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Copyright 2019 PMG Worldwide LLC. All rights Reserved.
by Understanding the Programmatic Supply Path
Increasing Media
Efficiency
MAY 2019
Copyright 2019 PMG Worldwide LLC. All rights Reserved.
2
Supply Path - The Goal
PublisherBrand
Copyright 2019 PMG Worldwide LLC. All rights Reserved.
3
Supply Path - The Problem
Exchange Container PublisherBrand DSP
Copyright 2019 PMG Worldwide LLC. All rights Reserved.
4
Supply Path - The Problem
Exchange Container PublisherBrand DSP
Copyright 2019 PMG Worldwide LLC. All rights Reserved.
5
Supply Path - The Problem
Exchange Container PublisherBrand DSP
Copyright 2019 PMG Worldwide LLC. All rights Reserved.
6
Supply Path - The Problem
Exchange Container PublisherBrand DSP
Copyright 2019 PMG Worldwide LLC. All rights Reserved.
7
Supply Path - The Problem
Exchange Container PublisherBrand DSP
Copyright 2019 PMG Worldwide LLC. All rights Reserved.
8
Supply Path - The Solution
Exchange Container PublisherBrand DSP
Copyright 2019 PMG Worldwide LLC. All rights Reserved.
9
Supply Optimization
Control Test
50%
Retargeting Audience Split
22
Ad Exchanges
Desktop

& Mobile Web
50%
Retargeting Audience Split
4
Ad Exchanges
Desktop

& Mobile Web
Copyright 2019 PMG Worldwide LLC. All rights Reserved.
10
The Results
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
0
200
400
600
800
1000
1200
4/1/2019
4/2/2019
4/3/2019
4/4/2019
4/5/2019
4/6/2019
4/7/2019
4/8/2019
4/9/2019
4/10/2019
4/11/2019
4/12/2019
4/13/2019
4/14/2019
4/15/2019
4/16/2019
4/17/2019
4/18/2019
Control Conversions Test Conversions Control CPA Test CPA
Conversions
Conversion Rate
CPA
Clicks
Click Thru
CPC
Impressions
CPM
+9%
+7%
-8%
+6%
+5%
+6%
+1%
-1%
Copyright 2019 PMG Worldwide LLC. All rights Reserved.
11
What’s next?
Mobile vs. Desktop
Testing separate supply
paths for Mobile and
Desktop Inventory
High Priced Inventory
Exclusions
Adding domains with
abnormally high CPMs to
the blacklist in hopes of
capturing those users
elsewhere
Further Exchange
Reduction (3 or 2)
Running the current 4
exchange setup vs. a
reduced list of 2 ad
exchanges to determine if
further efficiencies can be
made.
Inventory Segmentation
by Supply Vendor
Grouping domains by
preferred ad exchange and
setting up strict swim lanes
for supply path
optimization.
Mid-Funnel & Upper-
Funnel Testing
Retest using Prospecting
audiences to determine if a
different tactic is needed
for increased scale.
Copyright 2019 PMG Worldwide LLC. All rights Reserved.
12
Practice Makes Perfect
Determine Your

Inventory Overlap
Understand how many ad
exchanges are accessing
the same inventory and at
what cost.
Validate Direct
Relationships between

SSP & Publisher
Ensure your SSP partners
have direct access to
publisher supply and are
not simply resellers.
Require Transparency
Be aware of all additional
auction mechanics that
SSPs are leveraging.
-Resolicit
-Bid Caching
-Dynamic Floors
-High Take Rates
Activate Bid Shading
Take advantage of DSP bid
data by leveraging Bid
Shading algorithms and
decisioning logic to reduce
bid prices.
Continue Testing

& Validation
Accelerate DSP learnings
with continued supply
partner testing across
formats, audiences, and
tactics. 
Copyright 2019 PMG Worldwide LLC. All rights Reserved.
13
Thank you.

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Digiday Programmatic Marketing Summit | PMG

  • 1. Copyright 2019 PMG Worldwide LLC. All rights Reserved. by Understanding the Programmatic Supply Path Increasing Media Efficiency MAY 2019
  • 2. Copyright 2019 PMG Worldwide LLC. All rights Reserved. 2 Supply Path - The Goal PublisherBrand
  • 3. Copyright 2019 PMG Worldwide LLC. All rights Reserved. 3 Supply Path - The Problem Exchange Container PublisherBrand DSP
  • 4. Copyright 2019 PMG Worldwide LLC. All rights Reserved. 4 Supply Path - The Problem Exchange Container PublisherBrand DSP
  • 5. Copyright 2019 PMG Worldwide LLC. All rights Reserved. 5 Supply Path - The Problem Exchange Container PublisherBrand DSP
  • 6. Copyright 2019 PMG Worldwide LLC. All rights Reserved. 6 Supply Path - The Problem Exchange Container PublisherBrand DSP
  • 7. Copyright 2019 PMG Worldwide LLC. All rights Reserved. 7 Supply Path - The Problem Exchange Container PublisherBrand DSP
  • 8. Copyright 2019 PMG Worldwide LLC. All rights Reserved. 8 Supply Path - The Solution Exchange Container PublisherBrand DSP
  • 9. Copyright 2019 PMG Worldwide LLC. All rights Reserved. 9 Supply Optimization Control Test 50% Retargeting Audience Split 22 Ad Exchanges Desktop
 & Mobile Web 50% Retargeting Audience Split 4 Ad Exchanges Desktop
 & Mobile Web
  • 10. Copyright 2019 PMG Worldwide LLC. All rights Reserved. 10 The Results $0.00 $50.00 $100.00 $150.00 $200.00 $250.00 0 200 400 600 800 1000 1200 4/1/2019 4/2/2019 4/3/2019 4/4/2019 4/5/2019 4/6/2019 4/7/2019 4/8/2019 4/9/2019 4/10/2019 4/11/2019 4/12/2019 4/13/2019 4/14/2019 4/15/2019 4/16/2019 4/17/2019 4/18/2019 Control Conversions Test Conversions Control CPA Test CPA Conversions Conversion Rate CPA Clicks Click Thru CPC Impressions CPM +9% +7% -8% +6% +5% +6% +1% -1%
  • 11. Copyright 2019 PMG Worldwide LLC. All rights Reserved. 11 What’s next? Mobile vs. Desktop Testing separate supply paths for Mobile and Desktop Inventory High Priced Inventory Exclusions Adding domains with abnormally high CPMs to the blacklist in hopes of capturing those users elsewhere Further Exchange Reduction (3 or 2) Running the current 4 exchange setup vs. a reduced list of 2 ad exchanges to determine if further efficiencies can be made. Inventory Segmentation by Supply Vendor Grouping domains by preferred ad exchange and setting up strict swim lanes for supply path optimization. Mid-Funnel & Upper- Funnel Testing Retest using Prospecting audiences to determine if a different tactic is needed for increased scale.
  • 12. Copyright 2019 PMG Worldwide LLC. All rights Reserved. 12 Practice Makes Perfect Determine Your
 Inventory Overlap Understand how many ad exchanges are accessing the same inventory and at what cost. Validate Direct Relationships between
 SSP & Publisher Ensure your SSP partners have direct access to publisher supply and are not simply resellers. Require Transparency Be aware of all additional auction mechanics that SSPs are leveraging. -Resolicit -Bid Caching -Dynamic Floors -High Take Rates Activate Bid Shading Take advantage of DSP bid data by leveraging Bid Shading algorithms and decisioning logic to reduce bid prices. Continue Testing
 & Validation Accelerate DSP learnings with continued supply partner testing across formats, audiences, and tactics. 
  • 13. Copyright 2019 PMG Worldwide LLC. All rights Reserved. 13 Thank you.