Advertising Automation 101

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Advertising is last frontier of large markets yet to become automatedAgenda

• Welcome – Ed Carey

• Programmatic Landscape – Trent Beckley & Michael Gellar

• Buyer Perspective – Elvin Kawasaki, Initiative

• Seller Perspective – Jennifer Dodez, Edmunds.com

Ed CareyVP, National Sales

Rubicon Project

Trent BeckleyDirector, West Coast Sales,

Buyer Cloud

Rubicon Project

Michael GellarSr. Director - Central, West &

Canada Head of Sales, Buyer Cloud

Rubicon Project

Elvin KawasakiVP Digital Group

Account Director

Initiative

Jennifer DodezAccount Director

Programmatic Solutions

Edmunds.com

Advertising is last frontier of large markets yet to become automatedAdvertising: Last Frontier Of Large Markets Yet To Become Automated

Why we are all here? Why is this important?

All Marketplaces Mature From Unsold To Premium

IPG Mediabrands(Magna Global)

WPP Group(Xaxis)

Omnicom(Accuen Media)

Havas Media(Affiperf)

How much of each ad dollar the trading desks have already

automated, and how much they expect to automate in 2015:

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Automation 101

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How the world looks

without automation

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Legacy Advertising “Automation”: People Powered by Excel Spreadsheets

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Automation

=RTB + Programmatic + Workflow

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• Open Marketplace allows buyers to purchase media on an audience

basis through cookie-based targeting

• Private Marketplaces (PMP) allows publishers to leverage

programmatic technologies while maintaining a direct relationship with

agencies, advertisers, trade desks and other programmatic buyers

using a “Deal ID” to transact

• Benefits of Private Marketplaces Control

Transparency

Access

Open Marketplace vs. Private Marketplace

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What is Real Time Bidding?

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Source: IAB

Programmatic Transactions from Advertiser to Publisher

How the auction works:

The Future Of Seller Storefronts

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GOALS:• Always-on

• Reallocate FTE hours to higher ROI

activities – like creating better content

SOLUTION:• 20+ hand selected premium publishers

• Execute buys in under 2 days

• Eliminated insertion orders (IO), emails, RFPs and

phone calls

RESULTS:• Achieved 100% of campaign performance

goals programmatically

• Reallocated FTE hours to higher ROI

activities

Case Study: A Leading Digital Entertainment Provider

Why are they adopting?

• More $$$$

• Tech is ready

• Expand sales channel

• Data/Audience

• Consolidation

• ROI

Buyers Sellers

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The Big Spenders Are Changing The Way They Spend

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Elvin Kawasaki

Initiative

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• One of the biggest inhibitors of programmatic growth has been education

• As marketers, educate yourself to make informed decisions

• Ask questions: Who?

Why?

When?

How?

WTF (about me)?!

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Who?

Ecosystem is not complicated, but…

• Transitional buying options make for

clutter

• Constant demand for new

technology solutions like attribution

and data management

• Consolidation

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Why?

What is the No. 1 reason that an advertiser or

agency would buy programmatically vs. direct

with publisher?

• There are a lot of reasons why programmatic

technology is powerful.. but

• The real value for advertisers is being able to

buy individual impressions based on the value

of those customers you want to reach – right

impression at the right time

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When?

When shouldn’t you buy your media

programmatically?

• When buying custom that isn’t done at

scale or isn’t connected through

programmatic channels

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How?

How can someone differentiate themselves in a programmatic marketplace

when media is becoming more and more commoditized?

• You have to do your research to ensure a partner has access to a broad

scope of capabilities that might meet your business objectives

• Adopt a culture of testing

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WTF (about me)?!

• Will programmatic technology put media planners and buyers out of work?

• Is programmatic technology a threat to the agency business model?

• If programmatic technology is supposed to make things more efficient, why

does it seem so complicated and difficult?

• Who are the biggest winners and losers as media gets bought and sold

programmatically?

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Jennifer Dodez

Edmunds.com

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Go-To-Market Approach & Strategy

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Marketing 101

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THE FOUR P’S

PRODUCT: What inventory will be included?

• All unsold inventory

• Platforms: Desktop, Mobile, Tablet

• Standard IAB sizes

• Rising stars

• Homepage inventory

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PRODUCT: What type of Programmatic products will

you offer?

• Open Exchange

• Preferred Deals

• Private Marketplace

• Data

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PRODUCT: Our Strategy

Launch against all products to

capture the full potential

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PRODUCT: Our StrategyOpen Exchange

• Run of Site inventory at the Platform and Size level

• Impressions available to most Advertisers

• Impressions are Semi-transparent/Blind

• No Homepage inventory

• Most Advertisers accepted

• Capture re-targeting budgets that would otherwise not be targeted

• “Always-on”

Preferred Deals

• Impressions at a negotiated fixed CPM

• Priority serving – best inventory

• Access to new ad sizes (Rising Stars)

• One-to-One relationship

• Selected set of Advertisers – typically endemic and near endemic

Private Marketplace

• Carve out special inventory sets exclusively for an Advertiser

• Allow use of our 1st party data

• Allow full transparency of impressions

• Typically our largest direct advertisers

• Most similar to a direct buy

TECHNOLOGY

PRICE: How do I price out my inventory?

• Price by ad size & platform

• Price by Advertiser

• Best Practice: Develop Rate Card

Biggest Challenge: Does programmatic mean lower CPMs?

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You are in control.

You are in control.

Be Confident

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PRICE: How do I price out my inventory?

• Launch first with an Open Exchange – set a low floor and

let the market decide the value

• Launch with floors at the advertiser level/categories and

then adjust

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PRICE: Our Strategy

Open Exchange

• Launched high and then reduced CPMs to maximize fill rate

• Established Rate Cards by Advertiser category

Preferred Deals

Private Exchanges

• Established Rate Cards by Inventory type

• Use a consultative approach and adjust strategy by

Advertiser

• Supply/Demand

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PROMOTION: Who will sell our programmatic offering?

• Programmatic-specific sales staff

• Direct sales staff adds programmatic to their product offering

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PROMOTION: How will we sell our programmatic offering?

• Develop target audience

• Education: Direct Sales staff should be educated and

empowered to sell programmatic

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PROMOTION: Our Strategy - Who?

Open Exchange

Preferred Deals

Private Exchange

Programmatic Specialist

With

Direct Sales Account Director

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PROMOTION: Our Strategy - How?

Open Exchange

Preferred Deals

Private Exchange

Target Audience:

Direct clients

DSPs

Near endemic

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PLACE: Where will I put my impressions?

• Choose your Ad Exchange / Demand Partner

• How many partners will I work with?

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PLACE: Our Strategy

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Contact

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Ed Carey

ecarey@rubiconproject.com

Michael Gellar

mgellar@rubiconproject.com

Trent Beckley

tbeckley@rubiconproject.com

Elvin Kawasaki

Elvin.Kawasaki@initiative.com

Jennifer Dodez

jdodez@edmunds.com