Matt Prohaska's presentation from Digiday's WTF Programmatic for Publishers event in NYC - April 30, 2015.

1. For
Context,
A
Li.le
About
Prohaska
Consul7ng
• “Programma7c
Help
For
All”
• Publishers, Ad Tech, Agencies, Brands, Industry, Investors
• 60+ clients in the last year+
• 30+ different ad tech vendor reviews last 3 years
• Current
ac7ve
freelance
team
of
28
in
7
ci7es
• Sales, Marketing, Operations, Biz Dev, Analytics, Tech Dev
• Ma.
Prohaska,
CEO
&
Principal
• In digital advertising since ‘94
• Former Programmatic Advertising Dir. @ New York Times
● Closed more programmatic direct deals than any other
publisher in the world during 10 months there

2. Most
U.S.
Pubs
Are
Now
Beyond
This
Reac7on
Source:
AMC,
Mad
Men,
2014

3. And
This
Reac7on…
Source: Raising Arizona, 1987

4. What Benefits Come From Programmatic?
Efficiency
Lower
CPMs
Speed
Audience
Targe7ng

5. 4 Programmatic Transaction Types
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
www.iab.net/programmatic
Trend
Line

6. Open vs. Private Marketplaces: Retail Analogy
Open Private
www.iab.net/programmatic
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7. Programmatic Team Culture vs. Strategy
• Spectrum of sales talent: lean-in vs. fear/head-in-sand
• Similar to digital SME sitting down the hall
• Operations often “driving the bus,” not sales
• Salespeople are spending more time on
creative, strategic, proactive; not losing their jobs.
• As with Brands & Agencies should be considered part
of an overall strategy for optimizing revenue.

8. • 1: Pipes: Programmatic born from the AdOps team, implementation & set up
• 2: Education: Separate team built to drive programmatic conversations
• 3: Consultative: Team/individual leveraged as SME to co-sell & help drive revenue
• Stage 4 happening now: Full Sales & Ops integration
• New York Times only pub in world then doing Stage 4; now 15+ publishers in U.S.
Staged Approach to Programmatic Selling
From Nov. ‘13 - www.iab.net/programmatic

9. Holding Company/Trade Desk Mapping
(for the most part, as of today ;-)
Holding Company Agency Examples Trade Desk
www.iab.net/programmatic

10. Buyers Landscape – Clients
• Many top clients bringing their practice “in-house”
• Netflix à
(from Programmatic I/O ‘14)
• Also P&G, Kellogg,
800-Flowers
• <15 brands in U.S. today
• Mostly CPG & Retail
• Financial next (AllState)

11. Leveraging Your Tech Stack – Why?
• Sales & Operations working together more
than ever
• No longer simply throw the IO over and let
traffic get creative and tags
• Opportunity for Operations to take more
control and drive the campaign for you
• Hunters and farmers
• “A good craftsman never blames his tools.”

12. Leveraging Your Tech Stack - Definition
• A series of technologies (internal/external) that
allow you to transact media programmatically
• Ad server(s)
• Exchange(s)
• Yield Management Tool
• Data Management Platform (DMP)
• Publisher Trading Desk

13. Your DMP à Your Data Management Platform

14. Your DMP à Your Data Management Platform
• Buyer-focused originally
• Publisher-focused more in the last 18 months
• 1st Party = your audience
• Behavior, demo, geo, viewability, site-level, category level
• The more granular the targeting the higher the pricing
• 3rd Party = others’ audiences
• Lookalike targeting
• Expand the pool (you have 1M,
go find 4M more similar)

15. Your DMP
• New products – Audience Extension (on-site, off)
PublisherX.com Audience Extension (BT)
PublisherX.com/Autos
PublisherX.com Network
Audience Extension

16. Your DMP – The New “Green Ring”

17. Your Yield Management
• Balance of sell-thru rates vs. CPM
• Price floors – global, by-vertical, by-buyer, by-client
• Guaranteed vs. Non-Guaranteed
• Dynamic Allocation, or dynamic allocation
• TV: Upfront vs. Scatter vs. Opportunistic sales
• Display, Mobile, Video, Social

18. Your Trading Desk
• Your Operations team buys your audience on
exchanges
• Control cookie pools, frequency, margin
• Self-service or managed-service
• Potential replacement for integration b/w
DMP & bidders, including Marketing/House
“spend”

19. 5 Stages of Selling
• Prospecting
• Intros & Pitching
• Proposing
• Closing/Launching
• Optimizing/Upselling

20. Stage 2: Pitching – Show Apples & Oranges
• Know what they are buying
10 reasons programmatic is different from your IO
(i.e. Why IOs are $12 and programmatic is $1.20)
1. Not guaranteed inventory
2. Only 300x250, 728x90, 300x600?
3. No competitive separation
4. No roadblocks
5. No SOV
6. No fixed positions
7. Only top-level channel targeting?
8. Not served “first-look”
9. No product placement/custom sponsorships
10. No Added Value needed; agency “kickbacks”

21. Stage 5: Optimizing/Upselling
• Campaign delivery
• Seen through your exchange dashboard
• Kick out reports from Ops or view on your own
• Managing Expectations
• Non-Guaranteed
• Rhythm/cadence of performance reporting
• Setup weekly 15-30-minute call with Ops/client/ATD/DSP to
review data
• This can be set it & forget it, but you will make
more if you pay attention with Ops

22. Stage 5: Optimizing/Upselling
• More Opportunities to Grow Business
• Trading margin for share, based on CPx
outcomes
• Adding an IO based on current exchange
limitations for more sophisticated inventory,
creative
• All the items on your Top 10 Apples & Oranges slide
• Brand awareness working together with DR
• Positive (frequency) & negative (reach) re-targeting

23. Where
Programma7c
S7ll
S7nks
Today
• Some
Deal
ID
technical
pain
• Guaranteed
delivery
• Price
transparency
• Audience
discovery
• Tech
not
built
equally
for
sellers
and
buyers
• Human
sellers
and
human
buyers
working
together
to
solve
marketers’
problems

24. Remember: This Isn’t Happening Overnight
Source: The Matrix, 1999

25. Thank You!
Matt Prohaska
CEO & Principal
matt@prohaskaconsulting.com
917.597.6568
@mattprohaska
linkedin.com/in/mattprohaska