april30,2015
PROGRAMMATIC IN BRIEF
agenda
2
The Basics
>  Definitions
>  Why?
Landscape
>  Market Progression
>  Actors & Acronyms
>  Media Buying
Publisher ...
terminology: the painful stuff
RTB Real Time Bidding –the technology that allows the selling and buying of inventory one i...
‘programmatic’ defined
The Meredith Definition
Programmatic Advertising is machine-to-machine
automation of advertising/me...
why is RTB growing so fast?
From past to present
Buyers
Sellers
Past Present
Execution Transparency
Cheap Media
High liqui...
the programmatic evolution
Ad Networks
ad networks aggregated
inventory and sold it to
advertisers. helped
publishers by s...
actors & acronyms
Comparative analysis of the actors
AdNets
Started as budget
aggregators
Now seen as in
agency
specialist...
MARKETPLACE
actors & acronyms
What role each plays in the ecosystem
10
ADVERTISER/AGENCY
PUBLISHER
DSP
ADVERTISERADSERVER
...
players
Leading programmatic premium buying
HoldCo ATD DSP Clients
actors & acronyms
How each fits into the digital planning/buying universe now
With whom, and how, do we interact?
DSP
(Dir...
actors & acronyms
How each fits into the digital planning/buying universe – where it is going in future
With whom, and how...
the agency reclaims budget control
Programmatic Budgets climb as % of total Digital Spend
>  Half of Senior Ad Buyers allo...
Advertisers and Agencies are putting a stake in the ground to fund and resource
programmatic initiatives in house
Retail +...
how does a publisher manage its business?
>  Price
>  Delivery
>  Sell thru (STR)
>  Revenue
>  Price
>  Delivery
>  Sell ...
PREMIUM
DIRECT
STANDARD
DIRECT
OPEN
PROGRAMATIC
>  High CPM and yield
>  Direct Demand
>  Non Standard
>  High Volume
>  G...
layers of programmatic
Automated
Guaranteed
Private
Marketplace
Open
Market
Direct bought guaranteed
inventory access, non...
deal constructionComponents in a deal and how each contributes
Sponsorship
Ideation for
Impact
Context
Scale within
enviro...
deal types & anatomy
HYBRID PARALLEL PROGRAMMATIC ONLY
PROGRAMMATIC
MIGRATION
Description
Deal that combines Programmatic
...
what did he say??
‘Programmatic’ is an evolving set of capabilities and players
>  What we have today will be outdated in ...
PREMIUM
DIRECT
PREMIUM
PROGRAMMATIC
STANDARD
DIRECT
OPEN
PROGRAMATIC
>  Sponsorship
>  Audience Targeting
>  Custom Execut...
proprietary data shapes everything we do
FOOD
pregnant women
parents
w/ kids 0-2
parents
w/ toddlers
active families
tween...
Programmatic 101: What All Publishers Need to Know (Digiday WTF Programmatic for Publishers - 4/30/15)
Programmatic 101: What All Publishers Need to Know (Digiday WTF Programmatic for Publishers - 4/30/15)
Programmatic 101: What All Publishers Need to Know (Digiday WTF Programmatic for Publishers - 4/30/15)
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Programmatic 101: What All Publishers Need to Know (Digiday WTF Programmatic for Publishers - 4/30/15)

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Rich Zeroth from Meredith Digital's presentation from Digiday's WTF Programmatic for Publishers event in NYC - April 30, 2015.

Published in: Internet, Marketing

Programmatic 101: What All Publishers Need to Know (Digiday WTF Programmatic for Publishers - 4/30/15)

  1. april30,2015 PROGRAMMATIC IN BRIEF
  2. agenda 2 The Basics >  Definitions >  Why? Landscape >  Market Progression >  Actors & Acronyms >  Media Buying Publisher POV >  Deal Anatomy & Construction >  Deal Types >  Key Takeaways
  3. terminology: the painful stuff RTB Real Time Bidding –the technology that allows the selling and buying of inventory one impression at a time. Ad Exchange Transparent real-time marketplace where large pools of inventory are bought and sold. Agency Trading Desk Holding company-created division to execute audience buying strategies, both direct and programmatic. DSP Demand Side Platform - Technology company that powers RTB buying for advertisers and agencies. Leverages Demand Side Decisioning. SSP Supply Side Platform - Technology platform that powers RTB selling for publishers. Aka a ‘publisher biased exchange. PMP Strategy to create a premium sales channel using RTB to execute direct buys, aka Private Exchange. Deal ID RTB indicator/’Flag’ to execute PMP buys for direct deals between publishers & buyers. Automated Guaranteed Workflow automation and execution channel for direct sold reserved inventory. Bid Request/ Bid Response Action in auction where SSP solicits all requests for bids, and DSPs respond with bids.
  4. ‘programmatic’ defined The Meredith Definition Programmatic Advertising is machine-to-machine automation of advertising/media transactions. This typically involves machine-learning decisioning and both biddable and non-biddable inventory, but currently relies human input to create rules for both the buy and sell side. Some examples of programmatic: Ad Networks Search Real Time Bidding Automated Guaranteed
  5. why is RTB growing so fast? From past to present Buyers Sellers Past Present Execution Transparency Cheap Media High liquidity High ROI on Direct Response Scale Data Collection Transparency Access to premium inventory Contextual Relevance Operational + Media efficiencies Flexibility in planning 1st party data access Yield Management Revenue for unsold media Sales Channel Conflict Transparency Premium Environments Control Scale Operational Efficiency Higher Yield 1st Party Data Usage
  6. the programmatic evolution Ad Networks ad networks aggregated inventory and sold it to advertisers. helped publishers by selling inventory they could not sell themselves. Ad Exchanges & SSPs real-time marketplaces with a large pools of liquid inventory not sold in direct buys; SSP’s have more controls for publishers to optimize yield DSPs Bidding technology designed to help advertisers/agencies target and optimize their buys across multiple ad exchanges/publisher inventory pools Reservation Buying ads sold via direct transactions between advertisers/agencies and publishers 1990s Private Exchanges & Automated Guaranteed Exclusive advertiser-to- publisher inventory relationships for programmatic purchasing in brand safe environments Programmatic Premium Direct Sold/ Guaranteed/ Reserved Indirect/ Programmatic/ Unreserved Now
  7. actors & acronyms Comparative analysis of the actors AdNets Started as budget aggregators Now seen as in agency specialists No technology Semi transparent “Buy thru Us”! Started as RTB tech platforms for Demand Migrating to become operational platforms (DMP/ DSP/Workflow) All technology Fully transparent “Automation solves all!” Started (and still are) large aggregated pools of sellers and buyers transacting via RTB All technology Fully transparent “Liquidity Rocks!” Started as perceived pub tool Now seen as a demand tool No technology Non-transparent margins "We have publisher exclusives" or "Uh Oh" ATD's DSPs Exchanges Started as RTB tech platforms for Pubs Migrating to become operational platforms (DMP/ DSP/SSP/ Workflow) All technology Semi transparent “Technology + strategy = pub success” Started as tech platforms to collect and manage data Migrating to become execution platforms for using data All technology Fully transparent “You can’t live without us” SSPs DMPs
  8. MARKETPLACE actors & acronyms What role each plays in the ecosystem 10 ADVERTISER/AGENCY PUBLISHER DSP ADVERTISERADSERVER SSP AGENCY TRADING DESK DMP PUBLISHERADSERVER SERVICES DMP
  9. players Leading programmatic premium buying HoldCo ATD DSP Clients
  10. actors & acronyms How each fits into the digital planning/buying universe now With whom, and how, do we interact? DSP (Direct Buying)Obs & Strats Media mix planning/ Target development Media specialist/ Budgeting & Planning Digital Media Selection MediaPlanningProcess Client Marketing Agency Strategy & Planning Planning Agency Broadcast Out of Home Print AOR Digital AOR Sponsorship Agency Programmatic Agency (ATD) Programmatic budgets typically split here AdNets typically bought here
  11. actors & acronyms How each fits into the digital planning/buying universe – where it is going in future With whom, and how, do we interact? Obs & Strats Media mix planning/ Target development Media specialist/ Planning & Budgeting Digital Media Implementation MediaPlanningProcess Client Marketing Agency Strategy & Planning Planning Agency Broadcast Out of Home Print AOR Digital Media Planning Specialists embedded within implementation DSP (Direct Buying) Sponsorship Search, Programmatic, Mobile, Video
  12. the agency reclaims budget control Programmatic Budgets climb as % of total Digital Spend >  Half of Senior Ad Buyers allocate between 31-60% of digital budget to programmatic >  By 2016, programmatic will be 65% of US Digital Spend Programmatic Budgets determined at Agency Level >  Agencies have reclaimed control of programmatic budgets >  Agency Trading Desk Model is challenged i.e. Vivaki >  Agencies have created programmatic teams in-house As Agencies drive budget, demand increases for innovative products >  Viewability >  Rising Stars >  Guaranteed buys (thru AG or PMP G)
  13. Advertisers and Agencies are putting a stake in the ground to fund and resource programmatic initiatives in house Retail + CPG + Financial Sectors = 52% of all spend in Q2 2014 scoping the market
  14. how does a publisher manage its business? >  Price >  Delivery >  Sell thru (STR) >  Revenue >  Price >  Delivery >  Sell thru (STR) >  Revenue >  Yield >  Fill >  Transparency >  Data Leakage & Protection >  Viewability >  Discoverability Transaction Automation RTB World Before RTB
  15. PREMIUM DIRECT STANDARD DIRECT OPEN PROGRAMATIC >  High CPM and yield >  Direct Demand >  Non Standard >  High Volume >  Guaranteed Delivery >  Prioritized remnant >  Repackaged media >  Undifferentiated media >  Demand-Supply imbalance prioritization in the ad server a.k.a. “The Waterfall” PREMIUM DIRECT STANDARD DIRECT PREMIUM PROGRAMMATIC OPEN PROGRAMATIC >  Sponsorship >  Custom Executions >  Context Targeting >  Audience Targeting >  ROS & RON >  PMP >  SSP >  Ad Nets Typical Publisher
  16. layers of programmatic Automated Guaranteed Private Marketplace Open Market Direct bought guaranteed inventory access, non-RTB Direct bought RTB based inventory access RTB based inventory access in open marketplace Predictable and scalable high value placements Controlled buying with price agreements for bids Efficient and targeted audience buying channels definition value ProgrammaticDirect Premium at scale, across all buying channels
  17. deal constructionComponents in a deal and how each contributes Sponsorship Ideation for Impact Context Scale within environment Audience Targeting Driving awareness with the right person Programmatic Premium/PMP High quality, efficient audience and contextual scale RON Media Audience Extension Additional quality scale for efficiency (as needed) Audience Targeting & ROS ROC Scale within environment RON Quality Scale across environments Use PMP to replace ROS & RON KEY BENEFITS TO CLIENTS: Ability to choose , maximizes spend, relieves ops burden, lower net price KEY BENEFITS TO PUBLISHER: Boost direct, bigger deals, more PMP volume, relieves ops burden
  18. deal types & anatomy HYBRID PARALLEL PROGRAMMATIC ONLY PROGRAMMATIC MIGRATION Description Deal that combines Programmatic Premium and Direct in one buy/ budget Independent sales initiatives with direct and programmatic teams (coordinated) Deal with existing or new client where no direct business is transacted Transition of deal terms and execution from direct to Programmatic Premium Proactive VS Reactive Proactive (pitched) or Reactive (RFP) Proactive Highly Proactive Reactive Who Leads Direct Seller and/or Programmatic seller Both Programmatic Seller Direct Seller pre-transition, Programmatic Seller post Deal Content Direct: sponsorship, takeovers, unique media unavailable to PMP Programmatic: PMP inventory Similar to Hybrid deal PMP and/or AG products All standard media that can be migrated
  19. what did he say?? ‘Programmatic’ is an evolving set of capabilities and players >  What we have today will be outdated in 6-12 months With Programmatic Premium, Sellers and Buyers are more aligned >  Transparency, Operational efficiency, effective reach, supporting the marketer are areas of alignment Spend your time with agency partners and client >  Tech platforms are still buying evergreen deals, but that isn’t where the money is Programmatic should not just be about yield or price >  Leverage in your strategy for client success >  Learn how to work with Demand Side Decisioning >  Use programmatic capabilities as a learning playground: win fast, fail fast The  Basics   –  Defini&ons   –  Why?   Landscape   –  Market  Progression   –  Actors  &  Acronyms   –  Media  Buying   Publisher  POV   –  Deal  Anatomy  &   Construc&on   –  Deal  Types   –  Key  Takeaways            
  20. PREMIUM DIRECT PREMIUM PROGRAMMATIC STANDARD DIRECT OPEN PROGRAMATIC >  Sponsorship >  Audience Targeting >  Custom Executions >  PMP >  Targeted Media >  ROS >  RON >  SSP >  AdNets prioritization in the ad server a.k.a. “The Waterfall” Meredith PREMIUM DIRECT STANDARD DIRECT PREMIUM PROGRAMMATIC OPEN PROGRAMATIC >  Sponsorship >  Custom Executions >  PMP >  SSP >  Ad Nets Typical Publisher >  Context Targeting >  Audience Targeting >  ROS & RON
  21. proprietary data shapes everything we do FOOD pregnant women parents w/ kids 0-2 parents w/ toddlers active families tweens & teens free birds healthy living auto travel beauty/fashion finance pet owners cleaning home decorating gardening offers walmart shoppers target shoppers fashion retail big box shoppers sam’s club shoppers kroger shoppers publix shoppers milk drinkers dessert food lifestyle meat lovers holiday meals cheese heads soft drink breakfast pasta vegetarians BBQ + grilling seafood lovers condiments soup lovers juice lovers coffee / tea ADDITIONAL OVERLAYS & PACKAGES demographics, price sensitivity, engagement, lifestyle, psychographics, seasonal FAMILY SHOPPINGLIFESTYLE HOME

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