Programmatic ad buying - Marketing365

Programmatic ad buying RTB, concepts, technologies and the Macedonian reality

Filip Mladenovski Social Advertising Manager @ Httpool Online Advertising Macedonia

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Presentation flow

The definition of programmatic ad buying What is RTB (real time buying)? Data as a key element Benefits of programmatic for all parties involved • Discussion • • • •

Filip Mladenovski / Httpool Online Advertising Macedonia Programmatic ad buying: RTB, concepts, technologies and the Macedonian reality

Programmatic - a brief definition

Programmatic buying is the act of bidding on an advertising inventory source in real time for the opportunity to show one specific ad to one consumer in one specific context, utilizing advanced technologies of data collection and analysis involving minimal human interaction and involvement.

Filip Mladenovski / Httpool Online Advertising Macedonia 3 Programmatic ad buying: RTB, concepts, technologies and the Macedonian reality

How display ad buying used to work* 1

Buying and selling performed directly between advertisers and publishers

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Ad Networks formed to connect hundreds of advertisers and publishers

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*(and still works in Macedonia) Filip Mladenovski / Httpool Online Advertising Macedonia 4 Programmatic ad buying: RTB, concepts, technologies and the Macedonian reality

How display ad buying used to work 3

Hundreds of Ad Networks join the game to buy and sell from each other

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Ad Exchanges enter to consolidate buying and selling between Ad Networks A

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Steps 1 – 4 result in a highly inefficient buy landscape Filip Mladenovski / Httpool Online Advertising Macedonia 5 Programmatic ad buying: RTB, concepts, technologies and the Macedonian reality

How display ad buying works now Enter the DSPs….

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DSP

Demand-Side Platform

is a system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface.

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…and the SSPs

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Supply (Sell)-Side Platform

is a technology platform with the single mission of enabling publishers to manage their advertising impression inventory and maximize revenue from digital media.


What is this new technology?

Real Time Bidding An online advertising technology that enables the trade of display advertising inventory on an impression-by-impression basis.

Concentrate on your most valued audiences at the right time All done in milliseconds…

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How does RTB work? Advertiser 1 Bid: $2.50

User Advertiser 2 Bid: $3.25

300x 250

Advertiser 3 Bid: $3.10

Advertiser 3 Bid: $4.10

Winning bid Average process time 100 milliseconds

Ad

Served


Credit: @2013 Turn Inc. http://www.turn.com/sites/default/files/Life_of_an_ Ad_Infographic.pdf


Why does RTB matter? Advertisers

Publishers More advertisers bidding for every impression. Content and demographics matter, not statistics. Loyal, transparent competition and higher prices.

Access to more inventory and total control of where the ad appears. Increased campaign ROI by having lower costs per reached user and lowest CPconversion.

Satisfied clients with less ad spend while achieving higher reach Filip Mladenovski / Httpool Online Advertising Macedonia Programmatic ad buying: RTB, concepts, technologies and the Macedonian reality

What problems does RTB solve? Better targeting capabilities Operational inefficiency

Improve performance

Full Control

Transparency


How does programmatic advertising actually work?

1st, 2nd and 3rd party data collection and exchange layer

Key terms in the programmatic ecosystem • • •

Publishers Ad Networks Ad Servers

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Exchanges Trading Desks DSP Demand-side Platforms

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SSP Supply-side Platforms PMP Private Marketplaces Data collection and management platforms


Data collection as a key element of programmatic

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party nd 2 data

party data

Data generated and made available to the campaign by the brand/advertiser, including data from: • Website visits and actions • Mailing-list subscriptions • Customer email databases • Loyalty programs • CRM systems • Transaction systems • Other enterprise-automation systems

Represents the sharing of first party data direct from the source, or shared via a DMP (data management platform).

party rd 3 data Data acquired and aggregated by independent third parties such as website publishers, database companies, and other aggregators. • Demographics like gender, income, education, household size • Psychographics like mindset, interests, affinities • Behavioral data like recent searches, credit-card usage


Why is programmatic ad buying so important? Following the user during his full online experience

multi channel, many screens reach on many properties and serving an ad they probably want to see.

Paying only for the consumers you want AD

showing ads in contexts that generate impact, via serving tailored ads in a safe environment.

Cost effective means of campaign realization in ROI and payroll terms

display campaigns take up 28% in overheads, TV 2%.

Programmatic buying empowers marketers to move from broad, handoperated, segment-based buys to very fine grained individual buys. Filip Mladenovski / Httpool Online Advertising Macedonia 14 Programmatic ad buying: RTB, concepts, technologies and the Macedonian reality

When can you use programmatic ad buying? Marketers use programmatic buying all across the funnel, from branding to conversions and from new customer acquisition to loyalty marketing, in an advertiser safe environment*.

Achieve high visibility with relevant, extensive branding

Cross and up selling after initial conversion

Engineer direct response and track conversion

Retain customers by always-on marketing

Follow intention to buy other brands and re-sell your own

*Safety of environment ensured by real-time blockers, prescreening of inventory, white and black listing publishers Filip Mladenovski / Httpool Online Advertising Macedonia 15 Programmatic ad buying: RTB, concepts, technologies and the Macedonian reality

What channels could be used? The best programmatic-buying solutions integrate many campaigns into a single cross-campaign solution that optimizes through ad formats, placements and devices.

Mostly used in display. Already enabled on video inventory. Becoming widely available on mobile Integrating with Facebook Exchange and other smaller social networks’ inventory. Filip Mladenovski / Httpool Online Advertising Macedonia 16 Programmatic ad buying: RTB, concepts, technologies and the Macedonian reality

Is programmatic problematic?

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A lot of advertisers still don't understand programmatic, since they are uninformed of all the possibilities that it offers. Publishers do not wish to allow for their entire inventory to be sold by a third party, especially premium publishers which do not wish to leave the CPM buy model. Agencies are hesitant to separate deep ties with publishers. Current dilemmas regarding online privacy. Programmatic will never be fully automated.

More on http://www.forbes.com/sites/onmarketing/2014/10/02/why-programmatic-ad-buying-is-currentlyproblematic/


Wrap up

• Global marketers have doubled their investment in programmatic buying over the last year (2014 vs. 2013) (link) • Mobile, Video, And Real-Time Bidding Will Catapult Programmatic Ad Spend, growing to $18.2 billion in 2018 (link) • European programmatic video spending will reach €368.8m by 2015 (link)


Why use programmatic in Macedonia?

http://www.slideshare.net/fullscreen/IAB_Europe/iab-europe-programmatic-market-sizing-study-sept-2014/5 Filip Mladenovski / Httpool Online Advertising Macedonia 19 Programmatic ad buying: RTB, concepts, technologies and the Macedonian reality

Macedonian reality – our POV •

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Online is still seen as a supportive channel, instead of using it separately for certain campaigns • Not used as a tool that offers much more Media overview • Number and type of publishers • Ad formats and pricing • Types of media buy– fixed buy still present, CPM buy mostly used, no CPC, CPA, CPE • Not all possible ad positions being monetized • Lots of remnant inventory Advertisers overview • Traditional / digital split not keeping up with global trends • Not fully informed on how to utilize full digital capabilities Agency overview • Agencies still predominantly focused on traditional channels


How do we build the .mk programmatic ecosystem? Programmatic is emerging across Httpool markets, while there is already an existing demand from the international agencies and trading desks and increasingly from local agencies.

Understand and aggregate inventory

Create a programmatic country strategy

Integrate and administrate

Sell, optimize, sell, optimize.

Through partnership with AppNexus and existing partnerships with local publishers, Httpool is in a position to enable the Programmatic ecosystem across its markets.


Thank you very much for your attention! Q&A

[email protected] @Fmladenovski mk.linkedin.com/in/filipmladenovski Filip Mladenovski / Httpool Online Advertising Macedonia 22 Programmatic ad buying: RTB, concepts, technologies and the Macedonian reality

Good reads IAB Europe Programmatic Trading White Paper July 2014: http://www.iabeurope.eu/files/8614/0776/0957/IAB_Europe_Programmatic_Trading_White_Paper_July_2014_v2.pdf

Gemius Knowledge SEE http://www.iabeurope.eu/files/7714/0319/0049/gemiusKnowledge_South-EastEurope.pdf

Argedia’s Begginers guide to programmatic media buying http://argedia.com/beginners-guide-programmatic-media-buying/

The CMO's Guide to Programmatic Buying - 9 Things Every Advertiser Should Know http://adage.com/article/digital/cmo-s-guide-programmatic-buying/293257/

3 Theories About Programmatic Buying http://www.adexchanger.com/data-driven-thinking/3-theories-about-programmatic-buying/
