Digital Ad Evolution. Ad Exchanges. Network. Launch. Launch. Digital. MDC launches VMM. Aswords. DSPs Launch. Launch.

Transcription

1 PROGRAMMATIC

2 Digital Ad Evolution Ad Network Launch Digital Ad Launch Ad Exchanges Launch Aswords Launch (Search) 2011 RTB goes Mainstream DSPs Launch MDC launches VMM

3 Ad buying was relatively simple The Advertiser and Publisher would negotiate CPM and budget to show the ad for a certain time

4 Ad Networks Simplified the Process AOL Network VH1 Comedy Central USA Today Tremor Network Reuters Man s Fitness Sports Illustrated

5 But then it became exponentially complicated with more advertisers and publishers

6 Exchanges Added Scale Google Exchange (ADX) Yahoo Exchange (ADX) Publishers Network Publishers Network A Market Place like Search to make real time bids for ad inventory

7 Programmatic Powered With Controls Exchanges Programmatic Networks Publishers Focuses on the audience rather than the site Centralizes point of access for inventory Access to robust data for smarter decisions

8 And it s Flipping the Market 100% 80% 60% 40% 20% 0% Programmatic Non-Programmatic 2017

9 WHAT? WHO? WHERE? WHEN? WHY? Programmatic approach increases knowledge about the consumers and how best to address them

10 What is Programmatic? Programmatic is technology-enabled workflow automation. In digital advertising, programmatic technology is essentially one computer talking to another computer to execute the campaign trafficking operations, minimizing the risk of human error. In a programmatic scenario, a person defines the campaign parameters and the ad tags are automatically transmitted to the destination ad server. A second human isn t necessarily required, streamlining the entire operation. Programmatic describes media buying that uses online and offline data to make smart decisions on where, when, and how your ads reach consumers. It s the most efficient and effective way to execute advertising campaigns.

11 Demographic Behavioral Psychographic Survey/Panel Purchase/ Fulfillment Traditional Media Buying Asks, Who s my customer? CRM

12 Manual Programmatic Search Native Social RTB Display

13 Programmatic Landscape Global Programmatic Spend ($bn) Global Programmatic Penetration* (%) Global Programmatic Spend by Format 13% 31 65% 59% 43% 22% 21% 27 37% 29% Programmatic Non-programmatic % 41% % 44% 18% 16% Programmatic Non-programmatic 2020 World 2016 Desktop Banner Desktop Video World 2020 Mobile Banner Mobile Video

14 Programmatic Display Data Management Platform(DMP) Blue Kai, Adobe Audience manager Ad Server 3rd Party Data Provider Agency/ Advertiser Demand Side Platform (DSP) AD Exchange Sell Side Platform(SSP) AD Network AirAsia, Tune Protect, AIG Doubleclick Bid Manager, Adobe Media Optimizer, Criteo, Mediamath Doubleclick AdEX Yahoo Right Media App Nexus SpotXchange(Video) Rubicon Pubmatic Admeld/Google AdMob Adsense DoubleClick for publishers Yahoo network AOL Microsoft Media MWD, IPG, Dentsu Publisher Facebook Paultan, YouTube MSN

15 Advertisers Agency Trading Desks SSPs DSPs Ad Exchanges Ad Networks Publishers SELL SIDE BUY SIDE Agencies

16 Data is Key 2nd Party data 1st party data obtained from an agreement with another publisher 1st Party data 3rd Party data Data owned by advertiser Converted customers are most valuable data Data from an external company Exelate, Blue kai, Nielson Segmented by age, gender, demographic, interest, & purchase intent.

17 3 Multiple Brands /Campaigns x 40 Billion Impressions/Day (Multivariate Decisions) x 7 Days (1 Week) = 840 Billion Decisions per Week (1 Full-Time Employee) = 1,676,000,000 x MORE DECISIONS

18 Types of Buy Open Auctions Private Auctions Preferred Deals (PMP) Programmatic Guaranteed Publisher Publisher Publisher Publisher Advertiser Advertiser Advertiser Advertiser Unreserved Guaranteed

19 Is the inventory being auctioned? Yes Yes Open Exchange No Real Time Bidding Programmatic Direct Is it a public auction? Is the inventory guaranteed? No Private Marketplace Yes Programmatic Guaranteed No Preferred Deals

20 RTB 1 3 Bid request is sent to each DSP 2 DSPs Ad Exchange/ SSP DSPs DSPs Advertisers DSP enables advertisers to access ad exchanges. Bids on each individual impression based on what is known about them, want a pay fair price 4 DSP evaluates each ad impression and returns a bid amount based on its value to the advertiser within 100ms Ad exchange holds an auction for each impression 6 5 User views page on website and ad call is made as content loads Ad is shown on publisher website Winning bid is chosen by adexchange Publishers (Website) Publisher makes ad inventory available to buy on ad exchange and wants maximum price

21 3 2 Bid Request Bid Respond 4 5 Winning Bid Ad Server Request DSPs

22 Evolution of Prospecting 2 Traditional Optimized siloes but sub-optimal whole Upper funnel targeting not informed by 1st party data No real time feedback loop across the funnel Programmatic Awareness Advertising In-Market Data Retargeting Targeting based on actual path to purchase of your converters Accounts for granular and non-linear behavior Real time feedback loop to optimize the media across the purchase cycle.

23 Prospecting Example Airlines Goal: Drive qualified traffic and revenue Targeting Requirements Control Parameters Demographic: Age: Budget: RM 10,000 /day Demographics: HHI RM 50K-100K Max CPM: RM 20 Day Parting: Weekends Frequency: 5 /day Geo: Kuala Lumpur Brand Safety: No Sexual Content Viewability: > 70%

24 Prospecting Targets Prospect: 1 Prospect: 2 Prospect: 3 Demographics Highly engaged social media users Highly engaged social media users Highly engaged social media users Interest Travel Enthusiast Travel Enthusiast Travel Enthusiast In-Market Hotel & Resort Travel accessories Flights Affinity Hotel & Resort Travel accessories Flights Lookalike Flight ticket buyers Flight ticket buyers Flight ticket buyers 3rd party Luxury buyers Vacation packages Accomodation 2nd party Travel accessories Car rental Travel apps

25 Prospecting Optimization High Good OK Low OK Bad Low High What is the value to me? Too low Lose out & underspend Just right Maximise scale & performance Too high Overpay & underperform What is the value in the market?

26 Retargeting General Last Page Visit Sequentia Messaging Upsell Search Bought flight Ticket Search for traveling hanoi Retargeting with Ancillary Ads Retarget with KL-Hanoi flight ads First Ad: Travel lifestyle Home page Retargeting with generic promotions Check Flight from KL to CGK Retargeting ad from KL to CGK Second Ad: Various promotion on that route Automated & Real Time

27 Programmatic Landscape Data Collection Data Segmentation Data Centralization Partners & Marketplace 2nd & 3rd Party Data First Party CRM Conversion Data Objective Level Segmentation Offline Sales Data Data Analysis Delivery Audience Assessment Programmatic Media Buy Look-alike Modelling Cross Channel Creative Respond Web Experience Offer/promo Optimization Personalized Optimized Media Buy Programmatic TV