Rich Zeroth from Meredith Digital's presentation from Digiday's WTF Programmatic for Publishers event in NYC - April 30, 2015.

1. april30,2015
PROGRAMMATIC IN BRIEF

2. agenda
2
The Basics
> Definitions
> Why?
Landscape
> Market Progression
> Actors & Acronyms
> Media Buying
Publisher POV
> Deal Anatomy & Construction
> Deal Types
> Key Takeaways

4. terminology: the painful stuff
RTB Real Time Bidding –the technology that allows the selling and buying of inventory one impression at a time.
Ad Exchange Transparent real-time marketplace where large pools of inventory are bought and sold.
Agency Trading
Desk
Holding company-created division to execute audience buying strategies, both direct and programmatic.
DSP
Demand Side Platform - Technology company that powers RTB buying for advertisers and agencies. Leverages
Demand Side Decisioning.
SSP Supply Side Platform - Technology platform that powers RTB selling for publishers. Aka a ‘publisher biased exchange.
PMP Strategy to create a premium sales channel using RTB to execute direct buys, aka Private Exchange.
Deal ID RTB indicator/’Flag’ to execute PMP buys for direct deals between publishers & buyers.
Automated
Guaranteed
Workflow automation and execution channel for direct sold reserved inventory.
Bid Request/
Bid Response
Action in auction where SSP solicits all requests for bids, and DSPs respond with bids.

5. ‘programmatic’ defined
The Meredith Definition
Programmatic Advertising is machine-to-machine
automation of advertising/media transactions. This
typically involves machine-learning decisioning and
both biddable and non-biddable inventory, but currently
relies human input to create rules for both the buy and
sell side.
Some examples of programmatic:
Ad Networks
Search
Real Time Bidding
Automated Guaranteed

6. why is RTB growing so fast?
From past to present
Buyers
Sellers
Past Present
Execution Transparency
Cheap Media
High liquidity
High ROI on Direct Response
Scale
Data Collection
Transparency
Access to premium inventory
Contextual Relevance
Operational + Media efficiencies
Flexibility in planning
1st party data access
Yield Management
Revenue for unsold media
Sales Channel Conflict
Transparency
Premium Environments
Control
Scale
Operational Efficiency
Higher Yield
1st Party Data Usage

8. the programmatic evolution
Ad Networks
ad networks aggregated
inventory and sold it to
advertisers. helped
publishers by selling
inventory they could not
sell themselves.
Ad Exchanges
& SSPs
real-time
marketplaces with a
large pools of liquid
inventory not sold in
direct buys; SSP’s
have more controls
for publishers to
optimize yield
DSPs
Bidding technology
designed to help
advertisers/agencies
target and optimize
their buys across
multiple ad
exchanges/publisher
inventory pools
Reservation
Buying
ads sold via direct
transactions between
advertisers/agencies
and publishers
1990s
Private
Exchanges &
Automated
Guaranteed
Exclusive advertiser-to-
publisher inventory
relationships for
programmatic
purchasing in brand
safe environments
Programmatic
Premium
Direct Sold/
Guaranteed/
Reserved
Indirect/
Programmatic/
Unreserved
Now

9. actors & acronyms
Comparative analysis of the actors
AdNets
Started as budget
aggregators
Now seen as in
agency
specialists
No technology
Semi transparent
“Buy thru Us”!
Started as RTB
tech platforms for
Demand
Migrating to
become
operational
platforms (DMP/
DSP/Workflow)
All technology
Fully transparent
“Automation
solves all!”
Started (and still
are) large
aggregated pools
of sellers and
buyers
transacting via
RTB
All technology
Fully transparent
“Liquidity Rocks!”
Started as
perceived pub tool
Now seen as a
demand tool
No technology
Non-transparent
margins
"We have
publisher
exclusives" or
"Uh Oh"
ATD's DSPs Exchanges
Started as RTB
tech platforms for
Pubs
Migrating to
become
operational
platforms (DMP/
DSP/SSP/
Workflow)
All technology
Semi transparent
“Technology +
strategy = pub
success”
Started as tech
platforms to
collect and
manage data
Migrating to
become
execution
platforms for
using data
All technology
Fully transparent
“You can’t live
without us”
SSPs DMPs

10. MARKETPLACE
actors & acronyms
What role each plays in the ecosystem
10
ADVERTISER/AGENCY
PUBLISHER
DSP
ADVERTISERADSERVER
SSP
AGENCY
TRADING DESK
DMP
PUBLISHERADSERVER
SERVICES
DMP

11. players
Leading programmatic premium buying
HoldCo ATD DSP Clients

12. actors & acronyms
How each fits into the digital planning/buying universe now
With whom, and how, do we interact?
DSP
(Direct
Buying)Obs & Strats
Media mix planning/
Target development
Media specialist/
Budgeting & Planning
Digital Media Selection
MediaPlanningProcess
Client Marketing
Agency Strategy &
Planning
Planning Agency
Broadcast Out of Home Print AOR Digital AOR
Sponsorship
Agency
Programmatic
Agency (ATD)
Programmatic
budgets
typically split
here
AdNets
typically
bought here

13. actors & acronyms
How each fits into the digital planning/buying universe – where it is going in future
With whom, and how, do we interact?
Obs & Strats
Media mix planning/
Target development
Media specialist/
Planning & Budgeting
Digital Media Implementation
MediaPlanningProcess
Client Marketing
Agency Strategy &
Planning
Planning Agency
Broadcast Out of Home Print AOR
Digital Media
Planning
Specialists
embedded within
implementation
DSP
(Direct
Buying)
Sponsorship
Search,
Programmatic,
Mobile, Video

14. the agency reclaims budget control
Programmatic Budgets climb as % of total Digital Spend
> Half of Senior Ad Buyers allocate between 31-60% of digital budget
to programmatic
> By 2016, programmatic will be 65% of US Digital Spend
Programmatic Budgets determined at Agency Level
> Agencies have reclaimed control of programmatic budgets
> Agency Trading Desk Model is challenged i.e. Vivaki
> Agencies have created programmatic teams in-house
As Agencies drive budget, demand increases for innovative
products
> Viewability
> Rising Stars
> Guaranteed buys (thru AG or PMP G)

15. Advertisers and Agencies are putting a stake in the ground to fund and resource
programmatic initiatives in house
Retail + CPG + Financial Sectors = 52% of all spend in Q2 2014
scoping the market

17. how does a publisher manage its business?
> Price
> Delivery
> Sell thru (STR)
> Revenue
> Price
> Delivery
> Sell thru (STR)
> Revenue
> Yield
> Fill
> Transparency
> Data Leakage
& Protection
> Viewability
> Discoverability
Transaction
Automation
RTB World
Before RTB

18. PREMIUM
DIRECT
STANDARD
DIRECT
OPEN
PROGRAMATIC
> High CPM and yield
> Direct Demand
> Non Standard
> High Volume
> Guaranteed Delivery
> Prioritized remnant
> Repackaged media
> Undifferentiated media
> Demand-Supply
imbalance
prioritization in the ad server
a.k.a. “The Waterfall”
PREMIUM
DIRECT
STANDARD
DIRECT
PREMIUM
PROGRAMMATIC
OPEN
PROGRAMATIC
> Sponsorship
> Custom Executions
> Context Targeting
> Audience Targeting
> ROS & RON
> PMP
> SSP
> Ad Nets
Typical Publisher

19. layers of programmatic
Automated
Guaranteed
Private
Marketplace
Open
Market
Direct bought guaranteed
inventory access, non-RTB
Direct bought RTB based
inventory access
RTB based inventory access in
open marketplace
Predictable and scalable
high value placements
Controlled buying with
price agreements for bids
Efficient and targeted
audience buying
channels definition value
ProgrammaticDirect
Premium at scale, across all buying channels

20. deal constructionComponents in a deal and how each contributes
Sponsorship
Ideation for
Impact
Context
Scale within
environment
Audience Targeting
Driving awareness with
the right person
Programmatic Premium/PMP
High quality, efficient audience
and contextual scale
RON Media
Audience Extension
Additional quality scale for efficiency (as needed)
Audience
Targeting &
ROS
ROC
Scale within
environment
RON
Quality Scale across
environments
Use PMP to
replace
ROS & RON
KEY BENEFITS TO CLIENTS:
Ability to choose , maximizes spend,
relieves ops burden, lower net price
KEY BENEFITS TO PUBLISHER:
Boost direct, bigger deals, more PMP
volume, relieves ops burden

21. deal types & anatomy
HYBRID PARALLEL PROGRAMMATIC ONLY
PROGRAMMATIC
MIGRATION
Description
Deal that combines Programmatic
Premium and Direct in one buy/
budget
Independent sales initiatives with
direct and programmatic teams
(coordinated)
Deal with existing or new client
where no direct business is
transacted
Transition of deal terms and
execution from direct to
Programmatic Premium
Proactive VS
Reactive
Proactive (pitched) or Reactive
(RFP)
Proactive Highly Proactive Reactive
Who Leads
Direct Seller and/or Programmatic
seller
Both Programmatic Seller
Direct Seller pre-transition,
Programmatic Seller post
Deal Content
Direct: sponsorship, takeovers,
unique media unavailable to PMP
Programmatic: PMP inventory
Similar to Hybrid deal PMP and/or AG products
All standard media that can be
migrated

22. what did he say??
‘Programmatic’ is an evolving set of capabilities and players
> What we have today will be outdated in 6-12 months
With Programmatic Premium, Sellers and Buyers are more
aligned
> Transparency, Operational efficiency, effective reach, supporting
the marketer are areas of alignment
Spend your time with agency partners and client
> Tech platforms are still buying evergreen deals, but that isn’t where
the money is
Programmatic should not just be about yield or price
> Leverage in your strategy for client success
> Learn how to work with Demand Side Decisioning
> Use programmatic capabilities as a learning playground: win fast,
fail fast
The
Basics
– Defini&ons
– Why?
Landscape
– Market
Progression
– Actors
&
Acronyms
– Media
Buying
Publisher
POV
– Deal
Anatomy
&
Construc&on
– Deal
Types
– Key
Takeaways

23. PREMIUM
DIRECT
PREMIUM
PROGRAMMATIC
STANDARD
DIRECT
OPEN
PROGRAMATIC
> Sponsorship
> Audience Targeting
> Custom Executions
> PMP
> Targeted Media
> ROS
> RON
> SSP
> AdNets
prioritization in the ad server
a.k.a. “The Waterfall”
Meredith
PREMIUM
DIRECT
STANDARD
DIRECT
PREMIUM
PROGRAMMATIC
OPEN
PROGRAMATIC
> Sponsorship
> Custom Executions
> PMP
> SSP
> Ad Nets
Typical Publisher
> Context Targeting
> Audience Targeting
> ROS & RON

24. proprietary data shapes everything we do
FOOD
pregnant women
parents
w/ kids 0-2
parents
w/ toddlers
active families
tweens & teens
free birds
healthy living
auto
travel
beauty/fashion
finance
pet owners
cleaning
home
decorating
gardening
offers
walmart shoppers
target shoppers
fashion retail
big box shoppers
sam’s club
shoppers
kroger shoppers
publix shoppers
milk drinkers
dessert
food lifestyle
meat lovers
holiday meals
cheese heads
soft drink
breakfast
pasta
vegetarians
BBQ + grilling
seafood lovers
condiments
soup lovers
juice lovers
coffee / tea
ADDITIONAL OVERLAYS & PACKAGES
demographics, price sensitivity, engagement, lifestyle, psychographics, seasonal
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