april 30, 2015

PROGRAMMATIC IN BRIEF

agenda

2

The Basics >  Definitions >  Why?

Landscape >  Market Progression >  Actors & Acronyms >  Media Buying

Publisher POV >  Deal Anatomy & Construction >  Deal Types >  Key Takeaways

terminology: the painful stuff RTB Real Time Bidding –the technology that allows the selling and buying of inventory one impression at a time.

Ad Exchange Transparent real-time marketplace where large pools of inventory are bought and sold.

Agency Trading Desk Holding company-created division to execute audience buying strategies, both direct and programmatic.

DSP Demand Side Platform - Technology company that powers RTB buying for advertisers and agencies. Leverages Demand Side Decisioning.

SSP Supply Side Platform - Technology platform that powers RTB selling for publishers. Aka a ‘publisher biased exchange.

PMP Strategy to create a premium sales channel using RTB to execute direct buys, aka Private Exchange.

Deal ID RTB indicator/’Flag’ to execute PMP buys for direct deals between publishers & buyers.

Automated Guaranteed Workflow automation and execution channel for direct sold reserved inventory.

Bid Request/ Bid Response Action in auction where SSP solicits all requests for bids, and DSPs respond with bids.

‘programmatic’ defined The Meredith Definition

Programmatic Advertising is machine-to-machine automation of advertising/media transactions. This typically involves machine-learning decisioning and

both biddable and non-biddable inventory, but currently relies human input to create rules for both the buy and

sell side.

Some examples of programmatic: Ad Networks

Search Real Time Bidding

Automated Guaranteed

why is RTB growing so fast? From past to present

Buyers

Sellers

Past Present

Execution Transparency

Cheap Media High liquidity

High ROI on Direct Response Scale

Data Collection

Transparency Access to premium inventory

Contextual Relevance Operational + Media efficiencies

Flexibility in planning 1st party data access

Yield Management Revenue for unsold media

Sales Channel Conflict

Transparency Premium Environments

Control Scale

Operational Efficiency Higher Yield

1st Party Data Usage

the programmatic evolution Ad Networks ad networks aggregated inventory and sold it to advertisers. helped publishers by selling inventory they could not sell themselves.

Ad Exchanges & SSPs real-time marketplaces with a large pools of liquid inventory not sold in direct buys; SSP’s have more controls for publishers to optimize yield

DSPs Bidding technology designed to help advertisers/agencies target and optimize their buys across multiple ad exchanges/publisher inventory pools

Reservation Buying ads sold via direct transactions between advertisers/agencies and publishers

1990s

Private Exchanges & Automated Guaranteed Exclusive advertiser-to-publisher inventory relationships for programmatic purchasing in brand safe environments

Programmatic Premium

Direct Sold/ Guaranteed/

Reserved

Indirect/Programmatic/

Unreserved

Now

actors & acronyms Comparative analysis of the actors

AdNets Started as budget aggregators

Now seen as in agency specialists

No technology

Semi transparent

“Buy thru Us”!

Started as RTB tech platforms for Demand

Migrating to become operational platforms (DMP/DSP/Workflow)

All technology

Fully transparent

“Automation solves all!”

Started (and still are) large aggregated pools of sellers and buyers transacting via RTB

All technology

Fully transparent

“Liquidity Rocks!”

Started as perceived pub tool

Now seen as a demand tool

No technology

Non-transparent margins

"We have publisher exclusives" or "Uh Oh"

ATD's DSPs Exchanges Started as RTB tech platforms for Pubs

Migrating to become operational platforms (DMP/DSP/SSP/Workflow)

All technology

Semi transparent

“Technology + strategy = pub success”

Started as tech platforms to collect and manage data

Migrating to become execution platforms for using data

All technology

Fully transparent

“You can’t live without us”

SSPs DMPs

MARKETPLACE

actors & acronyms What role each plays in the ecosystem

10

AD

VER

TISE

R /

AG

ENC

Y PU

BLISH

ER

DSP

AD

VER

TISE

R A

D S

ERVE

R

SSP

AGENCY TRADING DESK

DMP

PUB

LISHER

AD

SERVER

SERVICES

DMP

players Leading programmatic premium buying

HoldCo ATD DSP Clients

actors & acronyms How each fits into the digital planning/buying universe now

With whom, and how, do we interact?

DSP (Direct Buying) Obs & Strats

Media mix planning/ Target development

Media specialist/ Budgeting & Planning

Digital Media Selection

Med

ia P

lann

ing

Pro

cess

Client Marketing Agency Strategy &

Planning

Planning Agency

Broadcast Out of Home Print AOR Digital AOR

Sponsorship Agency

Programmatic Agency (ATD)

Programmatic budgets

typically split here

AdNets typically

bought here

actors & acronyms How each fits into the digital planning/buying universe – where it is going in future

With whom, and how, do we interact?

Obs & Strats

Media mix planning/ Target development

Media specialist/ Planning & Budgeting

Digital Media Implementation

Med

ia P

lann

ing

Pro

cess

Client Marketing Agency Strategy &

Planning

Planning Agency

Broadcast Out of Home Print AOR Digital Media Planning

Specialists embedded within implementation

DSP (Direct Buying)

Sponsorship Search,

Programmatic, Mobile, Video

the agency reclaims budget control Programmatic Budgets climb as % of total Digital Spend > Half of Senior Ad Buyers allocate between 31-60% of digital budget

to programmatic > By 2016, programmatic will be 65% of US Digital Spend

Programmatic Budgets determined at Agency Level > Agencies have reclaimed control of programmatic budgets > Agency Trading Desk Model is challenged i.e. Vivaki > Agencies have created programmatic teams in-house

As Agencies drive budget, demand increases for innovative products > Viewability > Rising Stars > Guaranteed buys (thru AG or PMP G)

Advertisers and Agencies are putting a stake in the ground to fund and resource programmatic initiatives in house

Retail + CPG + Financial Sectors = 52% of all spend in Q2 2014

scoping the market

how does a publisher manage its business?

>  Price >  Delivery >  Sell thru (STR) >  Revenue

>  Price >  Delivery >  Sell thru (STR) >  Revenue >  Yield >  Fill >  Transparency >  Data Leakage

& Protection >  Viewability >  Discoverability

Transaction Automation

RTB World Before RTB

18

PREMIUM DIRECT

STANDARD DIRECT

OPEN PROGRAMATIC

> High CPM and yield > Direct Demand > Non Standard

> High Volume > Guaranteed Delivery

> Prioritized remnant > Repackaged media

> Undifferentiated media > Demand-Supply

imbalance

prioritization in the ad server a.k.a. “The Waterfall”

PREMIUM DIRECT

STANDARD DIRECT

PREMIUM PROGRAMMATIC

OPEN PROGRAMATIC

> Sponsorship > Custom Executions

> Context Targeting > Audience Targeting > ROS & RON

> PMP

> SSP > Ad Nets

Typical Publisher

layers of programmatic

Automated Guaranteed

Private Marketplace

Open Market

Direct bought guaranteed inventory access, non-RTB

Direct bought RTB based inventory access

RTB based inventory access in open marketplace

Predictable and scalable high value placements

Controlled buying with price agreements for bids

Efficient and targeted audience buying

channels definition value

Pro

gra

mm

atic

Dire

ct

Premium at scale, across all buying channels

deal construction Components in a deal and how each contributes

Sponsorship Ideation for

Impact

Context Scale within environment

Audience Targeting Driving awareness with

the right person

Programmatic Premium/PMP High quality, efficient audience

and contextual scale

RON Media

Audience Extension Additional quality scale for efficiency (as needed)

Audience Targeting &

ROS

ROC Scale within environment

RON Quality Scale across

environments

Use PMP to replace

ROS & RON

KEY BENEFITS TO CLIENTS: Ability to choose , maximizes spend, relieves ops burden, lower net price

KEY BENEFITS TO PUBLISHER:

Boost direct, bigger deals, more PMP volume, relieves ops burden

deal types & anatomy

HYBRID PARALLEL PROGRAMMATIC ONLY PROGRAMMATIC MIGRATION

Description Deal that combines Programmatic Premium and Direct in one buy/

budget

Independent sales initiatives with direct and programmatic teams

(coordinated)

Deal with existing or new client where no direct business is

transacted

Transition of deal terms and execution from direct to Programmatic Premium

Proactive VS Reactive

Proactive (pitched) or Reactive (RFP) Proactive Highly Proactive Reactive

Who Leads Direct Seller and/or Programmatic seller Both Programmatic Seller Direct Seller pre-transition,

Programmatic Seller post

Deal Content Direct: sponsorship, takeovers,

unique media unavailable to PMP Programmatic: PMP inventory

Similar to Hybrid deal PMP and/or AG products All standard media that can be migrated

what did he say?? ‘Programmatic’ is an evolving set of capabilities and players > What we have today will be outdated in 6-12 months

With Programmatic Premium, Sellers and Buyers are more aligned > Transparency, Operational efficiency, effective reach, supporting

the marketer are areas of alignment

Spend your time with agency partners and client > Tech platforms are still buying evergreen deals, but that isn’t where

the money is Programmatic should not just be about yield or price >  Leverage in your strategy for client success >  Learn how to work with Demand Side Decisioning > Use programmatic capabilities as a learning playground: win fast,

fail fast

The  Basics  –  Defini&ons  –  Why?  

Landscape  –  Market  Progression  –  Actors  &  Acronyms  –  Media  Buying  

Publisher  POV  –  Deal  Anatomy  &  

Construc&on  –  Deal  Types  –  Key  Takeaways    

     

 

23

PREMIUM DIRECT

PREMIUM PROGRAMMATIC

STANDARD DIRECT

OPEN PROGRAMATIC

> Sponsorship > Audience Targeting > Custom Executions

> PMP

>  Targeted Media > ROS > RON

> SSP > AdNets

prioritization in the ad server a.k.a. “The Waterfall”

Meredith

PREMIUM DIRECT

STANDARD DIRECT

PREMIUM PROGRAMMATIC

OPEN PROGRAMATIC

> Sponsorship > Custom Executions

> PMP

> SSP > Ad Nets

Typical Publisher

> Context Targeting > Audience Targeting > ROS & RON

proprietary data shapes everything we do

FOOD

pregnant women

parents w/ kids 0-2

parents w/ toddlers

active families

tweens & teens

free birds

healthy living

auto

travel

beauty/fashion

finance

pet owners

cleaning

home decorating

gardening

offers

walmart shoppers

target shoppers

fashion retail

big box shoppers

sam’s club shoppers

kroger shoppers

publix shoppers

milk drinkers

dessert

food lifestyle

meat lovers

holiday meals

cheese heads

soft drink

breakfast

pasta

vegetarians

BBQ + grilling

seafood lovers

condiments

soup lovers

juice lovers

coffee / tea

ADDITIONAL OVERLAYS & PACKAGES demographics, price sensitivity, engagement, lifestyle, psychographics, seasonal

FAMILY SHOPPING LIFESTYLE HOME