Programmatic advertising, as a new way of digital media buying, is creating buying and selling efficiencies with the technology behind automation. In this session, our digital experts will lead you through the basics of programmatic ecosystem, showing you now only the who, where, what and why, but also some new tactics that you can apply with your agencies.
3. #EMPOWERBL16
This session will cover…
What is Programmatic?
Questions for Better Performance & Transparency
Questions
3
4
1
Understanding Programmatic2
5. #EMPOWERBL16
What is programmatic?
Programmatic, in its simplest term, is a modern means of media buying that
incorporates the use of data, technology, and algorithms to automate, predict, and
present relevant ads in real-time.
Demand Side Platform (DSP): Platform that enables buyers/advertisers to access & purchase inventory in real
time through SSPs and exchanges
Supply Side Platform (SSP): Platform that enables publishers to sell & manage digital inventory on a large
scale to buyers/advertisers
Managed Service: Dedicated account manager or team creates/manages the campaign & spend on
advertiser’s behalf
Self Service: Technology & dashboard provided for buyers/advertisers to manage campaign & spend with
limited additional services
Exchange: System of available inventory from publishers & SSPs that DSPs can access for purchasing
6. Have Executed Digital Ads Programmatically in
the Last Year…
Source: eConsultancy Programmatic Branding Report, 2015
10. #EMPOWERBL16
Defining the Phases of the Programmatic Cycle
Landscape
Assessment
01. Identification: Who is involved in the assessment?
Planning &
Activation
Reporting &
Optimization
02. Exploration: What are the elements and
assessment details?
03. Presentation: How is the information presented?
11. Demand Side – Advertisers/Agencies Supply Side - Publishers
Agency Trading Desks
Data Partners
Ad Exchanges
Demand Side Platforms/Technology
Dynamic Creative
Partners
Verification
Partners
Ad Networks
Supply Side Platforms
13. #EMPOWERBL16
Why Landscape Assessment is Important
Sample DSP-Type
Programmatic DSP OverviewAgency Video DSP Display DSP
Walled
Garden 1
Walled
Garden 2
Mobile DSP
CaseUse
Agency model
with ability to use
multiple DSPs
Managed service
DSP with ability to
plug into multiple
technologies
Managed service
DSP with ability to
plug into multiple
technologies
Managed service
using Walled
Garden
Technology with
inventory pool
Managed service
with ability to
plug into multiple
technology
Managed service
DSP with ability to
plug into multiple
technologies
Unique
Capabilities
Tailored reporting
with team of
experts optimizing
between DSPs
Video DSP with
buying ability
across multiple
video formats &
technologies
First DSP with
largest amount of
data providers &
advanced
algorithms
Used in
conjunction with
Walled Garden
Technology for
preferential
bidding
In conjunction
with Walled
Garden data &
Technology to
further target
consumers
Cross-screen
proprietary data
to target on
connected TVs &
mobile screens
Distributes
LogFiles
Transparent model
with ability to
implement log file
technology
Transparent model
with ability to
implement log file
technology
Transparent model
with ability to
implement log file
technology
Transparent model
with ability to
implement file
technology
Does not allow for
log files creating
non-transparent
view
Unknown if log
files can be
collected
14. #EMPOWERBL16
Defining the Phases of the Programmatic
Cycle
Landscape
Assessment
01. Consideration: How is programmatic being
considered?
Planning &
Activation
Reporting &
Optimization
02. Cultivation: What are all of the elements and details
that must be addressed in the programmatic planning
process?
03. Activation: How is the approved plan implemented?
15. #EMPOWERBL16
Planning & Activation
Advertiser understands how programmatic is being used (strategy) and what is
being done (implementation).
Strategy RFP Considerations Implementation
16. Transparency – A Dollar in isn’t a Dollar Out
$.60 (markup)
$1 $.40
*Source: WFA 2014, LUMA partners
17. #EMPOWERBL16
Key Process Development Points
Landscape
Assessment
01. Stewardship: How is activity monitored, reported,
and optimized?
Planning &
Activation
Reporting &
Optimization
02. Presentation: What are the in-depth campaign
reporting details?
03. Presentation: How is the information presented?
18. #EMPOWERBL16
Synopsis Questions to Ask Yourself
After cycle completion, you will come to understand:
Media Performance
Verification
Data Layers
Pricing
20. #EMPOWERBL16
Questions Every Advertiser Should be Asking
Disclosed vs. Not Disclosed Transaction Data Budget & Supply Chain
Furthering agency transparency within the Programmatic space
Notes de l'éditeur
Safety/quality concerns – move to verification
Make 3 circles bigger
Cannot put down specific examples on the slides themselves. G&L will use them as talking points.
ADD DEFINITIONS
Take out names
Money Flow
Many Ad Networks built their businesses on the idea of keeping a substantial share of the advertisers’ investment. In many cases this has been done without significantly adding value for the advertiser in terms of improved ROI, or other unique value. While in an Agency Trading Desk model, typically still more than half of the advertiser spend goes to middle man fees, an opportunity exists for better control over how this money is invested.
A model for how the money may be split between the various stakeholders, in the typical programmatic ‘stack’
Client AOR ATD DSP Value Adds Exchange Publisher 100% 5% 15% 10% 25% 5% 40%
Source: industry experts
Typically, both Agency Of Record (AOR) and ATD receive a share of advertiser spend. And as DSP software is typically licensed by ATDs, rather than owned, a share also goes to the companies providing these services. Within ‘Value-adds’ a number of companies provide additional technological services, including data enrichment, targeting, reporting, verification and others. Value-adds account for 25% of advertiser budgets on average.
The exchange is the virtual marketplace itself where publishers trade impressions with media buyers. Exchanges account for around 5% of advertiser spend.
After all the stakeholders present in the programmatic ecosystem have taken their share of advertisers budgets, there remains just 40% received by the publisher, as so called ‘working media’
a common destination where the currency we exchange is based on viewable ads.