UK COPYRIGHT 2015 Programmatic Advertising 12/03/2015

UK COPYRIGHT 2015 Evolution Of Digital Advertising

UK COPYRIGHT 2015 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

UK COPYRIGHT 2015 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)

UK COPYRIGHT 2015 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

UK COPYRIGHT 2015 What is Retargeting or RTB Retargeting your audience Bidding on individual ad impressions In real time For the opportunity… To show one specific ad To one specific consumer In one specific context

UK COPYRIGHT 2015 What is Programmatic Buying Programmatic buying Bidding on individual ad impressions In real time For the opportunity… To show one specific ad To one specific consumer In one specific context

UK COPYRIGHT 2015 Why is Programmatic so effective? Effectiveness Buy only consumers that you want Only in contexts that generate impact And scale up massively Programmatic buying can leverage countless attributes of consumer insights to understand the subtle variations of the highly responsive consumer. Providing campaign specific modelling Impression-level decision each user is given a propensity score Giving us a dynamic bidding model to reach the marketing goals

UK COPYRIGHT 2015 When can advertisers use it? Branding Direct Response Loyalty Marketing Reach & Frequency Brand equity lift Purchase intent Prospecting Retargeting Offline impact Up selling Cross selling Referrals Programmatic is a method of taking fragmented campaigns and turning them onto an ‘always on’ marketing campaign. From branding to direct response to loyalty marketing. Every conversion has a marketing cost, a margin and an opportunity to upsell. Programmatic vendors can have the data needed to make that sale or steal one off your competitors.

UK COPYRIGHT 2015 How Advertisers Should Use It Single solution DisplaySocialVideoMobileSearch 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. A well plan campaign can deliver some great results.

UK COPYRIGHT 2015 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!

UK COPYRIGHT 2015 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?

UK COPYRIGHT 2015 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)

UK COPYRIGHT 2015 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!

UK COPYRIGHT 2015 Options for Publishers There are 4 main models to capturing ad revenue

UK COPYRIGHT 2015 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

UK COPYRIGHT 2015 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...

UK COPYRIGHT 2015 Questions Grant Whiteside Product and Development Director ambergreeninternetmarketing.com