You Say Potato, I Say Programmatic Direct - Simplifying Trends in Today's Digital Advertising...

1!

What does it all mean?!

A Brief Introduction!

Are You Smarter than an Average American?!

2! Source: LA Times!

What is HTML?!a) Texting abbreviation for “hot tamale”!b) A language used to create websites!c) A sexually transmitted disease!

A recent study found that Americans are lost when it comes to tech-related terms. !

Are You Smarter than an Average American?!

3! Source: LA Times!

What is a Motherboard?!a) The deck of a cruise ship!b) a circuit board that holds many of the key components of a computer!c) The process by which one is abducted onto an alien aircraft!

A recent study found that Americans are lost when it comes to tech-related terms. !

Digital Media’s Biggest Tent!

4!

600+!leading media companies responsible for selling 86% of US online advertising.!

Programmatic and Native: Understanding the importance of both sides of the barbell!

5!

The Programmatic Evolution!

6! www.iab.net/programmatic!

Real time bidding allows different ads to be shown to different users!

7!

Undeniable growth and potential in an automated marketplace!


The Big Bang: it began with ad networks!


As much as you

can!

The rest!


Increasingly used to transact broader range

of inventory, higher value inventory, for audience targeting,

and business automation!

Then! Now!

Business rules & practices stem from

origin to clear remnant inventory typically at

low value!!

Enter the Exchange…!

Who Makes the Auction Happen?!

11!

Publisher! SSP!

Sell Side!

DSP! Trading Desk! Agency!

Buy Side!

The exchange!

Brand!

Auctioneers! Bidders!

www.iab.net/programmatic!

Panelists: Has your organization pursued an

auction based approach to media buying/selling? Are you likely to do so within

two years?!

85%

72%

Adve

rtise

rs!

Publ

ishe

rs!

Today!

91% 83%

Adve

rtise

rs!

Publ

ishe

rs!

In Two Years!

Auction based approaches have been widely adopted...!


More effectively

target consumers

across digital properties!

0% 20% 40% 60%

What objectives are driving your organization’s interest in programmatic

approaches? !

Top responses among panelist groups!

Advertisers!

Publishers!

Improve operational efficiency!

… Though interests differ between buyers & sellers!


0% 20% 40% 60%

What does “programmatic” mean to you? !

Percent of panelists who mentioned each in their “top 3”!

Auction-based approach to media buying!

Machine-driven

automation!

Real-time bidding (RTB)!

Programmatic focus is on automation & auction!


Workflow automation!

Auction based buying!

What we talk about when we talk about programmatic!


0% 10% 20% 30% 40%

Which pain points are inhibiting your organization’s adoption of programmatic

approaches? !

Advertisers!

Resistance from Current

Process Owners!

Brand Safety Issues!

All Panelists!

Some organizational hurdles still hindering adoption!


1 Building transparent & fair marketplace!

2 Marketplace education and training!

3 Standardization of definitions, terminology, and sharing best practices!

4 Making Programmatic work for brands!

Challenges to making programmatic premium!


1  Different expectations of “value” of inventory!

2  Difficult to accurately forecast, optimize inventory across channels and do yield management!

3  Deals not clearing due to limited transparency!

4  Fragmented “marketplace” on guaranteed deals!

5  Limited inventory transparency through auction!

Concerns over transparency are a key bottleneck!


Overcoming internal organizational challenges for publishers!

19!

Stage 1- Operations focused •  Build internal ops

capability to offer programmatic sales

Stage 2 – Developing internal sales capabilities •  Start to build

programmatic sales capability & comp structure

Stage 3 –Internal consultants for programmatic •  Programmatic

team becomes hub for all programmatic sales with multiple sales teams generating leads

“Programmatic ad buying has a problem: The publisher commission structures are impeding adoption”

Barry Lowenthal, President, The Media Kitchen!

Future Stages!•  Relationships matter more than ever with sales people to focus on higher-value add

activities!•  Will require continued education & evolving comp models!

www.iab.net/programmatic!

Educate and Unite the Industry Digital Media Sales Certification!

20!

Educated Sales Force = More Sales!

Tool for Recruitment and Professional

Development!Invest in Your Human Capital!

Competitive !Advantage!

•  More than 2,000 have registered for the program!•  Companies like Yahoo!, AOL, Collective and IDG have committed to

certifying their entire sales teams!•  A number of companies (24/7 Media, Trial Retail Media and About.com)

have made Certification part of their hiring and training processes!

•  Certification holders and their managers have received tremendous positive feedback about the program from the marketplace!

•  Every day sales professionals from leading companies across the country are signing up to take the exam!

1 Brand safety, quality, fraud & trust!2 Open RTB technical standards!3 Automation technical standards!4 Data uses and standards!5 Programmatic & Video, Audio and Mobile!6 Measuring Market Size (Research study)!7 Going Global Study (Research study)!

Other IAB areas of activity!


Buzzword Breakdown: Native Advertising!

22! http://www.iab.net/nativeplaybook!

Native Advertising:Setting the Stage!


The Core Six “Native” Ad Products!

1.  Search Units!2.  In-Stream Ads!3.  Recommendation Widgets!4.  Promoted Listings!5.  In-Ad (IAB Standard) Units!6.  Custom/Can’t Be Contained!

There are six type of ad units currently being sold in the marketplace as native advertising.!

http://www.iab.net/nativeplaybook!

In-Feed!


Paid Search!


Recommendation Widgets!


Promoted Listings!


In-Ad (IAB Standard) with Native Element Units!


Custom/Can’t Be Contained!


The Core 6 Questions Marketers Should Ask (yes, I realize there are only 5 here)!


Native advertising can blur the line between editorial and branded content!


IAB Native Advertising Recommended Disclosure Principles!

1) Use language that conveys that the advertising have been paid for, thus making it an advertising unit, even if that unit does not contain traditional promotional advertising messages!2) Be large and visible enough for a consumer to notice it in the context of a given page and/or relative to the device that the ad is being viewed on!

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l  Native advertising represents a significant new category of spending and thus revenue opportunity!

l  It is also just another display product!

l  Premium publishers have incredible value to offer marketers who need to add “brand as publisher” skills to their campaign ones!

l  Differentiate via content expertise, helping “brands be publishers”!

l  Adopt two-prong strategy of custom at super premium plus in-feed at scale!

l  Be vigilant to charge for costs of native creation!

l  Use IAB Native Playbook to differentiate your offerings!

Implications! Best Practices!

Native Advertising!

http://www.iab.net/nativeplaybook!

The End!

35!

Thanks to you all!!Q&A!!

Follow me @jvanullen!

You Say Potato, I Say Programmatic Direct - Simplifying Trends in Today's Digital Advertising...

Marketing

Transcript of You Say Potato, I Say Programmatic Direct - Simplifying Trends in Today's Digital Advertising...