Programmatic as a means to meeting your marketing goals by Darragh Daunt for Incisive Create

1. Programmatic as a
Means to Meeting
your Marketing Goals
Darragh Daunt
Marketplace Development
Google
Google confidential

2. Google Marketplace Development team
connects brand advertisers with premium
publishers through programmatic ad trading
Google confidential

3. 1 WHAT is programmatic media trading ?
2 WHY do we need it?
3 HOW is it working in practice?
4 Questions
Google confidential

4. 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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5. 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).
Fax Machines Cutting & Pasting
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6. The programmatic vision of media buying....
Media plan in Excel Media plan in DSP
Phoning media owners for avails Check Exchange or use RTB
Approval from clients No change here!
Negotiations and buying Private Auction / First Look / RTB
Collect creative specs Dynamic / One size fits most
Sign & fax IO’s Eradicated
Upload to iDESK / Adazzle Same but fewer billing points
Trafficking & send tags Generated by the DSP
Pulling reports / cutting & pasting Live dashboard
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7. Programmatic trading has moved from
concept to reality
RTB
Impressions
on AdX 2010-
2012
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8. 20% of Display spending projected to be
delivered programmatically in 2013
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9. 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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10. Targeting and operational efficiency benefits
make programmatic attractive to marketers
Audience Buying
A+B Real-time decision-making for every impression.
Consolidation
C Consolidation of buying points and channels.
Data
D Targeting users with 1st & 3rd party data.
Efficiency
E Less time spent faxing and trafficking. Greater ROI from
universal frequency capping and centralised re-targeting.
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11. Buyer feedback has been positive
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
Google Confidential and Proprietary 11

12. For publishers, data-infused programmatic
buying on quality inventory will grow CPMs
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.
Forrester: Data, program buying to support $28 Billion for
Display Media in 2017, MediaPost Oct, 10th, 2012
Google confidential

13. How does Programmatic Media
Trading work in practice?
What are private marketplaces? What programmatic strategies are buyers and
sellers using?
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14. Programmatic buying brings with it new,
safer ways of connecting buyers & sellers
Reservation Buying
ads sold via direct Ad Networks
transactions between ad networks aggregated
advertisers/agencies and inventory and sold it to Ad Exchanges
publishers advertisers. helped a real-time Private
publishers by selling marketplace with a Exchanges
inventory they could not large pool of liquid Exclusive advertiser-to-
sell themselves inventory not sold in publisher inventory
direct buys relationships for
programmatic
1990s purchasing in brand
safe environments
today
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15. Private Marketplaces offer preferential
access in return for higher CPMs
Open Auction Private Auctions Preferred Deals
Private Marketplace Options
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5

16. How the Private Marketplace options work
together with the open auction
Fixed Price Description
Publisher Deal One Buyer
Fixed-price, Pre-auction
deal with one buyer.
First Tier:
Preferred Deals
Private
Publisher Auction Select Buyers 2nd price auction with
select group of buyers.
Second Tier: Variable CPM floors set
Private Auctions per buyer.
Open All Buyers
Publisher 2nd price auction with
Auction
all buyers, minus
Third Tier:
those blocked.
Open Auction
Google confidential
Google confidential

17. First look at user is possible where ad server
and ad platform integration exists
Preferred Deal
Direct Sales Direct Sales Private Auction
Preferred Deal
Private Auction
Open Auction Open Auction
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18. Deliver a targeted brand message to that
user within the creative
• Headline –
weather based
• Product images –
weather based
• Product copy –
product based
• Footer image –
weather based
• Local Lowe’s –
IP zip code based
• Call-To-Action –
User interest based
Google confidential

19. 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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20. 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
Google confidential

21. Questions?
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