Programmatic advertising involves the automated buying and selling of digital ad space. It allows advertisers to target the right audience with the right ad at the right time at scale. Real-time bidding (RTB) is one method of programmatic advertising where ads are bought and sold via an automated auction that takes place every time an ad impression is available. While concerns remain around transparency, fraud and understanding, programmatic advertising has the potential to personalize advertising at scale by leveraging rich audience data and automating the delivery of individually tailored ads.

1. Programmatic: Diving In
Carl Kalapesi
Head of Industry Initiatives IAB
Twitter: @carlkalapesi

2. 1
So what is programmatic?
Cheap?
Real-time bidding (RTB)?
Remnant and crappy inventory?
Race to the bottom?
Automation?
Efficiency?

3. •
Technology can deliver benefits through automation
•
The object of “engagement” shifting to the audience—not the channel
•
Rich datasets can fuel the identification and engagement of target audiences
Several themes have come together…
2

4. Promise of programmatic:
Right Message + Right Person + Right Time
At Scale
Personalization at scale?
3

5. The process of buying and selling media in an automated fashion
Ultimately, programmatic is…
4

6. Programmatic is more than RTB…
5
Invitation-Only Auction (Private marketplace)
Fixed
Reserved
Auction
Unreserved
Open Auction
(Open Marketplace)
Automated Guaranteed
(Programmatic Guaranteed)
Unreserved Fixed Rate (Preferred Deal)
How price is set
Type of inventory
Real Time Bidding (RTB)
www.iab.net/programmatic
5

7. RTB - Different ads to different users
6

9. So what actually happens in RTB
http://www.iab.net/simplified
Click image or here to play video
8

10. Open vs. Private Auction: Retail Analogy
Open
9
Source: Matt Prohaska, Prohaska Consulting
Private

11. Simplifying the direct deal…
10
P
U
B
L
I
S
H
E
R
A
D
V
E
R
T
I
S
E
R
EMAIL
PHONE
SPREADSHEET
AUTOMATED GUARANTEED PLATFORM

12. 1
Concerns over transparency, fraud and trust
2
Fear, limited understanding and knowledge
3
Confusion over terminology
4
Moving from DR to branding dollars
5
From banners to native, video, rising stars, audio…
6
Internal organizational challenges in brands & publishers
7
Delivering different creative through programmatic
Lots of challenges remain…
11 www.iab.net/programmatic