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IAB Programmatic 101 Webinar
Citation preview
Programmatic 101 for Direct Sellers
31 March 2014
IAB
Questions?
Attendees should ask questions by typing into the Question box on the GoToWebinar user interface at any time during the presentations.
– We will create a queue and answer as many questions as possible following the presentations.
– Additional questions should be directed to Nicole Horsford, [email protected]
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Agenda Introduction What is programmatic?
●Patrick Landi, Time Inc Selling programmatic
●Steph Layser, MailOnline Programmatic sales evolution
●Kate Ammann, Monster IAB Activities on Programmatic
●Carl Kalapesi, IAB Q&A
www.iab.net/programmatic
What is programmatic?
Patrick Landi, Time Inc
Programmatic Defined
Programmatic buying is the process of
executing media buys in an automated
fashion through digital platforms such as:
exchanges, trading desks, and demand-
side platforms (DSPs). This method
replaces the traditional use of manual
RFPs, negotiations and insertion orders to
purchase digital media
www.iab.net/programmatic5
Real Time bidding (RTB)Defined
eMarketer:
Real-time bidding (RTB) is a digital advertising technology that lets marketers buy and publishers sell display ads dynamically, in real time, on an impression-by-impression basis.
Scott Spencer, Director of Product Management, Ad Exchange, Google
"Real time bidding (n);
1) A technology introduced in 2009 to make it easier for ad networks to buy only the inventory they want.
2) A common buzzword that is part of everyone's business plan in 2013.
3) The act of buying digital inventory from multiple publishers on an impression by impression basis, typically involving an auction pricing mechanism.
4) One of the biggest opportunities for publishers to participate in new media spend, but not a panacea if done in isolation.
www.iab.net/programmatic6
Open Marketplace vs Private Marketplace
Open Marketplace allows buyers to purchase media on an audience basis through cookie-based targeting; achieving scale is usually a higher priority than running campaigns with specific publishers
Private Marketplaces (PMP) allows publishers to leverage programmatic technology(s) while maintaining a direct relationship with agencies, advertisers, trade desks and other programmatic buyers using a “Deal ID” to transact
Benefits:• Greater control- specific rules around access to buyers can be
created• Prioritization• Exclusive inventory and access• Transparency leads to higher CPMs for publishers and brings new
advertisers previously wary of programmatic• Access to publishers’ first party data
www.iab.net/programmatic7
Nissan wants to buy on your Site
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$300 million advertising budget
$50 Million Digital Budget goes to…$500K goes towards a sponsorship on
your site
YOURSITE
$1 million budget allocated to programmatic and goes to…
$100k allocated to YourSite’s private exchange
Agency trade desks license technology (a bidder) to buy programmatically,
using a Demand Side Platform (DSP)…
Publishers license technology to sell programmatically, using a Sell Side
Platform (SSP)…
YOURSITE Exchange
8 www.iab.net/programmatic
Holding Company Trade Desk Mapping
Holding Co. Agency Trade Desk
AMNET
www.iab.net/programmatic9
Selling Programmatic
Steph Layser, MailOnline
Programmatic Transaction – Start to Finish
www.iab.net/programmatic11
Know what makes your property’s programmatic offering unique
Be consultative and drive data conversations that make sense for your advertiser
Know the big players in programmatic and remain educated in the marketplace
Top Three Lessons in Selling Programmatic
www.iab.net/programmatic12
What makes your
property unique?
Audience
Viewability
Scale
Non-standar
d ad units
First Party Data
Custom Opportunities
Transparency
Content
What makes your property unique?
13 www.iab.net/programmatic
Future of the Programmatic Salesperson
Relationships Matter More Than Ever
Focus on Higher-Value Add
Need for Continued Education and Evolution of Compensation Models
14 www.iab.net/programmatic
Programmatic sales evolution
Kate Ammann, Monster
Being proactive around programmatic
How can I be proactive about bringing programmatic into my sales conversations?
RTB and Private Marketplace use as a lead generation tool Leverage existing relationships (agency/network/trading desk,
etc.) to position yourself as a holistic partner• Package custom sponsorships/integrations/high impact units with
RTB/automated buy Productize Programmatic
• Private Marketplace First-Party Data
• Offer data through programmatic channels• Hybrid on-site/off-site audience packages
16 www.iab.net/programmatic
IAB activities on Programmatic
Carl Kalapesi, IAB
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IAB launches Programmatic Council to packed house
Agreed 4 priorities for 2014:
1. Building a transparent & fair marketplace
2. Marketplace education and training
3. Standardization of definitions, terminology, and best practices
4. Making Programmatic work for brands
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What we talk about when we talk about programmatic
www.iab.net/programmatic
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Three Programmatic “Digital Simplifieds” published in 2013
www.iab.net/programmatic
OverviewOverview SalesforceSalesforce TransparencyTransparency
Many thanks
Carl Kalapesi, Director, Industry Initiatives
Contact:
Twitter: @carlkalapesi
22 www.iab.net/programmatic
Carl KalapesiDirector, Industry Initiatives
Steph LayserMailOnline
Open Discussion / Q&A
Patrick LandiTime Inc
Kate AmmannMonster
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Appendix
Other Common Terms
•Demand Side Platform (DSP): a company that provides technology for media buyers
to purchase advertising through real time bidding technology
Examples: Turn, MediaMath, DoubleClick Bid Manager, X+1, DataXu
•Sell Side Platform (SSP): a company that provides technology for publishers to sell
their unsold inventory through real time bidding and other programmatic technologies,
enabling publishers to manage multiple demand sources within one platform
Examples: Rubicon, PubMatic, Google AdX, OpenX, Casale
•Data Management Platform (DMP): (as defined by Lotame)the backbone of data-
driven marketing, and serves as a unifying platform to collect, organize, and activate
your first- and third-party audience data from any source, including online, offline, or
mobile.
Examples: BlueKai, Exelate, Lotame
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Deal ID Defined
IAB Definition:
A Deal ID is an additional parameter that is passed in a bid request/bid response. In addition to things like timestamp, URL, IP address, cookie info, etc. many platforms now also have the ability to pass the Deal ID on with transaction. Deal ID is a unique string of characters that are used as an identifier for buyers and sellers. The buyer and seller will decide what that unique string of characters is defining. Depending on what platform you are using this could include things like priority, transparency, floor pricing, or data. A deal ID can usually be applied to any of the tactics that are executed through RTB pipes
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Four types of programmatic transactions
Type of Inventory (Reserved, Unreserved)
Pricing (Fixed, Auction)
Participation(One Seller-One Buyer,One Seller-Few Buyers, One Seller-All Buyers)
Other Terms Used in Market
Other Considerations
Automated Guaranteed
Reserved Fixed One-One Programmatic guaranteedProgrammatic premium Programmatic directProgrammatic reserved • Prioritization in
the ad server• Deal ID• Data usage• Transparency to
buyer• Price floors
Unreserved Fixed Rate
Unreserved Fixed One-One Preferred dealsPrivate accessFirst right of refusal
Invitation-Only Auction
Unreserved Auction One-Few Private marketplacePrivate auctionClosed auction Private access
Open Auction
Unreserved Auction One-All Real-time bidding (RTB)Open exchangeOpen marketplace
The Origins of programmatic• 1994- Hotwired sold the first banner add to AT&T
• 1998- Adnetworks like 24/7 Real Media started to emerge to aggregate and resell publishers’ unsold inventory
• 2005- Right Media launched the first digital exchange in order to start aggregating cookies, allowing publishers to start segmenting their audiences via cookies and 3 rd party data BUT was not the first to offer real time bidding (RTB)
• 2008- Agency Holding Company’s started developing trade desks to handle all exchange based buying and become in house experts on programmatic buying and selling
• 2009- Demand Side Platform (DSP), Turn executed the first real time bidding (RTB) buy via Sell Side Platform (SSP), PubMatic allowing advertisers to start bidding on individual impressions in real time
• 2011-2012- Publishers start building private exchanges, carving out inventory segments to an exclusive subset of programmatic buyers (primarily agency trade desks and direct advertisers)
• 2012- Facebook exchange launches, allowing advertisers to bid on facebook impressions, then retarget those users across the internet; estimates are it’s already bringing in an additional $15-25 million in revenue
• September 2013- AOL launching the first “Programmatic Upfront”
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Programmatic Ecosystem Simplified
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Advertiser Agency Who Manages Programmatic?
Who Manages the Buy? It Depends…