Programmatic: Diving In
Carl Kalapesi Head of Industry Initiatives
IAB Twitter: @carlkalapesi
1
So what is programmatic? Cheap?
Real-time bidding (RTB)? Remnant and crappy inventory?
Race to the bottom? Automation? Efficiency?
• Technology can deliver benefits through automation
• The object of “engagement” shifting to the audience—not the channel
• Rich datasets can fuel the identification and engagement of target audiences
Several themes have come together…
2
Promise of programmatic:
Right Message + Right Person + Right Time
At Scale
Personalization at scale?
3
The process of buying and selling media in an automated fashion
Ultimately, programmatic is…
4
Programmatic is more than RTB…
5
Invitation-Only Auction (Private
marketplace)
Fixed
Reserved
Auction
Unreserved
Open Auction (Open
Marketplace)
Automated Guaranteed
(Programmatic Guaranteed)
Unreserved Fixed Rate
(Preferred Deal)
How price is
set
Type of inventory
Real Time Bidding (RTB)
www.iab.net/programmatic 5
RTB - Different ads to different users
6
So what actually happens in RTB
http://www.iab.net/simplified
Click image or here to play video
8
Open vs. Private Auction: Retail Analogy
Open
9 Source: Matt Prohaska, Prohaska Consulting
Private
Simplifying the direct deal…
10
P U B L I S H E R
A D V E R T I S E R
EMAIL PHONE
SPREADSHEET AUTOMATED GUARANTEED PLATFORM
1 Concerns over transparency, fraud and trust
2 Fear, limited understanding and knowledge
3 Confusion over terminology
4 Moving from DR to branding dollars
5 From banners to native, video, rising stars, audio…
6 Internal organizational challenges in brands & publishers
7 Delivering different creative through programmatic
Lots of challenges remain…
11 www.iab.net/programmatic