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Introducing…

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Programmatic advertising means different things to different people.

Involves a computer.

Automated decision making.

Impression-by-impression.

Real-time bidding.

Re-targeting.

Lookalike audiences.

Automated, progressive

optimisation.

So

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It’s the iterative process of using digital ad inventory and audience data to get the right content, to the right person, in the right place, at the right time.

Campaign goals Direct response, Brand awareness

Inventory Categories / Publishers

Placements Market value

Data Demographic

Psychographic Behavioural

1 impression 1 person

1 impression 1 person

1 impression 1 person

1 impression 1 person

1 impression 1 person

Performance insights Audience characteristics, channels, messages, formats, placements

Lear

ning

loop

Lear

ning

loop

Real-time bidding Based on perceived value of consumer, advertiser places a bid

Well

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Ad Networks

Ad Exchanges

Demand Side Platforms (DSPs)

Supply Side Platforms (SSPs)

Data Providers

Data Exchanges

Used by publishers to make their online ad inventory available to Networks, Exchanges and DSPs for purchase.

Collate and sell data that can be used by Advertisers to build out specific audiences for campaigns.

Marketplaces where advertisers are able to bid on and acquire 3rd party data from data roviders.

Help advertisers to run display campaigns across many different Publisher and Ad Exchange inventories.

Online auction marketplaces that enable consolidated buying and selling of media inventory from across Ad Networks and DSPs.

Licensed or managed platforms that enable advertisers to bid on and buy display media and audience data across multiple suppliers.

Let’s meet the

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Data is at the heart of the programmatic process. Millions of different data points can be evaluated in real-time to optimise campaign performance and deliver efficiencies.

1st party 3rd party

This data is collected by the advertiser and can include: • website visits and actions • customer email databases • CRM databases • e-commerce / transactions

This is most often used for re-marketing and also to build lookalike audiences by working with a 3rd party data provider.

This data is purchased from data providers like website publishers, database companies and e-commerce sites. It can include: • demographics - gender, income, education • psychographics - interests, attitudes • behavioural – recent searches / purchases This is used to build ‘cookie pools’ that can then be used in targeting people with characteristics suggesting likely conversion.

Show me

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When a browser starts to display a webpage, it sends out a call for an ad. In the amount of time it takes to load the page, data relating to the publisher, ad placement, market value and anonymous characteristics of the person viewing the page are shared with prospective advertisers. An optimum bid is then calculated for each advertiser based on the perceived value of showing an ad to that particular person, in that particular context. The winning bid is selected and the corresponding creative is sent through and displayed on the page. Finally the browser sends confirmation that the ad was viewed. This all happens in a fraction of a second!

It’s quick,

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Bad cookies

You can’t always trust cookies. Deletion means a campaign could over deliver on frequency. Shared computers mean they might not link to a specific user.

Beware the fold

.comScore estimate that 46% of ad impressions are in view, with the figure dropping to 31% on Ad Networks and Exchanges. View metrics can therefore be over-reported.

Verification It’s estimated that approximately 30% of ads don’t appear where they are supposed to – e.g. on inappropriate sites, incorrect placements, next to competitor ads. Real-time monitoring means these can be remedied.

Privacy The European Digital Advertising Alliance provide guidance on disclosure of collection and use of data for Online Behavioural Advertising. A link to opt-out sites should be made available to consumers.

Brand safe Brand safe segments are available which reduce the risk of potentially non-compliant campaign activity. However, these can command premium rates.

Integration

With the potential for so many different service providers to be involved in the process, it’s important to make sure that the partners you choose are compatible.

The disclaimer...

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Are you learning from your display campaigns and increasing efficiency and ROAS with each new media buy? Are you putting your own data to work to increase relevant reach and improve ad performance? Do your customers understand the part they play in your online behavioural advertising efforts? Time to get with the program.

So, what’s

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Thanks. Find other decks like this one at www.slideshare.com/headstream You can get more of our content at www.headstream.com/content/ or you can find out more about us at www.headstream.com Alex Barfield alex.barfield@headstream.com 023 8082 8500 Sources: Mapping the Display Landscape: A Fundamental Guide to Data, Targeting & the Future of Display – Netmining 10 Questions About Programmatic Buying – Rocketfuel The Programmatic Primer – Ted McConnell / Warc