Programmatic

Buying / Selling

Joe Bob Hester / @joebobhester

Programmatic


fast-growing part of the buying and selling of media


2013 “real-time bidding": $3.36 billion (US)


2012 <= $2.0 billion


$8.7 billion by 2017

What is "Programmatic"?


"An automated system to make media buying decisions instead of doing it manually”

- Allie Kline, CMO of AOL Networks


Automatically triggered by an event and deployed according to a set of rules applied by software and algorithms.


Understanding Programmatic Digital Advertising

Ad exchanges


Technology platforms that facilitate the bidded buying and selling of online media advertising inventory from multiple ad networks.

Online ad network


Company that connects advertisers to web sites that want to host advertisements.


Aggregate ad space supply from publishers and match with advertiser demand.


Central ad server enables targeting, tracking and reporting of impressions.

DSP


Demand-side platform: system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface.

SSP


Supply-Side Platform: platform enabling publishers to manage their ad impression inventory and maximize revenue from digital media.

Real Time Bidding


Advertisers buy individual advertising impressions from publishers via an auction-based system in real time.


Currently, most inventory sold through real-time bidding/programmatic is remnant or network inventory.


How an Ad is Served with Real Time Bidding (RTB)

Real Time

Challenges

  • Educating advertisers & publishers
  • Cross-device targeting
  • The end of cookies?
  • Inventory quality

New Creative Opportunities


EX: Starbucks / Facebook / Weather

What about TV?


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