June 23, 2016
Part 2 of IAB Training Series #7: Successful Programmatic Marketing
The programmatic landscape in SEA
Evgeny Popov, Director of Data Solutions at Lotame
To build on Greg Pichot’s introduction to programmatic, Evgeny Popov, the Director of Data Solutions at Lotame, gave an aerial view of the local programmatic landscape and how the different platforms work together.
This graph shows the flow current flow of platforms:
The DSP (Demand Side) and the SSP (Sell Side Platform)
Direct advertisers, agencies, trading desks and ad networks all reach out to DSPs to be able to find the right ad space at the right price for their digital marketing campaigns. On the other side of the marketplace, the SSP is an aggregator machine for inventory acting as a means for publishers to connect to more buyers. When the SSP places inventories into the ad exchange, the DSP will analyse these impressions and finds the best rate for media buyers.
The ad exchange is where a series of interactions between agencies, DSPS, Ad Agencies, SSPs, Ad Networks, and publishers take place in a matter of seconds. Here are some examples of which players are in each layer:
Now, what is the difference between a bidder and a DSP? They are actually the same thing. The DSP is a platform which is commercialised, while the bidder is a smart proprietary technology, so ad networks can actually build their own bidder as they evolve, in order to stay competitive.
Difference between RTB and Programmatic
RTB (Real Time bidding) is a subset of the programmatic ad exchange. When ads are auctioned off in real time (when an ad is requested), it gives the most accurate data on the relevance of the ad space.
While RTB is just one method of quick purchasing, programmatic is on a much larger scale of automated buying. It doesn’t only offer real-time bidding, but extends to serving marketers even outside the digital world.
Another way of buying ad space is programmatic direct, where publishers have an inventory and they have a fixed price and they sell it in advance. In this process, we have a full team of staff facilitating the trade but not in real time.
Data makes the world go round
Data is the most used word of 2016. It is the collected information through the different publishing platforms and used to further study the flow of programmatic advertising.
For the sell side, we use data to get a higher ROI. For the buy side, it’s used to figure out the most relevant inventories when targeting your market. It is a powerful element in the whole programmatic scheme because it determines the marketability of an impression.
Getting the right measurements
Measurement goes hand in hand with data. Without measurement tools, there is no ways to collate the information. This is where data management platform (DMP) comes in. The platform tracks how successful a specific campaign is and real-time updates about advertisements are put into a dashboard where buyers and sellers can evaluate their own businesses.
Without these tools, there will be no data. And without data, it’s almost impossible to keep track of how your campaign is working out.
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