2. Questions?
Attendees should ask questions by typing into
the Question box on the GoToWebinar user
interface at any time during the presentations.
– We will create a queue and answer as
many questions as possible following
the presentations.
– Additional questions should be directed
to Nicole Horsford, Nicole@iab.net
3. Agenda
Introduction
What is programmatic?
● Patrick Landi, Time Inc
Selling programmatic
● Steph Layser, MailOnline
Programmatic sales evolution
● Kate Ammann, Monster
IAB Activities on Programmatic
● Carl Kalapesi, IAB
Q&A
2 www.iab.net/programmatic
5. Programmatic Defined
Programmatic buying is the process of
executing media buys in an automated
fashion through digital platforms such as:
exchanges, trading desks, and demand-
side platforms (DSPs). This method
replaces the traditional use of manual
RFPs, negotiations and insertion orders to
purchase digital media
www.iab.net/programmatic4
6. Real Time bidding (RTB)Defined
eMarketer:
Real-time bidding (RTB) is a digital advertising technology that lets
marketers buy and publishers sell display ads dynamically, in real
time, on an impression-by-impression basis.
Scott Spencer, Director of Product Management, Ad Exchange,
Google
"Real time bidding (n);
1) A technology introduced in 2009 to make it easier for ad networks
to buy only the inventory they want.
2) A common buzzword that is part of everyone's business plan in
2013.
3) The act of buying digital inventory from multiple publishers on an
impression by impression basis, typically involving an auction
pricing mechanism.
4) One of the biggest opportunities for publishers to participate in new
media spend, but not a panacea if done in isolation.
www.iab.net/programmatic5
7. Open Marketplace vs Private Marketplace
Open Marketplace allows buyers to purchase media on an audience
basis through cookie-based targeting; achieving scale is usually a
higher priority than running campaigns with specific publishers
Private Marketplaces (PMP) allows publishers to leverage
programmatic technology(s) while maintaining a direct relationship
with agencies, advertisers, trade desks and other programmatic
buyers using a “Deal ID” to transact
Benefits:
• Greater control- specific rules around access to buyers can be
created
• Prioritization
• Exclusive inventory and access
• Transparency leads to higher CPMs for publishers and brings new
advertisers previously wary of programmatic
• Access to publishers’ first party data
www.iab.net/programmatic6
8. Nissan wants to buy on
your Site
7
$300 million advertising budget
$50 Million Digital Budget goes to…
$500K goes towards a sponsorship on your
site
$1 million budget allocated to programmatic
and goes to…
$100k allocated to YourSite’s private
exchange
Agency trade desks license technology (a
bidder) to buy programmatically, using a
Demand Side Platform (DSP)…
Publishers license technology to sell
programmatically, using a Sell Side Platform
(SSP)…
www.iab.net/programmatic
12. Know what makes your property’s
programmatic offering unique
Be consultative and drive data conversations
that make sense for your advertiser
Know the big players in programmatic and
remain educated in the marketplace
Top Three Lessons in Selling
Programmatic
www.iab.net/programmatic11
14. Future of the Programmatic
Salesperson
Relationships Matter More Than Ever
Focus on Higher-Value Add
Need for Continued Education and
Evolution of Compensation Models
13 www.iab.net/programmatic
16. Being proactive around
programmatic
How can I be proactive about bringing programmatic
into my sales conversations?
RTB and Private Marketplace use as a lead generation tool
Leverage existing relationships (agency/network/trading desk,
etc.) to position yourself as a holistic partner
• Package custom sponsorships/integrations/high impact units with
RTB/automated buy
Productize Programmatic
• Private Marketplace
First-Party Data
• Offer data through programmatic channels
• Hybrid on-site/off-site audience packages
15 www.iab.net/programmatic
18. IAB launches Programmatic
Council to packed house
Agreed 4 priorities for 2014:
1. Building a transparent & fair
marketplace
2. Marketplace education and
training
3. Standardization of definitions,
terminology, and best
practices
4. Making Programmatic work
for brands
17
19. What we talk about when we talk
about programmatic
18 www.iab.net/programmatic
25. Other Common Terms
•Demand Side Platform (DSP): a company that provides technology for media buyers
to purchase advertising through real time bidding technology
Examples: Turn, MediaMath, DoubleClick Bid Manager, X+1, DataXu
•Sell Side Platform (SSP): a company that provides technology for publishers to sell
their unsold inventory through real time bidding and other programmatic technologies,
enabling publishers to manage multiple demand sources within one platform
Examples: Rubicon, PubMatic, Google AdX, OpenX, Casale
•Data Management Platform (DMP): (as defined by Lotame)the backbone of data-
driven marketing, and serves as a unifying platform to collect, organize, and activate
your first- and third-party audience data from any source, including online, offline, or
mobile.
Examples: BlueKai, Exelate, Lotame
24
26. Deal ID Defined
IAB Definition:
A Deal ID is an additional parameter that is passed in a bid request/bid
response. In addition to things like timestamp, URL, IP address, cookie
info, etc. many platforms now also have the ability to pass the Deal ID on
with transaction. Deal ID is a unique string of characters that are used as
an identifier for buyers and sellers. The buyer and seller will decide what
that unique string of characters is defining. Depending on what platform
you are using this could include things like priority, transparency, floor
pricing, or data. A deal ID can usually be applied to any of the tactics that
are executed through RTB pipes
25
27. Four types of programmatic
transactions
26
Type of
Inventory
(Reserved,
Unreserved)
Pricing
(Fixed,
Auction
)
Participation
(One Seller-
One Buyer,
One Seller-
Few Buyers,
One Seller-All
Buyers)
Other Terms
Used in Market
Other
Considerations
Automated
Guaranteed
Reserved Fixed One-One Programmatic
guaranteed
Programmatic
premium
Programmatic direct
Programmatic
reserved • Prioritization
in the ad
server
• Deal ID
• Data usage
• Transparency
to buyer
• Price floors
Unreserved
Fixed Rate
Unreserved Fixed One-One Preferred deals
Private access
First right of refusal
Invitation-
Only Auction
Unreserved Auction One-Few Private marketplace
Private auction
Closed auction
Private access
Open Auction Unreserved Auction One-All Real-time bidding
(RTB)
Open exchange
Open marketplace
28. The Origins of programmatic
• 1994- Hotwired sold the first banner add to AT&T
• 1998- Adnetworks like 24/7 Real Media started to emerge to aggregate and resell
publishers’ unsold inventory
• 2005- Right Media launched the first digital exchange in order to start aggregating
cookies, allowing publishers to start segmenting their audiences via cookies and 3rd party
data BUT was not the first to offer real time bidding (RTB)
• 2008- Agency Holding Company’s started developing trade desks to handle all exchange
based buying and become in house experts on programmatic buying and selling
• 2009- Demand Side Platform (DSP), Turn executed the first real time bidding (RTB) buy
via Sell Side Platform (SSP), PubMatic allowing advertisers to start bidding on individual
impressions in real time
• 2011-2012- Publishers start building private exchanges, carving out inventory segments to
an exclusive subset of programmatic buyers (primarily agency trade desks and direct
advertisers)
• 2012- Facebook exchange launches, allowing advertisers to bid on facebook impressions,
then retarget those users across the internet; estimates are it’s already bringing in an
additional $15-25 million in revenue
• September 2013- AOL launching the first “Programmatic Upfront”
27
There is significant confusion in the marketplace around the meaning of terms like “programmatic”, “RTB”, “programmatic direct”, “programmatic premium”, and other verbiage, often being used interchangeably. To help clarify – IAB worked with publishers to set out key terms – mapped based on 2 characteristics – how the price was set (ie auction based or fixed price) and the type of inventory (reserved/unreserved)
Started by thinking about what distinguishes them. Ultimately we boiled this down to 3 things – what type of inventory we are talking about (reserved vs unreserved), what type of pricing (fixed vs auction) and who is involved (1-1, 1-few, 1-many)Whilst there are lots of other issues like prioritization, Deal ID etc they can apply differently to each of the transaction types“Automated Guaranteed”This type of transaction most closely mirrors a traditional digital direct sale. The deal is negotiated directly between buyer and seller, the inventory and pricing are guaranteed, and the campaign runs at the same priority as other direct deals in the ad server. The programmatic element of the transaction that differentiates it from a traditional direct sale is the automation of the RFP and campaign trafficking process. Negotiation through to fulfillment can be, should the publisher desire, completed within the technology platform providing the automated reserve functionality. “Unreserved Fixed Rate”Transactions that fall into this category exist within an exchange environment, but have pre-negotiated, fixed pricing (CPM, CPC, etc.) Typically, Unreserved Fixed Rate deals sit at a higher priority than the Open and/or Invitation-Only Auction. A deal of this type typically is necessitated by advertiser demand for a more predictable offering within the exchange space.“Invitation-Only Auction”This auction type is very similar to an Open Auction except a publisher restricts participation to select buyers/advertisers via Whitelist/Blocklist. A publisher may choose to not participate in an Open Auction and only run an Invitation-Only Auction. It is important to note that an Invitation-Only Auction is an auction and buyers will be expected to bid on inventory. A publisher may choose to expose different information such as transparency or data, through the use of Deal IDs or Line Items to add value to this select group of buyers while participating in this tactic.“Open Auction”An Open Auction is the Wild West of auctions. A publisher will generally allow any and all buyers to participate in accessing their inventory through this tactic. Usually there is no direct relationship with the buyer. Publishers may choose to use Blocklists and floor pricing to prevent advertisers from gaining access. On the advertiser side they are often unaware of what publisher they are buying on. DSP’s usually present a list of exchanges/SSPs to the buyer that they automatically opt into. Buyers may not know or care that they are buying a publisher’s inventory. Because of this, publishers can participate in the Open Auction on a blind basis.