programmatic at tmk

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COME SEE: PRIVATE MARKETPLACES February 24, 2015

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Page 1: Programmatic at TMK

COME SEE: PRIVATE MARKETPL ACES

F e b r u a r y 2 4 , 2 0 1 5

Page 2: Programmatic at TMK

P R O G R A M M AT I C AT T M K

Page 3: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

Started with Programmatic centralized and out-sourced to our partner trading desk

Performance play; however, TMK desired deeper insights and transparency

Introduction of technology made Programmatic buying more accessible Self-service tools empower advertisers to take control of programmatic

Moving Programmatic in-house decentralized buys and provided flexibility Transparency into costs and performance; Private Marketplace deals

could be negotiated as part of overall digital buy

3  

OUR PROGRAMMATIC STORY �

Page 4: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  4  

OUR PROGRAMMATIC TEAM PHILOSOPHY �

The majority of media will be bought programmatically through self-service platforms, which makes media buying more transparent, flexible, and efficient. This technology requires a new type of media professional. With insight into this evolution, The Media Kitchen has developed the Programmatic Media Buying Team. The Programmatic Media Team oversees 3 major areas: •  Programmatic RTB/PMP (includes banners, video, and mobile) •  Paid Search (e.g., Google and Bing) •  Paid Social Media (e.g., Facebook, Twitter, LinkedIn)

Page 5: Programmatic at TMK

P R O G R A M M AT I C O V E RV I E W

Page 6: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015 2016 2017

Programmatic Non-Programmatic

Source:  eMarketer:  “US  Display  Ad  Spending  Share,  by  Type”  2013  hFp://digiday.com/plaJorms/global-­‐outlook-­‐programmaLc-­‐adverLsing-­‐5-­‐charts/      

6  

PROGRAMMATIC FLIPPING THE MARKET �

The Programmatic ad market will grow from $12 billion in 2013 to more than $32 billion in 2017

Page 7: Programmatic at TMK

Source:  ANA  

PROGRAMMATIC �

7  

2014 WORD OF THE YEAR �

Page 8: Programmatic at TMK

RTB GOES MAINSTREAM

1994� 1996� 2005� 2007� 2011�2000�

DSPs LAUNCH

AD EXCHANGES LAUNCH

ADWORDS LAUNCH

AD NETWORKS LAUNCH

2014�

PRIVATE MARKETPLACES

©  The  Media  Kitchen  2014  all  rights  reserved  

DIGITAL ADS LAUNCH

8  

DIGITAL A D R E V O L U T I O N �

Page 9: Programmatic at TMK

E V O L U T I O N O F P R I VAT E M A R K E T P L A C E S

Page 10: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

ADVERTISER: •  Buy as much quality

inventory as possible at low cost •  Negotiate with Publishers to achieve desired plan

PUBLISHER: •  Sell as much inventory as possible at high cost •  Create value for inventory

through content and scarcity

10  

ADVERTISER AND PUBLISHER RELATIONSHIP �

Page 11: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

Thus, significant amounts of unsold inventory jeopardized the inventory “scarcity” tenant that Publishers held dear

Unsold Inventory

Sold Inventory

Web

Tra

ffic

11  

AS THE WEB EXPANDED �

It created an increased amount of site traffic, while advertiser growth did not keep pace

Page 12: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  12  

UNSOLD INVENTORY = OPPORTUNITY �

The growth of the web left Publishers with unsold inventory. Programmatic offered Publishers an opportunity

Page 13: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

Advertiser

Publisher

13  

PROGRAMMATIC INITIALLY FAVORED ADVERTISERS �

Page 14: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

Through this model, Publishers lose direct contact with advertisers and agencies

Advertiser Publisher

Second Price Auction

14  

SYMBIOSIS DISRUPTED �

Inventory sold across the exchanges at variable costs and to unknown advertisers

Page 15: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

Advertiser Publisher

15  

PUBLISHERS CONTROL TRANSPARENCY �

However, knowledge about the specific inventory won is often obfuscated

Page 16: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

56%

17%

23% Of Publisher impressions

are not viewable

Of Programmatic display ads are viewed by bots

Of online video ads are viewed by bots

Sources:  hFp://www.bloomberg.com/news/2014-­‐12-­‐09/robots-­‐not-­‐humans-­‐fake-­‐23-­‐of-­‐web-­‐video-­‐ad-­‐views-­‐study-­‐finds.html  ANA  (hFp://blogs.wsj.com/cmo/2014/12/09/5-­‐things-­‐marketers-­‐need-­‐to-­‐know-­‐about-­‐ad-­‐fraud/)     16  

MONETIZATION OF INVENTORY �

The open exchange encouraged fraudulent traffic, and poor placement viewability as web-crawlers and bots attempted to

exploit advertising to generate publisher revenue

Page 17: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

Private Marketplaces put the responsibility for inventory quality on the Publisher, allowing them to lock in advertiser

dollars and a pre-agreed price

QUALITY

17  

PRIVATE MARKETPLACE AS A STABLIZING FORCE �

Page 18: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  18  

EVOLUTION OF PRIVATE MARKETPLACES �

A Private Marketplace is a customized, invitation-only marketplace where Publishers make their inventory

and audiences available to a select group of buyers.

Unlike a direct buy, which can be labor intensive for both Publishers and Advertisers, buyers in a PMP use programmatic-media

buying controls to purchase from Publishers.

DefiniLon  via  RockeJuel  hFp://rockeJuel.com/webinars/what-­‐is-­‐a-­‐private-­‐marketplace  

Page 19: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  19  

WATERFALL �

Publisher Direct �

Automated Guarantee �

Preferred Deal�

Private Auction�

Open Exchange �

Page 20: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

WIN FOR ADVERTISER: •  Choose inventory with specific

partners •  Control of serving parameters and

audience (time of day, day of week, first and third party audience data, etc.)

•  Decrease issues pertaining to viewability and fraud

WIN FOR PUBLISHER: •  Can sell more inventory (fill

rates) at desired or preferred CPMs

•  Fill inventory with preferred Advertisers rather than just the highest bidder

20  

PRIVATE MARKETPLACES ARE A WIN-WIN �

Page 21: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

Preferred Deals

Private Auction

Pricing # of Buyers Description Publishers

One Publisher

Fixed Price

One Advertiser

Negotiated, fixed price; completed through

self-serve tool

2nd price auction with select group of buyers; auction with set floor;

through publisher-owned DSP 2nd Price Auction w/

Floors

One Publisher

Select Advertisers

21  

TYPES OF PRIVATE MARKETPLACES �

Page 22: Programmatic at TMK

RFP PROCESS

Page 23: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

Crafting Proposal�

Negotiating Plan�

Execution of Buy�

23  

RFP PROCESS: OVERVIEW �

Page 24: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

Media team develops RFP

Media team issues RFP

Publisher submits proposal

Should include information such as… •  Are Programmatic and Publisher Direct considered one digital plan? •  Can Programmatic and Publisher Direct inventory overlap? •  Is there specific inventory desired? •  Are there inventory quality standards (viewability and fraud)? •  Is there specific targeting required (audience, geo, etc.)? •  What Programmatic tactic is preferred (PMP or Private Auction)?

24  

RFP PROCESS: CRAFTING A PROPOSAL �

Page 25: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  25  

RFP PROCESS: CRAFTING A PROPOSAL �

For Publisher: •  Send RFP and any additional documentation explaining campaign (i.e. excel doc with specific proposal format)

Media team develops RFP

Media team issues RFP

Publisher submits proposal

Page 26: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  26  

Placement Name Unit Sizes Start Date End Date Cost Structure

Net/Gross Rate

Planned Impressions

Planned Cost

Site – Preferred Deal PMP_728x90 728x90 1/1/15 4/30/15 CPM $8.00 TBD

$100,000

Site – Preferred Deal PMP_300x250 300x250 1/1/15 4/30/15 CPM $8.00 TBD

Site – Preferred Deal PMP_300X600 300x600 1/1/15 4/30/15 CPM $8.00 TBD

Site – Publisher Direct_300x250 300x250 1/1/15 4/30/15 CPM $16.00 TBD

Site - Publisher Direct_728x90 728x90 1/1/15 4/30/15 CPM $16.00 TBD

 �  �  �  �  � - � - �$100,000

RFP PROCESS: CRAFTING A PROPOSAL �

Media team develops RFP

Media team issues RFP

Publisher submits proposal

Page 27: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

Media team negotiates RFP terms with Publisher

Media team and Publishers discuss details of Programmatic prior to paperwork

Media team provides IO and T&Cs based upon agreed plan

27  

RFP PROCESS: NEGOTIATING PLAN �

Terms of Negotiation: •  Price floor and/or fixed CPM •  Packages and inventory •  Spend flexibility •  Any viewability and/or fraud percentages to be considered

Page 28: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  28  

RFP PROCESS: NEGOTIATING PLAN �

Details Needed: •  TMK Team DSP •  Publisher SSP •  Any site pixeling opportunities for Publisher •  Reporting options

Media team negotiates RFP terms with Publisher

Media team and Publishers discuss details of Programmatic prior to paperwork

Media team provides IO and T&Cs based upon agreed plan

Page 29: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  29  

RFP PROCESS: NEGOTIATING PLAN �

Signed document: •  Holds Publisher accountable for inventory type, quality and floor pricing •  Holds Advertiser accountable for investment level required to achieve rates

Media team negotiates RFP terms with Publisher

Media team and Publishers discuss details of Programmatic prior to paperwork

Media team provides IO and T&Cs based upon agreed plan

Page 30: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

Media team to inform TMK PMG of upcoming campaign

Publisher works with SSP in setting up inventory and Deal IDs

Post-launch maintenance and communication

30  

RFP PROCESS: EXECUTION OF BUY �

For TMK PMG team: •  Media team to complete TMK PMP In-Take Doc and share with TMK PMG team •  Once TMK PMG team has a chance to review, schedule internal meeting to discuss campaign next steps

Page 31: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

Media team to inform TMK PMG of upcoming campaigns

Publisher works with SSP in setting up inventory and Deal IDs

Post-launch maintenance and communication

31  

RFP PROCESS: EXECUTION OF BUY �

Deal IDs are a string of characters that pass the planned inventory between the DSP and SSP •  Without Deal IDs, publishers and platforms cannot always allocate client spend more efficiently or reserve inventory

Page 32: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  32  

RFP PROCESS: EXECUTION OF BUY �

Post-Launch Maintenance (Media and Programmatic teams) •  Are Deal IDs receiving adequate amount of impression volume? •  Do CPMs need to be changed based on performance or delivery? •  Is the program performing according to prearranged quality standards and KPIs?

Media team to inform TMK PMG of upcoming campaigns

Publisher works with SSP in setting up inventory and Deal IDs

Post-launch maintenance and communication

Page 33: Programmatic at TMK

MANAGING DEALS

Page 34: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

Private Auction

34  

PRIVATE DEAL VS. PRIVATE AUCTION �

Preferred Deal

Page 35: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  

Bid Optimizations can be implemented based on: •  Site Category •  Time of Day •  Day of Week •  Browser (and Browser version) •  Frequency •  Creative Size •  Device Type •  Recency

35  

MANAGING DEALS �

Page 36: Programmatic at TMK

©  The  Media  Kitchen  2014  all  rights  reserved  36  

OPTIMIZATION EXAMPLES �

Vanguard FAS Private Auction

Vanguard Retail Preferred Deals

Page 37: Programmatic at TMK

THANK YOU!