Programmatic at TMK
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Presented on 2.24.2015. This deck - focused on all things Programmatic at TMK - was presented at our most recent "Come See What I'm Working On" session.
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Programmatic at TMK
- 1. COME SEE: PRIVATE MARKETPL ACES F e b r u a r y 2 4 , 2 0 1 5
- 3. © The Media Kitchen 2014 all rights reserved Started with Programmatic centralized and out-sourced to our partner trading desk Performance play; however, TMK desired deeper insights and transparency Introduction of technology made Programmatic buying more accessible Self-service tools empower advertisers to take control of programmatic Moving Programmatic in-house decentralized buys and provided flexibility Transparency into costs and performance; Private Marketplace deals could be negotiated as part of overall digital buy 3 OUR PROGRAMMATIC STORY
- 4. © The Media Kitchen 2014 all rights reserved 4 OUR PROGRAMMATIC TEAM PHILOSOPHY The majority of media will be bought programmatically through self- service platforms, which makes media buying more transparent, flexible, and efficient. This technology requires a new type of media professional. With insight into this evolution, The Media Kitchen has developed the Programmatic Media Buying Team. The Programmatic Media Team oversees 3 major areas: • Programmatic RTB/PMP (includes banners, video, and mobile) • Paid Search (e.g., Google and Bing) • Paid Social Media (e.g., Facebook, Twitter, LinkedIn)
- 6. © The Media Kitchen 2014 all rights reserved 0% 20% 40% 60% 80% 100% 2011 2012 2013 2014 2015 2016 2017 Programmatic Non-Programmatic Source: eMarketer: “US Display Ad Spending Share, by Type” 2013 hFp://digiday.com/plaJorms/global-‐outlook-‐programmaLc-‐adverLsing-‐5-‐charts/ 6 PROGRAMMATIC FLIPPING THE MARKET The Programmatic ad market will grow from $12 billion in 2013 to more than $32 billion in 2017
- 7. Source: ANA PROGRAMMATIC 7 2014 WORD OF THE YEAR
- 8. RTB GOES MAINSTREAM 1994 1996 2005 2007 20112000 DSPs LAUNCH AD EXCHANGES LAUNCH ADWORDS LAUNCH AD NETWORKS LAUNCH 2014 PRIVATE MARKETPLACES © The Media Kitchen 2014 all rights reserved DIGITAL ADS LAUNCH 8 DIGITAL A D R E V O L U T I O N
- 10. © The Media Kitchen 2014 all rights reserved ADVERTISER: • Buy as much quality inventory as possible at low cost • Negotiate with Publishers to achieve desired plan PUBLISHER: • Sell as much inventory as possible at high cost • Create value for inventory through content and scarcity 10 ADVERTISER AND PUBLISHER RELATIONSHIP
- 11. © The Media Kitchen 2014 all rights reserved Thus, significant amounts of unsold inventory jeopardized the inventory “scarcity” tenant that Publishers held dear Unsold Inventory Sold Inventory WebTraffic 11 AS THE WEB EXPANDED It created an increased amount of site traffic, while advertiser growth did not keep pace
- 12. © The Media Kitchen 2014 all rights reserved 12 UNSOLD INVENTORY = OPPORTUNITY The growth of the web left Publishers with unsold inventory. Programmatic offered Publishers an opportunity
- 13. © The Media Kitchen 2014 all rights reserved Advertiser Publisher 13 PROGRAMMATIC INITIALLY FAVORED ADVERTISERS
- 14. © The Media Kitchen 2014 all rights reserved Through this model, Publishers lose direct contact with advertisers and agencies Advertiser Publisher Second Price Auction 14 SYMBIOSIS DISRUPTED Inventory sold across the exchanges at variable costs and to unknown advertisers
- 15. © The Media Kitchen 2014 all rights reserved Advertiser Publisher 15 PUBLISHERS CONTROL TRANSPARENCY However, knowledge about the specific inventory won is often obfuscated
- 16. © The Media Kitchen 2014 all rights reserved 56% 17% 23% Of Publisher impressions are not viewable Of Programmatic display ads are viewed by bots Of online video ads are viewed by bots Sources: hFp://www.bloomberg.com/news/2014-‐12-‐09/robots-‐not-‐humans-‐fake-‐23-‐of-‐web-‐video-‐ad-‐views-‐study-‐finds.html ANA (hFp://blogs.wsj.com/cmo/2014/12/09/5-‐things-‐marketers-‐need-‐to-‐know-‐about-‐ad-‐fraud/) 16 MONETIZATION OF INVENTORY The open exchange encouraged fraudulent traffic, and poor placement viewability as web-crawlers and bots attempted to exploit advertising to generate publisher revenue
- 17. © The Media Kitchen 2014 all rights reserved Private Marketplaces put the responsibility for inventory quality on the Publisher, allowing them to lock in advertiser dollars and a pre-agreed price QUALITY 17 PRIVATE MARKETPLACE AS A STABLIZING FORCE
- 18. © The Media Kitchen 2014 all rights reserved 18 EVOLUTION OF PRIVATE MARKETPLACES A Private Marketplace is a customized, invitation-only marketplace where Publishers make their inventory and audiences available to a select group of buyers. Unlike a direct buy, which can be labor intensive for both Publishers and Advertisers, buyers in a PMP use programmatic-media buying controls to purchase from Publishers. DefiniLon via RockeJuel hFp://rockeJuel.com/webinars/what-‐is-‐a-‐private-‐marketplace
- 19. © The Media Kitchen 2014 all rights reserved 19 WATERFALL Publisher Direct Automated Guarantee Preferred Deal Private Auction Open Exchange
- 20. © The Media Kitchen 2014 all rights reserved WIN FOR ADVERTISER: • Choose inventory with specific partners • Control of serving parameters and audience (time of day, day of week, first and third party audience data, etc.) • Decrease issues pertaining to viewability and fraud WIN FOR PUBLISHER: • Can sell more inventory (fill rates) at desired or preferred CPMs • Fill inventory with preferred Advertisers rather than just the highest bidder 20 PRIVATE MARKETPLACES ARE A WIN-WIN
- 21. © The Media Kitchen 2014 all rights reserved Preferred Deals Private Auction Pricing # of Buyers DescriptionPublishers One Publisher Fixed Price One Advertiser Negotiated, fixed price; completed through self-serve tool 2nd price auction with select group of buyers; auction with set floor; through publisher- owned DSP2nd Price Auction w/ Floors One Publisher Select Advertisers 21 TYPES OF PRIVATE MARKETPLACES
- 22. RFP PROCESS
- 23. © The Media Kitchen 2014 all rights reserved Crafting Proposal Negotiating Plan Execution of Buy 23 RFP PROCESS: OVERVIEW
- 24. © The Media Kitchen 2014 all rights reserved Media team develops RFP Media team issues RFP Publisher submits proposal Should include information such as… • Are Programmatic and Publisher Direct considered one digital plan? • Can Programmatic and Publisher Direct inventory overlap? • Is there specific inventory desired? • Are there inventory quality standards (viewability and fraud)? • Is there specific targeting required (audience, geo, etc.)? • What Programmatic tactic is preferred (PMP or Private Auction)? 24 RFP PROCESS: CRAFTING A PROPOSAL
- 25. © The Media Kitchen 2014 all rights reserved 25 RFP PROCESS: CRAFTING A PROPOSAL For Publisher: • Send RFP and any additional documentation explaining campaign (i.e. excel doc with specific proposal format) Media team develops RFP Media team issues RFP Publisher submits proposal
- 26. © The Media Kitchen 2014 all rights reserved 26 Placement Name Unit Sizes Start Date End Date Cost Structure Net/Gross Rate Planned Impressions Planned Cost Site – Preferred Deal PMP_728x90 728x90 1/1/15 4/30/15 CPM $8.00 TBD $100,000 Site – Preferred Deal PMP_300x250 300x250 1/1/15 4/30/15 CPM $8.00 TBD Site – Preferred Deal PMP_300X600 300x600 1/1/15 4/30/15 CPM $8.00 TBD Site – Publisher Direct_300x250 300x250 1/1/15 4/30/15 CPM $16.00 TBD Site - Publisher Direct_728x90 728x90 1/1/15 4/30/15 CPM $16.00 TBD - - $100,000 RFP PROCESS: CRAFTING A PROPOSAL Media team develops RFP Media team issues RFP Publisher submits proposal
- 27. © The Media Kitchen 2014 all rights reserved Media team negotiates RFP terms with Publisher Media team and Publishers discuss details of Programmatic prior to paperwork Media team provides IO and T&Cs based upon agreed plan 27 RFP PROCESS: NEGOTIATING PLAN Terms of Negotiation: • Price floor and/or fixed CPM • Packages and inventory • Spend flexibility • Any viewability and/or fraud percentages to be considered
- 28. © The Media Kitchen 2014 all rights reserved 28 RFP PROCESS: NEGOTIATING PLAN Details Needed: • TMK Team DSP • Publisher SSP • Any site pixeling opportunities for Publisher • Reporting options Media team negotiates RFP terms with Publisher Media team and Publishers discuss details of Programmatic prior to paperwork Media team provides IO and T&Cs based upon agreed plan
- 29. © The Media Kitchen 2014 all rights reserved 29 RFP PROCESS: NEGOTIATING PLAN Signed document: • Holds Publisher accountable for inventory type, quality and floor pricing • Holds Advertiser accountable for investment level required to achieve rates Media team negotiates RFP terms with Publisher Media team and Publishers discuss details of Programmatic prior to paperwork Media team provides IO and T&Cs based upon agreed plan
- 30. © The Media Kitchen 2014 all rights reserved Media team to inform TMK PMG of upcoming campaign Publisher works with SSP in setting up inventory and Deal IDs Post-launch maintenance and communication 30 RFP PROCESS: EXECUTION OF BUY For TMK PMG team: • Media team to complete TMK PMP In-Take Doc and share with TMK PMG team • Once TMK PMG team has a chance to review, schedule internal meeting to discuss campaign next steps
- 31. © The Media Kitchen 2014 all rights reserved Media team to inform TMK PMG of upcoming campaigns Publisher works with SSP in setting up inventory and Deal IDs Post-launch maintenance and communication 31 RFP PROCESS: EXECUTION OF BUY Deal IDs are a string of characters that pass the planned inventory between the DSP and SSP • Without Deal IDs, publishers and platforms cannot always allocate client spend more efficiently or reserve inventory
- 32. © The Media Kitchen 2014 all rights reserved 32 RFP PROCESS: EXECUTION OF BUY Post-Launch Maintenance (Media and Programmatic teams) • Are Deal IDs receiving adequate amount of impression volume? • Do CPMs need to be changed based on performance or delivery? • Is the program performing according to prearranged quality standards and KPIs? Media team to inform TMK PMG of upcoming campaigns Publisher works with SSP in setting up inventory and Deal IDs Post-launch maintenance and communication
- 33. MANAGING DEALS
- 34. © The Media Kitchen 2014 all rights reserved Private Auction 34 PRIVATE DEAL VS. PRIVATE AUCTION Preferred Deal
- 35. © The Media Kitchen 2014 all rights reserved Bid Optimizations can be implemented based on: • Site Category • Time of Day • Day of Week • Browser (and Browser version) • Frequency • Creative Size • Device Type • Recency 35 MANAGING DEALS
- 36. © The Media Kitchen 2014 all rights reserved 36 OPTIMIZATION EXAMPLES Vanguard FAS Private Auction Vanguard Retail Preferred Deals
- 37. THANK YOU!