Results tagged “programmatic” from IABlog

Programmatic Advertising: Fact or Fiction

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IAB’s Head of Brand Initiatives, Peter Minnium talks with Diaz Nesamoney, author of Personalized Digital Advertising: How Data and Technology Are Transforming How We Market, about this new media darling.

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The “right message, right person, right place and time” is the oft-cited Holy Grail for digital advertising. While the industry has made great strides in the latter two, driven by an avalanche of tech and data resources, innovation has sorely lagged in the “right message” area. Until recently, brands have been serving 1990s-style ads with 2015 technology. Today, the capabilities exist to raise programmatic media to its full potential with tech-enabled creative - digital ads that pivot away from restrictive ad formats to become data-driven, dynamic canvases. Diaz Nesamoney, CEO and Founder of Jivox, feels so strongly about the potential that he wrote a book on the topic, and we convinced him to share his views.

IAB: As the founder and CEO of a rapidly growing company, you seem to be busy enough; why did you decide to write a book on personalized digital advertising? 

Diaz: For the eight years I’ve been in the digital advertising business, I’ve obsessed about the nearly complete lack of automation and technology applied to creativity. Over the years, there’s been more and more technology coming in to play in some parts of digital advertising, such as media, and woefully missing in others—particularly in the area of creative and delivery of creative. When I was approached by a publisher to publically address this issue, it was too good to be true. I jumped at the chance.

IAB: The first part of the holy trinity for digital advertising - Right Message, Right Person, Right Time - has been neglected for a long time. Why is the emphasis changing now? 

Diaz: The industry’s focus on programmatic buying and selling yielded critical strides forward in terms of scale and efficiency, but took us significantly backward in terms of creativity, suggesting that scale and content were inversely related. Big Data is proving that proposition to be patently false. We now have phenomenal amounts of data to play with as marketers. Two years ago, there was no such thing as a wearable health band, the iWatch, or Nest but now here we are and users are engaging with a plethora of devices that generate all sorts of data. People are willingly offering it in exchange for personalized experiences. So, in one fell swoop, we can change the value proposition of digital advertising and deliver 21st Century creativity at 21st Century scale.

IAB: I am very interested in the second part of this, around the plethora of data that is now available. How do marketers turn this Big Data into actionable signals that tangibly drive creative decisioning and serving? Isn’t that a missing link today? 

Diaz: It is. It’s almost to a point where you can’t listen to a marketing presentation that doesn’t have the words “Big Data” in it. It’s as though data alone will somehow magically make marketing better. That couldn’t be further from the truth. It’s not really the data, in itself, that has value but rather the ability to harness data to create personalization. The missing piece has been data applications — how to tap into data to use it as a trigger. 

IAB: Help me understand the definition of “personalized digital advertising” and how it differs from DCO (Dynamic Creative Optimization)?

Diaz: The idea of creative optimization itself is not new. In the beginning of web advertising, we knew absolutely nothing about users. In fact, the web was all about being anonymous back then; A/B testing was king, i.e., trying different variations of creative, seeing how users respond, and then picking the one that works best. Next, we went to a cookie world in which there was a potential to do something more interesting. This was the birth of DCO. Today, however, we are seeing a significant inflection point: we’re data rich and have a much more complete view of the user, not just “they went to my website and I can re-target them” or optimize creative somehow to perform better—but now I actually know their preferences, where they are and what they’re likely to respond to. So I can craft and scale very precise messaging to them. That is the difference between personalization and DCO: personalization is about having the 360º view of every user, using a broad set of data, and creating unique ad experiences for each of them.

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IAB: In your book, you put forth what I think is a very provocative point of view that tailoring your audience to your advertising is less efficient than targeting your media very broadly and tailoring the message to the individual? 

Diaz: Audience targeting is useful up to a point, but the audience segments available today still require a “spray and pray” approach — throwing a lot of stuff out there and hoping something sticks. If you take a single product, such as an automobile for example, you and I could be considering the same car, but end up buying it for entirely different reasons that have to do with our personal tastes, what kind of sports we engage in, and where and how we drive. There are many different things that lead up to our decision to buy, so why should we be marketed to in the exact same way? We both belong to the same audience segment broadly speaking: professional men of a certain age group, but what does that really tell us? If you don’t have any other choice, certainly audience targeting is better than nothing, but I think technology and data are coming together to do better, to say, “This is specifically what we want to tell Peter because we know what Peter likes and what he doesn’t like.” It’s not unlike walking into your favorite restaurant where the maître d’ knows you, knows that you like to sit at the back of the restaurant, knows your favorite drink. You like that. People like that. People these days almost expect it. Technology is allowing us to do it at scale.

IAB: From a practical standpoint, what three things does a marketer or agency need to do, or start doing tomorrow, to take advantage of the capability to truly personalize digital advertising? 

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Diaz: First, start small. Yes, you can use many, many data sources and create intricate logic trees, but rather than get caught up in analysis paralysis, first take a small step forward by using whatever you have that’s easily available and go from there. 

Second, embrace technology. Without the automation and the scale, it will end up being an incredibly frustrating experience for everybody involved. This has been the past experience with DCO, which is probably why it hasn’t really come together the way it obviously should have. 

Third, be careful what you measure. DCO was optimized for direct-response and clicks. Personalized advertising can have an impact well beyond these rudimentary actions that have led many to underestimate the value of a relevant, well-timed ad to register in somebody’s mind. Personalized advertising has a broader impact, changing attitudes and perceptions as well as behavior over time. These impacts are harder to measure. I am not saying that they can’t be measured, but rather that we should not be using traditional click metrics to measure the success of personalization.

IAB: Thanks, Diaz, and good luck with your book.

For more information and a deeper dive into programmatic creative, register for “Programmatic Creative: Fact or Fiction,” to be held in the IAB Ad Lab on July 15, 2015, 5-7PM.

About the Author
peter-minnium-headshot.jpgPeter Minnium 

As the Head of Brand Initiatives at IAB, Peter Minnium leads a series of initiatives designed to address the under-representation of creative brand advertising online. He can be reached on Twitter @PeterMinnium.








 
Programmatic is the way business is done today. 2014 was a momentous year for programmatic advertising with a large amount of advertisers shifting their budgets into programmatic, as well as continued growth in mobile and video automation. According to eMarketer, automated advertising is expect to reach $20.41 billion, or 63.0% of US digital display ad spending by 2016. Programmatic-technology enabled automation and RTB-auction based internet ad buying are gaining market share, driving the need for universally adopted standards. 

Even with the all the stats supporting the dramatic shift to automation, adoption of the latest version of OpenRTB, a common protocol that enables buy and sell side platforms to talk to each other, has been slow. Many DSPs are still only supporting OpenRTB 2.1, and are shying away from upgrading to OpenRTB 2.3 because they don’t have any immediate plans to break into the Native space. OpenRTB 2.3 isn’t just an industry shaping measure that provides a framework for Native to be transacted on programmatically -  the latest version of OpenRTB also provides significant support in other areas of Real Time Bidding. 

Upgrading to the latest model or software for our phones is a compulsion for many of us. We can’t wait to see what new features and improvements are being offered. It’s very unlikely for one to hesitate upgrading to the latest version of iOS because it has some features you may not have need of at this very moment in time. These upgrades provide more than just an increased feature set, they include bug fixes, improve battery life, and offer a wide variety of quality of life improvements. Yet when it comes to tech specifications, many companies make the mistake by waiting too long to update thinking it’s not relevant or valuable to them. You wouldn’t think twice about upgrading your phone, why would you stall on upgrading to the latest version of OpenRTB? Inventory that could be made available or made more valuable isn’t. Deals that could be made aren’t.  

When it comes to open standards in programmatic, it’s important to think of the bigger picture. As Nitin Gupta, Director, Product Management at Millennial Media puts it, “OpenRTB 2.3 isn’t just about native, it includes native.” In addition to native, the latest version of OpenRTB provides:

  • Significant upgrades that improve the programmatic workflow buyers and sellers
  • An indicator for mobile optimized sites, helping to ensure the right creative is available
  • Support for signaling supported image dimensions/resolutions, allowing bidders to make smarter buying decisions

Bidders should upgrade to OpenRTB 2.3 to take advantage of all the features and clarity brought, in addition to the support for Native.  

In fact, many SSPs are having to put extension options in place to support OpenRTB 2.1. Gupta explains, “Whether you are looking for parameters in 2.3 or extensions objects of 2.2, it requires the same amount of work from a development standpoint.” Regardless of whether or not a DSP has native aspirations in the immediate future, it’s important to note that all the additional fields that have been added in OpenRTB are optional. If you are interested in pixel ratio, you don’t have to go around looking for extensions and partners, it’s supported in OpenRTB 2.3. You can reap the benefits of 2.3 at the same short term cost as making 2.1 support features the marketplace demands - and be better positioned to adopt future iterations.

So if you already planned on upgrading your existing version of OpenRTB, take a note from your personal life. I encourage your product and engineering team to go that extra mile; skip OpenRTB 2.2 and upgrade to OpenRTB 2.3 - you’ll be surprised at all the improvements you didnt even know were there!



About the Author

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Melissa Gallo

Melissa Gallo is Director of Product, Programmatic Automation and Data in the IAB Technology Lab, at the IAB.

 



 

IAB Releases Mobile Programmatic Playbook

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We’re at an inflection point where programmatic advertising is becoming more sophisticated with the buy and sell side applying their power to a broader, more diverse set of opportunities. The benefits of programmatic across the digital spectrum are clear. With mobile an increasingly important part of the consumer’s daily life, reaching on the go consumers via this 24/7 channel is a top priority for marketers, just as learning how to fully monetize their mobile applications and mobile websites is a key goal for publishers. 

Given the growth of mobile advertising over the past year it’s clear that programmatic can be a major contributor to almost all aspects of mobile campaign success due to the combination of decision making intelligence and speed across the programmatic value chain. Brand marketers are leveraging programmatic channels to achieve the massive scale they need for their awareness campaigns, and advertisers now have access to numerous rich media, video and native mobile ad formats which excel at capturing the consumer’s attention.

There are many positive trends emerging among buyers and sellers. Both parties value native, rich media and video ad formats all of which provide better experiences to the consumer. However, in the mobile ecosystem where cookies are less prevalent, a key point to note is that programmatic buying requires greater transparency in terms of mobile data signals to enable publishers to more effectively optimize their yield and brands to achieve greater ROI. 

As the co-chair of the IAB’s Mobile Programmatic Buying Working group I am incredibly excited for us to officially release the IAB Mobile Programmatic Playbook today. This playbook is the first IAB programmatic document that covers all aspects that are unique to the mobile programmatic environment so that publishers, third parties, advertisers, agencies and marketers have a guide to learning more about the current state and evolution of the mobile programmatic market when planning their strategies. 

In addition, as further evidence that mobile programmatic is making waves, it will be one of the main subjects discussed at the IAB Mobile Marketplace conference on March 30th in New York.


About the Author
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Rob Kramer

Rob Kramer is General Manager of Mobile at OpenX



 
The IAB is only as strong as its members. 

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Each month IAB selects a member company who has demonstrated both exceptional leader and learner roles due to their elevated participation in IAB activities. Member participation in our initiatives not only empowers committees & councils to create industry-wide accepted specifications, guidelines and best practices, but also gives member companies and individuals the opportunity to have their voice heard and receive visibility for their efforts. 

This month we spoke with BrightRoll, who has taken advantage of Town Hall speaking opportunities, Webinar attendance, 3MS Educational Forums, Quality Assurance Guideline Training, IAB.networking events, and much more.


What does your company do, and specifically how does it serve the digital ecosystem?
BrightRoll builds software that automates digital video advertising globally. The company enables advertisers, publishers and technology partners to grow their business through the industry’s leading programmatic video advertising platform. 

Brands, agencies, agency trading desks, demand side platforms and ad networks use our technology to reach precise audiences at scale, reduce waste, improve performance and simplify the complexity of video advertising across screens. 

On the publisher side of the business, BrightRoll enables more than 21,000 websites, mobile websites and apps to maximize their yield and efficiency, provide control over pricing and the advertisers appearing on their sites, and simplify the process to enable the delivery of advanced video advertising formats across multiple screens.

In addition, BrightRoll partners with a consortium of technology and data companies to bring advanced capabilities to the video ad ecosystem to help marketers improve the efficacy of their programmatic video advertising campaigns.

What initiatives is BrightRoll looking forward to working with the IAB and its member companies on; and how do you motivate your colleagues to get involved?
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Tim Avila, SVP of Marketing Operations, BrightRoll
BrightRoll is an active supporter of all IAB initiatives focused on establishing guidelines, standards and best practices for digital video advertising. We look forward to continuing leadership efforts around industry wide initiatives to combat ad fraud, including the IAB Trustworthy Digital Supply Chain and IAB Quality Assurance Guidelines. BrightRoll also looks forward to actively participating in multiple working groups including the research council and the digital video, 3MS and programmatic working groups.

The value the IAB brings, not only to our business and clients, but to the industry as a whole, is evident to employees across our organization. A number of BrightRoll colleagues are active participants in IAB efforts and have either contributed thought leadership at events or joined committees and councils to support important industry initiatives. We encourage our colleagues to attend IAB events and have hosted IAB leaders at BrightRoll events to promote the progress being made by the organization and its members. We value the various opportunities the IAB offers for our employees to become involved and we encourage other industry professionals to join us in moving the industry forward.

How have you leveraged a leadership role at IAB over the past year and what was your take-away from the experience?
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Sable Mi, Senior Director, Research Strategic Planning, BrightRoll
I have been a member of the IAB for nearly four years and it has continuously proven to be a rewarding experience. Being a digital research strategist, I am always looking for better ways to measure and prove ad effectiveness across media. Working closely with IAB provides me with the opportunity to collaborate with industry leaders and continuously improve the efficacy of digital advertising.
My most recent leadership role with the IAB was at the Cross-Screen Video Town Hall where I presented ‘TV & Mobile: The Complete Picture,’ which tells a compelling story of how TV and mobile video together improves reach and cost efficiency. In addition to the town hall presentation, I have been actively involved with the IAB Research Council and its Advisory Board, Emerging Innovation task force as well as Data, Mobile Video and the Ad Effectiveness working groups; all of them are playing crucial roles in moving the industry forward. 

There is never a dull moment in this rapidly evolving industry and I value the opportunity to be a part of the initiatives that are contributing to the growth of the industry. This progress wouldn’t be possible without the dedication of the IAB and its members who have collectively provided thought leadership and guidance in standardized measurement, data and inventory quality, cross-platform ad effectiveness, and more. It is incredibly valuable for leaders from across the digital ecosystem to come together to share their expertise in an actionable way and I am honored to be a part of it. 

How did you participate as a learner at IAB over the past year and what was your take-away from the experience?
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David Liu, Business Development Manager, BrightRoll
Being a member of the IAB has been an incredibly valuable experience and I appreciate the expert learning opportunities that it provides. I began my career as an Ad Operations Manager at BrightRoll and was excited to join IAB Ad Ops Council to learn the more about the operational efficiencies within interactive advertising. Even as I’ve transitioned into my new role as a Business Development Manager at BrightRoll, I continue to find that the IAB’s diverse services are immensely valuable. 

Most recently, I attended the IAB Internet Advertising Revenue Report Webinar to monitor the latest spending trends in digital advertising and to get a better sense of where the video is headed. It’s our goal to integrate leading companies into our BrightRoll Partner Program and this report serves as a valuable data point in identifying the right partners. Additionally, the business development team at BrightRoll both appreciates and leverages the advertising standards set forth by the IAB. Regardless of whether it has to do with viewability or VPAID, the IAB standards provide an indispensable baseline for our partner integration conversations.



About the Author

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Nicole Horsford

Nicole Horsford is the Member Services Director at IAB.


 
On October 23rd, thinkLA and IAB were thrilled to host a Programmatic Summit in Los Angeles, in association with eMarketer. Our first ever collaboration focused on the rising tide of programmatic within digital media. Over 500 brand marketers, media buyers, online publishers, ad networks, ad exchanges, and other solution providers came together to discuss and debate the next evolution of programmatic. 
 
Here are the top 10 takeaways from the event about programmatic:
  1. Programmatic is more than RTB. There is a lot of confusion over the term programmatic, which many people mistakenly believe is only real-time bidding (RTB) or used only for remnant inventory. Ultimately programmatic is the process of buying and selling media in an automated fashion. This includes four main types of transactions - open auctions, invitation-only/private auctions, unreserved fixed rate/preferred deals, and automated guaranteed/programmatic guaranteed deals. Every time someone says the word “programmatic” make sure you ask what exactly they mean. Watch this Digital Simplified video that explains how one part of programmatic, RTB, works step by step.
  2. Lots of challenges still exist to enable programmatic to work. Concerns that were addressed throughout the event included transparency, fraud, and trust; limited understanding and knowledge; confusion over terminology; moving from direct response to branding dollars, moving from mostly standard banners to native, video, rising stars, and audio ad formats; internal organizational challenges for brands and publishers; and delivering different creative through programmatic.
  3. Programmatic is big and getting bigger. The programmatic market (including auction, and direct deals) is expected to top $10B in 2014 and grow to $20B by 2016. For now, RTB remains the dominant part of programmatic spending (92% in 2014), but is expected to fall to under 60% of total programmatic spend by 2016 as programmatic direct increases. Within RTB, open auctions account for 88% of total RTB spend, though this is changing with private marketplaces growing significantly faster. While display is still dominant for now, mobile and video programmatic are growing fast.
  4. Fraud and trust are big issues, but are being tackled by the industry. Bots and fraud have become a big issue mainly due to the large sums of money involved. The IAB and the industry are building a trust stack to tackle fraud, malware, piracy, and transparency and include these in a joint cross-industry accountability program) building on the existing Quality Assurance Guidelines. Advertisers and buyers should make sure they know their supply sources, choose their vendors carefully, and always remember “If it’s too good to be true, it probably is!” Publishers need to ensure they are coordinating between sales, marketing, operations, and analytics to identify any strange traffic patterns and remember if they are doing audience extension they need to apply the same controls as buyers should.
  5. Publishers can hit a home run with programmatic video. The concern that programmatic has been perceived as a “race to the bottom” for rates and yield has not been the case in video due to restricted supply. Publishers can use programmatic to fund the creation of quality video content particularly by helping to monetize traffic spikes. Ultimately efficiency doesn’t have to mean lower CPMs; it can also mean more effective engagement.  
  6. Measurement matters even more in a programmatic world. Brand marketers are looking for transparency, inventory quality, and technology simplicity. Buyers should ensure they are reaching the right audience, use a consistent, comparable metric to plan, buy, and sell audiences, use brand data to ensure advertising resonates, and ultimately ensure that the campaign drives the desired action.
  7. Attribution is essential to effective programmatic spend. Last touch attribution is outdated and is like giving all the credit in a relay race to the last runner. Attribution models should incorporate the “first site visit” separating the funnel into prospecting and retargeting, and set the right incentives to each part.
  8. Brands in automotive are leveraging programmatic. Leading brands are looking beyond the simple retargeting of ads and embracing programmatic across the consumer path to purchase from unaware to loyal purchasers. The agency automation “stack” includes four layers - unified data platform, open access to media inventory, single metrics regime, and dynamic ad creation/production/serving platform. Brands are finally learning from programmatic media to employ new tactics in automated creative—not creating by machines, but optimizing ad variables based on real-time, impression level data.
  9. Publishers need to re-org to capture the value of programmatic. Publishers are adopting programmatic as a core part of their monetization strategy. However, this can pose internal challenges. The top five ways to build a successful programmatic publisher organization were the following: align incentives and compensation; educate direct sellers and have them attend Programmatic 101 training; programmatic team to focus on supporting direct sales (agencies) and covering programmatic buying entities (DSPs, trading desks, retargeters); establish a programmatic rate card; and have internal and external quarterly budget reviews.
  10. Creativity and programmatic are not enemies. Every ad should be dynamic and leverage the same audience signals used in programmatic media buying to make the creative relevant. This can be done by infusing first or third-party data on demographics, location, and previous website behavior to alter the headline call to action, image, or assets of the ad unit to ensure the message resonates with the user. Doing this can double yield on interaction rates and increase engagement by 50%. 


 
The IAB is only as strong as its members. 

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Each month IAB selects a member company who has demonstrated both exceptional leader and learner roles due to their elevated participation in IAB activities. Member participation in our initiatives not only empowers committees & councils to create industry-wide accepted specifications, guidelines and best practices, but also gives member companies and individuals the opportunity to have their voice heard and receive visibility for their efforts. 

This month we spoke with Tremor Video, who has taken advantage of Town Hall speaking opportunities, Webinar attendance, Digital Content NewFronts, Quality Assurance Guidelines and much more. 


What does your company do, and specifically how does it serve the digital ecosystem?
At Tremor Video we’re transforming the video advertising experience across all screens for our clients. In a nutshell, we are a tech company that really understands brand advertising for video.

We’ve developed a technology platform, VideoHub®, which offers advertisers and publishers a complete programmatic solution to reach and engage consumers while providing new insights into what drives brand performance across screens.

We operate a complete digital ad tech stack for video, meaning we offer solutions for both advertisers and publishers, ranging from ad serving, to buying & selling inventory, to analytics.

The digital ecosystem has evolved to a point where a screen-specific approach is not the most effective way for marketers to reach their target audiences, so we’re helping them reach consumers in a screen-agnostic world.  


What initiatives is Tremor Video looking forward to working with the IAB and its member companies on; and how do you motivate your colleagues to get involved?
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Tim Ware, Head of Mobile/CTV Sales, Tremor Video
We work closely with the IAB to develop guidelines around a number of initiatives, including quality assurance, measurement and innovative new ad units.

As the head of mobile and CTV sales, I’m most looking forward to elevating the importance of mobile creative to showcase how effective mobile video advertising is as consumption continues to grow, particularly in tablets for 2015. I’m also looking forward to teaming with the IAB to work with affiliated industry groups like MRC as we develop Advanced TV measurement and best practices. Advanced TV combines the best of digital and TV advertising capabilities and we’re at an exciting time where over 83M US consumers are watching content on them.

Motivating my colleagues to get involved with the IAB isn’t hard because everyone fully understands the value and insights one can gain from participating. The IAB offers so many different options to get involved at any level and time commitment. Tremor Video holds seats on a number of committees and councils as well. 

 
How have you leveraged a leadership role at IAB over the past year and what was your take-away from the experience?
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Doron Wesly, Head of Market Strategy, Tremor Video
I love to tell stories, especially when I can weave in data nuggets to remind marketers that “consumers” are people just like them. We spend so much time looking at demographics and target audiences, but I like to be the person that gets everyone to take a step back see the big picture. 

Speaking at the IAB at events like the IAB NewFront Lunch, Future of the App Town Hall and upcoming IAB Mixx give me the opportunity to show people what I’ve learned from being on the road and talking to real consumers. 

Seeing the crowd nod their heads and scribble down notes reminds me how important market research is, and the IAB is a wonderful platform to share those learnings.
  
 

How did you participate as a learner at IAB over the past year and what was your take-away from the experience?
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Lisa Tanzosh, Sales Strategy, Buy-Side Platforms, Enterprise
I attended a number of events this past year, including “Using Data & Programmatic to Go Global and Build Brands” which focused on different perspectives and opinions from panelists working in all corners of the industry (agency, publishers, data, platform, etc.). The viewpoints discussed left me with three important takeaways:
    • Transparency is key, but as an industry we need to define - what does it mean to be truly transparent in the programmatic space? 
    • Now that programmatic technologies are in place, let’s find ways to implement more engaging and interactive creative in real time
    • Now that people are getting more comfortable with letting technology do the heavy lifting, we can begin to take advantage of programmatic efficiencies
As Tremor Video continues to improve its programmatic offering, it’s helpful to participate in IAB events that elevate the programmatic conversation and allow publishers, advertisers, and agencies to dig into important industry topics. 




About the Author

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Nicole Horsford

Nicole Horsford is the Member Services Director at IAB.



 
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The IAB is only as strong as its members. 

We’re delighted to congratulate Time Inc. for being the inaugural member of the month. Time Inc. was selected because they have taken full advantage of learning to leading opportunities, ranging from leading conversations on the Programmatic Council to attending educational  IAB webinars. 

Below, we interviewed those leaders and learners to hear their perspective on what is going on in digital advertising and their experience with the IAB.  

What does your company do, and specifically how does it serve the digital ecosystem?
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Dan Realson, VP Digital Sales, Time Inc. 
Time Inc. is first and foremost a storyteller. From desktop to mobile, from video to social, our diverse portfolio of brands engages 83 million passionate, loyal consumers on a monthly basis in a dialogue that entertains, informs, inspires and enriches their lives. The connections we have with our consumers are a powerful draw for our ad partners. Our scale and breadth of brands give us diverse audiences, deep insights and rich data - both offline and online - allowing us to create custom solutions that are highly targeted and contextually relevant, driving more efficiency and effectiveness for advertisers. It’s that intersection of content, context, data and scale that fuels our innovative suite of digital solutions.

Whether working directly with one of our brands, or buying programmatically across the Time Inc. digital network our advertisers benefit from the value audiences place on our quality, branded content.

What initiatives is Time Inc. looking forward to working with the IAB and its member companies on; and how do you motivate your colleagues to get involved?
Dan Realson, VP Digital Sales, Time Inc. 
Time Inc. will continue to work with the IAB on initiatives to advance industry education on programmatic as well as other initiatives such as transparency, viewability and building a trustworthy supply chain. We are also eager to work with the IAB on establishing industry-wide standards for tablet, campaign measurement, and audience measurement for video, as well as the development of responsive, multi-platform ad units.

The key to motivation is in claiming Time Inc.’s leadership position in the media community, recognizing the IAB as an arbiter and megaphone for best practices, and underscoring our opportunity to have a voice in shaping the issues that are driving our industry today.
 
How have you leveraged thought leadership development at IAB over the past year and what was your take-away from the experience?
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Patrick Landi, Executive Director Programmatic Sales, Time Inc.
I have been an active member of the Programmatic Council for publishers since last summer where I have participated in a number of initiatives to help create best practices around programmatic selling. Projects have ranged from creating guidelines for building out a programmatic sales team to developing content for a programmatic 101 webinar in which I participated as a speaker. I also helped curate content for the IAB’s recent professional development class entitled Advanced Programmatic for Direct Sellers, and I will be serving on the Digital Media Sales Certification (DMSC) exam committee later this year. Participating in this group and getting to know my peers on the council  has been an invaluable resource that I have used to help develop Time Inc.’s own programmatic sales team and strategy. I’ve also incorporated the materials from the IAB webinars into my own programmatic training sessions across Time Inc. and continue to use the IAB as a resource as our programmatic organization continues to develop.  
 
How did you participate as a learner at IAB over the past year and what was your take-away from the experience?
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Nicole Waddell, Digital Client Services Manager, Time Inc.
We are well trained on Time Inc.’s ad solutions but we rarely get to take a deeper look into what the industry as a whole is doing, especially as it relates to our colleagues at other companies. The IAB Programmatic Webinar (specific for publishers) was a unique opportunity that allowed me to see how other media companies are looking at Programmatic, what approaches their organizations are taking, how they are adapting their business strategies, and how they deal with challenges that may arise. I was encouraged to learn from an outside perspective, that even as the industry continues to adapt and grow, Time Inc. is taking a unique approach and has a strong offering in the marketplace.



To find out more about Time Inc.’s digital advertising opportunities go to www.Timeinc.com



About the Author

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Nicole Horsford

Nicole Horsford is the Member Services Director at IAB.




 

IAB Launches the Programmatic Council to a Packed House

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Last Thursday, IAB officially launched the brand new Programmatic Council at the Ad Lab in New York City. More than 160 professionals from across the programmatic ecosystem joined in person or remotely.  

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The Programmatic Council aims to bring together publishers, buyers and ad technology providers to discuss the key business issues in the evolving programmatic marketplace. The focus of this Council will be to identify and tackle what is working and what can be improved to make programmatic work more effectively. The Council is the successor to the Networks and Exchanges Committee. It will build on the work done by the Programmatic Publishers Task Force who published three Digital Simplified pieces in 2013 on terminology, salesforce models and the need for transparency.


The Council agreed to focus on the full spectrum of Programmatic transactions - from Automated Guaranteed transactions (sometimes known as Programmatic Direct) through to the Open Auction.

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Building on the agenda set by the Programmatic discussions at the IAB Annual Leadership Meeting in Palm Springs last month, the Council agreed to focus on four key issues over the coming year:

1) Building a transparent & fair marketplace - aim to come to a common agreement between buyers, sellers and vendors on what transparency means in an auction environment and agree how to achieve that.
2) Marketplace education and training - build understanding for both direct sellers and media planners, create training for C-suite executives, link to sales certification and create a common curriculum for companies to use.
3) Standardization of definitions, terminology, and best practices - start with updating existing terminology piece to incorporate buyer/ad tech inputs, and then look to create a comprehensive mapping of programmatic ecosystem including roles and definitions.
4) Making Programmatic work for brands - engage brand managers & CMOs, enable selling of new formats, build better brand metrics and make data more compelling.

The IAB will be creating working groups on each of these topics with representatives from across the ecosystem including buyers, sellers and ad technology providers. Members agreed concrete deliverables for the next 12 months for each of these four priority areas. In addition the Council identified a number of areas where this group would need to work closely with other initiatives including on trust and quality issues, data use and standards, technical standards, and video/audio committees. 


About the Author

Carl Kalapesi, Director Industry Initiatives, IAB 
Reach him via email [email protected] or Twitter @carlkalapesi



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Just the Facts, Please............

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Since releasing the IAB PwC Internet Advertising Revenue Report for the first half of 2013 on October 9, 2013, the IAB has seen misconceptions about the report, mostly centered on programmatic. Speculation about why the report does not cover programmatic revenue came from a highly esteemed and particularly smart writer and editor. We’ve seen guesstimates of programmatic’s contribution to overall interactive ad revenue based on the IAB numbers.

Why we do not report programmatic buying revenue

There are two primary reasons for not breaking out programmatic revenue in the IAB PwC Internet Advertising Revenue Report:

  1. The industry has yet to reach a consensus on how to define programmatic buying, spend and selling.  If we cannot define it, how can we collect credible revenue information?  Does anyone really expect that a revenue bucket or a spend bucket that has not yet been clearly defined is being accurately tracked by any of the entities we would have to get the information from?

  2. Programmatic is a FORM of selling.  It is not a format or medium of distribution.  Currently and throughout its history, the IAB/PWC report has explored formats and mediums; it’s never looked at selling mechanisms.

Guesstimates of programmatic revenue based on the IAB PwC report are not sound

Based on how the revenue data are collected and how they are reported, it is simply not possible to estimate programmatic ‘s contribution to growth in overall revenue.  This would be true even if we had an agreed upon definition of programmatic to use in order to make inferences.  That is why we do not engage in speculation about how much programmatic contributes to spend in the official report. 

It is PwC that independently collects the data and authors the report on behalf of the industry and the IAB.  It is PwC that is charged with maintaining the quality of the data collection and reporting. And it is both PwC and IAB that consistently opt to be rigorous on methods and in reporting.

It would be irresponsible to include guesstimates in the official, published revenue report.  It would also be inadequate to release the report without providing context.  That is precisely why we host a well- attended webinar with our members and members of the press together to hear the revenue numbers from the report along with context from PwC, the IAB and a guest speaker.  This occurs twice a year to coincide with the releases of the half yearly and the annual reports.  Contrary to what we’ve heard lately, programmatic has been part of the discussion.  The materials are posted to the IAB site and readily available to all.

IAB activity aimed at understanding programmatic buying: what it is and how it impacts the broader marketplace

Revenue reporting aside, the IAB recognizes that programmatic buying and selling are an important part of our ever evolving marketplace.  In order to serve our members and the larger ecosystem, it is our responsibility to convene thought leaders, experts and practitioners to clarify and illuminate how market forces are operating and changing.

We have the following key efforts underway in the programmatic arena. 

In July, we convened the IAB Publishers Programmatic Task Force, a group of 40 publishers working to identify the issues surrounding programmatic selling and understand which ones can have actionable solutions through consensus. 

In September 2013 we released a programmatic terminology piece that explains the four dominant methods of selling programmatically entitled, Digital Simplified: Programmatic and Automation - The Publishers’ Perspective.

On the technical side, the Digital Advertising Automation Task Force is working to standardize, implement, & support adoption of common datasets for IOs, media plans & invoices.  The Open RTB & Exchanges Working Group supports the development of OpenRTB specifications.

The IAB regularly holds Town Hall meetings where different ecosystem players convene to discuss and debate some of the bigger challenges we all face.  These town halls provide inspiration for many solutions that ultimately make our businesses better.  Coming soon is a Town Hall on programmatic selling and buying.

Will the IAB add revenue reporting capabilities?

Yes. We will be trying to supplement revenue reporting so that we capture dynamics and transactional forms that are outside of the purview of the IAB PwC report. We seek the right way to measure programmatic spend and the support from our members to provide this kind of research.

About the Author

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Sherrill Mane

Sherrill Mane is SVP, Research, Analytics and Measurement, at the IAB.


 

IAB releases Publisher’s perspectives on programmatic as first part in educational series

Programmatic buying and selling of advertising, real-time  bidding, and marketing automation is changing the way we transact digital media. Though numbers are very sketchy, by some accounts over 20% of all digital advertising is sold “programmatically” - and it’s growing rapidly. 

Programmatic-IAB_RTB.jpgYet programmatic competes with Native advertising for the title of “Buzzword of 2013”.  And the hyperbole couldn’t be more extreme. Concerns are rampant. Sales people are worried about becoming obsolete, losing their jobs to machines, and declining yields. Some buyers of digital media are worried that only crappy inventory is available programmatically. Aside from perhaps the ad tech community, there’s a great deal of smiling and nodding going on when people talk about the importance of programmatic, and not a lot of understanding. Ad agencies are worried that automation will mean standardization and less of a role for creativity and creatives.  On the other side, many see new technological innovation as the source of great potential value - creating significant efficiencies, new markets, and continuing to drive advertising dollars to digital.

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There is significant confusion in the marketplace around the meaning of terms like “programmatic”, “RTB”, “programmatic direct”, “programmatic premium”, and other verbiage, often being used interchangeably. New technologies are emerging which are creating significant value, but there is also a lack of clear technical standards to ensure interoperability across different platforms. Buyers and sellers are concerned with the limited transparency and number of vendors involved in the programmatic transaction.  And programmatic raises internal, organizational challenges for brands and agencies, and particularly for publishers with their existing direct sales teams and incentives.

Agencies and their clients have a lot to lose if programmatic isn’t implemented coherently: a set of technologies that aim to create market efficiencies could, instead, create a fragmented, illiquid marketplace if each media agency insists on creating its own proprietary marketplace with its own standards and its own technologies.

In the spirit of creating value for the entire marketplace and driving advertising dollars to digital, the IAB is working to tackle many of these challenges. Today it is releasing Digital Simplified: Programmatic and Automation - The Publishers’ Perspective,  the first in a new IAB educational series that offers easy-to-understand documents for the industry.  The piece aims to provide clarity, from the publishers’ perspective, on the different “programmatic” transaction types.  It outlines the four main ways of buying and selling “programmatically” and provides a clear framework for distinguishing between them.  It also highlights other factors commonly associated with each of these types of “programmatic” selling.

This is the first output of a newly created IAB Programmatic Publishers Task Force, chaired by Alanna Gombert, Senior Director Programmatic and Trading at Condé Nast and formerly of Ad Meld and Google.  The new Task Force is aimed at providing premium publishers a forum to come together to work on issues related to the programmatic agenda and how it impacts them.  Its goal is to help publishers establish market clarity and education around the programmatic ecosystem - both internally and externally. Barely a month after its launch there are now over 30 premium publishers participating in this initiative and the list is growing. In addition to working on clarity around definitions and terminology, the group is also working on issues around transparency across the value chain and sales force organizational issues.

The Programmatic Publishers Task Force is a key part of the overall IAB programmatic agenda.  This agenda focuses on firstly identifying and addressing the key business issues in the programmatic landscape, and secondly working on technical standards and implementation of standards to address these issues.   On the business side, in addition to its work with publishers, the IAB, in conjunction with The Winterberry Group, is conducting a thought-leadership research study to provide an effective roadmap to “programmatic” capabilities based on surveys and interviews with its members, to be released by the end of 2013. It is also working on mobile specific programmatic issues.  On the technical side, it is working on both digital automation implementation and open RTB standards.

For more information on the IAB’s work on programmatic marketing please go to iab.net/programmatic or contact Carl Kalapesi (below).

About the Author

Carl-Kalapesi-Bio-Picture-June-2013.jpgCarl Kalapesi is the Director, Industry Initiatives at the Interactive Advertising Bureau (IAB) focusing on Programmatic, Quality Assurance Guidelines (QAG) and brand safety, performance marketing, networks & exchanges and multicultural.  He can be reached on Twitter @carlkalapesi or via email at at [email protected].