuctionUser 457
winning bid = $2.21
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Man AND Machine
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A transparent model benefits advertisers.
Actual Media Cost$1.00 CPM
DSP Markup – Fixed % of Spend$0.15 CPM
Upside For Advertisers
Agency Markup
Actual Media Cost$1.00 CPM
Ad Network Markup[Non-Transparent Margin]
$1.00 CPM
Agency Markup
Ad Network ModelAd Network Gets Lion’s Share
Transparent Margin ModelAdvertiser Gets Lion’s Share Plus Lower
Costs For Clients
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Myth 2:Inventory Quality
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Open Marketplace
Private Marketplace
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Premium, Relevant 1st & 3rd Party Deal
Test pubs without IOs
Reporting by Deal ID
EXAMPLE DEALS
Deals for every format
STRATEGY: increase awareness and site traffic by aligning ads with premium publishers
DEVICES & FORMATS: mobile, tablet, display, video, desktop
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Myth 3:Scale
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A single SSP provides access to many ad networks and publishers…
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SSPs help brands access the same inventory in an automated, decisioned way.
Test out pubs without IOs, while striking deals with
the most valuable inventory sources
Save time & money with negotiations, setup, billing,
workflow
Fully control targeting –reach the right user for the
right price
Holistic reporting across different sites, deal types,
channels
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Omnichannel
Television, Broadcast TV,Connected TV
Online Video Display
Mobile/Tablet NativeAudio
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Display Inventory Partners
Mobile InventoryPartners
Video Inventory Partners
Private MarketplaceContracts
Third Party DesktopData Partners
Third Party Mobile Data Partners
Third Party CrossDevice Data Partners
32 24 20 2200+
65 28 4VIEWABILITY
PARTNERSMoat
Integral Ad ScienceDouble Verify
Peer 39
CONTEXUAL/BRANDSAFETY PARTNERS
Integral Ad ScienceDouble Verify
Peer 39Grapeshot
MOBILE APP EVENTTRACKING
AppsflyerKochavaAdjustTune
A Scaled Marketplace
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Myth 4:Brand Safety
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3 Primary Options for Buying Digital
Publisher Direct
Ad Network
DSP
• Guarantees spot & content• Custom units & SOV
• Limited scale & targeting• Scheduled, manual buys• Dozens of IOs to manage
• Greater scale & targeting• Lower cost for inventory• ‘Exclusive’ access
• Black-box buy• Non-transparent margin
• Maximum reach & scale• Full transparency• Flexibility & decisioning
• Contract vs. IO based• Usually self-service
Upside Downside
1
2
3
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DSP Brand Safety Controls
SSP Contractual Obligations
Inventory Vetting & Domain Blocking
SitelistTargeting
Publisher Direct
Third Party Pre-Bid
Solutions
DSP Controls User Controls via DSP
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SSP Contractual Obligations
Build accountability language into SSP contracts
• Build accountability language in SSP Contracts
• Penalize SSP partners if contracts are violated
• Example obligations: Adult, COPPA Compliance, Discrimination (race, gender, etc.), Violence, etc.
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Automated and Manual Inventory Scan
Domain Blocking via SSP
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DSP Controls
• DSP Maintained Blacklist • Agency mandated Blacklists and/or
Whitelists• Advertiser mandated Blacklists and/or
Whitelists• Ongoing blocking based on delivery
Platform User ControlsSitelists
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Platform User ControlsDirect Programmatic Buying
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Platform User ControlsPre-Bid Brand Safety Technologies
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Myth 5:Media Channel
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A single-channel is only a piece of the pie—the
rest is missed opportunity.
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Programmatic is the full pie
Display Video Mobile Audio Native Email CTV
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The way consumers are engaging with advertising is drastically changing.
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Immersive formats for every one of your consumer’s lifestyles & habits
From audio and app-based TV apps, to mobile interstitials, in-feed, and pushdowns—your plan is much more than a banner ad.
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Think holistically about your ideal media mix—run complimentary
strategies.
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Influence Consumer Journey with Real-Time, Data Driven Precision
real-time insights &
optimizations bid factor algos minimize spend
waste
advanced data activation & look-alike
unified reporting
hyper-granular targeting
holistic 1-to-1 targeting
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DataProspecting
Mid-Funnel
Lower Funnel
High ImpactFormatsVideo Audio
ContextualBehavioralLookalikeNative
RetargetingCross-Device1st Party Extension
Strategies
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The Future of Programmatic
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“Programmatic buying is becoming more popular as marketers increasingly take an audience-centric approach to their display ad buys,” Lauren Fisher, eMarketer
Senior Analyst.
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The Future
• The future of the Internet will remain ad-funded.
• To thrive, it will require a more deliberate and thoughtful
approach to targeting and measurement than we have today.
• Our industry needs to work together to embrace industry-wide
transparency and viewability standards to combat poor media
supply chain practices.
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Trading Academy Program
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Appendix
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Fight & Prevent Online Fraud in 3 Steps
Leverage Historical Data• Apply learnings and data from
past activity to future decision-making to prevent fraud and malicious activity
Partner with Industry Leaders• Address fraud and nonhuman
traffic detection using both internal platform solutions and tools from DSP partners
Focus on Quality & Transparency• Apply learnings and data from
past activity to future decision-making to prevent fraud and malicious activity
Partner Solutions: Below are example Partners that provide fraud protection capabilities.
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PUBLISHER
$ $
$
DSP
v Bidding Variables: Geo, Frequency, Site, Time, Date
v Algorithmic Optimizationv Reporting & Insights
BID
DER
AD EXCHANGES / SSPs
MEASUREMENT & AD VERIFICATION
AG
ENCY
PRO
GRA
MM
ATIC
ARM
AUDIENCE
AD
SER
VER
Pre-Bid: Page Quality, Brand Safety, Contextual
Publisher Contracts & Direct Tags
PUB
LISH
ER A
D
SER
VERDCO
DCO
AD
VER
TISE
R’S
MED
IA IN
VES
TMEN
T
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A closer look at the importance of data…
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Bra
nd /
Adv
ertis
er
Age
ncy
/ Tra
ding
Des
k
DSP
DMP
RTB Marketplace SSP
Publisher Ad Server
PublisherMeasurement & Verification
Ad
Serv
er /
DC
O
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The internet is a BIG place.
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5 million Queries per Second.
300 million impressions per minute.
18 billion impressions per hour.
432 billion impressions per day.
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So how do we find Waldo in a sea of so much information?
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It can take up to 75% of a campaign’s flight and budget—this is not possible in short flights.
Most of this waste can be eliminated before a single impression is put into market.
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How?
Data.(Cookie & Device ID-based)
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Put data at the center of your plan.
1st Party Data(advertiser owned)
Active tags on sites, apps, events• Homepage visits, conversion, app download, clicks, video view
Offline data, CRM• Email lists, offline purchases, addresses, rewards card member
3rd Party Data(data partners create & own)
Online and offline collection methodology• Purchases, web browsing, public records, banks, in-app
Lookalike Modeling• Find 3rd party segments that look most like 1st party audience
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How Audience Data is Created: Web vs. App
How Data Elements are Built Identifiers
Cookie IDs• Unique to each Ad Tech company
• Requiring syncing• Cookies expire
Previous Web Behavior• Sites that you have visited
Previous Physical Location• Based on your real world location
WebAudience Data
AppAudience Data
Device IDs• Persistent (no syncing)• No limit lifespans
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Some primary data collection methodologies…
Current or previous mobile or IP location
Banks, credit cards, financial institutions
Web browsing activity, interests, & surveys
Online & offline retail purchases
SKU-level purchase info
Panel & research based
Set-top-box television data
Mobile activity & app ownership
Social media shares & activity
Public records & demographic info
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Use 1st party data to inform your entire buy.
A lookalike model shows you a group of users that exhibit traits most similar to known converters or valuable first party audiences – lookalike modeling positions your media to
reach the right user before a single impression is put into the market.
audiencegeography IP address browser / OS device type date / DOWtime of daysite / category
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Without pixels on your brand’s site, & audience targeting on the plan…
No cross-device targeting to other phones, laptops, tablets associated with your audience’s profile
No insight into user’s full path to conversion, or optimize to conversion or site visit events
Oversaturation to brand, issues with frequency caps Wasted budgets in learning phase
of campaign from not leveraging lookalike modeling
No retargeting clickers, video viewers, site visitors, and no sequential messaging