PROGRAMMATIC

THE CHALLENGES

1. What is Programmatic ?

2. Who cares & why ?

3. Challenges of programmatic

PROGRAMMATIC

THE CHALLENGES

What is Programmatic ?

WHAT IS PROGRAMMATIC ?

WHAT IS PROGRAMMATIC ?

A holistic approach through which media buyers and sellers may align organizational

processes with automation technology in support of ongoing, channel-agnostic customer

engagement (and to allow for the continuous optimization of that effort as business strategies

evolve). - Winterberry group (2013)

PROGRAMMATIC R.T.B FLOW

Source: Media Kitchen History of Programmatic

DMP - DATA MANAGEMENT PLATFORM

SSP - SUPPLY SIDE PLATFORM

DSP - DISPLAY SIDE PLATFORM

The workflow:

User comes to site triggers

impression

DMP send audience data to DSP

informs who should bid

Publisher sells Inventory via SSP

Traders commissioned by

Advertisers use DSP to bid for

Inventory

TYPES OF PROGRAMMATIC SELLING & BUYING

Source: media kitchen history of programmatic

Open exchanges traditionally

associated with remnant inventory

Shift towards Private exchanges for

premium inventory – Publisher regains

some control of pricing

Programmatic guaranteed - direct

publisher to advertiser

PROGRAMMATIC

THE CHALLENGES

Who cares & why ?

WHY THE INTEREST IN PROGRAMMATIC ?

Source: Winterberry Nov 2013 white paper programmatic everywhere?

CURRENT USAGE US

Source: Winterberry Nov 2013 white paper programmatic everywhere

PROJECTED AD SPEND IN US

PROGRAMMATIC SPEND UK

Source: Winterberry Nov 2013 white paper programmatic everywhere

INTERNATIONAL OUTLOOK

Source: Winterberry July 2014 white paper : Going global programmatic

audience around the world

PROGRAMMATIC

THE CHALLENGES

Challenges of

programmatic ?

Source: Winterberry Nov 2013 white paper programmatic everywhere?

CHALLENGES INHIBITING PROGRAMMATIC USE

CHALLENGE: BRAND & REPUTATION

Contextually irrelevant ads are seen as intrusive and irritating

CHALLENGE: BRAND & REPUTATION

Misplaced ads risk animosity towards the brand

CHALLENGE: TRANSPARENCY & TECHNOLOGY TAX

Technology tax”, claims 60-80%

of ad spending complain

advertisers and publisher –

economist (2014)

‘For every dollar a digital

advertiser spends on a

placement, a publisher reaps

around 45 cents - Seth Demsey

- svp of global advertising

products and strategy for AOL

Networks. (2013)

CHALLENGE: TRADITIONAL MEDIA PLANNING - DATA

ANALYTICS

Media planning – selecting

media Data analytics – selecting

audiences

CHALLENGE: RACE TO THE BOTTOM

Concerns Inventory will

become commoditised & drive

down prices

Cannibalise premium inventory

CHALLENGES: SUPPORTED FORMATS

IAB Standards supported by

Programmatic Custom formats unsupported by

Programmatic

CHALLENGE: COOKIES & MOBILE

Fragmented experience through

mobile apps browser

Limitations of cookies on mobile

Can restrict ability to make re

targeting across devise

CHALLENGES: MEDIA CHANNEL VS CREATIVE ENGAGEMENT

Brand building creative vs direct

response creative

A system where all ads are treated as

equal can penalizes award winning

creative.

Difficult to ensure an ad placement

bought programmatically is actually in-

view

CHALLENGE: CLICK FRAUD

Reduced direct relationship between

the advertiser and the publisher has

disappeared

Incentivise increase in click fraud

Anonymous site publishing with access

to ad exchange

KEY CHALLENGES OVERVIEW

Challenges Possible solutions

PUBLISHERS • Race to the bottom • Operational buy In

• Test the market short rolling contracts • Private market places for premium

inventory• Price floors in open auctions• Education

TECHNOLOGY • Lack of consolidation in ad tech

• Click fraud

• Centralisation & consolidation • Industry standardisation • More open source less proprietary

specialists• Disincentives fraudulent clicks • Avoid anonymous publishing • Click fraud detection tools

ADVERTISERS • Brand & reputation • Contextual relevancy

• Brand safety check

PROGRAMMATIC

THE CHALLENGES

Questions ?