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Truth. Connection. Wonder. | © 2019 Digitas
Rahil Berani – VP Programmatic, Digitas
Supply Path
Optimization In A
Buyers World
Supply Side
Transformatio
n
eMarketer; October, 2018
“86.3% of total US digital display ad spending will be
programmatic by 2020”
What mattered then… …What matters now
THE PRIMARY GOAL: SELL OUT ALL AVAILABLE INVENTORY THE PRIMARY GOAL: MAXIMIZE YIELD ON INVENTORY
Direct Remnant House Unsold
0
5
10
15
20
25
Direct PG PMP OX
eCPMs
Direct PG PMP OX
Auction
Dynamics
The Traditional The New-Age
WATERFALL BASED ON PRIORITY FULFILLMENT BASED ON PRICE POINT
DIRECT IO • $21
SSP 1 • $19
SSP 2 • $24
SSP 3 • $24.50
REMNANT • $10
Direct IO
$24
Pub
$26
SSP 1
$25
DSP 1
$25
DSP 2
$22
SSP 2
$26
DSP 3
$26
WINNING AUCTION TO PAY $.01 HIGHER THAN THE 2ND HIGHEST BID
Second Price Auction
SSP 1
$25
SSP 2
$22
Pub
$22.01
WINNING AUCTION TO PAY BID PRICE
First Price Auction
SSP 1
$25
SSP 2
$22
Pub
$25
Intro to Bid Shading
A calculation from the exchanges to
help mitigate the increased clearing
rates due to first price auction
The Ask For
Transparency
Visibility Towards Spend
Brand’s Dollar
Agency Fee
DSP Fee
Tech Fee
SSP Fee
Reseller Fee
40% to Publishers55%5%
OpenRTB
Transparency into
authorized sellers
Validation of
ads.txt
Sellers.json:
Exchanges ads.txt
ads.txt ads.cert
Investigate
Collaborate
Educate
Thanks!
QUESTIONS?
RahilBerani@Digitas.com

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Digiday Programmatic Marketing Summit | Digitas

Editor's Notes

  1. Introduce yourself: “oversee programmatic for Digitas NY for about a year” “started my career in digital media on the publisher side, working in digital pricing and inventory, in yield, and overseeing programmatic across a number of publishers” “One thing that’s been consistent in my journey is the gap between the buyer side and seller side. We’re starting to see a trend now, more conversations on the topic, and more blueprints as to how we can have better working relationships with each other to live in a world of transparency and partnerships”
  2. “an important factor in working towards this world of transparency is understanding the changing landscape of both sides” “so I’ll walk through some of those changes, and how we can hopefully get to the point we’re all trying to achieve”
  3. 73% in 2016 “there needs to be a shift in the mindset for the supply side as well”, “this is what i’ve seen from my time on the pub side”
  4. “with Programmatic continuing to take a bigger piece of the pie, it’s good to understand how that effects the sell side’s thought process” “What mattered then: have a specific amount of inventory capability in a given time frame (day, week, month, quarter). Need to sell all of this inventory to make sure you’re maximizing your revenue potential based on that availability” walk through the example “what matters now: now, if you have any inventory that has the ability to be fulfilled, it will be fulfilled (ideal). Now the focus can shift to how can I maximize the revenue for every impression I am selling.
  5. To understand what is being looked at within Auction Dynamics, need to understand about some of these advancements in automation
  6. The Traditional: priority system. Why would SSP1 be prioritized higher than SSP2? Up to the discretion of the publisher. Better working relationship, better fees, etc The New Age: Implementation of header bidding. Give that impression every opportunity to be fulfilled by the highest price, the highest bidder. - more than half of US web publishers have implemented some type of header bidding solution (emarketer 2018) - Continuing to mature with in-app capabilities and server to server opportunities.
  7. Walk through second price vs first price - Google Ad Manager was one of the latest to announce the shift, with 100% of inventory sources being on first price by July 2019.  How has this helped shape supply path optimization?
  8. Bid Shading / Optimized Bidding / optimized clearing rates.
  9. Programmatic buy tech owners – 78% say the top challenge for programmatic buying is lack of transparency around media buys (eMarketer June 2018) Assuming no fraud, after let’s say an average of 5% to AOR, 55% goes towards the tech stack (eMarketer March 2018)
  10. Ads.txt – apps-ads.txt (DV360 will default to ads.txt inventory exclusively in August). 78.3% of programmatically enabled websites WW have implemented ads.txt as of Q4 2018 Ads.cert – leveraging our continued growth in technology, ads.cert allows the ads.txt verification to be verified throughout the supply chain. Openrtb 3.0 – digital signature on an inventory opportunity. Ad fraud occurrences the manipulation of the data being transferred, but this helps alleviate a majority of that Sellers.json – implemented by tech platforms for resellers and seller ID OpenRTB Supply Chain Object – gives buyers the opportunity to tie back a bid opportunity, and the true supply chain tying back to the media company
  11. Investigate: While these supply path optimizations are coming up, there’s a lot of unknowns into the algorithms, and if there isn’t a cost structure yet, there will be. Investigate using your talent. Learn about your win rates, clearing rates, and how they change systematically and seasonally. Learn from this in future bids. Collaborate: If you haven’t, begin cultivating relationships not only with publishers, but with the supply side exchanges as well. We’ve seen in the news items such as Pubmatic and Goodway Group, that’s just an example of working towards the transparency we are all looking for. We’ll continue to work and make improvements to our current state Educate: educate brands on both sides of the automation ecosystem, educate internally about the things to look for, educate yourselves in what is happening in the industry and the changes.