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.

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A Programmatic Primer: Introduction to
the World of Advertising Technology
Matt Prohaska CEO & PRINCIPAL
February 15, 2017
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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
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3. Before We Get Started, Anyone Feel Like This?
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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
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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
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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.
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7. SHOWING THE PLUMBING
Programmatic Buying
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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.
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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
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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
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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
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12. Understanding the Publisher’s DMP
PublisherX.com Audience Extension (BT)
PublisherX.com/Autos
PublisherX.com Network Audience Extension
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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”
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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
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15. SSP: Supply-Side Platform (The Exchange)
EXCHANGE
TRANSPARENCY
PERFORMANCE
BUYERS
BUYERS
RICH MEDIA
VIDEO
MOBILE
BANNERS
AUDIENCE
REAL TIME BIDDING
SAFETY
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• 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
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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
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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
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20. Reminder: Mastering This Won’t Happen Overnight
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21. Thank You!
matt@prohaskaconsulting.com
Matt Prohaska
CEO & PRINCIPAL
+1 917.597.6568
@MattProhaska, @TeamProhaska
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