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Deep Dive on Programmatic for Publishers (Digiday WTF Programmatic for Publishers - 4/30/15)

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Matt Prohaska's presentation from Digiday's WTF Programmatic for Publishers event in NYC - April 30, 2015.

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Deep Dive on Programmatic for Publishers (Digiday WTF Programmatic for Publishers - 4/30/15)

  1. 1. For  Context,  A  Li.le  About  Prohaska  Consul7ng   •  “Programma7c  Help  For  All”   •  Publishers, Ad Tech, Agencies, Brands, Industry, Investors •  60+ clients in the last year+ •  30+ different ad tech vendor reviews last 3 years •  Current  ac7ve  freelance  team  of  28  in  7  ci7es   •  Sales, Marketing, Operations, Biz Dev, Analytics, Tech Dev •  Ma.  Prohaska,  CEO  &  Principal   •  In digital advertising since ‘94 •  Former Programmatic Advertising Dir. @ New York Times ●  Closed more programmatic direct deals than any other publisher in the world during 10 months there
  2. 2. Most  U.S.  Pubs  Are  Now  Beyond  This  Reac7on   Source:  AMC,  Mad  Men,  2014  
  3. 3. And  This  Reac7on…   Source: Raising Arizona, 1987
  4. 4. What Benefits Come From Programmatic? Efficiency     Lower  CPMs   Speed   Audience   Targe7ng  
  5. 5. 4 Programmatic Transaction Types 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 www.iab.net/programmatic Trend Line
  6. 6. Open vs. Private Marketplaces: Retail Analogy Open Private www.iab.net/programmatic The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
  7. 7. Programmatic Team Culture vs. Strategy •  Spectrum of sales talent: lean-in vs. fear/head-in-sand •  Similar to digital SME sitting down the hall •  Operations often “driving the bus,” not sales •  Salespeople are spending more time on creative, strategic, proactive; not losing their jobs. •  As with Brands & Agencies should be considered part of an overall strategy for optimizing revenue.
  8. 8. •  1: Pipes: Programmatic born from the AdOps team, implementation & set up •  2: Education: Separate team built to drive programmatic conversations •  3: Consultative: Team/individual leveraged as SME to co-sell & help drive revenue •  Stage 4 happening now: Full Sales & Ops integration •  New York Times only pub in world then doing Stage 4; now 15+ publishers in U.S. Staged Approach to Programmatic Selling From Nov. ‘13 - www.iab.net/programmatic
  9. 9. Holding Company/Trade Desk Mapping (for the most part, as of today ;-) Holding Company Agency Examples Trade Desk www.iab.net/programmatic
  10. 10. Buyers Landscape – Clients •  Many top clients bringing their practice “in-house” •  Netflix à (from Programmatic I/O ‘14) •  Also P&G, Kellogg, 800-Flowers •  <15 brands in U.S. today •  Mostly CPG & Retail •  Financial next (AllState)
  11. 11. Leveraging Your Tech Stack – Why? •  Sales & Operations working together more than ever •  No longer simply throw the IO over and let traffic get creative and tags •  Opportunity for Operations to take more control and drive the campaign for you •  Hunters and farmers •  “A good craftsman never blames his tools.”
  12. 12. Leveraging Your Tech Stack - Definition •  A series of technologies (internal/external) that allow you to transact media programmatically •  Ad server(s) •  Exchange(s) •  Yield Management Tool •  Data Management Platform (DMP) •  Publisher Trading Desk
  13. 13. Your DMP à Your Data Management Platform
  14. 14. Your DMP à Your Data Management Platform •  Buyer-focused originally •  Publisher-focused more in the last 18 months •  1st Party = your audience •  Behavior, demo, geo, viewability, site-level, category level •  The more granular the targeting the higher the pricing •  3rd Party = others’ audiences •  Lookalike targeting •  Expand the pool (you have 1M, go find 4M more similar)
  15. 15. Your DMP •  New products – Audience Extension (on-site, off) PublisherX.com Audience Extension (BT) PublisherX.com/Autos PublisherX.com Network Audience Extension
  16. 16. Your DMP – The New “Green Ring”
  17. 17. Your Yield Management •  Balance of sell-thru rates vs. CPM •  Price floors – global, by-vertical, by-buyer, by-client •  Guaranteed vs. Non-Guaranteed •  Dynamic Allocation, or dynamic allocation •  TV: Upfront vs. Scatter vs. Opportunistic sales •  Display, Mobile, Video, Social
  18. 18. Your Trading Desk •  Your Operations team buys your audience on exchanges •  Control cookie pools, frequency, margin •  Self-service or managed-service •  Potential replacement for integration b/w DMP & bidders, including Marketing/House “spend”
  19. 19. 5 Stages of Selling •  Prospecting •  Intros & Pitching •  Proposing •  Closing/Launching •  Optimizing/Upselling
  20. 20. Stage 2: Pitching – Show Apples & Oranges •  Know what they are buying 10 reasons programmatic is different from your IO (i.e. Why IOs are $12 and programmatic is $1.20) 1. Not guaranteed inventory 2. Only 300x250, 728x90, 300x600? 3. No competitive separation 4. No roadblocks 5. No SOV 6. No fixed positions 7. Only top-level channel targeting? 8. Not served “first-look” 9. No product placement/custom sponsorships 10. No Added Value needed; agency “kickbacks”
  21. 21. Stage 5: Optimizing/Upselling •  Campaign delivery •  Seen through your exchange dashboard •  Kick out reports from Ops or view on your own •  Managing Expectations •  Non-Guaranteed •  Rhythm/cadence of performance reporting •  Setup weekly 15-30-minute call with Ops/client/ATD/DSP to review data •  This can be set it & forget it, but you will make more if you pay attention with Ops
  22. 22. Stage 5: Optimizing/Upselling •  More Opportunities to Grow Business •  Trading margin for share, based on CPx outcomes •  Adding an IO based on current exchange limitations for more sophisticated inventory, creative •  All the items on your Top 10 Apples & Oranges slide •  Brand awareness working together with DR •  Positive (frequency) & negative (reach) re-targeting
  23. 23. Where  Programma7c  S7ll  S7nks  Today   •  Some  Deal  ID  technical  pain   •  Guaranteed  delivery   •  Price  transparency   •  Audience  discovery   •  Tech  not  built  equally  for  sellers  and  buyers   •  Human  sellers  and  human  buyers  working   together  to  solve  marketers’  problems  
  24. 24. Remember: This Isn’t Happening Overnight Source: The Matrix, 1999
  25. 25. Thank You! Matt Prohaska CEO & Principal matt@prohaskaconsulting.com 917.597.6568 @mattprohaska linkedin.com/in/mattprohaska

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