A LOOK INTO

THE RISE OF PROGRAMMATIC

team green presentation
Cristina Fernandez Michael Ghossainy Jennifer Depinet Gabby Garza

The Foundation
OUR MISSION

We aim to help any business, person, or entity develop strong roots

and branch out into the marketplace through our innovative thinking
and creativity, taking all of our clients to new heights.

OUR VISION

We seek to empower businesses and individuals in the media market

by bringing the right strategy, attitude, and knowledge to the field.

OUR VALUES

We hold the following values principle to our everyday operations:

Ingenuity Efficiency Reliability
Great Customer Service Passion Fresh Ideas

Table of Contents
16
7 15
16 18
19 22
23 27

WHAT?
WHEN?
WHO?
WHERE?
WHY?

WHAT is Programmatic?
Defining the term programmatic advertising in the
context of business objectives is no simple task.
Moreover, the term programmatic advertising spurs an
assortment of definitions in the digital media space.
We have discovered that there are numerous variables
that impact how professionals view this rapidly spreading
conceptvariables such as profession and attitude
towards technological progression. In a world where ad
dollars spent on direct programmatic initiatives reached
$9.8 billion at the end of 2014, it is critical to understand
how those billions were spent and will continue to be
spent in the future.
h#p://www.cio.com/ar/cle/2839392/adver/sing/6-digital-marke/ng-pros-dene-programma/c-adver/sing.html

WHAT is Programmatic?
Due to significant gaps in the understanding and nuances of the term we have chosen to define
programmatic by developing a loose definition through a two-prong process:

1. Compilation of the most common buzzwords used in definitions

by marketing professionals.
A.

Auction-based: The buyer pays whatever price an ad is

worth at a given time, similar to the real-time bidding
process eBay utilizes.

B.

Automated System: Automation is a machine-tomachine transaction that takes multiple data points and
makes decisions about what screen the ad should
appear and what is the most effective strategy at a given
moment. Automation increases speed, efficiency,
scalability, hyper-targeting and privacy because the
buying and selling of ad space can be completed
online and on mobile devices.

h#p://www.adweek.com/news-gallery/adver/sing-branding/programma/c-dummies-153590#what-programma/c-anyway-1
h#p://www.cio.com/ar/cle/2839392/adver/sing/6-digital-marke/ng-pros-dene-programma/c-adver/sing.html

WHAT is Programmatic?
C.

Data: The system has the ability to piece together

petabytes of data in a way humans cannot which results
in more science and less guess work. The smart learning
technology is able to hit a target by applying data
collected by user behavior.

2. Analysis of the terms to develop a catchall definition.

OUR DEFINITION
d

Software enabled machines that handle everything involved in the media

buying process, increasing efficiency, accuracy, and convenience through
precise data analysis and an online real-time bidding.

h#p://www.cio.com/ar/cle/2839392/adver/sing/6-digital-marke/ng-pros-dene-programma/c-adver/sing.html

h#p://www.emarketer.com/Ar/cle/You-Using-Programma/c-Yet/1011588

h#p://www.emarketer.com/Ar/cle/You-Using-Programma/c-Yet/1011588
h#p://www.mediapost.com/publica/ons/ar/cle/237999/racing-from-the-bo#om-75-of-brands-now-using-pr.html

Programmatic in Action Today

Through increasingly sophisticated algorithms and data rich DMPs,
advertising can now measure beyond the cookie, revealing new audiences
that would have otherwise remained hidden, extending reach and
engagement better than ever before. On the following pages are examples
of leading companies, in a variety of categories, who are using programmatic
to leverage online media buys to drive offline sales.
Brand Advertising- the process of making the public aware of a particular brand
and its features so that they continue to buy it
Publishers- Programmatic is helping publishers make the best use of their
inventory. Pages with lower earnings per thousand impressions (eCPMs) and sellthrough rates are naturals for programmatic.
Direct Response Advertising- Promotional method in which a prospective
customer is urged to respond immediately and directly to the advertiser
Service Business Advertising- requires a more personal touch because rather
than selling products, what they are really selling is their own skills and talents.
Branded Content- a form of advertising medium that blurs conventional
distinctions between what constitutes advertising and what constitutes editorial
content.
Online Streaming - Web based alternatives to traditional forms of media such as
broadcast and cable
h#p://www.marketplacebyadtech.com/blog/programma/c-or-premium-you-should-be-using-both

Brand Advertising
Proctor & Gamble
In 2014 P&G hoped to buy 70%-75% of its digital media programmatically by the end of
the year, and plan to make a similar shift to programmatic in 2015 in its mobile-ad buying
department. Since it sells most of its products via retailers, P&G needs advanced analytics
to know whether their digital ads are producing sales. Thus, programmatic has proven to
be better equipped at targeting consumers than traditional buying has.

Kelloggs
Kelloggs programmatic digital media buying ROIs (depending on the brand) increased as
much as six times in 2014 as compared to 2012. When Kelloggs used viewability as a
metric to understand who saw their ad they gained a 15% rate by utilizing programmatic
buying. Plus, the systematic nature of digital programmatic buying enables the
transparency of costs and data which allows the advertiser to examine the end-to-end
model to wring out non-value added processes and costs.

KIA
Programmatic buying is composed of centralized technology and data. Since applying this
technique - via DoubleClick Bid Manager (DSP) - across channels, KIA has gained better
performance and cross-channel insights across search and display. Plus they have recorded
a 30% increase in brand.
h#p://adage.com/ar/cle/digital/procter-gamble-buy-70-digital-ads-programma/cally/293553/
h#p://www.forbes.com/sites/marketshare/2012/11/09/kellogg-proves-roi-of-digital-programma/c-buying/
h#ps://www.thinkwithgoogle.com/infographics/four-ways-brands-win-with-programma/c.html

Publishers
The Economist
Six months ago, The Economist began running its own ad retargeting program in-house by
having a designated member of its marketing team execute campaigns via a DSP
DoubleClick Bid Manager. It is now able to track purchases based on ads seen six or more
months ago with much more accuracy than it ever could. As a result the Economist is
upping its digital marketing investment by 2015 in search of growth in these lean,
competitive times for publishing.

DailyMail.com
In an effort to increase advertising revenue, DailyMail.com is running a promotion until
March 31, 2015 called Programmatic Match. U.S. companies and media-buying agencies
that buy $150,000 or more in traditional, direct ads from DailyMail.com staff get a credit for
that dollar amount to buy ads on the site using its automated ad-buying system.

h#p://digiday.com/publishers/economist-uses-programma/c-drive-subscrip/ons/
h#p://adage.com/ar/cle/media/dailymail-hypes-programma/c-sales-/mes-print-ad/296539/

Service Business
Advertising

Direct Response
Advertising

Southwest Airlines

American Express

It was recently reported that Southwest

Airlines outspends JetBlue 15 to 1, and
a portion of that budget is spent on
using programmatic to reach new
customers, spread awareness for new
flight routes and drive sales. In their
recent Nonstop Love campaign, they
used an agency to utilize custom first
party data to successfully reach millions
of target customers in top performing
regional markets.

Recently, in an effort to more easily

monitor the immediate impact of its ads
based on customer acquisition
American Express issued an RFP to
some of the globes biggest ad-tech
companies stating that they have plans
to transform their Display Media
Channel to become 100%
programmatic. They are planning on
making this change because they
believe advancements in programmatic
buying gives Amex the opportunity to
get much closer to the digital media
campaigns specifically using their
expertise, data, and resources.

h#ps://www.thinkwithgoogle.com/infographics/four-ways-brands-win-with-programma/c.html
h#p://adage.com/ar/cle/digital/american-express-100-programma/c-sort/293037/

Online Streaming
Netflix
In efforts to keep intellectual property
internal and have better crossdepartmental communication, Netflix
decided to forgo the help of agencies
to varying extents in the process of
recently building their own internal
programmatic team through an all in
approach. Past programmatic video
campaigns have resulted in engaged
audiences and stronger precision
targeting, through the combination of
sight, sound, and motion the format
offers.

Branded Content
Sony Mobile
After seeing positive results on their
branding efforts for the launch of the
new Sony Mobile Xperia Z1s, Sony
Mobile is investing more in
programmatic video. Results included:
spontaneous brand awareness rising
from 37% among non-exposed
audiences to 60% among exposed;
exposed audiences became twice as
likely to consider solely an Xperia Z1 as
their next phone; the very likely to
buy category doubled among
exposed audiences while very unlikely
to buy halved; and, among exposed
audiences, very/somewhat likely to
buy increased from 49% to 64%.

h#p://adage.com/ar/cle/adver/sing-week-2014/neOlix-kellogg-programma/c-house/295253/
h#p://www.slideshare.net/MobileMarke/ngMag/bydd-jay-fowdar-making-sense-of-programma/c-buying

Clients/Categories
Although programmatic is increasing in popularity, reports have found that
over two-thirds of marketers have expressed hesitation and skepticism over
programmatic technologies. So one may find it difficult to see how a future in
automation is possible; however a closer look says otherwise. In a rapidly
growing technological world, programmatic promises one central aim, that is,
efficiencyefficiency in cost, time, and reach. With that in mind, it becomes
easier to envision where automation would serve to optimize media sales/
buying. The table on the following page details for whom programmatic
technologies is the answer and for whom it is not.

h#p://www.chango.com/resources/ar/cles/why-many-marketers-s/ll-dont-understand-programma/c/

YES

Display

Mass Online Ad Distribution

Online Streaming

VCC

TV

E.g. Pandora, VEVO, Spotify

Traditional TV

Placement during low rating periods/local

stations

E-Radio

Placement during low rating periods/Local

stations

Online TV

E.g. Hulu, Roku

Print Publishers

E.g. YouTube

Social
Search
Mobile

E.g. Conde Nast, The Tribune Co.

Guerrilla/Ambient Ad Placement
Requires Human Engagement and
curation

Product Placement
Requires careful curation

Brand Integration
Similar to PP, but more intensive and
involved

Traditional Radio

E.g. Netflix, Crackle, HBO Go

Audio

Video

NO

Content Marketing
Tent-Pole Event Marketing
E.g. Super Bowl, Awards Season

Premium/High-Stake TV
High Rating TV Periods require careful
curation

Programmatic Boundaries
In order to explain where programmatic should be, it is easier to define where
programmatic should not be because programmatic has the potential to expand
rapidly into many different digital platforms and media. To grasp the boundaries of
programmatic, start by referring to the table in the previous section.
Programmatic is suitable for platforms extending from digital ad space on websites to
running ads via online streaming (i.e. Netflix and Hulu). Thus, it is appropriate for
programmatic to play within the digital space. These digital spaces include social
media, digital television, digital radio, online streaming, real-time bidding, and digital
out-of-home, to name a few. DMPs and DSPs are the reason programmatic is so useful
over digital platforms. DMPs, DSPs, and real-time technology can be used together to
create a seamless and flowing advertising campaign delivered to specific audiences.
Data management platforms (DMPs) are data warehouses mainly used to store cookie
IDs, generate audience segments and bring all audience and campaign data into one
location , while demand-side platforms (DSPs) are pieces of software used to buy
advertising space programmatically (automated).

h#p://digiday.com/plaOorms/what-is-a-dmp-data-management-plaOorm/
h#p://digiday.com/plaOorms/wO-demand-side-plaOorm/
h#p://adage.com/ar/cle/digital/cmo-s-guide-programma/c-buying/293257/

Programmatic Limits
Like we defined before programmatic simply means any ad buy that is processed
through machines; it is automated. Therefore, programmatic ad buys will always be
processed using the internet and requires using online and digital features. As more
and more advertising channels become heavily online-based, programmatic buying
will become more and more important. For example, Comcast offers automated adtargeting for on-demand videos. Television, radio, and out-of-home channels are
becoming more digitally-based, thus increasing programmatic buyings importance.
As time and technology advances, televisions will be able to send target-specific ads.
Information based on a households credit card purchases, spending habits, living
conditions, and other personalized data can tell an advertiser what kind of message
would be relevant to that household. Programmatic buying can then send specific
messages to specific households through their televisions. In addition, cars are in the
beginning stages of using smart technology to learn peoples behaviors and use
automation to replicate human driving habits, like park-assist and automated windshield wipers. As technology advances, there is the possibility that cars can collect data
on their drivers, such as where they park their cars to shop, which routes are taken
regularly, and which music genre the driver enjoys most. Advertisers can use this data
to send target-specific ads to the driver. For example, if the consumer had shopped at
a specific store before or regularly shops there, the windshield screen display can
inform the driver of a sale going on 3 miles before they pass the store.
h#p://adage.com/ar/cle/digital/cmo-s-guide-programma/c-buying/293257/
h#p://www.economist.com/news/special-report/21615872-rise-electronic-marketplace-online-ads-reshaping-media-business-buy

Long-Term Problems & Other Issues

There are quite a few existing long-term problems with the integration of programmatic into
digital ad buying and beyond:
Some advertisers still feel the need to restrain from adopting programmatic technology on
two accounts, problems with measuring results and effective cross-device targeting.
Without proper understanding of the results yielded by their investments, many
advertisers will be reluctant to embrace programmatic while currently facing problems
with the accuracy of measurements of ROI.
Struggles with effective cross-device targeting in the multi-device landscape of today,
with consumers switching from tablets to smartphones to desktops and back, through
programmatic means places, at least, a temporary barrier that will remain until
programmatic is able to seamlessly integrate into all the digital platforms used today.
In addition, creative folks fear the stifling of their work through programmatic buying and
placing.
With programmatics origin as a means to trade remnant inventory at low prices, a
resulting system which fails to provide consistent measure of ad quality and inventory,
treating all as equals, penalizes quality creative.

h#p://www.adweek.com/news-gallery/adver/sing-branding/programma/c-dummies-153590#intro
h#p://www.forbes.com/sites/onmarke/ng/2014/10/02/why-programma/c-ad-buying-is-currently-problema/c/
h#p://digiday.com/plaOorms/wO-programma/c-tv-adver/sing/
h#p://www.emarketer.com/Ar/cle/You-Using-Programma/c-Yet/1011588

Long-Term Problems & Other Issues

An existing concern revolves around the placement of ads in controversial or low-quality content
due to automated placement. The reverse becomes a problem as well, when poor quality ads are
placed in high quality publisher space creating an overall bad consumer experience and lasting
damage on the publishers image.
This could be abridged once premium inventory becomes more available through
programmatic interface, but this ideal picture is still far from reality.
What little premium programmatic is available today is still in its developing stage, users even
undecided on how to call the space (direct programmatic or automated direct).
First-party or third-party cookie data aid companies in their programmatic buying, a risky
partnership with the increasingly rare cookies for accurate programmatic functioning.
In the face of the endangerment of cookie data in todays privacy-concerned environment,
programmatic will eventually require an alternative source of data to maintain the same quality
performance.
Television executives distrust of programmatic TV advertising has hindered its development in
this market, with less than 1% of TV inventory sold in this way during 2014.
This distrust stems from a lack of trusted data available to brands, agencies and media
partners, discussed an Advertising Week panel.
While cable and satellite providers have been the first to experiment with programmatic, big
networks will be more reluctant to engage in it out of fear of inventory devaluation. Continued
development of programmatic advertising in TV, which has not been able to reflect the realtime transactions of online programmatic, and education in the field will slowly increase its use.

h#p://www.adweek.com/news-gallery/adver/sing-branding/programma/c-dummies-153590#intro
h#p://www.forbes.com/sites/onmarke/ng/2014/10/02/why-programma/c-ad-buying-is-currently-problema/c/
h#p://digiday.com/plaOorms/wO-programma/c-tv-adver/sing/
h#p://www.emarketer.com/Ar/cle/You-Using-Programma/c-Yet/1011588

Short-Term Problems
While technology and innovation stir excitement and inspire trial, there are some precautions
that find themselves at the forefront. The problems previously mentioned deserve
considerable time and effort to resolve. However, amidst the hype created by innovation,
there are a yet a few big picture issues that may be overlooked or rushed. First and foremost,
the human element is and will remain key to the success of any campaign. Automation
should never trump the human touch and the creativity it carries. While efficiency is a
desirable aspect in any marketing and advertising venture, the main concern should always
be in improving quality, beyond only automation. If the industry dives deep into
programmatic without taking precautions, not only is there an existing risk of losing the
critical human touch in advertising campaigns but also losing jobs altogether. The
employment status of the industry, and how it could change through full fledge embrace of
automation, should be considered and analyzed in order to anticipate the imminent changes
and make the transition as smooth as possible. As Lara Littlefield, CEO and founder of BWD
Inc., stated, in an ideal world, technology for me compliments and streamlines our
everyday lives in an enriching, cultural format; it should never completely guide or control
it. In addition, programmatic depends completely on data and, most importantly, its
accuracy. Bad data is a possibility and when applied automatically, it could create an
unpleasant experience for the user and a bad image for the publisher. Extra precautions will
be necessary to ensure the best data is available at all times so that the best quality content
be consistently delivered.

h#p://www.adweek.com/news-gallery/adver/sing-branding/programma/c-dummies-153590#intro
h#p://blogs.wsj.com/cmo/2015/01/30/aol-layos-reect-rise-of-programma/c/
h#p://programma/cadver/sing.org/2014/12/04/lets-talk-programma/c-marketer-spotlight-lara-chelak-li#leeld/
h#p://www.forbes.com/sites/onmarke/ng/2014/10/02/why-programma/c-ad-buying-is-currently-problema/c/

WHERE?

WHO?

Currently programmatic is relatively

limited to the digital realm because you
have a DPS and DMS. As everyday
technology becomes smarter we can
expect companies to receive data about
consumers through non-traditional means
such as data transmitted from cars and
even kitchen appliances.

WHY?

Since programmatic
technology is still in its
relatively early stages it isnt
100% perfect. Unfortunately
automation eliminates most
of the human element in
campaigns removing human
intuition as well as resulting in
job loss. Other concerns
include inaccuracy of data
and becoming too
dependent on the technology
instead of viewing it as a tool.

Today, programmatic technology serves a wide

range of clients and categories, both on and
offline, such as brand advertising, directresponse advertising, online streaming, and
publishers. And while automation faces some
obstacles, exponential growth lies only in a
matter of time and optimization. Increasingly,
premium clients (ie. Cond Nast) are finding
themselves beside non-premium outlets (ie.
N e t fl i x & H u l u ) a n d m i g r a t i n g t o w a rd
programmatic technology.

PROGRAMMATIC
WHEN?
A number of companies are already using programmatic
technology to conduct business today. Since 2011 researchers
have noticed that programmatic usage has continued in an
upward trend. By 2017 programmatic is expected to rise to 52%
in display ad spending and be utilized for 10% of TV ads buys.
WHAT?
Programmatic is a software enabled machine that handles everything
involved in the media buying process, increasing efficiency, accuracy,
and convenience through precise data analysis and an online real-time
bidding.