IAB Programmatic 101 Webinar

1. Programmatic 101
for Direct Sellers
31 March 2014
IAB

2. Questions?
Attendees should ask questions by typing into
the Question box on the GoToWebinar user
interface at any time during the presentations.
– We will create a queue and answer as
many questions as possible following
the presentations.
– Additional questions should be directed
to Nicole Horsford, Nicole@iab.net

3. Agenda
 Introduction
 What is programmatic?
● Patrick Landi, Time Inc
 Selling programmatic
● Steph Layser, MailOnline
 Programmatic sales evolution
● Kate Ammann, Monster
 IAB Activities on Programmatic
● Carl Kalapesi, IAB
 Q&A
2 www.iab.net/programmatic

4. What is programmatic?
Patrick Landi, Time Inc

5. Programmatic Defined
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). This method
replaces the traditional use of manual
RFPs, negotiations and insertion orders to
purchase digital media
www.iab.net/programmatic4

6. Real Time bidding (RTB)Defined
eMarketer:
Real-time bidding (RTB) is a digital advertising technology that lets
marketers buy and publishers sell display ads dynamically, in real
time, on an impression-by-impression basis.
Scott Spencer, Director of Product Management, Ad Exchange,
Google
"Real time bidding (n);
1) A technology introduced in 2009 to make it easier for ad networks
to buy only the inventory they want.
2) A common buzzword that is part of everyone's business plan in
2013.
3) The act of buying digital inventory from multiple publishers on an
impression by impression basis, typically involving an auction
pricing mechanism.
4) One of the biggest opportunities for publishers to participate in new
media spend, but not a panacea if done in isolation.
www.iab.net/programmatic5

7. Open Marketplace vs Private Marketplace
Open Marketplace allows buyers to purchase media on an audience
basis through cookie-based targeting; achieving scale is usually a
higher priority than running campaigns with specific publishers
Private Marketplaces (PMP) allows publishers to leverage
programmatic technology(s) while maintaining a direct relationship
with agencies, advertisers, trade desks and other programmatic
buyers using a “Deal ID” to transact
Benefits:
• Greater control- specific rules around access to buyers can be
created
• Prioritization
• Exclusive inventory and access
• Transparency leads to higher CPMs for publishers and brings new
advertisers previously wary of programmatic
• Access to publishers’ first party data
www.iab.net/programmatic6

8. Nissan wants to buy on
your Site
7
$300 million advertising budget
$50 Million Digital Budget goes to…
$500K goes towards a sponsorship on your
site
$1 million budget allocated to programmatic
and goes to…
$100k allocated to YourSite’s private
exchange
Agency trade desks license technology (a
bidder) to buy programmatically, using a
Demand Side Platform (DSP)…
Publishers license technology to sell
programmatically, using a Sell Side Platform
(SSP)…
www.iab.net/programmatic

9. Holding Company Trade Desk
Mapping
Holding Co. Agency Trade Desk
www.iab.net/programmatic8

10. Selling Programmatic
Steph Layser, MailOnline

11. Programmatic Transaction
– Start to Finish
www.iab.net/programmatic10

12. Know what makes your property’s
programmatic offering unique
Be consultative and drive data conversations
that make sense for your advertiser
Know the big players in programmatic and
remain educated in the marketplace
Top Three Lessons in Selling
Programmatic
www.iab.net/programmatic11

13. What
makes your
property
unique?
Audienc
e
Viewabili
ty
Scale
Non-
standard
ad units
First
Party
Data
Custom
Opportu
nities
Transpa
rency
Content
What makes your property
unique?
12 www.iab.net/programmatic

14. Future of the Programmatic
Salesperson
 Relationships Matter More Than Ever
 Focus on Higher-Value Add
 Need for Continued Education and
Evolution of Compensation Models
13 www.iab.net/programmatic

15. Programmatic sales evolution
Kate Ammann, Monster

16. Being proactive around
programmatic
How can I be proactive about bringing programmatic
into my sales conversations?
 RTB and Private Marketplace  use as a lead generation tool
 Leverage existing relationships (agency/network/trading desk,
etc.) to position yourself as a holistic partner
• Package custom sponsorships/integrations/high impact units with
RTB/automated buy
 Productize Programmatic
• Private Marketplace
 First-Party Data
• Offer data through programmatic channels
• Hybrid on-site/off-site audience packages
15 www.iab.net/programmatic

17. IAB activities on
Programmatic
Carl Kalapesi, IAB

18. IAB launches Programmatic
Council to packed house
Agreed 4 priorities for 2014:
1. Building a transparent & fair
marketplace
2. Marketplace education and
training
3. Standardization of definitions,
terminology, and best
practices
4. Making Programmatic work
for brands
17

19. What we talk about when we talk
about programmatic
18 www.iab.net/programmatic

20. Approaches to selling
programmatic
19 www.iab.net/programmatic

21. Three Programmatic “Digital
Simplifieds” published in 2013
20 www.iab.net/programmatic
Overview Salesforce Transparency

22. Many thanks
Carl Kalapesi, Director, Industry Initiatives
Contact:
carl@iab.net
Twitter:
@carlkalapesi
21 www.iab.net/programmatic

23. Carl Kalapesi
Director, Industry Initiatives
Steph Layser
MailOnline
Open Discussion / Q&A
Patrick Landi
Time Inc
Kate Ammann
Monster

24. Appendix
23

25. Other Common Terms
•Demand Side Platform (DSP): a company that provides technology for media buyers
to purchase advertising through real time bidding technology
Examples: Turn, MediaMath, DoubleClick Bid Manager, X+1, DataXu
•Sell Side Platform (SSP): a company that provides technology for publishers to sell
their unsold inventory through real time bidding and other programmatic technologies,
enabling publishers to manage multiple demand sources within one platform
Examples: Rubicon, PubMatic, Google AdX, OpenX, Casale
•Data Management Platform (DMP): (as defined by Lotame)the backbone of data-
driven marketing, and serves as a unifying platform to collect, organize, and activate
your first- and third-party audience data from any source, including online, offline, or
mobile.
Examples: BlueKai, Exelate, Lotame
24

26. Deal ID Defined
IAB Definition:
A Deal ID is an additional parameter that is passed in a bid request/bid
response. In addition to things like timestamp, URL, IP address, cookie
info, etc. many platforms now also have the ability to pass the Deal ID on
with transaction. Deal ID is a unique string of characters that are used as
an identifier for buyers and sellers. The buyer and seller will decide what
that unique string of characters is defining. Depending on what platform
you are using this could include things like priority, transparency, floor
pricing, or data. A deal ID can usually be applied to any of the tactics that
are executed through RTB pipes
25

27. Four types of programmatic
transactions
26
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

28. The Origins of programmatic
• 1994- Hotwired sold the first banner add to AT&T
• 1998- Adnetworks like 24/7 Real Media started to emerge to aggregate and resell
publishers’ unsold inventory
• 2005- Right Media launched the first digital exchange in order to start aggregating
cookies, allowing publishers to start segmenting their audiences via cookies and 3rd party
data BUT was not the first to offer real time bidding (RTB)
• 2008- Agency Holding Company’s started developing trade desks to handle all exchange
based buying and become in house experts on programmatic buying and selling
• 2009- Demand Side Platform (DSP), Turn executed the first real time bidding (RTB) buy
via Sell Side Platform (SSP), PubMatic allowing advertisers to start bidding on individual
impressions in real time
• 2011-2012- Publishers start building private exchanges, carving out inventory segments to
an exclusive subset of programmatic buyers (primarily agency trade desks and direct
advertisers)
• 2012- Facebook exchange launches, allowing advertisers to bid on facebook impressions,
then retarget those users across the internet; estimates are it’s already bringing in an
additional $15-25 million in revenue
• September 2013- AOL launching the first “Programmatic Upfront”
27

29. Programmatic Ecosystem Simplified
28

30. Advertiser Agency
Who Manages
Programmatic?
Who Manages the Buy? It
Depends…