Gareth Neville from Ve Interactive gave a presentation on demystifying programmatic advertising. He discussed the key benefits of programmatic such as increased efficiency, transparency, and control over campaign performance. He explained how programmatic works through real-time bidding on ad exchanges using data to target audiences. Metrics for measuring campaign success include CPA, CPC, CPM, and CTR. Ongoing optimization is needed to improve performance and achieve campaign goals within budget.

1. Lunchtime Sessions:
Demystifying Programmatic

2. GARETH NEVILLE
Retail Sales Director at Ve Interactive
INTRODUCTION
Please tweet any questions to @veinteractive
or email Gareth.Neville@veinteractive.com

3. Ve INTERACTIVE
31+
OFFICES
43 TERRITORIES 19 LANGUAGES

4. WHAT WE’LL COVER
• What is programmatic?
• What are the benefits of using it?
• How does it work?
• Reporting metrics
• Optimisation
• Q&A

5. PROGRAMMATIC WORLD
An estimated 20 billion
dollars being spent
in 2016
The fastest growing
medium…

6. PROGRAMMATIC WORLD
Study shows only 23%
of marketers understand
programmatic buying.
DSP
RTB
SSP
DMP
All images are for illustrative purposes and are indicative only.
more than half still rate their knowledge
as very poor/average
1 year later

7. WHAT IS PROGRAMMATIC?
83% of all display buys
will be programmatic
by 2017 (eMarketer)
• Any inventory (ad space) bought
automatically through either
bidding for the space or buying it
directly.
• Increase efficiency
• Inventory measured in impressions
– opportunities to show an advert
Programmatic
=
Automatic

8. BEFORE
THE BENEFITS OF PROGRAMMATIC
AFTER
• Ads bought/sold manually
• Bulk impressions bought ahead of time from
different sites & repackaged to be sold
• No transparency
• Inefficient & unreliable
• Faster
• More efficient
• Less expensive
• More granularity & control over campaign
performance

9. RTB, DSP, SSP
Real-time bidding Demand-side platform Supply-side platform
Or sell-side platform
RTB DSP SSP
Inventory bought & sold on a
per-impression basis via
instantaneous programmatic
auctions
Platform that allows buyers to
manage multi ad exchanges,
data exchange accounts &
campaigns
Platform that lets publishers
manage ad inventory &
maximise revenue from
digital media
Let’s start with some basic terms…

10. AD EXCHANGE
AD
EXCHANG
EPlatform where ad space is bought and sold
online. This is a technology driven approach

11. TRADING DESK
TRADING
DESK
Group of traders within an agency/ad company known as
experts in their use of technology.
The traders are responsible for daily optimisation of
campaigns & driving efficiency from budgets.

12. DATA IS KEY
COOKIES
• Info stored on a person’s
computer by a web server
• It’s retrieved when the user
accesses a website
• Record a users unique
behaviour during each visit

13. 3 TYPES OF DATA 2nd Party Data
• 1st Party Data obtained
from an agreement with
another publisher
1st Party Data
• Data owned by the
advertiser
• Converted customers are
the most valuable data
3rd Party Data
• Data from an external
company
• eXelate, Blue Kai, Neilson
• Segmented by age,
gender, demographic,
interest & intent to
purchase
DATA IS KEY

14. Data Management Platform
DMP
Data combined from a number of sources to generate audience
segments for improved targeting
DMP

15. 4 TYPES OF INVENTORY

16. • Real-time bidding
• Variable CPM
• Open to any buyer
• Majority of performance buying and direct response activity
• Pricing determined in real time when the ad is served
4 TYPES OF INVENTORY

17. • Real-time bidding
• Strict price floors
• Invitation-only buyers
• PMP spend has tripled over the last 3 years
• Gives advertisers more control over where ads run
4 TYPES OF INVENTORY
• Abbreviated to PMP

18. • Non-auction model
• Fixed CPM (pricing)
• Inventory not guaranteed (unreserved)
• Publishers make blocks of inventory with fixed, pre-negotiated pricing available to advertisers
• Advertisers can purchase inventory away from the open market
• Any inventory that’s not sold will often get sent off to auction
4 TYPES OF INVENTORY

19. • Non-auction model
• Fixed CPM (pricing)
• Guaranteed inventory
• Advertisers get more transparency into inventory they are buying from publishers
• Publishers get more control over which advertisers buy their inventory at specific prices
• Any deal that is negotiated directly between buyer and seller but executed through automation
4 TYPES OF INVENTORY
• AKA “programmatic guaranteed”

20. BUYING PROCESS
Male, 35 years old
ABC, married with
children, likes cars
and travel
Auction Model

21. REPORTING METRICS
Cost per Acquisition
CPA
Cost per Action
CPA
Cost per Click
CPC
Cost per Mille
CPM
Click Through Rate
CTR
= total marketing cost divided by
number of acquisitions
= total marketing cost divided by
total number of actions
= total marketing cost divided by
total number of clicks
= total marketing cost divided by
number of impressions
= number of clicks the ad receives
divided by number of times ad is
shown

22. REPORTING

23. ACHIEVING PERFORMANCE &
OPTIMISATION

24. ACHIEVING PERFORMANCE &
OPTIMISATION

25. DSP
Learning phase Optimised phaseSUCCESS EVENTS
Sufficient daily spend has
to be allocated in order to
reach an optimised phase
Tech based on algorithms that
optimise throughout the campaign
Measure CPA & KPIs
against the available
budget
ACHIEVING PERFORMANCE &
OPTIMISATION

26. At Ve Interactive, we have a team of traders
who manually optimise campaigns for
greater efficiency
ACHIEVING PERFORMANCE &
OPTIMISATION

27. SUMMARY
• Basic terminology
• Benefits of programmatic & reasons to invest
• How the auction model works
• Reporting metrics & optimisation
For more information check out the IAB’s jargon buster.
Next time… Prospecting & Retargeting Strategies
For more information, please contact Gareth.Neville@veinteractive.com