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Programmatic at TMK

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Presented on 2.24.2015.

This deck - focused on all things Programmatic at TMK - was presented at our most recent "Come See What I'm Working On" session.

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Programmatic at TMK

  1. 1. COME SEE: PRIVATE MARKETPL ACES F e b r u a r y 2 4 , 2 0 1 5
  2. 2. PROGRAMMATIC AT TMK
  3. 3. ©  The  Media  Kitchen  2014  all  rights  reserved   Started with Programmatic centralized and out-sourced to our partner trading desk Performance play; however, TMK desired deeper insights and transparency Introduction of technology made Programmatic buying more accessible Self-service tools empower advertisers to take control of programmatic Moving Programmatic in-house decentralized buys and provided flexibility Transparency into costs and performance; Private Marketplace deals could be negotiated as part of overall digital buy 3   OUR PROGRAMMATIC STORY
  4. 4. ©  The  Media  Kitchen  2014  all  rights  reserved   4   OUR PROGRAMMATIC TEAM PHILOSOPHY The majority of media will be bought programmatically through self- service platforms, which makes media buying more transparent, flexible, and efficient. This technology requires a new type of media professional. With insight into this evolution, The Media Kitchen has developed the Programmatic Media Buying Team. The Programmatic Media Team oversees 3 major areas: •  Programmatic RTB/PMP (includes banners, video, and mobile) •  Paid Search (e.g., Google and Bing) •  Paid Social Media (e.g., Facebook, Twitter, LinkedIn)
  5. 5. PROGRAMMATIC OVERVIEW
  6. 6. ©  The  Media  Kitchen  2014  all  rights  reserved   0% 20% 40% 60% 80% 100% 2011 2012 2013 2014 2015 2016 2017 Programmatic Non-Programmatic Source:  eMarketer:  “US  Display  Ad  Spending  Share,  by  Type”  2013   hFp://digiday.com/plaJorms/global-­‐outlook-­‐programmaLc-­‐adverLsing-­‐5-­‐charts/       6   PROGRAMMATIC FLIPPING THE MARKET The Programmatic ad market will grow from $12 billion in 2013 to more than $32 billion in 2017
  7. 7. Source:  ANA   PROGRAMMATIC 7   2014 WORD OF THE YEAR
  8. 8. RTB GOES MAINSTREAM 1994 1996 2005 2007 20112000 DSPs LAUNCH AD EXCHANGES LAUNCH ADWORDS LAUNCH AD NETWORKS LAUNCH 2014 PRIVATE MARKETPLACES ©  The  Media  Kitchen  2014  all  rights  reserved   DIGITAL ADS LAUNCH 8   DIGITAL A D R E V O L U T I O N
  9. 9. EVOLUTION OF PRIVATE MARKETPLACES
  10. 10. ©  The  Media  Kitchen  2014  all  rights  reserved   ADVERTISER: •  Buy as much quality inventory as possible at low cost •  Negotiate with Publishers to achieve desired plan PUBLISHER: •  Sell as much inventory as possible at high cost •  Create value for inventory through content and scarcity 10   ADVERTISER AND PUBLISHER RELATIONSHIP
  11. 11. ©  The  Media  Kitchen  2014  all  rights  reserved   Thus, significant amounts of unsold inventory jeopardized the inventory “scarcity” tenant that Publishers held dear Unsold Inventory Sold Inventory WebTraffic 11   AS THE WEB EXPANDED It created an increased amount of site traffic, while advertiser growth did not keep pace
  12. 12. ©  The  Media  Kitchen  2014  all  rights  reserved   12   UNSOLD INVENTORY = OPPORTUNITY The growth of the web left Publishers with unsold inventory. Programmatic offered Publishers an opportunity
  13. 13. ©  The  Media  Kitchen  2014  all  rights  reserved   Advertiser Publisher 13   PROGRAMMATIC INITIALLY FAVORED ADVERTISERS
  14. 14. ©  The  Media  Kitchen  2014  all  rights  reserved   Through this model, Publishers lose direct contact with advertisers and agencies Advertiser Publisher Second Price Auction 14   SYMBIOSIS DISRUPTED Inventory sold across the exchanges at variable costs and to unknown advertisers
  15. 15. ©  The  Media  Kitchen  2014  all  rights  reserved   Advertiser Publisher 15   PUBLISHERS CONTROL TRANSPARENCY However, knowledge about the specific inventory won is often obfuscated
  16. 16. ©  The  Media  Kitchen  2014  all  rights  reserved   56% 17% 23% Of Publisher impressions are not viewable Of Programmatic display ads are viewed by bots Of online video ads are viewed by bots Sources:   hFp://www.bloomberg.com/news/2014-­‐12-­‐09/robots-­‐not-­‐humans-­‐fake-­‐23-­‐of-­‐web-­‐video-­‐ad-­‐views-­‐study-­‐finds.html   ANA  (hFp://blogs.wsj.com/cmo/2014/12/09/5-­‐things-­‐marketers-­‐need-­‐to-­‐know-­‐about-­‐ad-­‐fraud/)     16   MONETIZATION OF INVENTORY The open exchange encouraged fraudulent traffic, and poor placement viewability as web-crawlers and bots attempted to exploit advertising to generate publisher revenue
  17. 17. ©  The  Media  Kitchen  2014  all  rights  reserved   Private Marketplaces put the responsibility for inventory quality on the Publisher, allowing them to lock in advertiser dollars and a pre-agreed price QUALITY 17   PRIVATE MARKETPLACE AS A STABLIZING FORCE
  18. 18. ©  The  Media  Kitchen  2014  all  rights  reserved   18   EVOLUTION OF PRIVATE MARKETPLACES A Private Marketplace is a customized, invitation-only marketplace where Publishers make their inventory and audiences available to a select group of buyers. Unlike a direct buy, which can be labor intensive for both Publishers and Advertisers, buyers in a PMP use programmatic-media buying controls to purchase from Publishers. DefiniLon  via  RockeJuel   hFp://rockeJuel.com/webinars/what-­‐is-­‐a-­‐private-­‐marketplace  
  19. 19. ©  The  Media  Kitchen  2014  all  rights  reserved   19   WATERFALL Publisher Direct Automated Guarantee Preferred Deal Private Auction Open Exchange
  20. 20. ©  The  Media  Kitchen  2014  all  rights  reserved   WIN FOR ADVERTISER: •  Choose inventory with specific partners •  Control of serving parameters and audience (time of day, day of week, first and third party audience data, etc.) •  Decrease issues pertaining to viewability and fraud WIN FOR PUBLISHER: •  Can sell more inventory (fill rates) at desired or preferred CPMs •  Fill inventory with preferred Advertisers rather than just the highest bidder 20   PRIVATE MARKETPLACES ARE A WIN-WIN
  21. 21. ©  The  Media  Kitchen  2014  all  rights  reserved   Preferred Deals Private Auction Pricing # of Buyers DescriptionPublishers One Publisher Fixed Price One Advertiser Negotiated, fixed price; completed through self-serve tool 2nd price auction with select group of buyers; auction with set floor; through publisher- owned DSP2nd Price Auction w/ Floors One Publisher Select Advertisers 21   TYPES OF PRIVATE MARKETPLACES
  22. 22. RFP PROCESS
  23. 23. ©  The  Media  Kitchen  2014  all  rights  reserved   Crafting Proposal Negotiating Plan Execution of Buy 23   RFP PROCESS: OVERVIEW
  24. 24. ©  The  Media  Kitchen  2014  all  rights  reserved   Media team develops RFP Media team issues RFP Publisher submits proposal Should include information such as… •  Are Programmatic and Publisher Direct considered one digital plan? •  Can Programmatic and Publisher Direct inventory overlap? •  Is there specific inventory desired? •  Are there inventory quality standards (viewability and fraud)? •  Is there specific targeting required (audience, geo, etc.)? •  What Programmatic tactic is preferred (PMP or Private Auction)? 24   RFP PROCESS: CRAFTING A PROPOSAL
  25. 25. ©  The  Media  Kitchen  2014  all  rights  reserved   25   RFP PROCESS: CRAFTING A PROPOSAL For Publisher: •  Send RFP and any additional documentation explaining campaign (i.e. excel doc with specific proposal format) Media team develops RFP Media team issues RFP Publisher submits proposal
  26. 26. ©  The  Media  Kitchen  2014  all  rights  reserved   26   Placement Name Unit Sizes Start Date End Date Cost Structure Net/Gross Rate Planned Impressions Planned Cost Site – Preferred Deal PMP_728x90 728x90 1/1/15 4/30/15 CPM $8.00 TBD $100,000 Site – Preferred Deal PMP_300x250 300x250 1/1/15 4/30/15 CPM $8.00 TBD Site – Preferred Deal PMP_300X600 300x600 1/1/15 4/30/15 CPM $8.00 TBD Site – Publisher Direct_300x250 300x250 1/1/15 4/30/15 CPM $16.00 TBD Site - Publisher Direct_728x90 728x90 1/1/15 4/30/15 CPM $16.00 TBD           - - $100,000 RFP PROCESS: CRAFTING A PROPOSAL Media team develops RFP Media team issues RFP Publisher submits proposal
  27. 27. ©  The  Media  Kitchen  2014  all  rights  reserved   Media team negotiates RFP terms with Publisher Media team and Publishers discuss details of Programmatic prior to paperwork Media team provides IO and T&Cs based upon agreed plan 27   RFP PROCESS: NEGOTIATING PLAN Terms of Negotiation: •  Price floor and/or fixed CPM •  Packages and inventory •  Spend flexibility •  Any viewability and/or fraud percentages to be considered
  28. 28. ©  The  Media  Kitchen  2014  all  rights  reserved   28   RFP PROCESS: NEGOTIATING PLAN Details Needed: •  TMK Team DSP •  Publisher SSP •  Any site pixeling opportunities for Publisher •  Reporting options Media team negotiates RFP terms with Publisher Media team and Publishers discuss details of Programmatic prior to paperwork Media team provides IO and T&Cs based upon agreed plan
  29. 29. ©  The  Media  Kitchen  2014  all  rights  reserved   29   RFP PROCESS: NEGOTIATING PLAN Signed document: •  Holds Publisher accountable for inventory type, quality and floor pricing •  Holds Advertiser accountable for investment level required to achieve rates Media team negotiates RFP terms with Publisher Media team and Publishers discuss details of Programmatic prior to paperwork Media team provides IO and T&Cs based upon agreed plan
  30. 30. ©  The  Media  Kitchen  2014  all  rights  reserved   Media team to inform TMK PMG of upcoming campaign Publisher works with SSP in setting up inventory and Deal IDs Post-launch maintenance and communication 30   RFP PROCESS: EXECUTION OF BUY For TMK PMG team: •  Media team to complete TMK PMP In-Take Doc and share with TMK PMG team •  Once TMK PMG team has a chance to review, schedule internal meeting to discuss campaign next steps
  31. 31. ©  The  Media  Kitchen  2014  all  rights  reserved   Media team to inform TMK PMG of upcoming campaigns Publisher works with SSP in setting up inventory and Deal IDs Post-launch maintenance and communication 31   RFP PROCESS: EXECUTION OF BUY Deal IDs are a string of characters that pass the planned inventory between the DSP and SSP •  Without Deal IDs, publishers and platforms cannot always allocate client spend more efficiently or reserve inventory
  32. 32. ©  The  Media  Kitchen  2014  all  rights  reserved   32   RFP PROCESS: EXECUTION OF BUY Post-Launch Maintenance (Media and Programmatic teams) •  Are Deal IDs receiving adequate amount of impression volume? •  Do CPMs need to be changed based on performance or delivery? •  Is the program performing according to prearranged quality standards and KPIs? Media team to inform TMK PMG of upcoming campaigns Publisher works with SSP in setting up inventory and Deal IDs Post-launch maintenance and communication
  33. 33. MANAGING DEALS
  34. 34. ©  The  Media  Kitchen  2014  all  rights  reserved   Private Auction 34   PRIVATE DEAL VS. PRIVATE AUCTION Preferred Deal
  35. 35. ©  The  Media  Kitchen  2014  all  rights  reserved   Bid Optimizations can be implemented based on: •  Site Category •  Time of Day •  Day of Week •  Browser (and Browser version) •  Frequency •  Creative Size •  Device Type •  Recency 35   MANAGING DEALS
  36. 36. ©  The  Media  Kitchen  2014  all  rights  reserved   36   OPTIMIZATION EXAMPLES Vanguard FAS Private Auction Vanguard Retail Preferred Deals
  37. 37. THANK YOU!

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