1
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
7
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
9
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
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