PROGRAMMATIC 101. Emmy Spahr, Media Director, Programmatic SapientRazorfish_

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1 PROGRAMMATIC 101 Emmy Spahr, Media Director, Programmatic SapientRazorfish_

2 WE ALL KNOW THE STORY Programmatic predicted to be 82% of all Display Dollars by 2019 Source: emarketer, September 2017 C O P Y R I G H T S A P I E N T R A Z O R F I S H C O N F I D E N T I A L 2

3 1990s BUT HOW DID WE GET HERE? Early 2000s Programmatic Media Bidding technology designed to help publishers/advertisers target and optimize their buy across multiple ad exchanges Publisher Direct Ads sold via direct transactions between advertisers/agencies and publishers Ad Networks Ad networks aggregated inventory and sold it to advertisers. Helped publishers by selling inventory they could not sell themselves ~ 2005 Ad Exchanges A real-time marketplace with a large pool of liquid inventory not sold in direct buys ~ 2010 C O P Y R I G H T S A P I E N T R A Z O R F I S H C O N F I D E N T I A L 3

4 SO WHAT HAS FUELED THIS EVOLUTION? DATA C O P Y R I G H T S A P I E N T R A Z O R F I S H C O N F I D E N T I A L 4

5 DATA TYPES & PROVIDERS 1 st Party Data 2 rd Party Data 3 rd Party Data 3 rd Party Data Examples Advertiser s owned data Website visits/actions Customer database Prospect list Direct mail list Offline transactions Sharing partnership data Such as CRM data Purchase data Millions of Profiles Demographic Behavioral Financial signals Psychographic, interests, affinities C O P Y R I G H T S A P I E N T R A Z O R F I S H C O N F I D E N T I A L 5

6 PROGRAMMATIC BUYING DEFINED pro * gram * mat * ic buy * ing Automated purchase of digital media, leveraging data-driven technology to reach high-potential customers. Replaces the manual process of rate negotiation Helps ensure that the right message reaches the correct audience at the right time Growing exponentially as more media inventory is made available through more channels.

7 MATCHING BUYERS AND SELLERS 5. If you win the impression, your creative is served. 1. Every time an impression is available, the exchange asks if you d like to bid (the bid request ). User on Site 4. What you bid is entirely up to you (you don t have to bid if the impression is not valuable to you). 3. You typically have milliseconds to respond with a bid (the bid response ). 2. You get a variety of information, such as the site the impression is on, the time stamp, information about the user, etc.

8 Programmatic Tech Stack Acronyms to Know ADX SSP DSP DMP AD SERVER Ad Exchange Supply Side Platform Demand Side Platform Data Management Platform BUYERS ad call with Ad Verification, Dynamic Creative, measurement tags ADX Ad Exchange: A marketplace where available inventory is bought/sold SSP Supply Side Platform: Enables Publishers to upload unsold inventory to Ad Exchanges DSP Demand Side Platform: Provides access to Ad Exchange inventory DMP Data Management Platform: Data warehouse which can be leveraged for curating and targeting audience segments

9 Publishers The Programmatic Tech Stack in Action SSP Direct Integrations Inventory Ad Exchanges AD SERVER DMP DSP Media Agency Brands Algorithmic decisions are made and served to consumers in 0.05 secs!

10 INVENTORY BUYING MODELS Channel Automated Guaranteed Programmatic Reserved Definition Direct Sales, Reserved Inventory + Fixed CPMs Reserved Inventory + Fixed/Variable CPMs Unreserved First Look Unreserved Inventory + Fixed CPMs Invitation-Only Auction Fixed and Floor CPMs Unreserved Inventory Open Exchange Unreserved Inventory to Whitelisted Buyers Auction Pricing C O P Y R I G H T S A P I E N T R A Z O R F I S H C O N F I D E N T I A L 10

11 HEADER BIDDING DEFINED HEAD*ER BID*DING The simultaneous bid on an impression by multiple demand sources in real-time. This occurs before the bid hits the ad server Replaces the waterfall of various SSPs bidding for an impression Header bidding is enabled when a publisher places code, typically provided by a SSP, in the page header. The code activates a request for bids from all DSPs before calling the publisher s ad server. Direct demand competes alongside auction-based demand for each impression. Key vendors:

12 THE FUTURE IS NOW: EVERYTHING THAT CAN BE AUTOMATED WILL BE C O P Y R I G H T S A P I E N T R A Z O R F I S H C O N F I D E N T I A L 12

13 ADVANCED VIDEO BUYING MODELS Channel Addressable TV Definition Data + Technology enabling delivery of video advertising messages to specific households matching a defined target profile Programmatic Linear TV Connected TV SmartTV Data informed audience buying within linear TV enabling smarter 1:many decisioning whereby automated planning and activation platforms are used automate workflow A TV connected to the Internet through built-in capability or through another device such as a settop box (e.g., Roku, AppleTV, Chromecast), or game console A TV with built-in Internet capability providing access to content directly through TV infrastructure Network or TV DSP Over the Top (OTT) Ancillary device connected to TV and providing internet connectivity for video content viewed via an app C O P Y R I G H T S A P I E N T R A Z O R F I S H C O N F I D E N T I A L 13