Challenges of programmatic
•Télécharger en tant que PPTX, PDF•
3 j'aime•1,365 vues
Challenges of programmatic
Recommandé
Recommandé
Contenu connexe
Tendances
Tendances (20)
En vedette
En vedette (7)
Similaire à Challenges of programmatic
Similaire à Challenges of programmatic (20)
Dernier
Dernier (20)
Challenges of programmatic
- 1. PROGRAMMATIC THE CHALLENGES 1. What is Programmatic ? 2. Who cares & why ? 3. Challenges of programmatic
- 2. PROGRAMMATIC THE CHALLENGES What is Programmatic ?
- 3. WHAT IS PROGRAMMATIC ?
- 4. WHAT IS PROGRAMMATIC ? A holistic approach through which media buyers and sellers may align organizational processes with automation technology in support of ongoing, channel-agnostic customer engagement (and to allow for the continuous optimization of that effort as business strategies evolve). - Winterberry group (2013)
- 5. PROGRAMMATIC R.T.B FLOW Source: Media Kitchen History of Programmatic DMP - DATA MANAGEMENT PLATFORM SSP - SUPPLY SIDE PLATFORM DSP - DISPLAY SIDE PLATFORM The workflow: User comes to site triggers impression DMP send audience data to DSP informs who should bid Publisher sells Inventory via SSP Traders commissioned by Advertisers use DSP to bid for Inventory
- 6. TYPES OF PROGRAMMATIC SELLING & BUYING Source: media kitchen history of programmatic Open exchanges traditionally associated with remnant inventory Shift towards Private exchanges for premium inventory – Publisher regains some control of pricing Programmatic guaranteed - direct publisher to advertiser
- 7. PROGRAMMATIC THE CHALLENGES Who cares & why ?
- 8. WHY THE INTEREST IN PROGRAMMATIC ? Source: Winterberry Nov 2013 white paper programmatic everywhere?
- 9. CURRENT USAGE US Source: Winterberry Nov 2013 white paper programmatic everywhere
- 10. PROJECTED AD SPEND IN US
- 11. PROGRAMMATIC SPEND UK Source: Winterberry Nov 2013 white paper programmatic everywhere
- 12. INTERNATIONAL OUTLOOK Source: Winterberry July 2014 white paper : Going global programmatic audience around the world
- 14. Source: Winterberry Nov 2013 white paper programmatic everywhere? CHALLENGES INHIBITING PROGRAMMATIC USE
- 15. CHALLENGE: BRAND & REPUTATION Contextually irrelevant ads are seen as intrusive and irritating
- 16. CHALLENGE: BRAND & REPUTATION Misplaced ads risk animosity towards the brand
- 17. CHALLENGE: TRANSPARENCY & TECHNOLOGY TAX Technology tax”, claims 60-80% of ad spending complain advertisers and publisher – economist (2014) ‘For every dollar a digital advertiser spends on a placement, a publisher reaps around 45 cents - Seth Demsey - svp of global advertising products and strategy for AOL Networks. (2013)
- 18. CHALLENGE: TRADITIONAL MEDIA PLANNING - DATA ANALYTICS Media planning – selecting media Data analytics – selecting audiences
- 19. CHALLENGE: RACE TO THE BOTTOM Concerns Inventory will become commoditised & drive down prices Cannibalise premium inventory
- 20. CHALLENGES: SUPPORTED FORMATS IAB Standards supported by Programmatic Custom formats unsupported by Programmatic
- 21. CHALLENGE: COOKIES & MOBILE Fragmented experience through mobile apps browser Limitations of cookies on mobile Can restrict ability to make re targeting across devise
- 22. CHALLENGES: MEDIA CHANNEL VS CREATIVE ENGAGEMENT Brand building creative vs direct response creative A system where all ads are treated as equal can penalizes award winning creative. Difficult to ensure an ad placement bought programmatically is actually in- view
- 23. CHALLENGE: CLICK FRAUD Reduced direct relationship between the advertiser and the publisher has disappeared Incentivise increase in click fraud Anonymous site publishing with access to ad exchange
- 24. KEY CHALLENGES OVERVIEW Challenges Possible solutions PUBLISHERS • Race to the bottom • Operational buy In • Test the market short rolling contracts • Private market places for premium inventory • Price floors in open auctions • Education TECHNOLOGY • Lack of consolidation in ad tech • Click fraud • Centralisation & consolidation • Industry standardisation • More open source less proprietary specialists • Disincentives fraudulent clicks • Avoid anonymous publishing • Click fraud detection tools ADVERTISERS • Brand & reputation • Contextual relevancy • Brand safety check
Notes de l'éditeur
- Industry definition: A holistic approach through which media buyers and sellers may align organizational processes with automation technology in support of ongoing, channel-agnostic customer engagement (and to allow for the continuous optimization of that effort as business strategies evolve). - Winterberry group (2013) My definition Automated rules-driven approaches to buying and selling digital Ad space (Susan Takpi 2014) A study by BCG, sponsored by Google, found that advanced behavioural targeting, which uses technology to reach specific users with the desired characteristics, helped advertisers increase their return on investment by 30-50%. One popular tactic is “retargeting”, which allows advertisers to look for people who have visited their website before and show them an ad related to an item they were looking for but did not buy – Source http://www.economist.com/news/special-report/21615872-rise-electronic-marketplace-online-ads-reshaping-media-business-buy Programmatic approaches are starting to evolve from real-time bidding for online impressions to encompass the broader sweep of managing and optimising customer engagement across channels and devices. - http://digitalmarketingmagazine.co.uk/digital-marketing-advertising/how-programmatic-advertising-is-changing-the-rules-in-planning-buying-and-execution/1113
- Programmatic rtb FLOW Programmatic if we were to map it as a process flow would like broadly like this The taking onto account the key components of the eco system Users User lands on site typically a cookie from the server will set by the server of the web page you are browsing, retain some user info such as which products or services you are interested what you were looking at in previous site visits Demand and supply exchange Publishers make their ad impressions available through marketplaces called ad exchanges Supply side platform (eg) will send a bid request to Demand side platform (EG) typically using large exchange such as Googles double click DMP will contain the data of the specific audience type you would like to target DSPs automatically decide which of those impressions it makes the most sense for an advertiser to buy Traders Traders managing the bidding commissioned on the behalf of advertisers- typically they would only get involved if ad spend is over a certain threshold trading tool such as Appnexus A bid winner is selected they will pay 1 penny over the last bid
- Types of programmatic selling & buying There are different types of programmatic exchanges with advantages and disadvantages Open Auctions – inventory is exposed in market place / ad exchange – challenges of commoditising inventory no control over price Traditional RTB - multiple bidders access inventory from an open exchange or marketplace, transactions take place in “real time.” Open exchanges traditionally associated with remnant inventory – publisher has no control over pricing Private exchanges Allow publisher to set inventory prices and restrict inventory access Often seen as an opting to make Premium inventory available through this ad exchanges are becoming increasingly important to publishers as they loose print sales and they attempt to claw back profits through ad revenue declines - News international have set up a private market place, telegraph have one - PATS INTIATICE Avoid inventory being commoditised on private exchange Programmatic guaranteed Premium inventory sold Unreserved fixed rate – publisher can make inventory available at a specific rate to a specific advertisers – no auction involved
- Why the interest in programmatic ? Winterberry group (strategy consultants in digital advertising in partnership with the like of Adobe and IAB) Published a white paper in November called programmatic everywhere ? 260 executive-level advertisers, marketers, publishers, technology developers and marketing service providers (conducted predominantly in the United States between August and September 2013). The graph illustrates some of the objectives that’s driving the interest of publishers and advertisers in programmatic Notable whilst advertisers are concerned with efficiency, publishers are more concerned with effective targeting
- The current usage Large % of advertisers are already using RTB Which is set to increase over next two years
- projected AD Spending in US E Marketer State in 2013 just over 40% ads in the US BOUGHT PROGRAMMATICALLS estimate in the US in the next 3 years this will increase to 80% ad spend will be using programmatic
- In the UKS IAB REPORTED From the £1.86 billion spend on display ads across the internet and mobile in 2013 28% was delivered programmatically Source: Internet Advertising Bureau UK's (IAB) Media Owner Sales Techniques study Just under ½ £billion spent programmatically last year. at £520.8 million last year Source: http://www.themediabriefing.com/article/iab-programmatic-report-june-2014-spending
- International outlook The trends tend to be pretty consistent around the world Though time will tell if what people say and what they do will align.
- So we know what programmatic is We’ve talked about it being on the radar of most in the digital advertising space As we all things whilst there are some perceived benefits there are a also some very real challenges
- Challenges inhibiting programmatic use Resistance to process owner: I would be interested in understanding what skys biggest challenge is resistance for current process owner Fear of job losses impact on bonus if ad revenue is incentivized by monetary reward or internal recognition Brand safety Lack of transparency in the process Programmatic survey: http://www.iab.net/media/file/WinterberryGroupWhitePaperProgrammaticEverywhere.pdf
- Brand & reputation Advertisers shift from buying impressions in millions on a single site to audience impressions across multiple sites and channels there is a risk the brand and creative message can be diluted and become contextual irrelevant There is a growing recognition that more personalised and relevant advertising will translate into greater ROI, but this must be balanced against the risk of failing to engage with consumers. Neither of the above audiences would be particular engaged Any real-time initiative requires careful planning because it is buying the audience where they are, not the pages they may visit. If your audience uses parts of the web where your brand would rather not go, then this needs to be built into your thinking from the start Poorly targeted or otherwise inappropriate ads are seen as intrusive and irritating, potentially even resulting in animosity towards the brand -
- Brand & reputation There is a growing recognition that more personalised and relevant advertising will translate into greater ROI, but this must be balanced against the risk of failing to engage with consumers. Countless studies have shown that the lion’s share of the ROI of a campaign can be directly traced to the quality of the campaign creative Programmatic ads are purchased based on the user rather than the site, so some ads may show up on sites advertisers may believe have no relevance to their campaign Poorly targeted or otherwise inappropriate ads are seen as intrusive and irritating, potentially even resulting in animosity towards the brand - particularly in the case of example 2
- Measuring efficiency True efficiencies of programmatic are yet to be proven other costs are not broken out For all its promise, programmatic buying has not yet delivered greater transparency and efficiency Technology Tax The market is fragmented with many Niche players Technology tax Advertisers and publishers complain, about a “technology tax”, claiming that 60-80% of ad spending is siphoned off by ad-tech firms Eg: trading desks, DSPs, exchanges, networks, data suppliers, data aggregators, ad verification vendors, tag management vendors, etc. IAB report advertisers are often paying significantly higher CPMs for programmatic non-guaranteed than a publisher receives net of fees…the lack of transparency, where technology fees aren’t broken SVP at AOL 2013 suggested close to half of every dollar spent goes to one of the many Niche providers within the fragmented eco system Too many less specialisation and more consolidation across the industry - pats example More innovation to scale – almost like a Linux type solution to reduce the current fragmented offering that doesn’t kill innovation In the interim advisable to sign short renewable contracts to avoid being locked in as the industry evolves Sources: Source: http://www.economist.com/news/special-report/21615872-rise-electronic-marketplace-online-ads-reshaping-media-business-buy Source: http://digiday.com/publishers/time-to-cut-the-ad-tech-tax/ Source: http://www.emarketer.com/Article/Marketing-UK-Programmatic-Will-Norm-Once-Issues-of-Transparency-Mobile-Overcome/1011608 Source: http://www.forbes.com/sites/onmarketing/2014/10/02/why-programmatic-ad-buying-is-currently-problematic/
- Challenge: traditional media planning & data analytics Planning and buying as we have known it - decision-making based on understanding media properties and the targeted audiences they attract - will be replaced by quant-based (and cookie-reliant) analysis of big data how you manipulate that data and what questions you’re asking of that data require analytical skills and often technical skills not required before The art of Brainstorming and looking at way to optimise budget replaced with analytics – some argue in this regard programmatic is more transparent Skills shortage - It’s a relatively new area as with any new tech often a skills shortage But there’s an awful lot of data there, and it’s a question of how you manipulate that data and what questions you’re asking of that data - See more at: http://www.emarketer.com/Article/Marketing-UK-Programmatic-Will-Norm-Once-Issues-of-Transparency-Mobile-Overcome/1011608#sthash.cd37Fuok.dpuf September 2011 report, "The Future of Digital Media Buying.“ The changing role of the media planner Varick Media Management, a real-time advertising company in New York, and explains how she uses superfast algorithms to buy 20m-30m advertising “impressions” a day. Today one of her clients, an American bank, has asked her to find new customers. At first she guides the algorithm to buy as many impressions as possible near bank branches. Then she narrows her targets, choosing criteria that produce a better hit rate. For example, she finds that tablet users sign up more often than iPhone users, and afternoon seems to be a better time than morning. She instructs the algorithm to bid more for consumers that have recently visited the bank’s website, who may be more easily persuaded. In her office less than two miles from Wall Street, Ms Mici embodies the excitement and entrepreneurialism of an industry in the midst of momentous change. Media Planners: http://www.clickz.com/clickz/column/2165122/media-planners-programmatic-buying Benny: Although the UK is pretty much close second after the US in terms of the level of programmatic knowledge and expertise, there are still people out there both agency and client side (especially the latter) who have heard of programmatic but lack the in-depth knowledge to truly embrace it and make it work as hard as possible as part of their digital marketing mix. This creates necessity for a lot of educational exercise and investment, otherwise a poorly prepared and trained client will steer well clear of any programmatic activity with his/her agency
- Challenge: race to the bottom Upmarket publishers have been cautious about making their premium ad space available for sale by computer because they think, probably rightly, that it will put pressure on prices. Testing the market. created private exchanges which limit the number of Some, such as the New York Times, the Wall Street Journal and The Economist, have advertisers who can bid for their ad space or buy it in advance, giving them more control over pricing. Considered if you will be cannibalising premium inventory as advertisers go else where Do you but a complete gate around all inventory or operate a dual strategy with low value inventory sold programmatic What operational processes need to be in place to support this The ROI on such options also need to be considered Impact on the ability to negotiate direct deals - There’s also concern that moving to programmatic will have an impact on direct deals - See more at: http://www.emarketer.com/Article/Marketing-UK-Programmatic-Will-Norm-Once-Issues-of-Transparency-Mobile-Overcome/1011608#sthash.W3LgI3uH.dpuf
- LIMITED supported FORMATS Right now, programmatic buying best accommodates standard IAB display ad unit buys Does support formats such as to video, mobile, or custom formats e.g. homepage take over Some software being introduced called videoreach -
- Identifying mobile audiences Mobile browsing is taking over desk top browsing Mobile experience is fragmented through browsers and apps Cookies work inconsistently Data driven by audience no guarantee this will translate on mobile devises Re-targeting - the ability to target users based on sites they’ve visited previously for increased frequency or sequential messaging. Conversion Tracking the events that occur post impression (view-through) or click. Conversions normally occur after a user has visited an advertiser’s site and can include actions such as filling out a form, making a purchase, or downloading an app, file, or coupon A mobile increases and the reliance on data driven audience selection this will be more complex on mobile There are alternatives – Apple and android have special unique ID’s Comments First-Party Cookie: A cookie whose domain is the same as the domain of the visited website. Example: cookie domain is news.com placed by http://www.news.com. Third-party Cookie: A cookie whose domain is different to that of the visited website. (example: cookie domain is advertisinginfo.com placed on http://www.news.com.
- MEDIA channel vs creative ENGAGEMENT While everybody in the industry talks about programmatic as the most efficient way of buying inventory, there's less talk around creative. Not all creative is about direct response for brand builders a large percentage of ad spend its more about Award winning creative that captivates audiences and builds brand As we move up the food chain and jam higher value/quality impressions, and now video, into the same platform, the lack of quality measurement becomes a big problem. Typically the ROI on engaging creative can outweigh the cost. unruly - platform addresses viewability of premium video impressions
- CLICK FRAUD – present in days of search arguable is more incentivised with programmatic Click fraud when a computer or script imitates a user click with the intention of creating a cost per click With the rise of programmatic, the direct relationship between the advertiser and the publisher has disappeared potentially incentivising increased click fraud The way the ecosystem works incentivised by cost per click So the biggest problem about fraud is that there’s no economic incentive to block it, as third parties get less media spend, the advertisers get less clicks, and everyone makes less money. Anonymous publishers can go in and just put sites on the ad exchanges traffic they are driving to the site may not be driven by human / genuine traffic and could be for the sole purpose to extract money out of the ecosystem. - More common in larger markets such as US In January 2005 when Lane's Gifts and Collectables took Google class action suit and 70 companies joined forces to say Google didn’t do enough to prevent it We moved on since then and automatic click fraud can be traced, as it normally comes from the same IP address. Manual click fraud is harder to trace, especially as much manual click fraud could be construed as accidental Source: http://www.exchangewire.com/blog/2014/04/10/how-much-of-a-problem-is-click-fraud/
- challenges overview Google recently announced a partnership with comScore to launch the concept of online data in order to make this metric comparable for both online with offline campaigns. Some would argue the potential efficiencies outweigh the challenges and a number of the challenges The table above summarises some of the key issues and some possible workarounds Some argue inevitable efficiencies with the poetical for more specialised target Whilst others are concerned about communisation & growing rapidly and without a unified strategic compass.