Programmatic as a
                      Means to Meeting
                      your Marketing Goals
                      Darragh Daunt
                      Marketplace Development
                      Google


Google confidential
Google Marketplace Development team
  connects brand advertisers with premium
  publishers through programmatic ad trading




Google confidential
1                 WHAT is programmatic media trading ?

2                 WHY do we need it?

3                 HOW is it working in practice?

4                 Questions




Google confidential
What is Programmatic
                        Media Trading?
                 What does programmatic trading mean?
    How does it differ to current media trading? How big is this market?




Google confidential
Programmatic buying is the process of executing media buys in
   an automated fashion through digital platforms such as:
exchanges, trading desks, and demand-side platforms (DSPs).


                  Fax Machines      Cutting & Pasting



  Google confidential
The programmatic vision of media buying....
               Media plan in Excel             Media plan in DSP

  Phoning media owners for avails         Check Exchange or use RTB

             Approval from clients              No change here!

          Negotiations and buying       Private Auction / First Look / RTB

            Collect creative specs        Dynamic / One size fits most

                      Sign & fax IO’s              Eradicated

        Upload to iDESK / Adazzle         Same but fewer billing points

           Trafficking & send tags           Generated by the DSP

 Pulling reports / cutting & pasting             Live dashboard


Google confidential
Programmatic trading has moved from
concept to reality




      RTB
   Impressions
  on AdX 2010-
      2012




Google confidential
20% of Display spending projected to be
delivered programmatically in 2013




Google confidential
Why do we need Programmatic
        Media Trading?
What is the value proposition? How is it being received in the market? What’s
                             in it for publishers?




   Google confidential
Targeting and operational efficiency benefits
make programmatic attractive to marketers

                      Audience Buying
A+B                   Real-time decision-making for every impression.

                      Consolidation
 C                    Consolidation of buying points and channels.

                      Data
 D                    Targeting users with 1st & 3rd party data.

                      Efficiency
 E                    Less time spent faxing and trafficking. Greater ROI from
                      universal frequency capping and centralised re-targeting.



Google confidential
Buyer feedback has been positive
Kelloggs On ROI:

We’ve seen tremendous results when using programmatic
buying. Depending on the brand, the digital media ROIs have increased
as much as six times, according to our 3rd party market mix models.



Kelloggs On efficiency:

Bottom line, programmatic buying is more efficient, more effective and
more transparent than the traditional digital media buying model. It’s
more efficient because it’s automated and eliminates expensive
overhead.

Bob Arnold, Associate Director of Digital Strategy, Kelloggs, Nov ‘12

                                                         Google Confidential and Proprietary   11
For publishers, data-infused programmatic
   buying on quality inventory will grow CPMs


Emerging ad types and pricing models will get a bigger share of budgets by
2017, according to the report. Program media, fueled by audience targeting,
will offer the best performance. As marketers compete for similar audience
segments and number of bids increase, average CPM prices of exchange
impressions will rise from $3.17 to $6.64 by 2017.
Forrester: Data, program buying to support $28 Billion for
Display Media in 2017, MediaPost Oct, 10th, 2012




   Google confidential
How does Programmatic Media
              Trading work in practice?
What are private marketplaces? What programmatic strategies are buyers and
                               sellers using?




   Google confidential
Programmatic buying brings with it new,
    safer ways of connecting buyers & sellers

Reservation Buying
ads sold via direct        Ad Networks
transactions between       ad networks aggregated
advertisers/agencies and   inventory and sold it to   Ad Exchanges
publishers                 advertisers. helped        a real-time             Private
                           publishers by selling      marketplace with a      Exchanges
                           inventory they could not   large pool of liquid    Exclusive advertiser-to-
                           sell themselves            inventory not sold in   publisher inventory
                                                      direct buys             relationships for
                                                                              programmatic
  1990s                                                                       purchasing in brand
                                                                              safe environments




                                                                                         today




    Google confidential
Private Marketplaces offer preferential
access in return for higher CPMs




        Open Auction   Private Auctions        Preferred Deals




                            Private Marketplace Options


Google confidential
                                                                 1
                                                                 5
How the Private Marketplace options work
together with the open auction
                                  Fixed Price                     Description
                      Publisher      Deal       One Buyer
                                                                 Fixed-price, Pre-auction
                                                                 deal with one buyer.
      First Tier:
   Preferred Deals

                                   Private
                      Publisher    Auction       Select Buyers   2nd price auction with
                                                                 select group of buyers.
    Second Tier:                                                 Variable CPM floors set
   Private Auctions                                              per buyer.


                                    Open          All Buyers
                      Publisher                                   2nd price auction with
                                   Auction
                                                                  all buyers, minus
      Third Tier:
                                                                  those blocked.
     Open Auction




Google confidential
Google confidential
First look at user is possible where ad server
and ad platform integration exists




                                                         Preferred Deal
        Direct Sales                     Direct Sales    Private Auction

                       Preferred Deal
                       Private Auction


      Open Auction                        Open Auction




Google confidential
Deliver a targeted brand message to that
user within the creative
                          • Headline –
                            weather based
                          • Product images –
                            weather based
                          • Product copy –
                            product based
                          • Footer image –
                            weather based
                          • Local Lowe’s –
                            IP zip code based
                          • Call-To-Action –
                            User interest based

 Google confidential
Buying and selling is easy through the
Marketplace UI
Solicit offers, negotiate, and execute, all without sending an email or picking up
the phone.




 Google confidential
Several common publisher strategies on
Private Marketplaces (PMPs) are emerging

1) Develop PMP relationships with existing direct advertiser clients to
   provide more ways to help them meet marketing goals

2) Use a PMP as a channel to engage with new advertisers where no
   relationship has existed previously

3) Give existing programmatic buyers in the open auction preferential
   access in return for higher CPMs

4) Look at programmatic PMPs as way to automate some parts of an
   existing a buyer relationship



Google confidential
Questions?




Google confidential

Programmatic as a means to meeting your marketing goals by Darragh Daunt - Incisive Create Ad Effectiveness

  • 1.
    Programmatic as a Means to Meeting your Marketing Goals Darragh Daunt Marketplace Development Google Google confidential
  • 2.
    Google Marketplace Developmentteam connects brand advertisers with premium publishers through programmatic ad trading Google confidential
  • 3.
    1 WHAT is programmatic media trading ? 2 WHY do we need it? 3 HOW is it working in practice? 4 Questions Google confidential
  • 4.
    What is Programmatic Media Trading? What does programmatic trading mean? How does it differ to current media trading? How big is this market? Google confidential
  • 5.
    Programmatic buying isthe process of executing media buys in an automated fashion through digital platforms such as: exchanges, trading desks, and demand-side platforms (DSPs). Fax Machines Cutting & Pasting Google confidential
  • 6.
    The programmatic visionof media buying.... Media plan in Excel Media plan in DSP Phoning media owners for avails Check Exchange or use RTB Approval from clients No change here! Negotiations and buying Private Auction / First Look / RTB Collect creative specs Dynamic / One size fits most Sign & fax IO’s Eradicated Upload to iDESK / Adazzle Same but fewer billing points Trafficking & send tags Generated by the DSP Pulling reports / cutting & pasting Live dashboard Google confidential
  • 7.
    Programmatic trading hasmoved from concept to reality RTB Impressions on AdX 2010- 2012 Google confidential
  • 8.
    20% of Displayspending projected to be delivered programmatically in 2013 Google confidential
  • 9.
    Why do weneed Programmatic Media Trading? What is the value proposition? How is it being received in the market? What’s in it for publishers? Google confidential
  • 10.
    Targeting and operationalefficiency benefits make programmatic attractive to marketers Audience Buying A+B Real-time decision-making for every impression. Consolidation C Consolidation of buying points and channels. Data D Targeting users with 1st & 3rd party data. Efficiency E Less time spent faxing and trafficking. Greater ROI from universal frequency capping and centralised re-targeting. Google confidential
  • 11.
    Buyer feedback hasbeen positive Kelloggs On ROI: We’ve seen tremendous results when using programmatic buying. Depending on the brand, the digital media ROIs have increased as much as six times, according to our 3rd party market mix models. Kelloggs On efficiency: Bottom line, programmatic buying is more efficient, more effective and more transparent than the traditional digital media buying model. It’s more efficient because it’s automated and eliminates expensive overhead. Bob Arnold, Associate Director of Digital Strategy, Kelloggs, Nov ‘12 Google Confidential and Proprietary 11
  • 12.
    For publishers, data-infusedprogrammatic buying on quality inventory will grow CPMs Emerging ad types and pricing models will get a bigger share of budgets by 2017, according to the report. Program media, fueled by audience targeting, will offer the best performance. As marketers compete for similar audience segments and number of bids increase, average CPM prices of exchange impressions will rise from $3.17 to $6.64 by 2017. Forrester: Data, program buying to support $28 Billion for Display Media in 2017, MediaPost Oct, 10th, 2012 Google confidential
  • 13.
    How does ProgrammaticMedia Trading work in practice? What are private marketplaces? What programmatic strategies are buyers and sellers using? Google confidential
  • 14.
    Programmatic buying bringswith it new, safer ways of connecting buyers & sellers Reservation Buying ads sold via direct Ad Networks transactions between ad networks aggregated advertisers/agencies and inventory and sold it to Ad Exchanges publishers advertisers. helped a real-time Private publishers by selling marketplace with a Exchanges inventory they could not large pool of liquid Exclusive advertiser-to- sell themselves inventory not sold in publisher inventory direct buys relationships for programmatic 1990s purchasing in brand safe environments today Google confidential
  • 15.
    Private Marketplaces offerpreferential access in return for higher CPMs Open Auction Private Auctions Preferred Deals Private Marketplace Options Google confidential 1 5
  • 16.
    How the PrivateMarketplace options work together with the open auction Fixed Price Description Publisher Deal One Buyer Fixed-price, Pre-auction deal with one buyer. First Tier: Preferred Deals Private Publisher Auction Select Buyers 2nd price auction with select group of buyers. Second Tier: Variable CPM floors set Private Auctions per buyer. Open All Buyers Publisher 2nd price auction with Auction all buyers, minus Third Tier: those blocked. Open Auction Google confidential Google confidential
  • 17.
    First look atuser is possible where ad server and ad platform integration exists Preferred Deal Direct Sales Direct Sales Private Auction Preferred Deal Private Auction Open Auction Open Auction Google confidential
  • 18.
    Deliver a targetedbrand message to that user within the creative • Headline – weather based • Product images – weather based • Product copy – product based • Footer image – weather based • Local Lowe’s – IP zip code based • Call-To-Action – User interest based Google confidential
  • 19.
    Buying and sellingis easy through the Marketplace UI Solicit offers, negotiate, and execute, all without sending an email or picking up the phone. Google confidential
  • 20.
    Several common publisherstrategies on Private Marketplaces (PMPs) are emerging 1) Develop PMP relationships with existing direct advertiser clients to provide more ways to help them meet marketing goals 2) Use a PMP as a channel to engage with new advertisers where no relationship has existed previously 3) Give existing programmatic buyers in the open auction preferential access in return for higher CPMs 4) Look at programmatic PMPs as way to automate some parts of an existing a buyer relationship Google confidential
  • 21.