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The description we used to promote the webinar:
The Interactive Advertising Bureau reported that roughly 20% of all digital advertising is sold by one machine talking to another machine - and that number is growing rapidly. What is programmatic buying and selling? What does it mean for you as a marketer and how do you harness the power of this technology to reach more qualified users, more efficiently and at scale? Tune in for an intro to Programmatic Buying including the basic concepts and terminology, key players in the programmatic ecosystem, types of inventory as well as key terminology to put your best programmatic foot forward
Programmatic Advertising 101
What is programmatic and what does it mean to you as a marketer?
Goals for Today’s Session• What is Programmatic Advertising?• Key Terminology• The Current Ecosystem• Programmatic Buying Basics• Types of Inventory• Additional Resources
WHAT IS PROGRAMMATIC ADVERTISING?
Programmatic Advertising
Source: Association of National Advertisers and Forrester
Programmatic Advertising• At its very basic:
machines buying ads
• …or the automation process of buying, placing and optimizing of advertising
Image Source: Ad Age
Your Amazon Experience
KEY TERMINOLOGY
Display LUMAscape
Source: LUMA Partners
Programmatic Terms / Acronyms
• Programmatic Buying / Selling– Buying: Bid Machine example– Selling: Automation of the ad buying process
• Real‐Time Bidding (RTB)– Buying & selling of online ad impressions via real‐time auctions
– Within milliseconds (or the time for a web page to load)
Programmatic Terms / Acronyms
• DSPs (Demand‐Side Platforms)– One interface that allows buyers to manage advertising inventory across multiple publishers
• SSPs (Supply‐Side Platforms)– Software used to automate the advertising sales process
– SSPs used by publishers / DSPs used by marketers
Programmatic Terms / Acronyms
• DMP (Data Management Platform)– Data warehouse on a large scale– Stores, processes and crunches data that is useful/actionable to marketers
• Trading Desk– Purchases audiences across digital media in a real time fashion (similar to a stock exchange)
– Usually resides on top of a demand‐side platform (DSP)
Additional Terms
• Exchanges• Ad Networks• Ad Servers• Social Tools
CURRENT ECOSYSTEM
Display LUMAscape
Source: LUMA Partners
Current Programmatic Ad Landscape
• Programmatic spending will reach $9.8 billion in 2014
• According to eMarketer, U.S. advertisers spent up to $3.36 billion on “real‐time bidding” (the backbone of programmatic buying) in 2013
Organizations Buying Programmatically
Source: Mobile Marketing Magazine
PROGRAMMATIC BUYING BASICS
Programmatic Advertising Basics
• “Rise of the Machines”– Ads are bought like products on Amazon
– Auction based; buyer willing to pay whatever price an ad is worth at the moment
– Demographic based; buying specific audiences
– Machines handle the “human” processes—IOs, paperwork, spreadsheets, etc.
Programmatic Advertising Basics
• Programmatic buying vs. real‐time bidding (RTB)
• Are they the same thing?– Short answer = NO
• RTB is a type of programmatic ad buying, but not the only type or option
• RTB = real‐time auctions of ads; “programmatic direct” allows guaranteed ad impressions from specific publishers
The Process of RTB
Why DMPs?
• Client or agency resource used to store data
• Optimize client campaigns against previous results– Data warehouse on a large scale– Stores, processes and crunches data that is useful/actionable to marketers
TYPES OF INVENTORY
Inventory Types
• Type of Inventory– Reserved– Unreserved
• Pricing– Fixed– Auction
• Participation• One Seller—One Buyer• One Seller—Few Buyers• One Seller—All Buyers
Source: Interactive Advertising Bureau 2013
Inventory Types
Programmatic Terminology Map
Programmatic Inventory Definitions
Automated Guaranteed– Similar to digital direct sale or direct buy (e.g. homepage takeover)
– Programmatic aspect is the automation of the RFP & campaign trafficking
Programmatic Inventory Definitions
Unreserved Fixed Rate– Exchange environment– Fixed pricing that is agreed upon (CPM, CPC, etc.)
– Higher priority on the ad server vs. Open / Invitation‐Only Auctions (next slide)
Programmatic Inventory Definitions
Invitation‐Only Auction– Publisher decides buyer/advertisers participation via Whitelist/Blocklist
– Expectation on buyers to bid on inventory– Publisher can provide access to certain data sets, like Deal IDs or Line Items
Programmatic Inventory Definitions
Open Auction– Anything goes; any & all buyers welcome– Publishers have the option of Blocklists and floor pricing to allow some control/structure
– Advertisers usually unaware of what publisher they’re buying into
ADDITIONAL RESOURCES
Additional Resources to Help You Out
• Demand Side Platforms Explained– http://marketingland.com/beyond‐adwords‐an‐intro‐to‐demand‐side‐
platforms‐44139• Intro to Programmatic Buying
– https://retargeter.com/blog/strategy‐2/programmatic‐buying‐intro• Programmatic for Dummies
– http://www.adweek.com/news‐gallery/advertising‐branding/programmatic‐dummies‐153590
• IAB Programmatic & Automation– http://www.iab.net/media/file/IAB_Digital_Simplified_Programmatic_S
ept_2013.pdf
Q&A
Thank you!