Programmatic 101 webinar slides ck 032714 final


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IAB Programmatic 101 Webinar

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  • There is significant confusion in the marketplace around the meaning of terms like “programmatic”, “RTB”, “programmatic direct”, “programmatic premium”, and other verbiage, often being used interchangeably. To help clarify – IAB worked with publishers to set out key terms – mapped based on 2 characteristics – how the price was set (ie auction based or fixed price) and the type of inventory (reserved/unreserved)
  • Started by thinking about what distinguishes them. Ultimately we boiled this down to 3 things – what type of inventory we are talking about (reserved vs unreserved), what type of pricing (fixed vs auction) and who is involved (1-1, 1-few, 1-many)Whilst there are lots of other issues like prioritization, Deal ID etc they can apply differently to each of the transaction types“Automated Guaranteed”This type of transaction most closely mirrors a traditional digital direct sale. The deal is negotiated directly between buyer and seller, the inventory and pricing are guaranteed, and the campaign runs at the same priority as other direct deals in the ad server. The programmatic element of the transaction that differentiates it from a traditional direct sale is the automation of the RFP and campaign trafficking process. Negotiation through to fulfillment can be, should the publisher desire, completed within the technology platform providing the automated reserve functionality. “Unreserved Fixed Rate”Transactions that fall into this category exist within an exchange environment, but have pre-negotiated, fixed pricing (CPM, CPC, etc.) Typically, Unreserved Fixed Rate deals sit at a higher priority than the Open and/or Invitation-Only Auction. A deal of this type typically is necessitated by advertiser demand for a more predictable offering within the exchange space.“Invitation-Only Auction”This auction type is very similar to an Open Auction except a publisher restricts participation to select buyers/advertisers via Whitelist/Blocklist. A publisher may choose to not participate in an Open Auction and only run an Invitation-Only Auction.  It is important to note that an Invitation-Only Auction is an auction and buyers will be expected to bid on inventory.  A publisher may choose to expose different information such as transparency or data, through the use of Deal IDs or Line Items to add value to this select group of buyers while participating in this tactic.“Open Auction”An Open Auction is the Wild West of auctions.  A publisher will generally allow any and all buyers to participate in accessing their inventory through this tactic.  Usually there is no direct relationship with the buyer.  Publishers may choose to use Blocklists and floor pricing to prevent advertisers from gaining access.  On the advertiser side they are often unaware of what publisher they are buying on.  DSP’s usually present a list of exchanges/SSPs to the buyer that they automatically opt into. Buyers may not know or care that they are buying a publisher’s inventory. Because of this, publishers can participate in the Open Auction on a blind basis.
  • Programmatic 101 webinar slides ck 032714 final

    1. 1. Programmatic 101 for Direct Sellers 31 March 2014 IAB
    2. 2. 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,
    3. 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 2
    4. 4. What is programmatic? Patrick Landi, Time Inc
    5. 5. 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
    6. 6. 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.
    7. 7. 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
    8. 8. Nissan wants to buy on your Site 7 $300 million advertising budget $50 Million Digital Budget goes to… $500K goes towards a sponsorship on your site $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)…
    9. 9. Holding Company Trade Desk Mapping Holding Co. Agency Trade Desk
    10. 10. Selling Programmatic Steph Layser, MailOnline
    11. 11. Programmatic Transaction – Start to Finish
    12. 12. 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
    13. 13. What makes your property unique? Audienc e Viewabili ty Scale Non- standard ad units First Party Data Custom Opportu nities Transpa rency Content What makes your property unique? 12
    14. 14. Future of the Programmatic Salesperson  Relationships Matter More Than Ever  Focus on Higher-Value Add  Need for Continued Education and Evolution of Compensation Models 13
    15. 15. Programmatic sales evolution Kate Ammann, Monster
    16. 16. 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 15
    17. 17. IAB activities on Programmatic Carl Kalapesi, IAB
    18. 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 17
    19. 19. What we talk about when we talk about programmatic 18
    20. 20. Approaches to selling programmatic 19
    21. 21. Three Programmatic “Digital Simplifieds” published in 2013 20 Overview Salesforce Transparency
    22. 22. Many thanks Carl Kalapesi, Director, Industry Initiatives Contact: Twitter: @carlkalapesi 21
    23. 23. Carl Kalapesi Director, Industry Initiatives Steph Layser MailOnline Open Discussion / Q&A Patrick Landi Time Inc Kate Ammann Monster
    24. 24. Appendix 23
    25. 25. 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 24
    26. 26. 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 25
    27. 27. Four types of programmatic transactions 26 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 guaranteed Programmatic premium Programmatic direct Programmatic reserved • Prioritization in the ad server • Deal ID • Data usage • Transparency to buyer • Price floors Unreserved Fixed Rate Unreserved Fixed One-One Preferred deals Private access First right of refusal Invitation- Only Auction Unreserved Auction One-Few Private marketplace Private auction Closed auction Private access Open Auction Unreserved Auction One-All Real-time bidding (RTB) Open exchange Open marketplace
    28. 28. 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 3rd 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” 27
    29. 29. Programmatic Ecosystem Simplified 28
    30. 30. Advertiser Agency Who Manages Programmatic? Who Manages the Buy? It Depends…