Getting Started with Programmatic: A Digital Video Primer

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Introduction:What is Programmatic Video Advertising?If you’re in the digital advertising space, you’ve probably heard a lot about programmatic buying. But despite the popularity of the topic, more than half of marketers don’t understand programmatic buying well enough to implement it.1 The lack of clarity isn’t surprising — definitions of programmatic vary, and examples tend to be theoretical, rather than concrete.

This eBook will focus on programmatic video advertising, and is written for those on the demand side of the equation. If you’re seriously considering an investment in programmatic advertising, this eBook should help you ask the right questions, get the answers you need, and get started with programmatic video.

First of all, let’s define our terms. At its most basic, programmatic refers to the use of software to automate the purchase of digital advertising. Traditionally, advertisers have used RFPs (requests for proposals), person-to-person negotiations, and manual insertion orders to buy video ads. Programmatic buying represents a new way.

We use three qualifying questions to identify programmatic video advertising. If you can answer “yes” to all three of these questions about video ad buying, it’s programmatic:

Are impressions bought and sold in an automated way? Automation enables individual-impression buying and real-time bidding based on advertiser goals. It also lets the publisher deliver a specific ad via a specific advertiser. Impressions can either be bought through an auction, or at a pre-determined price.

Can you leverage data for better targeting, optimization and measurement for each impression? It’s possible to leverage data in traditional buying, but a programmatic platform should give you control over millions of combinations of targeting parameters. For example, you might fine-tune your bid price, the time of day your ads are shown, the size of your ad player, the number of times an individual sees an ad, and more.

Are the ads evaluated at the individual-impression level? We’ll dive deeper into the benefits of individual- impression execution below. For now, just remember that if impressions are evaluated and trafficked in blocks, they aren’t programmatic.

1 Research Report: 2014 ANA/Forrester Survey: Media Buying’s Evolution Challenges Marketers

The Benefits of “Single-Impression” BuyingIf you’re buying ads manually, it’s too time-consuming to buy thousands (or millions) of impressions individually. That’s why, traditionally, ad buyers have purchased large numbers of impressions in a single deal. An advertiser buys X number of impressions from a website whose readership matches their target consumer and hopes for the best. Brands pay the same for every impression on that website, whether they’re a good match or a bad one.

Programmatic ad buying (including ads executed through real time bidding technology, or RTB), allows advertisers to evaluate buys at the “single-impression” level. That’s because it automates the buying process, giving ad buyers instant access to inventory across websites, mobile sites, and mobile apps. In the milliseconds it takes to load a webpage, this technology can identify a consumer’s key attributes, place the impression on a marketplace, run an auction, and serve an ad from the highest bidder. As a result, ad buyers can focus on high-value impressions and minimize waste.

On BrightRoll’s platform, we see upwards of 60 billion ad opportunities every month. Despite this volume, every singleimpression is bid on individually — at the “single-impression” level. Ad buyers pay only what each impression is worth.

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Your Programmatic AdvantageProgrammatic video gives ad buyers huge advantages, which is why a growing number of marketers are shifting budget to programmatic. Here are the benefits that will have the biggest impact on your marketing.

A single view of campaigns. A single view doesn’t only improve analytics. A consolidated view also makes it easier to manage your data, frequency capping, and quality control measures. At minimum, your platform should give you a transparent view of metrics like click-through rates, the average duration your ad is played, and ad completion rates.

Built-in optimization. A strong programmatic platform can automatically assess and respond to your campaign’s performance — even during campaigns. Your platform should track key performance indicators based on your goals (such as completed views, click-throughs, and brand lift metrics), allowing you to make adjustments on the fly.

Cross-publisher frequency capping. Control and monitor exposure to your ads. Set limits on how often a consumer views individual ads, or multiple ads within a single campaign. This is only possible when all of your campaigns are managed on a single platform.

Transparent spend and delivery. Programmatic buying helps you understand exactly how your budget is being spent, and where your ads are being run. A programmatic platform should allow you to precisely monitor spend throughout your campaign, and automatically adjust if you’re over- or under-pacing your budget. It should also tell you where your ads are running. The context in which your ad is shown will affect its success.

Higher ROI. You want your campaigns to tell powerful stories, shift consumer perceptions, and ultimately drive sales. Programmatic buying drives marketing that is efficient and effective — in other words, marketing that works.

Better targeting. A programmatic platform allows you to precisely target audiences based on your own data (aka “first-party data”) and data from third-party providers. The best platforms can target based on the characteristics of your audience (such as age, gender, geography, and interest), the characteristics of your inventory (such as ad placement, content category, and device), and the real-time performance of your ads.

Unified reporting and analytics. A platform gives you a single source of information. Without a single view of performance, you’ll miss insights into consumer behavior, and opportunities to improve campaigns. Your reporting should be directly integrated into your DSP, so that you can measure real-time and post-campaign performance.

Access to Third-Party Audience VerificationYour technology provider should have strong partnerships with third-party audience verification providers, such as Nielsen and comScore. An independent partner should verify your platform’s data and give you a richer understanding of performance. Your platform should help you leverage third-party data throughout the lifecycle of your campaigns — planning, management, optimization, and reporting. Ideally, this integration will be at no cost to you.

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Meet the Programmatic PlayersThe advertising technology landscape is large and complex, and buying programmatic video involves many of its layers. To fully grasp how programmatic video works, you’ll first need to understand the players.

The Buy SideAdvertisers

AgenciesAd Networks

Agency Trading Desks (ATDs)Demand Side Plaforms (DSPs)

The Sell SidePublishers

Supply Side Platforms (SSPs)

Data ProvidersThird-Party Data Aggregators

Data Management Platforms (DMPs)

The MiddleAd Exchanges

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The Buy SideLet’s start on the buy side. These are the players involved with buying video inventory.

• Advertisers — companies who want to put their message in front of target consumers, in order to build awareness, change perception, and sell products or services.

• Agencies — companies who work with advertisers to plan, create, execute, and monitor and measure advertising campaigns.

• Ad Networks — companies who work with publishers to aggregate and package inventory for sale to advertisers and agencies.

• Agency Trading Desks (ATDs) — organizations that centralize media buying, typically display and video, within a large agency holding company to drive volume discounts and efficiency in media execution. There are only a handful of ATDs since there are only a handful of large agency holding companies.

• Demand Side Platforms (DSPs) — software used by agencies, advertisers, and advertising trading desks to buy video advertising in an automated way

The Sell SideOn the other end of the equation, we’ve got supply. Here are the players providing inventory to buyers.

• Publishers — creators of consumer experiences in websites/mobile sites/mobile apps on which the video advertisement will play. Publishers provide the inventory for sale.

• Supply Side Platforms (SSPs) — software used by publishers to make their inventory available for sale and to help maximize their revenue potential.

The MiddleAd exchanges are neither buy-side nor sell-side — they function exactly in between.

• Ad Exchanges — marketplaces that connect buyers to publishers, SSPs, and other “supply” sources, often in real time.

Data ProvidersThese impartial providers help players on both sides (buy and sell) to make inform, optimized decisions. Advertisers and agencies typically use a DSP to put this data to work.

• Third-Party Data Aggregators — organizations that sell pre-packaged audience segments to buyers to aid in impression selection. Some third-party data aggregators can help you transfer offline data to your digital platform.

• Data Management Platforms (DMPs) — companies who manage data on behalf of advertisers and publishers. DMPs can use (and in some cases sell) custom data to advertisers for use in impression selection.

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Your Programmatic Video ToolsetNow that you understand the ecosystem, here are the tools you’ll need to buy video programmatically: the software you need to buy inventory, the team you need to strategize and run campaigns, and the technology partners who will help you optimize over time.

Your Demand-Side Platform (DSP)A Demand-Side Platform, or DSP, is the software that actually allows you to buy programmatically. A DSP gives ad buyers access to video inventory from web, mobile web, mobile app publishers, and connected TV.

A DSP also allows you to consolidate all of your video buys in one place. This enables greater efficiency (through cross-publisher frequency capping, which we discussed earlier), better optimization (through unified reporting across your entire buy) and improved effectiveness (through better use of data).

You may want direct access to your DSP, managing your own campaign set-up and optimizations. Alternatively, you may want a technology partner who can fully manage campaigns based on your goals, putting their own employees’ hands on the keyboard on your behalf. Either way, your DSP should make video advertising simpler and more effective. It should also help you access the largest possible video supply, whether it’s through an open exchange or private marketplaces, so that you can reach your target audience wherever they are.

So how does that actually break down? To make your marketing smarter, more efficient, and more effective, here are the things you should look for in a DSP:

• You can buy ads on the single-impression level, paying only what each impression is worth.

• You can leverage first-party and third-party data together across your entire investment, making it easier to find and engage your desired audience.

• You can verify your audience with a third-party provider, giving you confidence that you’re reaching the right audience.

• You can reach your audience wherever they are, advertising to your target consumer on any screen, at any time.

• You get better visibility across your entire investment, with clear insight into audience, ad performance, and spend.

• You control exposure to your ad, using global frequency caps to determine exactly how often your audiences see individual ads, or several ads in one campaign — even across multiple publishers.

• You can be agile, making adjustments to your key performance indicators as needed.

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Your Programmatic Video TeamProgrammatic video buying isn’t just about technology — you also need people. Managing these campaigns requires some new skills and vocabulary, but it also requires a data-driven mindset not typical in traditional media buying. Data is gathered and made actionable in real time on a programmatic platform; the ability to act on that data is key. Whether you manage programmatic video buying yourself or leverage support from your technology partner here’s what your team will need.

Anyone buying programmatic video needs to be:

• Data-Driven. Teams buying programmatic video need to be comfortable drawing insights from data. Beyond that (and this is the hard part, we know) they need to be comfortable acting on that data, even when it challenges current thinking and processes.

• Creative. Optimization depends on experimentation — without new ideas to try, there’s nothing to test. Your team should take advantage of new possibilities in audience targeting, personalization, and cross-channel campaigns to connect with consumers.

• Flexible. The digital video landscape is rapidly changing. There are many new vendors and products, all of which will have different capabilities. Smart programmatic buying requires an openness to explore.

Organizing Your TeamThere are many ways to organize a programmatic buying team, depending on the size of your organization, the number of brands and verticals within your organization, how much media you need delivered, and more. If, for example, an agency represents multiple brands within multiple verticals, it might need multiple experts to address and maximize the value of every dollar. A brand with only one set of products might manage their programmatic buying with a much leaner team.

Your team doesn’t need years of experience in programmatic — look for people with agency or finance backgrounds. They should be comfortable analyzing reports, and manipulating data in Excel. Because this team will work closely with sales, written and verbal communication skills are also essential.

Keep in mind that advertisers may outsource these roles to an agency, and both brands and agencies may outsource these roles to their technology partner. Whether one person fulfills multiple responsibilities, or you have several people dedicated to each one, you’ll need someone to take ownership of each of the following areas:

Campaign Manager: This is the most important part of your programmatic buying, responsible for strategy and optimization. Your campaign manager is tasked with executing buys, and for maximizing the impact of investment. Becauseoptimization is a continuous process of testing, measuring, and iteration, we recommend a dedicated strategist who can learn the nuances of your performance over time.

Traffic Operations: The owner of traffic operations makes sure your video ads are coded the right way, that your ads play across all screens in all types of environments, and that your tags fire appropriately. This may be handled by the campaign manager, or might be a dedicated role.

Research and Analytics: While optimization strategy is deeply tactical, research and analytics requires a high-level view of all programmatic performance — in both display and video. Which areas are performing, and which need to be improved? How might this affect other parts of your advertising strategy? Researchers and analysts provide a picture of your more holistic brand marketing efforts, create buying models, and apply what you’ve learned from programmatic video to the rest of your brand. We recommend dedicated headcount for this role, ideally a dedicated team.

Creative: Typically a team (rather than a single individual), this function is focused on creating your video ads. While this team owns your creative, it should work closely with the optimization strategy, research/analytics, and traffic teams to ensure alignment. Advertisers and agencies interested in interactive elements, such as interactive overlays, may consider adding a creative director focused on interactive video.

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Your Technology PartnerUltimately, you need a vendor with the best technology and the strongest support. Your technology partner, which is often your DSP provider, should work to educate your team on best practices and industry standards, connect you with other vendors, and provide a level of service that fits your programmatic needs.

Levels of ServiceYour technology partner should provide best-in-class service, regardless of the level of support you need.

• If you want self-serve (or “hands on keyboard”) buying access: Look for a partner with a highly intuitive interface, a thorough onboarding and training process, and a commitment to your success.

• If you want fully managed service: Look for a vendor who can work closely with you to plan, execute, manage and optimize digital video campaigns, including a full suite of custom research offerings and creative services, and a strong reputation for great customer support.

Questions to Ask:• How can you help my team become better buyers of programmatic video? What resources do you have to bring my

team up to speed? • How robust is your partner ecosystem? Can you point me to a list of companies you partner closely with?• What levels of service do you provide?

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The 5 Stages of Campaign ExecutionA successful ad campaign requires a strategic, well-documented plan. Use this checklist as a benchmark as you plan your own campaigns.

1. Establish your KPIs (Key Performance Indicators).Before you get started, determine your KPIs. Which of these are most important to your brand?

2. Establish success.How will you know that your campaign is successful?

Set goals. For each KPI you selected above, define the number (or range) you’ll need to hit. Once you’ve gotten comfortable with your platform, you’ll be able to set goals based on metrics from previous campaigns. Determine frequency. You’ll also need to decide how often you’ll review performance. Depending on the length of your campaign and the KPIs you care about most, you may want to establish quarterly, weekly, and even daily reviews. As you plan your campaigns, what goals will be associated with each period of time?

3. Set Campaign CriteriaOnce you’ve defined your KPIs, your metrics, and your review process, it’s time to set criteria for your first campaign. Start with the basics:

Target audience — what are the demographics and behaviors you’re looking for?Site and/or app selection — consider screens (i.e. desktop, mobile, tablet), content categories, content length, ad placement on page, type of traffic, and traffic volume. What are your requirements? Pricing — what is the most you would pay for inventory to achieve your desired result and/or return on investment (i.e. your maximum bid)?Length of campaign — how long will your campaign run?Frequency capping — how many times will each consumer be shown an ad, or shown multiple ads within a campaign?

4. TestYour platform should allow you continually monitor and adjust your goals. Here are some factors to test and optimize:

Audience. Test different audience targets — which targets lead to the best sales lift, brand lift, or other key results? Inventory. Try multiple publishers and content — how does your audience react to different placements?Time of day/Day of week. Test running your ads throughout the day — when are your ads most effective?Frequency capping. Adjust your capping — how often can you show an ad, or multiple ads within a campaign, before performance drops?Creative. While it’s unusual, some video advertisers test variations of a single ad — which drives the best results?

5. EvaluationHow did you campaign measure up against your goals? What worked, and what didn’t?

Audience — did you reach your intended consumers?KPI success — did you hit your desired numbers around conversions, brand lift, etc.?Optimization — which of your test variations were most successful? What will you do differently in your next campaign?

Audience Reach KPIs Served impressions GRP/TRP (Gross Rating Point/ Targeted Rating Point) In-target audience Viewability

Engagement KPIs CTR (Click-Through Rates) Completed views Conversion

Brand Lift KPIs Awareness Attitudes Intent

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ConclusionProgrammatic video ad spend is expected to triple in 2015 — it’s the fastest growing area of programmatic investment in the US.2 If you’re buying video inventory today, you need to understand how programmatic technology works, and how it helps brands grow their businesses.

As we’ve shown in this primer, the transition to programmatic media buying involves significant internal collaboration and alignment. Organizations need to commit time and resources to move up the learning curve, but you don’t need to tackle everything at once. In reading this primer, you’ve already taken the first step.

BrightRoll is committed to helping advertisers and agencies navigate the programmatic waters. To learn more, visit our Solutions for Advertisers page.

2 eMarketer, February 2015, Programmatic to Make Gains in Connected TV, OTT Video

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reports@brightroll.com | brightroll.comUnited States | Europe | CanadaCopyright ©2015 BrightRoll, Inc.

For more case studies, whitepapers and videos about BrightRoll andthe programmatic advertising space, please visit our resources page.

BrightRoll powers digital video advertising for the world’s largest brands, including 87 of the top 100 US advertisers and 18 of the top 20 advertising technology companies. The platform enables advertisers to reach 4 in 5 video viewers online and consistently ranks among the top two video ad platforms in

ads served. As a result, BrightRoll technology collects and analyzes hundreds of billions of data points monthly enabling real-time decisions that drive ROI for advertisers.

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