Programmatic Future of Advertising
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techmap is where marketing meets technology. These slides are all about programmatic advertising, as we asked speakers from Nestle, TimeInc and TubeMogul to answer the question: Is Programmatic the Future of Advertising. They were presented at techmap London in March 2016
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Programmatic Future of Advertising
- 1. Welcome to techmap: Is Programmatic the Future of Advertising? Follow us on Twitter #techmap Talks start at 7.15pm, until then, eat, drink and be merry.
- 2. Introducing techmap Andy Bargery CEO, Klaxon
- 3. Where marketing meets technology.
- 4. Andy Bush, Senior Vice President, Time Inc Jack Rutter, Platform Director, TubeMogul Gawain Owen, Digital Lead, Nestle UK&I Stephane Lecuyot, Nestle Nespresso Is Programmatic the Future of Advertising?
- 5. Agenda 6.30pm - Registration 7.15pm - Introducing techmap 7.20pm - Andy Bush, TimeInc 7.35pm - Jack Rutter, TubeMogul 7.50pm - Gawain Owen, Nestle Stephane Lecuyot, Nespresso 8.05pm - Questions?
- 6. LUMAScape
- 7. Andy Bush Senior Vice President, Time Inc
- 18. Jack Rutter Platform Director, TubeMogul
- 19. Is Programmatic the Future of Advertising? 16th March 2015
- 20. Agenda • Introduction • Definition of Programmatic • Tradtional Trading Models and The Market Evolution • How Does Programmatic Software Improve Media Buying? • Where next?
- 22. What Does Programmatic Mean?
- 23. Complexity of the Traditional Media Buying Process
- 25. Then Ad Networks Join the Party…
- 26. But Exchanges Steal the Spotlight…
- 27. And Supply-Side Platforms Arrive for Publishers…
- 28. While Demand-Side Platforms Align with Advertisers
- 29. “Software is Eating the World… MARC ANDREESEN …Software is Improving Media Trading.”
- 30. Moving to Efficiency through Software
- 31. Improve Your Bottom Line with Cost Savings
- 32. Control Frequency Across the Entire Campaign
- 33. Programmatic Provides More Control and Transparency DATA Ownership
- 34. Where Next?
- 35. Source: Strategy Analytics, May 2014
- 36. MAKING HEADLINES
- 37. How much is this a Reality? First-ever broadcast TV Super Bowl advertisement purchased programmatically made possible by our exclusive partnership with WideOrbit
- 39. The Future of Media Buying?
- 41. Gawain Owen Digital Lead, Nestle UK & Ireland
- 42. Stephane Lecuyot Digital Acquisition Manager, Nestle Nespresso
- 43. - Is Programmatic the Future of Advertising? - Overcoming Content Shock - Is Data the Holy Grail for Marketers? - CRM & the Promise of Automation - Getting to Grips with the Human Condition Topics:
- 44. Follow us on twitter: @thisistechmap Follow the conversation: #techmap Find out more:
Notas del editor
- Techmap was once a vibrant community of like minded marketing professionals. Rebuilding the platform in London, then moving out to create regional chapters with the same goal: to explore where marketing meets technology and what this means for driving marketing performance.
- Hi my name is Jack Rutter from TubeMogul, a programmatic video and TV company. Primarily my role is to work with brands agencies and trading desks to help them utilise TubeMogul’s media buying software to execute their digital video buys. I wanted to give you a little context on TubeMogul before we try and answer the question “Is Programmatic the Future of Advertising?” TM Intro. Before we go any further I would like to contend that indeed Programmatic is going to play a massive part in the future of advertising. Whether it be through TubeMogul’s software or anybody else such as Google, MediaMath, Turn etc, the fact that software enables the central planning, management and reporting of advertising campaigns across multiple formats means that programmatic is here to stay.
- Now we know the what I think let me try to share some of the reasons why. Firstly lets look at the definition of what programmatic. RTB Programmatic Direct or automation Ever since the evolution of the internet a programmatic approach made sense. Search was the first the to utilize software to automate the buying of key words with demand or auction based pricing. After that came display and in it’s initial guise it looked like programmatic was more aligned with DR than branding.
- The traditional media buying process has existed ever since the media began to be traded. As the market evolved it developed inefficiencies and became fragmented. Let’s look at the detail: Briefing – only briefing those we know the first inefficiency I.Os Siloed Analysis – 2nd inefficiency Time Spent buy agencies pulling reporting together from many different sources – 3rd inefficiency Using the context of video I want to show how trading has changed since the use of programmatic software. The same could patterns apply to the way that the display market developed and will most likely apply to those markets that are yet to adopt programmatic trading, namely TV and Outdoor.
- Traditional media trading was definitely more simple. In the first instance advertisers via their agencies and publishers would deal directly agreeing CPMs and impression numbers. It was easy, definitely very transparent but it was time consuming for those doing the buying and as the internet grew scale became an issue.
- Ad networks remedied that issue of scale by doing deals with all the publishers that didn’t have a sales team or couldn’t get on an advertisers plan directly. For the agencies and brands it was great because not through 2 or three relationships that could get the scale of inventory alongside their premium publisher partners inventory that was bought direct. Despite helping solve one challenge for the agencies ad networks created new issues. Namely around transparency and lack of control over where their ads were being delivered. From a reporting perspective ad networks would provide a report with one line that outlined basic delivery, for example impressions, clicks, completions etc. Over time this lack of transparency would be a major issue and cause many of them to have to pivot their businesses or they would go out of business. Equally Ad Networks have a traditional approach to getting the media they want to arbitrage and have very little control over what they buy. They pick up the phone to their publishers negotiate a deal then are beholden to the publisher sending through the relevant impressions, which of course as a middle man they have to sell on to make a profit.
- The emergence of the exchanges gave publishers more than one option in terms of monetizing their inventory. As an alternative to working with an ad network they could sell their inventory via an exchange. Equally they bought the ability to buy in real time using data for targeting which would inevitably drive better results than the traditional approach taken by an ad network The exchanges worked in a very similar way to the financial exchanges linking buyer and seller. However, as exchanges became more popular buyers and sellers had to have accounts in multiple exchanges making buying and selling very cumbersome! We then saw further evolution which is where we are at today.
- Supply Side Platforms, such as LiveRail, who were recently acquired by Facebook, developed software which enabled publishers to make their inventory biddable. This could mean RTB or programmatic direct, but publishers would have the control over who bought their inventory and what price they could get. Similar companies in the display space are Pubmatic or The Rubicon Project. Equally there are similar organisations like Wide Orbit and others in the TV and Outdoor worlds, which demosnstrate that the benefits of programmatic can be realized, whatever the media format.
- DSPs have fulfilled a similar role on the buyside. Advertisers and their agencies now have complete control over the inventory they buy, how much they pay, what data and targeting strategies they use and much more. Again this control and the benefits that this brings are the major reasons why programmatic is here to stay!
- For those of you that don’t know this man, he is called Mark Andresson and he invented one of the first web browsers. Famously he said that software is eating the world. If we reflect on the changes in the way that business is done and how we live our lives now versus 25 years ago he is right. Whether it be finance, transport, logistics, communication our lives have been transformed. Programmatic software is what is, and will continue to improve media trading.
- Through software brands and agencies drive efficiencies across their media buys. Whether it is cutting out the intermediaries who add a layer of fat in the middle, benefiting from frequency management, unified reporting or having greater control of your data using software has and will improve media buying. Through the use of software it is possible to constantly iterate based on the previous performance of campaigns. This makes media buying more efficient by default meaning there are lots of new opportunities for advertisers to test, learn and iterate, and as a result drive even better results and new insights.
- One of the major benefits for brands and agencies has been the ability to drive savings just through cutting out intermediaries. This has been one of the major reasons why ad network market share has shrunk as agencies and trading desks have started to control budgets. Outside of the super premium world of the broadcasters and top publishing titles, there is very little unique inventory. If you can buy a publisher via an ad network it is highly likely it is available form the open exhanges at a lower cost. This is a major reason why we have seen traditional ad networks, such as Specific Media or Tremor for example pivot their businesses to create their own DSPs or SSPs.
- One really simple why to drive efficiencies is to be able to manage frequency across the whole campaign.
- Understanding what and who you are paying, when in the past this has been unclear Utilsing 3rd party services that are embedded into DSPs / SSPs to have greater control and visibility on brand safety, audience delivery and Viewability Centralised reporting and optimization make better campaigns Programmatic is alive and well today across digital whether it’s search, display, social, mobile or video. It’s driven by providing both buyers and sellers greater control, transparency and insight, which inevitably drives action. Where to next though?
- According to strategy analytics in 2018 20% of TV will be bought programmatically.
- You may or may not have seen the recent announcement by channel 4 about them enabling their video inventory programmatically. This is part of a wider shift in Channel 4’s business where they are looking to embrace the programmatic world to meet their commercial requirments.
- Is it a reality? In the USA it is a reality right now and the UK will follow shortly. Each TV market is unique in it’s own way so it will be an iterative process in terms of linking the supply to the demand, but the truth is it’s happening. At the last Superbowl TubeMogul became the first software company to buy a TV ad for Mondelez. We also did the same thing in the Oscars that aired recently.
- In conclusion Programmatic is the Future of Advertising. Software providers like TubeMogul and others already mentioned are enabling both buyers and seller the ability to deliver smarter more efficient advertising. In the UK programmatic across digital is beginning to mature and in the near future we will start to see programmatic buying software being utilised to buy and sell TV spots, Outdoor bill boards and even on day press ads.