Deep Dive on Programmatic for Publishers (Digiday WTF Programmatic for Publishers - 4/30/15)
1. For
Context,
A
Li.le
About
Prohaska
Consul7ng
• “Programma7c
Help
For
All”
• Publishers, Ad Tech, Agencies, Brands, Industry, Investors
• 60+ clients in the last year+
• 30+ different ad tech vendor reviews last 3 years
• Current
ac7ve
freelance
team
of
28
in
7
ci7es
• Sales, Marketing, Operations, Biz Dev, Analytics, Tech Dev
• Ma.
Prohaska,
CEO
&
Principal
• In digital advertising since ‘94
• Former Programmatic Advertising Dir. @ New York Times
● Closed more programmatic direct deals than any other
publisher in the world during 10 months there
2. Most
U.S.
Pubs
Are
Now
Beyond
This
Reac7on
Source:
AMC,
Mad
Men,
2014
4. What Benefits Come From Programmatic?
Efficiency
Lower
CPMs
Speed
Audience
Targe7ng
5. 4 Programmatic Transaction Types
Type of
Inventory
(Reserved,
Unreserved)
Pricing
(Fixed,
Auction)
Participation
(One Seller-One
Buyer,
One Seller-Few
Buyers,
One Seller-All
Buyers)
Other Terms
Used in Market
Other
Considerations
Automated
Guaranteed
Reserved Fixed One-One Programmatic guaranteed
Programmatic premium
Programmatic direct
Programmatic reserved
• Prioritization in
the ad server
• Deal ID
• Data usage
• Transparency to
buyer
• Price floors
Unreserved
Fixed Rate
Unreserved Fixed One-One Preferred deals
Private access
First right of refusal
Invitation-
Only Auction
Unreserved Auction One-Few Private marketplace
Private auction
Closed auction
Private access
Open Auction Unreserved Auction One-All Real-time bidding (RTB)
Open exchange
Open marketplace
www.iab.net/programmatic
Trend
Line
6. Open vs. Private Marketplaces: Retail Analogy
Open Private
www.iab.net/programmatic
The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open
the file again. If the red x still appears, you may have to delete the image and then insert it again.
The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the
file again. If the red x still appears, you may have to delete the image and then insert it again.
7. Programmatic Team Culture vs. Strategy
• Spectrum of sales talent: lean-in vs. fear/head-in-sand
• Similar to digital SME sitting down the hall
• Operations often “driving the bus,” not sales
• Salespeople are spending more time on
creative, strategic, proactive; not losing their jobs.
• As with Brands & Agencies should be considered part
of an overall strategy for optimizing revenue.
8. • 1: Pipes: Programmatic born from the AdOps team, implementation & set up
• 2: Education: Separate team built to drive programmatic conversations
• 3: Consultative: Team/individual leveraged as SME to co-sell & help drive revenue
• Stage 4 happening now: Full Sales & Ops integration
• New York Times only pub in world then doing Stage 4; now 15+ publishers in U.S.
Staged Approach to Programmatic Selling
From Nov. ‘13 - www.iab.net/programmatic
9. Holding Company/Trade Desk Mapping
(for the most part, as of today ;-)
Holding Company Agency Examples Trade Desk
www.iab.net/programmatic
10. Buyers Landscape – Clients
• Many top clients bringing their practice “in-house”
• Netflix à
(from Programmatic I/O ‘14)
• Also P&G, Kellogg,
800-Flowers
• <15 brands in U.S. today
• Mostly CPG & Retail
• Financial next (AllState)
11. Leveraging Your Tech Stack – Why?
• Sales & Operations working together more
than ever
• No longer simply throw the IO over and let
traffic get creative and tags
• Opportunity for Operations to take more
control and drive the campaign for you
• Hunters and farmers
• “A good craftsman never blames his tools.”
12. Leveraging Your Tech Stack - Definition
• A series of technologies (internal/external) that
allow you to transact media programmatically
• Ad server(s)
• Exchange(s)
• Yield Management Tool
• Data Management Platform (DMP)
• Publisher Trading Desk
14. Your DMP à Your Data Management Platform
• Buyer-focused originally
• Publisher-focused more in the last 18 months
• 1st Party = your audience
• Behavior, demo, geo, viewability, site-level, category level
• The more granular the targeting the higher the pricing
• 3rd Party = others’ audiences
• Lookalike targeting
• Expand the pool (you have 1M,
go find 4M more similar)
15. Your DMP
• New products – Audience Extension (on-site, off)
PublisherX.com Audience Extension (BT)
PublisherX.com/Autos
PublisherX.com Network
Audience Extension
17. Your Yield Management
• Balance of sell-thru rates vs. CPM
• Price floors – global, by-vertical, by-buyer, by-client
• Guaranteed vs. Non-Guaranteed
• Dynamic Allocation, or dynamic allocation
• TV: Upfront vs. Scatter vs. Opportunistic sales
• Display, Mobile, Video, Social
18. Your Trading Desk
• Your Operations team buys your audience on
exchanges
• Control cookie pools, frequency, margin
• Self-service or managed-service
• Potential replacement for integration b/w
DMP & bidders, including Marketing/House
“spend”
20. Stage 2: Pitching – Show Apples & Oranges
• Know what they are buying
10 reasons programmatic is different from your IO
(i.e. Why IOs are $12 and programmatic is $1.20)
1. Not guaranteed inventory
2. Only 300x250, 728x90, 300x600?
3. No competitive separation
4. No roadblocks
5. No SOV
6. No fixed positions
7. Only top-level channel targeting?
8. Not served “first-look”
9. No product placement/custom sponsorships
10. No Added Value needed; agency “kickbacks”
21. Stage 5: Optimizing/Upselling
• Campaign delivery
• Seen through your exchange dashboard
• Kick out reports from Ops or view on your own
• Managing Expectations
• Non-Guaranteed
• Rhythm/cadence of performance reporting
• Setup weekly 15-30-minute call with Ops/client/ATD/DSP to
review data
• This can be set it & forget it, but you will make
more if you pay attention with Ops
22. Stage 5: Optimizing/Upselling
• More Opportunities to Grow Business
• Trading margin for share, based on CPx
outcomes
• Adding an IO based on current exchange
limitations for more sophisticated inventory,
creative
• All the items on your Top 10 Apples & Oranges slide
• Brand awareness working together with DR
• Positive (frequency) & negative (reach) re-targeting
23. Where
Programma7c
S7ll
S7nks
Today
• Some
Deal
ID
technical
pain
• Guaranteed
delivery
• Price
transparency
• Audience
discovery
• Tech
not
built
equally
for
sellers
and
buyers
• Human
sellers
and
human
buyers
working
together
to
solve
marketers’
problems