Programmatic 101 webinar slides ck 032714 final

Editor's Notes

• #19: There is significant confusion in the marketplace around the meaning of terms like “programmatic”, “RTB”, “programmatic direct”, “programmatic premium”, and other verbiage, often being used interchangeably. To help clarify – IAB worked with publishers to set out key terms – mapped based on 2 characteristics – how the price was set (ie auction based or fixed price) and the type of inventory (reserved/unreserved)
• #27: Started by thinking about what distinguishes them. Ultimately we boiled this down to 3 things – what type of inventory we are talking about (reserved vs unreserved), what type of pricing (fixed vs auction) and who is involved (1-1, 1-few, 1-many)Whilst there are lots of other issues like prioritization, Deal ID etc they can apply differently to each of the transaction types“Automated Guaranteed”This type of transaction most closely mirrors a traditional digital direct sale. The deal is negotiated directly between buyer and seller, the inventory and pricing are guaranteed, and the campaign runs at the same priority as other direct deals in the ad server. The programmatic element of the transaction that differentiates it from a traditional direct sale is the automation of the RFP and campaign trafficking process. Negotiation through to fulfillment can be, should the publisher desire, completed within the technology platform providing the automated reserve functionality. “Unreserved Fixed Rate”Transactions that fall into this category exist within an exchange environment, but have pre-negotiated, fixed pricing (CPM, CPC, etc.) Typically, Unreserved Fixed Rate deals sit at a higher priority than the Open and/or Invitation-Only Auction. A deal of this type typically is necessitated by advertiser demand for a more predictable offering within the exchange space.“Invitation-Only Auction”This auction type is very similar to an Open Auction except a publisher restricts participation to select buyers/advertisers via Whitelist/Blocklist. A publisher may choose to not participate in an Open Auction and only run an Invitation-Only Auction.  It is important to note that an Invitation-Only Auction is an auction and buyers will be expected to bid on inventory.  A publisher may choose to expose different information such as transparency or data, through the use of Deal IDs or Line Items to add value to this select group of buyers while participating in this tactic.“Open Auction”An Open Auction is the Wild West of auctions.  A publisher will generally allow any and all buyers to participate in accessing their inventory through this tactic.  Usually there is no direct relationship with the buyer.  Publishers may choose to use Blocklists and floor pricing to prevent advertisers from gaining access.  On the advertiser side they are often unaware of what publisher they are buying on.  DSP’s usually present a list of exchanges/SSPs to the buyer that they automatically opt into. Buyers may not know or care that they are buying a publisher’s inventory. Because of this, publishers can participate in the Open Auction on a blind basis.