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WTF is programmatic?

Real Time Bidding Cheap

Remnant inventory Crappy inventory

Race to the bottom Automation Efficiency

@carlkalapesi

•  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 @carlkalapesi

Promise of programmatic:

Right Message + Right Person + Right Time

At Scale

Personalization at scale?

3 @carlkalapesi

So what is programmatic?

4

The process of buying and selling media in an

automated fashion usually with data

Image credit: www.deviantart.com

@carlkalapesi

Programmatic is more than RTB…

5

Invitation-Only Auction (Private Auction)

Fixed

Reserved

Auction

Unreserved

Open Auction

Automated Guaranteed

Non-Guaranteed Fixed Rate

(Preferred Deal)

How price is

set

Type of inventory

Real Time Bidding (RTB)

5 @carlkalapesi

Cutting through the crap… Three key questions for working out what “type” of programmatic transaction you are dealing with… 1.  Is the inventory reserved or unreserved?

2.  Is the price set fixed or set by auction?

3.  Can anyone buy or is it by invite only?

6 @carlkalapesi

Defining the different types of programmatic

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Type of Inventory

Pricing Who?

Automated Guaranteed (aka Programmatic Direct)

Reserved Fixed One-One

Unreserved Fixed Rate (aka Preferred Deal/First Look)

Unreserved Fixed One-One

Invitation-Only Auction (aka Private Auction)

Unreserved Auction One-Few

Open Auction Unreserved Auction One-All

@carlkalapesi

Together often referred to as a

“Private Marketplace

(PMP)

Typical Publisher Waterfall

8

Direct Sold/Automated Guaranteed

Unreserved Fixed Rate

Invitation-only Auction/Private Auction

Open Auction

@carlkalapesi

Programmatic is big, across sectors and growing fast

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Source: eMarketer, Oct 2014

2013 2014 2015 2015

140%

48%

37%

US Programmatic Ad Spend, $B Sectors and Brands

Top Sectors •  Retail •  CPG •  Financial •  Auto •  Telecom •  Travel

Top Brands •  Target •  Kelloggs •  Gap •  Chrysler •  Comcast •  Verizon

Source: Index Exchange, Q3 2014

@carlkalapesi

So what actually happens in RTB

11 @carlkalapesi

1  Programmatic = automation with data

2  Programmatic > RTB ●  Automated guaranteed ●  Unreserved fixed rate ●  Invitation-only auction ●  Open auction

3  Ask 3 questions to cut through the crap - what type of inventory, how price is set and who can buy?

3 things to remember

12 @carlkalapesi