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Programmatic as a

Means to Meeting

your Marketing Goals

Darragh Daunt

Marketplace Development

Google

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Google Marketplace Development team

connects brand advertisers with premium

publishers through programmatic ad trading

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WHAT is programmatic media trading ?

WHY do we need it?

HOW is it working in practice?

Questions

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What is Programmatic

Media Trading? What does programmatic trading mean?

How does it differ to current media trading? How big is this market?

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Fax Machines Cutting & Pasting

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).

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The programmatic vision of media buying....

Media plan in Excel

Phoning media owners for avails

Approval from clients

Negotiations and buying

Collect creative specs

Sign & fax IO’s

Upload to iDESK / Adazzle

Trafficking & send tags

Pulling reports / cutting & pasting

Media plan in DSP

Check Exchange or use RTB

No change here!

Private Auction / First Look / RTB

Dynamic / One size fits most

Eradicated

Same but fewer billing points

Generated by the DSP

Live dashboard

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Programmatic trading has moved from

concept to reality

RTB Impressions

on AdX 2010-2012

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20% of Display spending projected to be

delivered programmatically in 2013

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Why do we need Programmatic

Media Trading? What is the value proposition? How is it being received in the market? What’s

in it for publishers?

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Targeting and operational efficiency benefits

make programmatic attractive to marketers

Audience Buying Real-time decision-making for every impression.

Consolidation Consolidation of buying points and channels.

Data Targeting users with 1st & 3rd party data.

Efficiency Less time spent faxing and trafficking. Greater ROI from

universal frequency capping and centralised re-targeting.

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Kelloggs On ROI:

We’ve seen tremendous results when using programmatic buying. Depending on the brand, the digital media ROIs have increased as much as six times, according to our 3rd party market mix models.

Kelloggs On efficiency:

Bottom line, programmatic buying is more efficient, more effective and more transparent than the traditional digital media buying model. It’s more efficient because it’s automated and eliminates expensive overhead.

Bob Arnold, Associate Director of Digital Strategy, Kelloggs, Nov ‘12

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Buyer feedback has been positive

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For publishers, data-infused programmatic

buying on quality inventory will grow CPMs

Forrester: Data, program buying to support $28 Billion for

Display Media in 2017, MediaPost Oct, 10th, 2012

Emerging ad types and pricing models will get a bigger share of budgets by

2017, according to the report. Program media, fueled by audience targeting,

will offer the best performance. As marketers compete for similar audience

segments and number of bids increase, average CPM prices of exchange

impressions will rise from $3.17 to $6.64 by 2017.

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How does Programmatic Media

Trading work in practice? What are private marketplaces? What programmatic strategies are buyers and

sellers using?

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Programmatic buying brings with it new,

safer ways of connecting buyers & sellers

Ad Networks

ad networks aggregated

inventory and sold it to

advertisers. helped

publishers by selling

inventory they could not

sell themselves

Ad Exchanges

a real-time

marketplace with a

large pool of liquid

inventory not sold in

direct buys

Reservation Buying

ads sold via direct

transactions between

advertisers/agencies and

publishers

1990s

today

Private

Exchanges

Exclusive advertiser-to-

publisher inventory

relationships for

programmatic

purchasing in brand

safe environments

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Open Auction

Private Marketplaces offer preferential

access in return for higher CPMs

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Preferred Deals Private Auctions

Private Marketplace Options

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First Tier:

Preferred Deals

Second Tier:

Private Auctions

Third Tier:

Open Auction

Fixed-price, Pre-auction

deal with one buyer.

2nd price auction with

select group of buyers.

Variable CPM floors set

per buyer.

2nd price auction with

all buyers, minus

those blocked.

Publisher Fixed Price

Deal One Buyer

Publisher

Private

Auction Select Buyers

Publisher Open

Auction All Buyers

How the Private Marketplace options work

together with the open auction

Description

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First look at user is possible where ad server

and ad platform integration exists

Direct Sales

Open Auction

Preferred Deal

Private Auction

Direct Sales

Open Auction

Preferred Deal

Private Auction

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Deliver a targeted brand message to that

user within the creative

• Headline – weather based

• Product images – weather based

• Product copy – product based

• Local Lowe’s – IP zip code based

• Call-To-Action – User interest based

• Footer image – weather based

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Buying and selling is easy through the

Marketplace UI

Solicit offers, negotiate, and execute, all without sending an email or picking up

the phone.

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Several common publisher strategies on

Private Marketplaces (PMPs) are emerging

1) Develop PMP relationships with existing direct advertiser clients to

provide more ways to help them meet marketing goals

2) Use a PMP as a channel to engage with new advertisers where no

relationship has existed previously

3) Give existing programmatic buyers in the open auction preferential

access in return for higher CPMs

4) Look at programmatic PMPs as way to automate some parts of an

existing a buyer relationship

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Questions?