programmatic as a means to meeting your marketing goals by darragh daunt - incisive create ad...
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Google confidential
Programmatic as a
Means to Meeting
your Marketing Goals
Darragh Daunt
Marketplace Development
Google confidential
Google Marketplace Development team
connects brand advertisers with premium
publishers through programmatic ad trading
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WHAT is programmatic media trading ?
WHY do we need it?
HOW is it working in practice?
Questions
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What is Programmatic
Media Trading? What does programmatic trading mean?
How does it differ to current media trading? How big is this market?
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Fax Machines Cutting & Pasting
Programmatic buying is the process of executing media buys in
an automated fashion through digital platforms such as:
exchanges, trading desks, and demand-side platforms (DSPs).
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The programmatic vision of media buying....
Media plan in Excel
Phoning media owners for avails
Approval from clients
Negotiations and buying
Collect creative specs
Sign & fax IO’s
Upload to iDESK / Adazzle
Trafficking & send tags
Pulling reports / cutting & pasting
Media plan in DSP
Check Exchange or use RTB
No change here!
Private Auction / First Look / RTB
Dynamic / One size fits most
Eradicated
Same but fewer billing points
Generated by the DSP
Live dashboard
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Programmatic trading has moved from
concept to reality
RTB Impressions
on AdX 2010-2012
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20% of Display spending projected to be
delivered programmatically in 2013
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Why do we need Programmatic
Media Trading? What is the value proposition? How is it being received in the market? What’s
in it for publishers?
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Targeting and operational efficiency benefits
make programmatic attractive to marketers
Audience Buying Real-time decision-making for every impression.
Consolidation Consolidation of buying points and channels.
Data Targeting users with 1st & 3rd party data.
Efficiency Less time spent faxing and trafficking. Greater ROI from
universal frequency capping and centralised re-targeting.
A+B
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Google Confidential and Proprietary
Kelloggs On ROI:
We’ve seen tremendous results when using programmatic buying. Depending on the brand, the digital media ROIs have increased as much as six times, according to our 3rd party market mix models.
Kelloggs On efficiency:
Bottom line, programmatic buying is more efficient, more effective and more transparent than the traditional digital media buying model. It’s more efficient because it’s automated and eliminates expensive overhead.
Bob Arnold, Associate Director of Digital Strategy, Kelloggs, Nov ‘12
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Buyer feedback has been positive
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For publishers, data-infused programmatic
buying on quality inventory will grow CPMs
Forrester: Data, program buying to support $28 Billion for
Display Media in 2017, MediaPost Oct, 10th, 2012
Emerging ad types and pricing models will get a bigger share of budgets by
2017, according to the report. Program media, fueled by audience targeting,
will offer the best performance. As marketers compete for similar audience
segments and number of bids increase, average CPM prices of exchange
impressions will rise from $3.17 to $6.64 by 2017.
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How does Programmatic Media
Trading work in practice? What are private marketplaces? What programmatic strategies are buyers and
sellers using?
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Programmatic buying brings with it new,
safer ways of connecting buyers & sellers
Ad Networks
ad networks aggregated
inventory and sold it to
advertisers. helped
publishers by selling
inventory they could not
sell themselves
Ad Exchanges
a real-time
marketplace with a
large pool of liquid
inventory not sold in
direct buys
Reservation Buying
ads sold via direct
transactions between
advertisers/agencies and
publishers
1990s
today
Private
Exchanges
Exclusive advertiser-to-
publisher inventory
relationships for
programmatic
purchasing in brand
safe environments
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Open Auction
Private Marketplaces offer preferential
access in return for higher CPMs
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Preferred Deals Private Auctions
Private Marketplace Options
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First Tier:
Preferred Deals
Second Tier:
Private Auctions
Third Tier:
Open Auction
Fixed-price, Pre-auction
deal with one buyer.
2nd price auction with
select group of buyers.
Variable CPM floors set
per buyer.
2nd price auction with
all buyers, minus
those blocked.
Publisher Fixed Price
Deal One Buyer
Publisher
Private
Auction Select Buyers
Publisher Open
Auction All Buyers
How the Private Marketplace options work
together with the open auction
Description
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First look at user is possible where ad server
and ad platform integration exists
Direct Sales
Open Auction
Preferred Deal
Private Auction
Direct Sales
Open Auction
Preferred Deal
Private Auction
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Deliver a targeted brand message to that
user within the creative
• Headline – weather based
• Product images – weather based
• Product copy – product based
• Local Lowe’s – IP zip code based
• Call-To-Action – User interest based
• Footer image – weather based
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Buying and selling is easy through the
Marketplace UI
Solicit offers, negotiate, and execute, all without sending an email or picking up
the phone.
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Several common publisher strategies on
Private Marketplaces (PMPs) are emerging
1) Develop PMP relationships with existing direct advertiser clients to
provide more ways to help them meet marketing goals
2) Use a PMP as a channel to engage with new advertisers where no
relationship has existed previously
3) Give existing programmatic buyers in the open auction preferential
access in return for higher CPMs
4) Look at programmatic PMPs as way to automate some parts of an
existing a buyer relationship
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Questions?
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