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HOW to CONFIDENTLY ENGAGE MOBILE CONSUMERS at SCALE the Brand Advertiser’S Guide to Mobile Programmatic

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HOW to CONFIDENTLY ENGAGE MOBILE CONSUMERS at SCALE the Brand Advertiser’S Guide to Mobile Programmatic HOW TO CONFIDENTLY ENGAGE MOBILE CONSUMERS AT SCALE The Brand Advertiser’s Guide to Mobile Programmatic 1 CHARTBOOST POWER-UP REPORT DECEMBER 2017 CONTENTS Introduction 3 What is Programmatic Advertising? 4 Making Sense of the Programmatic Ecosystem 5 Types of Programmatic Media Buying 6 Mobile is King 7 Resolving Common Programmatic Misconceptions: Desktop vs. Mobile 9 Resolving Common Programmatic Misconceptions: Mobile Web vs. In-App 10 The In-App Programmatic Advantage 11 In-App SDKs Collect the Data You Need 12 Reach the Most Engaged Mobile Audience at Scale 13 Deliver Compelling In-App Creatives 14 Video Ads 16 What does Opt-in really mean? 16 Interactive/Playable Ads 17 Static Ads 18 Full-Screen 18 Banners 18 Conclusion 19 Chartboost Exchange 20 2 CHARTBOOST POWER-UP REPORT DECEMBER 2017 INTRODUCTION The digital advertising space has evolved at a rapid pace, much of that can be attributed to two main factors: mobile dominated digital media consumption in apps and major technology advances in automated media buying. rogrammatic is a hot buzzword in today’s mobile Programmatic, the automation of buying and sell- Padvertising industry. While most marketers hear ing of digital inventory, offers a huge opportunity for about programmatic advertising, many of them are brands and performance marketers to reach a spe- still confused about it and how it fits into the mobile cific audience with tailored messaging as they en- ecosystem. Its no secret we’re spending more and gage with their favorite apps at scale. more time on our phones. In fact, digital media us- age time is driven by mobile apps, with smartphone This power-up report aims to provide a comprehen- apps accounting for 69% of all time spent -- com- sive guide to understanding what programmatic is pared to 34% on desktop and 7% smartphone mobile and how brand advertisers can use it to drive long- web. Turning to mobile programmatic, is essential for term ROI. We’ll then dive into the various ways to marketers who want to keep up with the way people buy mobile media programmatically and different interact with technology. creative types to optimize performance. Brands that have had success with programmatic marketing on desktop simply can’t afford to ignore mobile if they want to reach their ideal customers. With mobile programmatic, brands can combine so- phisticated targeting with rich mobile device data. 3 CHARTBOOST POWER-UP REPORT DECEMBER 2017 WHAT IS PROGRAMMATIC ADVERTISING? rogrammatic uses software to automate the buying and selling Pof ad inventory leveraging computers and algorithms, as op- posed the traditional human led insertion order process that re- quires tedious heavy lifting. Before the age of programmatic, a typ- ical digital advertising process involved drafting several request for proposals (RFPs), one-on-one negotiations, and manual inser- tions of orders (IOs), making this way of media buying particular- ly inefficient and slow -- especially when processing hundreds to thousands of orders at a time. Programmatic is important for both buyers and sellers because it automates traditional workflows and allows for quicker, cheaper and better targeting than traditional digital ad buying techniques. Equally as important, programmatic enables marketers to target success metrics more closely, and continuously optimize perfor- mance towards campaign KPIs, therefore increasing overall ROI. It also allows a marketer to gain more customer insights, as the technology continually gathers “smart” data, based upon the type of individual that engages with the brand. A marketer can then take these learnings and apply them across all marketing efforts to increase overall campaign performance, which creates a more streamlined, holistic approach to marketing. 4 CHARTBOOST POWER-UP REPORT DECEMBER 2017 MAKING SENSE OF THE PROGRAMMATIC ECOSYSTEM Before we jump into the specifics of mobile programmatic, let’s first review who the biggest players in the programmatic advertising ecosystem. Agency trading desk (atd) supply-SIDE PLATFORM (sSP) An ATD is a massive media buyer and re-sell- An SSP gives publishers a platform to “sell” their er, which functions as an independent work- digital (app or website) inventory to advertisers ing unit within a large media buying concern. placing bids through multiple ad exchanges, ad This technology helps to manage program- networks, and DSPs at once. Through the SSP matic media acquired through a bidding sys- interface publishers manage impression inven- tem, which intends to seek a certain audience. tory and can choose to exclude/include adver- Marketing specialists make use of program- tisers based on ad quality, experience, and rev- matic advertising obtained through ATDs and enue generated. optimize results using DSPs, especially when there is the need for re-targeting when an ad DMP campaign is underperforming. data managment platform (DmP) A DMP collects and aggregates first-party data (data from your own digital properties) plus DEMAND-SIDE PLATFORM (DSP) ad exchange third-party demographic and behavioral data to give you a 360° view of your users. By bringing A DSP is a platform that allows buyers to pur- An ad exchange is a digital marketplace that to purchase using technologies like de- this disparate user data into a single view, the chase ad inventory across multiple ad ex- enables advertisers and publishers to buy mand-side platforms. Those decisions are DMP provides key insights into online and offline changes from a single source. Advertisers and sell advertising space, often through re- often made in real time based on informa- activity to help you define narrowly targeted au- leverage the DSP’s interface to manage bids, al-time auctions. They’re most often used to tion like the user’s historical behavior an diences. Based on specific behavior, interests, set targeting & retargeting criteria, aggregate sell display, video and mobile ad inventory. ad is being served to, time of day, device demographics, purchase history, buying stage, disparate data, and optimize campaigns in re- Advertisers and agencies typically use DSPs type, ad position and more. etc. you can formalize each segment’s criteria. al-time auctions. to then pick which impressions they wish Armed with a wealth of insights you can then send highly targeted messages that not only resonates with your core audience, but inspires them to take action. 5 CHARTBOOST POWER-UP REPORT DECEMBER 2017 TYPES OF PROGRAMMATIC MEDIA BUYING Real Time Bidding (RTB) Programmatic Direct Private Marketplaces One of the biggest misconceptions about Programmatic software allows advertis- An invitation-only RTB auction where one programmatic is Programmatic and RTB ers to buy guaranteed ad impressions publisher or a select number of publish- are interchangeable naming conventions. in advance from specific publisher sites, ers invite a select number of buyers to also referred to as Programmatic Direct. bid on its inventory. Inventory purchased RTB is the process of buying each advertis- Programmatic Direct is direct sold, guar- is transparent – the buyer knows exactly ing impression in a unique auction, based anteed inventory, that doesn’t require hu- which app or site the ad will run on. With on the criteria of the individual whom will man intervention to run (non-RTB). Private Marketplaces, the general prem- see the ad. For example, when a user ise is to skip the exchanges altogether. engages and app and views an ad place- Under programmatic direct deals, a pub- ment, a live auction occurs where the ad- lisher’s sales rep may negotiate an ar- With Private Marketplaces your buying vertisers bid on the ad view based upon rangement with an advertiser that includes platform (DSP) plugs directly into the pre- the user’s habits and interests. Multiple top-tier inventory like home-page- take- mium publisher’s inventory source. The ad formats and quality in-app placements over ads at a fixed price for a guaranteed transaction is within an auction environ- are now available through programmatic number of impressions. ment but the terms of the deal are pre-ne- buying, including Rewarded Video, Inter- gotiated between the buyer and seller stitial Video and Static, and Playables. and the advertiser must be approved – so it is more manual than open exchanges. 6 CHARTBOOST POWER-UP REPORT DECEMBER 2017 MOBILE IS KING 7 CHARTBOOST POWER-UP REPORT DECEMBER 2017 Programmatic Ad Market 35B 30B rogrammatic has been adopted across Programmatic TV most formats and platforms but with mobile P 25B Audio specifically, we’re seeing dynamic growth. Mobile is where users are engaged and where they are Desktop Video 20B most likely to convert. Mobile Video As we see in the chart, mobile video and 15B mobile display combined represents over 50% Mobile Display of programmatic spent in 2017. According to 10B eMarketer, 75% of all video dollars in the US will transact programmatically by 2018. 5B Desktop Display 0 2015 2016 2017 Source: IDC, December 2016 8 CHARTBOOST POWER-UP REPORT DECEMBER 2017 RESOLVING COMMON PROGRAMMATIC MISCONCEPTIONS: DESKTOP VS. MOBILE uying inventory programmatically on mobile and Average time spend per day with mobile internet Average time spend per day with select media by US Adults, Bdesktop, at a basic level, are pretty much the among us mobile users, in-app vs. mobile web 2012-2018 2013-2018 same. Advertisers choose their audiences and de- fine how much they will pay to reach that audience. 4:31 4:22 Media agencies then create the plan to target those 4:11 0:50 0:51 4:05 4:00 0:50 3:55 audiences across desktop and mobile. 0:50 0:51 3:15 3:23 3:06 In both the mobile web and desktop scenarios, the 0:50 2:53 2:37 DSP bids on a per-impression basis on behalf of the 2:16 advertisers and an SSP - whether it’s mobile, desk- 0:38 3:25 2:15 2:14 2:12 2:11 2:10 top, or cross-platform, offers up their inventory and 3:15 3:23 2:08 2:51 3:05 2:28 awards the impression to the highest bidder.
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