programmatic best practices · 2018-09-26 · programmatic buying deal types ... impression-data...

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Programmatic Best PracticesEducation, Technology, and Organizational Structure


Nice to meet you!

James HannahDirector of Client ServicesAdobe Advertising Cloud

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WELCOME TO THE ERA OF

DIGITAL EXPERIENCES


The Programmatic Ecosystem

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Canadian RTB Landscape*

6https://iabcanada.com/content/uploads/2017/07/IAB-Canada-Programmatic-Landscape-R-F-July-31-2017.pdf

*IAB Canada Members only


A Comprehensive Layout of the Marketplace

7http://iabcanada.com/content/uploads/files/IABCanada-TheCanadianProgrammaticLandscape.pdf


Confused? Don’t be!

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What does Programmatic mean?

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The Programmatic Ecosystem

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DSP-Centralized buying platform

-Connects buyers to multiple inventory sources and platforms

-Allows holistic campaign management and measurement through 3rd party integrations

SSP-Centralized marketplace to sell impressions

-Provides access to multiple buyers

-Maintains integrity of publisher owned inventory through advertiser control, pricing, and yield management

Ad-Server-Centralized storage center for maintaining and uploading content

-Houses all creative assets and pixels

-Consolidate reporting interface across all publishers

DMP-Centralized data gathering system

-Integrates 1st and 3rd party data

-Analyzes data segments and provides audience insights

-Creates audience segments for targeting on DSPs


Programmatic Advertising in 6 Easy Steps

11https://digiday.com/wp-content/uploads/2016/07/WTF_programmatic-2016-1.pdf


Top Three Buying Aspects DSPs Control

Inventory Targeting Rate Requirements

Each brand has its unique priorities and requirements

Algorithms consult on trade-offs to help deliver on the specific needs of each campaign.


Programmatic Buying Deal Types

Automating the decision-making process of buying media through software.For digital, there are three main programmatic deal types

-Real time, auction-based

-Ability to tap into multiple exchanges and supply sources

-Bids are controlled impression by impression

-Data driven approach

REAL TIME BIDDING (RTB)

-Hybrid between RTB and Guaranteed deal

-One publisher, but inventory is not guaranteed

-Bid often set as a floor price

-Ability to apply data

DIRECT – NON GUARANTEED

-Reserved buy with one publisher

-Fixed rates and inventory

-Negotiated dollar/impression amount guaranteed to deliver

-Little to no data applied

DIRECT – GUARANTEED


Audience Targeting: Activating Different Data Types

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1st Party 2nd Party 3rd PartySecond-party data is bought directly

from the source.

Deals are brokered with a particular publisher, whether through your DMP

or elsewhere, to offer specific data points and audiences built from

registration and consumption data.

Cost structure is agreed upon between both parties in advance.

First-party data is defined as and includes data from behaviors, actions or interests demonstrated across your

websites and media.

Data deemed as most valuable and qualified source of data. Exclusively

available to your brand/org.

Data has no costs unlike 2nd & 3rd

party data.

Third-party data is generated on other platforms and often

aggregated from other websites.

3rd Party data is often modeled, meaning less accurate than 2nd party

data.

Off the shelf pricing.


How Real Time Bidding Works

Ad Server sends actual ad unit to web page, prior to

page loading (<200 milliseconds)


The Modern Marketing DepartmentSetting Up Your Organization & Partners for Programmatic Success!


Modern Marketing Department Requirements

• Transformation cannot happen if the marketing team is not staffed with the right people, from the top to the bottom

• Professional development, training, and culture are also elements of a solid people strategy

People

• Digital transformation requires new, cross-functional processes that remove silos and foster experimentationProcess

• External partners must be able to align to the new organizational structures and collaborative processes

• This can be done by evolving your third-party partners or developing in-house capabilities

Partners17

https://content-na2.emarketer.com/the-modern-marketing-department-2018


What is the Deal with In-Housing?


In-housing Framework Considerations

Discover – What do we need to know when deciding to bring it in-house Scope – the landscape (internal & external) Sources of learning and levels of knowledge That first employee – who will lead? Choosing technology for the scope

Define What will be brought in-house? What will the agency do, what does the brand do? How many staff will be required, how much budget will be required? Timeline

Develop What is going to happen as it starts coming in house - progression

Deliver First campaigns, performance Selling learning in-house & scaling Demonstrating the value

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Discover - Why In-House Media Buying?

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Cost Efficiencies and Transparency

Remove supply chain changes and waste

Data-Driven Marketing

Improve Speed of Operations

Get Ahead of Market Developments

Media is moving towards software based buying models (including TV)

Fit in With Organizational Trends

Rise of Chief Media Officer titles as clients continue to buy more

media


Discover - One Size Does Not Fit All – Questions to Ask Yourself

Your company’s cultural orientation.

How important is digital to your company’s current and future marketing strategy?

Extensiveness and importance of first-party data assets to your company.

Your company’s attitude towards programmatic.


Define - Value Chain Evaluation

CreativeConsultancy

Analytics & Optimization

TacticalPlanning

Strategic Planning

Billing &Reconciliation

Media PartnerSelection

TechnologyPartner Selection

Who’s adding value?

Where do black boxes

exist?

What can be done in-house for cheaper?


Define - Manage and Improve Supply Chain Essential to Success

Video, Display, and Native Media

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Ad Budget 100%

Agency Costs 3 - 10%

Ad Verify1 - 2%

DSP Fee10 - 17%

Managed Services 0 - 20%

SSP Fee20%

Fraud5 - 20%

Viewability40 - 60%

Every $100 spent = $20 in market

20% in Market


Develop - Build Operational In-House Models in Three Phases

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2. Hybrid 3. Full1. Start-Up

Leverage external resources to scale (managed/self-serve

hybrid)

Test phase, rely heavily on managed service

Fully operational team


Develop - Phase One – Start-Up Model

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TEAM STRUCTURE

DESCRIPTION

SUCCESS METRICS

• Start-up team is trained to manage standard KPIs (straight-forward campaign

execution)

• Start with smaller test budgets, most campaigns managed by the DSP/Agency

• Hands-on-keyboard buys with DSP/Agency support

• Drive standard campaign KPIs

• Leverages successes and results to sell through internally

• Ready to move to phase 2 and scale

Tech Platform Manager(DSP/Ad Tracking/Metrics)

Strategy Manager


Develop - Phase Two – Hybrid Model

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TEAM STRUCTURE

DESCRIPTION

SUCCESS METRICS

• Team starts to take on larger budgets and more complex campaigns

• Some buying still outsourced (managed to the DSP/Agency)

• Confidently drive both standard and complex campaigns KPIs

• Internal people/process refined to handle scale

• Ready to move to phase 3 and scale

Tech Platform Manager

(DSP/Ad Tracking/Metrics

Strategy Manager


Develop - Phase Three – Full Support

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TEAM STRUCTURE

NOTES• Assume a maximum 10% staffing cost

• Fixed staffing cost decreases as budget percentage and size increase

• Full support phase should align with ~$10 million in spend

Team Manager

Ad Operations Planner Analyst Trader(s)


Deliver - Establishing ROI from Your In-House Investment

• Media margin• Datacosts• Techfees• Site-level

transparency/ performance

IDENTIFY & REMOVE

UNKNOWNS

• Fraudulentinventory

• Viewability

QUANTIFY KNOWNS

• Disclosed margin• Transparentcosts/

performance• Disclosedtechfees• Removal offraudulent

inventory/ impressions• Viewability rate• Averageplayer size

CALCULATE ROI• Marginsavings• Datacontrol• 1st party integrations• Technology fee savings• Calculate only viewable

impressions• Incorporate performance

improvements/ effectonsales


Key In-Housing Take-Aways

• Start scrappy, prove success… most important, START!

• Scale is dependent on campaign budgets

• Leverage DSP/Agency managed services to scale spend

• Keep all Partners in the loop and communication high (internally & externally)

• Be clear with KPIs that you optimize towards

• Sell in as data driven marketing, not just savings

• Don’t silo programmatic from other media

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Good Luck & Keep the Conversation Going!

James HannahDirector of Client ServicesAdobe Advertising [email protected]

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programmatic best practices · 2018-09-26 · programmatic buying deal types ... impression-data...

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