Smart Technology: Programmatic s Promised Efficiency

Transcription

1 Smart Technology: Programmatic s Promised Efficiency

2 History of Advertising

3

4 What is programmatic?

5 Programmatic /ˌprōɡrəˈmatik/ adjective Programmatic buying is the process of buying media in an automated fashion through digital platforms. This automated, real-time bidding process replaces the traditional use of RFPs, negotiations, and insertion orders to purchase digital media.

6 3 Primary Options for Buying Digital 1 Publisher Direct Upside Guarantees spot & content Custom units & SOV Downside Limited scale & targeting Scheduled, manual buys Dozens of IOs to manage 2 Ad Network Greater scale & targeting Lower cost for inventory Exclusive access Black-box buy Non-transparent margin 3 DSP Maximum reach & scale Full transparency Flexibility & decisioning Contract vs. IO based Usually self-service

7 Workflow & Billing Inefficiencies Haunt the Direct Model of Buying

8 Cut out workflow, setup, reporting, & billing inefficiencies associated with multiple ad networks and publisher IOs on a plan through a holistic, omnichannel buying platform.

9 The power of data & decisioning across publisher inventory

10 Programmatic in its simplest form is about choice.

11 Key Components of Programmatic Buys

12 Measurement & Verification Brand / Advertiser Agency / Trading Desk Ad Server / DCO DSP DMP RTB Marketplace SSP Publisher Ad Server Publisher

13 Measurement & Verification Brand / Advertiser Agency / Trading Desk Ad Server / DCO DSP DMP RTB Marketplace SSP Publisher Ad Server Publisher

14 RTB & Auction Mechanics

15 Choosing the Right User with Decisioning Example CPG Advertiser Target: W25-54, HHI $75k+, consuming cooking or home & family content Auction 1 CPM = $4 W45, HHI $100k Auction 2 CPM = $1 M21, student Auction 3 CPM = $3 W30, HHI $50k User 1 $2.01 CPM RTB provides a mechanism to efficiently buy targeted ads in real time, on an impression-by-impression basis. User 1 User 2 User 3

16 Myth 1: Transparency

17 Market Demands The Association of National Advertisers voted transparency as 2016 s marketing word of the year. Why every digital advertiser should demand transparency?

18 Market Demands Transparency Advertiser At this year s IAB Leadership Summit, P&G s brand chief, Marc Pritchard laid into Google and Facebook s walled gardens and demanded transparency from the digital supply chain telling attendees, We need better advertising to drive growth, enabled by media transparency, to drive a clean and productive media supply chain.

19 Market Demands Transparency Advertiser Publisher

20 Market Demands Transparency Extremely high margins Limited reporting Traffic Arbitrage is out of control

21 Transparency in Programmatic Granular Optimizations Increased decisioning power gives you the ability to make optimizations in one place Transparent Reporting Transparent reporting available in real-time, across all campaigns and channels Monthly Billing Cut back on IOs & receive one invoice with all costs clearly and transparently laid out

22 Transparency AND Performance Clear idea of budget allocations: % of take rate % of ad serving % of data cost % of media buying

23 You Are Empowered 1. Trim Inventory that doesn t perform 2. Pay the Right Price 3. Spend money where it works

24 Powerful Levers Ad Format Device Type User Day of Week Recency Supply Source Audience Country Fold Placement Operating System User Hour of Day Sales Cycle Site Category Data Elements State/Region Creative Browser Frequency Site DMA City/Town

25 Transparent Reporting Data / DMP Site / SSP 1 st Party Data 3 rd Party Data Language Site & SSP Device Browser / Types OS Example 1 st & 3 rd Party Data: lists CRM data stripped of PII Pixel-based (ex: site visit) Cross-Device Targeting S2S from other DMPs Mobile Device IDs Set-top-box TV data Mobile Carrier Time & DOW Device Make & Model Video Size & Quality Ad Format / Ad Size Geography / IP Address Viewability & Fold Recency & Frequency

26 1 Anonymous User 457 visits website and publisher sends request to fill one 300x250 ad spot 2 Ad Exchanges makes details of the impression spot available to buyers, including: geo, site, device, format 00:00: :00: $ rd party data: I offer $3.00 because the visitor is a year old mom reading premium news content $2.20 1st party data: I offer $2.20 because the visitor abandoned my shopping cart 2 days ago User 457 Auction winning bid = $2.21 $1.80 Geo data from ad exchange: I offer $1.80 because the visitor lives within 3 miles of my restaurant 5 Visitor sees creative from highest paying advertiser 00:00: Ad exchange selects highest paying advertiser and sends corresponding creative to publisher website 00:00: DSPs respond with different bids based on how they value that individual impression 00:00:

27 Man AND Machine

28 A transparent model benefits advertisers. Ad Network Model Ad Network Gets Lion s Share Agency Markup Transparent Margin Model Advertiser Gets Lion s Share Plus Lower Costs For Clients Upside For Advertisers Ad Network Markup [Non-Transparent Margin] $1.00 CPM Agency Markup DSP Markup Fixed % of Spend $0.15 CPM Actual Media Cost $1.00 CPM Actual Media Cost $1.00 CPM

29 Myth 2: Inventory Quality

30 Open Marketplace Private Marketplace

31 Premium, Relevant 1 st & 3 rd Party Deal EXAMPLE DEALS Test pubs without IOs Reporting by Deal ID STRATEGY: increase awareness and site traffic by aligning ads with premium publishers DEVICES & FORMATS: mobile, tablet, display, video, desktop Deals for every format

32 Myth 3: Scale

33 A single SSP provides access to many ad networks and publishers

34 SSPs help brands access the same inventory in an automated, decisioned way. Fully control targeting reach the right user for the right price Save time & money with negotiations, setup, billing, workflow Test out pubs without IOs, while striking deals with the most valuable inventory sources Holistic reporting across different sites, deal types, channels

35 Omnichannel Television, Broadcast TV, Connected TV Online Video Display Mobile/Tablet Audio Native

36 A Scaled Marketplace Display Inventory Partners Mobile Inventory Partners Video Inventory Partners Private Marketplace Contracts Third Party Desktop Data Partners Third Party Mobile Data Partners Third Party Cross Device Data Partners VIEWABILITY PARTNERS Moat Integral Ad Science Double Verify Peer 39 CONTEXUAL/BRAND SAFETY PARTNERS Integral Ad Science Double Verify Peer 39 Grapeshot MOBILE APP EVENTTRACKING Appsflyer Kochava Adjust Tune

37 Myth 4: Brand Safety

38

39 3 Primary Options for Buying Digital 1 Publisher Direct Upside Guarantees spot & content Custom units & SOV Downside Limited scale & targeting Scheduled, manual buys Dozens of IOs to manage 2 Ad Network Greater scale & targeting Lower cost for inventory Exclusive access Black-box buy Non-transparent margin 3 DSP Maximum reach & scale Full transparency Flexibility & decisioning Contract vs. IO based Usually self-service

40 DSP Brand Safety Controls DSP Controls User Controls via DSP SSP Contractual Obligations Inventory Vetting & Domain Blocking Sitelist Targeting Publisher Direct Third Party Pre-Bid Solutions

41 SSP Contractual Obligations Build accountability language in SSP Contracts Penalize SSP partners if Build accountability language contracts into SSP are contracts violated Example obligations: Adult, COPPA Compliance, Discrimination (race, gender, etc.), Violence, etc.

42 Automated and Manual Inventory Scan Domain Blocking via SSP

43 Platform User Controls DSP Controls Sitelists DSP Maintained Blacklist Agency mandated Blacklists and/or Whitelists Advertiser mandated Blacklists and/or Whitelists Ongoing blocking based on delivery

44 Platform User Controls Direct Programmatic Buying

45 Platform User Controls Pre-Bid Brand Safety Technologies

46 Myth 5: Media Channel

47 A single-channel is only a piece of the pie the rest is missed opportunity.

48 Programmatic is the full pie Display Video Mobile Audio Native CTV

49 The way consumers are engaging with advertising is drastically changing.

50 Immersive formats for every one of your consumer s lifestyles & habits From audio and app-based TV apps, to mobile interstitials, in-feed, and pushdowns your plan is much more than a banner ad.

51 Think holistically about your ideal media mix run complimentary strategies.

52 Influence Consumer Journey with Real-Time, Data Driven Precision advanced data activation & look-alike hyper-granular targeting holistic 1-to-1 targeting real-time insights & optimizations bid factor algos minimize spend waste unified reporting

53 Data Prospecting Lower Funnel Mid-Funnel Strategies High Impact Formats Video Audio Contextual Behavioral Lookalike Native Retargeting Cross-Device 1 st Party Extension

54 The Future of Programmatic

55 Programmatic buying is becoming more popular as marketers increasingly take an audience-centric approach to their display ad buys, Lauren Fisher, emarketer Senior Analyst.

56 The Future The future of the Internet will remain ad-funded. To thrive, it will require a more deliberate and thoughtful approach to targeting and measurement than we have today. Our industry needs to work together to embrace industry-wide transparency and viewability standards to combat poor media supply chain practices.

57 Trading Academy Program

58 Appendix

59 Fight & Prevent Online Fraud in 3 Steps Leverage Historical Data Apply learnings and data from past activity to future decisionmaking to prevent fraud and malicious activity Partner with Industry Leaders Address fraud and nonhuman traffic detection using both internal platform solutions and tools from DSP partners Focus on Quality & Transparency Apply learnings and data from past activity to future decisionmaking to prevent fraud and malicious activity Partner Solutions: Below are example Partners that provide fraud protection capabilities.

60 AUDIENCE AD EXCHANGES / SSPs ADVERTISER S MEDIA INVESTMENT $ $ $ AGENCY PROGRAMMATIC ARM AD SERVER DCO DCO Publisher Contracts & Direct Tags DSP v Bidding Variables: Geo, Frequency, Site, Time, Date v Algorithmic Optimization v Reporting & Insights Pre-Bid: Page Quality, Brand Safety, Contextual BIDDER PUBLISHER AD SERVER PUBLISHER MEASUREMENT & AD VERIFICATION

61 A closer look at the importance of data

62 Measurement & Verification Brand / Advertiser Agency / Trading Desk Ad Server / DCO DSP DMP RTB Marketplace SSP Publisher Ad Server Publisher

63 The internet is a BIG place.

64 5 million Queries per Second. 300 million impressions per minute. 18 billion impressions per hour. 432 billion impressions per day.

65 So how do we find Waldo in a sea of so much information?

66 It can take up to 75% of a campaign s flight and budget this is not possible in short flights. Most of this waste can be eliminated before a single impression is put into market.

67 How? Data. (Cookie & Device ID-based)

68

69 Put data at the center of your plan. 1 st Party Data (advertiser owned) Active tags on sites, apps, events Homepage visits, conversion, app download, clicks, video view Offline data, CRM lists, offline purchases, addresses, rewards card member 3 rd Party Data (data partners create & own) Online and offline collection methodology Purchases, web browsing, public records, banks, in-app Lookalike Modeling Find 3 rd party segments that look most like 1 st party audience

70 How Audience Data is Created: Web vs. App Identifiers How Data Elements are Built Web Audience Data Cookie IDs Unique to each Ad Tech company Requiring syncing Cookies expire Previous Web Behavior Sites that you have visited App Audience Data Device IDs Persistent (no syncing) No limit lifespans Previous Physical Location Based on your real world location

71 Some primary data collection methodologies Banks, credit cards, financial institutions Online & offline retail purchases Set-top-box television data Public records & demographic info SKU-level purchase info Web browsing activity, interests, & surveys Panel & research based Current or previous mobile or IP location Mobile activity & app ownership Social media shares & activity

72 Use 1 st party data to inform your entire buy. A lookalike model shows you a group of users that exhibit traits most similar to known converters or valuable first party audiences lookalike modeling positions your media to reach the right user before a single impression is put into the market. site / category geography IP address browser / OS audience device type time of day date / DOW

73 Without pixels on your brand s site, & audience targeting on the plan No retargeting clickers, video viewers, site visitors, and no sequential messaging Oversaturation to brand, issues with frequency caps No cross-device targeting to other phones, laptops, tablets associated with your audience s profile No insight into user s full path to conversion, or optimize to conversion or site visit events Wasted budgets in learning phase of campaign from not leveraging lookalike modeling