ve interactive demystifying programmatic webinar
Post on 10-Feb-2017
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Lunchtime Sessions: Demyst i fy ing Programmatic
GARETH NEVILLERetail Sales Director at Ve Interactive
INTRODUCT ION
Please tweet any questions to @veinteractiveor email Gareth.Neville@veinteractive.com
Ve INTERACT IVE
31+ OFFICES
43 TERRITORIES
19 LANGUAGES
WHAT WE’LL COVER
• What is programmatic?
• What are the benefits of using it?
• How does it work?
• Reporting metrics
• Optimisation
• Q&A
PROGRAMMAT IC WORLD
An estimated 20 billion dollars being spent in 2016
The fastest growing
medium…
PROGRAMMAT IC WORLD
Study shows only 23%of marketers understand programmatic buying.
DSP RTB
SSPDMP
All images are for illustrative purposes and are indicative only.
more than half still rate their knowledge as very poor/average
1 year later
WHAT IS PROGRAMMATIC?
83% of all display buys will be programmatic by 2017 (eMarketer)
• Any inventory (ad space) bought automatically through either bidding for the space or buying it directly.
• Increase efficiency
• Inventory measured in impressions – opportunities to show an advert
Programmatic=
Automatic
BEFORE
THE BENEF ITS OF PROGRAMMAT IC
AFTER
• Ads bought/sold manually
• Bulk impressions bought ahead of time from different sites & repackaged to be sold
• No transparency
• Inefficient & unreliable
• Faster
• More efficient
• Less expensive
• More granularity & control over campaign performance
RTB , DSP , SSP
Real-time bidding Demand-side platform
Supply-side platformOr sell-side platform
RTB DSP SSP
Inventory bought & sold on a per-impression basis via instantaneous programmatic auctions
Platform that allows buyers to manage multi ad exchanges, data exchange accounts & campaigns
Platform that lets publishers manage ad inventory & maximise revenue from digital media
Let’s start with some basic terms…
AD EXCHANGE
ADEXCHANG
EPlatform where ad space is bought and sold online. This is a technology driven approach
TRAD ING DESK
TRADINGDESKGroup of traders within an agency/ad company known as experts in their use of technology.
The traders are responsible for daily optimisation of campaigns & driving efficiency from budgets.
DATA IS K EY
COOKIES
• Info stored on a person’s computer by a web server
• It’s retrieved when the user accesses a website
• Record a users unique behaviour during each visit
3 TYPES OF DATA 2nd Party Data
• 1st Party Data obtained from an agreement with another publisher
1st Party Data
• Data owned by the advertiser
• Converted customers are the most valuable data
3rd Party Data • Data from an external
company
• eXelate, Blue Kai, Neilson
• Segmented by age, gender, demographic, interest & intent to purchase
DATA IS K EY
Data Management Platform
DMPData combined from a number of sources to generate audience segments for improved targeting
DMP
4 TYPES OF INVENTORY
• Real-time bidding
• Variable CPM
• Open to any buyer
• Majority of performance buying and direct response activity
• Pricing determined in real time when the ad is served
4 TYPES OF INVENTORY
• Real-time bidding• Strict price floors
• Invitation-only buyers
• PMP spend has tripled over the last 3 years
• Gives advertisers more control over where ads run
4 TYPES OF INVENTORY
• Abbreviated to PMP
• Non-auction model
• Fixed CPM (pricing)
• Inventory not guaranteed (unreserved)
• Publishers make blocks of inventory with fixed, pre-negotiated pricing available to advertisers
• Advertisers can purchase inventory away from the open market
• Any inventory that’s not sold will often get sent off to auction
4 TYPES OF INVENTORY
• Non-auction model
• Fixed CPM (pricing)
• Guaranteed inventory
• Advertisers get more transparency into inventory they are buying from publishers
• Publishers get more control over which advertisers buy their inventory at specific prices
• Any deal that is negotiated directly between buyer and seller but executed through automation
4 TYPES OF INVENTORY
• AKA “programmatic guaranteed”
BUY ING PROCESS
Male, 35 years oldABC, married withchildren, likes cars
and travel
Auction Model
REPORT ING METR ICS
Cost per Acquisition
CPACost per Action
CPA
Cost per Click
CPCCost per Mille
CPMClick Through Rate
CTR= total marketing cost divided by
number of acquisitions= total marketing cost divided by
total number of actions
= total marketing cost divided by total number of clicks
= total marketing cost divided by number of impressions
= number of clicks the ad receives divided by number of times ad is
shown
REPORT ING
ACH IEV ING PERFORMANCE & OPT IM IS AT ION
ACH IEV ING PERFORMANCE & OPT IM IS AT ION
DSPLearning phase Optimised phaseSUCCESS EVENTS
Sufficient daily spend has to be allocated in order to reach an optimised phase
Tech based on algorithms that optimise throughout the campaign
Measure CPA & KPIs against the available budget
ACH IEV ING PERFORMANCE & OPT IM IS AT ION
At Ve Interactive, we have a team of traders who manually optimise campaigns for greater efficiency
ACH IEV ING PERFORMANCE & OPT IM IS AT ION
SUMMARY
• Basic terminology
• Benefits of programmatic & reasons to invest
• How the auction model works
• Reporting metrics & optimisation
For more information check out the IAB’s jargon buster.
Next time… Prospecting & Retargeting Strategies
For more information, please contact Gareth.Neville@veinteractive.com
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