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Forging a

Path to

Premium

Programmat

ic

October 28, 2015

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RhythmOne OverviewRhythmOne is a media technology company that connects audiences with brands through premium content across devices, at scale.

We work with advertisers, publishers and content providers to offer fully integrated, cross-screen advertising solutions, spanning desktop and mobile video, rich media, display, social and native formats.

B r a n d S a f e ,

P r e m i u m C o n t e n t

I n - s t r e a m V i d e o A t

S c a l e

H i g h I m p a c t C r e a t i v

e

D a t a A n d T a r g e t i n g

C r o s s -s c r e e n

S o l u t i o n s

A u d i e n c e E x t e n s i o n s

About The Presenter

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James Murphy Vice President, ProgrammaticJames is responsible for managing all business functions within RhythmOne’s programmatic division, including business development, sales, yield management and brand awareness. With more than twenty years of experience in digital media, James is an expert in programmatic, online trading, sales management and video advertising. Before his current role at RhythmOne, James held roles at AdConductor and Burst Direct.

What We’ll Cover

Premium programmatic – what is it?

Why does it matter?

Where do we agree and where is there confusion?

How do you build the right team?

What is the role of creative?

Where does premium programmatic fit?

What does the future hold?

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Premium Programmatic

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IAB DefinitionType of Inventory Reserved1, Unreserved

PricingFixed2, Auction

Participation One Seller-One Buyer, One Seller–Few Buyers, One Seller-All Buyers

Other Terms Used in Market

Automated Guaranteed Reserved Fixed One-One Programmatic guaranteedProgrammatic premiumProgrammatic directProgrammatic reserved

Unreserved Fixed Rate Unreserved Fixed One-One Preferred dealsPrivate accessFirst right of refusal

Invitation-Only Auction Unreserved Auction One-Few Private marketplacePrivate auctionClosed auctionPrivate access

Open Auction Unreserved Auction One-All Real-time bidding (RTB)Open exchangeOpen marketplace

Source: Interactive Advertising Bureau 2013

1. Reserved inventory is advertising space on a publisher’s site that is put aside for a specific advertiser for an agreed price

2. Fixed price is any arrangement where the buyer and seller agree on a flat price that the buyer pays rather than the highest bidder in an auction environment

Why it Matters

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2014 2015 2016 2017

$3.15

$5.88

$8.93

$11.65

$1.04

$2.78

$4.32

$5.93

$0.24 $0.67 $1.64

$2.86

Programmatic direct Open exchange Private marketplace

Source: eMarketer

Spend

Why it Matters

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Programmatic buying in general (direct and RTB) is a systematic way of buying – removing the middlemen and reducing waste.

Network/Site/App Desktop

Mobile

CTV

Display

Video

Native

Rich Media

The Result: cross-channel consistency, streamlined targeting, less waste

Programmatic platform with data overlays

Simplification

The Perception in the Field…When we asked practitioners what premium programmatic meant, the answer was not as clear:

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Verification?Placement?Ad Units?Pricing?Viewability?Deal Structure?Device?

So We Decided to Dig Deeper

We asked 12 industry natives their POV:

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What is it?

What isn’t it?

Frustrations?

Benefits?

How can it reach its full potential?

What we Can Agree On

In it’s simplest form, Programmatic advertising is an automated, technology-driven method of buying, selling or fulfilling advertising.

This method of buying replaces the traditional use of manual RFPs, negotiation, and insertion orders to purchase digital media.

Programmatic buying is supported by an industry protocol called OpenRTB that is maintained by the IAB.

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Defining Programmatic

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Premium is in the Eye of the Beholder

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The term “Premium” meant different things to different people, but ultimately, it boiled down to:

Programmatic used to be about targeting alone

Good Placement Quality Ads

Audience Targeting

Creating the Right Team

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What it was… What it is becoming…

• Network/site negotiation, “Premium” placements

• Device centric• Monthly IOs• Individual channel KPIs

• Pricing based on audience quality

• Cross device• Flexible timing• Cross-device KPIs

• Niche ad units• Single messages• Not involved in optimization

• Scalable ad units• Audience-specific messaging• Involved in real-time optimization

• Manual deployment• Decentralized• Fraud is mostly opaque• Post-campaign reconciliation

• Automated deployment• Centralized• Increased viewabilty and verification

• Pre-campaign filtering

• Manual, placement-based optimization

• Campaign-based test-and-learn

• Automated deployment• Cross-channel optimization• Real-time test-and-learn

Planning

Creative

Execution

Optimization

Data

Keeping Creatives Creative

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By harnessing data and embracing technology, creative teams can create beautiful, high performing marketing campaigns.

Creative Technology

Old school creative “hand off”

Programmatic – Beyond Retargeting

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Awareness

Acquisition

Advocacy

Where your audience is and how to move them from awareness to acquisition to advocacy across platforms.

In it’s early life, programmatic was thought of as primarily an acquisition or re-engagement channel.

With advancements in targeting techniques and ad types, premium programmatic can play a role throughout the funnel.

Campaign Objective

The Bigger Picture

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Premium programmatic can fit numerous goals, but…

It will always work better when integrated with a broader plan that allows you take advantage of:• Break-out ad units• Grass roots influencer, events and social marketing

• Non-programmatic channels like linear TV.

Awareness

Acquisition

Advocacy

Campaign Objective

Results Driven Solutions

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The trick is to always keep the story cohesive and relevant, no matter what the channel…

Not Your Big Brother’s Programmatic

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Innovation in the programmatic landscape is happening fast and furious, including:• Cross-channel and omni-channel targeting• Robust in-app and mobile web inventory• Video everywhere!

What’s on the horizon for programmatic?• True cross-channel tracking and optimization• Omni-channel channels: TV, Digital out-of-home, expanded native and social amplification

Beyond?• All media purchased systematically, programmatically – defining the relevance of every channel

• Marketing will become an investment, not simply spend

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Thank You