Programmatic Trading: What is it & why should you care?

Download Programmatic Trading: What is it & why should you care?

Post on 14-Jun-2015




1 download

Embed Size (px)


Programmatic Trading is one of the hottest buzzwords in todays advertising market, and with good reason. But what is it after all and, most importantly, why should publishers care? For the answers, check out this concise keynote, which was delivered by Elias Gagas, Managing Director of TailWind,at the ICMA Marketplace Monetisation Strategies conference that took place in Athens, Greece on October 22-24, 2014.


<ul><li> 1. Programmatic TradingWhat is it? Why should you care?</li></ul> <p> 2. TVTraditionalMedia 3. DigitalMedia 4. Samemethod ofAdvertisingtrading 5. We trade in BULKeven though we use the onlyreal time two way connectedmediumwhich can providepersonalized interaction! 6. Lets start with a definitionProgrammatic buying is the process of executing mediabuys in an automated fashion through digital platforms suchas: exchanges, trading desks, demand-side platforms (DSPs)and supply-side platforms (SSPs).This method replaces the traditional use of manual RFPs[Requests For Proposal], negotiations and insertion orders topurchase digital media.(Business Insider, September 2012) 7. The Core Revolution:Automationof media buying and selling(through technology) 8. The protocol for automation is calledRTB = Real Time BiddingAn online advertising technology that enablesyou to trade display advertising inventory- impression-by-impression- in real-time- on an auction basis&amp; DataAffecting the valuation of each impression 9. The underlying evolutionFrom Media PlanningAttempt to reach the right person with theright message at the right time- Using historical information- Buying in bulk- Post Campaign EvaluationTo Audience PlanningEvaluate each impression in real timeagainst the desired audience profile- Using real time information- Post impression evaluation &amp; feedback 10. Source: IAB Spain 2014 11. One to OneNon RTB Direct DealsAutomates Traditional Direct SalesLonger CommitmentsAudience BuyingFew to FewKnown as Private MarketplaceNon RTB &amp; RTBBoth parties know each otherExtension of Traditional Direct SalesAutomated TradingAudience BuyingMany to ManyKnown as Open Ad ExchangeRTBBuyer Parties dont necessarily know each otherSellerAutomated TradingAudience BuyingMore than an open bidding exchange 12. Final thoughts The Programmatic (R)evolution is already here &amp; you cantafford to let it pass by! Its technology disrupting our traditional business models as hashappened before in other domains (e.g. airlines, hotels etc.) Its not making humans redundant, its automating trivial tasksfreeing up more time for creativity Leveraging Data is core to this new trading paradigm Dont reinvent the wheel use it to build value Be an active player! 13. Elias GagasManaging </p>