Programmatic Media. Whitepaper: the future of media buying

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1 TM Programmatic Media Whitepaper: the future of media buying

2 Net Natives offer 6 key digital service areas for our clients ADVERTISING INSIGHTS & ANALYTICS CREATIVE MARKETING TECHNOLOGY CONSULTANCY CHINA

3 This whitepaper will cover an advertising service called programmatic media, just part of an organisation s digital mix. COUNTRY SPECIFIC REGION SPECIFIC DIGITAL RADIO COUNTRY SPECIFIC PAID AUDIO DIGITAL MEDIA BUYING & PLANNING PAID VIDEO PROGRAMMATIC DISPLAY MOBILE VIDEO MEDIA STRATEGY & EXECUTION OFFLINE PRINT OUTDOOR TV RADIO COUNTRY SPECIFIC GOOGLE DISPLAY NETWORK PAID SOCIAL COUNTRY SPECIFIC PAID SEARCH

4 Contents What is programmatic media buying? Why should your organisation be using it? What do you need to run a successful programmatic campaign?

5 What is programmatic media?

6 Definitions of Programmatic Media The simplest definition: Programmatic simply means automated. At its core, programmatic buying is any ad buy that gets processed through machines. The most helpful definition: Programmatic advertising helps automate the decision-making process of media buying by targeting specific audiences and demographics. Programmatic ads are placed using artificial intelligence (AI) and real-time bidding (RTB) NB. RTB alone is not programmatic advertising, turn over to find out why

7 Are Programmatic and Real Time Bidding (RTB) the same thing? No! RTB is just one feature of Programmatic. If programmatic is an automated method to determine if the advertiser wants to purchase the inventory space and at what price, RTB is just one way to actually make the purchase. So what is Real-time bidding: Real-time bidding is the buying and selling of media through real-time auctions that occur in the time it takes a webpage to load. The highest bidder wins CPM CPM CPM AD SPOT RTB CPM CPM CPM

8 How does Programmatic bidding works? A Programmatic bidding algorithm can take into account over 100 factors when determining if a bid should be made on a placement and at what price the bid is made. For example if it knows the person seeing the ad has already signed up for more +28 information on +13 your website it X is more likely +6 to bid higher for that impression. This all happens in real-time and for every impression purchased POSITIVE Factor MARGINAL Factor NEGATIVE Factor

9 Programmatic is one tool in the advertiser s toolbox Paid Video Paid Social Paid Search Paid Audio Programmatic Media Traditional Media Google Display Network

10 Natives Ads Conversion Funnel AWARENESS Programmatic Google Display Network Digital Media Buying Paid Social Paid Video Paid Audio Repeat PROSPECTING RETARGETING SEARCH CONVERSION Paid Search Programmatic e.g. act-a-like Paid Social e.g. look-a-like Programmatic Google Display Paid Social Paid Search

11 Conversion Funnel Stages Explained AWARENESS is the first stage of the conversion funnel. These consumers are not aware of your brand and have not yet considered what you are providing. This group of users is the largest group in the conversion funnel. PROSPECTING is focused on acquiring qualified consumers who are in-market that have never been to your website. Prospecting moves consumers from awareness to the consideration or preference stage, where they eventually visit your site for the first time. Prospecting often utlilises the creation of new audiences using your 1 st party data RETARGETING is serving ads to consumers that have already visited your site to drive them through the conversion funnel. These users are already halfway down the funnel, somewhere in the consideration or preference stage. Retargeting pushes this smaller pool down to the conversion event. SEARCH consumers are those that are proactively searching for your services or organisation. These users are far down the funnel and lower down in the consideration or preference stage. This group of consumers is relatively small compared with consumers further up the funnel. CONVERSIONS These are users that have completed your agreed conversion goal. An example would be a student that has applied for a course at your organisation.

12 Why should your organisation be using programmatic media buying?

13 Example Campaign Brief What do you want to achieve? An increase in enrollments on your MBA program. You would like to track course applications from your online activity. Who do you want to target? Mike People interested in completing an MBA at your university. For the purpose of this example we ll call this target audience Mike. How will you do this? In addition to Social and Search campaign activity you are considering implementing a media buying strategy.

14 Traditional Digital Media Buying Method What data can you use on Mike? You think people like Mike spend time on Financial/ Business websites.? Where do you buy ads? Mainstream Financial/ Business websites. How do you decide what to pay? You buy a block of impressions at a fixed rate CPM that you can negotiate with the publisher How can you measure success? Best case scenario, you have a media tracking solution setup so you can measure applications. Worst case, you can only track visits Can you change your targeting if you aren t seeing results? NO, all the media has already been purchased up front. X

15 Google Display Network Buying Method MBA What data can you use on Mike? You think people like Mike spend time on websites that have MBA in their content. MBA? MBA Where do you buy ads? You target websites that mention MBA in their content across the Google Display Network. This is limited to websites that are part of this network. How do you decide what to pay? You decide on a maximum CPC bid and pay no more than that dependent on what other bidders are willing to pay How can you measure success? Best case scenario, you have Google conversion tracking setup so you can measure applications. Worst case, you can only track visits Can you change your targeting if you aren t seeing results? You can but you will need to manually change this in and will need to spend enough budget to ensure you have the data to act on.

16 Programmatic Media Buying Method 25 What data can you use on Mike? You know that Mike has already enquired on your website, what browser he uses, what device he uses, exactly what websites Mike has visited as well as over 100 other data points on Mike and people like him. Where do you buy ads? You use the data you have on Mike to buy ad space on websites in real-time across multiple ad exchanges, maximising the number of places Mike will see your ad. How do you decide what to pay? The price of every impression is automatically and individually calculated based on multiple data points to ensure you maximise return. How can you measure success? Programmatic media requires a goal to work correctly so you have already set up application tracking and the cost of this is being tracked in real-time. Can you change our targeting if we aren t seeing results? Yes, your website, placement and bids are being amended in real-time depending on what is providing the best ROI.

17 What are the main benefits of Programmatic? Efficiency Buy media selectively on an impression-by-impression basis at lower cost and spend less time assessing media opportunities Relevance Deliver 1:1 tailored experiences everywhere Customer Centric Meet customers needs throughout the funnel and create more meaningful relationships

18 When should you use Programmatic? When you re looking for a more effective alternative to traditional media You have access to a range of 1 st party data i.e. website data, Big Top lead data, CRM data You want to optimise in real-time to a measured goal i.e. Course application, lead enquiry through Big Top You are looking for a 1:1 targeting approach as opposed to using average audience insights (90% of audience are students, 55% are female etc.) Programmatic is highly recommended if you are running larger strategic campaigns

19 Is Programmatic the silver bullet NO! What about social? - Although you can use programmatic to retarget on Facebook (FBX) you still will need to run paid Facebook campaigns to reach targeted audiences it doesn t cover Instagram, Twitter or LinkedIn activity either. What about search? - You will still want to be running your paid search campaigns separately to generate lower funnel enquiries. Advertising on specific websites - If you do only want to buy media on specific websites the easiest way to do this is still going direct to the publisher. You need to have data - Running an effective programmatic campaign ideally requires you to have access to enough data on your customers (web or CRM) not every marketer has this. You need to have budget - The cost point can be prohibitive for some campaigns. It can be more cost effective to run a campaign on the Google Display Network.

20 What do you need to run a successful programmatic campaign?

21 What do I need to run a successful programmatic campaign? Human Expertise Inventory Data 1 st Party 2 nd Party 3rd Party Technology Data Management Platform Demand Side Platform A d E x c h a g e s P u b l i s h e r s Your audience sees and clicks your ad

22 Data is King There are 3 types of data that can be used to target people: 1.First Party Data The Best Stuff This is data you have collected about your audience and includes web analytics data, CRM data, Big Top data. 2.Second Party Data The Next Best Stuff Second party data is essentially somebody else s first party data. This can be accessed by making partnerships with other organisations. E.g. 3.Third Party Data The Broadest stuff This is aggregated data collected from a mixture of sources by companies that specialise in Data collection and organisation.

23 Technology- Data Management Platforms A data management platform is a data warehouse. It s a piece of software that sucks up, sorts and houses data and spits it out in a way that s useful for marketers and advertisers. Data Data Management Platform 1 st Party Website CRM 2 nd Party Someone else s 1 st party data 3rd Party Aggregated data from a mix of sources Process the data What do you need to run a Segment the data ready for actioning successful Target Audience 1 programmatic Target Audience 2 Target Audience 3 Target Audience 4 Target Audience 5 Target Audience 6 Target Audience 7 Target Audience 8 Target Audience 9 Target Audience 10 campaign?

24 Some of the leading DMPs

25 Technology- Demand Side Platforms A demand-side platform is a piece of software used to purchase advertising in an automated fashion. DSPs are most often used by advertisers to help them buy media from multiple inventory sources. Demand Side Platform Ad Exchanges P U B L I S H E R S Your audience

26 Some of the leading DSPs

27 Inventory Ad Exchanges An ad exchange is a digital marketplace, often compared to a stock exchange, that enables advertisers and publishers to buy and sell advertising space, often through real-time auctions. They re most often used to sell display, video and mobile ad inventory. Ad Exchanges P U B L I S H E R S Your audience

28 Do you still need humans with Programmatic? The simple answer is Yes, an experienced programmatic human advertiser is needed. Here s just some of the many reasons? Someone needs to setup and monitor your activity- All the conversion goals and programmatic strategies need to be set up and monitored by a person to ensure they are running as planned. Effective ad creatives still need to be designed - All the advertising creatives will need to be man-made and engaging creative is more important than ever with programmatic. The programmatic landscape is complex - you need someone to be able to put together all the relevant pieces i.e. strategy, data, technology, creative and make them work for your organisation. Programmatic media is just one tool - To run programmatic successfully an advertiser needs to understand programmatic techniques but also all the other ad tools and techniques used to convert your audience.

29 In summary, programmatic media Is machine s doing the media buying - At it s core programmatic buying is any ad buy that gets processed through machines. Can be used throughout the conversion funnel - Programmatic media buying is a powerful tool to engage with your audience at different levels of the conversion funnel from awareness to retargeting. Is a Customer centric advertising method - Programmatic offers a 1:1 targeting approach as opposed to using average audience insights Utlilises 4 core elements - Data, Technology, Inventory and Human expertise are the core elements of a programmatic approach Isn t the silver bullet - It is only one tool in the advertiser s toolbox and shouldn't be used in isolation Is a complex and evolving landscape Programmatic is still very new and changing all the time. Don t expect to understand it s complexities overnight and feel free to give us a call if you d like to know more.

30 What else is there to know? Collecting 1 st party data - How can you practically gather 1 st party data e.g. web cookies, CRM records, Big Top Marketing technology Using 1 st party data to create new audiences (programmatic prospecting) Ad Serving what is needed for effective ad serving Brand Safety and Ad Fraud how to protect your brand. Using Blacklists and other methods Private Market Place Deals - What are Private Market Place (PMP) deals and how can they help you merge your direct media buys with your programmatic activity Ad Networks - How does buying from ad networks fit into your programmatic activity Programmatic for Social - How does programmatic for social work? Mobile and Video Programmatic - What inventory is available for mobile and video programmatic

31 TM Thanks and good luck with your advertising Don Skinner Director of Digital

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