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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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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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