May 2, 2016
School of Programmatic Session Four: Fundamentals of Money and Measurement
OpenX research identified a need for all parts of the advertising value chain to work together to realise the true potential of programmatic. The fourth session in our School of Programmatic programme, Fundamentals of Money & Measurement, explored programmatic from both the buy and sell sides, providing attendees with a wider perspective.
Part One: Fundamentals of money and measurement presentation
The Programmatic World According to Advertisers, Fiona McKinnon
Looking at programmatic from the buyer viewpoint Fiona explained advertisers should look at the ‘why’ rather than the mechanics of the ‘how’.
Programmatic is not a new media channel
Programmatic shouldn’t be feared. The overall principle hasn’t changed – it’s still about making sales – but programmatic reaches the right person in the right moment. Programmatic is not all machine learning; we still need the human touch.
Programmatic offers advertisers freedom, speed, and control
Programmatic streamlines the buying process from 42 steps to 10. Buyers remain in control, only paying what they deem a fair price. They can work with multiple publishers without fixed contracts and can quickly test strategies, audiences, and creative.
There is no magic button
Programmatic automates some elements of marketing but not the whole process or the large vendors would already have a magic button. Look for solutions that work for your business rather than adding endless technologies. The industry needs consistent communicated measurement between advertisers and publishers.
Revenue and Measuring Performance for Publishers, John Harvey Faurholt
Looking at programmatic from the publisher viewpoint John Harvey covered three key themes:
Set clear objectives and measure performance
Publishers want to maximise revenue, maintain user experience, and minimise waste. Before choosing tech partners publishers should audit their existing stack. Use RCPM, which measures all available impressions, rather than ECPM, which just looks at impressions sold. Be flexible when setting objectives rather than enforcing unrealistic price floors and whitelists.
Test technology partners
The only way to know if a tech partner is right for you is to test. Be transparent with potential partners, have a fixed time window, create apples to apples tests, and perform simultaneous testing rather than slotting providers into the demand stack. Minimise distractions and test one technology at a time.
Choose the right tech partner
When choosing a partner look for operational efficiency and the ability to drive yield through analytics. A good tech partner can leverage your data to make inventory interesting to brands. Companies want a partner that’s honest and transparent; it’s about finding the right balance.
Part Two: Panel discussion
The panel consisted of John Harvey Faurholt, Director Partner Services, OpenX; Fiona McKinnon, Founder of Turn Left Digital and GM of The Pangaea Alliance; Andrew Morsy, Associate VP Media Solutions, Sizmek; and Ben Price, Head of Commercial Operations, Future Plc.
Here are four key takeaways from the panel discussion:
Future Plc. is addressing the challenges of page latency and ad blocking by auditing vendors based on yield, latency, and ad intrusion. This process may reduce revenues initially but is vital to optimise the stack and improve long term yield.
PMPs are continuously improving. Buyers like PMPs because they can buy a specific piece of inventory at a particular price point. Publishers use them to package their value proposition neatly. Briefing on the client’s objectives should extend to the trading team.
Quality is subjective – is it viewability, placement, or ad unit? Definitions vary by agency and quality is different for mobile, with distinct criteria for premium publishers. Viewability has many elements including ads below the fold and ads that don’t render ¬– 100% viewability will soon be required but advertisers must be specific about its definition.
Still perplexed by programmatic? Watch this space for an update on our next session: Selling Models for Publishers.