Programmatic ad buying involves automated buying and selling of digital ad space using real-time bidding and data. It allows for precise targeting, reach, cost efficiencies, and optimization. While concerns around viewability, transparency, and fraud exist, programmatic now accounts for the majority of US digital display spending and is expanding to new channels. Marketers must work to understand the technology, partners, and ensure quality and brand safety in their programmatic campaigns.

1. Programmatic Ad Buying:
What every marketer needs to know now
June 2017

2. A Programmatic Primer

3. Agenda
Programmatic Media Buying
 The Basics
 The Benefits
 The Technology
 More Practical Knowledge
3
Christine Kubisztal
Senior Manager of Integrated Media

4. Programmatic media buying is the
gluten of the advertising industry
Jimmy Kimmel, late-night TV host

5. Programmatic Media Buying: The Basics
 Programmatic media buying is the automation of media buying and selling
processes and decisions that is enhanced through data.
 It is a media buying transaction that:
 May or may not use real-time bidding (RTB)
 Usually includes participation with an online auction of inventory
 Relies on data and technology to be successful
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6. Programmatic Media Buying is the New Reality
 $33B in spend in 2017
 4 out of every 5 U.S. display ad
dollars will transact through
programmatic means this year
 Expected to increase to 84% by 2019
6 Source: eMarketer, April 2017
Note: digital, display ads transacted via an API, including everything from publisher-erected APIs to more
standardized RTB technology; includes native ads and ads on social networks like Facebook and Twitter;
includes advertising that appears on desktop/laptop computers, mobile phones, tablets and other
internet-connected devices; *includes banners, rich media, sponsorships, video and other.
Source: eMarketer, April 2017

7. Marketers Are Adopting Programmatic Ad Buying
7 Source: ANA/Forrester Programmatic Survey March 2016
of marketers have made a programmatic
ad buy in the past year
 Vs. 35% in 2014
79%
31% of marketers have added positions in their
marketing departments to manage and
oversee programmatic media buying functions
Most marketers are using an agency or agency
trading desk to perform programmatic
media buying on their behalf
15% of marketers have brought programmatic
media buying capabilities in-house

8. 8
Programmatic Media Buying: Let’s Clear Some Things Up
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Programmatic
Media Buying
Scalable across all
media channels
Retargeting/Remarketing
Cheap inventory or impressions
Transparent media buys
Replace humans
media buying process

9. Test Your Knowledge:
Remember…the key to programmatic media buying is that it incorporates
some form of Real-Time Bidding in an automated transaction
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FALSE!
True or False? You Can Buy Print Media Programmatically.

10. Programmatic: It’s Not Just for Banner Ads Anymore!
10
Of the following, which media channels can be bought programmatically?
A. Television
B. Mobile
C. Native Content
D. Paid Social
E. Streaming Audio (i.e., Spotify, Pandora)

11. Answer: All of them!
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TV & VIDEO
RADIO &
AUDIO
DMP SSP ADN
NATIVE
CONTENT
PAID
SOCIAL
MOBILE

12. What Are the Benefits of Programmatic Media Buying to Advertisers?
 Precise Targeting
 Reach and Scale
 Cost efficiencies
 Real-time optimization
 Ability to leverage third-party customer data
 Service Options: Self-Serve or Managed
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13. Programmatic Media Buying in Action: Maximizing Return on Investment
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Direct
Response
Campaigns
 Lead Generation
 Customer Acquisition
 Ecommerce
Improves
Marketing Return
on Investment
 Limited Budgets
 Performance-based:
CPC, CPL, CPA, CPE
 Direct Metrics

14. Programmatic Media Buying Is Tailor-Made for B2B Marketing
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Buying Niche
Audiences
Geo-Targeting
Requirements
 Custom Targeting
 Beyond Age/Demo
 Occupation, Responsibility, Roles
 Specific Geographies
 Block-level Data
 Sub-zip Code
 Eliminates Waste

15. Innovative Data Integrations Offer Unprecedented Targeting and Reporting
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Multiscreen
Consumption
Third-Party
Data Integration
 Device Agnostic
 Digital Behavior
 Optimizes to Screen
 Customer Databases
 Loyalty Programs
 Acxiom, Exelate, Datalogix, Epsilon

16. The Technology of
Programmatic Media Buying

17. You Need to Know Your Alphabet: A World of Many Acronyms
17
Set price to purchase
an impression
RTB
Real-
Time
Bidding
DSP
i.e., Google Double-
click Bid Manager
Demand
Side
Platform
Integrates third-party data
DMP
Data
Management
Platform

18. 18
SSP
A technology platform
that enables publishers to
manage their ad inventory
Supply
Side
Provider
An invitation-only auction
where publisher(s) invite a
select number of buyers to
bid on its inventory
PMP
Private
Market
Place
BSP
Buy
Side
Platform
ATD
Agency
Trading
Desk
Also known as a DSP; this
allows buyers to manage
multiple ad exchange and data
exchange accounts in one place
A media buying and
reselling function;
sometimes an
independent unit
You Need to Know Your Alphabet: A World of Many Acronyms (Cont.)

19. At a minimum, a true programmatic media buy has the following
elements
19
RTB DSP BSPAdvertiser Publisher
Ad
Server
Ad
Server

20. The Programmatic Ad Transaction Takes Less Than 17 Seconds
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User clicks
on a website
1
Publisher of the page
puts the ad impression
up for bid in an auction
Ad marketplace holds
an auction among
competing bidders
Advertiser with winning
bid wins the impression
and placement
Ad is delivered
to the website
5
Customer clicks on the
ad and the advertiser
converts them
6
2 3
4 5

21. Ad
Server
BUYING SOLUTIONS
Behind the Scenes: The Programmatic Media-Buying Ecosystem
21
Advertiser
Investment
Brands
Trade
Desks
DSPS
Networks
SSP
Audience
METRICS
EXCHANGE
DEMAND SUPPLY
$$$
Advertiser
Media
Agency
Affiliate
Network,
Sales House
Publisher
Ad
Networks
DATA
REAL-TIME BIDDING
Ad
Server
Source: IAB, 2016

22. The Programmatic Media Marketplace: Different Ways to Buy
22
Source: IAB, 2016
OPEN EXCHANGE
Computer-run, real-time bidding
Category of sites,
but not specific sites
Pros: Abundant inventory
and most cost-efficient
Cons: No transparency
Examples: OpenX,
Google DBM, Microsoft Ads
Best for: High-conversion goals
PRIVATE MARKETPLACE
Invitation-only
Websites are known and chosen;
pre-negotiated rates
Pros: Premium inventory;
data integrations
Cons: Can be higher CPMS,
run of site (ROS)
Examples: Meredith,
Hanley-Wood, Amazon
Best for: Niche targets
PROGRAMMATIC DIRECT
Guaranteed impressions
Specific publishers
and placements
Pros: Top-tier inventory and
premium placements; quality
Cons: Higher cost; fixed CPM
Examples: ESPN.com,
Walmart.com, Huffington
Best for: Visibility; quality

23. Programmatic Media Buying Tactics Can Take Multiple Forms
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RETARGETING
Target is captured
via digital tracking
Ads are served back
to exposed target
until action is taken
Best for: Prospecting &
Conversion
ALGORITHM
Deploys lookalikes
or data modeling
Ads are served to prospects
fitting targeting criteria
Best for: Prospecting &
Acquisition
ACTION BASED
Targets actions or behaviors
Ads are served based
on activity: search,
emails, social, apps
Best for: Buy nurturing and
CRM
All Should Be Combined to Maximize Programmatic’s Capabilities

24. The Programmatic Landscape: 2009
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25. 25
The Programmatic Landscape: 2017
And More!
 Video
 Mobile
 Social
 Native
 IoT

26. Eye to the Future: The Next Big Tactics on the Horizon
Dynamic Ad Creative
 Creative can change on the fly based on information about the
user, their behavior, location or context
Artificial Intelligence
 Uses a prediction management platform to forecast how each
new campaign can best be optimized in order to achieve optimal
results before bids are even made
Header Bidding
 A different type of RTB auction conducted by publishers outside of
their primary ad server, which allows advertisers “first look”
impressions at the highest priority
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27. Programmatic Media Buying:
Practical Knowledge

28. Programmatic Media Buying Concerns: Three Things You Need to Know
28
How Are Viewable
Impressions Measured?
What Is the Supply Chain
and SSP Integrations?
How Is the Quality of
Ad Buys Guaranteed?
An ad which appears at
least 50% on screen for
more than one second
How ad inventory is
sourced and procured;
especially in open RTB
Auditing, compliance and
monitoring of publishers
and partners
1. Viewability 2. Transparency 3. Fraud

29. Programmatic in the Headlines
29 Source: ANA/Forrester Programmatic Survey March 2016
Full transparency of media costs
Quality viewability and brand safety
67% of marketers buying programmatic are concerned
about buying fraudulent or unviewable inventory
 Fraud: Non Human Traffic (NHT) and Bots
 Up to 37% of all programmatic media buys are Bots
($7.2B lost!)
55% of marketers are concerned with lack of
visibility to the media supply chain

30. Marketers Are Being Proactive to Become Programmatic Literate!
30 Source: ANA/Forrester Programmatic Survey March 2016
of marketers are requiring detailed campaign
guidelines from their partners62%
50% of marketers are
updating blacklists
45% of marketers are using
target white lists
50% have brought in technology
to monitor for Bots
15% have created private
marketplaces

31. What Can You Do Right Now?
31
Develop a set of desired brand content adjacencies.
This can be as simple as detailing what environments and
content are acceptable for your brand, and which are not
Do:
Do:
Do:
Ask to see a list of digital domains from your publishers on
a regular basis. Perform a spot check of some of the most
purchased domains. Update White/Blacklists as needed
Learn about verification and digital auditing. Digital media
accountability has become its own industry in the past few
years. Double-Verify, Integral Ad Science, and White Ops
are just a few select partners

32. Steps That CBD Media Services Takes When Vetting Programmatic Partners
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Partner is briefed on acceptable environments and/or
content specific to client and goals. These guidelines
are included in the publisher/partner agreements
Quality:
Supply-side partners and pricing structure are
evaluated against objectives and KPIs
Financial:
Does the publisher have direct partnerships with
audit partners? Seals of approvals and verification?
Brand Safe:
Innovation: Enhanced data and reporting; unique fit for client or
campaign goals

33. Key Takeaways

34. Key Takeaways
 Programmatic media buying is an automated transaction enabled by technology
 Programmatic is the future of media; eventually the majority of media channels
will be able to be planned and purchased programmatically
 The programmatic media buying ecosystem is complex and evolving
 It is important to be knowledgable and proactive with your programmatic media
buys, publishers and partners
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35. Programmatic Media Buying: Marketer’s Playbook
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Make an informed decision regarding
potential programmatic publishers
and partners
Play #1
Play #2 Enhance your service agreements and
media buying contract agreements to
meet YOUR needs and expectations
Play #3 Assess and audit for compliance and
to identify opportunities to improve
Play #4 Be an Advocate; attend webinars, read
blogs, share positive outcomes

36. How can we help you?
Please contact Christine at
Ckubisztal@cbdmarketing.com for a free,
no-obligation, 30-minute consultation to
determine if programmatic media buying
might be a right solution for your business

37. Question & Answers

38. Resources
 IAB
 https://www.iab.com/
 Luma Partners
 http://www.lumapartners.com/resource-center/
 ANA: Association of National Advertisers
 http://ana.net
 http://www.ana.net/blogs/show/id/mm-blog-2017-03-13-takeaways-from-anamedia
 Digital Ad Verification:
 Integral Ad Science: www.integralads.com
 Double-Verify: www.doubleverify.com
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