Programmatic Buying

Session by
Seshadri Shankaran
ABOUT ME

• Seshadri Shankaran
Email: [email protected]
[email protected]
• 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 Flipkart.com

‘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
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THANK YOU