Programmatic Advertising
12/03/2015
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
Evolution Of Digital Advertising
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
Publishers and Programmatic
What is Programmatic Advertising?
Automated, Real Time rules based algorithms that deliver data informed experiences to
consumers as they move through purchase cycles and touch points
A subset of Programmatic Media Buying – guaranteed / non guaranteed premium
inventory (banner ads, home page take overs, mobile, video ads)
Programmatic is furnished with layers of added ‘value’ provided by DSP’s, SSP’s Ad
Exchanges, Ad Networks, DMP’s , IMT’s
They refine the data for the advertisers or publisher to provide:
Targeted advertising for brands and agencies
or
Control the premium or remnant inventory to increase yield for publishers
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
DSP, SSP, Ad Network & Exchanges
DSP – Demand Side Platform
DSP is a system that allows buyers of digital advertising inventory to manage multiple ad
exchange and data exchange accounts through one interface.
SSP – Sell Side Platform
SSP’s add a layer between the publisher and the ad exchange to let publishers create
rules to manage their inventory (who, what and how much to sell it for) to maximise
yield
Ad Networks - Google Ad Sense, Media.net, Admob, YouTube
Ad Exchange - is a technology platform that facilitates the buying and selling of online
media advertising inventory whose prices are determined through bidding from multiple
ad networks (RightMedia (Yahoo), Doubleclick (Google), Appnexus(Microsoft)
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
DMP’s, IMT’s & Programmatic Direct
DMP – Data Management Platform
DMP’s - Adobe, BlueKai, CoreAudience, sophisticated publishers - Add a layer of
understanding of what audience are looking at and engaging with across multiple
content sources
IMT – Independent Media Trader
IMT’s provide solutions for buying remnant inventory, offering execution services on
behalf of publishers, marketers and/or agencies, and networks
Programmatic Direct (Premium)
Programmatic Direct lets publishers automate rules to let brands reach the audience
they value whilst simplifying the sales process, providing the same guarantees that they
would have got from buying directly off the publishing sales team
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
What is Retargeting or RTB
Bidding on
individual ad
impressions
Retargeting your
audience
In real time
To show one
specific ad
For the
opportunity…
To one specific
consumer
In one specific
context
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
What is Programmatic Buying
Bidding on
individual ad
impressions
Programmatic
buying
In real time
To show one
specific ad
For the
opportunity…
To one specific
consumer
In one specific
context
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
Why is Programmatic so effective?
Programmatic buying can leverage
countless attributes of consumer
insights to understand the subtle
variations of the highly responsive
consumer.
Only in
contexts that
generate
impact
Buy only
consumers
that you want
And scale up
massively
Providing campaign specific
modelling
Impression-level decision
each user is given a propensity
score
Effectiveness
Giving us a dynamic bidding model
to reach the marketing goals
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
When can advertisers use it?
Branding
• Reach & Frequency
• Brand equity lift
• Purchase intent
From branding to direct
response to loyalty
marketing. Every conversion
has a marketing cost, a margin
and an opportunity to upsell.
Direct
Response
• Prospecting
• Retargeting
• Offline impact
Programmatic vendors can
have the data needed to make
that sale or steal one off your
competitors.
Loyalty
Marketing
• Up selling
• Cross selling
• Referrals
Programmatic is a method of
taking fragmented campaigns
and turning them onto an
‘always on’ marketing
campaign.
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
How Advertisers Should Use It
Programmatic works best when it takes
retargeting and audience profiling together,
and the advertiser does not delineate
between funnels.
If the advertiser wants to split the funnels,
let the experts decide where to make the
changes. This enables them to leverage
more data and capture more consumer
actions in their algorithms, thus deriving far
better funnel models for the advertiser‘s
product.
Bidding based on a propensity to click based
on visitor engagement metrics.
Display
Search
Social
Single
solution
Mobile
Video
A well plan campaign can deliver some great
results.
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
Problematic!
A programmatic campaign needs volume to
work.
A new brand, with no data, no loyal audience
and no brand awareness can only learn off the
profiling data of others.
You wont always get a ROI, or hit your CPA or
volume goals.
The more data you have, the more effective it
is.
Data (visits, click throughs’, conversions) are
essential.
Some agencies and vendors are more
knowledgeable or honest than others!
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
Moving More Inventory
Can you sell more advertising, not using premium direct sales?
Traditional selling model – No Transparency, Burden is on the brand / agency to refine
the audience, large sales staff numbers , remnant inventory is left unsold, premium is
very profitable
Are publishers reluctant to be innovative?
Can you make sell more inventory using Programmatic?
Entirely possible to up sell premium inventory using a RTB environment if the
publication source and audience targeting criteria are considered in the bidding model
Time for publishers to work with the correct players in the digital ecosystem. There is
less appetite for buying media without transparency. Why should there be?
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
Publishers should be conscious of....
The big gap between the CPM cost for advertisers and the CPM publishers receive
Lucrative landscape for value providers – Ad Networks, DSP’s, DMP’s, SSP’s, IMT’s
Providing a dual role - To add transparency to audience targeting whilst protecting the
flow of information throughout the value chain
Independent Media Traders – Purchase unsold inventory , they could also facilitate
higher CPM margins for publishers
IMT’s wont be an immediate disruptive influence as they heavily rely on DSP’s , SSP’s
and DMP’s (and they all still want their cut)
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
Avoiding programmatic direct?
RTB provides 30 – 40% of advertising revenue for publishers
The threat and availability of data, transparency and audience targeting is the problem
to direct marketing sales
Transparency drives value, higher CPM pricing based on RTB session depth, half your
inventory will be of real value to advertisers
Do you know what half?
What advertisers would be willing to buy it a premium pricing?
Brands want the same granular information on premium inventory as they would from
RTB on the remnant inventory
Can publishers avoid programmatic direct? - Probably Not!
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
Options for Publishers
There are 4 main models to capturing ad revenue
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
Generating advertising revenue
•Segment target audiences more effectively
•Demand maximum CPM rates
•Control premium and last minute inventory
•Minimize unsold inventory
•Understand subscribers and optimize content
•Increase exposure to content at the audience segment level
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
Generating more advertising revenue
•Use Audience Extensions to target premium audiences outside of owned or
managed media
•Systematically sell paid subscriptions leveraging programmatic marketing
(subscription acquisition)
•Estimates suggest 80-90% of the available online ad inventory is unsold each year.
• Publishers live in an illiquid environment where supply can’t find demand. No
number of hired direct sales reps can solve this problem...
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK
Questions
Grant Whiteside
Product and Development Director
Ambergreen
@ambergreen_says
gwhiteside@ambergreen.co.uk
ambergreeninternetmarketing.com
COPYRIGHT 2015
WWW.AMBERGREEN.CO.UK