Ian Michiels
Principal & CEO
Gleanster Research
Bill Lederer
CEO
MediaCrossing
Featured Speakers
WEBINAR
A Publisher’s Gui...
A Publisher’sGuide to
ProgrammaticMediaSelling
and Buying
MakingProgrammaticWorkforYou
Ian Michiels
Principal & Managing D...
What ifJohn
Wanamakerwas
a publisher in
2014?
“Half the money I
spend on advertising
is wasted; the trouble
is, I don't kn...
He might have
said something
more like this…
“I know that half my
inventory is extremely
valuable to advertisers,
I’m just...
Agenda
 A look at programmatic media buying in the context of
publishers
 What is it?
 What does it mean to you?
 By t...
TheState of
DigitalAd
Spend
IAB’s annual Internet Advertising Revenue Report conducted by PwC
According to Gleanster:
An e...
TheState of
DigitalAd
Spend
IAB’s annual Internet Advertising Revenue Report conducted by PwC
Spend on CPM is declining.
J...
Can publishers
avoid
programmatic?
More
Predictions
“Programmatic media buying in the U.S. will grow from $1.99
billion in 2012 to $8.3 billion in 2017. It w...
An Industry
Evolves… but
into what?
Publisher
Owned
• Premium spots
• Limited
understanding of
audience
segments
Networks
...
Poll
What is your level of confidence in your understanding of
programmatic media buying and the impact on the publishing
...
Programmatic
in the
Publishers
World
17%
20%
7%
13%
17%
4%
9%
7%
4%
2%
*Sale of 1-10 (1= No Understanding)
*Programmatic M...
• LUCRATIVE
• MANUAL
• PRECEPTIONOF CONTROL
What does
programmatic
mean for
publishers?
SPONSORSHIPS
PREMIUM INVENTORY
AUD...
What does
programmatic
mean for
publishers?
WHAT’S COMMON…
Via Direct Sales
75%
15%
5%
5%
SPONSORSHIPS
PREMIUM INVENTORY
A...
Premium
DirectWorks
If…
Premium
Direct
Lucrativeis if
Programmatic
changes this
dynamic…
Premium
Direct
Programmatic
Poll
Is your organization selling premium or remnant inventory
programmatically?
Remember
optimal pricing
and efficient
markets in
school...
Illiquidity: Publishers have supply
that can’t find demand.
In...
Transparency
&
Value
Time
Premium
Direct
RTB
Transparency in RTB drives higher
value and therefore optimized eCPM
pricing....
THE POWER OF PROGRAMMATIC
TARGETAUDIENCE
TARGETAUDIENCE
THEY BELONG IN PREMIUM
MAX
CPM
MAX
CPM
MAX
CPM
MAX
CPM
There’s gol...
CommonQuestions
withUncommon
Answers
What do all
these different
players do?
What does this
landscape of
players do?
Allows buyers of digital
advertising inventory to
manage multiple ad
exchange and ...
Price
Dynamics in
theCurrent
Market
Advertisers Pay
Publishers See
What
emerging
trends should
publishers be
aware of?
 Independent MediaTraders
 Represent publishers, marketers, and agen...
How IMTs help
eliminate price
erosion in the
value chain…
Six things
publishers
should know
about
programmatic…
Segment target audiences
more effectively delivering
higher ROI to h...
What do
publishers
need to do to
maximize
future sales?
 Embrace the shift from direct to programmatic, demand will dicta...
Complimentary
Deep Dive
ResearchReport
Q&A
Ian Michiels
Gleanster Research
@InsightFanatic
ian.michiels@gleanster.com
Bill Lederer
MediaCrossing
@MediaCrossing
B...
The Publishers Guide to Programmatic Media Buying and Selling
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The Publishers Guide to Programmatic Media Buying and Selling

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Programmatic direct demands that publishers take additional liberties to truly make their audience discoverable. You have to make it easier for brands to locate the audience they value. Only then can programmatic direct bidding deliver demand optimized pricing for publishers. Buyers will only demand higher prices if they know they can target audiences with programmatic direct as efficiently and effectively as they can with RTB on remnant inventory.

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  • That $36B is largely driven by a fraction of available inventory.If there was an efficient and effective way to monetize this unsold inventory more effectively, would the market be even larger? Are publishers leaving money on the table?That’s where this conversation about programmatic comes into play.Programmatic has the potential to efficiently maximize CPM for all forms of digital inventory.
  • With that said, let’s look at the trends we are seeing in the marketThis chart show Internet ad revenues by pricing model. Notice how the last 6 years have seen a consist decline in spend on CPM programs.We have to ask our selves why that is. It has a very real and material impact on publisher revenue.For those of you who know a thing or two about Real-time bidding you might argue that RTB has contributed to this decline because transparency and efficiency contributed to more efficient spend on CPMI would argue that that perspective is flawed given the volume of spend on RTB- around 30-40% of publisher sales.So that makes rise in spend on performance based pricing model all the more important. It’s what I call the Jerry McGuire Syndrome. Show me the ROI!Marketing leaders are being held accountable for marketing spend, they need to demonstrate return to justify budgetWhich is exactly why programmatic is so compelling.
  • Given the sift in traction from performance based pricingThe first thing we sort of want to address is the longevity or staying power of programmatic.Is it going away?Is it something that can be dismissed or ignored?
  • If we look at the last 10-15 years on the merits of evolutions the industry has had we can sort of classify them in a series of buckets.The era of publisher owned digital inventory. Networks Evolved: They began to understand publisher audiences better than the publishers using behavioral and contextual signals. Power to the DSPs: The network era evolved into the DSP where rich data from online and offline was combined to and paved the way for real-time bidding where per impression, auction based models started to take hold. DSPs gave advertisers tremendous control over optimizing bids on inventory and helped publishers separate audiences from the content itself. Now we are evolving into programmatic, the systematic and efficient offloading of all forms of inventory. What is also just emerging is the supply side trading platform representing publishers.Ian: “Bill can shed some more light on the current and future state as you see it with Programmatic?”
  • Programmatic is a fully automated method of buying media executed using data and typically the algorithmically driven system with direct access to ad exchanges and other options-based electronic marketplaces. Programmatic uses real-time systems, rules, and algorithms to automate the delivery of data-driven targeted and relevant experiences to the consumers as they interact with the brands many touch points.  For publishers this opens up a whole new approach to offloading available inventory. To micro-targeting audiences and matching available supply in an efficient auction based environment that is optimized for the highest bidder.Ian: “Bill can you touch upon how this definition might change for a publisher”You don’t just have to put inventory on an exchange, you can make it available on a server itself.Let’s stop and do a quick poll just to level-set the conversation.
  • Ian: “Bill can you talk a little bit about how your publishing clients are using programmatic and maybe touch upon the expertise required to do it effectively. What’s been your experience? Share some insights on his perspectives on programmatic in the context of publishers.
  • Let’s start to define programmatic by looking at the current state for publishers.Imagine this mountain represents yoru inventory as a publisher.The peak of the mountain is your premium content. It’s the real-estate with a view that everyone desires.Beneath this is a huge volume of potential inventory that you don’t know a ton about but it’s there and it’s got potential.
  • In order to understand programmatic and the problems with a direct model let’s go back to school for a second. If you recall, the optimal price is driven by the intersection of supply and demand. The problem for publishers is you are facing illiquidity. Where supply can’t find demand- at least not at optimized levels.And the inefficiency argument isn’t just about inefficiency in knowledge and insights. Ian: One of the real challenges in this market is the price inefficiency. Bill one of the value propositions you specifically address as a vendor is the price inefficiency that exists. Can you touch upon that briefly:Inefficiency from the price an advertiser pays and the price a publisher getsWe’ll touch upon it later, but the key point:This is a delta publishers should not be willing to accept.
  • Ian’s explanation.Ian: “Bill can you talk a little bit about what this looks like for publishers. Are there some examples you can give from your publisher clients.
  • This is the LUMAScape – some of you may have seen this, for others it will be new.It’s an attempt to lay out the various players that are currently necessary for enabling digital media buying and selling.This represents the craziness that exists in the marketplace and the different players
  • Ian: “Bill I’m going to have you walk though this…”
  • Bill it would be great if you could elaborate more on this, but we are definitely finding that the research suggests one of the biggest challenges with making programmatic successful is the domain knowledge and resources available on the publisher side. Which also makes it important to look at scalable relationships that can offload some of that burden.
  • The Publishers Guide to Programmatic Media Buying and Selling

    1. 1. Ian Michiels Principal & CEO Gleanster Research Bill Lederer CEO MediaCrossing Featured Speakers WEBINAR A Publisher’s Guide to Programmatic Media Selling and Buying: Making ProgrammaticWork forYou
    2. 2. A Publisher’sGuide to ProgrammaticMediaSelling and Buying MakingProgrammaticWorkforYou Ian Michiels Principal & Managing Director Gleanster Research Bill Lederer CEO MediaCrossing SPONSORED BY:
    3. 3. What ifJohn Wanamakerwas a publisher in 2014? “Half the money I spend on advertising is wasted; the trouble is, I don't know which half.”
    4. 4. He might have said something more like this… “I know that half my inventory is extremely valuable to advertisers, I’m just not sure which half.”
    5. 5. Agenda  A look at programmatic media buying in the context of publishers  What is it?  What does it mean to you?  By the end of this webinar you will know:  Exactly what programmatic media buying is  Transformational trends to prepare for  Key strategies for monetizing inventory more effectively  How to drive relevant audience development cost effectively
    6. 6. TheState of DigitalAd Spend IAB’s annual Internet Advertising Revenue Report conducted by PwC According to Gleanster: An estimated range of not less than 25% and upwards of 80- 90% of inventory is unsold each year (depending on the size of the publisher . ) (April 2013)
    7. 7. TheState of DigitalAd Spend IAB’s annual Internet Advertising Revenue Report conducted by PwC Spend on CPM is declining. Jerry McGuire syndrome runs rampant. Advertisers want ROI. (April 2013) -6% CAGR
    8. 8. Can publishers avoid programmatic?
    9. 9. More Predictions “Programmatic media buying in the U.S. will grow from $1.99 billion in 2012 to $8.3 billion in 2017. It will go from being 16% of total Interactive Display Advertising spend to 30% in the U.S.” “Programmatic media ad spend on RTB will grow from an estimated $2.2 billion (15% of total display advertising and 44% of total indirect ad sales) in 2012 to around $8.5 billion (27% of total display advertising and 78% of total indirect ad sales) in 2016. “RTB will make up 25% of the display advertising space by 2015.” “RTB’s takeover of display advertising will rise to 50% of all display ads by 2017. RTB will hit $7 billion in North America that year as well.”
    10. 10. An Industry Evolves… but into what? Publisher Owned • Premium spots • Limited understanding of audience segments Networks Evolve • Monetize unsold inventory using behavioral and contextual signals Power to the DSPs • Per impression • Real-time • Auction based • SSPs emerge to bridge the gap Programmatic • RTB • Direct • Advent of a Supply SideTrading Platform
    11. 11. 11 What’s programmatic mediabuying? In digital advertising, programmatic media buying is the fully automated method of buying media executed using data and typically algorithmically driven systems with direct access to publisher ad servers, ad exchanges and other auction based electronic marketplaces.
    12. 12. Poll What is your level of confidence in your understanding of programmatic media buying and the impact on the publishing industry?
    13. 13. Programmatic in the Publishers World 17% 20% 7% 13% 17% 4% 9% 7% 4% 2% *Sale of 1-10 (1= No Understanding) *Programmatic Marketing Survey Q1 2014, n=46 Publishers,Total Survey Respondents n=72 Limited Level of Comfort What is your level of understanding about programmatic media buying?
    14. 14. • LUCRATIVE • MANUAL • PRECEPTIONOF CONTROL What does programmatic mean for publishers? SPONSORSHIPS PREMIUM INVENTORY AUDIENCETARGETED INVENTORY AUDIENCETARGETED (VIA AD EXCHANGES) REMNANT INVENTORY (WHOLESALE) WHAT’S COMMON… Via Direct Sales
    15. 15. What does programmatic mean for publishers? WHAT’S COMMON… Via Direct Sales 75% 15% 5% 5% SPONSORSHIPS PREMIUM INVENTORY AUDIENCETARGETED INVENTORY AUDIENCETARGETED (VIA AD EXCHANGES) REMNANT INVENTORY (WHOLESALE) PUBLISHER REVENUE
    16. 16. Premium DirectWorks If… Premium Direct Lucrativeis if
    17. 17. Programmatic changes this dynamic… Premium Direct Programmatic
    18. 18. Poll Is your organization selling premium or remnant inventory programmatically?
    19. 19. Remember optimal pricing and efficient markets in school... Illiquidity: Publishers have supply that can’t find demand. Inefficiency: Publishers have limited understanding of target audiences & limited performance metrics to let ROI dictate CPM pricing. More Supply ∞
    20. 20. Transparency & Value Time Premium Direct RTB Transparency in RTB drives higher value and therefore optimized eCPM pricing. Brands will start to demand this transparency from direct and they will be willing to pay higher eCPM for proven value and transparency. Transparency & Value Time Premium Direct RTB Programmatic Direct Increased value on finite premium inventory in an auction-based exchange will drive up eCPM pricing for publishers while lowering overhead costs and increasing yield. Industry trends are shifting the balance
    21. 21. THE POWER OF PROGRAMMATIC TARGETAUDIENCE TARGETAUDIENCE THEY BELONG IN PREMIUM MAX CPM MAX CPM MAX CPM MAX CPM There’s gold in dem’der hills, but publishers need to find it through a better understanding of target audiences and efficient inventory sales. What does programmatic mean for publishers?
    22. 22. CommonQuestions withUncommon Answers
    23. 23. What do all these different players do?
    24. 24. What does this landscape of players do? Allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface. Enable publishers to manage their advertising impression inventory and maximize revenue from digital media. Match the Seller with a BuyerFind sellers based on bid preferences Facilitate the buy
    25. 25. Price Dynamics in theCurrent Market Advertisers Pay Publishers See
    26. 26. What emerging trends should publishers be aware of?  Independent MediaTraders  Represent publishers, marketers, and agencies with a transparent trading platform.  Sometimes referred to as “market makers” because they will actually purchase media from publishers and assume the risk of creating a market for this media.  What’s cool about IMTs?  The can give you higher CPMs by circumventing some of the costs associated with the players in the network  They operate extremely sophisticated algorithms and often use their own data and technology them to direct match advertisers and publishers- and reduce cost in the process.  They provide transparency and insights into your audience.  In addition to using Programmatic MediaTrading for better monetization and sell-through, consider using programmatic for: AUDIENCE DEVELOPMENT • Engage IMTs to drive incremental audience exposure of content and create premium inventory. AUDIENCE EXTENSION • Engage IMTs to target premium audiences outside of owned or managed media. AUDIENCE SUBSCRIPTION • Engage IMTs to create new subscriptions (paid or registered) leveraging programmatic.
    27. 27. How IMTs help eliminate price erosion in the value chain…
    28. 28. Six things publishers should know about programmatic… Segment target audiences more effectively delivering higher ROI to help advertisers to justify increased spend Demand maximum CPM rates through auction based pricing and advertiser demand Control premium and remnant inventory efficiently Minimize unsold inventory Understand subscribers and optimize content to grow high value audiences Target new subscribers and boost premium exposure Programmatic media buying can…
    29. 29. What do publishers need to do to maximize future sales?  Embrace the shift from direct to programmatic, demand will dictate measurement and transparency in the future  Be open to information transparency with the goal of driving efficiency and optimizing eCPM.  How do you know your premium couldn’t drive double the eCPM in an efficient market?  Share data on performance and audience targets with IMT partners and advertisers  Look for opportunities to elevate remnant target segments  Try audience subscription– it could be used to boost new premium subscribers.  Staff appropriately for success.
    30. 30. Complimentary Deep Dive ResearchReport
    31. 31. Q&A Ian Michiels Gleanster Research @InsightFanatic ian.michiels@gleanster.com Bill Lederer MediaCrossing @MediaCrossing Bill.lederer@mediacrossing.com

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