The document discusses the disruptive impact of programmatic advertising on media, jobs, and business models. It notes that while programmatic has potential to increase revenues through performance and intelligence, its adoption has faced issues from lack of transparency and understanding. The document advocates educating people on programmatic's benefits and argues it can improve branding and creativity when used alongside quality content from trusted publishers. Overall, the document presents an optimistic view that programmatic, while disruptive, can close the gap between its promise and outcomes through continued learning and improvements to technology.

1. Programmatic
in the Era of Disruption
and Digital Transformation

2. Why is Programmatic so Disruptive?
Automation is an essential element of digital transformation
40% of Today’s Fortune 500 Will Be Extinct in 10 years
Many of the roles we know today will be automated
Our MISSION TODAY!!!
Demystify the myths & fight the Fears around Programmatic
Embrace the culture
Education is the key
2

3. 3
Let’s make a point here about Programmatic:
is not the antithesis of quality content and context,
is not the reason why brand safety, ad fraud and transparency
are an issue today.
It can help our business with higher revenues,
help with better creativity and brand lift
Programmatic brings performance and intelligence into premium
campaigns

4. 4
# Machines are taking over

5. RISK or OPPORTUNITY? Definitely a REVOLUTION
5
D I S R U P T I O N 1 : J O B S A N D E X P E R T I S E
of companies fail to execute their strategy because
people are resistant to change
Many organizations fail to plan for the human factor
Lack of familiarity with the technology is causing
most of the issues we are seeing today
87%

6. 6
TIME:
An accelerating pace of change + exponential growth in computing power
= Singularity
TECHNOLOGICAL SINGULARITY: THE MOMENT WHEN HUMANS CREATE INTELLIGENCES GREATER THAN OUR OWN

7. Some jobs are at a
higher risk than others
7
http://www.bbc.co.uk/news/technology-34066941
D I S R U P T I O N 1 : J O B S A N D E X P E R T I S E

8. 8
D I S R U P T I O N 1 : J O B S A N D E X P E R T I S E
http://www.bbc.co.uk/news/technology-34066941
Where Does Yours Rank?

9. 9
Do We Still Need Sales People in a Programmatic World?
DIFFERENT SKILLS and a NEUTRAL APPROACH
• Avoid the channel sales conflict. Unify Direct and Programmatic sales
• Educate the sales team to understand metrics, KPI, attribution model and audiences
• Explain to clients the different points of entry to their brands and audiences
NEW CHALLENGES but also NEW OPPORTUNITIES
• Brands will have a comprehensive access to inventory
• Data and Analytics applied to media buying improve performance and ROI
• Business Intelligence as a key component of the entire sales process and related operations
D I S R U P T I O N 1 : J O B S A N D E X P E R T I S E

10. 10
PRICING # OF BUYERS DETAILS
Real Time Audience and
Audience Guaranteed
Fixed price, guaranteed
Audience
One Programmatically trafficked as premium
line item in DFP. Previous Audience
match required
Direct Sales Fixed price, guaranteed
impressions
One Trafficked through ad server
Programmatic Guaranteed Fixed price, guaranteed
impressions
One Programmatically trafficked as premium
line item in DFP
Preferred Deal Fixed price One Trumps Private Auction and Open
Auction bids
Private Auctions Price floor per buyer All invited buyers Trumps Open Auction bids
Open Auction 2nd price auction All buyers Primary driver of revenue
TimeInc Recommends 1 STOP SHOP approach

11. 11
# Impact on Media Production
and Distribution

12. 46%
12
on average
trustworthy
inspiring
influential
authoritative
of consumers
agree that
Approximately +50% higher than
Global Business Influencers 2016
Are Leaders in Global Journalism

13. We are committed to QUALITY:
Trusted Context and High level of Content for Every Passion
with the Time Inc. Network
13

14. 14
The promise and the reality of Programmatic…
- matching an AD message to the right person, in the right place, at the right time
- the entire advertising industry is having trust issues

15. 15
We have always said Google,
Facebook and others are media
companies and have the same
responsibilities as any other media
company. They cannot masquerade as
technology companies, particularly
when they place advertisements.
- Martin Sorrell
”

16. 16
We are here to help tip the balance
If CONTENT is KING
CONTEXT is GOD

17. TAKE BACK CONTROL!!!
17
D I S R U P T I O N 2 : I M P A C T O N T H E M E D I A I N D U S T R Y
QUALITY JOURNALISM IS THE ANSWER TO FAKE NEWS but CONTEXT IS THE
ANSWER TO BRAND SAFETY, TRUST and TRANSPARENCY
Q: Should Publishers become a Platform or die?
A: Neither

18. 18
Is Programmatic killing the CREATIVE PROCESS?
• When talking about PROGRAMMATIC CREATIVES we are thinking about HOW to
AUTOMATE more of the ELEMENTS USED to PORTRAY the CREATIVE MESSAGE
Buy and Selling of media is still an ART regardless of whether or
not it’s AUTOMATED
• We are not talking about automating the DEVELOPMENT of the CREATIVE MESSAGING
D I S R U P T I O N 1 : J O B S A N D E X P E R T I S E

19. Use Programmatic to HELP CREATIVITY becoming more RELEVANT
for the UX
19
Google 2015 research
D I S R U P T I O N 2 : I M P A C T O N T H E M E D I A I N D U S T R Y

20. 20
# The TECH Infrastructure

21. 21
D I S R U P T I O N 3 : T H E I N F R A S T R U C T U R E
A COMPLEX TECH STACK
& ECOSYSTEM of…..
RTB
Data
Analytics
Reporting
Measurement
Platforms
Technology + Insights = SUCCESS

22. 22
Technology is here to help …
….it will improve the effectiveness of your campaign with
• Better engagement
• Better viewability
• More intent to purchase
• Better ROI
FULL STOP

23. 23
1
2
3
Optimal Contextual Environments
Higher Viewability
Deep impact on long-term memory
D I S R U P T I O N 3 : T H E I N F R A S T R U C T U R E
Always choose the right ad-tech for your needs to demonstrate you are doing well:
Partners you can trust
widely adopted in the market
with a strong reputation amongst your industry

24. 24
MOAT STUDY
Advertisers can improve consumer attention and viewability by up to 92% when
their digital advertising campaigns appear amongst quality journalism from
trusted publishers.

25. Ads Need to be Viewable to have Impact
+44%
AWARENESS
+104%
RECALL
+66%
PERCEPTION
+80%
INTENT
25
Viewability Drives Brand Lift
and
Source: Moat 2016DCN Premium Publisher Study

26. DCN STUDY & COMSCORE
26
ComScore examined the branding effectiveness of digital display ads appearing
on Digital Content Next (DCN) member sites compared to non-member sites to
demonstrate the value of the contextual environment in which ads are seen.

27. 27
% VIEWABLE
% INVALID TRAFFIC
50%
50% 2.2% 3.5%
DCN Publishers Non-DCN
Publishers
45%70% 1.9% 2.2% 3.5%Time Inc.
Sites
DCN Publishers Non-DCN
Publishers
Time Inc.
Sites
Source: Moat; 2016 DCN Premium publisher study
Premium Publishers = Higher Rates of Viewability

28. Upper
Funnel
*Impressions-weighted
Mid
Funnel
Lower
Funnel
.56
.42
1.87
.51
.38
.35 DCN Publishers
Non-DCN Publishers
28
Creating Higher Ad Effectiveness
AVERAGE BRAND LIFT ALONG THE PURCHASE FUNNEL

29. TEADS STUDY
29
Teads undertook a study performed with Neuro-Insight, (neuroscience-based
market research) demonstrating that premium editorial engages viewers with
highly memorable content that has a greater impact for video advertisers.

30. Premium editorial delivers a
memorable and personally
relevant experience
WHY?
30

31. Memory encoding is measured
on both sides of the brain
The left brain The right brain
Is the detailed or rational
center of the mind and is
a stronger predictor of
video ad performance
Is global or emotional
center of the mind that
has a measurable
impact on ad
performance
Premium content drives
a higher and more even
impact on long-term
memory
+19% +8%
Memory Encoding
Rational/Detail
Memory Encoding
Emotional
Greater vs. Faceboook Greater vs. Faceboook
31

32. 32
A Premium Solution
• The Industry has been focused
on targeting and forgotten
about the importance of context
• Brand safety is not just
about Jihadi videos
• What is “premium” content
and why it matters
• Time Inc. provides audience
targeting, brand safety and
improved performance

33. 33
# The Business Model

34. FAQ: Is Programmatic bad for your business ?
Does it drive down CPMs?
- Low transparency on the auction mechanism 1st vs 2nd price
- Waterfall vs HB
- Remnant inventory
- Complex infrastructure and too many tech fees
ANSWER: it COULD BE unless you become an EXPERT!!!
34
D I S R U P T I O N 3 : T H E B U S I N E S S M O D E L
Advertiser DSP Verification Data PublisherAgency SSPExchange
10$ 4/5 $

35. Advertising is about attribution and programmatic is about attribution
Better funnel= Better Programmatic= Better attribution= HIGHER CPMs
35
PROGRAMMATIC HELPS WITH YOUR AUDIENCES and INCREASE CPMs
D I S R U P T I O N 3 : T H E B U S I N E S S M O D E L
Google 2015

36. 36
SMARTER, STRONGER + BETTER TOGETHER
DATA SOLUTIONS ENHANCED BY VIANT
PEOPLE BASED MARKETING
1st PARTY DMP(1st and 3rd)
EXCLUSIVE
PARTNER

37. Programmatic YESTERDAY
37
T I M E I N C B E S T P R A C T I C E
Before Header Bidding
REMNANT INVENTORY – CHEAP INVENTORY- DIRECT RESPONSE ONLY – NO TRANSPARENCY
• Waterfall didn’t give advertisers access
to the full inventory
• Was creating fragmentation in the
auction, hard to evaluate the real value of
your impressions
• Too many passbacks were adding latency
• Reporting was difficult

38. Programmatic TODAY/1
38
T I M E I N C B E S T P R A C T I C E
With Header Bidding
PREMIUM INVENTORY – BRANDING CAMPAIGNS – “UNIFIED” AUCTION - MORE
TRANSPARENCY – TRUSTED MARKETPLACES – VIDEO – OTT – NATIVE AD UNITS
CLIENT SIDE INTEGRATION:
• 3rd Party SSPs called directly from the page
• Latency
• Limited amount of supplier
SERVER SIDE INTEGRATION:
• 3rd Party SSPs called directly by the main SSP
• Unlimited amount of supplier
• Lower rate of cookies match
• Less control on the auction

39. 39
Programmatic TODAY/2 NEW CHALLENGES: SPO
T I M E I N C B E S T P R A C T I C E
SUPPLY PATH OPTIMISATION: A TOOL THAT HELPS BUYERS GET CLOSER TO SELLERS IN HB ERA
• Improving performances
• Reducing costs
• Helping with fraud
• Introducing more transparency with tech fees
2 TYPES OF SPO: ALGORITHM AND MANUAL APPROACH

40. 40
Programmatic TODAY/3: SPO Publisher Set-up
T I M E I N C B E S T P R A C T I C E
ADSERVER SET UP
• Re-organize Adserver line items & priorities
• Rationalize rate card
• Remove low revenue partners
SSPs SELECTION
• Test both C2S and S2S at the same time and detect the exchange with higher demand
• Selecting partners with more transparent approach to the auction 1st vs 2nd price
• Control tech fee
• Flag the PMP inventory vs OA
ADS.TXT
•To help buyers to identify who are our official partners and cut unnecessary intermediaries
FRAUD DETECTION
•Reduce unnecessary bot traffic, avoid SSPs domain spoofing, improve metrics

41. Programmatic TOMORROW
41
T I M E I N C B E S T P R A C T I C E
• GDPR
• People based marketing with Viant
• Self service with Adelphic
• Premium international network
• Content distribution Video Syndication
and licencing deals
• Consolidation of tech partners
• Testing and learning
• Blockchain (Ad-Chain, Smart Data, Nano-payments)

42. 42
#1
#2
#3
#4
#5
#6
#7
Programmatic can be disruptive and affect everyone
Positive Attitude towards challenges and innovation
Lots of channels but poor creative formats
Complex landscape and technical infrastructure
Different maturity and adoption across international
Still an expensive technology
Education and Cultural changes are the only way to understand and
survive

43. 43
# Major Take Away:
Today there is a significant GAP between the promise of what can be done
with AUTOMATION and what effectively has been done.
Loss of control, lack of understanding, human factors
can be blamed for things not working
EDUCATION EDUCATION EDUCATION
TEST AND LEARNING
TECH IMPROVEMENTS
It will take time but will close the gap!!!

44. THANK YOU
44
PROGRAMMATIC Is not a product and is not just a technology BUT is a powerful way to rethink digital and advertising in general
(from the verb according Barbara )
barbara.agus@timeinc.com