uk copyright 2015 programmatic advertising 12/03/2015
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Programmatic Advertising12/03/2015
WWW.AMBERGREEN.CO.UK
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Evolution Of Digital Advertising
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Publishers and Programmatic
What is Programmatic Advertising?
Automated, Real Time rules based algorithms that deliver data informed experiences to consumers as they move through purchase cycles and touch points
A subset of Programmatic Media Buying – guaranteed / non guaranteed premium inventory (banner ads, home page take overs, mobile, video ads)
Programmatic is furnished with layers of added ‘value’ provided by DSP’s, SSP’s Ad Exchanges, Ad Networks, DMP’s , IMT’s
They refine the data for the advertisers or publisher to provide:
Targeted advertising for brands and agenciesor Control the premium or remnant inventory to increase yield for publishers
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DSP, SSP, Ad Network & Exchanges
DSP – Demand Side Platform
DSP is a system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface.
SSP – Sell Side Platform
SSP’s add a layer between the publisher and the ad exchange to let publishers create rules to manage their inventory (who, what and how much to sell it for) to maximise yield
Ad Networks - Google Ad Sense, Media.net, Admob, YouTube
Ad Exchange - is a technology platform that facilitates the buying and selling of online media advertising inventory whose prices are determined through bidding from multiple ad networks (RightMedia (Yahoo), Doubleclick (Google), Appnexus(Microsoft)
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DMP’s, IMT’s & Programmatic Direct
DMP – Data Management Platform
DMP’s - Adobe, BlueKai, CoreAudience, sophisticated publishers - Add a layer of understanding of what audience are looking at and engaging with across multiple content sources
IMT – Independent Media Trader
IMT’s provide solutions for buying remnant inventory, offering execution services on behalf of publishers, marketers and/or agencies, and networks
Programmatic Direct (Premium)
Programmatic Direct lets publishers automate rules to let brands reach the audience they value whilst simplifying the sales process, providing the same guarantees that they would have got from buying directly off the publishing sales team
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What is Retargeting or RTB
Retargeting your audience
Bidding on individual ad impressions
In real time
For the opportunity…
To show one specific ad
To one specific consumer
In one specific context
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What is Programmatic Buying
Programmatic buying
Bidding on individual ad impressions
In real time
For the opportunity…
To show one specific ad
To one specific consumer
In one specific context
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Why is Programmatic so effective?
Effectiveness
Buy only consumers
that you want
Only in contexts that
generate impact
And scale up massively
Programmatic buying can leverage countless attributes of consumer insights to understand the subtle variations of the highly responsive consumer.
Providing campaign specific modelling
Impression-level decision each user is given a propensity score
Giving us a dynamic bidding model to reach the marketing goals
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When can advertisers use it?
Branding
Direct Response
Loyalty Marketing
• Reach & Frequency• Brand equity lift• Purchase intent
• Prospecting• Retargeting• Offline impact
• Up selling• Cross selling• Referrals
Programmatic is a method of taking fragmented campaigns and turning them onto an ‘always on’ marketing campaign.
From branding to direct response to loyalty marketing. Every conversion has a marketing cost, a margin and an opportunity to upsell.
Programmatic vendors can have the data needed to make that sale or steal one off your competitors.
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How Advertisers Should Use It
Single solution
Display
Social
VideoMobile
Search
Programmatic works best when it takes retargeting and audience profiling together, and the advertiser does not delineate between funnels.
If the advertiser wants to split the funnels, let the experts decide where to make the changes. This enables them to leveragemore data and capture more consumer actions in their algorithms, thus deriving far better funnel models for the advertiser‘s product.
Bidding based on a propensity to click based on visitor engagement metrics.
A well plan campaign can deliver some great results.
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Problematic!
A programmatic campaign needs volume to work.
A new brand, with no data, no loyal audience and no brand awareness can only learn off the profiling data of others.
You wont always get a ROI, or hit your CPA or volume goals.
The more data you have, the more effective it is.
Data (visits, click throughs’, conversions) are essential.
Some agencies and vendors are more knowledgeable or honest than others!
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Moving More Inventory
Can you sell more advertising, not using premium direct sales?
Traditional selling model – No Transparency, Burden is on the brand / agency to refine the audience, large sales staff numbers , remnant inventory is left unsold, premium is very profitable
Are publishers reluctant to be innovative?
Can you make sell more inventory using Programmatic?
Entirely possible to up sell premium inventory using a RTB environment if the publication source and audience targeting criteria are considered in the bidding model
Time for publishers to work with the correct players in the digital ecosystem. There is less appetite for buying media without transparency. Why should there be?
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Publishers should be conscious of....
The big gap between the CPM cost for advertisers and the CPM publishers receive
Lucrative landscape for value providers – Ad Networks, DSP’s, DMP’s, SSP’s, IMT’s
Providing a dual role - To add transparency to audience targeting whilst protecting the flow of information throughout the value chain
Independent Media Traders – Purchase unsold inventory , they could also facilitate higher CPM margins for publishers
IMT’s wont be an immediate disruptive influence as they heavily rely on DSP’s , SSP’s and DMP’s (and they all still want their cut)
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Avoiding programmatic direct?
RTB provides 30 – 40% of advertising revenue for publishers
The threat and availability of data, transparency and audience targeting is the problem to direct marketing sales
Transparency drives value, higher CPM pricing based on RTB session depth, half your inventory will be of real value to advertisers
Do you know what half? What advertisers would be willing to buy it a premium pricing?
Brands want the same granular information on premium inventory as they would from RTB on the remnant inventory
Can publishers avoid programmatic direct? - Probably Not!
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Options for Publishers
There are 4 main models to capturing ad revenue
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Generating advertising revenue•Segment target audiences more effectively
•Demand maximum CPM rates
•Control premium and last minute inventory
•Minimize unsold inventory
•Understand subscribers and optimize content
•Increase exposure to content at the audience segment level
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Generating more advertising revenue•Use Audience Extensions to target premium audiences outside of owned or managed media
•Systematically sell paid subscriptions leveraging programmatic marketing (subscription acquisition)
•Estimates suggest 80-90% of the available online ad inventory is unsold each year.
• Publishers live in an illiquid environment where supply can’t find demand. No number of hired direct sales reps can solve this problem...
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Questions
Grant WhitesideProduct and Development DirectorAmbergreen
@ambergreen_saysgwhiteside@ambergreen.co.ukambergreeninternetmarketing.com