This new series is all about programmatic marketing.In this first part we discuss what it involves, statistics, programmatic buying steps and more.

1. PROGRAMMAT
IC
MARKETING:
An overview of how
marketers can use
programmatic marketing,
advertising and buying.
There’s also some
information about digital
audio, the future of
television and more.

2. TABLE OF CONTENTS:
Page Title: Page Number:
Programmatic Marketing 4
Core Programmatic Concepts 6
Facts & Statistics 12
Consumers & Buyers 19
Creative Possibilities 25
Reaching Target Audiences 31
Programmatic Advertising 36
Programmatic Advertising Classifications 37
Types of Programmatic Advertising 45
Programmatic Buying 55
Programmatic Buying Steps 56
Step 1: Organize 58
Step 2: Design 67
Step 3: Execute 77
Step 4: Reach 87
Step 5: Measure 97
Programmatic Buying Steps to Improve
Campaigns
108 2

3. TABLE OF CONTENTS:
Page Title: Page Number:
Trends Affecting Programmatic Buying 117
Programmatic: Digital Audio & Television 126
Programmatic: Rise of Digital Audio 127
Statistics 128
Facts About Digital Audio 135
Programmatic & Digital Audio 143
Programmatic: Future of Television 151
Statistics 152
Facts About Television 157
Programmatic & Television 166
Programmatic: Viewability & Verification 181
Statistics 182
Facts About Viewability & Verification 187
Standards for Viewability & Verification 195
Concepts & Challenges 200
Viewability & Verification Fraud 207
Work Cited 211 3

4. DEFINITION:
Programmatic:
The automated buying of
digital advertising space, in
order to make the process
more efficient
As part of that automated
buying process, computers use
third-party or first-party data
to decide which ads to buy and
how much to pay for them
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5. CORE CONCEPTS:
Auctions
Real-time Bidding
Second-price Auction
Measurement:
CPM
Impressions
Viewability
Platforms:
DMP
DSP
SSP
Other:
Ad Fraud
Inventory
5
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6. CORE CONCEPTS: AUCTIONS
Real-time
Bidding:
Auctions for
programmatic ads take
place in fractions of a
second as the page is
being loaded
Whether an ad
impression is bought on
open or private auction,
the decision about which
ad will appear to the
user happens while that
user is loading the page
Second-price
Auction:
This is the way that the
cost of the
programmatic ad is
worked out
The DSP that bids
highest buys the ad –
but they only pay as
much as the second-
highest price plus one
cent
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7. FACTS:
Programmatic buying allows brands
to use audience insights and
technology to tailor messages to the
right person, at the right moment,
in the right context
It helps brands respond to real-time
signals on an impression-by-
impression basis across screens and
channels
Programmatic buying may have
achieved its early success with
direct response campaigns, but
progress has been made towards
advancing programmatic technology
to meet the needs of brand
campaigns
It's taken advancements in areas
such as brand measurement,
inventory quality, and creative
flexibility to pave the way for
programmatic brand campaigns
The ultimate promise of brand
advertising in the digital age: to
efficiently and effectively run highly
relevant, creative, responsive and
measurable brand campaigns, at
scale
Brands are getting started with
programmatic buying by investing
in data and technology while also
empowering their teams to leverage
these investments
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8. PROGRAMMATIC IN ACTION:
What Programmatic can do:
Help the retailer she was visiting reach the mom on her smartphone as she
shifts to shopping on-the-go
Example of how brands can engage audiences with Programmatic buying:
A mom’s online shopping gets interrupted with errands
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9. STATISTICS:
76%
73%
71%
64%
63%
0% 10% 20% 30% 40% 50% 60% 70% 80%
TARGETING OPTIONS
REPORTING & INSIGHTS
PERFORMANCE & ROI
INVENTORY QUALITY
PRICING
Top Draws to Programmatic Buying:
9
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10. CONSUMERS ARE:
Connected Interested Engaged
10
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11. CONSUMERS:
Consumers are Connected:
Consumers shift to constant connectivity via smartphones, tablets, computers, watches
and even eyewear is transforming how brands can connect with their audiences
Brands have access to more consumer interactions than ever before, with each offering a
chance to be relevant and engaging
The challenge and opportunity for brands is to make the most of each moment, across
any screen
11
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12. BUYERS:
Brands are
embracing
programmatic to:
Connect 1:1 with
audiences, at
scale
Engage across
screens, and
with rich formats
Access top-
quality inventory
Measure what
matters
12
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13. CREATIVE POSSIBILITIES:
News-jacking and
Real-time
Marketing
Seamless, Multi-
platform
Campaigns
Targeting Niche
Audiences with
Carefully Tailored
Content
Virtual Networking
and Account-
based Targeting
13
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14. CREATIVE POSSIBILITIES:
News-jacking and Real-time Marketing:
One of the cleverest approaches to programmatic
involves tailoring content not just to who people are
but to the landscape in which they are operating
Adapting content and creative to the priority issues
of the moment for different people can maximize
engagement
14
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15. REACHING AUDIENCES:
Make sure the
Audience has the
Propensity to Buy
Make sure the
Publisher has the
Right Reach for your
Audience
Make sure the
Website Generates
the Right
Engagement
15
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16. REACHING AUDIENCES:
Make sure the Audience has the Propensity to Buy:
Marketers aren’t just interested in views, they need to be able to
reach influencers and buyers
They need to figure out if the websites in their programmatic
buy deliver the ads to the consumers who can influence a buying
decision
16
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17. AUCTION BASED- UNRESERVED
TYPE:
Inventory
Type:
Reserved Unreserved
Pricing:
Auction
Based
Fixed
17
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18. INVENTORY TYPE:
Inventory Type: Reserved
Here the ad inventory, a particular
space or section in a website or
maybe a whole page set aside for
ads, is exchanged for an agreed
value with specific advertisers
Buying reserved inventory is like
buying a desired ad space in a
print magazine for the duration,
size and the frequency of ad
present
18
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19. INVENTORY TYPE:
Inventory Type: Reserved
Reserved inventories offer better management of strategy
and implementation of advertising
For instance, you can buy ad space in a particular
website that supports your business goals
The reserved inventory is usually bought from a selected
publisher (website) at a predetermined price which is
helpful to work out a blueprint in advance and garner
efficiency through proper planning
19
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20. PRICING:
Pricing: Auction-based
Auction based inventory in a website is open for real-time bidding
This dynamically priced inventory is sold either at open or private
marketplaces
20
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21. TYPES OF PROGRAMMATIC
ADVERTISING:
•Open Auction
•Private
Auction
Auction Based-
Unreserved:
•Automated
Guaranteed
Fixed Price-
Reserved: •Unreserved
Fixed Rate
Fixed Price-
Unreserved:
21
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22. AUCTION BASED- UNRESERVED
TYPE:
Open Auction:
The process by which different DSPs
bid for an impression on behalf of their
clients
When the ads on a site are made
available in open auction, any DSP can
bid for any impression
One of the major examples are
retargeting ads which is based on the
RTB concept
This helps advertisers get access to the
ad inventory of publishers across the
web
The access is enabled by the tech
infrastructure that supports multiple
ad exchanges and networks to
participate and forms deals
This channel offers options to create
and promote ads with a set criteria of
user priorities and attributes
22
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23. AUCTION BASED- UNRESERVED
TYPE:
Open Auction:
Open auctions involve
real time bidding
The ad space is
unreserved
The price is determined
through an open auction
based on a technology
infrastructure involving
various players
23
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24. PROGRAMMATIC BUYING STEPS:
Organize
Design
ExecuteReach
Measure
24
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25. STEP 1: FACTS
Companies need
to invest in
understanding
their audiences so
they can be
relevant when it
matters most
They need to
gather: audience
data as well as
organized insights
from different
channels and
screens
The gathered data
can be analyzed
for instant action
by marketers
Consumers are
willing to reward
relevance with
their purchases,
loyalty and brand
advocacy
Organize
:
25
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26. WHY AUDIENCE INSIGHTS MATTER:
Audience insights matter
because they boost the
impact of advertisements
by fostering relevance
These insights help brands
understand who their ideal
audience is and what will
resonate with them
They empower brands to
convert their
understanding of an
audience to a precisely-
defined, targeted segment
A strong foundation of
audience insights is critical
to the programmatic
buying process
It can inform media buying
one impression at a time
when brands use
programmatic buying to
activate a segment
Organize
:
26
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27. HOW TO:
How to get the Most
Complete View
Possible:
Analyze for Instant
Action
Gather your
Audience Data
Organize Audience
Insights for a Cross-
device, Cross-
channel View
Organize
:
27
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28. HOW TO:
How to Succeed: Analyze for Instant Action
Choose an analytical
tool with attribution
modeling in order to
see which channels
are most successfully
engaging audiences
Compare campaign
performances across
channels and explore
which audience
segments are the
most profitable
Analyze and act on
the insights from:
audience strategy,
creative strategy,
or/and media strategy
Organize
:
28
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29. WORK CITED:
"A Guide To Programmatic Advertising." Think with Google. N.p., n.d. Web. 28 June 2017.
<https://www.thinkwithgoogle.com/programmatic-guide/>.
"How Will Programmatic Media Buying Impact Your Business?" Hampton Roads Business Weekly Blog.
N.p., n.d. Web. 28 June 2017. <http://www.hamptonroadsmarketingnow.com/blog/how-will-
programmatic-media-buying-impact-your-business>.
"LinkedIn: Programmatic The Ebook- The Ultimate Guide to Programmatic for B2B
Marketing." Business. LinkedIn.com. Business LinkedIn, n.d. Web. 28 June 2017.
<https://business.linkedin.com/content/dam/me/business/en-us/marketing-
solutions/cx/2017/pdfs/programmatic-the-ebook.pdf>. PDf From LinkedIn
Magazine, Advertising Age. Advertising Age Content Strategy Studio: Programmatic- The Future of
Television. N.p.: Advertising Age, June 2016. Print*
Magazine, Advertising Age. Advertising Age Content Strategy Studio: Programmatic and The Rise of
Digital Audio. N.p.: Advertising Age, September 2016. Print*
Magazine, Advertising Age. Advertising Age Content Strategy Studio: Viewability and Verification
Through the Programmatic lens. N.p.: Advertising Age, December 2015. Print*
Umashankar, Balaji Murugan. "Types of programmatic advertising, a bird's eye view." Softway Blog.
N.p., 27 Oct. 2016. Web. 28 June 2017. <https://www.softway.com/blog/types-of-programmatic-
advertising-a-birds-eye-view/>.
"Value of an Integrated Platform for Programmatic Buying." Think with Google. N.p., n.d. Web. 28 June
2017. <https://www.thinkwithgoogle.com/marketing-resources/programmatic/value-of-an-
integrated-platform-for-programmatic-buying/>.
*Also available online at adage.com 29

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