Upload
susan-takpi
View
262
Download
1
Tags:
Embed Size (px)
Citation preview
PROGRAMMATIC
THE CHALLENGES
1. What is Programmatic ?
2. Who cares & why ?
3. Challenges of programmatic
WHAT IS PROGRAMMATIC ?
A holistic approach through which media buyers and sellers may align organizational
processes with automation technology in support of ongoing, channel-agnostic customer
engagement (and to allow for the continuous optimization of that effort as business strategies
evolve). - Winterberry group (2013)
PROGRAMMATIC R.T.B FLOW
Source: Media Kitchen History of Programmatic
DMP - DATA MANAGEMENT PLATFORM
SSP - SUPPLY SIDE PLATFORM
DSP - DISPLAY SIDE PLATFORM
The workflow:
User comes to site triggers
impression
DMP send audience data to DSP
informs who should bid
Publisher sells Inventory via SSP
Traders commissioned by
Advertisers use DSP to bid for
Inventory
TYPES OF PROGRAMMATIC SELLING & BUYING
Source: media kitchen history of programmatic
Open exchanges traditionally
associated with remnant inventory
Shift towards Private exchanges for
premium inventory – Publisher regains
some control of pricing
Programmatic guaranteed - direct
publisher to advertiser
WHY THE INTEREST IN PROGRAMMATIC ?
Source: Winterberry Nov 2013 white paper programmatic everywhere?
INTERNATIONAL OUTLOOK
Source: Winterberry July 2014 white paper : Going global programmatic
audience around the world
Source: Winterberry Nov 2013 white paper programmatic everywhere?
CHALLENGES INHIBITING PROGRAMMATIC USE
CHALLENGE: TRANSPARENCY & TECHNOLOGY TAX
Technology tax”, claims 60-80%
of ad spending complain
advertisers and publisher –
economist (2014)
‘For every dollar a digital
advertiser spends on a
placement, a publisher reaps
around 45 cents - Seth Demsey
- svp of global advertising
products and strategy for AOL
Networks. (2013)
CHALLENGE: TRADITIONAL MEDIA PLANNING - DATA
ANALYTICS
Media planning – selecting
media Data analytics – selecting
audiences
CHALLENGE: RACE TO THE BOTTOM
Concerns Inventory will
become commoditised & drive
down prices
Cannibalise premium inventory
CHALLENGES: SUPPORTED FORMATS
IAB Standards supported by
Programmatic Custom formats unsupported by
Programmatic
CHALLENGE: COOKIES & MOBILE
Fragmented experience through
mobile apps browser
Limitations of cookies on mobile
Can restrict ability to make re
targeting across devise
CHALLENGES: MEDIA CHANNEL VS CREATIVE ENGAGEMENT
Brand building creative vs direct
response creative
A system where all ads are treated as
equal can penalizes award winning
creative.
Difficult to ensure an ad placement
bought programmatically is actually in-
view
CHALLENGE: CLICK FRAUD
Reduced direct relationship between
the advertiser and the publisher has
disappeared
Incentivise increase in click fraud
Anonymous site publishing with access
to ad exchange
KEY CHALLENGES OVERVIEW
Challenges Possible solutions
PUBLISHERS • Race to the bottom • Operational buy In
• Test the market short rolling contracts • Private market places for premium
inventory• Price floors in open auctions• Education
TECHNOLOGY • Lack of consolidation in ad tech
• Click fraud
• Centralisation & consolidation • Industry standardisation • More open source less proprietary
specialists• Disincentives fraudulent clicks • Avoid anonymous publishing • Click fraud detection tools
ADVERTISERS • Brand & reputation • Contextual relevancy
• Brand safety check