programmatic 101 webinar slides ck 032714 final

Programmatic 101 for Direct Sellers

31 March 2014

IAB

Questions?

Attendees should ask questions by typing into the Question box on the GoToWebinar user interface at any time during the presentations.

– We will create a queue and answer as many questions as possible following the presentations.

– Additional questions should be directed to Nicole Horsford, [email protected]

mailto:[email protected]

3

Agenda Introduction What is programmatic?

●Patrick Landi, Time Inc Selling programmatic

●Steph Layser, MailOnline Programmatic sales evolution

●Kate Ammann, Monster IAB Activities on Programmatic

●Carl Kalapesi, IAB Q&A

www.iab.net/programmatic

http://www.iab.net/programmatic

What is programmatic?

Patrick Landi, Time Inc

Programmatic Defined

Programmatic buying is the process of

executing media buys in an automated

fashion through digital platforms such as:

exchanges, trading desks, and demand-

side platforms (DSPs). This method

replaces the traditional use of manual

RFPs, negotiations and insertion orders to

purchase digital media

www.iab.net/programmatic5


Real Time bidding (RTB)Defined

eMarketer:

Real-time bidding (RTB) is a digital advertising technology that lets marketers buy and publishers sell display ads dynamically, in real time, on an impression-by-impression basis.

Scott Spencer, Director of Product Management, Ad Exchange, Google

"Real time bidding (n);

1) A technology introduced in 2009 to make it easier for ad networks to buy only the inventory they want.

2) A common buzzword that is part of everyone's business plan in 2013.

3) The act of buying digital inventory from multiple publishers on an impression by impression basis, typically involving an auction pricing mechanism.

4) One of the biggest opportunities for publishers to participate in new media spend, but not a panacea if done in isolation.



Open Marketplace vs Private Marketplace

Open Marketplace allows buyers to purchase media on an audience basis through cookie-based targeting; achieving scale is usually a higher priority than running campaigns with specific publishers

Private Marketplaces (PMP) allows publishers to leverage programmatic technology(s) while maintaining a direct relationship with agencies, advertisers, trade desks and other programmatic buyers using a “Deal ID” to transact

Benefits:• Greater control- specific rules around access to buyers can be

created• Prioritization• Exclusive inventory and access• Transparency leads to higher CPMs for publishers and brings new

advertisers previously wary of programmatic• Access to publishers’ first party data



Nissan wants to buy on your Site

8

$300 million advertising budget

$50 Million Digital Budget goes to…$500K goes towards a sponsorship on

your site

YOURSITE

$1 million budget allocated to programmatic and goes to…

$100k allocated to YourSite’s private exchange

Agency trade desks license technology (a bidder) to buy programmatically,

using a Demand Side Platform (DSP)…

Publishers license technology to sell programmatically, using a Sell Side

Platform (SSP)…

YOURSITE Exchange

8 www.iab.net/programmatic


Holding Company Trade Desk Mapping

Holding Co. Agency Trade Desk

AMNET



Selling Programmatic

Steph Layser, MailOnline

Programmatic Transaction – Start to Finish



Know what makes your property’s programmatic offering unique

Be consultative and drive data conversations that make sense for your advertiser

Know the big players in programmatic and remain educated in the marketplace

Top Three Lessons in Selling Programmatic



What makes your

property unique?

Audience

Viewability

Scale

Non-standar

d ad units

First Party Data

Custom Opportunities

Transparency

Content

What makes your property unique?



Future of the Programmatic Salesperson

Relationships Matter More Than Ever

Focus on Higher-Value Add

Need for Continued Education and Evolution of Compensation Models



Programmatic sales evolution

Kate Ammann, Monster

Being proactive around programmatic

How can I be proactive about bringing programmatic into my sales conversations?

RTB and Private Marketplace use as a lead generation tool Leverage existing relationships (agency/network/trading desk,

etc.) to position yourself as a holistic partner• Package custom sponsorships/integrations/high impact units with

RTB/automated buy Productize Programmatic

• Private Marketplace First-Party Data

• Offer data through programmatic channels• Hybrid on-site/off-site audience packages



IAB activities on Programmatic

Carl Kalapesi, IAB

18

IAB launches Programmatic Council to packed house

Agreed 4 priorities for 2014:

1. Building a transparent & fair marketplace

2. Marketplace education and training

3. Standardization of definitions, terminology, and best practices

4. Making Programmatic work for brands

19

What we talk about when we talk about programmatic



Approaches to selling programmatic



21

Three Programmatic “Digital Simplifieds” published in 2013


OverviewOverview SalesforceSalesforce TransparencyTransparency


Many thanks

Carl Kalapesi, Director, Industry Initiatives

Contact:

[email protected]

Twitter: @carlkalapesi


https://twitter.com/carlkalapesi

https://twitter.com/carlkalapesi


Carl KalapesiDirector, Industry Initiatives

Steph LayserMailOnline

Open Discussion / Q&A

Patrick LandiTime Inc

Kate AmmannMonster

24

Appendix

Other Common Terms

•Demand Side Platform (DSP): a company that provides technology for media buyers

to purchase advertising through real time bidding technology

Examples: Turn, MediaMath, DoubleClick Bid Manager, X+1, DataXu

•Sell Side Platform (SSP): a company that provides technology for publishers to sell

their unsold inventory through real time bidding and other programmatic technologies,

enabling publishers to manage multiple demand sources within one platform

Examples: Rubicon, PubMatic, Google AdX, OpenX, Casale

•Data Management Platform (DMP): (as defined by Lotame)the backbone of data-

driven marketing, and serves as a unifying platform to collect, organize, and activate

your first- and third-party audience data from any source, including online, offline, or

mobile.

Examples: BlueKai, Exelate, Lotame

25

Deal ID Defined

IAB Definition:

A Deal ID is an additional parameter that is passed in a bid request/bid response. In addition to things like timestamp, URL, IP address, cookie info, etc. many platforms now also have the ability to pass the Deal ID on with transaction. Deal ID is a unique string of characters that are used as an identifier for buyers and sellers. The buyer and seller will decide what that unique string of characters is defining. Depending on what platform you are using this could include things like priority, transparency, floor pricing, or data. A deal ID can usually be applied to any of the tactics that are executed through RTB pipes

26

27

Four types of programmatic transactions

Type of Inventory (Reserved, Unreserved)

Pricing (Fixed, Auction)

Participation(One Seller-One Buyer,One Seller-Few Buyers, One Seller-All Buyers)

Other Terms Used in Market

Other Considerations

Automated Guaranteed

Reserved Fixed One-One Programmatic guaranteedProgrammatic premium Programmatic directProgrammatic reserved • Prioritization in

the ad server• Deal ID• Data usage• Transparency to

buyer• Price floors

Unreserved Fixed Rate

Unreserved Fixed One-One Preferred dealsPrivate accessFirst right of refusal

Invitation-Only Auction

Unreserved Auction One-Few Private marketplacePrivate auctionClosed auction Private access

Open Auction

Unreserved Auction One-All Real-time bidding (RTB)Open exchangeOpen marketplace

The Origins of programmatic• 1994- Hotwired sold the first banner add to AT&T

• 1998- Adnetworks like 24/7 Real Media started to emerge to aggregate and resell publishers’ unsold inventory

• 2005- Right Media launched the first digital exchange in order to start aggregating cookies, allowing publishers to start segmenting their audiences via cookies and 3 rd party data BUT was not the first to offer real time bidding (RTB)

• 2008- Agency Holding Company’s started developing trade desks to handle all exchange based buying and become in house experts on programmatic buying and selling

• 2009- Demand Side Platform (DSP), Turn executed the first real time bidding (RTB) buy via Sell Side Platform (SSP), PubMatic allowing advertisers to start bidding on individual impressions in real time

• 2011-2012- Publishers start building private exchanges, carving out inventory segments to an exclusive subset of programmatic buyers (primarily agency trade desks and direct advertisers)

• 2012- Facebook exchange launches, allowing advertisers to bid on facebook impressions, then retarget those users across the internet; estimates are it’s already bringing in an additional $15-25 million in revenue

• September 2013- AOL launching the first “Programmatic Upfront”

28

Programmatic Ecosystem Simplified

29

Advertiser Agency Who Manages Programmatic?

Who Manages the Buy? It Depends…

programmatic 101 webinar slides ck 032714 final

Technology