Intro to Programmatic Advertising with Matt Prohaska from Prohaska Consulting
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This document provides an overview of advertising technology and programmatic advertising. It defines programmatic advertising as an automated, technology-driven method of buying, selling, and fulfilling digital ads that replaces traditional manual processes. It then summarizes key components of the programmatic advertising ecosystem like data management platforms (DMPs), supply-side platforms (SSPs), demand-side platforms (DSPs), and real-time bidding (RTB). The document aims to help readers understand the complex plumbing and players involved in modern programmatic advertising.
Intro to Programmatic Advertising with Matt Prohaska from Prohaska Consulting
- 1. 1 A Programmatic Primer: Introduction to the World of Advertising Technology Matt Prohaska CEO & PRINCIPAL February 15, 2017 1
- 2. 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 2
- 3. Before We Get Started, Anyone Feel Like This? 3
- 4. Why AdTech Is So Important? Current Focus For Both Buyers & Sellers Previous Focus Efficiency+ Targeting Lower 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 4
- 5. 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 5
- 6. 200 MILLISECONDS: THE LIFE OF A PROGRAMMATIC RTB AD IMPRESSION Real-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. 6
- 7. SHOWING THE PLUMBING Programmatic Buying 7 Social Data Tools DATA Data Suppliers DMP Data Exchanges Metrics Audience Metrics Web Analytics Post Evaluation (Ad Effectiveness) Affiliate Network Sales House Ad Network Publisher Ad Server Ad Server Media Agency Advertiser
- 8. AS OF TODAY ;-) Agency Trading Desk (ATD) Players by Holding Co. 8 Holding Company Agency Examples Trade Desk
- 9. 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 9
- 10. DMP: Data Management Platform Data Type Meaning 1st Party Your audience 2nd Party Your partners’ audience 3rd Party Others’ audience Features What it does Tag 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 providers Enables you to merge data in from other sources 10
- 11. 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/Offline Subscriptions DATA MANAGEMENT PLATFORM Source: Xaxis A Data Management Platform DMP: Data Management Platform 11
- 12. Understanding the Publisher’s DMP PublisherX.com Audience Extension (BT) PublisherX.com/Autos PublisherX.com Network Audience Extension 12
- 13. 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” 13
- 14. Understanding the Publisher’s Ad Server User Publisher 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 14
- 15. SSP: Supply-Side Platform (The Exchange) EXCHANGE TRANSPARENCY PERFORMANCE BUYERS BUYERS RICH MEDIA VIDEO MOBILE BANNERS AUDIENCE REAL TIME BIDDING SAFETY 15 • Where the buying and selling happens • Originally built for buyers to handle publishers’ (f.k.a.) “remnant” inventory
- 16. Open vs. Private Marketplaces: Retail Analogy Open 16 Private
- 17. SCOREBOARD OF KEY DIFFERENTIATING FACTORS How To Decide Who To Work With • Business Terms • Product flexibility • Multi-Channel usage • Access to unique/all supply/demand • UI – user interface • Client Service 17
- 18. TV, Radio, OOH – 2nd Mover Advantage? C DSPs Networks SSPs MVPDs Unwired Networks National Broadcasters Cable Networks Viewers Advertisers Ad Insertion Systems Consumer DMPs and Networks Creative Management Platforms Measurement/Analytics C Station Groups 18
- 19. DAILY NEWSLETTERS WITH FREE SUBSCRIPTION Keep Learning, Stay Current Join several LinkedIn Groups Plus 19
- 20. Reminder: Mastering This Won’t Happen Overnight 20
- 21. Thank You! [email protected] Matt Prohaska CEO & PRINCIPAL +1 917.597.6568 @MattProhaska, @TeamProhaska 21