More Related Content Similar to Programmatic at TMK (20) More from The Media Kitchen (20) Programmatic at TMK3. ©
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Started with Programmatic centralized and out-sourced to our partner
trading desk
Performance play; however, TMK desired deeper insights and transparency
Introduction of technology made Programmatic buying more accessible
Self-service tools empower advertisers to take control of programmatic
Moving Programmatic in-house decentralized buys and provided flexibility
Transparency into costs and performance; Private Marketplace deals
could be negotiated as part of overall digital buy
3
OUR PROGRAMMATIC STORY
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4
OUR PROGRAMMATIC TEAM PHILOSOPHY
The majority of media will be bought programmatically through self-
service platforms, which makes media buying more transparent,
flexible, and efficient.
This technology requires a new type of media professional. With insight
into this evolution, The Media Kitchen has developed the Programmatic
Media Buying Team.
The Programmatic Media Team oversees 3 major areas:
• Programmatic RTB/PMP (includes banners, video, and mobile)
• Paid Search (e.g., Google and Bing)
• Paid Social Media (e.g., Facebook, Twitter, LinkedIn)
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0%
20%
40%
60%
80%
100%
2011 2012 2013 2014 2015 2016 2017
Programmatic Non-Programmatic
Source:
eMarketer:
“US
Display
Ad
Spending
Share,
by
Type”
2013
hFp://digiday.com/plaJorms/global-‐outlook-‐programmaLc-‐adverLsing-‐5-‐charts/
6
PROGRAMMATIC FLIPPING THE MARKET
The Programmatic ad market will grow from $12 billion in 2013
to more than $32 billion in 2017
8. RTB GOES
MAINSTREAM
1994 1996 2005 2007 20112000
DSPs
LAUNCH
AD
EXCHANGES
LAUNCH
ADWORDS
LAUNCH
AD
NETWORKS
LAUNCH
2014
PRIVATE
MARKETPLACES
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DIGITAL
ADS
LAUNCH
8
DIGITAL A D R E V O L U T I O N
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ADVERTISER:
• Buy as much quality
inventory as possible at
low cost
• Negotiate with Publishers
to achieve desired plan
PUBLISHER:
• Sell as much inventory
as possible at high cost
• Create value for inventory
through content and scarcity
10
ADVERTISER AND PUBLISHER RELATIONSHIP
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Thus, significant amounts of unsold inventory jeopardized the inventory
“scarcity” tenant that Publishers held dear
Unsold Inventory
Sold Inventory
WebTraffic
11
AS THE WEB EXPANDED
It created an increased amount of site traffic,
while advertiser growth did not keep pace
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UNSOLD INVENTORY = OPPORTUNITY
The growth of the web left Publishers with unsold inventory.
Programmatic offered Publishers an opportunity
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Advertiser
Publisher
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PROGRAMMATIC INITIALLY FAVORED ADVERTISERS
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Through this model, Publishers lose direct contact with
advertisers and agencies
Advertiser Publisher
Second Price Auction
14
SYMBIOSIS DISRUPTED
Inventory sold across the exchanges at variable costs
and to unknown advertisers
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Advertiser Publisher
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PUBLISHERS CONTROL TRANSPARENCY
However, knowledge about the specific
inventory won is often obfuscated
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56%
17%
23%
Of Publisher impressions
are not viewable
Of Programmatic display
ads are viewed by bots
Of online video ads
are viewed by bots
Sources:
hFp://www.bloomberg.com/news/2014-‐12-‐09/robots-‐not-‐humans-‐fake-‐23-‐of-‐web-‐video-‐ad-‐views-‐study-‐finds.html
ANA
(hFp://blogs.wsj.com/cmo/2014/12/09/5-‐things-‐marketers-‐need-‐to-‐know-‐about-‐ad-‐fraud/)
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MONETIZATION OF INVENTORY
The open exchange encouraged fraudulent traffic, and poor
placement viewability as web-crawlers and bots attempted to
exploit advertising to generate publisher revenue
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Private Marketplaces put the responsibility for inventory
quality on the Publisher, allowing them to lock in advertiser
dollars and a pre-agreed price
QUALITY
17
PRIVATE MARKETPLACE AS A STABLIZING FORCE
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EVOLUTION OF PRIVATE MARKETPLACES
A Private Marketplace is a customized,
invitation-only marketplace where Publishers make their inventory
and audiences available to a select group of buyers.
Unlike a direct buy, which can be labor intensive for both Publishers
and Advertisers, buyers in a PMP use programmatic-media
buying controls to purchase from Publishers.
DefiniLon
via
RockeJuel
hFp://rockeJuel.com/webinars/what-‐is-‐a-‐private-‐marketplace
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WATERFALL
Publisher Direct
Automated Guarantee
Preferred Deal
Private Auction
Open Exchange
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WIN FOR ADVERTISER:
• Choose inventory with specific
partners
• Control of serving parameters and
audience (time of day, day of
week, first and third party
audience data, etc.)
• Decrease issues pertaining to
viewability and fraud
WIN FOR PUBLISHER:
• Can sell more inventory (fill
rates) at desired or preferred
CPMs
• Fill inventory with preferred
Advertisers rather than just the
highest bidder
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PRIVATE MARKETPLACES ARE A WIN-WIN
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Preferred
Deals
Private Auction
Pricing # of Buyers DescriptionPublishers
One
Publisher
Fixed Price One Advertiser
Negotiated, fixed price;
completed through
self-serve tool
2nd price auction with
select group of buyers;
auction with set floor;
through publisher-
owned DSP2nd Price Auction w/
Floors
One
Publisher
Select
Advertisers
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TYPES OF PRIVATE MARKETPLACES
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Crafting Proposal
Negotiating Plan
Execution of Buy
23
RFP PROCESS: OVERVIEW
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Media team
develops RFP
Media team
issues RFP
Publisher submits
proposal
Should include information such as…
• Are Programmatic and Publisher Direct considered one digital plan?
• Can Programmatic and Publisher Direct inventory overlap?
• Is there specific inventory desired?
• Are there inventory quality standards (viewability and fraud)?
• Is there specific targeting required (audience, geo, etc.)?
• What Programmatic tactic is preferred (PMP or Private Auction)?
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RFP PROCESS: CRAFTING A PROPOSAL
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RFP PROCESS: CRAFTING A PROPOSAL
For Publisher:
• Send RFP and any additional documentation explaining campaign (i.e. excel doc
with specific proposal format)
Media team
develops RFP
Media team
issues RFP
Publisher submits
proposal
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Placement Name Unit Sizes Start Date End Date
Cost
Structure
Net/Gross
Rate
Planned
Impressions
Planned
Cost
Site – Preferred Deal PMP_728x90 728x90 1/1/15 4/30/15 CPM $8.00 TBD
$100,000
Site – Preferred Deal PMP_300x250 300x250 1/1/15 4/30/15 CPM $8.00 TBD
Site – Preferred Deal PMP_300X600 300x600 1/1/15 4/30/15 CPM $8.00 TBD
Site – Publisher Direct_300x250 300x250 1/1/15 4/30/15 CPM $16.00 TBD
Site - Publisher Direct_728x90 728x90 1/1/15 4/30/15 CPM $16.00 TBD
- - $100,000
RFP PROCESS: CRAFTING A PROPOSAL
Media team
develops RFP
Media team
issues RFP
Publisher submits
proposal
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Media team negotiates
RFP terms with
Publisher
Media team and
Publishers discuss
details of
Programmatic prior
to paperwork
Media team
provides IO and
T&Cs based upon
agreed plan
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RFP PROCESS: NEGOTIATING PLAN
Terms of Negotiation:
• Price floor and/or fixed CPM
• Packages and inventory
• Spend flexibility
• Any viewability and/or fraud percentages to be considered
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RFP PROCESS: NEGOTIATING PLAN
Details Needed:
• TMK Team DSP
• Publisher SSP
• Any site pixeling opportunities for Publisher
• Reporting options
Media team negotiates
RFP terms with
Publisher
Media team and
Publishers discuss
details of
Programmatic prior
to paperwork
Media team
provides IO and
T&Cs based upon
agreed plan
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RFP PROCESS: NEGOTIATING PLAN
Signed document:
• Holds Publisher accountable for inventory type, quality and floor pricing
• Holds Advertiser accountable for investment level required to achieve rates
Media team negotiates
RFP terms with
Publisher
Media team and
Publishers discuss
details of
Programmatic prior
to paperwork
Media team
provides IO and
T&Cs based upon
agreed plan
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Media team to inform
TMK PMG of upcoming
campaign
Publisher works
with SSP in setting
up inventory and
Deal IDs
Post-launch
maintenance and
communication
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RFP PROCESS: EXECUTION OF BUY
For TMK PMG team:
• Media team to complete TMK PMP In-Take Doc and share with TMK PMG team
• Once TMK PMG team has a chance to review, schedule internal meeting to discuss
campaign next steps
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Media team to inform
TMK PMG of upcoming
campaigns
Publisher works
with SSP in setting
up inventory and
Deal IDs
Post-launch
maintenance and
communication
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RFP PROCESS: EXECUTION OF BUY
Deal IDs are a string of characters that pass the planned inventory between the DSP
and SSP
• Without Deal IDs, publishers and platforms cannot always allocate client spend
more efficiently or reserve inventory
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RFP PROCESS: EXECUTION OF BUY
Post-Launch Maintenance (Media and Programmatic teams)
• Are Deal IDs receiving adequate amount of impression volume?
• Do CPMs need to be changed based on performance or delivery?
• Is the program performing according to prearranged quality standards and KPIs?
Media team to inform
TMK PMG of upcoming
campaigns
Publisher works
with SSP in setting
up inventory and
Deal IDs
Post-launch
maintenance and
communication
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Private Auction
34
PRIVATE DEAL VS. PRIVATE AUCTION
Preferred Deal
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Bid Optimizations can be implemented based on:
• Site Category
• Time of Day
• Day of Week
• Browser (and Browser version)
• Frequency
• Creative Size
• Device Type
• Recency
35
MANAGING DEALS
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OPTIMIZATION EXAMPLES
Vanguard FAS
Private Auction
Vanguard Retail
Preferred Deals