For  Context,  A  Li.le  About  Prohaska  Consul7ng  

•  “Programma7c  Help  For  All”  •  Publishers, Ad Tech, Agencies, Brands, Industry, Investors •  60+ clients in the last year+ •  30+ different ad tech vendor reviews last 3 years

•  Current  ac7ve  freelance  team  of  28  in  7  ci7es  •  Sales, Marketing, Operations, Biz Dev, Analytics, Tech Dev

•  Ma.  Prohaska,  CEO  &  Principal  •  In digital advertising since ‘94 •  Former Programmatic Advertising Dir. @ New York Times ●  Closed more programmatic direct deals than any other

publisher in the world during 10 months there

Most  U.S.  Pubs  Are  Now  Beyond  This  Reac7on  

Source:  AMC,  Mad  Men,  2014  

And  This  Reac7on…  

Source: Raising Arizona, 1987

What Benefits Come From Programmatic?

Efficiency    

Lower  CPMs  

Speed   Audience  Targe7ng  

4 Programmatic Transaction Types 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

www.iab.net/programmatic

Trend Line

Open vs. Private Marketplaces: Retail Analogy

Open Private

www.iab.net/programmatic

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.

Programmatic Team Culture vs. Strategy

•  Spectrum of sales talent: lean-in vs. fear/head-in-sand

•  Similar to digital SME sitting down the hall

•  Operations often “driving the bus,” not sales •  Salespeople are spending more time on

creative, strategic, proactive; not losing their jobs.

•  As with Brands & Agencies should be considered part of an overall strategy for optimizing revenue.

•  1: Pipes: Programmatic born from the AdOps team, implementation & set up •  2: Education: Separate team built to drive programmatic conversations •  3: Consultative: Team/individual leveraged as SME to co-sell & help drive revenue

•  Stage 4 happening now: Full Sales & Ops integration •  New York Times only pub in world then doing Stage 4; now 15+ publishers in U.S.

Staged Approach to Programmatic Selling

From Nov. ‘13 - www.iab.net/programmatic

Holding Company/Trade Desk Mapping (for the most part, as of today ;-)

Holding Company Agency Examples Trade Desk

www.iab.net/programmatic

Buyers Landscape – Clients

•  Many top clients bringing their practice “in-house”

•  Netflix à (from Programmatic I/O ‘14)

•  Also P&G, Kellogg, 800-Flowers

•  <15 brands in U.S. today •  Mostly CPG & Retail •  Financial next (AllState)

Leveraging Your Tech Stack – Why?

•  Sales & Operations working together more than ever

•  No longer simply throw the IO over and let traffic get creative and tags

•  Opportunity for Operations to take more control and drive the campaign for you

•  Hunters and farmers •  “A good craftsman never blames his tools.”

Leveraging Your Tech Stack - Definition

•  A series of technologies (internal/external) that allow you to transact media programmatically

•  Ad server(s) •  Exchange(s) •  Yield Management Tool •  Data Management Platform (DMP) •  Publisher Trading Desk

Your DMP à Your Data Management Platform

Your DMP à Your Data Management Platform

•  Buyer-focused originally •  Publisher-focused more in the last 18 months •  1st Party = your audience

•  Behavior, demo, geo, viewability, site-level, category level •  The more granular the targeting the higher the pricing

•  3rd Party = others’ audiences •  Lookalike targeting •  Expand the pool (you have 1M,

go find 4M more similar)

Your DMP

•  New products – Audience Extension (on-site, off)

PublisherX.com Audience Extension (BT)

PublisherX.com/Autos

PublisherX.com Network Audience Extension

Your DMP – The New “Green Ring”

Your Yield Management

•  Balance of sell-thru rates vs. CPM •  Price floors – global, by-vertical, by-buyer, by-client

•  Guaranteed vs. Non-Guaranteed •  Dynamic Allocation, or dynamic allocation

•  TV: Upfront vs. Scatter vs. Opportunistic sales •  Display, Mobile, Video, Social

Your Trading Desk

•  Your Operations team buys your audience on exchanges

•  Control cookie pools, frequency, margin •  Self-service or managed-service •  Potential replacement for integration b/w

DMP & bidders, including Marketing/House “spend”

5 Stages of Selling

•  Prospecting •  Intros & Pitching •  Proposing •  Closing/Launching •  Optimizing/Upselling

Stage 2: Pitching – Show Apples & Oranges

•  Know what they are buying 10 reasons programmatic is different from your IO

(i.e. Why IOs are $12 and programmatic is $1.20) 1. Not guaranteed inventory 2. Only 300x250, 728x90, 300x600? 3. No competitive separation 4. No roadblocks 5. No SOV 6. No fixed positions 7. Only top-level channel targeting? 8. Not served “first-look” 9. No product placement/custom sponsorships

10. No Added Value needed; agency “kickbacks”

Stage 5: Optimizing/Upselling •  Campaign delivery

•  Seen through your exchange dashboard •  Kick out reports from Ops or view on your own

•  Managing Expectations •  Non-Guaranteed •  Rhythm/cadence of performance reporting

•  Setup weekly 15-30-minute call with Ops/client/ATD/DSP to review data

•  This can be set it & forget it, but you will make more if you pay attention with Ops

Stage 5: Optimizing/Upselling •  More Opportunities to Grow Business

•  Trading margin for share, based on CPx outcomes

•  Adding an IO based on current exchange limitations for more sophisticated inventory, creative

•  All the items on your Top 10 Apples & Oranges slide

•  Brand awareness working together with DR •  Positive (frequency) & negative (reach) re-targeting

Where  Programma7c  S7ll  S7nks  Today  

•  Some  Deal  ID  technical  pain  •  Guaranteed  delivery  •  Price  transparency  •  Audience  discovery  •  Tech  not  built  equally  for  sellers  and  buyers  •  Human  sellers  and  human  buyers  working  together  to  solve  marketers’  problems  

Remember: This Isn’t Happening Overnight

Source: The Matrix, 1999

Thank You!

Matt Prohaska CEO & Principal

matt@prohaskaconsulting.com 917.597.6568

@mattprohaska linkedin.com/in/mattprohaska