Presentation with AOL UK: The Promise of Programmatic: What Publishers Need to Know

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One of the world’s leading publishers, including The Huffington Post, TechCrunch, Engadget and AOL On Originals, AOL has unique global insights into the ways in which programmatic is changing the …

One of the world’s leading publishers, including The Huffington Post, TechCrunch, Engadget and AOL On Originals, AOL has unique global insights into the ways in which programmatic is changing the commercial strategy of publishers. As one of the worlds leading technology companies, AOL has also taken a prominent position by investing in programmatic platforms including Adap.tv, MARKETPLACE and Adlearn Open Platform.

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  • For those of you who still aren’t that familiar with Digiday’s publication, WTF is their popular series of explaining complicated industry jargon in simple terms.

    So thought I would take a page from Digiday and highlight one of the great challenges in our industry: CONFUSION.

    Last night Brian outlined the key trends for publishers in 2014 - Programmatic among them.
    How has something most of the industry didn’t know about, let alone talk about just a few year ago move to the top of everyone’s list

    How many people in your offices really understand WTF programmatic is and how to build a plan for it?
    *Digiday has a popular series called “WTF” where it defines industry terminology
    (They are hosting their first WTF is Programmatic conference in July in NY)
  • There are over 15 terms related to the programmatic business on this slide
    (It’s something we give to clients. I have copies here if you want them)
    This is what you can DO with programmatic. So what is programmatic essentially?
  • At AOL, we define Programmatic as the automation of a mundane task
    Programmatic started out synonymous with another popular acronym - RTB. Which many people think means RACE TO THE BOTTOM.
    Today’s Programmatic, we would argue, is more of a race to the top.
  • Take eBay for example.
    eBay started out as a place to buy an sell PEZ DISPENSERS!

  • Slide Build:

    On Today’s eBAY, you can now buy and sell LUXURY cars, Fine Jewelry, even houses!!- you can see how far it’s come.
    That’s because it takes some time for the basics of the automation process to get worked out, people to try it out, and for the product to evolve to meet a variety of needs, purposes and of course - guarantees for the buyer and seller.
  • Let’s look at rise of programmatic in another way - efficiency
    How many of you have ever tried to flag down a tax in the pouring rain?
    Always feels impossible right?

  • But no one who has ever been stuck in the rain, late for a meeting or event, has been unhappy about Uber
    Uber - the car service on demand app - directly connects available taxis with passengers
    Uber created market liquidity by directly connecting the buyer and seller
    And the closer you can bring those two together, the more likely you are going to deliver satisfaction between buyer and seller.
    It’s basic economics - supply and demand
  • So in an industry that claims to be all about technology and innovation, so slow to embrace automation?
    Why does it take 60+ steps to launch a display campaign?
    Why are we still accepting IO’s via fax?
  • At AOL we talk about something called the technology tax.
    Over the past decade a number of nice offerings have sprung up to be able to meet the various needs of publishers and advertisers.
    Each one of these “offerings or businesses” takes a piece of the media dollar that should be moving from the advertiser to the publisher.

    Let’s think about it another way. Perhaps you have signed up the greatest of each of these offerings, but when you layer the process of bringing them all together, there are other costs to doing business.
    It takes time to integrate new tech vendors, train sales teams, stream line workflows. What about discrepancies? How much time is lost trying to resolve data?
    Each one of these aspects erodes more than just the euro - it erodes time and energy as well
  • Take a look at this in the context of our global economy.
    Global programmatic spend is set to hit €730B by 2017.
    The current structure would translates into 55 billion euros being sucked up by inefficiency.
    Imagine if a larger percentage of this global spend actually went back into the system?
    Imagine not only the euros back, but the time back to doing the things that actually matter - like being smart, creative, strategic

  • So why if we believe so strongly in being in able to achieve these efficiencies and return time and head space back to the market, are publishers so afraid to embrace programamtic?
    AT AOL, as both a publisher and a technology company, we hear 4 main fears:
    YIELD
    BRAND SAFETY
    SKILLS AND SALES FORCE
    COMPLEXITY
  • As I mentioned earlier, we don’t see Programamtic as a Race to the Bottom. In fact, it can be a race to the top by driving growth.
    Think about Programmatic as a way to access inventory using the brain power of technology - the inventory will be sold the same way but it will actually be more efficient.

    An old inventory pricing model may old you to assumptions about an inventories value, but with programmatic the data may uncover a different story.
    You may be able to sell that previously “unvalued” inventory in a different way ultimately driving more yield.

    The tools of programmatic technology allow you to de-aggregate, de-average and engage with your inventory in a more complex way.
  • AOL is one of the most recognized brands in the world. We have spent the last 5 years rebuilding our brand portfolio because we believe that great advertisers want to be a part of great brands.
    We build our brand platforms around the demand for what we call “deep brand experiences”

    Getting pipes built to getting controls on both sides - there is a lot technologically to control who has ability to advertise. The technology is there and you can/need to take advantage of it to put those controls in place
  • When you get that time back, when the workflow is truly streamlined and more efficient, when money goes back into the system - we believe creativity will explode. Too much time is spent on the working across technical “necessities” for ROI that overwhelm marketers rather than actually producing results.
    Each of these point- solutions chip away at media spend, further robbing marketers of much needed brain time.
    We don’t believe robots will replace humans at all. In fact, in the world of marketing nothing will ever replace humans. Great marketing is about great ideas.
    Now there is more time to devote to ideas and smart thinking.
  • COMPLEXITY:

    Fear of complexity around it, fear of something new
    Once people started testing the waters, great and easy way to increase yield while maintain brand safety, bringing back creativity time and space

    Everything is complex until you start doing it.

    Actually going to deliver the promise of digital for what its going to be
    What is complex is is the 60 steps it takes to launch a campaign, programmatic is designed to reduce that complexity 

Transcript

  • 1. ISPROGRAMMATIC
  • 2. Our business is infested with idiots who try to impress by using pretentious jargon DAVID OGILVY
  • 3. programmatic:the automationofa mundanetask
  • 4. 4FEARS ABOUT PROGRAMMATIC SALESFORCESKILLSETS: HUMANPRIORITY YIELDS:PUBLISHER PRIORITY COMPLEXITY OFPROCESSES: INDUSTRYPRIORITY YIELD BRAND SAFETY SKILLS/SALESFORCE COMPLEXITY
  • 5. PROGRAMMATICCANDRIVEPREMIUMREVENUES VOLUMES YIELDSPROGRAMMATIC OPPORTUNITY REMNANT RUNOFSITE RUNOFCHANNEL TARGETED
  • 6. BRANDSAFETY NEED WEATHER AD
  • 7. IDEAS FOR IMAGES: Kid looking at deep end Forest for the trees Maze
  • 8. KEYLEARNINGS 1. Uncover new value for your inventory by making it accessible programmatically 2. Use the tools in the technology to maintain control for your brand 1. Free up your sales and marketing teams to do what they do best 2. Test, Learn, Optimise. 3. Test, Learn, Optimise.