The description we used to promote the webinar:

The Interactive Advertising Bureau reported that roughly 20% of all digital advertising is sold by one machine talking to another machine - and that number is growing rapidly. What is programmatic buying and selling? What does it mean for you as a marketer and how do you harness the power of this technology to reach more qualified users, more efficiently and at scale? Tune in for an intro to Programmatic Buying including the basic concepts and terminology, key players in the programmatic ecosystem, types of inventory as well as key terminology to put your best programmatic foot forward

Programmatic Advertising 101

What is programmatic and what does it mean to you as a marketer?

Goals for Today’s Session• What is Programmatic Advertising?• Key Terminology• The Current Ecosystem• Programmatic Buying Basics• Types of Inventory• Additional Resources

WHAT IS PROGRAMMATIC ADVERTISING?

Programmatic Advertising

Source: Association of National Advertisers and Forrester

Programmatic Advertising• At its very basic:  

machines buying ads

• …or the automation process of buying, placing and optimizing of advertising

Image Source: Ad Age

Your Amazon Experience

KEY TERMINOLOGY

Display LUMAscape

Source: LUMA Partners

Programmatic Terms / Acronyms

• Programmatic Buying / Selling– Buying: Bid Machine example– Selling:  Automation of the ad buying process

• Real‐Time Bidding (RTB)– Buying & selling of online ad impressions via real‐time auctions

– Within milliseconds (or the time for a web page to load)

Programmatic Terms / Acronyms

• DSPs (Demand‐Side Platforms)– One interface that allows buyers to manage advertising inventory across multiple publishers

• SSPs (Supply‐Side Platforms)– Software used to automate the advertising sales process

– SSPs used by publishers / DSPs used by marketers

Programmatic Terms / Acronyms

• DMP (Data Management Platform)– Data warehouse on a large scale– Stores, processes and crunches data that is useful/actionable to marketers

• Trading Desk– Purchases audiences across digital media in a real time fashion (similar to a stock exchange)

– Usually resides on top of a demand‐side platform (DSP)

Additional Terms

• Exchanges• Ad Networks• Ad Servers• Social Tools

CURRENT ECOSYSTEM

Display LUMAscape

Source: LUMA Partners

Current Programmatic Ad Landscape

• Programmatic spending will reach $9.8 billion in 2014

• According to eMarketer, U.S. advertisers spent up to $3.36 billion on “real‐time bidding” (the backbone of programmatic buying) in 2013

Organizations Buying Programmatically

Source: Mobile Marketing Magazine

PROGRAMMATIC BUYING BASICS

Programmatic Advertising Basics

• “Rise of the Machines”– Ads are bought like products on Amazon

– Auction based; buyer willing to pay whatever price an ad is worth at the moment

– Demographic based; buying specific audiences

– Machines handle the “human” processes—IOs, paperwork, spreadsheets, etc.

Programmatic Advertising Basics

• Programmatic buying vs. real‐time bidding (RTB)

• Are they the same thing?– Short answer = NO

• RTB is a type of programmatic ad buying, but not the only type or option

• RTB = real‐time auctions of ads; “programmatic direct” allows guaranteed ad impressions from specific publishers

The Process of RTB

Why DMPs?

• Client or agency resource used to store data

• Optimize client campaigns against previous results– Data warehouse on a large scale– Stores, processes and crunches data that is useful/actionable to marketers

TYPES OF INVENTORY

Inventory Types

• Type of Inventory– Reserved– Unreserved

• Pricing– Fixed– Auction

• Participation• One Seller—One Buyer• One Seller—Few Buyers• One Seller—All Buyers

Source: Interactive Advertising Bureau 2013

Inventory Types

Programmatic Terminology Map

Programmatic Inventory Definitions

Automated Guaranteed– Similar to digital direct sale or direct buy (e.g. homepage takeover)

– Programmatic aspect is the automation of the RFP & campaign trafficking

Programmatic Inventory Definitions

Unreserved Fixed Rate– Exchange environment– Fixed pricing that is agreed upon (CPM, CPC, etc.)

– Higher priority on the ad server vs. Open / Invitation‐Only Auctions (next slide)

Programmatic Inventory Definitions

Invitation‐Only Auction– Publisher decides buyer/advertisers participation via Whitelist/Blocklist

– Expectation on buyers to bid on inventory– Publisher can provide access to certain data sets, like Deal IDs or Line Items

Programmatic Inventory Definitions

Open Auction– Anything goes; any & all buyers welcome– Publishers have the option of Blocklists and floor pricing to allow some control/structure

– Advertisers usually unaware of what publisher they’re buying into

ADDITIONAL RESOURCES

Additional Resources to Help You Out

• Demand Side Platforms Explained– http://marketingland.com/beyond‐adwords‐an‐intro‐to‐demand‐side‐

platforms‐44139• Intro to Programmatic Buying

– https://retargeter.com/blog/strategy‐2/programmatic‐buying‐intro• Programmatic for Dummies

– http://www.adweek.com/news‐gallery/advertising‐branding/programmatic‐dummies‐153590

• IAB Programmatic & Automation– http://www.iab.net/media/file/IAB_Digital_Simplified_Programmatic_S

ept_2013.pdf

Q&A

Thank you!