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THE FUTURE OF AUTOMATION

The Future of Automation, WTF Programmatic, December 2016

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PowerPoint Presentation

THE FUTURE OF AUTOMATION

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THE FUTURE OF AUTOMATION

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Jason DeMarcoVP Programmatic & Audience SolutionsA+E Networks 9+ years in digital advertising4+ years in programmatic

Humble intro slide.3

Jason DeMarcoVP Programmatic & Audience SolutionsA+E Networks 9+ years in digital advertising4+ years in programmatic

Built A+Es programmatic business from the ground up

YoY growth ranging from 50%-80% in revenue

Market leader in programmatic adoption amongst premium video

Thought leader & champion for adopting new technology, strategies and partnerships in market

Go-to source for evaluating and testing new ideas internally and externally

Intro slide4

Automation:the technique, method, or system of operating or controlling a process by highly automatic means, as by electronic devices, reducing human intervention to a minimum.

Definition of automation5

Current state of digital advertising when considering current state of technology, vendors, partners, data sets, data providers. An ecosystem that has been preyed upon by opportunists 6

Thank you to Luma Partners we are all familiar with the Lumascapes which represent both the complication in the digital space as well as the opportunity that exists. As long as venture capitalists and entrepreneurs continue to see the monetary benefit of participating in advertising technology, this area will continue to see new companies created. This is not a bad thing as much of the evolution has come from new ideas, products and companies exposing issues in the previous and current workflow and process that could be solved for through tech. 7

MERGERS AND AQUISITIONS

HELP DEFINE AND CREATE COMMONALITY IN GOALS

Larger firms acquiring smaller tech companies helps create similar goals in product creation and workflow resolutions8

5891210?

Not how we count at A+E however the number of digital tech and network partnerships we have just based on monetization. The goal has always been to minimize the number of partnerships to reduce complexities although each partner presents a unique solution. 9

A+E Networks currently partners with exchange platforms like StickyAds (recently acquired by Freewheel/Comcast) to automate the buying and selling of video inventory on our sites and apps. Buy-side partners like The Trade Desk have helped brands and agencies automate the targeting, optimization, and activation of campaigns into programmers inventory like A+E. This is nothing revolutionary and has been common practice for many of us for a few years.

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Now lets take that approach one step further and look at how a publisher leveraging a DMP, A+E partners with Krux, can create additional opportunity. Still leveraging the partnerships we have in place to minimize manual reliance, we are able to facilitate audience based buys through existing pipes and setup. There is no denying that data is becoming, if not already is, one of the biggest components to ad spend. By allowing data for targeting purposes to freely flow into existing setups, we can benefit from the upside like incremental advertisers, incremental spend, and marketing our inventory in real-time.

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Why not incorporate brand data, match it to publisher data, create additional look-a-likes based on publisher 1st party data, and create a marketplace opportunity for the brand to activate against all of the included data. When they use a DSP, it also affords the brand all of the benefits of consolidated reporting, frequency controls and even more. 12

Greatbut you said the future of automation!

Automation of STB VOD through the use of a DSP to plan, buy, report, and analyze impact of the campaign into a programmers inventory.

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RTB MarketplacePrivate MarketplaceProgrammatic DirectDirect Sales

Yield OptimizationStrategy

DFP and AdX already provide a certain capability around dynamic pricing and real-time yield optimization, however there are limitations defined by partnership and tech stack components. Also, this can be sometimes associated with black-box decision making. So how about an ability to run a true yield optimization strategy based on real-time price awareness. Create an environment where parameters can be controlled by the publisher and all demand is created equal despite how it was curated. Lets go one step further and think about how this can be leveraged in content creation and responsive page setup.

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USER A: article reader; light video watcher

Responsive site highlights articles for consumptionNative ad formats prioritizedFocus on display ads Short-form video ads suggested w/ max ad time reduced

USER B: full episode video watcher

Responsive site highlights new episodes availableSite design removes majority of text and display adsMaximize ad loads for full episode contentActivate exit adsContent Generation and Site Design

This example highlights how automation can go beyond just ads. Content generation and site configuration should be able to leverage some of the same data as advertising to influence the content being provided to a user. Even the site design can be influenced and repurposed in real-time to create the best viewing experience. This will hopefully lead to better and longer user sessions, more site loyalty, and ultimately increased revenue. 16

Questions?

THANK YOUJason DeMarcoA+E [email protected]

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