Programmatic 101: What All Publishers Need to Know (Digiday WTF Programmatic for Publishers - 4/30/15)
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The document provides an overview of programmatic advertising, detailing its definitions, components, and the evolution of market dynamics involving buyers and sellers. It emphasizes the role of technology in facilitating real-time bidding and highlights the changing landscape where agencies reclaim control over programmatic budgets. Key actors in the programmatic ecosystem are outlined, as well as the benefits and challenges of utilizing programmatic strategies in advertising campaigns.
Programmatic 101: What All Publishers Need to Know (Digiday WTF Programmatic for Publishers - 4/30/15)
- 2. agenda 2 The Basics >β― Definitions >β― Why? Landscape >β― Market Progression >β― Actors & Acronyms >β― Media Buying Publisher POV >β― Deal Anatomy & Construction >β― Deal Types >β― Key Takeaways
- 4. terminology: the painful stuff RTB Real Time Bidding βthe 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 βpublisher biased exchange. PMP Strategy to create a premium sales channel using RTB to execute direct buys, aka Private Exchange. Deal ID RTB indicator/βFlagβ to execute PMP buys for direct deals between publishers & buyers. 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.
- 5. βprogrammaticβ defined The Meredith Definition 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 human input to create rules for both the buy and sell side. Some examples of programmatic: Ad Networks Search Real Time Bidding Automated Guaranteed
- 6. 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 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
- 8. 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; SSPβs 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
- 9. actors & acronyms Comparative analysis of the actors AdNets Started as budget aggregators Now seen as in agency specialists No technology Semi transparent βBuy thru Usβ! Started as RTB tech platforms for Demand Migrating to become operational platforms (DMP/ DSP/Workflow) All technology Fully transparent βAutomation solves all!β Started (and still are) large aggregated pools of sellers and buyers transacting via RTB All technology Fully transparent βLiquidity Rocks!β Started as perceived pub tool Now seen as a demand tool No technology Non-transparent margins "We have publisher exclusives" or "Uh Oh" ATD's DSPs Exchanges Started as RTB tech platforms for Pubs Migrating to become operational platforms (DMP/ DSP/SSP/ Workflow) All technology Semi transparent βTechnology + strategy = pub successβ Started as tech platforms to collect and manage data Migrating to become execution platforms for using data All technology Fully transparent βYou canβt live without usβ SSPs DMPs
- 10. MARKETPLACE actors & acronyms What role each plays in the ecosystem 10 ADVERTISER/AGENCY PUBLISHER DSP ADVERTISERADSERVER SSP AGENCY TRADING DESK DMP PUBLISHERADSERVER SERVICES DMP
- 11. players Leading programmatic premium buying HoldCo ATD DSP Clients
- 12. actors & acronyms How each fits into the digital planning/buying universe now With whom, and how, do we interact? DSP (Direct Buying)Obs & Strats Media mix planning/ Target development Media specialist/ Budgeting & Planning Digital Media Selection MediaPlanningProcess Client Marketing Agency Strategy & Planning Planning Agency Broadcast Out of Home Print AOR Digital AOR Sponsorship Agency Programmatic Agency (ATD) Programmatic budgets typically split here AdNets typically bought here
- 13. actors & acronyms How each fits into the digital planning/buying universe β where it is going in future With whom, and how, do we interact? Obs & Strats Media mix planning/ Target development Media specialist/ Planning & Budgeting Digital Media Implementation MediaPlanningProcess Client Marketing Agency Strategy & Planning Planning Agency Broadcast Out of Home Print AOR Digital Media Planning Specialists embedded within implementation DSP (Direct Buying) Sponsorship Search, Programmatic, Mobile, Video
- 14. the agency reclaims budget control Programmatic Budgets climb as % of total Digital Spend >β― Half of Senior Ad Buyers allocate between 31-60% of digital budget to programmatic >β― By 2016, programmatic will be 65% of US Digital Spend Programmatic Budgets determined at Agency Level >β― Agencies have reclaimed control of programmatic budgets >β― Agency Trading Desk Model is challenged i.e. Vivaki >β― Agencies have created programmatic teams in-house As Agencies drive budget, demand increases for innovative products >β― Viewability >β― Rising Stars >β― Guaranteed buys (thru AG or PMP G)
- 15. Advertisers and Agencies are putting a stake in the ground to fund and resource programmatic initiatives in house Retail + CPG + Financial Sectors = 52% of all spend in Q2 2014 scoping the market
- 17. how does a publisher manage its business? >β― Price >β― Delivery >β― Sell thru (STR) >β― Revenue >β― Price >β― Delivery >β― Sell thru (STR) >β― Revenue >β― Yield >β― Fill >β― Transparency >β― Data Leakage & Protection >β― Viewability >β― Discoverability Transaction Automation RTB World Before RTB
- 18. PREMIUM DIRECT STANDARD DIRECT OPEN PROGRAMATIC >β― High CPM and yield >β― Direct Demand >β― Non Standard >β― High Volume >β― Guaranteed Delivery >β― Prioritized remnant >β― Repackaged media >β― Undifferentiated media >β― Demand-Supply imbalance prioritization in the ad server a.k.a. βThe Waterfallβ PREMIUM DIRECT STANDARD DIRECT PREMIUM PROGRAMMATIC OPEN PROGRAMATIC >β― Sponsorship >β― Custom Executions >β― Context Targeting >β― Audience Targeting >β― ROS & RON >β― PMP >β― SSP >β― Ad Nets Typical Publisher
- 19. layers of programmatic 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 ProgrammaticDirect Premium at scale, across all buying channels
- 20. deal constructionComponents in a deal and how each contributes Sponsorship Ideation for Impact Context Scale within environment Audience Targeting Driving awareness with the right person Programmatic Premium/PMP High quality, efficient audience and contextual scale RON Media Audience Extension Additional quality scale for efficiency (as needed) Audience Targeting & ROS ROC Scale within environment RON Quality Scale across environments Use PMP to replace ROS & RON KEY BENEFITS TO CLIENTS: Ability to choose , maximizes spend, relieves ops burden, lower net price KEY BENEFITS TO PUBLISHER: Boost direct, bigger deals, more PMP volume, relieves ops burden
- 21. deal types & anatomy HYBRID PARALLEL PROGRAMMATIC ONLY PROGRAMMATIC MIGRATION Description Deal that combines Programmatic Premium and Direct in one buy/ budget Independent sales initiatives with direct and programmatic teams (coordinated) Deal with existing or new client where no direct business is transacted Transition of deal terms and execution from direct to Programmatic Premium Proactive VS Reactive Proactive (pitched) or Reactive (RFP) Proactive Highly Proactive Reactive Who Leads Direct Seller and/or Programmatic seller Both Programmatic Seller Direct Seller pre-transition, Programmatic Seller post Deal Content Direct: sponsorship, takeovers, unique media unavailable to PMP Programmatic: PMP inventory Similar to Hybrid deal PMP and/or AG products All standard media that can be migrated
- 22. what did he say?? βProgrammaticβ is an evolving set of capabilities and players >β― What we have today will be outdated in 6-12 months With Programmatic Premium, Sellers and Buyers are more aligned >β― Transparency, Operational efficiency, effective reach, supporting the marketer are areas of alignment Spend your time with agency partners and client >β― Tech platforms are still buying evergreen deals, but that isnβt where the money is Programmatic should not just be about yield or price >β― Leverage in your strategy for client success >β― Learn how to work with Demand Side Decisioning >β― Use programmatic capabilities as a learning playground: win fast, fail fast The Β Basics Β ββ― Deο¬ni&ons Β ββ― Why? Β Landscape Β ββ― Market Β Progression Β ββ― Actors Β & Β Acronyms Β ββ― Media Β Buying Β Publisher Β POV Β ββ― Deal Β Anatomy Β & Β Construc&on Β ββ― Deal Β Types Β ββ― Key Β Takeaways Β Β Β Β Β Β
- 23. PREMIUM DIRECT PREMIUM PROGRAMMATIC STANDARD DIRECT OPEN PROGRAMATIC >β― Sponsorship >β― Audience Targeting >β― Custom Executions >β― PMP >β― Targeted Media >β― ROS >β― RON >β― SSP >β― AdNets prioritization in the ad server a.k.a. βThe Waterfallβ Meredith PREMIUM DIRECT STANDARD DIRECT PREMIUM PROGRAMMATIC OPEN PROGRAMATIC >β― Sponsorship >β― Custom Executions >β― PMP >β― SSP >β― Ad Nets Typical Publisher >β― Context Targeting >β― Audience Targeting >β― ROS & RON
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