Programmatic: Diving In

Carl Kalapesi Head of Industry Initiatives

IAB Twitter: @carlkalapesi

1

So what is programmatic? Cheap?

Real-time bidding (RTB)? Remnant and crappy inventory?

Race to the bottom? Automation? Efficiency?

• Technology can deliver benefits through automation

• The object of “engagement” shifting to the audience—not the channel

• Rich datasets can fuel the identification and engagement of target audiences

Several themes have come together…

2

Promise of programmatic:

Right Message + Right Person + Right Time

At Scale

Personalization at scale?

3

The process of buying and selling media in an automated fashion

Ultimately, programmatic is…

4

Programmatic is more than RTB…

5

Invitation-Only Auction (Private

marketplace)

Fixed

Reserved

Auction

Unreserved

Open Auction (Open

Marketplace)

Automated Guaranteed

(Programmatic Guaranteed)

Unreserved Fixed Rate

(Preferred Deal)

How price is

set

Type of inventory

Real Time Bidding (RTB)

www.iab.net/programmatic 5

RTB - Different ads to different users

6

So what actually happens in RTB

http://www.iab.net/simplified

Click image or here to play video

8

Open vs. Private Auction: Retail Analogy

Open

9 Source: Matt Prohaska, Prohaska Consulting

Private

Simplifying the direct deal…

10

P U B L I S H E R

A D V E R T I S E R

EMAIL PHONE

SPREADSHEET AUTOMATED GUARANTEED PLATFORM

1 Concerns over transparency, fraud and trust

2 Fear, limited understanding and knowledge

3 Confusion over terminology

4 Moving from DR to branding dollars

5 From banners to native, video, rising stars, audio…

6 Internal organizational challenges in brands & publishers

7 Delivering different creative through programmatic

Lots of challenges remain…

11 www.iab.net/programmatic