Programmatic: What Advertisers can do to be Audit-Proof ? The Presentation was given to Italian Advertisers attending the UPA Programmatic Buying Course, by Lens Academy. Among key topics: . 5 types of media audit categories . How media audit categories apply to programmatic . Most common issues in programmatic . How to solve or prevent issues . Arbitrage: what can be done . The Audit-Proof Advertiser: 7 Golden Rules

1. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Auditing Programmatic
Goal Programmatic: what Advertisers can do to be Audit-Proof
Contents • 5 types of media audit categories
• How media audit categories apply to programmatic
• Most common issues in programmatic
• Issue, Solution, Prevention
• Arbitrage: what can be done
• The Audit-Proof Advertiser: 7 Golden Rules
• Q&A
Presenters Paola Furlanetto & Nene Harrison

2. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Compliance
Procedure
Check
5 Types of Media Audit Categories
Benchmarking
Performance
Over Time
Accuracy
Check
Comparison
Consistency Check

3. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
5 Types of Media Audit Categories

4. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Media Auditing – a Traditional View
Approach Types Details Examples
Comparison
Compliance
1. Existing rules or law Alcohol, financial, kids etc
2. Commitment
Contract, pitch guarantees
etc
Benchmarking
3. Vs an average/ a norm
(Norm is based on pool of advertisers selected
before the analysis). Both cost and quality should
be part of the audit
Typical TV audit
Performance over
time
4. Actual vs previous year’s performance Frequently part of company
dashboard. An auditor may
be needed for normalization
(format, target etc)
5. Actual vs Objectives (typically it requests some
normalization to be agreed)
Consistency
check
Procedure check
6. It applies either to a work flow or a document.
Checking if all necessary steps are performed
properly
Work flow between
agency and the advertisers
Accuracy check
7. Facts and figures are checked, to be sure they
are consistent
Pitch presentations

5. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Media Auditing – a Programmatic View

6. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Media Auditing – a Programmatic View

7. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Most Common Issues

8. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Technology
• Fraud
• Ad verification differences
Media Exposure
• Viewability
Political
• Conflict of interest
• First party data usage
Economical
• Overall cost
calculation
• Arbitrage
Common Issues

9. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Issues, Solutions, Prevention

10. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Issue #1: Fraud
Key issue: Impressions not served to human users
Requirement & cost: Implement an ad verification tool
Impact on advertiser:
Up to 40% wastage depending on publisher / inventory
source
Solution: Blocking / reimbursement
Prevention:
Publisher / agencies which supply media with fraud are
banned

11. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Issue # 2: Inconsistent ad verification methodologies
Key issue: Range of vendors each with different methodologies
Requirement & cost:
Detailed investigation of platform capabilities, beginning
with IAB / MRC accredited vendors
Impact on advertiser:
Vendors reported viewability can vary by up to 25% for the
same set of inventory
Solution: Review of available vendors
Prevention:
This is an industry-wide issue requiring further research &
regulation

12. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Issue # 3: Lack of operational transparency
Key issue:
A complex ecosystem - agencies planning AND selling
media, with vendors selling AND delivering media
Requirement & cost:
Advertisers should ensure that they have full knowledge of
the media landscape
Impact on advertiser: Varies by advertiser
Solution:
Request all players to disclose all financial interests in the
digital & ad tech ecosystem
Prevention:
Contract negotiations and pitches are an opportunity to
make clear that you do not accept arbitrage or lack of
transparency. Industry bodies can also provide support.

13. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Issue # 4: Lack of commercial transparency
Key issue:
Agencies group together costs for media, data, technology
& staff
Requirement & cost: There is no cost for asking the right questions!
Impact on advertiser: Varies by advertiser
Solution: Demand full transparency from your media partners
Prevention:
Ongoing negotiation with the agency. Many agency groups
have made alternative transparent models available.

14. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Issue # 5: Undeveloped first-party data usage
Key issue:
Using unique first-party data to enhance media
effectiveness
Requirement & cost: Data management technology and resource
Impact on advertiser:
Varies by advertiser (but we have seen evidence of 12%
improvements in media effectiveness)
Solution:
Implement technology to gather, harmonise and leverage
your own first-party data
Prevention:
Prevention is based on a strategy to find the perfect
balance between risk and benefit

15. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Issue, Solution, Prevention - summary
Issue Involving Requirement & cost
Impact on
advertiser
Solution
Prevention
(the hard way)
Fraud
Impressions not
served to human
Ad verification
tool
Up to 40% wastage
depending on publisher /
inventory source
Blocking /
reimbursement
Publisher / agencies which
supply media with fraud are
banned
Inconsistent ad
verification
methodologies
Range of vendors each
with different
methodologies
Investigation of platform
capabilities, beg-inning
with IAB / MRC
accredited vendors
Vendors reported viewability
can range by up to 25% for
the same set of inventory
Review of available
vendors
Industry-wide issue requiring
further research & regulation
Lack of
operational
transparency
Complex ecosystem -
agencies planning
AND selling media,
vendors selling AND
delivering media
Full knowledge of the
media landscape
Varies by advertiser
All players to disclose
all financial interests in
the digital & ad tech
ecosystem
Contract negotiations and
pitches to make clear that you
do not accept arbitrage or lack
of transparency. Industry
bodies provide support
Lack of
commercial
transparency
Agencies group
together costs for
media, data, technology
& staff
No cost
Impact of lack
of transparency unknown
Full
transparency
Ongoing negotiation with the
agency. Some agency groups
have made alternative
transparent models available.
Undeveloped
first-party data
usage
Using unique first-
party data
to enhance media
effectiveness
Data management
technology
and resource
Varies by advertiser
(evidence of 12%
improvements in media
effectiveness)
Find the best ways to
gather, harmonise and
leverage your own
first-party data
Prevention is based on a
strategy to find the perfect
balance between risk and
benefit. (see data in
econometric model)

16. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Arbitrage - what can be done?
Contract Associations
Multinational
approach
+ Deal

17. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
7 Golden Rules

18. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
7 Golden Rules for Audit-Proof advertising
1 Your campaigns are fraud-free
2 You protect your own data AND use it to inform marketing decisions
3
You have full knowledge of your programmatic technology,
including all verification, audit and ancillary costs
4
Your invoices show detailed cost breakdown (media, service, technology &
data)
5 Your campaign KPIs are in line with your marketing objectives
6
You have viewability targets that your agency and publishers have
guaranteed to deliver, and regularly check them
7
You have a clear view of your programmatic
performance relative to other channels
And…
You are aware of your agency’s conflicting competencies.
And accept them or move towards new contract / solutions / supports

19. Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016
Buon lavoro
Thank you