Digiday Programmatic Media Summit | Meredith

2. DO DON’T • Share data • Share deal points • Share the "why" (why managed tag, why cpm threshold) • Push for transparent bid metrics • Ask for guaranteed viewability • Focus on price • Expect top of stack placement and exclusivity • Assume header & managed tags are the panacea • Share auction insights • Share auction data (win, close) • Understand buyer needs • Deliver product differentiation • Change deal setup w/o client alignment • Overvalue your inventory • Ignore strategic planners • Focus on guarantees Changing the Media Negotiation Dynamic Listening to Each Other: BRITE BUYERS SELLERS B/D B+ A F C B+ C D

3. Successful Partnerships Trust • Intentions • Collaboration Desire for Mutual Success • Understand the other side • Performance Transparency • Data • Deal Points • Auction

4. . What’s Changed Since 2015?

5. Resurgence in Open Market • Inventory more widely available due to header bidding • Quality controls due to industry initiatives (Ads.txt, TrustX, adoption) • First price pressure has driven people back to OX-first strategy

6. • Higher in waterfall • Price • Quality Control • Delivery • Many:1 • OX Upgrade Old World PMP • Pre-bid access • Inventory & product differentiation • 1:1 • Biddable guarantees • ‘Direct’ replacement New World PMP The Role of PMP Has Changed

7. . Greater Role of Agencies

8. . Greater Focus on SPO

9. Deals Done Right for Programmatic “The power sits neither with the buyer or the seller; it rests in the effectiveness of the deal because both parties are equally responsible for its success” • Share auction insights • Don’t be blinded by metrics • Integrate buying • Value beyond price Buyer BehaviorSeller Behavior • Share insights • Focus on an education-based sale • Define the ‘so what’ • Influence planners • Value beyond price

10. Deals Done Right 2.0 1 Differentiate your PMP • Inventory, Products, Packaging Don’t get used to higher prices • First and second-price auction will each have their purpose • Develop a strategy for declining bid density Create new levers for buyers 2 3 4 5 Share, Share, Share • Information asymmetry has no place Keep educating on tech • From ad server to header bidding to…? Integration of direct and programmatic • How does every plan use both? 6

11. Thank you! Digiday Programmatic Summit Chip Schenck SVP, Data & Programmatic Solutions Meredith Corporation November, 2018

Editor's Notes

Here three years ago and gave talk "Deals that Work" Talked about publisher / buyer partnerships and the knowledge sharing that makes for good programmatic deals Digiday asked me to return and give an updated state of the union... This is “Deals that Work 2.0”!!
3 years ago Some of these were a bit early (product diff), and some haven’t turned out the way we wanted (guaranteed viewability) Sharing auction and performance data still a problem –Information asymmetry, apathy Still falling short: transparent bid metrics, auction data sharing, product differentiation, tech understanding B – DSP grade, D – Agency grade We are both responsible for deal success – information asymmetry has no place in PMP
This was what we said was the foundation – all still true today
Industry moves fast So what's happened in the past three years? Nothing, and everything! Lebron James won the NBA Championship, we had an Olympics, and oh yes, an Election...
In our world, the first big change is the resurgence of the open market Inventory more widely available due to header bidding Quality controls due to industry initiatives (Ads.txt, TrustX, improved IAS) As a side note: you may or may not agree with TrustX in terms of execution, but we as pubs need to make something like this work If we can’t change buying behavior we need to do this First price pressure has driven people back to open-first strategy
Only 3 years later… already talking about new world PMP Then: earlier inventory access, use for quality control, many:1 set up (fail) Now: less about waterfall, more about differentiated inventory, products More 1:1 discussion even though agencies have tried to bring back the many:1 (93% of all PMP rev is 1:1) A note on PG – why it has a place but people shouldn’t be counting on it the way it works now
Agencies more involved… not helping! Agencies gravitated to this – buying for PROFIT not PERFORMANCE Bringing their form of bulk-buying negotiation to the table For many agencies, programmatic feels like it is still treated as secondary strategy
Need for SPO is strictly a result of header bidding and first-price auction Drove significant BID DENSITY and COST increases Early days, but seems to be a cost management technique, not performance enhancing Hurt bid density but a natural progression and pubs need to be prepared – task my team every week
Changed seller behavior, now need to change Advertiser buying behavior – right now focused on worst parts of programmatic Many sellers came from tech and ops – more focus on so what vs the features – why does X help? Market share selling – tendency to use price – ‘value beyond price’ create more levers for buyers to pull, not just price (auction prioritization, access, exclusivity, customization/packaging, etc) Buyers: Metrics blindness – see high viewability, accept result (320x50 - ) OX is all about manipulation
RTB Pendulum: It was a buyers market (OX), then became a sellers’ market (PMP/HB) – now it just needs to be market If want to make it better we need to focus on key changes 2nd price for performance (bid to value), 1st price for brand (bid to win) It’s our continued responsibility to educate buyers - this should not be a hard sell – it is much more of a consultative sell based on educating the buyer Economics over technology – 1st price will normalize, bid density will decline
Thank you – and look forward to seeing you in 2021 to grade our progress!

Digiday Programmatic Media Summit | Meredith

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Editor's Notes