This document provides an overview of programmatic advertising, including: - It involves automated decision making in real-time bidding on digital ad space using data to match the right ads with the right audiences. - Data from various sources is used to target ads to consumers based on demographics, interests, and past behaviors. - The real-time bidding process happens in fractions of a second when a web page loads to display the winning advertiser's ad.

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Introducing…

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Programmatic advertising means different things to different people.
Involves a
computer.
Automated decision
making.
Impression-by-
impression.
Real-time
bidding.
Re-targeting.
Lookalike
audiences.
Automated,
progressive
optimisation.
So

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It’s the iterative process of using digital ad inventory and audience data to
get the right content, to the right person, in the right place, at the right time.
Campaign goals
Direct response, Brand awareness
Inventory
Categories / Publishers
Placements
Market value
Data
Demographic
Psychographic
Behavioural
1 impression
1 person
1 impression
1 person
1 impression
1 person
1 impression
1 person
1 impression
1 person
Performance insights
Audience characteristics, channels, messages, formats, placements
Learning
loop
Learning
loop
Real-time bidding
Based on perceived value of consumer, advertiser places a bid
Well

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Ad Networks
Ad Exchanges
Demand Side Platforms (DSPs)
Supply Side Platforms (SSPs)
Data Providers
Data Exchanges
Used by publishers to make their online ad inventory
available to Networks, Exchanges and DSPs for
purchase.
Collate and sell data that can be used by Advertisers to
build out specific audiences for campaigns.
Marketplaces where advertisers are able to bid on and
acquire 3rd party data from data roviders.
Help advertisers to run display campaigns across many
different Publisher and Ad Exchange inventories.
Online auction marketplaces that enable consolidated
buying and selling of media inventory from across Ad
Networks and DSPs.
Licensed or managed platforms that enable advertisers
to bid on and buy display media and audience data
across multiple suppliers.
Let’s meet the

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Data is at the heart of the programmatic process.
Millions of different data points can be evaluated in real-time
to optimise campaign performance and deliver efficiencies.
1st party 3rd party
This data is collected by the advertiser and can
include:
• website visits and actions
• customer email databases
• CRM databases
• e-commerce / transactions
This is most often used for re-marketing and also to
build lookalike audiences by working with a 3rd
party data provider.
This data is purchased from data providers like
website publishers, database companies and e-
commerce sites. It can include:
• demographics - gender, income, education
• psychographics - interests, attitudes
• behavioural – recent searches / purchases
This is used to build ‘cookie pools’ that can then be
used in targeting people with characteristics
suggesting likely conversion.
Show me

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When a browser starts to display a webpage, it sends
out a call for an ad.
In the amount of time it takes to load the page, data
relating to the publisher, ad placement, market value
and anonymous characteristics of the person viewing
the page are shared with prospective advertisers.
An optimum bid is then calculated for each advertiser
based on the perceived value of showing an ad to that
particular person, in that particular context.
The winning bid is selected and the corresponding
creative is sent through and displayed on the page.
Finally the browser sends confirmation that the ad
was viewed.
This all happens in a fraction of a second!
It’s quick,
Credit:
©
2013
Turn
Inc.

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Bad cookies
You can’t always trust cookies. Deletion means a
campaign could over deliver on frequency. Shared
computers mean they might not link to a specific user.
Beware the fold
.comScore estimate that 46% of ad impressions are in
view, with the figure dropping to 31% on Ad Networks and
Exchanges. View metrics can therefore be over-reported.
Verification
It’s estimated that approximately 30% of ads don’t appear
where they are supposed to – e.g. on inappropriate sites,
incorrect placements, next to competitor ads. Real-time
monitoring means these can be remedied.
Privacy
The European Digital Advertising Alliance provide
guidance on disclosure of collection and use of data for
Online Behavioural Advertising. A link to opt-out sites
should be made available to consumers.
Brand safe
Brand safe segments are available which reduce the risk
of potentially non-compliant campaign activity. However,
these can command premium rates.
Integration
With the potential for so many different service providers
to be involved in the process, it’s important to make sure
that the partners you choose are compatible.
The disclaimer...

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Are you learning from your display campaigns and increasing
efficiency and ROAS with each new media buy?
Are you putting your own data to work to increase relevant
reach and improve ad performance?
Do your customers understand the part they play in your
online behavioural advertising efforts?
Time to get with the program.
So, what’s

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Thanks.
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Alex Barfield
alex.barfield@headstream.com
023 8082 8500
Sources:
Mapping the Display Landscape: A Fundamental Guide to Data, Targeting & the Future of Display – Netmining
10 Questions About Programmatic Buying – Rocketfuel
The Programmatic Primer – Ted McConnell / Warc