Lecture Notes: Programmatic Transparency in Advertising

Presenter Information

Presenter: Jenny Neiswanger & Brad Morin
Role:
- Jenny Neiswanger: Vice President of Data Tech and Measurement, Part of the Global Growth Council and Data and Tech Council
- Brad Morin: Head of Global Media for Kimberly-Clark

Session Context: Second of four sessions diving into the CMO Guide to Programmatic Transparency.
Focus: Understanding the programmatic process and cost drivers.
Goal: Optimize and create transparency in the programmatic media supply chain.
Main Contributors: Industry experts including Karen Walker, Raja Rajamannar, Zena Arnold.

Primary Objective: Help CMOs recover 10 cents on every dollar spent in programmatic digital advertising.
Potential Savings: With 500 CMOs optimizing spend, this equates to approximately $10 billion in more effective spend.

Developed over two years with input from diverse experts (client-side, agency-side, vendor-side, consultants).
Framework: Crawl-Walk-Run-Fly approach, offering detailed guidance on programmatic advertising.
Importance: Contains practical questions and checklists for CMOs and their teams to implement immediately.

Simplified Process:
- Advertiser wants to place an ad targeted at a specific audience via a bid-based system.
- Transition from buying environments to buying consumer attention.
- Key Components:
  - Trading Desk/Activation Specialist: Manages ad placement using DSP (Demand Side Platform).
  - DSP: Connects the advertiser's ad with the supply side in a bid-based system.
  - SSP (Supply Side Platform): Coordinates available ad placements on publisher sites.
  - Publisher: Hosts ad placements on their website.
- Additional Technologies: DMPs (Data Management Platforms), CDPs (Customer Data Platforms), ad serving technologies.
- Stock Market Analogy: Advertiser (buyer) operates similarly to purchasing stock through brokers via an exchange.

Cost Distribution:
- 60% on technology and capability to get the ad to market.
- 40% on supply-side costs.
Breakdown:
- Activation specialist fees.
- DSP fees.
- Ad serving fees.
- Dynamic Content Optimization (DCO) fees.
- Brand safety and ad verification fees.
- Data costs for audience targeting.

Scope of Works (SoW): Clear documentation outlining team roles and responsibilities.
Philosophy: Understand the balance between price, quality, and performance.
Optimization Metrics: Align campaign metrics with business goals.
Hygiene Reporting: Regularly review spend pacing and quality.

Capabilities: Importing audiences, bid parameter tools, log files, multi-channel ad placement.
Review Process: Evaluate different DSP providers to understand their strengths and weaknesses.
Key Considerations: Integration with existing ad tech, unique offerings, fee transparency, direct relationships with DSPs.

Purpose: Avoid fraud, ensure brand safety, and track performance and engagement metrics.
Tech Providers: Use add-on technologies (e.g., Integral Ad Science, DoubleVerify, Grapeshot) for real-time monitoring.
Best Practices: Choose appropriate verification partners, avoid excessive overlap, and track reports meticulously.

Complexity: Most challenging cost to manage due to varying audience segments and data sources.
Steps: Understand audience data costs, evaluate cost efficiency, and explore lower-cost alternatives.

Value of Fees: Justified by the ability to reach consumers more effectively; avoid duplication of services.
Optimizing Costs: Ensure no redundant fees and request proof of value for services paid.
Consumer Experience: Consider the overall advertising experience and not just cost factors.
Partner Relationships: Build strong relationships throughout the programmatic supply chain.
Future of Programmatic: Exciting developments with cookieless audience data, improving both performance and user experience.