PROGRAMMATIC

101 Emmy Spahr, Media Director, Programmatic

SapientRazorfish_

C O P Y R I G H T S A P I E N T R A Z O R F I S H | C O N F I D E N T I A L 2

WE ALL KNOW THE STORY Programmatic

predicted to be

82% of all

Display Dollars

by 2019

Source: eMarketer, September 2017

C O P Y R I G H T S A P I E N T R A Z O R F I S H | C O N F I D E N T I A L 3

1990s

~ 2010 ~ 2005

Publisher Direct Ads sold via direct

transactions between

advertisers/agencies and

publishers

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

Programmatic Media Bidding technology designed to

help publishers/advertisers target

and optimize their buy across

multiple ad exchanges

Early 2000s

BUT HOW DID WE GET HERE?

C O P Y R I G H T S A P I E N T R A Z O R F I S H | C O N F I D E N T I A L 4

SO WHAT HAS FUELED THIS EVOLUTION?

DATA

C O P Y R I G H T S A P I E N T R A Z O R F I S H | C O N F I D E N T I A L 5

DATA TYPES & PROVIDERS

1st Party Data 3rd Party Data

Advertiser’s owned

data •Website visits/actions

•Customer database

•Prospect list

•Direct mail list

•Offline transactions

Millions of Profiles •Demographic

•Behavioral

•Financial signals

•Psychographic, interests,

affinities

Sharing partnership

data •Such as CRM data

•Purchase data

2rd Party Data 3rd Party Data Examples

PROGRAMMATIC BUYING DEFINED

• Replaces the manual process of rate negotiation

• Helps ensure that the right message reaches the correct audience at the

right time

• Growing exponentially as more media inventory is made available through

more channels.

pro * gram * mat * ic buy * ing

Automated purchase of digital media, leveraging data-driven technology to reach

high-potential customers.

MATCHING BUYERS AND SELLERS

1. Every time an impression is available,

the exchange “asks” if you’d like to bid

(the “bid request”).

User on Site

3. You typically have milliseconds to respond with a bid (the “bid response”).

5. If you win the impression,

your creative is served.

4. What you bid is entirely up to you (you don’t have to bid if the impression is not valuable to you).

2. You get a variety of information, such as the site the impression is on, the time stamp, information about the user, etc.

ADX

Ad Exchange Demand Side

Platform

DSP

Data

Management

Platform

SSP DMP AD SERVER

Supply Side

Platform

BUYERS ad call with Ad

Verification, Dynamic Creative,

measurement tags

ADX Ad Exchange: A marketplace where available inventory is bought/sold

SSP Supply Side Platform: Enables Publishers to upload unsold inventory to Ad

Exchanges

DSP Demand Side Platform: Provides access to Ad Exchange inventory

DMP Data Management Platform: Data warehouse which can be leveraged for

curating and targeting audience segments

Programmatic Tech Stack Acronyms to Know

Inventory

Ad

Exchanges

Publis

hers

B

rand

s

Media

Ag

ency

DSP SSP Direct

Integrations

DM

P

AD

SE

RV

ER

Algorithmic decisions are made and served to consumers in 0.05 secs!

The Programmatic Tech Stack in Action

C O P Y R I G H T S A P I E N T R A Z O R F I S H | C O N F I D E N T I A L 10

Channel Definition

Automated

Guaranteed

Direct Sales, Reserved

Inventory + Fixed CPMs

Programmatic

Reserved

Reserved Inventory +

Fixed/Variable CPMs

Unreserved First Look Unreserved Inventory +

Fixed CPMs

Invitation-Only Auction Fixed and Floor CPMs

Unreserved Inventory

Open Exchange Unreserved Inventory to

Whitelisted Buyers

Auction Pricing

INVENTORY BUYING MODELS

HEADER BIDDING DEFINED

• Replaces the waterfall of various SSPs bidding for an impression

• Header bidding is enabled when a publisher places code, typically provided

by a SSP, in the page header. The code activates a request for bids from all

DSPs before calling the publisher’s ad server. Direct demand competes

alongside auction-based demand for each impression.

• Key vendors:

HEAD*ER BID*DING

The simultaneous bid on an impression by multiple demand sources in real-time.

This occurs before the bid hits the ad server

C O P Y R I G H T S A P I E N T R A Z O R F I S H | C O N F I D E N T I A L 12

THE FUTURE IS NOW: EVERYTHING THAT CAN BE

AUTOMATED WILL BE

C O P Y R I G H T S A P I E N T R A Z O R F I S H | C O N F I D E N T I A L 13

Channel Definition

Addressable TV Data + Technology enabling delivery of video

advertising messages to specific households

matching a defined target profile

Programmatic Linear TV Data informed audience buying within linear TV

enabling smarter “1:many” decisioning whereby

automated planning and activation platforms are

used automate workflow

Connected TV A TV connected to the Internet through built-in

capability or through another device such as a set-

top box (e.g., Roku, AppleTV, Chromecast), or game

console

SmartTV A TV with built-in Internet capability providing access

to content directly through TV infrastructure

Over the Top (OTT) Ancillary device connected to TV and providing

internet connectivity for video content viewed via an

app

ADVANCED VIDEO BUYING MODELS

Network or TV

DSP