navegg ebook-online-media-from-direct-sales-to-programmatic-media
TRANSCRIPT
Table of contents
Introduction .............................................................................................
In the beginning ......................................................................................
Direct sales ...........................................................................................
Then came technology ...........................................................................
Ad server ...............................................................................................
Ad network ...........................................................................................
Ad exchange .........................................................................................
Ad network and ad exchange .............................................................
SSP .........................................................................................................
DMP – Publisher ...................................................................................
DSP and trading desk .........................................................................
DMP – Advertisers ................................................................................
Ad networks and private deals ..........................................................
3
4
5
6
7
8
9
10
11
12
15
17
18
In summary ..............................................................................................
Programmatic media ...........................................................................
In practice .................................................................................................
Advertisers who want to get into programmatic media ..................
Publishers who want to get into programmatic media ....................
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20
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02
Introduction
Calls, negotiations, proposals, CPM. Based on these themes, online
media was developed. With all the access, portals, Internet users,
campaigns and companies that have emerged in the online media
ecosystem, creating a sales model which utilized applied technology,
automation and could handle large amounts of transactions became a
necessity. Thus, programmatic media was born. With it, processes
become faster, negotiations happen by means of real-time auctions, and
it becomes possible to target an audience, reaching the right person,
at the right time, and with the right approach.
All these changes have transformed not only the way we buy and sell
media, but the way we create media plans as well as the qualifications
required by professionals in this field. To explain in detail the steps of this
process, we have developed this material.
03
Direct sales
When the Internet came about, buying online media was done the same
way as offline media. It was bought by context, that is, according to the
theme of that portal or its section and each banner format had a fixed
value. And, there were also pop-ups. Remember? Quite invasive and non-
segmented.
Advertiser/agency
Publisher
In addition, purchases were made through direct negotiation, always
by CPM, between publisher and advertiser. The problem was that the
portals started having a lot of remnant inventory*.
*Remnant inventory is inventory which the portal can not sell.
05
Ad server
Reading the market, several companies stepped up to contribute and help
the two ends of the transaction: the buyer (agencies and advertisers) and
the seller (publishers).
The first thing a publisher has to do to sell their online inventory is make it
available. For this and for monitoring, managing and delivering campaigns
to sites through banners, Ad Server emerged.
Ad Server is a software that selects which ad is most appropriate for
each Internet user, which advertiser will have their campaign on that
banner, and, after airing, provides performance reports.
Examples of Ad Servers: DoubleClick for Publishers by Google, Smart Ad
Server, OpenX, Real Media and E-planning.
Advertiser/agency
PublisherAd Server
07
Ad network
Now, that there exists, a software where a portal could make its inventory
available, the problem of remnant inventory could be solved. For this, AD
Networks were created.
These are companies to which publishers can make remnant inventory
available. In these companies the remnant inventory is classified,
according to it's content, and then sold to advertisers.
This model was especially great for small publishers, who lacked the
capacity to sell their remnant inventories on their on. But this, along with
other small publishers, could solve that problem.
However, with so many Ad Networks popping up, other problems
appeared: Many companies were bidding for audiences and some
advertisers would end up buying the same audience on two different Ad
Networks.
Examples of Ad Networks: Boo-box.
Advertiser/agency
Ad Server PublisherAd Network
08
Ad exchange
With this technology came RTB (Real Time Bidding), in which advertisers
participated in real-time auctions (happening during the loading of a
webpage) to compete for an impression that interested them. Naturally,
the best bid won the impression.
Because it is an automated process, it is no longer possible to do this
through direct negotiation. From this, many tools have emerged.
To run this purchase process, Ad Exchanges, which acts as a stock
exchange of impressions, appeared. This means that with Ad Exchanges,
publishers could also make available their remnant inventory of
impressions and they can be traded through real-time auctions. The only
problem is that with the passage of time several Ad Exchanges have
appeared.
Exemplos de Ad Exchanges: Yahoo AdExchange, Google Exchange,
Facebook Exchange and E-planning Exchange.
Advertiser/agency
Ad Server Publisher
Ad Network
Ad Exchange
09
Ad network e ad exchange
Having doubts about the difference between the two? The difference is
Real Time Bidding (RTB), a technology only present in Ad Exchanges
which brings more transparency to trading, investment optimization and
greater reach.
Advertiser/agency
Ad Server Publisher
Ad Network
Ad Exchange
10
SSP
Then came SSPs (Sell Side Platform), platforms that monetize inventory
and sell it in the auction system (RTB). In this way, we achieve maximum
possible monetization for the publisher through a faster, more efficient
and practical process due to the fact that portals can set a minimum bid
amount and do not need to negotiate with each advertiser because the
platform already does it for them.
In addition, SSP allows the advertiser to choose how much to pay for each
ad.
Examples of SSPs: OpenX, PubMatic, Rubicon Project, AppNexus and Right
Media.
Advertiser/agency
Ad Server Publisher
Ad Network
Ad Exchange
SSP
11
DMP - Publishers
With millions of data points being collected from a variety of sources, the
need arose for a technology that could collect, organize, and activate
this information: Data Management Platform (DMP), is a platform where
you can analyze the information all in one place. Data collection can be
performed both from first party data** and third party data***.
Subsequently, the classification of data is carried out based on
demographics, consumption habits and interests, among other categories.
Finally, data can be activated through content personalization, audience
offers, lookalike, media kits, etc.
Audiences that access the portals can be segmented according to their
interests and browsing profile, for example. Through reporting, publishers
can use this information to qualify the sale of ad slots and produce more
persuasive media kits - with information about the industry of that
particular advertiser, for example - or to verify that the target of a
campaign accesses their portal.
**1st Party - Proprietary data, as it is known, is collected within the site itself. This reflects
visitors behavior within the site.
2nd Party - Information collected on partner sites, made available for your use. For
example: A flower company selling its 1st party data to a company that manufactures
chocolate.
***3rd Party - Third party data, is data collected on other websites. Clusters, data
forming a database, that enrich 1st party data, making it possible to have a more
comprehensive vision of Internet users profiles.
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With DMPs, data can be made available through Ad Networks, Ad
Exchanges and/or SSPs. Thus, publishers can sell richer and more
accurate information about their audience (buying motivation,
preferences, social class, among others). With DMP, information is based
on the audience's browsing behavior and not just page content.
For example, a sporting goods campaign can be broadcasted to audiences
that access the economics section, because with data, it is possible to
recognize audiences who are interested in both areas.
Examples of DMPs: Navegg, Krux and Oracle/BlueKai
Advertiser/agency
Ad ServerPublisher
(with DMP)
Ad Network
Ad Exchange
SSP
DMP - Publishers
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Each DMP delivers a different type of data.
Data that Navegg delivers is:
Purchase Intention
Products your audience has shown intent to purchase. That is, researched
on, compared prices, etc.
Brands
Brands of which your audience searches for or of which they intend to
purchase.
Interests
Visitor preferences. For example, preferred team, what they search for on
the Internet and some insights about their behavior offline. Such as if they
like to go to the movies, travel, DIY (do-it-yourself), and so on.
DMP - Publishers
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Technology
Which browsers, devices, and operating systems are used to access the
Internet.
Location
In what country, state and/or city are your visitors from?
Demographic
Género, rango de edad, nivel de escolaridad, clase social, estado civil y
área profesional en la que se desempeñan.
Social Media
Which social media does your audience access?
Navegg EveryOne
It produces a deep analysis of these eight clusters, with the most
important information being the visitor's buying motivation.
Navegg EveryBuyer
Delivers information about the principle profiles of consumption in each of
the thirteen market industries.
DSP and trading desk
Have you noticed that all the creations until now were linked to publishers
and their needs? Well, the next development was the creation of DSPs
(Demand Side Platform) and Trading Desks, which leans more towards
the advertiser and was developed to meet the needs of this side of the
process.
DSP is a platform that automates the purchase of media and through
which advertisers and agencies buy the impressions which are in the Ad
Exchanges. Since a DSP can be plugged into various Ad Exchanges and
portals, media buying thus becomes concentrated onto one platform,
solving the problem of there being many AdExchanges, while optimizing
and speeding up the process.
Advertiser/agency
Ad ServerPublisher
(with DMP)
Ad Network
Ad Exchange
SSPDSPTrading
Desk
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Advertisers or agencies can operate the platform alone or contract a
Trading Desk to perform this service. In both cases, the important thing to
understand is that decisions will be made on the basis of data.
Examples of DSPs : Brightroll DSP from Yahoo, Google DoubleClick Bid
Manager, MediaMath, Turn, Ignition One, Live Rail (video), Tubemogul and
Melt.
Examples of Trading Desks: Publya, Cadreon, Amnet, Affiperf and Melt.
Advertiser/agency
Ad ServerPublisher
(with DMP)
Ad Network
Ad Exchange
SSPDSPTrading
Desk
DSP and trading desk
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DMP - Advertisers
In order to manage and be able to rank all of their data, advertisers
needed a DMP platform that would collect, organize, and activate the
audience. In this case, the driving benefits are:
• Retargeting
• Lookalike
• Campaign Attribution
• Web analytics
• Data-driven
• Cross-device
• Event-triggered
• Dynamic Creative Optimization
• Campaign Segmentation
• Personalization
Examples of DMPs: Navegg, Knux and Oracle/BlueKai.
Advertiser/Agency
(with DMP)Ad Server
Publisher (with DMP)
Ad Network
Ad Exchange
SSPDSPTrading
Desk
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Ad network and private deals
Note how Ad Networks did not disappear from our diagram. This is
because they have recycled themselves and can now bridge the gap
between advertiser/agency and publisher or sell to Trading Desks,
DSPs, Ad Exchanges or SSPs.
Direct sales has also continued in existence and has accompanied the
technological evolution. Nowadays, it is possible to carry out private
deals on SSPs. That is, direct sale agreements, with special values, which
run on a programmatic platform. The sale is traditional but the operation
is modern.
Advertiser/Agency
(with DMP)Ad Server
Publisher (with DMP)
Ad Network
Ad Exchange
SSPDSPTrading
Desk
18
Programmatic media
All of these processes that automates the buying and selling of media, and
principally uses data to do it, is what we call programmatic media.
The biggest change we've seen from before until now is the automation
of the process. This allows for greater use of investment, inventory
and negotiations and in carrying out more effective campaigns. On
the next slide, you will see a chart showing the changes brought about by
programmatic media.
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Before Programmatic With Programmatic
Negotiation Direct between advertiser/agency and portal.
Direct, but mostly, through RTB.
Platforms Unnecessary because everything was done manually.
Transactions occur through a DSP.
Audience Segmentation
Purchases were by context. Either the most accessed spaces were chosen or spaces that contained specific content that could be read by a certain audience. For example: sporting goods companies advertised in the sports pages.
Purchase by audience. You choose the audience profile that you want to impact. ****Not only does the demographic data matter but also preferences, purchase intentions and the motivations of the Internet user. This allows, for example, the sporting goods company to advertise to people with an intention to purchase a particular type of product, regardless of the pages where they navigate.
Dispersion
There was a lot of dispersion because, using our example above, the sports pages reached people who had no intention of buying sporting goods.
Here the shot is accurate. With segmentation, there is no further dispersion of ads on random sites.
EfficiencyYou paid for an inventory that could have a lot of dispersion.
Investment is optimized because you reach only the people who are relevant.
****To find out what Internet user's
characteristics are, DSPs use data provided
by data providers. To find out what your
target audience profile is, agencies and
advertisers use the information provided by
analytics specializing in bringing qualitative
information about target audiences or
information from a DMP.
Programmatic media
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Advertisers who want to get
into programmatic media
To get started, companies should first consider these points:
1. Investment - As we can see above, there are a number of platforms
that will be needed if we are to enter this world: DSP, DMP, Data Provider,
Trading Desk (to operate the DSP, if you prefer). In addition to the costs of
these platforms, you should also consider your campaign budget. Some
DSPs and Trading Desks charge minimal investment amounts.
2. Support - We advise you to have an IT team to provide technical
support related to the installation of API tags and integrations, in addition
to marketing and commercial area professionals, ready to handle issues of
BI, campaigns, programmatic media, and data usage.
3. Prior Steps - Before moving onto programmatic media, it is worthwhile
to take a few other steps. Like, having a CRM, retargeting, buying
sponsored links and/or social media ads and knowing the profile of your
audience.
Having considered these points and decided that programmatic is the
best strategy, it's time to look for a DSP or a Trading Desk (best suited for
beginners in this field) and a DMP.
If it's not yet the time, you can prepare by saving your audience
information with CRMs and analytics solutions specialized for this – like
Navegg Solution for websites, blog and e-commerces. These platforms
will store information about your audience, which will be valuable when
the time is right for programmatic media.
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Publishers who want to get
into programmatic media
To get started, companies should first consider these points:
1. Investment - As we can see above, you will need to invest in DMP
platforms.
2. Support - We advise you to have an IT team to provide technical
support related to the installation of API tags and integrations, in addition
to commercial operations professionals who are ready to handle issues of
campaigns, programmatic media, and data usage.
3. Volume - Ideally, the portal should have at least 15 million page views
per month.
Having considered these points and decided that programmatic is the best
strategy, it's time to look for a DMP and align with your business team.
If it's not yet the time, look for more basic analytics solutions - such as
Navegg Solution for websites, blog and e-commerces which can store
information about your audience, which will be valuable when the time is
right for programmatic media, and for creating more persuasive media
kits.
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Navegg is the benchmark in the data intelligence market and with online audience data in Latin America. Founded in
2008, Navegg, based in Brazil, analyzes navigation habits, interests and web audience behavior on desktops and mobile
devices. Navegg has a database of over 250 million Internet users on more than 100,000 websites, blogs, portals, search
engines and e-commerces.
Navegg's proprietary technology classifies Internet users based on browsing behavior. Currently, eight out of ten of the
leading publishers in Latin America use Navegg solutions for content personalization and campaign targeting, as well as
large agencies and advertisers, e-commerces and blogs.
navegg.com/en