Programmatic Advertising

This week Matt Umbro (@Matt_Umbro) came up with another great question set titled “Programmatic Advertising.” The following is the transcribed Streamcap from the live chat:

Q1: How do you define programmatic advertising?

  • I’ve been defining programmatic as “Display 2.0". It’s followed the similar path of remarketing where you had the trial and errors and then it was improved – Matt Umbro
  • Automated buying, placement, optimization of digital media. – Sam Owen (@SamOwenPPC)
  • Programmatic is more than display. Search was the orginal programmatic and social was close to follow. – Chris Haleua (@chrishaleua)
  • Hi all! Advertising using machine learning to generate traffic and then optimize conversions. – Max Fink (@maxfink_SEM)
  • It’s a word vendors use to confuse C-levels. into thinking their platform is better than the in-house team. – Doug Thomas (@ferkungamaboobo)
  • We explain it to our clients as simply as Tech Assisted Media Buying. – Bryan Gaynor (@BryanGaynor12)
  • Buying display ad impressions in real time. – Tyson Drake (@tysondrake)
  • A shift in the serving of ads to be more dynamic in content & criteria for service of ads. – Julie Bacchini (@NeptuneMoon)
  • It IS display/media buys, but it’s (supposed to be) a smarter, automated bidding system that extends to bigger or better inventory. – Nate Knox (@nateknox)
  • If you aren’t manually negotiating with a human for every ad, you’re doing some programmatic advertising. – Mark Irvine (@MarkIrvine89)
  • In talking with others (peers, vendors, you all), the term programmatic is very loosely used and is sometimes mislabeled. – Nate Knox
  • It’s new for the display industry as they are used old school ad placement, calling the publisher, reserving space, etc. – Tyson Drake
  • A ghastly, meaningless term that deserves to be strangled at birth. Been around for a long time without needing a unique name. – Steve Gibson (@stevegibsonppc)
  • Automation/programmatic is my jam. The increasing use of automation in media buying and targeting. Relative term. – James Hebdon (@jphebdon)

Q2: If we acknowledge that programmatic has been around for years, why is it now the industry buzzword?

  • Because it never lived up to the hype that surrounded it. This is a rebrand in order to shake off some of the stink. – Steve Gibson
  • Same reason chipotle, ciabatta and cilantro are. Someone famous must have said it. – Elizabeth Marsten (@ebkendo)
  • Because the number of publishers prepared to sell that way is increasing rapidly & mktg teams are rushing to adapt. – Sam Owen
  • Is it a paid search industry buzzword or something clients are all jazzed up about? – Julie Bacchini
  • Jargon takes a while to catch up and there has been a lot of tech company acquisition over the last two years. – Nate Knox
  • Theory – traditional media buyers are getting more involved. – Kyle Crocker (@kacrocker)
  • Because the early and late majority are now learning about it. – Tyson Drake
  • There’s lots of money in it and I’d argue it’s usage at least points people in the right conceptual direction. – James Hebdon
  • I think as Big Data + AI have become +sophisticated & +commonplace in biz programmatic is advertising putting those together. – Frances Donegon-Ryan (@FrancesDR)
  • With more focus on digital & mobile, companies develop “limitless opportunity” are targeting options for brands to spend against. – Nate Know
  • It gives a “simple” definition for all of the complicated stuff that goes on in the back end. – Bryan Gaynor
  • It is the latest push to try to refocus dollars from formats considered to be dying, IMO. – Julie Bacchini
  • Remember when CTR, CPC, CPA, CVR, ROAS, were weird acronyms? Now they are a part of us. Soon RTB, DSP, & DMP will be the same. – Chris Haleua

Q3: As advertisers, how will we need to adapt to an increase in programmatic advertising (ie client communication, attribution etc).

  • As long as we continue to do what is best for our clients, adaptation should be natural. – Sarah Holder (@SarahAHolder)
  • Start now. Learning curve for acronyms can be big. Look big picture, programmatic supports search. Those who know both, rare. – Josh Kelson (@JoshKelson)
  • For my team, it’s been more about the pipes & tech inside of programmatic, than about it itself; many vendors involved, etc. – Nate Knox
  • Biggest thing IMO is attribution. We’ll need to better show how programmatic is helping other channels and justify spend. – Matt Umbro
  • It’s very tough to assign attribution to demand gen channels vs demand collection. Still more an art than science. – Sam Owen
  • If you are a Search agency you will fight for budget allocation from programmatic agencies. Solution: Learn programmatic. – Tyson Drake
  • This is a relief for me, tbh. Spend less time talking about the details of each bid, more time thinking big picture strategy. – Mark Irvine
  • I think transparency is the key. It takes away the cloak and dagger of the buzz words. – Bryan Gaynor
  • Learn the acronyms, get used to viewthroughs, try multiple DSPs & exchanges. Learn to build media plans. Master mobile & video. – Chris Haleua

Q4: Are you recommending/incorporating further programmatic into your clients’ 2016 budgets? Why or why not?

  • Yes, absolutely. Combine with Audience targeting and attribution between search/programmatic = powerful advertising. – Josh Kelson
  • We are recommending heavier investment in Facebook and GDN than in the past due to great performance. But nothing beyond that. – Joseph Drury (@drurytheelder)
  • Seen it work with some and not with others– depends on your niche and tolerance for testing.Machine learning is “proBLematic”. – Max Fink
  • Yes but I dont have to push too hard. Most clients are pushing for united search, social and display strategy on their own. – Chris Haleua
    • I would second that. Clients are looking for a holistic advertising mix these days. – Josh Kelson
  • I have a *ton* of reservations about Programmatic Display, so I wouldn’t personally recommend it. – Leo Sussan (@lsussan)
    • At the end of the day it’s all just advertising. Programmatic is one tactic – every business will have a different mix. – Sam Owen
  • If it fits with their program goals and we can measure it’s impact, yes. It can also help build audiences! – Christi Olson
  • The thing is, if you run programmatic, you have your own system built. It has become what you made it. Other answer are now weird. No matter what, we need to be able to thoughtfully back up whatever we say & do. If you love/hate it, have data & reasons. – Nate Knox
  • In house teams I’ve worked with are pushing for greater budget, the value of display is now more apparent. – Sarah Holder
  • There is no one size fits all for clients. For some clients it makes sense but others should proceed with caution. – Joel Neustaedter (@JoelNeustaedter)
  • Do/try it if it makes sense for the client, not just because you want to do it. – Julie Bacchini
  • Most of my initial concerns of programmatic came from ignorance, not experience. Don’t get me wrong, there are things to look out for, but programmatic can be a huge part of an online advertising strategy. – Josh Kelson
    • My initial concerns came from experience and testing it out–but machine learning is never great out of the gate. – Max Fink
  • I don’t sell to clients BUT I will make sure I can talk about it at confs & BingAds trainings as a holistic advertising plan. – Frances Donegan-Ryan

Q5: Beyond the GDN, what programmatic vendors have you used? What have been your results?

  • Our media dept handles programmatic, but I know we’ve used Nativo and a few others. – Melissa Mackey (@Mel66)
  • It’s a wild west out there if you’re used to search. Soooo many platforms/DSPs. – Sam Owen
  • FBX is my current favorite right now. – Chris Haleua
  • Sociomantic for a managed solution. Criteo for self service. Media Math for agencies. Criteo has biggest inventory. – Tyson Drake
  • After all the experiences I’ve had with GDN I never felt the need for more of this. – Martin Roettgerding (@bloomarty)
  • The team I worked with used ONE and Brightroll…results were goodish but there was no good benchmark to compare. – Sarah Holder
  • LiveIntent has a very interesting model for email. Worth testing. Works for some I know but didn’t work for me specifically. – Max Fink
  • We use a mixture of DoubleClick, MediaMath. Mediamath is really expanding its offering and IMO, the best DSP I have used. – Bryan Gaynor

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Don’t forget to stay tuned for the next #PPCchat on Tuesday at 12 noon Eastern, 9 am Pacific and 5pm in the UK. Same Chat time, same Chat channel.


Check out the PPCChat Twitter list to see and connect with all current and prior participants.

• Matt Umbro (@Matt_Umbro)
• Paul Kragthorpe (@PaulKragthorpe)
• Bryan Gaynor (@BryanGaynor12)
• Chris Haleua (@chrishaleua)
• Doug Thomas (@ferkungamaboobo)
• Elizabeth Marsten (@ebkendo)
• Frances Donegon-Ryan (@FrancesDR)
• James Hebdon (@jphebdon)
• Joel Neustaedter (@JoelNeustaedter)
• Joseph Drury (@drurytheelder)
• Josh Kelson (@JoshKelson)
• Julie Bacchini (@NeptuneMoon)
• Kyle Crocker (@kacrocker)
• Leo Sussan (@lsussan)
• Mark Irvine (@MarkIrvine89)
• Martin Roettgerding (@bloomarty)
• Max Fink (@maxfink_SEM)
• Melissa Mackey (@Mel66)
• Nate Knox (@nateknox)
• Sam Owen (@SamOwenPPC)
• Sarah Holder (@SarahAHolder)
• Steve Gibson (@stevegibsonppc)
• Tyson Drake (@tysondrake)

Programmatically Creating Streamcaps

This is a guest post by Paul Kragthorpe; works at WebRanking in Minneapolis, Minnesota.
Connect with Paul @PaulKragthorpe, and Google Plus.

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