Carl Kalapesi from IAB's presentation on "WTF is Programmatic?" from Digiday's WTF Programmatic for Publishers event in NYC - April 30, 2015.

1. 1
WTF is programmatic?
Real Time Bidding
Cheap
Remnant inventory
Crappy inventory
Race to the bottom
Automation
Efficiency
@carlkalapesi

2. • Technology can deliver benefits through
automation
• The object of “engagement” shifting to
the audience—not the channel
• Rich datasets can fuel the identification
and engagement of target audiences
Several themes have come together…
2 @carlkalapesi

3. Promise of programmatic:
Right Message + Right Person + Right Time
At Scale
Personalization at scale?
3 @carlkalapesi

4. So what is programmatic?
4
The process of buying
and selling media in an
automated fashion
usually with data
Image credit: www.deviantart.com
@carlkalapesi

5. Programmatic is more than RTB…
5
Invitation-Only
Auction
(Private
Auction)
Fixed
Reserved
Auction
Unreserved
Open Auction
Automated
Guaranteed
Non-Guaranteed
Fixed Rate
(Preferred Deal)
How
price is
set
Type of inventory
Real Time Bidding
(RTB)
5 @carlkalapesi

6. Cutting through the crap…
Three key questions for working out what “type” of programmatic
transaction you are dealing with…
1. Is the inventory reserved or unreserved?
2. Is the price set fixed or set by auction?
3. Can anyone buy or is it by invite only?
6 @carlkalapesi

7. Defining the different types of programmatic
7
Type of
Inventory
Pricing Who?
Automated Guaranteed
(aka Programmatic Direct)
Reserved Fixed One-One
Unreserved Fixed Rate
(aka Preferred Deal/First Look)
Unreserved Fixed One-One
Invitation-Only Auction
(aka Private Auction)
Unreserved Auction One-Few
Open Auction Unreserved Auction One-All
@carlkalapesi
Together often
referred to as a
“Private
Marketplace
(PMP)

8. Typical Publisher Waterfall
8
Direct Sold/Automated Guaranteed
Unreserved Fixed Rate
Invitation-only Auction/Private Auction
Open Auction
@carlkalapesi

9. Programmatic is big, across sectors and
growing fast
9
Source: eMarketer, Oct 2014
2013 2014 2015 2015
140%
48%
37%
US Programmatic Ad Spend, $B Sectors and Brands
Top Sectors
• Retail
• CPG
• Financial
• Auto
• Telecom
• Travel
Top Brands
• Target
• Kelloggs
• Gap
• Chrysler
• Comcast
• Verizon
Source: Index Exchange, Q3 2014
@carlkalapesi

11. So what actually happens in RTB
11 @carlkalapesi

12. 1 Programmatic = automation with data
2 Programmatic > RTB
● Automated guaranteed
● Unreserved fixed rate
● Invitation-only auction
● Open auction
3 Ask 3 questions to cut through the crap - what type of
inventory, how price is set and who can buy?
3 things to remember
12 @carlkalapesi