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Evolution of programmatic

  1. Evolution of Programmatic
  2. History of Programmatic What is Programmatic Buying Why Programmatic Why RTB How Programmatic is different from an Ad Network How Programmatic works Programmatic Growth in India
  3. History of Programmatic At the beginning Ad buying was very simple, advertiser & publisher use to negotiate the CPM to deliver the Ad to the audience for a given period of time.
  4. Increase in the Publisher & Advertiser, the above said process became complex. More the advertisers & publishers, it became difficult for both the parties to attain reach.
  5. • The above said, situation gave an opportunity for the Ad networks to emerge. Ad Network Ad Networks gathers inventory from various publisher and sell it at one point. Ad Network sells the publisher inventory in packages to the advertiser. Hence the Ad Network simplified the buying and selling process.Publisher Publisher
  6. Advantages and Disadvantages of Ad Network • Disadvantages • Advertiser had very less transparency and precision with the audience and publisher. • Publisher were left with large number of remnant (Unsold) inventory. • • Advantages • Helped the advertiser in buying large inventory from one place for a lesser price. • Publisher were now having a place to sell their inventory on bulk. • Hence, still some room to improvise the process of buying and selling the inventory, which would give the precision with the audience. Publisher can sell their inventory smartly, not in packages.
  7. What now! What do we want ? • Centralization of Inventory • Minimize Overhead cost • Maximum reach at lower costs • Smart targeting • Plenty of data
  8. Introduction to Ad Exchange Ad Exchange is platform, where various publishers sells their inventory, which enables the advertisers to access these inventory at one place. In short it’s a digital Marketplace where the buying and selling of ad slots takes place. Ad exchanges sells inventory of Display, Video , Mobile inventory. Basically, Ad exchange is a pool where is the publisher push their inventory, and advertisers buys those inventory via DSP (Demand side platform).
  9. With Ad exchanges in place now we have: • Centralized the inventory. • Minimize the overhead cost by cutting down the intermediate commissions. • Maximized the reach. • Smarter targeting via DSP and SSP. • Capturing the audience data, which could be used later for re- marketing.
  10. Though the process is easily said, it needed a technology a platform to manage multiple exchanges and hit the right audience at same time. Which means we needed a robust technology which would help the advertiser reach their right audience across various exchanges, buying right inventory which is aligned to the audience, to whom they want to show their ad. On the other hand a technology was needed by the publisher to maximize their profitability. This need empowered the programmatic buying platform, such as DSP and SSP. Which facilitates the programmatic way of buying inventory.
  11. What makes the Programmatic different from Ad networks ? Yeah! We might have this question in mind, Why programmatic, when we have ad networks which does the same thing. Buying and selling of inventory in one place and many more. The difference is Ad networks prime motto is to sell inventory. However, Programmatic mainly focuses on AUDIENCE and provide more relevant and robust data for smarter decisions. Programmatic media buying went mainstream in 2011, since then we have seen a drastic increase in the number of advertiser adopting programmatic buying. According to the emarketer, spends in The US Display marketing was increased to 80% by 2017.
  12. How Programmatic work ? • Now, we might have the above questions in mind. • Is it RTB the only way of programmatic buying ? Is it just the bidding for inventory ? is it the same as search ? Is it similar to Adwords ? • Programmatic has changed the entire eco system of digital advertising, However, there’s still confusion around it. What actually is programmatic.
  13. There are many new data points and targeting techniques available to understand and target audiences. This makes it possible for brands to be much more relevant, reduce ad wastage and carry out one-to-one marketing, at scale. Location Devices Demographic Behavioral Website Viewability Site retargeting Frequency
  14. RTB Work Flow Highest bidder wins the auction and the ad slot. This process takes place within the fractions of second, yes! Less then time taken to blink the eyes. RTB is not the only way of programmatic buying, it’s a part of programmatic buying. Abbreviation of RTB is real time bidding, which means we are purchasing the Ad slots in a real time auction.
  15. Private & Preferred Deal • Private & Preferred deals, in this type of buying the publisher has the privilege to restrict their inventory for a particular group of advertiser, which is known as Private auction/deal. If inventory is made available to a particularly one advertiser, it’s a preferred auction/deal.
  16. Programmatic Guaranteed • We also have Programmatic Guaranteed buy, which is similar to the traditional direct buy/sale of inventory, however, it’s been automated, all thanks to the technology. Indirect buys the RFP, IO and trafficking is automated. • Once we have the deal pushed to DSP from SSP, we just have to select the advertiser and the creatives and we are done. Usually, the participants in the direct buy is just one publisher and advertiser.
  17. Why Programmatic ? Before Programmatic, digital Ads buying and selling had human intervention, such as Buyers and sales persons. Who can be unreliable and indeed increased the overhead cost. Programmatic advertising technology, eliminated the human interference where ever possible and made the inventory buying and selling process more efficient, which also minimized the cost.
  18. Programmatic Growth in India Digital is growing rapidly in India, at a rate of 30% every year, of which major part of spend is done via Programmatic. It is projected that about 800Cr would be spend via programmatic in 2017. At a growth of 30% India has made it to the top list of programmatic buying countries, and major part of programmatic buying is traded via open auction globally.