THE EVOLUTION OF
DIGITAL BUYING
Introduction to programmatic advertising
By Amal Al Homosany
TRADITIONAL BUYING MODEL INVOLVED 2 PARTIES
ONLY
Advertisers/ agencies and publishers negotiated inventory and budgets over a
given period of time and ads were run.
Brands Agencies
BUT THEN, THE PROCESS BECAME COMPLEX
More publishers and more inventory became available, CPM inflation, unsold
inventory for publishers and more FRAGMENTATION of audience habits
Brands Agencies
THEN AD NETWORKS CAME ALONG AND
AGGREGATED PUBLISHERS INVENTORY INTO
PACKAGES
Brands Agencies
Google Display Network
Yahoo Network
Exponential Network
Value Click Network
Advantages:
Advertisers: Centralized buy, lower
cost
Publishers: Revenue from selling
inventory at scale
Disadvantages:
Advertisers: less transparency and
control, less relevance with audience,
Publishers: Display fragmentation,
unsold inventory
YOU COULD REACH A LOT OF PEOPLE, BUT NOT
ALWAYS THE RIGHT PEOPLE
The lack of relevance, transparency and robust data led to the birth of
PROGRAMMATIC BUYING
Audience buying
Audience without
proxy
Contextual buying
Content as proxy for
audience
SO WHAT IS PROGRAMMATIC BUYING?
A way of using technology to
automate the buying and selling of
media
In simple terms
SOURCE:
WHAT IS REAL TIME BIDDING?
SOURCE:
buying and selling of ad impressions on an
online auction marketplace (or ad
exchange) in real time
Allows showing different ads to different users based on DATA
about those users
Right
Ad
Right
User
Right
Time
SO HOW DOES RTB WORK?
Flat CPM
Value all people equally
Programmatic Dynamic
CPM
Value people differently
SO IS RTB & PROGRAMMATIC THE SAME THING?
RTB is a type of programmatic advertising; but not all programmatic
advertising uses RTB.
Some “programmatic” or technology-driven ad platforms let publishers sell
their inventory in advance for a fixed price, as opposed to auctioning it off.
Programmatic Buying
Open
Auction
Invitation
Only
Auction
Unreserved
fixed rate
Programmatic
Premium
A CAMPAIGN BOUGHT PROGRAMMATICALLY IS
EXECUTED USING MULTIPLE BUYING MODELS
Transparency, 1st
party publisher data,
3rd party imp data,
fixed CPM
Limited transparency,
Scale, 3rd party imp
data, variable CPM
Transparency, 1st party
publisher data, 3rd party
imp data, fixed CPM,
fixed inventory
Programm
atic
Premium
VIDEO
SOME RTB TERMINOLOGY
DSP (Demand side platform): uses RTB from one or more Ad
Exchanges to access inventory and make buying decisions
Ad Exchange: platform that makes display inventory available
(from different ad networks) for purchase from DSPs via RTB
SSP: platform that enables publishers to manage their ad
impression inventory and maximize revenue from networks and
exchanges
RTB HAS REACHED THE REGION & WILL CONTINUE TO GROW
By 2017, up to 50% of digital ad spend will be bought programmatically
Source: International Data Corporation (IDC), "Real-Time Bidding in the United States and Worldwide, 2011-2016"
sponsored by PubMatic, Oct 23, 2013
SO WHY
PROGRAMMATIC
BUYING?
DATA DRIVEN AUDIENCE INTELLIGENCE
CONTENT OPTIMIZATION, RELEVANCE
AND USER EXPERIENCE
SCALE & SPEED THROUGH PROCESS
AUTOMATION
USING MULTIPLE BUYING STRATEGIES ACROSS
VARIOUS CHANNELS
Mobile|Display|Video|Social
CHALLENGES OFAPROGRAMMATIC ECOSYSTEM
PUBLISHERS FEAR DIMINISHED PRICING
POWER, MARGINS
VIEWABILITY & AVAILABILITY OF PREMIUM
INVENTORY
FORMAT PROLIFERATION
AGENCIES RESPONDED TO THE BUYING MODEL EVOLUTION BY
CREATING AGENCY TRADING DESKS
•Is a massive media buyer and reseller for display media
• Usually an independent unit within an agency network
• A dynamic way to purchase audiences
• Media is purchased in real time rather than from pre-procured inventory
• Takes search (an auction based model) and applies that to display media;
in a real time fashion like a stock exchange
• A platform that uses data and technology to help advertisers more
effectively purchase audiences at scale across digital media.
AMNET IS A SPECIALTY BRAND OF DENTSU
AEGIS NETWORK
BY UNDERSTANDING HOW CONSUMER BEHAVIOUR IS
CHANGING…
The consumer journey is
no longer linear.
Breaking up the funnel
doesn’t allow you to fully
understand consumption
habits.
Traditional Funnel Dynamic RTB Funnel
Awareness
Advertising
“In-Market”
Data
Retargeting
£
COMPRISED OF PEOPLE, EXPERIENCE & EXPERTISE…
*Technology-Agnostic:
*Scale: Access to 20+
Exchanges & SSP’s
*Private Marketplaces
*Screen for ad clutter,
content, & viewability
*White/Black list
*Pre-bid integration
*Centralized Data
Management
*Audience Discovery:
*Audience Insights
*Reduced Wastage
*Defining audiences
*Contextual &
Semantic targeting
*Dedicated Client
Services team :
*Digital Intelligence:
*Data Transparency:
IT’S KEY TO NOTE THAT
AMNET ISN’T ABOUT REMNANT INVENTORY AND CHEAP
CLICKS. ITS ABOUT EFFICIENCY & SCALE
PREMIUM:
Most of the regional and
international websites are
connected
RICH MEDIA:
High Impact site skinning,
takeover, billboards,
video ads etc.
MULTISCREEN:
PC, tablet, mobile and
even IPTV
TARGETTED:
Accurate and real-time
targeting
DATA DRIVEN: Majority
market players ready for
partnerships to share
data
ALONG WITH OPEN EXCHANGES, WE HAVE ACCESS
TO PREMIUM PUBLISHERS
HIGHEST LIQUIDITY MARKETS:
• Egypt has 6.5b monthly impressions
• Saudi Arabia has 8b monthly impressions
• UAE has 6b monthly impressions
BOTH HIGH-IMPACT AND PERFORMANCE DRIVEN
ADS CAN BE BOUGHT PROGRAMMATICALLY
Mobile interstitials Pre roll videosBillboard
AMNET HAS A STRINGENT PLANNING
FRAMEWORK
KPI’s
Affluent Arab males and females
interested in fashion, luxury
lifestyle, travel cars etc.
Searching for luxe holidays, 5* star
resorts, 1st & bus class travel etc.
Male & Female targeted fashion,
lifestyle, entertainment websites
Online shopper, in market for
expensive air tickets, hotels, dining
& entertainment etc.
Users who have visited client
website pages
Behavioral
Search
retargeting
Custom
environments
Purchase intent
targeting
Remarketing
Targeting strategies Audience discovery ChannelsGoal 3 421
DATA IS KEY AND IS USED CLEVERLY
TO MEET CAMPAIGN GOALS
Campaign Objective Primary KPI’s
And Goals
Success Measurements:
Value generated
Digital media
metrics
Drive
Awareness
Reach consumers at
scale
Delivered Imps,
Unique users, Cost
efficiency,
eCPM, eCPC
Increase
Engagement
Product pages,
Video views
Pages viewed, time
spent, video plays
eCPC, CPV,
Bounce rate
Conversions Downloads, Entries,
purchase
Forms and quotes
submitted, app
usage, ROI
eCPA, CPD,
CPB
IN ORDER TO BUILD A SINGLE VIEW OF THE
CUSTOMER
Anonymous User 111000111002
• Data on users who have visited advertiser
website and their browsing behaviours.
• Purchased from 3rd party data providers,
based on intent, likelihood and potential
• Real-time search query behaviour reflecting
consumer intent and behaviour on-site.
1ST PARTY
DATA
3rd Party
Data
Search
• Campaign data generated from responses to
advertising on display, mobile and video.Media
Campaign
Data
ACTIVATED AND OPTIMIZED IN REAL TIME
Customer X
• She is 28 years old, married and lives in
Dubai, United Arab Emirates
• She is a university graduate with high
disposable income working in the Finance
sector.
• She is a travel enthusiast and a marathon
runner with an active social life which is
influenced by her love for fashion.
• She visits sites like TimeOut Dubai, Ahlan,
Style.com, BBC & stays in touch with her
family through Facebook and skype
Demo/Geo
Psycho
Behaviour
Site/
Context
• Her device of choice is an iPhone, laptop
during work hours and a Samsung Galaxy
tab in the evening while TV.Platform
IN ORDER TO PROVIDE VALUABLE AUDIENCE INSIGHTS
Deep dive insights are provided on a quarterly or end of campaign basis*
Deep dive reports are a result of extensive site tagging and availability of 1st
party data
WHAT’S NEXT FOR PROGRAMMATIC
Lookalike Modeling
Matching audience members across mobile
and other devices
Non-cookie solutions
THANK YOU
Amal Al Homosany
Amal.alhomosany@carat.com
+2012 2 3953345

Cairo Cristal Academy - Amal Al Homosany, Carat Egypt

  • 1.
    THE EVOLUTION OF DIGITALBUYING Introduction to programmatic advertising By Amal Al Homosany
  • 2.
    TRADITIONAL BUYING MODELINVOLVED 2 PARTIES ONLY Advertisers/ agencies and publishers negotiated inventory and budgets over a given period of time and ads were run. Brands Agencies
  • 3.
    BUT THEN, THEPROCESS BECAME COMPLEX More publishers and more inventory became available, CPM inflation, unsold inventory for publishers and more FRAGMENTATION of audience habits Brands Agencies
  • 4.
    THEN AD NETWORKSCAME ALONG AND AGGREGATED PUBLISHERS INVENTORY INTO PACKAGES Brands Agencies Google Display Network Yahoo Network Exponential Network Value Click Network Advantages: Advertisers: Centralized buy, lower cost Publishers: Revenue from selling inventory at scale Disadvantages: Advertisers: less transparency and control, less relevance with audience, Publishers: Display fragmentation, unsold inventory
  • 5.
    YOU COULD REACHA LOT OF PEOPLE, BUT NOT ALWAYS THE RIGHT PEOPLE The lack of relevance, transparency and robust data led to the birth of PROGRAMMATIC BUYING Audience buying Audience without proxy Contextual buying Content as proxy for audience
  • 7.
    SO WHAT ISPROGRAMMATIC BUYING? A way of using technology to automate the buying and selling of media In simple terms SOURCE:
  • 8.
    WHAT IS REALTIME BIDDING? SOURCE: buying and selling of ad impressions on an online auction marketplace (or ad exchange) in real time Allows showing different ads to different users based on DATA about those users Right Ad Right User Right Time
  • 9.
    SO HOW DOESRTB WORK? Flat CPM Value all people equally Programmatic Dynamic CPM Value people differently
  • 10.
    SO IS RTB& PROGRAMMATIC THE SAME THING? RTB is a type of programmatic advertising; but not all programmatic advertising uses RTB. Some “programmatic” or technology-driven ad platforms let publishers sell their inventory in advance for a fixed price, as opposed to auctioning it off. Programmatic Buying Open Auction Invitation Only Auction Unreserved fixed rate Programmatic Premium
  • 11.
    A CAMPAIGN BOUGHTPROGRAMMATICALLY IS EXECUTED USING MULTIPLE BUYING MODELS Transparency, 1st party publisher data, 3rd party imp data, fixed CPM Limited transparency, Scale, 3rd party imp data, variable CPM Transparency, 1st party publisher data, 3rd party imp data, fixed CPM, fixed inventory Programm atic Premium
  • 12.
  • 13.
    SOME RTB TERMINOLOGY DSP(Demand side platform): uses RTB from one or more Ad Exchanges to access inventory and make buying decisions Ad Exchange: platform that makes display inventory available (from different ad networks) for purchase from DSPs via RTB SSP: platform that enables publishers to manage their ad impression inventory and maximize revenue from networks and exchanges
  • 14.
    RTB HAS REACHEDTHE REGION & WILL CONTINUE TO GROW By 2017, up to 50% of digital ad spend will be bought programmatically Source: International Data Corporation (IDC), "Real-Time Bidding in the United States and Worldwide, 2011-2016" sponsored by PubMatic, Oct 23, 2013
  • 15.
  • 16.
  • 17.
  • 18.
    SCALE & SPEEDTHROUGH PROCESS AUTOMATION
  • 19.
    USING MULTIPLE BUYINGSTRATEGIES ACROSS VARIOUS CHANNELS Mobile|Display|Video|Social
  • 20.
  • 21.
    PUBLISHERS FEAR DIMINISHEDPRICING POWER, MARGINS
  • 22.
    VIEWABILITY & AVAILABILITYOF PREMIUM INVENTORY
  • 23.
  • 24.
    AGENCIES RESPONDED TOTHE BUYING MODEL EVOLUTION BY CREATING AGENCY TRADING DESKS •Is a massive media buyer and reseller for display media • Usually an independent unit within an agency network • A dynamic way to purchase audiences • Media is purchased in real time rather than from pre-procured inventory • Takes search (an auction based model) and applies that to display media; in a real time fashion like a stock exchange • A platform that uses data and technology to help advertisers more effectively purchase audiences at scale across digital media.
  • 26.
    AMNET IS ASPECIALTY BRAND OF DENTSU AEGIS NETWORK
  • 27.
    BY UNDERSTANDING HOWCONSUMER BEHAVIOUR IS CHANGING… The consumer journey is no longer linear. Breaking up the funnel doesn’t allow you to fully understand consumption habits. Traditional Funnel Dynamic RTB Funnel Awareness Advertising “In-Market” Data Retargeting £
  • 28.
    COMPRISED OF PEOPLE,EXPERIENCE & EXPERTISE… *Technology-Agnostic: *Scale: Access to 20+ Exchanges & SSP’s *Private Marketplaces *Screen for ad clutter, content, & viewability *White/Black list *Pre-bid integration *Centralized Data Management *Audience Discovery: *Audience Insights *Reduced Wastage *Defining audiences *Contextual & Semantic targeting *Dedicated Client Services team : *Digital Intelligence: *Data Transparency:
  • 29.
    IT’S KEY TONOTE THAT
  • 30.
    AMNET ISN’T ABOUTREMNANT INVENTORY AND CHEAP CLICKS. ITS ABOUT EFFICIENCY & SCALE PREMIUM: Most of the regional and international websites are connected RICH MEDIA: High Impact site skinning, takeover, billboards, video ads etc. MULTISCREEN: PC, tablet, mobile and even IPTV TARGETTED: Accurate and real-time targeting DATA DRIVEN: Majority market players ready for partnerships to share data
  • 31.
    ALONG WITH OPENEXCHANGES, WE HAVE ACCESS TO PREMIUM PUBLISHERS HIGHEST LIQUIDITY MARKETS: • Egypt has 6.5b monthly impressions • Saudi Arabia has 8b monthly impressions • UAE has 6b monthly impressions
  • 32.
    BOTH HIGH-IMPACT ANDPERFORMANCE DRIVEN ADS CAN BE BOUGHT PROGRAMMATICALLY Mobile interstitials Pre roll videosBillboard
  • 33.
    AMNET HAS ASTRINGENT PLANNING FRAMEWORK KPI’s Affluent Arab males and females interested in fashion, luxury lifestyle, travel cars etc. Searching for luxe holidays, 5* star resorts, 1st & bus class travel etc. Male & Female targeted fashion, lifestyle, entertainment websites Online shopper, in market for expensive air tickets, hotels, dining & entertainment etc. Users who have visited client website pages Behavioral Search retargeting Custom environments Purchase intent targeting Remarketing Targeting strategies Audience discovery ChannelsGoal 3 421
  • 34.
    DATA IS KEYAND IS USED CLEVERLY
  • 35.
    TO MEET CAMPAIGNGOALS Campaign Objective Primary KPI’s And Goals Success Measurements: Value generated Digital media metrics Drive Awareness Reach consumers at scale Delivered Imps, Unique users, Cost efficiency, eCPM, eCPC Increase Engagement Product pages, Video views Pages viewed, time spent, video plays eCPC, CPV, Bounce rate Conversions Downloads, Entries, purchase Forms and quotes submitted, app usage, ROI eCPA, CPD, CPB
  • 36.
    IN ORDER TOBUILD A SINGLE VIEW OF THE CUSTOMER Anonymous User 111000111002 • Data on users who have visited advertiser website and their browsing behaviours. • Purchased from 3rd party data providers, based on intent, likelihood and potential • Real-time search query behaviour reflecting consumer intent and behaviour on-site. 1ST PARTY DATA 3rd Party Data Search • Campaign data generated from responses to advertising on display, mobile and video.Media Campaign Data
  • 37.
    ACTIVATED AND OPTIMIZEDIN REAL TIME Customer X • She is 28 years old, married and lives in Dubai, United Arab Emirates • She is a university graduate with high disposable income working in the Finance sector. • She is a travel enthusiast and a marathon runner with an active social life which is influenced by her love for fashion. • She visits sites like TimeOut Dubai, Ahlan, Style.com, BBC & stays in touch with her family through Facebook and skype Demo/Geo Psycho Behaviour Site/ Context • Her device of choice is an iPhone, laptop during work hours and a Samsung Galaxy tab in the evening while TV.Platform
  • 38.
    IN ORDER TOPROVIDE VALUABLE AUDIENCE INSIGHTS Deep dive insights are provided on a quarterly or end of campaign basis* Deep dive reports are a result of extensive site tagging and availability of 1st party data
  • 39.
    WHAT’S NEXT FORPROGRAMMATIC Lookalike Modeling Matching audience members across mobile and other devices Non-cookie solutions
  • 40.
    THANK YOU Amal AlHomosany Amal.alhomosany@carat.com +2012 2 3953345