THE EVOLUTION OF DIGITAL BUYING Introduction to programmatic advertising
By Amal Al Homosany
TRADITIONAL BUYING MODEL INVOLVED 2 PARTIES ONLY
Advertisers/ agencies and publishers negotiated inventory and budgets over a
given period of time and ads were run.
Brands Agencies
BUT THEN, THE PROCESS BECAME COMPLEX
More publishers and more inventory became available, CPM inflation, unsold
inventory for publishers and more FRAGMENTATION of audience habits
Brands Agencies
THEN AD NETWORKS CAME ALONG AND AGGREGATED PUBLISHERS INVENTORY INTO PACKAGES
Brands Agencies
Google Display Network
Yahoo Network
Exponential Network
Value Click Network
Advantages:
Advertisers: Centralized buy, lower
cost
Publishers: Revenue from selling
inventory at scale
Disadvantages:
Advertisers: less transparency and
control, less relevance with audience,
Publishers: Display fragmentation,
unsold inventory
YOU COULD REACH A LOT OF PEOPLE, BUT NOT ALWAYS THE RIGHT PEOPLE
The lack of relevance, transparency and robust data led to the birth of
PROGRAMMATIC BUYING
Audience buying Audience without
proxy
Contextual buying Content as proxy for
audience
SO WHAT IS PROGRAMMATIC BUYING?
A way of using technology to automate the buying and selling of
media
In simple terms
SOURCE:
WHAT IS REAL TIME BIDDING?
SOURCE:
buying and selling of ad impressions on an
online auction marketplace (or ad
exchange) in real time
Allows showing different ads to different users based on DATA
about those users
Right Ad
Right User
Right Time
SO HOW DOES RTB WORK?
Flat CPM
Value all people equally
Programmatic Dynamic
CPM
Value people differently
SO IS RTB & PROGRAMMATIC THE SAME THING?
RTB is a type of programmatic advertising; but not all programmatic
advertising uses RTB.
Some “programmatic” or technology-driven ad platforms let publishers sell
their inventory in advance for a fixed price, as opposed to auctioning it off.
Programmatic Buying
Open Auction
Invitation Only
Auction
Unreserved fixed rate
Programmatic Premium
A CAMPAIGN BOUGHT PROGRAMMATICALLY IS EXECUTED USING MULTIPLE BUYING MODELS
Transparency, 1st party publisher data, 3rd party imp data, fixed CPM
Limited transparency, Scale, 3rd party imp data, variable CPM
Transparency, 1st party publisher data, 3rd party imp data, fixed CPM, fixed inventory
Programmatic
Premium
VIDEO
SOME RTB TERMINOLOGY
DSP (Demand side platform): uses RTB from one or more Ad
Exchanges to access inventory and make buying decisions
Ad Exchange: platform that makes display inventory available
(from different ad networks) for purchase from DSPs via RTB
SSP: platform that enables publishers to manage their ad
impression inventory and maximize revenue from networks and
exchanges
RTB HAS REACHED THE REGION & WILL CONTINUE TO GROW
By 2017, up to 50% of digital ad spend will be bought programmatically
Source: International Data Corporation (IDC), "Real-Time Bidding in the United States and Worldwide, 2011-2016" sponsored by PubMatic, Oct 23, 2013
SO WHY PROGRAMMATIC BUYING?
DATA DRIVEN AUDIENCE INTELLIGENCE
CONTENT OPTIMIZATION, RELEVANCE AND USER EXPERIENCE
SCALE & SPEED THROUGH PROCESS AUTOMATION
USING MULTIPLE BUYING STRATEGIES ACROSS VARIOUS CHANNELS
Mobile|Display|Video|Social
CHALLENGES OF A PROGRAMMATIC ECOSYSTEM
PUBLISHERS FEAR DIMINISHED PRICING POWER, MARGINS
VIEWABILITY & AVAILABILITY OF PREMIUM INVENTORY
FORMAT PROLIFERATION
AGENCIES RESPONDED TO THE BUYING MODEL EVOLUTION BY CREATING AGENCY TRADING DESKS
•Is a massive media buyer and reseller for display media
• Usually an independent unit within an agency network
• A dynamic way to purchase audiences
• Media is purchased in real time rather than from pre-procured inventory
• Takes search (an auction based model) and applies that to display media;
in a real time fashion like a stock exchange
• A platform that uses data and technology to help advertisers more
effectively purchase audiences at scale across digital media.
AMNET IS A SPECIALTY BRAND OF DENTSU AEGIS NETWORK
BY UNDERSTANDING HOW CONSUMER BEHAVIOUR IS CHANGING…
The consumer journey is no longer linear. Breaking up the funnel doesn’t allow you to fully understand consumption habits.
Traditional Funnel Dynamic RTB Funnel
Awareness Advertising
“In-Market” Data
Retargeting
£
COMPRISED OF PEOPLE, EXPERIENCE & EXPERTISE…
*Technology-Agnostic:
*Scale: Access to 20+
Exchanges & SSP’s
*Private Marketplaces
*Screen for ad clutter,
content, & viewability
*White/Black list
*Pre-bid integration
*Centralized Data
Management
*Audience Discovery:
*Audience Insights
*Reduced Wastage
*Defining audiences
*Contextual &
Semantic targeting
*Dedicated Client
Services team :
*Digital Intelligence:
*Data Transparency:
IT’S KEY TO NOTE THAT
AMNET ISN’T ABOUT REMNANT INVENTORY AND CHEAP CLICKS. ITS ABOUT EFFICIENCY & SCALE
PREMIUM:
Most of the regional and international websites are
connected
RICH MEDIA:
High Impact site skinning, takeover, billboards,
video ads etc.
MULTISCREEN:
PC, tablet, mobile and even IPTV
TARGETTED:
Accurate and real-time targeting
DATA DRIVEN: Majority market players ready for
partnerships to share data
ALONG WITH OPEN EXCHANGES, WE HAVE ACCESS TO PREMIUM PUBLISHERS
HIGHEST LIQUIDITY MARKETS: • Egypt has 6.5b monthly impressions
• Saudi Arabia has 8b monthly impressions
• UAE has 6b monthly impressions
BOTH HIGH-IMPACT AND PERFORMANCE DRIVEN ADS CAN BE BOUGHT PROGRAMMATICALLY
Mobile interstitials Pre roll videos Billboard
AMNET HAS A STRINGENT PLANNING FRAMEWORK
KPI’s
Affluent Arab males and females interested in fashion, luxury
lifestyle, travel cars etc.
Searching for luxe holidays, 5* star resorts, 1st & bus class travel etc.
Male & Female targeted fashion, lifestyle, entertainment websites
Online shopper, in market for expensive air tickets, hotels, dining
& entertainment etc.
Users who have visited client website pages
Behavioral
Search retargeting
Custom environments
Purchase intent targeting
Remarketing
Targeting strategies Audience discovery Channels Goal 3 4 2 1
DATA IS KEY AND IS USED CLEVERLY
TO MEET CAMPAIGN GOALS
Campaign Objective Primary KPI’s
And Goals
Success Measurements:
Value generated Digital media
metrics
Drive Awareness
Reach consumers at scale
Delivered Imps, Unique users, Cost
efficiency, eCPM, eCPC
Increase Engagement
Product pages, Video views
Pages viewed, time spent, video plays
eCPC, CPV, Bounce rate
Conversions Downloads, Entries,
purchase
Forms and quotes submitted, app
usage, ROI
eCPA, CPD, CPB
IN ORDER TO BUILD A SINGLE VIEW OF THE CUSTOMER
Anonymous User 111000111002
• Data on users who have visited advertiser website and their browsing behaviours.
• Purchased from 3rd party data providers, based on intent, likelihood and potential
• Real-time search query behaviour reflecting consumer intent and behaviour on-site.
1ST PARTY
DATA
3rd Party
Data
Search
• Campaign data generated from responses to advertising on display, mobile and video. Media
Campaign
Data
ACTIVATED AND OPTIMIZED IN REAL TIME
Customer X • She is 28 years old, married and lives in
Dubai, United Arab Emirates
• She is a university graduate with high disposable income working in the Finance sector.
• She is a travel enthusiast and a marathon runner with an active social life which is influenced by her love for fashion.
• She visits sites like TimeOut Dubai, Ahlan, Style.com, BBC & stays in touch with her family through Facebook and skype
Demo/Geo
Psycho
Behaviour
Site/
Context
• Her device of choice is an iPhone, laptop during work hours and a Samsung Galaxy tab in the evening while TV. Platform
IN ORDER TO PROVIDE VALUABLE AUDIENCE INSIGHTS
Deep dive insights are provided on a quarterly or end of campaign basis*
Deep dive reports are a result of extensive site tagging and availability of 1st
party data
WHAT’S NEXT FOR PROGRAMMATIC
Lookalike Modeling
Matching audience members across mobile and other devices
Non-cookie solutions
