November 10, 2015

Part 1: Summary of IAB Programmatic Training - Unpacking Ad Tech Alphabet Soup
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There weren’t enough road snacks to go around during the traffic jams, but the IAB training sessions in Jakarta and Kuala Lumpur were a hit! In partnership with the Indonesian Digital Association (IDA) and Malaysian Digital Association (MDA), we trained up members and non-members during our programmatic training session.

In this fast evolving space, there are so many terms being thrown around and sometimes new terminology is made up and gets circulated. These sessions keep digital media leaders on the same page about what’s going on in the industry.

By breaking down all the ad tech acronyms, and explaining the importance of the terms, we’ll be able to communicate better.  


What’s programmatic?

It’s the question everyone wants to know but no one wants to ask. James Sampson, VP and General manager of Data Xu sums up the latest phenomenon in ad tech.

“Essentially, it’s the simplification of the buying and selling process, bringing operational and pricing efficiency by digitally connecting the buyer and seller, enabling the programmatic purchase of ad placements via trading platforms.”

Let’s break advertising up to then and now:

The main theme is that the buying and selling of media has evolved from traditional methods to more specific and efficient models, all powered by data to reach the right audiences.

A Data Management Platform (DMP) is a system that allows the collection of audience intelligence by advertisers and ad agencies, thereby allowing better ad targeting in subsequent campaigns.

Data powers this whole ecosystem and there are many ways to use it:

Behavioral targeting: Using previous online user activity to generate a segment, which is used to match advertising creative to users.

Contextual targeting: Targeting content that deals with specific topics, as determined by a contextual scanning technology.

Semantic Targeting: A type of contextual targeting that also incorporates semantic techniques to understand page meaning and/or sentiment.

Although we’ve been talking in the context of display, these buying methods happen across all channels and devices. Programmatic is not a new media format - it’s a way for us to take all of the tools created in the last 10 years and make it work for marketers and publishers.


Clearing the hype of Demand Side Platforms (DSP)

What is Demand Side Platforms (DSP)?

Andrew Tu, Managing Director APAC of The Trading Desk, cleared up all the miscommunication about DSP. Essentially, it is a system that lets buyers of digital advertising inventory manage multiple ad exchange accounts through one interface.

The key elements in a DSP are:

  • Touch and feel: Self service user interface (upload and run)
  • Transparency: What you see is what you get (WYSIWYG) and not a ‘black box’
  • Aligned with the DEMAND/BUYERS and do not have allegiance to SUPPLY
  • True omni-channel: Display + Video + Mobile + Social
  • Total Control: Ability to optimise across multiple vectors
  • Integration with multiple partners and tools, e.g. data, brand safety,     content/contextual, viewability, etc.

When you have this kind of transparency, there is less media of advertising.

What’s media waste?

Like shooting fish in a barrel, waste comes from failing to target your audience. You get real value once the buyer is getting targeted advertising, then they can demonstrate ROI increases.

In the world before programmatic things were more “2D”

  • We thought of an audience as a consolidated group of people who looked at a certain block of content – be that a website a TV show or a newspaper
  • We saw audiences in aggregate and accepted that there was wastage
  • We tried to mitigate this wastage as best as we could

In a programmatic world we see things in a more “3D” way

  • We see the audience as people with common attributes
  • We have “uncoupled” the audience from the content – but this does not mean we cease to value content or no longer use it for targeting
  • Content becomes a variable – like day-part or geography

How does the client win?

  • Getting messaging on target means less impressions are needed to cover the target audience, saving money
  • Without targeting people on the individual level, any real form of frequency control is impossible. This saves more money
  • Assessing performance using probability can help even more – but are we there today in APAC – Maybe not

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