Request a Demo Today, Go Here! >>> www.AdClarity.com Agencies must start embracing and investing in programmatic buying and commit themselves to it because programmatic buying is the future of online advertising. Agencies can no longer afford to let their clients (brands) take on the burden as their clients expect for them to be able to deliver a full and complete package, including their media buying strategies. And as is being predicted, programmatic buying will be essential to any digital marketing strategy. AGENCIES: Know what’s going on in your client’s industry and make data-informed decisions with confidence so that they can launch the best online campaigns, creatives, and offerings.

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The Agency Guide To
Programmatic Buying

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Table of Contents
1. Introduction
2. Defining Programmatic Buying
3. How Does Real-Time Bidding Work?
4. The Benefits
5. The Challenges
6. Conclusion

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The Agency Guide to Programmatic Buying
Introduction
Agencies must start embracing and investing in programmatic buying
and commit themselves to it because programmatic buying is the future
of online advertising. Agencies can no longer afford to let their clients
(brands) take on the burden as their clients expect for them to be able to
deliver a full and complete package, including their media buying
strategies. And as is being predicted, programmatic buying will be
essential to any digital marketing strategy.
The vast majority of small and mid-tier agencies (about 94%) don’t trust the
concept of programmatic buying. Why? Simply because they don’t
understand it. Consequentially, their clients feel this high level of uncertainty
and distrust that stems from this lack of understanding, causing them to feel
as if they have no choice but to manage their programmatic buying efforts in-
house.
According to a recent study done by Adap.TV, “brands report that 60% of
their budgets are now focused on programmatic buying, as opposed to
agencies, which are allocating just 38% of their budgets to programmatic.”
It’s time to stop this the stigma that Agencies have attached to
programmatic as programmatic is set to double from this year’s $10
billion to $20 billion in 2016 and Agencies simply can’t afford to risk
losing it all.

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The Agency Guide to Programmatic Buying
Defining Programmatic Buying
Let’s make it simple.
All programmatic buying is, is simply automating the process of buying or
selling online media at a massive scale; a way of using technology to buy and
sell media. It’s about bidding on an advertising inventory source in real-time
for the opportunity to show one specific ad to one specific consumer in one
specific context. It takes what takes a human to do in several hours and does
it in less than 200 milliseconds and much more effectively.
One of the key aspects of programmatic buying is real-time bidding (rtb) and
unlike traditional online display advertising, which proved too inefficient and
costly (for all players in the field), real-time bidding shows the right ads to the
right people at the right time. The real problem in regards to the traditional
methods were that advertisers were using a CPM model to buy their
impressions; which means you are buying a bulk of impressions for the same
price per unit, even though each impression has a different value. For
publishers, this was inefficient because they were unable to sell up to 70% of
their inventory, and the inventory that they did sell was sold for way below
the market value.
So real-time bidding appeared in the picture and things began to change for
the better.
Real time bidding revolutionized the way online media is done because it
allowed for advertisers to purchase their inventory based on individual
impressions through an automated bidding system. This means that the

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The Agency Guide to Programmatic Buying
Real time bidding revolutionized the way online media is done because it
allowed for advertisers to purchase their inventory based on individual
impressions through an automated bidding system. This means that the
publisher is getting the most bang for their buck and that the advertiser
doesn’t need to worry about reaching unwanted audiences.

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The Agency Guide to Programmatic Buying
How Does Real-Time Bidding Work?
Let’s make it simple.
There are 4 major players in real-time bidding:
Demand Side Platform (DSP) – The DSP enabled advertisers to gain
access to multiple sources of inventory and makes the bid for them
automatically, based on buying parameters the advertiser has preset.
Publisher– This one’s easy; the publisher supplies the inventory. In the
earlier days, publishers would only supply remnant inventory to the DSP’s,
but as demand began to grow from the advertisers, publishers are now
supplying their most premium inventory as well!
Supply Side Platform (SSP) – The SSP is a tool which helps publishers
manage their inventory.
Ad Exchange– This is the tool that actually connects the advertisers with
the publishers and vice versa. It facilitates in the purchasing of inventory in
real-time milliseconds before a page loads.

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The Agency Guide to Programmatic Buying
Without getting too technical, here is the most basic process
of RTB:
The publisher provides inventory to their Ad Exchange
The advertiser sets their buying criteria on the DSP, which will
eventually place the bid on each impression on behalf of the
advertisers.
The value of the bid is based on the value of that individual
impressions, which has been predetermined by the advertiser’s criteria
with the DSP; this bidding process ensures that the publisher is getting
the maximum price for their inventory, as dictated by market demand
Once the bidding is completed, the impression goes to the highest
bidder and their ads are served on the publisher’s site!

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.
This business paper was produced by AdClarity, the leading digital media
buying solution. We invite you to learn more and start your free trial
www.
The Benefits
The benefits for agencies are endless.
Programmatic buying allows for agencies to conduct large scale
transactions.
It allows for agencies to enhance their targeting capabilities so that their
impressions will reach the right audience, at the right place, and the right
time, ultimately increasing their ROI.
It is more cost effective for agencies as they are not wasting their
impressions and ad dollars
The reach and frequency is much more effective and targeted
Gives agencies complete control over their campaigns’ performance
All of this in turn enables the agencies to deliver better results to their
clients
Programmatic buying let’s agencies consider much more websites than
any human could.

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adclarity.comIn addition to the direct benefits of programmatic buying, there are also
several indirect benefits, such as insights, that agencies can gain from it.
Campaign insights- Find out which campaign works best, when it works
best, where it works best, and through what channel it works best.
Consumer insights- Discover who your target audience really is and what
it is that makes them your top customer in addition to multivariate insights
on demographics.
Creative insights- See which creative works best for which campaign and
in which context. Diversify your campaigns based on the type of consumer
you are targeting and where you are targeting them.
Plan your bids according to these insights and make sure that when there is
a publisher that is really worth it, you get the spot!

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Conclusion
Make no mistake, programmatic IS the future of online media. It won’t be
going away and agencies that fully embrace and commit themselves to it
now will surely reap the rewards in the future.
It’s time for Agencies to step it up a notch and begin to make the
technological and marketing changes needed in order to achieve an effective
and ideal programmatic buying strategy.
This business paper was produced by AdClarity, the leading digital media
buying solution. We invite you to learn more at:
www.adclarity.com
Sources:
http://www.mediapost.com/publications/article/221082/small-mid-sized-agencies-ambivalent-about-progra.html
http://www.clickz.com/clickz/news/2367729/brands-adopt-programmatic-buying-while-agencies-lag-behind
http://www.adweek.com/news/technology/7-advertising-trends-show-you-exactly-where-industry-headed-160803
http://rocketfuel.com/downloads/10-Questions-About-Programmatic-Buying.pdf