intro to programmatic advertising with matt prohaska from prohaska consulting
TRANSCRIPT
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A Programmatic Primer: Introduction to the World of Advertising Technology
Matt Prohaska CEO & PRINCIPAL
February 15, 2017
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Who Is Prohaska Consulting?
• “Solving Digital Complexity”• Advise Publishers, Ad Tech, Investors,
Industry Groups, Agencies, Brands• Display, Mobile, Video, Search, Social,
Email, Native, Radio, TV/Video, OOH/DPB, IoT
• Team of 90+ experts globally• NA, EMEA, LATAM, & APAC• Expertise includes Sales, Ops, Marketing,
Strategy, Research, Biz Dev, Analytics, Product, Tech Dev
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Before We Get Started, Anyone Feel Like This?
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Why AdTech Is So Important?
Current Focus
For Both Buyers & Sellers
Previous Focus
Efficiency+
TargetingLower CPMs
Speed
Efficiency
Lower CPMs
Speed
Targeting
Quality
The definition of efficiency changes from lower cost to
eliminating waste by paying the right price for each impression
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Defining Programmatic Advertising
• Programmatic is an automated, technology driven, data informed method of buying, selling, & fulfilling advertising
• Replaces the traditional use of manual RFPs, negotiations, & insertion orders to purchase digital media
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200 MILLISECONDS: THE LIFE OF A PROGRAMMATIC RTB AD IMPRESSIONReal-Time Bidding (RTB) Explained
“Jane Doe” clicks on URL. Publisher content begins to load.
Publisher may find information it has stored on Jane Doe, possibly in its DMP.
Publisher sends available info to its ad server asking if an ad campaign is available to target Jane Doe. If so, an ad is served.
If no campaign targets Jane Doe, the server seeks to match the impression programmatically, seeking response from selected traders, ad networks and SSPs.
If impression isn’t cleared, server may seek to clear it in programmatic direct via private exchanges. If not cleared, request is sent to an open ad exchange, seeking liquidity.
If impression isn’t cleared, server may seek to clear it in programmatic direct via private exchanges. If not cleared, request is sent to an open ad exchange, seeking liquidity.Source: Mediacrossing
Each bidder processes bid requests, overlaying with added user data and marketers’ target and budget rules. Each bidder evaluates requests, selects creative and sends with optimal bid price to ad exchange.
Ad exchange selects winning bid from bidder responses through 2nd price auction.
Ad exchange sends winning ad URL and price from winning bid to Publisher’s ad server, which tells Jane Doe’s browser which ad to display.
Jane Doe’s browser pulls ad from winning bidder to ad server and sends matching ad to browser. Browser displays web page including matching ad.
Winning bidder’s ad server receives ad tag data on Jane Doe’s initial interaction experience.
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SHOWING THE PLUMBINGProgrammatic Buying
Social DataTools
DATA Data Suppliers DMP Data
Exchanges
Metrics
Audience Metrics
Web Analytics
Post Evaluation (Ad Effectiveness)
Affiliate NetworkSales House
Ad Network
Publisher
Ad Server
Ad Server
MediaAgency
Advertiser
AS OF TODAY ;-)Agency Trading Desk (ATD) Players by Holding Co.
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Holding Company Agency Examples Trade Desk
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Buyers Landscape - DSPs
Self Serve Platform
Programmatic Network
Managed Service Platform
• Self Service vs. Managed-Service• Holding companies reducing usage
of managed service• Significant pressure on Ad Networks• Transparency challenges
• The Ad Network Evolved• Rocket Fuel, Criteo, Xaxis,
Quantcast, Exponential• The New Holding Company?
• MediaMath → Helix (Adroit), Kepler, Huddled Masses, Big Lens
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DMP: Data Management Platform
Data Type Meaning1st Party Your audience
2nd Party Your partners’ audience
3rd Party Others’ audience
Features What it doesTag Management Used to collect data into the database
Data Classification Organizes and protects data
Segmentation and Modeling Builds segments and lookalike models to expand your pool of targetable data Example: takes your 1 MM existing targets and finds 4MM similar
Media and Data Integration Connects your data to DSPs, SSPs, Exchanges, and 3rd party data providersEnables you to merge data in from other sources
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Brand Research
Offline segmentation, Digital ad impact..
CRM Database
Transactions, Segments, products, etc…
Campaign Data
Clicks, impressions, Interactions, conversions…
Audience Data
Demographics, Web, and Search Behavior…
Segmentation
Application of Data
Audience Modeling
Analytics
Huge Variety of Data Sources
Social
Mobile
Display
Search
Online/OfflineSubscriptions
DATAMANAGEMENT
PLATFORM
Source: Xaxis A Data Management Platform
DMP: Data Management Platform
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Understanding the Publisher’s DMP
PublisherX.com Audience Extension (BT)
PublisherX.com/Autos
PublisherX.com Network Audience Extension
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Your Trading Desk
• Converting Ops teams to Inventory Buyers
• Control cookie pools, frequency, margin• Self-service or managed-service• Potential replacement for integration
between DMP & bidders• Including Marketing/House “spend”
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Understanding the Publisher’s Ad Server
User
1. Page Request
2. Page with Ad HTMLPublisher Web Server
Publisher Ad Server
3. Ad Request
4. Ad
• Little major change in 20+ years• Key to setting up inventory waterfall• Critical to integrate with rest of tech
stack• Pressure on Ad Servers coming from
Header Bidding
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SSP: Supply-Side Platform (The Exchange)
EXCHANGE
TRANSPARENCY
PERFORMANCE
BUYERS
BUYERSSELLERS
SELLERSRICH MEDIA
VIDEOMOBILE
BANNERS
AUDIENCEREAL TIME BIDDING
SAFETY
• Where the buying and selling happens
• Originally built for buyers to handle publishers’ (f.k.a.) “remnant” inventory
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Open vs. Private Marketplaces: Retail Analogy
Open Private
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SCOREBOARD OF KEY DIFFERENTIATING FACTORSHow To Decide Who To Work With
• Business Terms• Product flexibility• Multi-Channel usage• Access to unique/all supply/demand• UI – user interface• Client Service
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TV, Radio, OOH – 2nd Mover Advantage?
C
DSPs
Networks
SSPs
MVPDs
Unwired Networks
National Broadcasters
Cable Networks
View
ersA
dver
tiser
s Ad Insertion Systems
Consumer DMPs and Networks
Creative Management Platforms
Measurement/Analytics
C
Station Groups
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Join several LinkedIn Groups
Plus
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Reminder: Mastering This Won’t Happen Overnight
Thank You!
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Matt ProhaskaCEO & PRINCIPAL
+1 917.597.6568
@MattProhaska, @TeamProhaska