"ery G 2.7 PROGRAMMATIC DIGITAL ADVERTISIN Vertising is automat i es place in rea Togrammatic ad vit ¢ buying takes pla ti ising is automated ad buying. The buying UeTammatic advertising isa ™m Ti 'B) model. Bidding here del. H Wis called Real Time Bidding (RTB) model, ie adel Hence, ea a Publisher's w ebpages tite 40 fot, M8 a takes place for aq 4 Xba a t related to automation j Programmatic advertising is the most recent developmen adverusing. In the US, about 82 tm Figure 2.30, Nn the ¢ ent of the digital ad spending is programmatic ad spend, per c Programmatic Ad Spending US, 2014-1018 82% % 78% te 7 73% 20%, i s 70%, 30 7 55% $ oon 25 atuey 50% 20 $ el 40% IvaLus 5 18 s 308 10 VALUE 20%, s . 5 |ivatu x e : 2014 2015 2016 2017 2018 C1 Programmatic digital Oisplay ad spending (billions) ~#= petwentage of total digit splay ad spending Source: eMarketer, June 2016 Ficure 2,39 Programmatic ad Spending Us, 20142018 Courtesy: eMarketer, used with permission Programmatic by: US assume that y Team-BHP. 4) have visited Ying’ Sivnifies the shift from OU are a car brand, Contexty Ulocar India, ete Instead, ar portal at | month and booked : Contextual ‘Atgeting to Mdien al adverti ME means CU target Audion veting. For evan i setals suche Advertising On car portal advertiser Mn the last . Who may be defined as thee east once OnE Month, visited finance si vist once in the last nate! ticket online at teay once in the last one month, Tig User is From ® more likely to yy ~ ser To —> ees the 19 audiences ad. This is called audience ATECLINE Which is hase wa ps ( proxy on online behaviour, i inf INEM OF the user ant ‘wudoncon Vv wees targets based on inten buying Figure 34 shows Programmatic buying . _- Ficune 231 Programmatic buying Scanned with CamScannerpipe averse ED Programmatic buying reaches the right au cence at the right time and place at the right price with the right message to optimise the campaign and deliver higher ROM (Figure 2.32). 27.1 Process of Programmatic Advertising The user requests for a webpage, which means there is potential to show ad impressions to the user. Every time a user requests for a page, ad exchange holds a live auction. On behalf of the publisher. Supply Side Platforms (SSP) send a bid request to the Demand Side Platform (DSP) DSP examines the potential impression in terms FIGURE 2.32 Five key inputs for programmatic buying” of target audience and context match and retums 4 bid amount based on its value to the advertiser. Winning bid is chosen by the ad exchange and that ad is shown on the publisher's website. Figure 2.33 shows the working of a programmatic advertising process’. ‘Abid request ‘Third Party Ad Server sent to each DSP Five Key Inputs for Programmatic 2—~ pa exchange hholds an auction for each impression ee] —_ ‘Ad creative is hosted by third party server or DSP shown on publisher website 5 winning ba is chosen by Ad Exchange “Advertisers DSP enables advertisers to Publisher each cual er impression | 4 OsP evatusies each Publisher (websito) makes ad based on what ic foerm about | impression and roturns a bid amount based Tnwentory avaliable on ad ae santas la Figure 2.33 Process of programmatic advertising’ From the process, itis clear that there are many players in the ad) 1g ecosystem, Let ts understand their role and the value they add in more detail. Souree: Adapted fromhtips:J/radiumone.com/p-contenoploads/201 6/08/ Whit om March 20, 2017, °" Source: Adapted from utps:/thlogs.adobe.com/digital marketing/advertising/|S-years-of-defiaing-programuma Maren 20, 2017 Paper-Programinatic-ocket-Guide pal Retrieved (, Reieval on Scanned with CamScannerEBD disinrrt0re0000 2.7.2 Players in Programmatic Adve ‘consumer Drie Partes —— Ll @ @ io @ @ oO averse ose | | exenange ee] frown | publsher — @ —_aasgemes Froune 234 Ropers in proprammarcodvering ecosyten™ Publishers Publishers have ad impressions through which dhey monetise the site afd it is a mg for them as most ofthe cont India are fre an hence do not have subscript imagen, Reuicved on March 20,2017 represented by trading adience and Scanned with CamScannerpuphvAderiing ED Table 2.8 Holding Company Trade desk mapping”™ c ae : ‘wer MEDIACON axis | | Publics RAZORFISH, DIGITAS. ‘VIVAKI ‘] meson Gan om, rp aeccueN | iad UNL INITIATIVE MAGNA GLOBAL | | carat ANNET Havas Worldwide HAVAS MEDIA AFIPERE | pressions for as ofthe webpage, such stop, Keswords, page URL and the p behaviour with the DSP and request (OpenX. Rubicon Project, Double Taleo shases the cookie ID withthe DSP. inthe browser ofthe usc. A cookie i @ small pase URL, browser and deviee information. Wt enbances user experience as when the user visits the webpage un cookie willbe tettieved by the webpage and it wil know whether th use 83 First time visitor ora repeat visitor. what items were placed in the shopping exe ele. These cookies ate persistent and are valid for ‘eenai ine. These ae enerypted and can be readonly bythe domain which dropped them. Demand Side Platform (DSP) |A Demand-Side Platform (DSP) allows the advertiser to buy the inventory from various ad exchanges and Iades gs bid sate, through DSPs, Some ofthe DSP companies are Double Click for Advenisers, Rocket Fuel, Tura, Appnenus, ‘Meuiamath, Double click, and Audience science. DSP wets the request for bid from SSP w webpage. DSPs have audiences which are prima Since DSPs have good understanding of eonsurnet behaviout, they ete ass, avid investors based on their online behaviow wusines sites and stock exchange si Scanned with CamScannerScanned with CamScannerowned ty big e-commerce a 3 1s AT&T. Third arty data is From data provides ‘21 Panty ata Dat Creaion 1 Panty at Customer Onto Daialeg, ‘excae (orate ‘usa posionarate 3" Paty Data ‘ata Power FicuRe 2.36 Types of dot suppliers 1y companies that hasts your a and give tsplay oF ads. tis 8 a know for these a servers have yoo tec SPS and publisher sits for slay of as. Scanned with CamScannerme $$. EBD vistarrtarrerng hramically by the creative designe from his laptop. email or other manual coordination, The creative must be prepare a : The ereative must be ere heading, call 0 action but and xml format for child te. The parent file i the template tat identifies where heating, call oaton bu vn OF image and description will come. The child file is the data that gets pulled nn time and set rules ff format. Hence, the ereative designer ean update the data inthe child file dynamically any q customising the ad th , 1s. Ad serv Hence, while media optimisation is done by DSP, creative optimisation is done by Ee Tale a charge a small per cent of media spend for the fees. Unfortunately only 40 per cent adve third party ad servers as they consider it as cost ultiple versions through 1 having to upload m v6 \ aaa mevo ile formals: WF file for parent file Ad Exchange 4 ‘Ad exchange brings together buyers and sellers to buy and sell online ad inventory in an automated mane ike @stock exchange. tea ime auctioning forad spaces on publishers’ websites happens in an ad exchange Further, ad exchanges are of two types. They are described inthis section. Open Exchanges Open exchanges, as the name suggests, are ad exchanges open for everybody on the. web. There is no restriction on the purchase of inventory available in these exchanges. They are run by tech, Giants such as Google, Yahoo!, OpenX. etc. Over 70 billion ad impressions flow through these exchanges faily. These volumes have mage policing the genuineness ofthese impressions extremely difficult and this has given rise to bogus and low quality impressions. Open exchanges allow buyers to purchase media on an audience basis through cookie-based targeting; achieving scale is usually a higher priority than running campaigns with specific publishers Private Exchanges The problem mentioned above led to the ereation of private exchanges wherein a 2roup of publishers pooled up to sell their advertising inventory only through select agencies or to reputed Companies. This type of sclective selling has helped prevent fraudulent activities as seen in open exchanges, Also, these exchanges are considered to be premium exchanges as advertisers get better ad placements, insights, etc., as compared to open exchanges, Real Time Bidding Real time bidding (RTB) includes any transaction executed on an individual impression basis and in which Pricing is determined in realtime. It works in open auctions as well as private auctions, 2.8 ANALYTICS TOOLS There are some challenges plaguing the display advertising industry, Fortunately some ‘companies have devised tools to overcome those challenges. Let us look at some ofthese issues and futuristic solutions 2.8.1 Viewability Per Integral Ad Science & Media Rating Council Data in 2015, 57 percent of display ads were not viewable. Ad may not be visible due to disruptive human behaviour, such as action taken before ad loads and renders, multitasking or because of low-quality or compromised pages. It could be because ad loads in area out of the user's browser, oF frequent page refresh prevents ad load, or web load gives errors, It should be noted that 50 per cent of ad pixels should be displayed for a minimum of one second in image ads and two seconds for video ad for an ad to be considered viewable. This condition has heen peserned ty Media Rating Council in May 2015. Both the pixel and time components must be Measured and must satisfy the above minimum requirements for an ad to be counted as a viewable impression, Scanned with CamScannerpieptay Advertising ED If both the pixel and nse components associated with an acl are greater than zero, but one or both do not eet or exeeed the above minimum requirements, head mayb a "loaded ad’ It should not be fesveiated With the {erm “impression Toovercome this viewabihity issue, tools such as Integral Ad Seience and MOAT provide metrics such as in-view impressions, oUL-of-view impressions, viewable rate ferred thy 2.8.2 On Target Reach The current cookie based methods of targeting overestimate reach and underestimate frequency by a huge margin. The demographics accuracy is also low. Some tools such as *“Atlas’ is used to measure On-target reach publisher wise for each campaign, It is based on logged in FB data, Nielsen DAR is another tool, They do cross device measurement and provide reach over! lap reports, These tools determine accuracy based on real people logins across mobile and desktop. They enable people-based marketing and understanding of the gonsumer joumey. 2.8.3 Ad Fraud Ad fraud isthe deliberate practice of serving ads that have no potential to be viewed by a human. Perpetrators of ad fraud are criminal gangs and the problem is costing the ad industry a lot of money. Publishers with higher cost-per-thousand (CPM) rates are more susceptible to bots, which x millions of ad impressions that are seen by no one but often get charged to marketers as a viewed promotion. 1, Domain Identity Theft This is a form of fraud where fraudsters add a fake URL into the ad unit, fooling the auction into believing that an ad will appear on an acceptable site that it will not end up on. Click/Impression/Conversion Fraud This is when fraudsters mechanise clicking, viewing or converting on ads. Click farms exist where people are paid to sit and click, view, or convert on ads through desktop and mobile devices. Bot Activity This is when robots carry out similar actions by masking IP addresses through advanced algorithms. Malware can be installed on computers, giving fraudsters the power to control what domains a computer visits and the ads it views 4. Adestacking This is when multiple ads are served within the same placement, This method tricks ad servers, as each of the ads is served; however, they are stacked beneath each other so the advertiser's message is often not viewable. 5. Pixel Stuffing when an ad of say 300 x 250 pixels is crammed into 1 x 1 pixel size which makes it appear on page but is invisible to human eye. enerally create millions upon 2.8.4 Brand Health The process and controls implemented to protect advertisers from having their ads appear alongside content that could damage their brand or reputation (even if by accident), Examples of brand safety issues are: 1. Ads appearing on sites publishing illegal content. For example, adult, illegal downloads 2. Ads appearing alongside user generated content, For example, controversial opinion 3. Ads presented in a negative context due to content on the site. For example, flights alongside an air disaster, Brand safety is ensured by blacklisting websites having controversial content; using keywords to not Show ads in that context and by labeling content for adult use, etc, Integral Ad Science tool assigns brand risk Scores to prevent brand health from gelting compromised. Scanned with CamScanner