PROGRAMMATIC HEALTH 101

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1 PROGRAMMATIC HEALTH 101

2 INTRODUCTION Welcome to Programmatic 101! This tool provides the fundamentals and basics of programmatic advertising to help you devise an optimized strategy. It covers all aspects of programmatic from basic definitions to programmatic buying logistics to tools and technologies used. It cites recent industry articles and statistics to familiarize you with the basics and illustrates today s programmatic health landscape. Whether you are an advertiser or a publisher, this overview will enable you to harness the power and efficiency of programmatic for your business while expanding your programmatic knowledge as a whole. Continue on to learn the basics of programmatic advertising and how to integrate it across marketing channels.

3 WHAT IS PROGRAMMATIC Programmatic refers to the automation of digital media buying. Unlike the traditional media buying process of RFPs, negotiations and manual insertion orders, programmatic ad buying uses software to facilitate the buying and selling of ads. Programmatic offers a number of benefits versus traditional buying, including Automated system Ability to integrate data for more enhanced targeting and decisioning Real-time optimization More extensive reach Cost efficiencies MANUAL AUTOMATED

4 WHY PROGRAMMATIC FOR HEALTH Programmatic allows brands to hypertarget their messaging. Benefits include Ability to reach niche audiences, especially important in an era with more drug approvals for rare diseases and specialized indications Movement towards targeting regional markets Reducing media waste Opportunity to customize creative for patient segments Recognition (and measurement) that personalization drives results Available to target healthcare professionals (HCPs) programmatically Find increasingly difficult to reach HCPs (over 50% of HCPs are no-see*) Increased reach and frequency to HCP audience as a complement to site-direct buying Facilitating cross-channel opportunities with programmatic buys across display, mobile, video, native, audio, CTV and others *

5 THE OPPORTUNITY IN PROGRAMMATIC HEALTH MARKETING IS MASSIVE 78% 37% of all US Digital Ad Spend was programmatic in 2017 of all US Healthcare Digital Ad Spend (DTC + HCP) was programmatic in 2017 (rose from only 19% in 2016)

6 WHY IS HEALTH SLOW TO ADOPT? Heavy regulation Perception that traditional media is best Lack of programmatic education Common stigmas: Wastage, negative press Brand safety

7 HOW DOES PROGRAMMATIC WORK? Programmatic uses technology to link buyers and sellers of advertising inventory REVEAL TOOLTIPS ON HOVER

8 HOW BRANDS BUY PROGRAMMATIC INVENTORY A core subset of programmatic, Real Time Bidding (RTB), is the standard protocol through which buyers and sellers hold auctions for advertising inventory. RTB facilitates near instantaneous transactions on individual impressions. Given how central RTB has been to the development of programmatic, many conflate the two terms, however not all programmatic is RTB. Other forms of programmatic (programmatic direct/programmatic guaranteed) that are not auction-based exist and may be preferred, especially in verticals like healthcare where quality inventory is a driving factor. The following section includes 4(a) How Does RTB Work? 4(b) Auction Mechanics 4(c) Ads.txt 4(d) Types of Programmatic Ad Buying 4(e) Open Auctions 4(f) Private Auctions 4(g) Programmatic Direct 4(h) Programmatic Guaranteed Overview 4(i) Pros and Cons of Each Buying Option

9 HOW DOES RTB WORK? RTB (Real Time Bidding) is a type of programmatic buying or selling ad space in a real time auction that takes into consideration user data to access the value of impression. It is a dynamic process where bids happen on a single impression as opposed to a static auction where the impressions are typically sold in groups of 1,000. The main components of the RTB process are Publishers (the site that user visits) make ad slots available, also known as inventory. Supply-Side Platform (SSP) designed to help publishers sell their inventory on a number of ad exchanges in an automated, secure efficient way. Even though publishers don t need to use an SSP in order to sell their inventory on the ad exchange, the technology used in SSPs provides them with many benefits that allow them to receive the most yield from their inventory and gain clearer insights into their audience. Ad Exchange a dynamic technology platform that facilitates the process of selling and buying between advertisers and publishers. Demand-Side Platform (DSP) the advertiser s equivalent of the SSP used by publishers. The DSP stores display ads (also called creatives) that the advertisers would like to appear on websites. Advertiser (or media buyer) companies or agencies representing a number of different brands.

10 AUCTION MECHANICS RTB process begins when an internet user accesses a website or web application. The publisher s site signals to the SSP that there is an impression available. The SSP analyzes the information about the user (location, web history, age, gender and any other user information available) and sends this information to the ad exchange. Once the ad exchange receives this information, it connects to the DSPs and relays user information. The ad exchange starts an auction, and DSPs bid on the impression based on how they value a particular impression, determined by predefined parameters set by the advertisers in programmatic campaigns. The advertiser who bids the highest amount wins. The bid is then sent back to the publisher and the ad is displayed to the user. This whole process happens in milliseconds and is repeated for every available impression on a web page each time a user accesses a website, accesses a new page or refreshes the page.

11 ADS.TXT PROTECTING BUYERS AND SELLERS The Interactive Advertising Bureau Tech Lab introduced ads.txt as a tool to help both buyers and sellers avoid unauthorized inventory sales, including arbitraged inventory and spoofed domains. On the supply side, a publisher will add a text file (named ads.txt) on every website that lists all of the companies that are authorized to sell their inventory programmatically, including SSPs, Exchanges, and other programmatic sales partners. On the demand side, DSPs can validate that bid requests are coming from a company that has been included on that domain s ads.txt file.

12 TYPES OF PROGRAMMATIC AD BUYING

13 OPEN AUCTIONS OVERVIEW A publisher can make their inventory available all or only designated parts of it to all available buyers via an ad exchange or SSP. Typically, the publishers will set rules and specific blacklist/blocks, but all available buyers are able to bid on their supply as long as it passes the publishers rules.

14 PRIVATE AUCTIONS OVERVIEW A Private Marketplace (PMP) is a special RTB auction where one publisher or a select number of publishers allows a select number of buyers to bid on its inventory. Private Marketplace deal IDs allow sellers to group packages of inventory with certain characteristics together in order to surface to buyers. For example, a large publisher with multiple properties can group all of their diabetes content into a diabetes PMP. PRIVATE AUCTION BREAKDOWN Private auctions provide publishers more control over how their inventory is sold, as the deal ID is only made available to specific buyers at specific minimum prices. The sellers can set prices for each buyer.

15 PROGRAMMATIC DIRECT Programmatic Direct refers to the process of buyers and sellers on key purchase terms for programmatic transactions. On the sell side, a publisher can set aside specific inventory and/or audiences for a buyer at a predetermined CPM. On the buy side, the brand/agency can secure premium inventory at a specific CPM and apply targeting to the pool of inventory made available by the publisher. Programmatic direct deals are normally transacted via Private Marketplace Deal IDs. Programmatic Direct is growing. According to Google,* Programmatic Direct has nearly doubled for healthcare publishers in the last year. While programmatic direct allows you to automate many types of buys, not all inventory or custom solutions will be available via programmatic channels. PROGRAMMATIC DIRECT PUBLISHER (HEALTH) GROWTH* Key Differences: There is one seller and one buyer Seller can sell multiple properties Fixed CPM which is negotiated between seller and buyer Seller controls optimizations and performance *Data from

16 PROS AND CONS OF PROGRAMMATIC DIRECT Buyers can retain moderate levels of targeting at scale, while also ensuring a high level of premier inventory in a more predictable pricing model with possible guaranteed inventory. Key Advantages Priority access to inventory with a price that will not fluctuate Secure, guaranteed inventory to ensure you reach your budget goals and/or lock in specific inventory/avoid sell-outs (Programmatic Guaranteed) Increased transparency with reduced routing time Publishers control which buyers can buy their most premium inventory Publishers benefit from increased predictability in their programmatic revenue stream Possible Negatives Locking in a price that could be a premium over what is available in the open RTB marketplace Inventory for buyers could be limited Limited optimization opportunities due to smaller inventory pool Technical integrations are required between the buy- and sell-side platforms this sometimes prevents programmatic direct deals from being possible Programmatic Direct cannot automate everything. Publishers still decide which inventory or custom solutions they allow via programmatic technology

17 PROGRAMMATIC GUARANTEED OVERVIEW Programmatic Guaranteed is a type of programmatic direct inventory trading. Programmatic Guaranteed inventory is reserved for a specific buyer and cannot be sold to a different buyer who may bid a higher price. This means that the buyer is assured of securing the inventory they need with all the advantages of programmatic buying, including automation and collection of user data for retargeting campaigns. Programmatic Guaranteed benefits both buyers and publishers. Using this method of buying, both sides are able to set terms up front with assurance that buying will happen on specific inventory. In other words, the buyer is guaranteed specific impressions at a set price, and the publishers are guaranteed their revenue for the specified inventory being included in the guaranteed deal.

18 THERE ARE PROS AND CONS FOR EACH BUYING OPTION PROGRAMMATIC BUYING OPTIONS

19 HOW PUBLISHERS MAKE INVENTORY AVAILABLE IN PROGRAMMATIC: INTRODUCTION Publishers can make their inventory available in multiple ways via ad exchanges, Supply Side platforms and other monetization companies. Publishers can apply a specific amount of inventory to any of these systems at their desired threshold applied from their own publisher-side ad server. The following section includes 5(a) Supply-Side Platforms Overview 5(b) Selling Your Inventory Via Programmatic 5(c) Waterfall Auction Overview 5(d) Header Bidding Overview

20 SUPPLY SIDE PLATFORMS OVERVIEW A supply-side platform is a piece of software used to sell advertising in an automated fashion. SSPs are most often used by web publishers to help them sell display, video and mobile ads. A supply-side platform is the publisher equivalent of a DSP. How does it work? SSPs allow publishers to connect their inventory to multiple ad exchanges, DSPs and networks at once. This allows a range of potential buyers to purchase ad space and for publishers to theoretically get the highest possible rates by exposing inventory to wide demand.

21 SELLING YOUR INVENTORY VIA PROGRAMMATIC There are two primary ways that publishers sell off their inventory programmatically: Waterfall Auctions and Header Auctions WATERFALL AUCTION VS. HEADER AUCTION

22 WATERFALL AUCTION Publishers can plug their inventory into programmatic demand sources via tag-based integrations in their ad server. Typically, publishers will set up programmatic demand at a different priority level than their direct-sold campaigns that compete with other tag-based integrations at that same priority. These are usually at a price priority set by the publisher in ad server. Often called a waterfall, the highest paying demand source will get the first look at each eligible ad impression. If the highest paying demand source does not fill the impression, the ad server will continue making subsequent ad requests to other demand sources in order of CPM until the impression is filled. If using DoubleClick for Publishers (DFP), these will compete with Google Ad Exchange s dynamic allocation, which is designed to traverse the waterfall. Pros Publisher can prioritize tag-based partners in their ad server and control daily volume Publishers who are new to programmatic can easily make their inventory available to programmatic demand partners using their existing ad server with no engineering resources required Con CPMs typically fluctuate and the publisher must update the CPM assigned to each demand source to reflect their average win price; this can require a lot of manual intervention

23 WATERFALL AUCTION: BUYER S PERSPECTIVE When a buyer receives a bid request from a waterfall auction, that piece of inventory is guaranteed to them if they have an eligible campaign to place a bid. A waterfall makes a single request to a programmatic partner (DSP or Exchange) with the express intent to serve an ad from that demand source, regardless of the highest bidder s price. The highest bidder from that Exchange or DSP will win that piece of inventory. Tag-based integrations provide direct access to the webpage where the ad will render, providing better visibility into audience attributes and allowing the demand partner to directly sync user information for audience targeting. Conversely, in header bidding, there are separate practices in place to synchronize audience attributes with demand partners that lead to more unknown user bid requests. If a user is unknown, buyers are unable to conduct like audience targeting and frequency capping.

24 HEADER BIDDING OVERVIEW Header Bidding is a streamlined method of integrating programmatic demand into your advertising stack. It reduces inefficiencies caused by the tag-based waterfall traditionally used in order to enable Real Time Bidding from multiple demand partners. How It Works A piece of code, the Header Bidding Wrapper, is added to the publisher s website. This code facilitates multiple simultaneous bid requests to multiple programmatic partners all before an ad request is made to the primary ad server When the ad server makes a request for an ad, the header bidding wrapper then passes the highest bid to the ad server to render Once a wrapper integration is done, it is very easy to add or remove bidders to your demand stack Pro: Theoretically maximizes yield Con: Complex to set up; may cause significant page load latency

25 HEADER BIDDING: PUBLISHER WATERFALL EXAMPLE A publisher who previously had a waterfall tag setup will increase yield by integrating a header bidding wrapper because the wrapper increases the number of demand sources competing for each available piece of ad inventory. With a waterfall tag, a publisher estimates the win CPM of each demand source based on past performance, not real-time bid information. In this example, a publisher has demand partners with the following historical performance: Demand Partner 1 $1.20 CPM Demand Partner 2 $1.10 CPM Demand Partner 3 $2.00 CPM This publisher s waterfall would follow these steps for each ad request: Is there a direct-sold campaign that matches this ad request? If yes, serve this ad If no, move to next step in the waterfall Demand Partner 3, do you have an ad? If yes, serve this ad If no, move to next step in the waterfall Demand Partner 1, do you have an ad? If yes, serve this ad If no, move to next step in the waterfall Demand Partner 2, do you have an ad? If yes, serve this ad If no, move to next step in the waterfall

26 HEADER BIDDING: PUBLISHER WATERFALL EXAMPLE Let s imagine for that particular request, this is the actual CPMs each demand source was willing to bid: Demand Partner 1 $5.20 CPM Demand Partner 2 $0.20 CPM Demand Partner 3 $1.75 CPM In the waterfall example, the publisher would make the first request to Demand Partner 3 and serve their ad regardless of what CPM they are actually willing to pay because they do not yet know what Demand Partners 1 and 2 are willing to bid. In this case, the publisher is serving an ad at a full $3.45 CPM less than what Demand Partner 1 was willing to pay. In header bidding, this publisher would have received all bids at once, and the header bidding wrapper would select Demand Partner 1 to buy that impression.

27 HEADER BIDDING: BUYER PROS AND CONS Pros Header bidding vastly increases the scale of inventory made available to programmatic buyers because every impression was now being made available to multiple DSPs and Exchanges simultaneously. With improved scale comes greater ability to find the right target audience and optimize buying decisions to more efficiently reach the right audience. Cons While increasing availability of inventory to programmatic buyers, header bidding increases the competition for that inventory. While buyers can still find inventory at efficient pricing, there is also a great deal of competition to secure quality inventory with attributes most buyers are looking for like high viewability, premium domains and placements in uncluttered ad environments with higher engagement. Header bidding also changes the way that demand-side platforms identify which users are available for targeting for things like audience targeting.

28 DATA IN THE PROGRAMMATIC WORLD: INTRODUCTION If technology is the engine of programmatic media buying, then data can be considered the gasoline that fuels it. With ever-increasing data available to marketers today, it s imperative to leverage the right data that allows you to most effectively and efficiently reach your target audiences and fulfill your business objectives. Many healthcare brands have traditionally embraced some combination of contextual targeting (placing ads alongside relevant condition content on both health and lifestyle sites), demo- and geo-based targeting (serving ads to consumers in certain age groups or geographic areas with higher condition incidence rates) and behavioral targeting (using consumers online or offline activities to inform ad placement). The following section includes 6(a) Audience Targeting Overview 6(b) Targeting Reduces Waste Through Precision and Accuracy 6(c) DTC Audience Targeting 6(e) Onboarding Your Data 6(f) Cross-Device Unique User Reach 6(g) Data-Management Platform (DMP) Overview 6(d) HCP Audience Targeting 6(h) Retargeting Overview

29 AUDIENCE TARGETING OVERVIEW One of the primary benefits of programmatic advertising is having enough inventory reach and scale to leverage sophisticated audience targeting to find the right patient, provider or other desired audience member. DISPLAY ADVERTISING ESSENTIALS Differences between direct buys and RTB A key aspect of planning and executing a successful programmatic is the data and methodology used for targeting your campaign. Advertisers have a range of sources, choices and models which vary widely based on audience, objectives and budgets.

30 TARGETING REDUCES WASTE THROUGH PRECISION AND ACCURACY More recently, targeting approach advancement allows brands to reach audience segments that are more likely to perform a specific health action, such as treating Type 2 Diabetes or treating with a specific Type 2 Diabetes drug brand. Many companies have already found success in this approach to reach target health audiences through programmatic media, and the number of major publishers, DMPs and DSPs that enable this type of targeting continues to increase. Identifying and using the right data for your programmatic buys is key, as inaccurate data or proxy data alone can lead to media waste and inefficiencies. Moreover, validating your targeting strategy by measuring the audience reached by your campaigns and the campaigns impact from a clinical or prescription sales perspective is essential.

31 DTC AUDIENCE TARGETING The healthcare segment has resisted programmatic adoption due to concerns about potential issues with privacy, legal and regulatory compliance, but that is rapidly changing. Patient targeting must remain fully HIPAA compliant and abide by regulations regarding sensitive categories of disease states and medical conditions. Privacy and regulations requiring some messaging content must be opt-in while others may target a wider audience based on various demographic, population data, contextual content targeting and anonymized disease state data. Before media planning, data selections and campaign execution, familiarize yourself with the self-regulatory Interactive Advertising Bureau (IAB) guidelines, including Network Advertising Initiative (NAI) Code of Conduct and Digital Advertising Alliance (DAA) principles. The NAI Code of Conduct clearly defines handling of personally identifiable information (PII), device and location data, what is considered sensitive information and many other self-regulatory and legal compliance guidelines. The DAA principles establish and enforce responsible privacy practices across industry for relevant digital advertising, providing consumers with enhanced transparency and control through multifaceted principles that apply to multi-site data and cross-app data gathered in either desktop or mobile environments. Review the Sensitive Data (NAI Code of Conduct) definition in the PHC Glossary to learn more about what might be considered a sensitive condition.

32 TYPES OF DATA AVAILABLE FOR DTC TARGETING While selecting the types of data you use to reach your target audiences and serve the most relevant advertising messages is important, working with partners who can make the right connections across different data sets is vital to optimizing your targeting strategy. Key Data Types First-Party Data including information provided by consumers upon registering on websites or participating in online surveys Contextual Data informed by the specific type of content a consumer is exposed to upon visiting a website (e.g. a web page that features a symptom checker for diabetes) Demo Data that identifies a consumer s age, gender, ethnicity or other attributes Geo Data that pinpoints a consumer s geographic region, DMA or zip code Behavioral Data that captures consumers online visitation, engagement, ad exposure and/or purchasing behavior across desktop and mobile sites Modeled Data that combines various data sets to pinpoint consumers who are more likely to take a specific health-related action

33 HCP AUDIENCE TARGETING When targeting physicians and healthcare professionals (HCPs), privacy and other self-regulatory guidelines such as those of the DAA guidelines and NAI Code of Content still require compliance. You should be familiar with them and how they relate to all types of programmatic advertising not just healthcare. Targeting HCPs at the National Provider Identifier (NPI) level is valuable to the advertiser. NPI targeting allows the use of prescription (Rx), diagnosis (Dx) and procedure (Px) data to be utilized as well as other professional attributes and even CRM data. Beyond your own first party data which might include visitors to your brand websites or communications, there are numerous sources of third party HCP targeting data. Like any product or service, they vary widely in accuracy, quality and scope. The first thing to understand and ask of any vendor is the degree of deterministic versus probabilistic targeting the data represents. To have accurate digital targeting, the one-to-one relationship between offline identity (sometimes called offline persona) to the online identity (digital persona) is key to not only effectiveness but also regulatory compliance. Like many things, the methods that achieve this offline/online linkage are not binary but on a continuum from deterministic to probabilistic matching. Deterministic means extremely high confidence that the identity linkage is accurate, while probabilistic means that there is some level of probability that the link is accurate.

34 TYPES OF DATA AVAILABLE FOR HCP TARGETING Recent advances in data and technology have also made it possible to reach relevant HCPs at scale with greater precision by accurately linking offline HCP information (e.g., NPI, DEA, state license, association/ organization data) to online digital identities. This empowers advertisers to more effectively reach their target HCPs across the full digital landscape, including the multiple devices HCPs use and the various types of professional and consumer websites they visit on a regular basis. Key data types include First-Party Data including information provided by HCPs upon registering on websites or participating in online surveys Contextual Data informed by the specific type of content an HCP is exposed to upon visiting a website (e.g. a web page that features a symptom checker for Diabetes) Geo Data that pinpoints a physicians geographic region, DMA or zip code (conference attendees) Behavioral Data including script-writing behavior, diagnosis behavior, etc. Modeled Data that combines various data sets to pinpoint physicians who are more likely to take a specific action

35 ONBOARDING YOUR DATA Data onboarding is the process of transferring offline data to an online environment for marketing needs. Data Management Platforms (DMPs) provide the unique ability to generate audience segments based on first party data that is stored and analyzed within the DMP. Prior to the segmentation, marketers must decide on data and how it will be onboarded into the platform. We ll provide two common use cases of how this can be achieved prior to the activation of these rich data sets. 1. Pixel or Javascript code: DMPs offer easy to implement first party tags that help collect key data elements from advertisers digital touchpoint. This solution can be deployed across desktop/mobile web pages as well as other tactics including Offline Data and CRM: Offline sources can range from in-store purchases to loyalty cards to Customer Relationship Management (CRM) data. These actions can tell a much different story than those of the online user; especially when trying to create a cross-media strategy. In order to bring that data online, a match must be made between offline profile with online profile (cookie). This gives marketers the wholistic offline and online view of who their consumers are and how to best activate their marketing tactics against that audience segmentation. Audience segmentation allows you to differentiate characteristics about subsections of a group of users. For example, in a target list HCP audience, you may want to segment the HCPs on that target list based on prescribing behaviors you know about those HCPs from other marketing efforts. This segmentation happens prior to onboarding and setting up digital audiences to target. You may want to further segment those audiences based on insights gathered from running a media campaign to that audience. DMPs make it very easy to apply audience segmentation throughout the lifespan of a digital marketing investment.

36 CROSS-DEVICE UNIQUE USER REACH When managing and maintaining audiences in a DMP, it is important to have a persistent method to identify and target a unique user across all of the devices that they use. Cross-screen vendors layer an additional unified view of customers to enable cross-screen unique identification and targeting. Utilizing a cross-screen vendor allows you to better control frequency and messaging to individuals you are trying to reach and enables you to extend your ability to reach your firstparty audiences by identifying additional devices and browsers that are associated with that unique individual.

37 DATA MANAGEMENT PLATFORM (DMP) OVERVIEW A DMP is a digital tool and resource that acts as a warehouse collecting data from first, second and third party data sources. The platform analyzes and organizes this wealth of data, providing marketers with customer insights and defining audience segments against which it can be activated. Mirroring offline and online data to create these segments gives marketers a deeper understanding of their customers and provides data-driven decisioning for media placement, creative targeting and ongoing optimizations. This provides timely and relevant messaging to the right people at the right time.

38 COMBINING DMPS AND DSPS DMPs and DSPs often go hand in hand. In fact, most DSPs include some DMP functionality. A buyer may employ both a standalone DMP and a DSP s DMP to handle different aspects of audience management. Standalone DMPs are integrated with most DSPs, enabling easy transfer of first party audiences to a DSP to buy media against that audience. DSPs can bake in DMP functionality to allow you to develop custom audiences and lookalike audiences to expand the scale of any audience you are targeting. DSPs can also include audience collection mechanisms to further build your first party audiences.

39 RETARGETING OVERVIEW Retargeting, also known as remarketing, is a form of online advertising that keeps the brand top-of-mind after a consumer takes a relevant action online. While site retargeting is one of the most common applications, marketers also use retargeting to engage users after a relevant search engine visit or CRM . How does retargeting work? For most websites, only 2% of web traffic converts on the first visit. Retargeting is a tool designed to help companies reach the 98% of users who don t convert right away. Retargeting is a cookie-based technology that uses simple Javascript code to anonymously follow a brand s audience all over the web. A small, unobtrusive piece of code is placed on the brand s website (this code is sometimes referred to as a pixel). The code, or pixel, is unnoticeable to brand site visitors and will not affect site performance. Every time a new visitor comes to the brand s site, the code drops an anonymous browser cookie. When cookied visitors browse the web, the cookie will alert the brand s retargeting provider when to serve ads, ensuring that ads are served only to people who have previously visited the brand s site.

40 MEASUREMENT AND VERIFICATION Just as determining the right targeting approach for your brand s digital campaigns is important, validating whether or not it works, and doing so early and often, is imperative. Due to the availability of different data sets and the emergence of privacy-safe analytics, there are various ways that brands can measure the effectiveness of targeting and optimize campaign performance based on key insights. Front-End Metrics Viewability CTR Back-End KPIs CPA CPC, etc. While there are many different KPIs that can be evaluated, your measurement focus should align with the core objectives of your respective campaign. Most brands seek to understand two fundamental things about their campaigns: Is my campaign reaching the right audience? Is my campaign generating impact by driving desired health behaviors at different stages along the patient journey? Regarding campaign reach, brands can measure the portion of the audience their campaign reaches that treats within the relevant condition category, with the advertised Rx brand and/or with competitive Rx brands. Regarding campaign impact, brands can measure key health actions such as doctor visitation, diagnoses, lab tests, lab results and new treatment in the condition category or with the advertised brand. Brands can measure this at the campaign level, but they can also dig deeper by evaluating reach and impact by the respective targeting approach, individual publisher and placement group level. This level of granularity empowers brands to compare performance along different dimensions and strategically optimize by identifying high performing and low performing components of their campaigns.

41 BRAND SAFETY OVERVIEW Brand safety is an aspect of online advertising which emerged from ad networks and blind buying. Managing brand safety is a longstanding duty that has taken on considerable complexity due to a fragmented, user-driven digital media landscape. IAB identified general types of potential avoidance categories in brand safety, such as adult content, illegal activities, controlled substances and hate. However, there are some brand safety areas that are subjective to brands. For example, a cruise line doesn t want its brand s ad to appear alongside news of a shipwreck. That risk is particularly high with contextual targeting. There are different forms of brand safety measures. Within an ad network, all websites can be scanned to detect inappropriate content. Brand safety measures can also be taken at the campaign level. In this case, a code is embedded with the ad to scan ad context in real time where a black list of URLs or domains is used. When inappropriate content is detected, the ad verification vendor prevents the ad from being displayed or the URL is flagged for post-campaign reporting to the advertiser. Brand safety services were initially offered to agencies by dedicated tools and services but are increasingly embedded into ad servers, ad exchanges and ad networks solutions. They can also be embedded with ad visibility measurement tools.

42 BOT/FRAUD OVERVIEW Advertising fraud creates fake ad traffic using content-scraping websites or other environments, launching ads outside of a user s view, or creating other fictitious mechanisms for delivering ads that are not seen by consumers. Nonhuman, or bot, traffic is used to generate fake impressions (pageviews) and fake clicks. In some cases, bad actors generate fake form submissions and, therefore, fake conversions. Bots also come in a few different varieties. Bots can be ad injections usually done via browser extension or adware plugins without a publisher knowing it. Bots can be adware traffic where a user is present but adware is calling additional requests to the auction to generate additional ads. Sometimes a bot can inject ads onto a page which does not have ad slots. Bots are increasingly sophisticated and employ tactics like rotating user agents, using random pixels to rotate IP addresses, mimicking normal CTR rates and even mouse movements. Botnets are generally a large array of personal (residential) computers that have been compromised by bad actors. The actors control these machines, employing them for tasks like loading and clicking on ads, which generate legitimate-looking, but ultimately fake, impressions and clicks for advertisers. Botnets are the hardest to detect and block and are highly illegal and riskier for bad actors to deploy. Nevertheless, since bots are programmable, they often exhibit patterns detectable by experts. They make for more enticing headlines and typically receive the lion s share of media coverage.

43 SUBCOMMITTEE PARTICIPATION

44 For more information on programmatic health terms and phrases, see the PHC Glossaries: US Glossary UK Glossary