Because the digital landscape is constantly changing, Anvil’s team always tries to keep a pulse on the latest and greatest in digital trends to ensure we’re bringing innovative strategies and solutions to our clients. In our next webinar, our Paid Specialist, Kari Schroeder, and team will discuss what is new in digital media including OTT, Real-Time Bidding, Programmatic and other advancements in digital. Of these topics, we will be doing a deep dive into what “over-the-top” (OTT) means and examples of how streaming platforms can be leveraged as well as outlining the differences between Programmatic and Real-Time Bidding (RTB). Through our discussion, we hope to inspire you to test some new tactics and get creative with your media plans.

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Paid Media: Digital Ad Trends
Programmatic & OTT
August 19th
, 2020

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Topics
2
Programmatic:
4 | What is Programmatic?
6 | Types of Programmatic Deals
8 | Programmatic Targeting
10 | Example Programmatic Campaign: Geofencing
12 | Key Benefits of Programmatic Advertising
OTT:
14 | What is Over-The-Top (OTT) Media?
15 | The Rise of OTT
16 | Accessing OTT
17 | OTT Targeting
18 | Self Serve OTT
19 | The Future of OTT

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Programmatic
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What is Programmatic?
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The use of automation, normally through a DSP, to buy and sell digital media.
How it Works
Through a DSP (demand side platform), an advertiser can place a bid for a placement on
a publisher website for their ad to serve an impression. Publishers then use a Supply
Side Platform (SSP) to share what placements are available on their online platforms.
The DSP & SSPs sync up in real-time to conduct the auction.
While advertisers have the option of working directly with a DSP, it is more common to
purchase programmatic advertising through a vendor, as navigating the process of
purchasing inventory through a DSP is fairly complex to an untrained user. Vendors
typically offer their own platform and support services. Many vendors also work with
multiple DSPs to expand their targeting and inventory options available.

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Rise of Programmatic
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- Programmatic digital display ads
will account for roughly 85% of
digital ad spend this year and will
grow to 88% by 2021
- Video, social and native
placements will drive the
majority of this growth.

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Types of Programmatic Deals
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Open-Market RTB - Real-time bidding on impressions where the impressions are available to all
bidders
Private Marketplace (PMP) - customized, invitation-only marketplaces that provide publishers with the
ability to set aside certain ad inventory packages and sell it to a select buyer or group of buyers with an
emphasis on margin management for the seller
Private Marketplace Guaranteed (PMPG) - similar to private marketplace buys except that the
inventory is offered by one seller to only one buyer
Automated Guaranteed (AG) - automation of traditional digital direct sales often of publishers’ most
highly valued (e.g. premium) inventory.
Automated Performance (AP) - similar to Automated Guaranteed, but for these deals campaign
performance is guaranteed, rather than impressions (purchased on a CPC or CPL basis instead of CPM)
Spot Buying (SB) - happens within an exchange environment but are pre-negotiated, fixed priced

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Programmatic Targeting
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Most DSPs and programmatic vendors offer access to pre-built 3rd party audiences typically purchased from large data providers
(Epsilon, Nielsen, Datalogix, etc.)
Demographic- Utilizing demographic attributes such as gender, age, household income, education level, relationship status, etc.
Behavioral - Targets consumers based on online activity.
Retargeting - Ads that are shown to someone based on an action they have taken on your website (i.e. viewed a page, left a
product in their cart, etc.)
Geotargeting - Targeting specific areas (normally accomplished by targeting IP addresses)
Geofencing - Target micro-level geographic areas (ex: brick & mortar location). Ability to measure number of users who enter
geo-fenced area pre and post campaign, as well as users who were served an impression and entered geo-fenced area.
Device - Advertising to prospects on specific digital devices based on an understanding of how and when they may be using a
specific device
Contextual - Looks at the category or keywords of a website page a customer is viewing and then serves them ads that are
highly relevant to that content

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Creative
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The most common ads run through
programmatic are different types of
image and video banners. However,
with advancements in the digital
space, audio and OTT offerings are
becoming more popular.
Ad Types
- Image Banner
- Video Banner
- Audio/Radio (including Podcasts)
- Connected TV

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Example Campaign: GeoFencing
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Background: A car dealership, Mini of Portland, is running a display campaign across the Google Display Network, but isn’t able
to accurately measure the affect the campaign has on the number of potential customers entering their showroom. A
programmatic display campaign utilizing geofencing targeting would be the best programmatic solution to this problem.
Targeting Strategy: The car dealership provides specific coordinates of their nearby competitor locations to be used as the
target zones of the campaign. The programmatic platform will use GPS data (often acquired via 3rd party mobile apps) to
identify users who enter the target zones and mark them as eligible to receive display ad impressions from the campaign over
the next, for example, 30 days.

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Example Campaign: GeoFencing (cont.)
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Conversion Strategy: In addition to the geofence zones, Mini of Portland would provide a conversion zone (coordinates of their
showroom). The campaign would track the number of mobile devices that enter the conversion zone geofence during the
duration and in the 30 days after the campaign has ended, as well as the number of mobile devices who entered the conversion
zone AFTER receiving a display ad impression. These metrics would then be compared to the baseline number of mobile devices
tracked entering the conversion zone in the 30 days before the campaign to measure how many walk-ins were influenced by the
display campaign.

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Key Benefits of Programmatic Advertising
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Greater Control
Programmatic campaigns offer near real time reporting capabilities coupled with full transparency on where
impressions are served and performance across targeted user segments.
Better Targeting & Impression Efficiency
The vast array of targeting capabilities & user segments available to target is the key advantage of programmatic
advertising over virtually all other forms of digital advertising. Accessing 3rd party audiences opens up near-infinite
targeting options with the ability to layer targeting options such as geotargeting, behavior targeting, and purchase
propensity targeting. Layering similar targeting on other platforms is often unrealistic due to reach restrictions.
Better Reporting
Programmatic advertising reporting goes a level deeper than standard impressions, clicks, CTR, and CPM. For
example, most vendors will track view-through conversions, walk-in conversions (for geofencing campaigns), and
in-view impressions.
Larger Reach
Programmatic advertising does not require a user to be signed up to a particular social platform, or be actively
searching for select keywords. It has the potential to reach virtually every single internet user across the globe. This
allows advertisers to utilize more granular targeting criteria, while still maintaining a large reach to effectively scale
their campaigns.

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Over-the-Top Media
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What is “Over the Top” Media?
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Advertising on streaming platforms through internet
connected devices.
Examples of OTT devices include
● Smart TVs (such as Google TV and LG Electronics
Channel Plus)
● Gaming devices (such as Xbox, PlayStation, and Wii)
● Smart set-top boxes (such as Roku, Google Chromecast,
Amazon Fire TV, AppleTV)
● Devices: desktops and laptops, tablets, and
smartphones (such as iPhones, Android Phones, and
Windows phones)
● Platforms (Hulu, Netflix, Amazon Video, Disney+, etc).

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The Rise of OTT
Over the last 5 years the use of OTT advertising platforms has grown over 60% and traditional TV has seen a steady
decline in spend. With cord cutting becoming more and more prominent, there’s no better time to get into this space,
because your competition will, or may already be.
With the current climate of the world with
COVID-19 all streaming devices/services have
seen a huge increase in viewership with people
being at home more. Which makes now a
great time to be getting into this space.
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Accessing OTT
There are multiple ways to access OTT inventory through addressable buying, the most common being
programmatic ad buying, direct in platform, and publisher direct.
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OTT Targeting
It’s not always feasible to distribute content across every platform and device. What is more
important is focusing on distributing where your audience is. The goal is to get your content to the
right audience at the right time.
Understand who your audience is, where they are watching, and why. This has become even more
relevant with the ability to have even more specific targeting available, you are able to really hone in
on exactly who you want to target.
Your audience and their needs should be the central focus of your content strategy.
Targeting Options
— Behavioral Targeting
— Content Targeting
— Retargeting
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New Self Service OTT
Within the last few months Hulu has released a “self serve” OTT platform (currently in Beta), so businesses can run their
own simplified campaigns on Hulu. There are some specific restrictions and requirements.
- $500 minimum spend (this is very low compared to using other services)
- Audience targeting by gender, age, location, interests, and show genre
- Location targeting by state, DMA, city, zip, or any combination of these.
- Cannot target by specific show, only genres
- Video ads only: 15-30 seconds in length, MP4 or MOV format, and only one per campaign.
- Must be in HD and have stereo sound.
- 3 business days for approval of ads, assuming they comply with Hulu’s policies.
Currently Hulu is the only platform offering this type of service, but if it is successful and they move it out
of Beta, other platforms are sure to follow close behind.
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The Future of OTT
Emarketer predicts that OTT ad spend will hit $9 billion in the U.S. in 2020, up 28% year over year, and will reach a
staggering $14.6 billion by 2023. It also reports that 50% of U.S. agency and marketing professionals expect to
increase ad spend on OTT/connected TV channels within the next 12 months.
As there are new OTT platforms emerging all the time, it’s opening up an even broader audience, and even more
reason for people to move away from traditional TV. Especially since many of these platforms are offering or
beginning to offer Live TV options at much cheaper prices than cable companies.
Some of the up and coming platforms that have seen major growth the past year:
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