WTF is Programmatic?: August 2017

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Transcript of WTF is Programmatic?: August 2017

WTF is Programmatic?8.8.17

About Me

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Senior Media StrategistThe Media Kitchen

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Intro,Talk about previous experience at OMD compared to what I'm currently doing at TMK

Agenda

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• Programmatic Overview

• How does it work?

• DCO

• Q&A

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Raise your hand if you have heard the term Programmatic?

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US Display Ad Spending Share, by Type

53%63% 65%

73% 78% 82%

47%37% 35%

27% 22% 18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017 2018Programmatic Non Programmatic

Source: eMarketer: “US Display Ad Spending Share, by Type” 2016

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If not many people raise their hand: Talk about the importance of $ trending. If people do raise hand: That's not surprising

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In 2017…..

$33,000,000,000

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Quite a large percentage, which equates to about $33 billion in ad spending, advertisers/agencies investing heavily into programmatic media (puts % of spend into perspective)

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What is “Programmatic”?

The use of software to automate the purchasing of digital advertising

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Definition of programmatic, applied first to display media, but now can be purchased on mobile/table, video, tv, CTV (roku, hulu, etc.)

How does it work?

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Most common misconception is retargeting, (talk about personal RTG experience).RTG isn't the only way to activate programmatic media and it's a common misconception

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Another Example

bschifrien
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Use whiteboard to show visual example of my time spent online and how an advertiser isn't waiting for me to get to a contextual site or their site, want to capture me on any site since I'm in their audience

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Great, now what does this mean for me as a creative?

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All well in good, however what does this mean for you/ why should you care?

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One to Many

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Creative focused on one message/one ad targeted to the same group of people, but now a way to target based on specific triggers…so going from 1 to many, to many to many

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One to Many, now Many to Many

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Pulling out specific data points about a user and serving relevant creative to them. (this is also known as DCO)

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DCO (Dynamic Creative Optimization)

Practice of serving and testing interchangeable combinations of copy and art to see which are most

effective

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Definition….

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How does DCO work?

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It's an algorithim/automation (common theme)

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How does DCO work?

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It’s like an ad factory, Day of week, time of demo, demographics, location, weather all get taken into account w/ this algorithim.

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DCO Adoption & Benefits

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Approximately 67% are using it or planning to use it and probably have by now (survey is from 2015). It is driving efficiencies across the board, engagements, CTR, reduced costs, etc.

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Takeaways

• A lot of $$$ is being poured into programmatic media, with no sign of slowing down

• Programmatic = Automation

• Audience targeting is a commodity, creative needs to differentiate from the pack

• DCO has resulted in increased engagement, lower costs, and more efficient performance

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Recap. To 3rd bullet – It’s great if you can target audiences (this is not unique to agencies), but if the creative is not relevant to the target audience, it's a lost opportunity

Q&A

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Be Brave Be Inventive Defy Expectations

Thank you!