An Introduction to Programmatic

©BravoEchoInc,2015
BravoEcho works with the leaders of organizations to evolve their
business through brand, strategy and communications.
We create and build brands.
Our job is to know our Client’s audience. We are champions of the
customer and the strategic voice behind the brands we serve.
IN A NUTSHELL

The Marketing and
Technology
Evolution

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Technology has drastically changed the world of marketing
and communication.
From social channels to mobile apps to big data to CRM,
marketing can no longer think about technology as a separate
IT function.
At the same time, businesses must also understand the value
and relevance of certain technologies in this new age of data
overload.
THE ROLE OF TECHNOLOGY

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Organizations must strategically understand the role of technology
AND its relevance and value as it relates to the following:
 
1) Business Growth
2) Brand Building
3) Customer Relationship Nurturing (New and Existing)
THE ROLE OF TECHNOLOGY

One area of focus for many marketers over the past several years
is — Targeting with Technology.
The idea is simple yet quite powerful.
Leverage data and technological tools to get to the right
person, at the right time and place, with the right message in a
measurable way.
One example: The 2012 Obama Campaign, Project Narwhal
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TARGETING WITH TECHNOLOGY

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The Obama team understood the role of technology as it
related to the following:
 
1) Business Growth
2) Brand Building
3) Customer Relationship Nurturing (New and Existing)
PROJECT NARWHAL-
MISSION ACCOMPLISHED

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TARGETING WITH TECHNOLOGY
WHAT IS
PROGRMMATIC THE LINGO
PROS & CONS
AN AD  
IMPRESSION
THE ROLE OF
STORYTELLING
The Digital
Advertising
Landscape
1.
Programmatic
Advertising
2.
Future
Considerations
3.

The  
Digital Advertising
Landscape

“Half my advertising is wasted, I just don't
know which half."
-John Wanamaker
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HOW FAR WE’VE COME

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IN THE PAST

Programmatic buying is the gluten of
advertising. Like gluten, ‘programmatic’
has become a buzzword that many
people use but few really understand.
They just know it’s important.”
-Jimmy Kimmel
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PROGRAMMATIC,  
THE NEW BUZZWORD
“

In this data-driven world we are surrounded by new
technologies that enhance customer experiences, create
efficiencies and reduce waste for businesses.
Programmatic is one tool that has come out of this technology
race. It’s an audience buying tool.
It’s a way in which the right message can be delivered to the
right person at the right time.
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PROGRAMMATIC IS A TOOL

By definition, programmatic is an automated process in which
ads are bought — through auction based systems in the
marketplace or through publishers - and served across the web
to a specific audience.
It’s simply focused on two components:
1) Buying targeted audiences  
2) Making the process more efficient
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PROGRAMMATIC IS A TOOL

Programmatic is part of this complicated digital ecosystem.
And that’s the world advertisers must start to understand better
in order to target and spend more efficiently.
Ultimately, realizing the same end goal - building brand and
creating a stronger and more relevant relationship with the
customer.
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THE END GOAL: BUILDING THE BRAND

Programmatic can help to deliver stronger ROI, more “bang for
your buck” when used and applied in the right way.
Two key components to this equation:
Lower cost impressions + Improved audience targeting
= Stronger Results
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THE END GOAL: STRONGER ROI

Digital buying used to be centered on the advertiser buying
inventory from premium publishers.
But over time, advertisers realized buying premium didn’t matter
if the user wasn’t relevant. There was a ton of waste.
Programmatic allows advertisers to move from mass buys to a
system that more precisely targets relevant audiences with
stronger results and proven ROI.
Targeting the right user at the right time with the right message
is a strategic tactic that has now become price of entry.
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IN SUMMARY

Language
A CLOSER LOOK
AT PROGRAMMATIC

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In the world of programmatic advertising, media is typically purchased
through a DSP on a CPM basis facilitated by SSPs on individual websites
which are connected to Ad Exchanges or Private Exchanges. Unlike  
Ad Networks, programmatic buys are transacted on a unit-by-unit basis
offering full transparency into individual placements. More than just
retargeting, 1st party data is one of the key leverage points in
programmatic. Through the use of this data, tracking pixels and use of
cookies create a feedback loop which combined with CPM gives us the
ability to value all aspects of the campaign, audience, and inventory at
an effective CPA.
Using these findings in combination with 2nd and 3rd party data we
create look-a-like models which extend the size of the audience. Once
considered remnant inventory, RTB buys are where we explore for high
performing site inventory. When that inventory has been identified, we
secure programmatic preferred deals and programmatic guaranteed
deals to scale the campaigns. Every dimension of a programmatic media
buy can be assigned an appropriate price or bid so that the campaign is
optimized on all levels for maximum ROI.

A software used by advertisers and agencies to purchase advertising
in an automated manner.
DSPs allow advertisers to target specific users and buy impressions
across a range of publisher sites. These publishers make ad
impressions available through the marketplace and the DSP software
decides which impressions make sense to buy.
The advantage of using DSPs instead of ad networks is the ability to
buy, serve and track ads using one central tool, and to optimize
campaigns more easily as a result. And, it’s cheaper.
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DEMAND SIDE PLATFORM (DSP)

A software used by publishers that connects their inventory with
ad exchanges, networks, and DSPs to sell impressions at their
highest value in real time. Publishers can set a minimum price
they will sell impressions for.
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SUPPLY SIDE PLATFORM (SSP)

A model that charges advertisers every time an ad is displayed to a
user, whether the user clicks on the ad or not.
If a publisher charges $3 CPM, the advertiser must pay $3 for every
1,000 impressions of its ad.
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COST PER THOUSAND (CPM)

A performance-based advertising measure that looks at how
much it costs in advertising to convert a prospect to a customer
for a company.
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COST PER ACQUISITION (CPA)

Ad networks bring together inventory and audiences to help
marketers buy online ad impressions faster and more efficiently.
There are many different types of ad networks. Some focus on
reach and price and don't provide much insight on who or
where.
Other, more premium networks -- including publisher-specific
networks -- are all about guaranteeing audience demographics
and quality.
The business model for ad networks is to aggregate inventory
from a range of publishers, mark it up and sell it on for a profit.
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AD NETWORKS

A technology platform that facilitates the buying and selling of
advertising inventory between an advertiser and thousands of publishers,
often through real-time auctions.
Ad exchanges allow advertisers to buy ads, using DSPs, across a range of
sites at once versus site direct through publishers.
Ad networks and other entities also buy ads from exchanges.
Exchanges are supposedly more transparent than networks because they
enable a buyers to see exactly what price impressions are being sold for.
Popular ones are Google Ad Exchange and Facebook Exchange.
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AD EXCHANGES

Publishers are starting to use private exchanges to control who
can buy their inventory and at what price.
It allows them to be selective and not have to deal with the open
market and/or networks that could sell those ad impressions
through a mark up.
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PRIVATE EXCHANGES

You are referred to as the 1st party.
This is data you own. It’s free. Information you have collected over
time on your customer (via web cookies, mobile apps, purchases,
forms, email). It’s unique.
It’s the most valuable type of data organizations can collect. Why?
Because, these are existing customers who are interacting with
your brand, already. They have behaviors that can be analyzed and
leveraged.
It’s also limited. In quantity and in insights. But still, very valuable.
©BravoEchoInc,2015
1ST PARTY DATA

2nd Party Data is another organizations first party data.
This is a growing area for audience targeting acquired through
strategic partnerships and alliances.
3rd Party Data is data you buy from companies that are data
aggregators.
It’s becoming less popular given the backlash from privacy
groups and consumers.
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2ND AND 3RD PARTY DATA

A technology that allows an advertiser to serve up an ad to a
visitor who has been to their site.
Retargeting has evolved to include Site, Search and CRM
retargeting. And these audiences can be bought
programmatically.
They say 2% of online shoppers convert the first time around.
Retargeting helps to bring back the other 98%.
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RETARGETING

A Tracking Pixel is essentially a piece of code that’s placed on a
web page by a marketer. Not viewable by the users.
They can be placed where a sale or conversion takes place or
across sites.
Pixels also trigger Cookies which store information about the
user.
The cookie is what allows ad networks and exchanges to ID a
user across sites and serve up an ad.
Pixels are extremely valuable in tracking campaigns and creating
user profiles to create look-a-likes.
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TRACKING PIXELS AND COOKIES

It’s simple a way of leveraging and analyzing data from your
existing customers - generally your best customer profiles - for
targeting.
Once characteristics, behaviors and profiles are identified,
companies develop “look-alike” models.
It’s about broadening reach by finding new prospects who
behave like current customers.
A technique that allows for targeting to be much more precise
and efficient with media dollars.
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LOOK-A-LIKE MODELING

Real-time bidding is the buying and selling of ad space (per
impression) in real-time through auctions held..
RTB is not its own platform - it’s a type of technology that ad
exchanges, DSPs, and SSPs integrate in order to perform these
auctions.
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REAL TIME BIDDING (RTB)

Trading desks are used by agencies and are a way to purchase ads and
audiences in real time and measure results and report audience insights.
Trading desks were created in order to give the advertiser and the
agency more control over the ad placement and more closely examine
the results to optimize if and as necessary.
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TRADING DESKS

Preferred Programmatic - Buyers who have more information
than other advertisers because it takes place outside an auction,
and they have the right of first refusal over impressions. It’s
based on set CPM but non-guaranteed inventory.
Programmatic Guaranteed/Direct - Buyers negotiated a set
price and run date, outside of an auction. And it’s based on a set
CMP and guaranteed inventory.
©BravoEchoInc,2015
PREFERED PROGRAMMATIC
VS GURANTEED/DIRECT

The Life of An Ad
Impression
A CLOSER LOOK
AT PROGRAMMATIC

What’s the role of
storytelling?
A CLOSER LOOK
AT PROGRAMMATIC

Programmatic has traditionally been a tool focused on direct
response campaign buys.
Meanwhile, direct site buys ensured premium inventory promote
brand and leverage creative that focuses on brand awareness
and bigger storytelling.
Part of this stemmed from the historical perception that
programmatic was limited to remnant (bad) inventory.
However, programmatic has evolved and matured. So now it’s
time to understand the opportunity for brand messaging and
storytelling.
©BravoEchoInc,2015
DIRECT REPONSE RULED

Facebook and Adeptly (social media ad platform) put these two
marketing strategies to the test with Refinery29, a fashion
lifestyle site, to see which would generate more email
subscriptions.
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SEQUENCED STORYTELLING  
VS CALL-TO-ACTION

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GROUP 1: SEQUENCED
STORYTELLING

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GROUP 2: SUSTAINED  
CALL-TO-ACTION

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THE TWO STRATEGIES

-View-Through, increased
87% by those exposed to
sequencing storytelling
-Subscription rates
increased 56% by those
exposed to sequential
storytelling
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SEQUENTIAL STORYTELLING PREVAILS

The idea of telling a story through a series of messages and the
cumulative effect is not new.
But the idea of doing it in real-time is.
Building a sequential brand story that leverages real-time
technology and insights, across multiple digital devices, allows
advertisers to change the story and creative at each step.
Although the challenge has always been about engaging and
entertaining the consumer, the new layer is getting the audience
to become participants in integrating the pieces of the story.
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SEQUENTIAL STORYTELLING

Pros & Cons
A CLOSER LOOK
AT PROGRAMMATIC

Efficient in Process, Targeting, and Spend
Control and More Data
Flexibility with Tactics and Spending
Test and Learn Approach
Evolving beyond RTB
Evolving Opportunity for Brand Impact
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THE PROS

Remnant Inventory
Control over Sites and Context
Transparency
Hidden Costs/Fees
The Loss of Storytelling
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THE CONS

Just A Trend?
FUTURE
CONSIDERATIONS

In 2014, the most dramatic growth and
expansion in programmatic occurred.
This year, nearly $15 billion will be
spent programmatically, about 55% of
total display ad spending.
By 2016, spending is predicted to
reach $20.41 billion, nearly 63% of total
display spend.
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A CONSISTENT PATTERN OF GROWTH

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Snowshoe is a village on a mountain – you wake, eat, and sleep
up there, it’s mountain all the way. For a city or suburban
family, in any season, it really is a world apart. Talking to
loyalists led us to the simple insight of Live The Mountain.
A PROVEN CASE STUDY

Introducing Woolly Ted - Snowshoe’s family- and adventure-loving Spokes-squatch.

Woolly Ted is showcasing the best-of-the best of the summer experience in a fresh way.

Social channels allowed for rich teasing and storytelling.

Social engagement in a historically quiet period.

Personality-driven, ongoing storytelling eventually led to retail offers.

Nurture e-mail campaign leveraged specific audience segments.

Different landing pages for different audiences continued the narrative.

©BravoEchoInc,2015
PROGRAMMATIC PROVED
STRONGER ROI
Summer/Winter Total Web Revenue
Total Revenue - 45% ahead of goal, 52% ahead of FY14
Digital Media Direct Attribution
Summer - 30%
Winter - 46%
METRICS /

In 2013, AmEx spent $128.5 million on online display ads and was
the 9th largest online display advertiser, according to Ad Age
Datacenter
“American Express would like to transform their Display Media
Channel to become 100% programmatic…We believe the
advancements in programmatic buying give Amex the
opportunity to get much closer to the digital media campaigns
specifically using our expertise, data and resources.”
- 2014 RFP distributed by AMEX
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AMEX SHIFTED TO PROGRAMMATIC

Mondelez brands Oreo and Ritz bought :15 Super Bowl ads this
past year to test and pilot programmatic buying in TV
“Programmatic fits within the larger digital optimization
strategy we’ve been employing for the last year as we shift
more media spend to digital, and online video is a major area
for growth.”
-Ivelisse Roche, Mondelez’s , Associate Director for Global Media  
and Consumer Engagement
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MONDELEZ SHOWS EXTREME
CONFIDENCE

Time Inc - publisher of People, Fortune, SI - announced earlier this
year, the decision to let advertisers buy print programmatically.
Target is among the first of advertisers to experiment.
“With this process, print is now as easy to buy as digital.”
-Andy Blau, senior vp of ad sales and marketing for  
Time Inc. Branded Solutions.
“The ability to start to experiment with print and buy it
programmatically fits nicely within our overall strategy."
-Kristi Argyilan, Target's senior VP of media and guest engagement.
©BravoEchoInc,2015
TIME INC SELLS PRINT
PROGRAMMATICALLY

Where will we be in
2020?
FUTURE
PREDICTIONS

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Technology will become part of the planning
and development of marketing. After this
transition, technology will become part of the
core fabric of marketing.
#2 TECHNOLOGY AND
MARKETING MERGE

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New tools have made fans and
consumers more accessible than
ever. Create a community with
them and have more direct
conversations.
#3 OWNING YOUR
AUDIENCE

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Smart homes, TVs, cars, and
phones are all becoming
interconnected. Smart marketers
will take advantage of this.
#4 CONNECTED
EVERYTHING,
EVERYWHERE

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People will reward the brands that
do good and punish those that
don’t. Brand citizenship will turn
into a marketing function that
drives transactions and scale and
creates advantages for companies
in the talent wars.
#5 DOING GOOD IS
GOOD BUSINESS

©BravoEchoInc,2015
SOURCES
Videos
"Big Data Meets Presidential Politics.” CSC. https://www.youtube.com/watch?v=6ZOfnFCMHTM
"The Evolution of Online Advertising." Interactive Advertising Bureau. https://www.youtube.com/watch?v=1C0n_9DOlwE
"200ms: The Life of a Programmatic RTB Ad Impression.” MediaCrossing. https://www.youtube.com/watch?v=rTg9l4d8MU4
Additional References
Gallagher, Sean. "Built to win: Deep inside Obama’s campaign tech." http://arstechnica.com/information-technology/2012/11/built-to-win-deep-inside-obamas-
campaign-tech/
Iseenberg, Sasha. "How President Obama’s Campaign Used Big Data." http://www.technologyreview.com/featuredstory/508836/how-obama-used-big-data-to-
rally-voters-part-1/
Oetting, Jami. "The Definitive Glossary of Programmatic Advertising." http://www.chango.com/resources/magazine/storytelling-in-a-programmatic-age/
"Programmatic Advertising 101.” Chango.com. http://www.chango.com/resources/magazine/storytelling-in-a-programmatic-age/
Limon, Kathleen. "The Difference Between First, Second and Third Party Data." https://retargeter.com/blog/general/difference-first-second-third-party-data-use
Tyler, Mike. "The Pros and Con of Programmatic Ad Buying." http://advertisinginstitute.com/pros-and-cons-of-programmatic-ad-buying/
"The Value of Storytelling on Facebook for Marketers.” https://www.facebook.com/business/news/value-of-storytelling-on-facebook
"The Science of Social Media Advertising.” Adeptly, Facebook and Refinery. https://fbcdn-dragon-a.akamaihd.net/hphotos-ak-xft1/
t39.2365-6/10333119_1457635661160496_168768318_n.pdf
"Storytelling in the Programmatic Age.” Chango.com. http://www.chango.com/resources/magazine/storytelling-in-a-programmatic-age/
"US Programmatic AD Spend Tops $10 Billion This Year.” eMarketer. http://www.emarketer.com/Article/US-Programmatic-Ad-Spend-Tops-10-Billion-This-Year-
Double-by-2016/1011312
Beer, Jeff. "25 Predictions for What Marketing Will Look Like in 2020.” http://www.fastcocreate.com/3043109/sector-forecasting/25-predictions-for-what-
marketing-will-look-like-in-2020

An Introduction to Programmatic

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