Programmatic Buying
Session by
Seshadri Shankaran
ABOUT ME
• Seshadri Shankaran
Email: [Link]@[Link]
sesh009@[Link]
• MICA Alumnus 2008
• Business Head – GroupM Trading team
• Working in Media since last 13 years
• Digital/TV/Print - Media
Our session….
The Evolution of Programmatic
Advertiser
Context
Traditional Advertising
What is
Programmatic
So its Just a Way of Buying
Programmatic buying is automated buying.
Pricing can be determined through up front
negotiation or through real time bidding
The Old Way Seems Archaic!
Publisher : Targeting the User Using data to target
You select each impression
You buy impressions
Buyer controls
Publisher controls targeting
targeting
But who are the users ?
You know the user
How it Works: Bidding & Inventory
Yes
Advertiser Ad
No
Exchange
Step 2: Publisher Ad server:
Step 1: Users “Do I have a guaranteed
visit web page impression?”
Step 3 – Exchange: “Hey,
DATA: DSP’s – we have an
Auto website impression!”
Delhi geo
DSPs: “who is
Weekend
looking at this? Do
we want to bid?” $0.95 pass $0.47 $2.10
DSPs
Step 4: Highest bidding DSP wins
the ad impression, delivers creative $0.96
Key Players – DSPs
Key characteristics that define a DSP:
Connect to multiple sources of ad supply
Facilitate the buying of impressions in an automated fashion
Provide a self-service interface
Ability to target using data
Offer full transparency of delivery
Buys at prices agreed by the buyers and sellers
Charges a fee for use of the technology
All other costs passed through to client
Key Players – Exchanges & SSPs
Key characteristics that define a Exchange or SSP:
Connect to multiple sources of demand
Facilitate the selling of impressions in an automated fashion
Provide a fully self-service interface
Ability to integrate & monetise publisher data assets
Charges publishers a fee
Offer publishers control of pricing for each impression
The Landscape?
Ecosystem
Data everywhere
DMP? DMP DMP?
Advertiser
Publisher
Ad Net
Agency
DSP Ad
Ex/SSP
Sharing
Data /
Social
Agency Ad Networks Tools
Trading DSPs Exchanges
Desk
C
SSP P
M Agencies O
U
A N
Vertical / Custom B
R
K
L S
Creative Media I
E Optimizatio Planning & Publisher U
Attribution DMPs & Targeted Networks S
T n Tools
Data H M
E Aggregators
R
E E
R
Tag Mgt Performance Based R
Retargeting
Ad Server
Measurement Data Mobile
Verification &
Ad Server & Analytics Supplier
Privacy
Media Mgt System & Operations
Programmatic Planning
Programmatic on your media plan?
Portal homepage Format Impact
Custom Buys
Sponsorship Association
Portal section Audience
Vertical Website Audience Programmatic
Buy
=
Ad Network Audience
Efficiency
Programmatic solution Audience
A Look at the Targeting options…
Benefits
Programmatic Buying – Benefit # 1
Pay for consumers you want In the right places For the greatest impact
Reduce Wastage & Increase ROI
Programmatic Buying – Benefit # 2
Data
Better precision on your desired Audience
Programmatic Buying – Benefit # 3
Open Market Private Market
Publishers no fixed Publishers fixed
terms terms
$3.05 $5.10 $6.75 Premium Premium
$1.00 $1.00
Premium Premium
$10.02 $5.45 $2.15 Premium
$1.00
Premium
Premium inventory at lower prices
Programmatic Buying – Benefit # 4
Access to many publishers through one platform
Benefits
Versatile
objectives can be Highly targeted Savings vs. Scalable using Highly efficient
hit audiences placement buys reach and performance is
BRAND & frequency possible
PERFORMANCE optimization
Disadvantages
Programmatic Buying – Disadvantages
Remnant Inventory Premium Programmatic
$$$$
$0.01 $$$$$
$0.01
$0.07
2-3X more expensive in the open market!
$$$$
$$$$$
$0.05
$0.02
Programmatic Buying – Disadvantages
Advertiser
-25%
SSP
$1.00 $0.70 $0.52
$0.41
Publisher
-20%
DSP
-30%
What elements make
up a programmatic
solution?
Components for a programmatic solution?
Data Media
Right measure of
success?
Technology Expertise
TYPES OF
PROGRAMMATIC
INVENTORY
Types of Inventory
RTB Private marketplace
Programmatic direct
(open exchanges) (PMP)
Fully automated
Fully automated Fully automated
Impression & user selection
Impression & user selection Impression & user selection
One seller and limited buyers
Many buyers and many sellers One seller and one buyer
Restricted auction
Open Auction No auction
Set floor (min) prices
No negotiation negotiated Set (fixed) price negotiated
No availability guarantees Potential availability Availability guarantees
guarantees
Video & Display Market
Brand Ad Ad / Click
Safety Viewability Fraud Programmatic Direct
INR 50 – INR 150 CPM
Premium
Vertical Sites
PMP’s INR 50 – INR 100 CPM
Premium Portals
Decreasing
Decreasing
Increasing
Top Social Networks
Top Apps
Smaller content sites, RTB
premium ad networks INR 10 – INR 50
& professional blogs
Long tail inventory and resellers
BEST PRACTICE BRAND
SAFETY METHODOLOGY
01 White and Black List
02 Brand Safety Technology
03 Viewability & Audience Measurement
TYPES OF DATA
DATA DEFINITIONS
1st PARTY DATA 2nd PARTY DATA 3rd PARTY DATA
(1PD) (2PD) (3PD)
Generated by an independent
Generated by client’s digital Generated by tracking user
party, usually available for
properties & campaigns behaviour & LAL modelling
purchase
Owned by advertisers Owned by media Owned by a data provider
company
Only used for that client Unique to the generator Available to everybody
Free to use Free to use Pay-per-use
Making It Actionable
Data raw materials Processing & Refinement Output
DSP
DMP DEMO
1st INTEREST
2nd
CONTEXT
3rd
RETARGET
LOOKALIKE
44
Using lookalike modeling
Look-a-like models used A process that draws on
to build larger audiences understanding the
from smaller audiences audience attributes and
to create reach for online behaviors of your
advertisers. best customers.
WHAT TECH?
BEST Components for a programmatic solution?
Data Media
Right measure of
success?
Technology Expertise
Tech…
Client Dashboard How is my campaign doing?
Verification of audience delivery Am I hitting my audience?
Verification of viewability / brand safety Are my ads safe and seen?
Are my ads delivered and is
Adserver performance tracked with other
channels
Create audience segments & target
Audience creation & targeting tool (DMP) them
Buying platform (bidder - DSP) Buy ads from vendors and optimize
Attribution modelling – redistributing credit away
from last click
Video Banner Search Engine [Link]
‘View’ ‘View’ ‘Click’ Purchase
Requires third party adserving!
Measure of Success
(KPI)
Define the Goal & Objectives
Brand –
Performance -
Audience
Cost Per Action
Coverage
Measured With the Right KPI’s
Consumer
Purchase Awareness Consideration Preference Purchase
Funnel
UPPER MID LOWER
Objectives Drive awareness & reach Drive engagement Drive conversion
Audience Reach Completed Ad Leads Conversions ROI
KPI Clicks
views engagement /Registrations
Tracking In-target Cost per Track cost Track cost per Track cost Track basket
Track cost
Measure reach completed view per ad Lead/registrati per value vs. media
per click
Required engagement on conversion investment
55
THANK YOU
