Kantar Media's Look Into Programmatic Answers Many of the Key Questions

by Ronn Levine, SIIA

“What do we mean when we say, programmatic?” asked Michael Morrow, marketing director for advertising intelligence, Kantar Media, in a Connectiv webinar last week titled Media Boot Camp on Programmatic Buying Part 1. “Historically, people have said open auctions, real-time bidding. It’s important to know that the programmatic eco-system is much broader than all that. At its essence, programmatic is an umbrella term for automated and data-driven ways that you can offer your inventory to buyers.

“It’s crucial to remember that programmatic is no longer just a buzzword and it’s no longer just a buzzword for consumer media.”

Morrow and Stephen Davis, president of Kantar Media SRDS, delivered 50 information-packed minutes to the Connectiv audience, emphasizing that if you’re not at least asking the right questions of your marketers and customers on programmatic, then you’re falling way behind.

(A video and recording of the presentation is available here. A part 2 will be held Sept. 20 at 2 pm. You can register here.)

Morrow described the three “big buckets of programmatic” used in the industry.

1. The Open Ad Exchange/Real Time Bidding/Open Auctions is basically offering your inventory into a real-time bidding environment. “It’s where programmatic began,” said Morrow. “It’s the simplest way for publishers like us to monetize the inventory that’s going unsold. We might as well put it up for sale.”

The SRDS database has a collection of ad networks and ad tech vendors, Davis added. This part is an automation of those ad networks… You’re not seeing your high-quality advertisers taking advantage of that space.”

“Over time, this has evolved as well,” said Morrow. “Publishers have tried to improve their yield.” But even with something like header bidding, there are positives and negatives in this form.

2. Private exchanges are used by publishers to more carefully control who can buy their inventory and at what price. Instead of throwing ad impressions into an open exchange and letting anyone have access to them, you can open an auction environment to a handful of your favorite advertiser clients or to an agency that you have a close relationship with. You might want to set up a private marketplace to exclude or cut off access to other networks that might be reselling your ad impressions on the open market.

There’s also something called an unreserved fixed rate where publishers can negotiate a deal with advertisers for non-guaranteed inventory. The buyers can still access your inventory programmatically but you get more control of your price and what’s available.

“It still gives the marketer the right to buy at the impression level,” said Davis, and to target that level based on the audience criteria, or whatever specific criteria they have to serve that ad against that target audience.

3. Automated guaranteed, programmatic guaranteed is the closest you get to a direct sale with your client. It’s a one-on-one transaction where you have guaranteed inventory on your site, you’re making it available for a fixed price. “What makes it programmatic is the injection of technology into automating the RFP—autiomating the campaign tracking and the actual execution of the buy,” said Morrow. “It gives buyers control and reassurance of the safety of where their buy is going and it gives you maximum control over who’s buying what and at what cost—a fixed model with one seller and one buyer. These are resulting in the highest CPMs for you and the strongest assurances to the buyers. They want that quality.

Davis pointed out the three biggest insights from the study that Connectiv and Kantar undertook together. B2B advertisers are already spending significant sums programmatically. Spending is shifting from conventional digital budgets. And B2B marketers, through these programmatic asks, on audience and inventory quality which includes not just ad positioning but also in the right context against content that is relevant.

View the full article from SIIA

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