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Programmatic Advertising Secrets Every Marketer Must Know

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This course provides a comprehensive introduction to programmatic advertising, explaining its fundamental concepts, ecosystem components, terminology, challenges, and various buying methods. It emphasizes the growing importance and efficiency of programmatic advertising for marketers and advertisers.

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Hello and welcome to this course on programmatic

programmatic

advertising. My name is Rohit Otam

Chandani. I'm a digital marketing

consultant, speaker and trainer and I'm

really excited to be your trainer for this

this

course. I've been in the digital

marketing space for about 6 years now.

Worked with multiple clients across

sectors. Help them craft their digital

strategies, scale their online presence.

I've managed millions of dollars in

advertising spends across various

digital advertising channels and

platforms. I have a strong passion to

speak. So I go around speaking at

digital marketing conferences and events

across the globe. I also have a strong

passion to train and over the last 4

years I've trained over 4,000

professionals including entrepreneurs

and senior level marketing executives in

digital marketing and strategy. So now

that you know a little bit about who I

am, let's look at what we will cover in this

this

course. We'll begin with an

understanding of what programmatic

advertising really is. I'll then take

you through the fundamentals of the

digital advertising auction for those of

you who are not familiar with it. We

then look at the different components of

the programmatic advertising ecosystem.

We look at demand side platforms, supply

side platforms, ad networks, ad

exchanges, what they are and where they

fit into the ecosystem. I'll then take

you through some terminology that you

will keep hearing in the programmatic

advertising space. We look at frequency

cap, above the fold and below the fold

inventory, run on network and run on

site types of ad buying. We'll look at

the most common challenges that are

faced by advertisers in the programmatic

space. We'll understand brand safety,

advertising fraud, and the concept of

viewability. We'll then move on to

understanding the different types of

programmatic advertising. We look at

open auctions, private auctions,

preferred deals, and programmatic

guaranteed deals as well. I'll also tell

you what are the pros and cons of each

type, when you should pick which type of

programmatic advertising. I'll also take

you through the Google programmatic

ecosystem, all the components that are

part of it, and what are the functions

of each component. We look at the

difference between programmatic

advertising and standard display, what

are the advantages and disadvantages of

each and when you should pick one over

the other. And then we'll finish with

some success stories from brands in the

programmatic advertising space that will

show you the true power of programmatic

advertising. So now that you know what

we're going to be talking about, let me

take you through why this course will be

really important and useful to you,

especially if you're a marketer or an

advertiser. Well, programmatic

advertising is growing at a rapid pace.

If you look at the Zenith media

programmatic marketing forecast from

2018, about 65% of digital media spends

in 2019 will be programmatic. In fact,

in the United States, by the end of

2019, nearly 84% of digital display ad

spends will transact

programmatically. Programmatic is

becoming an increasingly important part

of the digital advertising ecosystem.

And as a marketer or an advertiser, it

is imperative that you fully understand

how it works. It's an in- demand skill

that will help you take your career to

the next

level. So, what are we waiting for?

Let's get started. I'm really excited to

take you around the world of

programmatic advertising and I look

forward to seeing you in the course.

Hello and welcome to the first lesson of

the programmatic advertising course. I

hope you're as excited about this course

as I am. In this lesson, we look at what

programmatic advertising really

is. It may seem like this complex fancy

term that people throw around in

conversations to sound a little more

intelligent, but in actuality,

programmatic advertising is nothing but

using technology to buy and sell media.

It's just a way of automating the media

buying process.

Programmatic advertising is marketing

data and technology working together to

make ad buying systems and processes

more efficient. The singular objective

of programmatic advertising is to help

advertisers reach the right audience at

the right time in the right context and

with the right message. As an

advertiser, if you can do this, if you

can ensure that you're reaching each

person you want to reach at the moment,

that's optimal. And with a message

that's personalized for them, your

advertising ROI would be at its best.

And that's exactly what technology,

data, and marketing are working together

here to do to increase the efficiency of

your digital

advertising and maximize the return

investment or ROI you get from it. So

that's in a nutshell what programmatic

advertising really is. and we'll look at

the ecosystem and how it works in more

detail as we go through this course.

We'll begin with understanding the

fundamentals of the digital advertising

auction especially for those of you who

are not familiar with how the auction

works and that's what the next video is

all about. So I look forward to seeing

you in that one. Welcome back to the

course. A good part of digital

advertising is bought using auctions.

And in this lesson, we'll understand the

fundamentals of how digital advertising

options really work. Now, some of you

who already have some knowledge or

experience in digital marketing might

find this lesson a little basic. You

might already know some of this stuff.

In that case, you can either skip this

lesson to the end, or you can skim

through it and watch it at twice the

speed to get a quick refresher of the

topic. Great. So let's get started and

understand how the auction in digital

advertising actually works. We'll first

look at the Google Ads auction and see

how does Google decide which ad to show

at which position. So let's go do a

Google search. So let's say I want to

buy a life insurance plan. So I've just

gone to Google and searched for the

keyword buy life insurance online. And

as you can see, I have four ads that

have shown up here on the top. And as I

scroll below the organic

results, I have three ads here at the

bottom as

well. So how does Google

decide which ads should show at what

position? Well, this happens through the

auction. So each advertiser who wants to

show up for this particular keyword here

would go to their Google Ads dashboards

and bid on this

keyword. So let's assume that those four

advertisers are advertisers A, B, C, and

D. And they all want to show their ads

for that specific keyword. So they would

go to that Google Ads dashboard and they

would enter how much they're willing to

bid for that query. Now, every auction

has a base price. Even in real life

auctions, for those of you who have been

to real life auctions or taken part in

general auctions where products are

being sold, there is always a base

price. And here as well, there is a base

price for this keyword. So, let's assume

that this base price, which is set

before the bidding begins, is a $5 cost

per click. So, for every click on that

keyword, the minimum that an advertiser

would bid would be $5. How is this base

price decided? Well, it depends on multiple

multiple

factors. Most importantly, the

competition in the auction. It depends

on how many advertisers are going after

that keyword and how much are they

willing to pay for it. The more

advertisers in the auction and the more

they are willing to pay for it, the

higher the base price would be. So,

let's say these four advertisers have

paid $7, $8,

$5.50, and $10.

So in this case, if the bid was the only

thing that was taken into account, it's

quite obvious that advertiser D would

win the auction and their ad would show

right on top. But the Google Ads auction

does not take just the bid into account

because in that case advertisers with

deep pockets could buy out smaller

advertisers and users would not get the

best experience as well. In order to

ensure that users get the best

experience and users get the most

relevant ad to show up for their query,

there's another factor that goes into

the auction and that factor is called a

quality score. Now, what is a quality

score? A quality score is a score on a

scale of 1 to 10, one being the lowest

and 10 being the highest that is given

to advertisers for every keyword that

they are bidding on. How is this quality

score calculated? Well, it takes three

factors into account. It takes the

expected clickthrough rate on an ad, the

relevance of the ad to the query being

searched for, and the experience that

the user would have on the landing page.

So going back to our example, let's say

advertiser A has a quality score of

three, advertiser B has a quality score

of four, advertiser C has a quality

score of 8 and advertiser D has a

quality score of two. Now in this case,

the position of the ad or something

called the ad rank is decided based on

both these factors. So ad rank is a

combination of the bit that the

advertiser has put into the system and

the quality score that has been assigned

to their keywords in this case based on

the three factors that we just

discussed. So advertisers who put in a

lot more effort to give the user a

better experience by making their ads

more relevant by making their landing

page experiences better would have a

higher quality score. So in this case

here, let's assume the ad rank is a

simple multiplier between the bid and

the quality score. Though in actuality,

it's quite complex. But for now, for the

sake of simplicity, let's assume that

it's a simple multiplier. The ad ranks

would then be 21, 32, 44, and 20. Going

by the ad rank, the auction would now be

won by advertiser C. So, an interesting

point for you to note here is that

although advertisers see had bid the

lowest, they still ended up winning the

auction. And that's because, like I said

earlier, they put in the effort to make

their ads more relevant and their

landing pages better from a user experience

experience

perspective. Let's take another example.

This time, let's look at a banner ad

being sold through a programmatic

advertising auction. Let's say you've

loaded a site on your laptop. And this

site has an ad spot there where ads can

possibly show. Now there are multiple

advertisers there who would want to

target you with their products and

services. So they would take part in a

similar auction to get their ads to

show. For this auction, just like any

other auction, let's assume that the

base price set before the auction begins

is a $2 CPM, which is $2 per,000

impressions. And let's say there are

four advertisers A, B, C, and D who have

their banner ads ready and they want and

they want these ads to be shown to you

in that ad spot. In order to enter the

auction, they would now have to bid over

that base price, which is $2 for,000

impressions. Let's say advertiser A has bid

bid

$2.20. Advertiser B has bid

$4.80. C has bid $2.80. 80 cents and D

has bid $35. Now, in this case, who do

you think is going to win the auction?

Well, it's pretty obvious. Advertiser B,

who's bid the highest, would win the

auction here, and his ad would end up

showing in that ad spot to you. Now, the

question is, he's won the auction, but

how much would the advertiser end up

paying? Would he pay

$4.80? Would he pay more? Would he pay

the base

price? How much would he end up paying?

The bid that he has set is $4.80, but

how much would he end up paying now that

the ad has been

shown? Well, the answer

is he would end up paying

$3.51. That's because all digital

advertising auctions, including the

Google auction that you just saw, are

second price auctions. When I say second

price auction, it means the winning

bidder would pay a price which is one

notch above the second highest bidder.

In this case here, the second highest

bidder is advertiser D who bid

$3.50 and advertiser B after winning the

auction would pay one notch higher which

is 1 cent higher. And that's how it

comes up to

$3.51. Like I said, all digital

advertising auctions are second price

auctions where the winning advertiser

pays a price which is one notch higher

than the second highest

advertiser. Now this process happens in

real time. It happens every time you do

a search on Google or every time you

load up a site. The auction is taking

place in the background at a speed which

is faster than the time it takes for you

to blink your eye. That's how tech

intensive the ecosystem

is. So if I go back to my Google search

here again and refresh the page, you

would see these positions would most

likely change. So if you know the

positions now, at position one, we have

this advertiser called policy bazar. At

position two, we have an advertiser

called ICICI. Position three is Alaba

Capital and four is Max Life. So I'm now

going to refresh this

page and you saw the positions

change. So position one which was

earlier Policy Bazar has now been taken

by Alia Capital and the other three

positions have changed too. That's

because the auctions are happening in

real time. Every time you refresh a

page, all these advertisers go back to

the auction. The entire process takes

place. Bids are checked. In this

particular case, the quality scores are

checked. The ad ranks are recalculated

and the ads then show up. The same thing

holds good when you visit a site on the

internet. So, I've just opened up the

Washington Post and you see an ad here.

This is an ad that you see on the side.

If I refresh this

page. So I just refreshed the page and

once I refreshed all advertisers who

wanted to bid for that particular spot

would have gone into the auction again

and you can see the ad has now

changed. Now some of you might have a

question on the Google ads auction which

is well advertiser see won the auction

and got their ad to show right on top

but how much would they end up paying?

Well the fundamentals is the same. This

is also a second price auction. In this

case, the algorithm takes the ad rank

and the quality score into account and

calculates a normalized bid. And with

the normalized bid, the winning bidder

would pay one notch higher than the

second highest

bid. So, we've seen a couple of examples

and I hope you guys are now clear with

the concept of how digital advertising

auctions work. So let's recap some of

the key points that we just

learned. The first thing is just

advertising auctions are second price

auctions. So the winning advertiser pays

one notch higher than what the second

highest advertiser had

bid. They are blind auctions. So

advertisers don't know what other

advertisers are bidding. So in the

examples that I showed you, advertiser A

did not know what advertiser B is

bidding. B did not know what C is

bidding and C did not know what D was

bidding. When it comes to programmatic

advertising, the auctions are completely

automated. So in this case that you saw

right from the bids to how much should

be bid is all done through the system.

The bids would be changed in real time

as well. So when you refresh pages, the

bids that you see here for each

advertiser would not remain the same.

the system would figure out the best

match for that user who's loaded the

page and alter the bids accordingly. And

last is that these auctions happen in

real time. Every time you refresh a

page, all advertisers go back to the

auction and the system automatically

finds the best ad to

show. Great. So, that's the fundamentals

of how digital advertising auctions

work. I hope you guys had a great time

learning and I'll see you guys in the

next one. Welcome back. Before we dive

deeper into programmatic advertising,

let's go back to the beginning of time

in digital advertising and see what it

looked like then. So, let's say about 15

years ago, you were an advertiser. Let's

take an example. Let's say you were

BMW and you wanted to advertise on the

internet to audiences that were there.

You made a list of publisher sites that

you want to show your ads on. Publishers

are websites that have ad space to sell.

Let's say one of those publishers that

you wanted to advertise on was the

Washington Post. How do you think you

would have gone about it? Well, the only

way to do it was to get in touch with

them directly. So, you would speak to

the people in charge of ad sales at the

Washington Post and tell them that you

wanted to run a banner ad for BMW on

their site. They would revert to you

with a proposal that would have

different options to advertise on their

site with the prices for each option.

You would then negotiate with them, try

and get the best options at the best

price. You would close the deal,

finalize the period for which the ad

would show. Then a lot of things on the

operational front would happen manually.

You would have the ad being sent across,

tracking tanks being shared. It was

basically a lot of manual work. Right

from the stage where you got in touch to

closing the deal to executing it to

measuring the impact, everything was

being done manually. Apart from all the

manual work that went in, what's worse

is that you would end up showing your ad

to everyone on the Washington Post site

without being able to segment it to an

audience that you would want to go

after. This resulted in a lot of wasted

impressions and a lot of time and effort

that was being spent by teams on the

entire execution

process. From this scenario to where

digital advertising is today, it's

evolved a fair bit and that's what we'll

talk about in the next lesson. See you

in that one. Hello and welcome

back. Let's dive deeper into the world

of programmatic advertising.

In the previous lesson, we talked about

what digital advertising looked like in

the early

days. Well, today it has evolved from

being something as simple as this in the

beginning to something as complex as

this today with thousands of players in

the ecosystem between the advertisers

and the publishers helping match the

right ad impression to the right user.

their agencies, demand side platforms,

supply side platforms, ad networks, ad

exchanges, a whole lot of stuff. So

let's understand where these fit into

the ecosystem. So on one side you have

advertisers, people like us who want to

show our ads to our target audience,

consumers at the other end. In order to

reach consumers, we'll have to reach

them through the sites and apps that

they use online, which is basically what

we call

publishers. Now, as an advertiser, when

you want to buy ad inventory, you would

most likely hire an agency that would

help you buy and manage your ads across

multiple platforms. Now, the left side

of this chart is called the demand side

because this is where there's a demand

for ad impressions.

And the right side of the chuck is

called the supply side because that's

where the supply of the impressions are.

Now agencies do not directly buy from

publishers in the programmatic scenario.

They buy through a platform which is

called a demand site platform or a DSP.

Now, a DSP is nothing but a tool or

software that helps advertisers or their

agencies buy ad inventory that is in

sync with their marketing

objectives. The simplest and most basic

example of a DSP would be the Google Ads

platform itself. Because if you think

about it, that's where advertisers or

agencies go and buy ad impressions, be

it search ads, display or video advertising.

advertising.

A more advanced example of a DSP which

has a lot more features and options for

advertisers is something called

doubleclick bed manager or

DBM. Now these names have all changed

since July 2018 when Google rebranded

all its advertising platforms. So for

some of you who are familiar that's when

Google Adwords became Google ads and all

double click products had their names

changed. So Doubleclick is also owned by

Google and DoubleClick bid manager which

is DBM is today called Google Display

and Video 360 or just Google DV 360.

Don't worry about getting confused

between the old and the new names. In a

later section, I have some time

allocated to getting you familiarized

with these platforms, what their old

names were and what their new names are.

You'd need to know both because these

are used interchangeably in the industry

even today. So that's the demand side.

You have an advertiser who might hire an

agency to buy their ad impressions. The

agency would then interact with the

demand side platform or DSP which is

nothing but a tool or a software that

helps agencies and advertisers buy

relevant ad impressions. For smaller

advertisers who do not want to hire an

agency and pay the agency fees and

commissions, they could go directly to

DSPs as well. So you have advertisers

who use the Google Ads platform directly

for example.

Now on the supply side, just like you

have a demand side platform for

advertisers, you have a supply side

platform or an SSP for

publishers. So what does a supply side

platform do? Well, just like what a DSP

does, it helps publishers sell their

inventory to advertisers in the most

efficient manner possible.

When I say efficiency, what I mean is it

helps them liquidate most of their ad

inventory at the best price

possible. Again, the simplest example of

an SSP would be Google AdSense, which is

where publishers can go and sign up to

have their ad inventory sold through

Google. So let's say you're a publisher,

you have a blog or a website, you want

to monetize it by showing ads. You could

just go to Google AdSense, sign up, and

then Google would start showing ads on

your site and pay you a percentage of

the revenue that they make. Just like

Google Ads works as a great platform for

small to midsize advertisers and also to

an extent for large

advertisers, Google AdSense works as a

great platform for small to midsize

publishers. For publishers who are

really large, they would need a lot more

advanced functionality in the supply

side platform to help them liquidate the

massive inventory that they would have

at the best price. So an example of a

more advanced supply side platform, one

that is used by a large number of

publishers across the globe is double

click for publishers or DFP. Again, this

name has changed as well and today it's

called the Google Ad Manager. Like I

said, don't worry about the old and the

new names. We'll come back to it at a

later point. Now, the demand side and

the supply side interact with each other

through something called an ad network

or an ad exchange. Let's look at ad

networks first. Ad networks are

basically companies that have a bunch of

publishers partnered with them to show

ads on their site.

A classic example of an ad network is

the Google Display Network or the GDN.

As most of you might be aware, the GDN

is nothing but a network of sites and

apps that have partnered with Google to

show Google ads on them. So, Google owns

the network and shows ads on these publisher

publisher

sites. Publishers then make a percentage

of the revenue. So these ads are sold by

publishers through Google AdSense and

bought by advertisers through Google

ads. Another example of an ad network

which is quite popular is the Facebook

audience network or the

FAN. So these are ad networks which like

I said they're companies that have

partnered with a whole bunch of

publishers to show ads on those

publisher sites and apps.

The other way in which the demand side

and supply side interact is through

something called an ad

exchange. Ad exchanges tend to be much

larger than ad

networks. You could have one ad exchange

interacting simultaneously with multiple

ad networks.

Ad exchanges are also more transparent

when it comes to their options and the

pricing models because with ad networks

the prices are determined individually

by the company that owns it. With ad

exchanges, it's more real time and

decided by market dynamics through the

auction. A classic example of an ad

exchange is the doubleclick ad exchange

or adex as it's abbreviated.

This is one of the largest ad exchanges

globally. And when we come to the Google

programmatic ecosystem in a later

section of this course, we'll understand

the inventory that the doubleclick

exchange has and the other ad networks

and ad exchanges it has partnered with.

Great. So that's the programmatic

advertising ecosystem for you. Now, one

thing I want to clarify for you guys

here as advertisers and marketers is

that in order to operate a system

efficiently, you don't really need to

know the nitty-gritty aspects of how the

systems work in the back end. To give

you an analogy here, I'm sure most of

you can drive a car. But if I were to

ask you to tell me how the engine really

works, most of you wouldn't have clarity

on that aspect. But I'm sure you can

drive really well. The same thing

applies to the programmatic ecosystem as

well. The technical side of it can be

quite complex, but as advertisers and

marketers, you don't really need to

understand that side in order to be able

to operate it efficiently. All you need

to know is have a clear idea of what

these components are, what do they do,

and where they fit into the ecosystem.

And that's what we've done by looking at

this flowchart here. I hope you now have

more clarity on the basic functioning of

the programmatic advertising ecosystem.

In later sections, we'll go on to

understand some more terms that are

spoken in the programmatic advertising

space and we'll also look at the

different types of programmatic

advertising out there and how you can

use them as

advertisers. Thank you for being part of

the lesson. I hope you had a great time

learning and I will see you in the next

one. Welcome back. In this section, we

talk about some of the most common terms

that you would hear in the programmatic

advertising space. But before we get

there, a quick recap of what we've

covered so far. We've looked at what

programmatic advertising really is.

We've gone through the fundamentals of

the digital advertising auction. We've

seen how digital advertising has evolved

from the beginning of time to what it is

today. And we've also gone through the

entire programmatic advertising

ecosystem, seen how it works, understood

some of the most important components.

We've seen DSPs, SSPs, ad networks, ad

exchanges, where they fit into the

ecosystem and what function do they

perform. We now move on to our first

term in programmatic advertising,

something called a frequency cap. A

frequency cap is also used across

digital advertising, not just in the

programmatic space. But there is one

advantage when it comes to programmatic

advertising, which we'll talk about at

the end of this lesson. Before we go to

frequency capping, let's look at what

frequency is. This is something some of

you who are familiar with dish

advertising would already know. So you

could consider this as a quick

refresher. And for those of you who are

new, it's an important topic that you

must pay attention

to. Frequency is basically the average

number of times that your ad has been

shown to a unique user. Right? So if

your ad is being shown five times to a

single person, the frequency is five. If

it's been shown eight times to a single

person, the frequency is eight. So how

is this calculated when you're running

ad campaigns reaching a large number of

people where frequency which is

generally calculated for a specific time

frame? So it could be the frequency over

a week, over a month, it could be

frequency over a day. This is basically the

the

impressions that have been delivered in

that time frame divided by reach in the

same period. A quick refresher,

impressions are the number of times that

your ad has been shown to users and

reach is the number of people or unique

users who your ad has been shown to.

Impressions are always greater than

reach. You will never have a scenario

where impressions are less than reach.

So you take a couple of examples here.

Let's say that you ran a campaign, the

impressions were

5,000 and you reach 2,500 people. So in

this case, the frequency is two. That's

the average frequency. And let's assume

this is all over a week. So that's a

frequency of two over the last week

where your ad campaign got you 5,000

impressions and you reach 2,500 people.

If the impressions are 3,000 and the

reach is 3,000 as well, that means your

frequency is one. This means you reached

everyone in the audience just

once. Likewise, another example. Let's

say your campaign delivered 6,000

impressions and reached 1,000 people. In

this case, on an average, each person

was delivered the ad six times, right?

So, that's how frequency is

calculated. So, what's the significance

of this

metric? Well, it's something that's

really important when you're managing

campaigns. If you set your frequency too

high, you're going to be overexposing

your audience, right? This will result

in sub-optimal spending of your

marketing budget because beyond a point,

you're not really going to be

influencing your audience anymore. And

what's worse is you could even annoy

them. Nobody likes seeing the same ad

too many times. And if you overexpose

them, your ads could end up having

detrimental effect as well. And as an

advertiser, you wouldn't want that to

happen. You would want to show the ad to

your users an optimal number of times,

which is just enough to drive a recall

for you, right? Because if you show your

ads infrequently or where the frequency

is too low, then the opposite would

happen. You would underexpose your

audience and this would not drive strong

enough recall and visibility for you.

Which is where, like I said, the

frequency needs to be optimal and that's

where a frequency cap comes in. Setting

a frequency cap helps you limit your

exposure to whatever you want, right?

So, how do you figure out what this

optimal frequency is? Well, the best way

to find the optimal frequency is to test

different frequency values over a

certain time period against your desired

marketing outcome. So, the outcome could

be a lift in brand recall, a lift in

sales. You would test different

frequencies and see if you're meeting

your end objective. So, are you getting

the conversions you want? Are you able

to generate the brand recall that you

want? That's how you would go about it.

A lot of people ask me if there is a

fixed frequency that they should go

after or is there a simple chart to

follow saying that well I should set a

frequency cap to five per week or two

per day or 25 in a month. Well, honestly

it varies widely from brand to brand,

business to business and marketing

objective that you want to go after. So

the best way honestly to go about it is

to test. When it comes to testing, I

have a great framework here for you that

you can keep in mind when you're testing

different frequencies. It's a great

frequency factors chart which has been

published by Facebook ads. It's one of

the most clear and concise frameworks

that I've seen when it comes to planning

your frequency cap. So, this chart gives

you multiple factors to look at when

you're deciding or testing your

frequency caps. The first bunch of

factors is what we call market factors.

So, let's say you're an established

brand, a brand that's been around for

ages. You've got a large market share.

Uh, you got a high share of voice. In

this case, you would rather use a low

frequency because you already have a

fair bit of brand recall and you don't

want to overexpose your audience or

waste your budget by reaching people who

already remember you well enough. On the

other hand, let's say you're a new

brand. You've just started out. You

don't have the kind of share of voice

that a bigger brand has. In this case,

you would need to test higher frequency

caps for the same time period. So,

market factors are one. The other is

what we call message factors. So, think

about your ad messaging. If your message

is unique and not very complex, fairly

easy to understand, then a lower

exposure would do because if people see

the message once or twice, they would

get it. On the other side, if you got an

ad messaging that's that's new, that's

not really unique, that's quite complex

to understand, you might need to plan a

higher cap because people would take

time to figure out your message and then

remember what you're trying to say. The

last one is media factors. So, you look

at your campaign duration, for example.

Is it a campaign that you're planning to

run for a long, long time? Are you going

to run this campaign for the next 3

months with similar messaging? Then you

might want to keep your caps lower

because in this case over time the

exposure would be high. So when the

weekly cap would be low, if you look at

the overall exposure over the 3 month

duration of your campaign, it would be

enough for you to drive the right amount

of recall. Likewise, if you're using

multiple channels, so let's say you're

doing ads across different publishers,

different networks, then you might want

to have a lower frequency across all

because you're going to have multiple

touch points with your audience and

you're going to be exposing your ads to

them across different media. On the

other hand, if your campaign duration is

short, let's say it's a short burst

campaign, you've got a launch and you're

doing a campaign just for 3 days or you

got an offer and you're running a

campaign just for those 3 days prior to

the offer, then you would use higher

frequency caps, right? So, this is a

great framework to use when you're

planning your frequency caps. Keep these

in mind and test your frequency. Find

what works best for specific brands and

specific scenarios. Now, when it comes

to programmatic advertising, a big

advantage that advertisers have is you

can use something called a global

frequency cap, which you can set across

publishers and networks. With normal

display advertising, you would not be

able to do this. Let's say you're

running ads on on Google Adwords, which

is now Google Ads, or on Facebook and a

bunch of other platforms. You can set

individual frequencies on each platform,

right? You can control your frequency

separately on Google, separately on

Facebook, separately on let's say Yahoo

or on LinkedIn, but you can't really

control the frequency or the exposure

globally. With programmatic advertising,

it makes your life much easier as an

advertiser because now you can control

frequency across platforms. So you can

work with multiple publishers, multiple

ad networks and set a global frequency

cap saying that well the moment my

frequency cap of let's say three is hit

I want my ads to stop showing to that

user across all

networks. So that's frequency cap. Like

I said it's a common term that you hear

in the programmatic space also use it

quite often and it's important to

understand what it is. How do you go

about setting the right frequency caps

and what is the advantage with frequency

capping when it comes to programmatic

advertising? Great. So that's all about

frequency cap. Hope you had a fun time

learning this concept and I will see you

in the next one. We're talking about

programmatic advertising terminology.

And in this lesson, we look at first,

second, and third party data. These are

common terms that you will hear across

the programmatic advertising industry

and you must know what they are. Let's

start with first party data. So what is

first party data? It is basically data

that a brand owns. So what does that

mean? Let's look at some examples.

Customer databases are an example of

first party data. So your customer email

ids, mobile numbers that you've

collected over time. This is data that

you own. You know how you've collected

them. you know where it came from.

Another example is data from your CRM

software. This could be your customer

purchase data. Which customers have

higher transaction volumes? How

frequently do they make a purchase? All

of this is again data that you own and

it's first party data. Data of your app

users is another example. People who use

your app, people who use your app less

frequently, people who use it more

frequently, people who make purchases in

the app. Another example is people who

visited your website and you're able to

track those visitors and remarket to

them later. You can even use this data

to build audiences similar to your

existing customers. Another example of

first party data is people who watched

your video. Let's say all the people who

watched your video on YouTube, you own

the data and you could target them with

another video. All the people who

watched a certain video on Facebook, you

could target them with another video. So

you own all this data. It's been created

through your marketing activities,

through the various activities that your

business does. This is extremely

valuable data and as a brand, it's

really important that you capture every

data point that you can. Of course, at

the same time, ensuring that you comply

with data privacy regulations.

One of the most powerful ways of using

first Py data apart from just

remarketing their existing customers or

reaching out to them and re-engaging

them is something called lookalike

modeling or like I said earlier using

the capabilities in different

advertising platforms to build audiences

that are similar to your existing

customer. These similar audiences can

then be very effective in helping you

achieve your business objective. So

that's first party data. Let's look at

the second type which is second party

data. So what is second party

data? It is data that is shared by a

partner. Let me explain this with an

example. Let's take an airline here, any

airline that has a frequent flyer

program and wants to promote it. And

let's take a bank that wants to promote

their travel credit card. Now the target

audience for these two companies would

have some degree of overlap. So they

could then agree to do some kind of a

cross promotion where the airline would

tell the bank that they would advertise

to existing customers of the travel

guide card and the bank would in turn

advertise to existing members of the

frequent flyer program. So this type of

data sharing is called second buy data.

When you partner with someone and use

their data for your marketing and

advertising purposes, it's called second

buy data. Here you know where the data

came from. You know it's from a credible

source and you can trust it. The third

type of data is something called third

party data. This is basically data

collected by a third party just as the

name indicates. Let's look at some

examples of this to understand what this

really is. Let's say you purchased a

database from a vendor. Now you have no

clue how the vendor collected that data.

You have very little information on the

quality of the data. So this is an

example of data that's been collected by

a third party and you don't really have

a clear idea of how the data was

collected. Another example of third

party data is your Google ads audience

data. So when you run display ads on the

Google ads platform, you have various

audiences that you can target. For

example, you can target audiences who

are interested in a certain topic,

audiences who have an affinity for a

certain category, audiences who are in

the market for a certain product or

service. Now again in this case these

are audiences that have been built by

Google based on the data that Google has

collected. Google does give you some

idea on how they've collected the data

but you don't have a clear picture of

how those audiences are actually built.

This is another example of third party

data. Only difference here is because

Google is an extremely credible player

in the online advertising ecosystem. you

would trust that data much more than you

would trust data from let's say

something you purchased from a random

vendor. Another example of third party

data is data collected by something

called DMPS or data management

platforms. So data management platforms

are companies that collect data from

multiple sources, put it together,

process it, segment it, and then package

it into specific buckets that can be

bought by advertisers. Now on

programmatic advertising platforms, you

have access to buy third party data from

data management platforms. You can't do

this with Google Ads. In fact, this is

something we'll also talk about in a

later lesson. The key advantage of

programmatic advertising is that you

have access to a lot of third party

data. Now, not every third party data

set might be reliable or credible, but

it's up to you to ensure you target

third party data sets from more reliable

data management platforms. Some of the

more reliable data management platforms

are BlueAI which is owned by Oracle,

Lot, Adobe Audience Manager, and the

Google Audience Center 360. So when you

buy data from DMPS, ensure the DMP is

credible and you can trust that the

third party data would be worth

targeting in campaigns that you're

running. Using credible third party

audience data can help you reach out to

newer audiences through program

platforms who you might not be able to

really reach

otherwise. Great. So we've seen the

three different types of data. We've

looked at first, second, and third party

data. Understood what they are and

looked at examples of each. I hope

you're now clear with this concept and I

look forward to seeing you in the next

lesson. We've been discussing

programmatic advertising terminology.

And in this lesson, we talk about four

terms, ATF and VTF and RO and

ROS. Now, there's this old joke that

programmatic advertising is full of what

we call TLAs or threeletter acronyms.

You'll keep seeing a lot of these in the

programmatic space. So there's DSPs,

SSPS, RO, ROS, ATF, BDF, there's RTB,

DBM, DMP, DFP, DCM. Well, sounds like a

mouthful and it might get a little

overwhelming when you're just starting

on programmatic, but don't worry. By the

end of this course, you'll be more

comfortable with all these TLAs. And as

you get into the programmatic space

yourself, after a point, you'll just get

very comfortable with all of them. And

these are just a few that you see on the

screen. There are a lot more that we'll

keep talking about as we go along. I

will also include a resource for you

which would be a ready recorder of all

these TLAs in one place towards the end

of the

course. So let's look at ATF and BTF

first. These are common terms that you

would see when you're in the

programmatic space. You'd see these in

proposals. You'd see these in reports.

So let's look at what this really means.

Let's look at this publisher site here.

Now, above the fold or ATF, it refers to

the area on the screen that you see when

you load a site. So, when you first load

a site, the area that you see on the

screen here, this is what we call above

the fold. And all the ads that would

show in this area is called above the

fold inventory or ATF inventory. So in

this case, the ad that you're seeing

here on the top left corner from

HostGator and this ad that you're seeing

here for this live webinar are above the

fold ads. Likewise with this ad here

which says become a

subbroker. So these ads are all above

the fold. As I scroll

below, there's this ad here from

LinkedIn which says introducing video

ads which I'm getting targeted for

because it's relevant to me. So this ad

was just at the fold and then as you

keep scrolling

below you'll see more ads as well. So

let's keep scrolling here. You see this

ad here. So this ad is below the fold.

In fact this is me getting remarketed

for something I searched for. If you

guys remember in the session on dish

advertising auction fundamentals, I

searched for life insurance plans and I

accidentally happened to click on one of

those links at that point and now I'm

getting retargeted or remarketed here.

So this is an ad that's below the fold.

Likewise, this ad that you see here,

this is also a below the fold ad. So

when you're buying ad

inventory, inventory that is above the

fold and just at or below the fold is

inventory that's considered much more

valuable. Inventory that is below the

fold and the more and more below the

fold you go, the less valuable the

inventory becomes. So that's something

to keep in mind when you're buying

inventory is to check whether it's above

the fold or below the fold. And if you

specifically want above the fold

inventory, you can mention that while

buying your ads as well. Moving on to RO

and ROS which are types of ad buying.

ROS or runoff site is an ad buying

option where your ad placements would

appear on any pages of a target site. So

on the site that you just saw which was

moneycontrol.com. If I buy ads from them

on an ROS model, that means my ads could

show on any page of their site and any

position on those pages, right? I don't

control which pages I want to show my

ads on. If I want to show my ad only on

their homepage, then I would choose a

different ad buying option. I would not

choose an ROS option. RO on the other

hand is runoff network. This is an ad

buying option in which your ad

placements would appear on a wide

collection of sites in a specific ad

network without having the ability to

choose specific sites. So to give you an

example, let's say you're running ads on

the Google Display Network and you're

targeting a specific audience. Let's say

you're targeting an audience aged 25 to

45 in California who is in the market

for a new car. Your ads would show to

that audience anywhere and everywhere on

the network where the audience is

present. Likewise with different ad

networks, they might give you an option

saying you could run ads across our

network and reach specific audiences

without having to worry about choosing

specific sites. So these are different

options. You would choose these options

depending on the objective of the

campaign that you're running at that

point. In some cases, you might choose

RO. In some cases, you might choose ROS.

In some cases, you might not choose any

of these. And you might choose to

advertise only on specific areas of a

specific site. So, that's the end of

this lesson. I hope you're now clear on

what above the fold and below the fold

is and what runoff site and runoff

network types of ad buying are. I look

forward to seeing you in the next one.

Hello and welcome to this lesson on

brand safety.

Brand safety has been a key concern for

marketers and advertisers

today, especially when it comes to programmatic

programmatic

advertising. So, what really is brand

safety? Well, brand safety is ensuring

that an online ad does not appear in a

context that could potentially damage

the advertiser's brand. In a recent

study done by the integral ad science,

which is one of the most credible

companies in the programmatic

advertising space, they found that over

40% of display ad impressions on

desktops served next to violent content

and about 18% of impressions served next

to adult content. Now, as brands, you

don't want your ads to show in

environments that are not congenial to

your brand. These are not just limited

to violent nut content, but there's a

whole list of toxic content categories

that a brand would not want to associate

itself with. It could be content around

military conflict, obscenity, illegal

drugs, adult content, content around

weaponry and arms, hate speech, crime,

terrorism, and other spammy and harmful sites.

sites.

In the recent past, especially over the

last couple of years, there's been a

spurt in the number of reported

incidents of brand ads being shown next

to content which brands would not want

themselves to be associated with. Just

Google for brand safety examples and

you'll find a whole bunch of them. I've

just pulled up some to show you which

are safe to show in a course. So, this

is an example of a brand ad showing on a

YouTube video from Combat 18, which is a

violent pronabsi group. Here's another

example. This is from Walmart where we

have Walmart's ad showing on a video of

this organization called the Animal

Liberation Front, which is an extremist

organization that goes to the extent of

killing humans to protect animals.

Another problem with ads like these,

apart from the fact that a brand would

not want to associate themselves with

this content, is that to a lot of users,

it might appear that Walmart is

endorsing this group. And that's not

something the brand would want. Not just

that, since Walmart is paying YouTube

for this ad and YouTube is going to

share that revenue with the video on

which the ad was displayed indirectly,

Walmart is also helping the extremist

group to monetize. And most brands, like

I said, would not want to do this. You

can find a whole lot of examples. This

is another one. This is an ad for this

brand called Sandals, which is a luxury

holiday operator appearing on a video

that is promoting

jihadis. Another one. This is an ad for

the Guardian in a content environment,

which is not the most ideal. So brand

safety is a serious concern for

marketers and of late YouTube has been

under the scanner for a lot of this

video content on the platform where

brands ads have been showing. In fact

some big advertisers in the United

States like on AT&T and Johnson and

Johnson also pull their ads from YouTube

for a while over the content environment

that their ads were showing in. These

are all news articles that have been

published in leading online publishers

and I will share the links to these

articles in the resources section of

this lesson. So you can check them out

and read them yourselves as well. This

is another article which is from N 2017

where in the UK brands found that their

ads were showing on video sexualizing

kids and this caused a good number of

brands including IDAS and Dodgebank to

pull out as well. This was reported in

the times in the UK too.

Well, some of you might be wondering why

isn't YouTube pulling down this content

in the first place. Well, YouTube is

doing its best to do that, but it's not

always possible at the scale at which

YouTube is to police every video that

comes in. And especially when some

videos are subjective, because what

might seem extremist to me might not

seem extremist to somebody else. In

cases where the content is subjective,

policing it becomes all the more

difficult. It's much easier to remove

content that's explicit, adult content,

content that has nudity, because that

can even be done through advanced

artificial intelligence algorithms. But

content that is, like I said, subjective

becomes quite difficult to police.

Though, YouTube is doing its best to at

least not help these channels monetize.

In fact, in response to these brand

safety concerns that advertisers had

raised, YouTube had changed its

monetization guidelines for publishers

on the platform where starting last

year, publishers would need to have at

least,000 subscribers on their channel

and 4,000 hours of watch time a year.

It's not just YouTube, but as recent as

about a couple of weeks back,

advertisers found their ads on Instagram

showing against content that was

connected to or promoting suicide. This

was reported across the media as well,

and I'll share this article too in the

resources section so you can go and take

a look. Apart from these cases, there

could also be very subtle cases where

brands would not want the ads to show.

For example, it could be a news site

where there's a report of a car crash

and next to that you have an ad for a

Honda car. That's not going to be ideal.

You don't want to see an ad to buy a car

on a page that's talking about a car

crash. Now, brand safety is a major

problem, especially with programmatic

buys and open auction programmatic buys.

The reason I'm explaining this concept

now is because when we move on to types

of programmatic advertising in a later

session, I will talk about the open

auction type and because the open

auction type ars advertisers to go after

audiences anywhere on the internet

irrespective of what site they are,

brand safety becomes a major problem. In

the lesson where we talk about the pros

and cons of each type of programmatic

advertising and we talk about the

disadvantages of the open auction brand

safety is a key disadvantage there. So

I'll come back to this in that lesson

and talk about this challenge. But for

now it's important for you to understand

the concept of brand safety and why it

has become a key concern for advertisers

today. In order to help advertisers

tackle this challenge, there are some

platforms and tools out there that help

verify brand safety, help in verifying

if your ads showed in the right places.

Of course, this would be after the fact,

but at least you would know and you can

take corrective action for the future.

So, they also categorize sites based on

their brand safety risk and you could

choose to avoid sites where the risk is

high or moderate. So, these are two

tools that you can use. So I'd suggest

you go to their websites, check them

out, see what they do. The first one is

double verify. The second one is

integral ad science. So that brings us

to the end of this lesson on brand

safety. Hope you're now clear with that

concept and I will see you guys in the

next video. Welcome back. Apart from

brand safety which we covered in the

last lesson, another important topic

that you need to understand is ad fraud

and bot traffic. Sometimes also called

NHT. So that's another threeletter

acronym that you need to remember. NHT

is non-human traffic. It's also called

IVT sometimes which is invalid traffic.

So you can remember both those terms.

NHT which is non-human traffic and IVT

which is invalid traffic. So let's begin

with what is ad fraud in the first

place? Well, ad fraud causes advertisers

to pay for fake worthless traffic. So

where does this fake worthless traffic

come from?

It comes from bots. And as most of you

might be aware, bots are computer

programs that mimic human actions on the

internet. Now, most of you would be

surprised to know that over 50% of

internet traffic is bots. And this is

from the Encapsula Bot Traffic Reports

2016, which analyze data from over 16.5

billion visits to about 100,000 randomly

selected domains on their

network. There are multiple reports that

have been published with similar stats

where it states anywhere between 40 to

50% of web traffic is bots. Now, if you

look at that chart there, you've got

something called good bots and bad bots.

So what are these good

bots? Good bots are bots that make the

internet a better place. So Google

search engine bot for example. So how do

you think Google shows you the best

results from websites across the

internet? Do you think they have

somebody sitting and reading all that

stuff out there? Well, it's all done by

their bots which go around crawling

every website on the internet indexing

it and then giving you the best results.

So, similar to Google search engine bot,

there are a whole bunch of bots out

there that help making our lives on the

internet easier. The remaining bots or

the bad bots are basically all those

impersonators, scrapers, spammers, and

hackers that try and gather information

for harmful reasons. So, these are the

bots that are responsible for all that

online fraud that happens. If you look

at the numbers in 2017 about $14

billion was lost to ad fraud and it's

estimated that by 2022 about $44 billion

of advertiser money would be lost to the

ad fraud industry. Now that's massive

and it's a big problem at

hand. Again, if you look at ad fraud,

it's being covered in the mainstream

media as well. This is an article from

CNBC talking about the amount of money

being wasted on fake websites and

fraudulent ad networks. In fact, just a

couple of months back, the United States

and the UK have joined up to tackle ad

fraud, which they see growing into a $50

billion problem. But a lot of you might

be wondering, how does this ad fraud thing work? What exactly happens? So,

thing work? What exactly happens? So, I'm going to show you how this really

I'm going to show you how this really works and how does it

works and how does it happen. So, the first step in creating

happen. So, the first step in creating ad fraud is turning on a fake website.

ad fraud is turning on a fake website. So, what these hackers and spamsters do

So, what these hackers and spamsters do is create websites that are fake. They

is create websites that are fake. They then get their websites listed on ad

then get their websites listed on ad exchanges and networks so that their

exchanges and networks so that their websites would not be eligible to show

websites would not be eligible to show ads. Note that these ad exchanges would

ads. Note that these ad exchanges would be smaller ones and not the large ones

be smaller ones and not the large ones because the larger and the credible ones

because the larger and the credible ones have a whole long list of guidelines

have a whole long list of guidelines before they take on a site. For example,

before they take on a site. For example, if you want to join the Google Display

if you want to join the Google Display Network, you have to meet their site

Network, you have to meet their site monetization guidelines. So these

monetization guidelines. So these spamsters would go on and join smaller

spamsters would go on and join smaller ad networks and ad exchanges and there

ad networks and ad exchanges and there are thousands of them out there

are thousands of them out there especially in the programmatic

especially in the programmatic ecosystem. So once they've created a

ecosystem. So once they've created a fake website and joined an ad network or

fake website and joined an ad network or an ad exchange, they now get to load ads

an ad exchange, they now get to load ads on their site. Once ads start showing on

on their site. Once ads start showing on their site, they would need users to

their site, they would need users to view those ads, right? Only when ads are

view those ads, right? Only when ads are viewed and ads are clicked would they

viewed and ads are clicked would they make money. So how do they get these

make money. So how do they get these viewers? Well, they use bots. So these

viewers? Well, they use bots. So these bots now view those websites and result

bots now view those websites and result in those ad impressions being triggered.

in those ad impressions being triggered. Now, let's assume that the exchange pays

Now, let's assume that the exchange pays them a $5 CPM for all the ad impressions

them a $5 CPM for all the ad impressions they generated, and it probably cost

they generated, and it probably cost them 50 cents to a dollar to drive that

them 50 cents to a dollar to drive that bot traffic to their site. They would

bot traffic to their site. They would then pocket the difference, which is

then pocket the difference, which is $4. So, I'll repeat the process so it

$4. So, I'll repeat the process so it becomes clear again. So, these hackers

becomes clear again. So, these hackers turn on fake websites, get those fake

turn on fake websites, get those fake websites to join ad networks and

websites to join ad networks and exchanges. So now these sites are

exchanges. So now these sites are eligible to show ads. Ads start showing

eligible to show ads. Ads start showing on those sites. They then buy bot

on those sites. They then buy bot traffic, let's say at a $1 CPM. These

traffic, let's say at a $1 CPM. These bots view those ads. Since the ads are

bots view those ads. Since the ads are being viewed, the ad exchange would pay

being viewed, the ad exchange would pay them, let's say, a $5 CPM, and they

them, let's say, a $5 CPM, and they would then pocket the difference and

would then pocket the difference and make a profit on it. So, they spent $1

make a profit on it. So, they spent $1 to get the traffic, earn $5 on the

to get the traffic, earn $5 on the impressions, $4 is their profit, which

impressions, $4 is their profit, which is about 80% operating margin. Right?

is about 80% operating margin. Right? So, this is just a simple flowchart to

So, this is just a simple flowchart to help you understand how this really

help you understand how this really works. It's actually much more complex

works. It's actually much more complex than this. In fact, in the following

than this. In fact, in the following lesson, I will show you some of the

lesson, I will show you some of the largest ad frauds that have happened in

largest ad frauds that have happened in the last few years, and you'll see how

the last few years, and you'll see how complex it can actually get.

complex it can actually get. But before we get there, I want you guys

But before we get there, I want you guys to watch this really interesting video

to watch this really interesting video created by the team at Integral Ad

created by the team at Integral Ad Science, which shows you a realtime bot

Science, which shows you a realtime bot demo and it'll give you a better

demo and it'll give you a better understanding of how these bots view ads

understanding of how these bots view ads and how ad fraud really happens. So in

and how ad fraud really happens. So in your next lesson, I've shared the link

your next lesson, I've shared the link to this video. You guys can watch this

to this video. You guys can watch this video and once you come back, we'll

video and once you come back, we'll discuss this and look at ad fraud in

discuss this and look at ad fraud in more detail. See you in the next lesson.

more detail. See you in the next lesson. Hello and welcome back. Hope you guys

Hello and welcome back. Hope you guys enjoyed watching that video on the live

enjoyed watching that video on the live bot

bot demonstration. So, in the video, he

demonstration. So, in the video, he infects one laptop with a bot and then

infects one laptop with a bot and then uses another laptop to monitor the bot's

uses another laptop to monitor the bot's activities. And you could see how the

activities. And you could see how the bot was viewing ads that were meant to

bot was viewing ads that were meant to be shown to human beings. And in a short

be shown to human beings. And in a short period of time, it had viewed thousands

period of time, it had viewed thousands of ads. So, you can imagine what

of ads. So, you can imagine what millions of bots could possibly do. One

millions of bots could possibly do. One of the largest ad fraud scams to date

of the largest ad fraud scams to date has been the method scam which hit in

has been the method scam which hit in December 2016. This was covered widely

December 2016. This was covered widely in the mainstream media as hackers made

in the mainstream media as hackers made about $5 million a day by faking about

about $5 million a day by faking about 300 million video views and this to

300 million video views and this to about $180 million in online ads. Again,

about $180 million in online ads. Again, I'll share the links to these articles

I'll share the links to these articles in the resources section of this lesson.

in the resources section of this lesson. Now, $3 to5 million in fraudulent dish

Now, $3 to5 million in fraudulent dish ad revenue per day is massive. So, how

ad revenue per day is massive. So, how did they manage to do this? Well, here's

did they manage to do this? Well, here's the modisa brandy. The hackers first

the modisa brandy. The hackers first created about 6,000 domains. If you

created about 6,000 domains. If you remember the flowchart that we discussed

remember the flowchart that we discussed sometime back in the course where we

sometime back in the course where we talked about how ad fraud works, you'd

talked about how ad fraud works, you'd see the fundamental process is pretty

see the fundamental process is pretty much the same, right? So after they

much the same, right? So after they created these domains, they then created

created these domains, they then created about 250,000 distinct URLs and made

about 250,000 distinct URLs and made them appear that they belong to

them appear that they belong to prestigious publishers like ESPN or

prestigious publishers like ESPN or Woke. This is something we call domain

Woke. This is something we call domain spoofing in the industry where you use

spoofing in the industry where you use technology to make a domain or a URL

technology to make a domain or a URL appear to belong to another publisher.

appear to belong to another publisher. Next, they set up fraud farms to produce

Next, they set up fraud farms to produce fake traffic from more than half a

fake traffic from more than half a million bots, which watched about 300

million bots, which watched about 300 million video ads per day. The average

million video ads per day. The average payout being $13 per thousand fake

payout being $13 per thousand fake views. This was a fairly sophisticated

views. This was a fairly sophisticated operation done at scale. And in order to

operation done at scale. And in order to bypass anti fraud detection mechanisms,

bypass anti fraud detection mechanisms, they obtained hundred thousands of IP

they obtained hundred thousands of IP addresses, associating them with major

addresses, associating them with major United States providers, making them

United States providers, making them look like they come from American

look like they come from American households. This is a classic example of

households. This is a classic example of how sophisticated these ad fraud

how sophisticated these ad fraud operations have

operations have become. Another large scam to hit

become. Another large scam to hit recently in October 2017 was the

recently in October 2017 was the Sportbot scam which affected most of the

Sportbot scam which affected most of the top sports sites across the globe and

top sports sites across the globe and cost advertisers about $250

cost advertisers about $250 million. So why does ad fraud exist in

million. So why does ad fraud exist in the first place? It's out in the open.

the first place? It's out in the open. It's being covered in the mainstream

It's being covered in the mainstream media. People talk about it. So why is

media. People talk about it. So why is no one doing anything about it? And why

no one doing anything about it? And why is it a problem that just seems to be

is it a problem that just seems to be growing? Well, the biggest reason is the

growing? Well, the biggest reason is the open nature of programmatic advertising

open nature of programmatic advertising marketplaces. We talked about the

marketplaces. We talked about the programmatic ecosystem. We said there

programmatic ecosystem. We said there are thousands of ad networks, ad

are thousands of ad networks, ad exchanges, demand and supply side

exchanges, demand and supply side platforms where impressions are bought

platforms where impressions are bought and sold. The ecosystem is massive and

and sold. The ecosystem is massive and there's a lot of money being spent

there's a lot of money being spent there. As per remarketer, about $280

there. As per remarketer, about $280 billion was spent on digital advertising

billion was spent on digital advertising in 2018. With such a large ecosystem and

in 2018. With such a large ecosystem and so much money being spent, we'd expect

so much money being spent, we'd expect some regulation. But unfortunately, as

some regulation. But unfortunately, as of today, the entire programmatic

of today, the entire programmatic ecosystem is completely unregulated. And

ecosystem is completely unregulated. And this is what is helping driving the

this is what is helping driving the growth of ad fraud. Another equally

growth of ad fraud. Another equally important reason why ad fraud exists and

important reason why ad fraud exists and is growing today is that it is

is growing today is that it is technically not illegal in any country.

technically not illegal in any country. That's why a lot of the mafia across the

That's why a lot of the mafia across the globe has started indulging in ad fraud.

globe has started indulging in ad fraud. However, as ad fraud has been growing to

However, as ad fraud has been growing to massive numbers of late, impacting the

massive numbers of late, impacting the entire ecosystem and the money that is

entire ecosystem and the money that is being generated is being used by the

being generated is being used by the mafia to fund other illegal activities.

mafia to fund other illegal activities. A lot of countries have started taking

A lot of countries have started taking note. In fact, an article that I showed

note. In fact, an article that I showed you earlier talked about how the United

you earlier talked about how the United States and the UK governments are coming

States and the UK governments are coming together to combat ad fraud in 2019. So,

together to combat ad fraud in 2019. So, we should see things improve over time.

we should see things improve over time. Another reason that ad fraud continues

Another reason that ad fraud continues to exist is that most digital marketers

to exist is that most digital marketers are completely unaware of how the ad

are completely unaware of how the ad fraud economy really works. And I can

fraud economy really works. And I can tell you this sort of pure personal

tell you this sort of pure personal experience because I train a lot of

experience because I train a lot of digital marketers across the globe. and

digital marketers across the globe. and those who are aware are driven by

those who are aware are driven by misaligned incentives across the entire

misaligned incentives across the entire supply chain leading to inertia and

supply chain leading to inertia and passive treatment of the problem. For

passive treatment of the problem. For years in the digital advertising

years in the digital advertising ecosystem, brands have focused on

ecosystem, brands have focused on measuring the wrong metrics. Measuring

measuring the wrong metrics. Measuring clicks, impressions, clickthrough rates,

clicks, impressions, clickthrough rates, which are not really business metrics.

which are not really business metrics. Of late, this trend is changing and

Of late, this trend is changing and brands today are measuring sales,

brands today are measuring sales, conversions, and brand recall. But for a

conversions, and brand recall. But for a long time, employee incentives were

long time, employee incentives were linked to the amount of traffic they

linked to the amount of traffic they would get or the clickthrough rates they

would get or the clickthrough rates they would drive on their ads. Which is why

would drive on their ads. Which is why most of the digital marketers who were

most of the digital marketers who were aware of this didn't really want to take

aware of this didn't really want to take it up because they were still getting

it up because they were still getting their traffic. They were still getting

their traffic. They were still getting their incentives. However, this is

their incentives. However, this is changing as well and a lot of brands

changing as well and a lot of brands today are focusing more on metrics that

today are focusing more on metrics that impact the business like sales and brand

impact the business like sales and brand recall and incentives are being aligned

recall and incentives are being aligned to these business metrics as well. So,

to these business metrics as well. So, now that we've looked at why ad fraud

now that we've looked at why ad fraud exists in the first place, let's see how

exists in the first place, let's see how we can detect and prevent ad fraud. In

we can detect and prevent ad fraud. In the early days of ad fraud, detecting it

the early days of ad fraud, detecting it was much easier. All you needed to do

was much easier. All you needed to do was go to your Google Analytics reports

was go to your Google Analytics reports and look for traffic sources that had a

and look for traffic sources that had a time on site of 1 second or a bounce

time on site of 1 second or a bounce rate of 100%. And you would know that

rate of 100%. And you would know that those sources were driving bot traffic.

those sources were driving bot traffic. Of late though, bots have become much

Of late though, bots have become much much smarter. Today, you have bots that

much smarter. Today, you have bots that mimic human behavior on a page. They

mimic human behavior on a page. They scroll pages. They click around. They

scroll pages. They click around. They can sign up for email newsletters and

can sign up for email newsletters and they can even make calls. In fact, of

they can even make calls. In fact, of late, I had a client where we ran a

late, I had a client where we ran a massive campaign for them. They got a

massive campaign for them. They got a few hundred calls and a lot of their

few hundred calls and a lot of their calls, almost about 90% from one

calls, almost about 90% from one particular source, had a duration of

particular source, had a duration of just about a second. So the moment the

just about a second. So the moment the call was answered, the line immediately

call was answered, the line immediately got cut. So how do we combat fraudsters

got cut. So how do we combat fraudsters and bots that are becoming smarter and

and bots that are becoming smarter and smarter by the day? Well, here are a

smarter by the day? Well, here are a couple of things that as an advertiser

couple of things that as an advertiser you can do. First thing is stick to

you can do. First thing is stick to trusted ad networks and exchanges. Like

trusted ad networks and exchanges. Like I said, in the programmatic ecosystem,

I said, in the programmatic ecosystem, there are thousands of ad networks, ad

there are thousands of ad networks, ad exchanges. Stick to the ones that you

exchanges. Stick to the ones that you trust. Stick to the ones that are more

trust. Stick to the ones that are more credible. Take references from people

credible. Take references from people you know in the industry. See what's

you know in the industry. See what's worked and stick to the top ones. Avoid

worked and stick to the top ones. Avoid working with smaller exchanges and

working with smaller exchanges and networks that you're not really sure of

networks that you're not really sure of how they're getting their traffic. Next

how they're getting their traffic. Next is to monitor your campaigns closely

is to monitor your campaigns closely with a lot of advanced analytics tools.

with a lot of advanced analytics tools. That way you know if a certain traffic

That way you know if a certain traffic source is bots or real human beings.

source is bots or real human beings. Move to measuring more actionable

Move to measuring more actionable metrics like conversions and leads, not

metrics like conversions and leads, not just clicks or clickthrough rates.

just clicks or clickthrough rates. Because though bots may view ads, click

Because though bots may view ads, click on them, might even fill forms, they

on them, might even fill forms, they wouldn't really buy your product. So

wouldn't really buy your product. So look at the quality of conversions

look at the quality of conversions you're getting from different traffic

you're getting from different traffic sources and take action based on that.

sources and take action based on that. If you're doing digital advertising and

If you're doing digital advertising and programmatic advertising at scale, you

programmatic advertising at scale, you would need to use advanced ad fraud

would need to use advanced ad fraud verification tools like the IAS, White

verification tools like the IAS, White Ops or Pixelate. These would help you

Ops or Pixelate. These would help you figure out which ad networks and

figure out which ad networks and exchanges to work with and also detect

exchanges to work with and also detect if any of your traffic sources have been

if any of your traffic sources have been affected by bots. You can then pause

affected by bots. You can then pause those networks and prevent more money

those networks and prevent more money from going down the drain. Great guys,

from going down the drain. Great guys, so I hope you're much more informed on

so I hope you're much more informed on how ad fraud works, what you can do to

how ad fraud works, what you can do to detect and prevent it. In the next

detect and prevent it. In the next lesson, we'll talk about another digital

lesson, we'll talk about another digital advertising challenge, which is ad

advertising challenge, which is ad viewability. See you in that one.

viewability. See you in that one. Welcome to the lesson on viewability.

Welcome to the lesson on viewability. Let me explain the concept of

Let me explain the concept of viewability with an

viewability with an example. Let's say I loaded this

example. Let's say I loaded this publisher

publisher page, scrolled a little, found an

page, scrolled a little, found an article that I wanted to read, clicked

article that I wanted to read, clicked on that article and left the

on that article and left the page. Now on this page below where I

page. Now on this page below where I clicked on this article, there are

clicked on this article, there are multiple

multiple ads. This one for example. Now when this

ads. This one for example. Now when this advertiser looks at their ad reports,

advertiser looks at their ad reports, would this impression for the ad be

would this impression for the ad be counted? Think about it. What do you

counted? Think about it. What do you think? Would this impression be counted

think? Would this impression be counted even though it had never come into my

even though it had never come into my view? I loaded the page. I came here,

view? I loaded the page. I came here, clicked on article and left. This ad was

clicked on article and left. This ad was way below. Would the impression be

way below. Would the impression be counted? Well, the answer is yes. It

counted? Well, the answer is yes. It might sound ridiculous, but yes. All the

might sound ridiculous, but yes. All the ads on this page that were triggered the

ads on this page that were triggered the moment I loaded this page would have the

moment I loaded this page would have the impression counts go up by one. That's

impression counts go up by one. That's how impressions are measured in digital

how impressions are measured in digital advertising. So if you look at your

advertising. So if you look at your reports for digital ad and if you see

reports for digital ad and if you see 100,000 impressions, well that doesn't

100,000 impressions, well that doesn't mean that the ad even came into view. It

mean that the ad even came into view. It could very well be that the ad did not

could very well be that the ad did not come into view at all and the impression

come into view at all and the impression was still counted.

was still counted. In fact, a very interesting statistic

In fact, a very interesting statistic published by e-arketer and app nexus

published by e-arketer and app nexus recently states that about 46% of all

recently states that about 46% of all digital advertising is never seen.

digital advertising is never seen. That's massive and that's exactly why

That's massive and that's exactly why viewability of ads is a big pain point

viewability of ads is a big pain point for marketers. For a long time, we

for marketers. For a long time, we looked at our impression reports and a

looked at our impression reports and a lot of us thought that our ads were

lot of us thought that our ads were being shown that many times to people.

being shown that many times to people. Well, they were being served, yes. But

Well, they were being served, yes. But were they being seen? That we had no

were they being seen? That we had no clue. In order to make impression

clue. In order to make impression measurement better for marketers and

measurement better for marketers and advertisers, the digital advertising

advertisers, the digital advertising industry came up with its definitions

industry came up with its definitions for something called

for something called viewability. So when is an ad viewable

viewability. So when is an ad viewable or when would an impression be counted

or when would an impression be counted as a viewable impression? Well, there

as a viewable impression? Well, there are standard definitions for it. So for

are standard definitions for it. So for a banner ad, the ad is considered

a banner ad, the ad is considered viewable when at least 50% of the ads

viewable when at least 50% of the ads pixels are in view for at least 1

pixels are in view for at least 1 second. I'll repeat that at least 50% of

second. I'll repeat that at least 50% of the ads pixels or the ads area is in

the ads pixels or the ads area is in view for at least 1 second. When it's a

view for at least 1 second. When it's a video ad, the definition changes a

video ad, the definition changes a little bit. Here 50% of the video's

little bit. Here 50% of the video's pixels or the area needs to be in view

pixels or the area needs to be in view and playing for at least 2

and playing for at least 2 seconds. If these conditions are met,

seconds. If these conditions are met, the impression becomes a viewable

the impression becomes a viewable impression. So at least you know that

impression. So at least you know that your ads have been shown and this many

your ads have been shown and this many impressions have been delivered as per

impressions have been delivered as per these

these definitions. Let me give you an example

definitions. Let me give you an example of a viewability report from Google Ads.

of a viewability report from Google Ads. So, those of you who work on Google Ads

So, those of you who work on Google Ads or run Google Ads can go to your Google

or run Google Ads can go to your Google Ads dashboard, go to your display or

Ads dashboard, go to your display or video campaigns, modify your columns and

video campaigns, modify your columns and add these columns for viewable

add these columns for viewable impressions, non-viewable impressions,

impressions, non-viewable impressions, viewable rate, and viewable CPM. You

viewable rate, and viewable CPM. You look at what percentage of your ads

look at what percentage of your ads actually met the globally accepted

actually met the globally accepted definition of viewability that we just

definition of viewability that we just discussed. So if you look at my

discussed. So if you look at my campaigns here, I blurred out the

campaigns here, I blurred out the campaign names for client

campaign names for client confidentiality reasons. If you look at

confidentiality reasons. If you look at the first campaign, 60 million

the first campaign, 60 million impressions were delivered out of which

impressions were delivered out of which only 21 million met with the definition

only 21 million met with the definition of viewability. The rest did not.

of viewability. The rest did not. There's also a column for measurable

There's also a column for measurable impressions and non-measurable

impressions and non-measurable impressions.

impressions. So if 21 million impressions met the

So if 21 million impressions met the definition of viewability that means the

definition of viewability that means the balance which is 60 minus 21 which is

balance which is 60 minus 21 which is about 39 million impressions should have

about 39 million impressions should have been non-viewable. However this number

been non-viewable. However this number is only about 23 million. Why is that?

is only about 23 million. Why is that? That's because there are two more

That's because there are two more columns here. One which says measurable

columns here. One which says measurable impressions and one which says

impressions and one which says non-measurable impressions. Measurable

non-measurable impressions. Measurable impressions imply partner sites in this

impressions imply partner sites in this case on the Google Display Network where

case on the Google Display Network where they're open to having their viewability

they're open to having their viewability measured. About 15 million impressions

measured. About 15 million impressions were on sites where viewability could

were on sites where viewability could not even be measured. So out of the

not even be measured. So out of the measurable impressions which were 44

measurable impressions which were 44 million, 21 million were viewable and 23

million, 21 million were viewable and 23 million were non-viewable. You can also

million were non-viewable. You can also see what was the viewable rate. It says

see what was the viewable rate. It says 47%. That's because it takes the

47%. That's because it takes the viewable impressions as a percentage of

viewable impressions as a percentage of the measurable impressions. If you take

the measurable impressions. If you take the viewable impressions as a percentage

the viewable impressions as a percentage of the total impressions, this number

of the total impressions, this number would be even lower. So you can imagine

would be even lower. So you can imagine these are ads served on the Google

these are ads served on the Google display network through the Google Ads

display network through the Google Ads platform. And even here barely half the

platform. And even here barely half the impressions were actually viewed as per

impressions were actually viewed as per the definition of

the definition of viewability. If you look at the CPM you

viewability. If you look at the CPM you can see a difference in the CPM as well.

can see a difference in the CPM as well. The average CPM or the cost per thousand

The average CPM or the cost per thousand impressions was 28 in this case while

impressions was 28 in this case while the viewable CPM taking into account the

the viewable CPM taking into account the viewable

viewable impressions was 54. So that's a good

impressions was 54. So that's a good amount of money being spent on ads that

amount of money being spent on ads that are not even coming into the user's

are not even coming into the user's view. So again, for those of you who are

view. So again, for those of you who are running Google Ads campaigns or working

running Google Ads campaigns or working with Google Ads, I suggest you go and

with Google Ads, I suggest you go and test this out on your own campaigns and

test this out on your own campaigns and you'll see the numbers and some of you

you'll see the numbers and some of you don't be surprised at the amount of

don't be surprised at the amount of money you would spend on impressions

money you would spend on impressions that were never in view.

that were never in view. A very interesting resource that I

A very interesting resource that I wanted to share with you is this

wanted to share with you is this measuring ad viewability report

measuring ad viewability report published on the think with Google site.

published on the think with Google site. I'll share the link with you in the

I'll share the link with you in the resources to this lesson. It's a very

resources to this lesson. It's a very comprehensive resource on understanding

comprehensive resource on understanding viewability. It's got a very interactive

viewability. It's got a very interactive demo as well to check how viewability

demo as well to check how viewability works. So if you look at the demo, it

works. So if you look at the demo, it shows you viewability in action. So if I

shows you viewability in action. So if I scroll

scroll below it shows me a site with ads on it.

below it shows me a site with ads on it. So the moment the ad turns green it

So the moment the ad turns green it meets the definition of viewability. So

meets the definition of viewability. So as I

as I scroll you can see this timer that has

scroll you can see this timer that has come on top here. There are four ads on

come on top here. There are four ads on this page. This is the first banner ad

this page. This is the first banner ad that you see which was right above the

that you see which was right above the fold. So it says here if you're seeing

fold. So it says here if you're seeing green the ad is in view. A display ad is

green the ad is in view. A display ad is considered viewable if 50% of the ad's

considered viewable if 50% of the ad's pixels are in view for at least 1

pixels are in view for at least 1 second. So here we've been viewing this

second. So here we've been viewing this ad for the last 36 seconds and counting.

ad for the last 36 seconds and counting. You can see the timer here. It's running

You can see the timer here. It's running live and the ad is 100% in view. As I

live and the ad is 100% in view. As I scroll

below that's the second ad coming in view now. You can see that's ad two.

view now. You can see that's ad two. It's now 38% in view as you can see

It's now 38% in view as you can see there. So it's not yet viewable. The

there. So it's not yet viewable. The moment I scroll

moment I scroll further, it's now 74% in view for more

further, it's now 74% in view for more than 1 second, it now turned viewable.

than 1 second, it now turned viewable. Right? So this was the second ad. So it

Right? So this was the second ad. So it says the most viewable position is right

says the most viewable position is right above the fold, not at the top of the

above the fold, not at the top of the page. Think about it. That's a very

page. Think about it. That's a very interesting insight. When you load a

interesting insight. When you load a website, right at the top of the page,

website, right at the top of the page, which is this one, might not be the best

which is this one, might not be the best position because you might load the page

position because you might load the page and quickly scroll below.

and quickly scroll below. But this position which is just at the

But this position which is just at the fold is a position that would be

fold is a position that would be probably the most viewable as I scroll

probably the most viewable as I scroll below. So we've seen two banner ads so

below. So we've seen two banner ads so far and we've viewed both of

far and we've viewed both of them. Next this is another ad that's

them. Next this is another ad that's come to view. It says 13% in view. I

come to view. It says 13% in view. I scroll below it's now 28% in view 43%

scroll below it's now 28% in view 43% now. And now the moment it was more than

now. And now the moment it was more than 50% in view more for more than 1 second,

50% in view more for more than 1 second, it became

it became viewable. And as it says, you can look

viewable. And as it says, you can look at the insight here as well. It says

at the insight here as well. It says vertical units are the most viewable ad

vertical units are the most viewable ad sizes as they stay on the screen longer.

sizes as they stay on the screen longer. Then as we scroll below, there's a video

Then as we scroll below, there's a video now at the bottom. This is the video ad

now at the bottom. This is the video ad format which is now 10% in view. If I

format which is now 10% in view. If I quickly scroll past the

quickly scroll past the video, you see that I quickly scroll

video, you see that I quickly scroll past it because the time was less than 2

past it because the time was less than 2 seconds. Even though it was 100% in

seconds. Even though it was 100% in view, at some point, it did not count.

view, at some point, it did not count. So, I scroll back up again. Quickly

So, I scroll back up again. Quickly scroll

scroll past, you see it says 10% in view for

past, you see it says 10% in view for 0.1 seconds. If I scroll and scroll back

0.1 seconds. If I scroll and scroll back again, you see it says 7% in view for

again, you see it says 7% in view for 0.9 seconds until it hits the 2C counter

0.9 seconds until it hits the 2C counter for a video. The viewable impression

for a video. The viewable impression number will not go up. So now when I

number will not go up. So now when I scroll up, you can see the moment it hit

scroll up, you can see the moment it hit 2

seconds, it became viewable. Right? So as it says video ads are considered

as it says video ads are considered viewable if 50% of the video ad is in

viewable if 50% of the video ad is in view and playing for at least 2 seconds.

view and playing for at least 2 seconds. Right? So this is a great viewability

Right? So this is a great viewability demo tool. I suggest you guys go around

demo tool. I suggest you guys go around and play with it. That'll help you

and play with it. That'll help you understand viewability

understand viewability better. Apart from this realtime

better. Apart from this realtime viewability demo, there's also an

viewability demo, there's also an interesting section in this report which

interesting section in this report which talks about the state of ad

talks about the state of ad viewability. So they conducted research

viewability. So they conducted research using their measurement technology to

using their measurement technology to understand what drives viewability

understand what drives viewability around the world. And if you click on

around the world. And if you click on this, it will take you to this state of

this, it will take you to this state of ad viewability page where you can look

ad viewability page where you can look at

at viewability across any country that's

viewability across any country that's listed here. So if I wanted to look at

listed here. So if I wanted to look at the current viewability benchmarks in

the current viewability benchmarks in the United

the United States, it says for YouTube ads is

States, it says for YouTube ads is 94%. Web and app video ads is 66% and

94%. Web and app video ads is 66% and display ads the benchmark is 49%. So if

display ads the benchmark is 49%. So if you're getting if you're in the United

you're getting if you're in the United States and your display ads have a

States and your display ads have a viewability of 49%. You know you're at

viewability of 49%. You know you're at the benchmark because that's what is the

the benchmark because that's what is the current state in the United States.

current state in the United States. Likewise, let's say you're in Europe and

Likewise, let's say you're in Europe and you want to check for let's say the

UK. You can see here it says 94% on YouTube, 50% for display and 67% for web

YouTube, 50% for display and 67% for web and app video. Let's say you're in the

and app video. Let's say you're in the Middle East. So you could do the same

Middle East. So you could do the same thing for three countries available

thing for three countries available here. So in the UAE you can look at your

here. So in the UAE you can look at your benchmarks. If you're in AP pack again

benchmarks. If you're in AP pack again you can look at let's say India and you

you can look at let's say India and you can see what the benchmarks are here.

can see what the benchmarks are here. You can

You can also look at what categories have the

also look at what categories have the highest viewability rates. So it says

highest viewability rates. So it says that categories that create captivating

that categories that create captivating content have higher

content have higher viewability. You can look at which

viewability. You can look at which categories have the highest display and

categories have the highest display and ad viewability rates.

ad viewability rates. And it also tells

And it also tells you what you can do to create more

you what you can do to create more viewable ads. Talks about optimizing for

viewable ads. Talks about optimizing for mobile

mobile devices

devices using ad sizes that have highest

using ad sizes that have highest viewability. So you can take a look at

viewability. So you can take a look at which ad sizes have the highest

which ad sizes have the highest viewability rates for video as well as

viewability rates for video as well as for display and focus more on those

for display and focus more on those sizes. And it also tells you or gives

sizes. And it also tells you or gives you an interesting insight on ads being

you an interesting insight on ads being viewable below the fold as well. So this

viewable below the fold as well. So this is the fold. You can see the screen fold

is the fold. You can see the screen fold here. Just below the fold is where a

here. Just below the fold is where a good chunk of inventory is viewable as

good chunk of inventory is viewable as well. So it's not that you'd want to

well. So it's not that you'd want to pick only above the fold inventory. You

pick only above the fold inventory. You could even experiment with below the

could even experiment with below the fold inventory because even below the

fold inventory because even below the fold inventory has a viewability rate of

fold inventory has a viewability rate of about

about 47%. Great guys. So that's an awesome

47%. Great guys. So that's an awesome resource on viewability. Go ahead and

resource on viewability. Go ahead and explore it. I will see you guys in the

explore it. I will see you guys in the next lesson. Welcome to the lesson on

next lesson. Welcome to the lesson on deal ID. So what is a deal ID? A deal ID

deal ID. So what is a deal ID? A deal ID or a deal identifier is the unique

or a deal identifier is the unique number of an automated ad buy in the

number of an automated ad buy in the programmatic advertising ecosystem. It's

programmatic advertising ecosystem. It's a unique code that matches buyers with

a unique code that matches buyers with sellers individually based on a variety

sellers individually based on a variety of criteria that they've negotiated

of criteria that they've negotiated beforehand. The criteria could include

beforehand. The criteria could include the minimum price the advertisers

the minimum price the advertisers allowed to bid, type of ad units they

allowed to bid, type of ad units they bought, which section of the site the

bought, which section of the site the ads would show on amongst a bunch of

ads would show on amongst a bunch of other

other things. The reason we are discussing

things. The reason we are discussing deal ID here is because it is used in

deal ID here is because it is used in three types of programmatic advertising.

three types of programmatic advertising. It's used in private auctions, preferred

It's used in private auctions, preferred deals, and programmatic guaranteed deals

deals, and programmatic guaranteed deals as well.

as well. In the next section when we talk about

In the next section when we talk about the different types of programmatic

the different types of programmatic advertising, you'll understand how this

advertising, you'll understand how this deal ID fits into the scheme of things.

deal ID fits into the scheme of things. So that's in a nutshell what deal ID is.

So that's in a nutshell what deal ID is. Thank you and I will see you in the next

Thank you and I will see you in the next lesson. Hello and welcome back. Let's

lesson. Hello and welcome back. Let's dive deeper into programmatic

dive deeper into programmatic advertising. Before we go further, this

advertising. Before we go further, this is what we've covered so far. Just a

is what we've covered so far. Just a quick recap. We began with understanding

quick recap. We began with understanding what programmatic advertising is. We

what programmatic advertising is. We looked at the fundamentals of the risk

looked at the fundamentals of the risk advertising option, how risk advertising

advertising option, how risk advertising has evolved over time. We then went

has evolved over time. We then went through the entire programmatic

through the entire programmatic advertising ecosystem, understood each

advertising ecosystem, understood each component. We looked at DSPs, SSPs, ad

component. We looked at DSPs, SSPs, ad networks, and ad exchanges and learned

networks, and ad exchanges and learned what their role is in the ecosystem. We

what their role is in the ecosystem. We then understood various programmatic

then understood various programmatic advertising terminology. We looked at

advertising terminology. We looked at frequency cap above the fold and below

frequency cap above the fold and below the fold inventory, run off site and run

the fold inventory, run off site and run off network types of ad buying. We also

off network types of ad buying. We also looked at important concepts of brand

looked at important concepts of brand safety, ad fraud and viewability as

safety, ad fraud and viewability as well. In this lesson, we look at the

well. In this lesson, we look at the four different types of programmatic

four different types of programmatic advertising. The first type is something

advertising. The first type is something called the open auction. It's also

called the open auction. It's also sometimes called RDB, which is realtime

sometimes called RDB, which is realtime bidding. The second type is a private

bidding. The second type is a private auction sometimes called a PMP which is

auction sometimes called a PMP which is a private marketplace or an IOA which is

a private marketplace or an IOA which is an invitationon auction. So I'll repeat

an invitationon auction. So I'll repeat that. PMP is private marketplace and IOA

that. PMP is private marketplace and IOA is invitationonly auction. That's a few

is invitationonly auction. That's a few more threeletter acronyms or TLAs for

more threeletter acronyms or TLAs for you to remember. Then we've got

you to remember. Then we've got preferred deals, sometimes just called

preferred deals, sometimes just called PD or sometimes also referred to as UFR,

PD or sometimes also referred to as UFR, which is unreserved fixed rate. And then

which is unreserved fixed rate. And then we've got programmatic guarantee deals,

we've got programmatic guarantee deals, which most of time are just referred to

which most of time are just referred to as PG deals. So let's look at each one

as PG deals. So let's look at each one of these, understand what they are. The

of these, understand what they are. The first one is the open auction or RTB,

first one is the open auction or RTB, which is realtime bidding. We've already

which is realtime bidding. We've already discussed how digital advertising

discussed how digital advertising auctions work in an earlier lesson. What

auctions work in an earlier lesson. What happens in this case is a user visits a

happens in this case is a user visits a site. The website has inventory

site. The website has inventory available. The website then communicates

available. The website then communicates with its SSP or its supply side

with its SSP or its supply side platform. So I want you guys to remember

platform. So I want you guys to remember that flowchart of the programmatic

that flowchart of the programmatic ecosystem that we talked about. So

ecosystem that we talked about. So publishers get in touch with their

publishers get in touch with their supply side platform. The supply side

supply side platform. The supply side platform then passes on the information

platform then passes on the information through the exchange to the demand side

through the exchange to the demand side platforms. On individual demand side

platforms. On individual demand side platforms, advertisers then place their

platforms, advertisers then place their bids. The auction takes place and the

bids. The auction takes place and the highest bid wins the impression. This

highest bid wins the impression. This process is called realtime bidding

process is called realtime bidding because every time you refresh a

because every time you refresh a website, the auction happens. This

website, the auction happens. This entire process takes place. Like I've

entire process takes place. Like I've told you earlier, the process takes

told you earlier, the process takes place really fast at a speed faster than

place really fast at a speed faster than the time you take to blink your eye and

the time you take to blink your eye and the right impressions are delivered to

the right impressions are delivered to the user who's loaded the site. So

the user who's loaded the site. So that's what an open auction is. It's

that's what an open auction is. It's very similar to the auction that we

very similar to the auction that we discussed earlier in this

discussed earlier in this course. Next is a private auction or a

course. Next is a private auction or a private marketplace or PMP. What happens

private marketplace or PMP. What happens here is the publisher instead of giving

here is the publisher instead of giving all their inventory out into the open

all their inventory out into the open auction hosts a private auction where

auction hosts a private auction where only certain players are invited to bid.

only certain players are invited to bid. So let's say the publisher has 10

So let's say the publisher has 10 premium advertisers. It could invite

premium advertisers. It could invite those 10 premium advertisers into a

those 10 premium advertisers into a private auction and tell them that well

private auction and tell them that well this is inventory that only 10 of you

this is inventory that only 10 of you can bid on. You guys can bid on it. The

can bid on. You guys can bid on it. The auction takes place. Whoever wins the

auction takes place. Whoever wins the auction will get their ad to show. Since

auction will get their ad to show. Since it's a private auction, the publisher

it's a private auction, the publisher here gets to offer premium inventory to

here gets to offer premium inventory to its select premium advertisers and also

its select premium advertisers and also charge them a slightly higher price. How

charge them a slightly higher price. How do the systems know which advertisers

do the systems know which advertisers are eligible to take part in the private

are eligible to take part in the private auction? Well, this happens through the

auction? Well, this happens through the deal ID. So, the deal ID that we talked

deal ID. So, the deal ID that we talked about earlier is given by the publisher

about earlier is given by the publisher to those select advertisers. They would

to those select advertisers. They would enter the deal ID into their DSPs. The

enter the deal ID into their DSPs. The deal ID would then identify the deal and

deal ID would then identify the deal and help them bid in that invitation only

help them bid in that invitation only auction. Right? So that's a private

auction. Right? So that's a private marketplace or a private auction. As of

marketplace or a private auction. As of now, I'm just giving you the

now, I'm just giving you the fundamentals of how it works. In future

fundamentals of how it works. In future lessons, we'll talk about the pros and

lessons, we'll talk about the pros and cons of each one of these from an

cons of each one of these from an advertiser perspective. Right? For now,

advertiser perspective. Right? For now, let's just stick to understanding the

let's just stick to understanding the concepts of what these are and how they

concepts of what these are and how they work.

work. So now that we looked at private

So now that we looked at private auctions, let's see how they compare

auctions, let's see how they compare with the third type of programmatic

with the third type of programmatic advertising which is a preferred deal.

advertising which is a preferred deal. So the private auction as we discussed

So the private auction as we discussed is a publisher inviting a select group

is a publisher inviting a select group of advertisers into an invitationonly

of advertisers into an invitationonly auction where they bid on that inventory

auction where they bid on that inventory and whoever wins the auction gets their

and whoever wins the auction gets their ad to show. In a preferred deal, which

ad to show. In a preferred deal, which is the third type of programmatic

is the third type of programmatic advertising, what happens is the

advertising, what happens is the publisher strikes a deal with just one

publisher strikes a deal with just one advertiser here as against a private

advertiser here as against a private auction where they invite multiple

auction where they invite multiple advertisers. Here the deal is struck

advertisers. Here the deal is struck with just one

with just one advertiser. So this is a onetoone deal

advertiser. So this is a onetoone deal with no auction happening. A fixed price

with no auction happening. A fixed price for the inventory is set. So let's say

for the inventory is set. So let's say they set a fixed $5 CPM. The advertiser

they set a fixed $5 CPM. The advertiser is then issued a deal ID. The advertiser

is then issued a deal ID. The advertiser can go to their DSP. Enter the deal ID

can go to their DSP. Enter the deal ID and buy the inventory for a fixed $5 CPM

and buy the inventory for a fixed $5 CPM without any competition in an auction.

without any competition in an auction. The only thing to note here is that the

The only thing to note here is that the inventory is not guaranteed. The price

inventory is not guaranteed. The price is guaranteed, the volume is not. So

is guaranteed, the volume is not. So though the advertiser has access to the

though the advertiser has access to the inventory at a $5 CPM, there is no

inventory at a $5 CPM, there is no guarantee from either side. The

guarantee from either side. The advertiser is not guaranteeing to buy a

advertiser is not guaranteeing to buy a fixed set or number of impressions. The

fixed set or number of impressions. The publisher too has not guaranteed that

publisher too has not guaranteed that they would receive a fixed number of

they would receive a fixed number of impressions which is why it's sometimes

impressions which is why it's sometimes called a UFR or an unreserved fixed

called a UFR or an unreserved fixed rate. So the rate is fixed but the

rate. So the rate is fixed but the inventory is not reserved or guaranteed.

inventory is not reserved or guaranteed. Which brings us to the fourth type of

Which brings us to the fourth type of programmatic advertising which is a PG

programmatic advertising which is a PG deal or a programmatic guaranteed deal.

deal or a programmatic guaranteed deal. In this case, the publisher and the

In this case, the publisher and the advertiser strike a onetoone deal. And

advertiser strike a onetoone deal. And here both the price and the volume are

here both the price and the volume are fixed. So they strike a deal saying the

fixed. So they strike a deal saying the advertiser would buy 1 million

advertiser would buy 1 million impressions for the publisher in this

impressions for the publisher in this time period at a fixed rate of let's say

time period at a fixed rate of let's say a $15 CPM. Again, the publisher creates

a $15 CPM. Again, the publisher creates the deal, gives the deal ID to the

the deal, gives the deal ID to the advertiser. The advertiser will put this

advertiser. The advertiser will put this deal ID into their demand side platform

deal ID into their demand side platform and have access to the inventory which

and have access to the inventory which is both a fixed price and volume. Right?

is both a fixed price and volume. Right? So let's summarize what we've just seen.

So let's summarize what we've just seen. Let's compare the open auction or

Let's compare the open auction or realtime bidding versus private auction

realtime bidding versus private auction or a private marketplace versus a

or a private marketplace versus a preferred deal versus a programmatic

preferred deal versus a programmatic guaranteed deal. So in the open auction

guaranteed deal. So in the open auction you have hundreds of buyers competing at

you have hundreds of buyers competing at an auction the dynamics of which we

an auction the dynamics of which we discussed in earlier lesson. The

discussed in earlier lesson. The auctions are second price auctions. The

auctions are second price auctions. The winning bidder would get their ad to

winning bidder would get their ad to show. Private auctions are invitationon

show. Private auctions are invitationon auctions where a certain number of

auctions where a certain number of advertisers are invited by a publisher

advertisers are invited by a publisher to have access to their inventory. The

to have access to their inventory. The price is negotiated. There's a minimum

price is negotiated. There's a minimum price or what we call a floor price

price or what we call a floor price that's decided. So the publisher would

that's decided. So the publisher would tell all advertisers that the floor

tell all advertisers that the floor price for the auction is $3 for CPM.

price for the auction is $3 for CPM. Each advertiser would bid above that.

Each advertiser would bid above that. The auction would take place the same

The auction would take place the same second price auction and the winning

second price auction and the winning bidder would get their ad to show.

bidder would get their ad to show. Volumes here are non-g guaranteed. With

Volumes here are non-g guaranteed. With preferred deals, there is no auction.

preferred deals, there is no auction. It's a one-on-one deal struck between

It's a one-on-one deal struck between the publisher and the advertiser where

the publisher and the advertiser where the price is negotiated and fixed, but

the price is negotiated and fixed, but the volume is non-g guaranteed. The last

the volume is non-g guaranteed. The last one which is programmatic guaranteed

one which is programmatic guaranteed deals. Again, it's a one-on-one deal

deals. Again, it's a one-on-one deal between the publisher and the advertiser

between the publisher and the advertiser where both the price is fixed and the

where both the price is fixed and the volume is reserved or guaranteed. The

volume is reserved or guaranteed. The last three are deal ID based. In all the

last three are deal ID based. In all the last three types, the publisher would

last three types, the publisher would give a deal ID or a deal identifier to

give a deal ID or a deal identifier to the advertiser which they can then enter

the advertiser which they can then enter into their DSP and buy the inventory.

into their DSP and buy the inventory. Right? Great guys. So, that's the four

Right? Great guys. So, that's the four different types of programmatic

different types of programmatic advertising. I hope you enjoyed learning

advertising. I hope you enjoyed learning about them. In the following lessons, I

about them. In the following lessons, I will take you through, like I said, the

will take you through, like I said, the pros and cons of each type and as an

pros and cons of each type and as an advertiser, when should you pick what

advertiser, when should you pick what type. See you in the next lesson.

type. See you in the next lesson. Welcome back. In the previous lesson, we

Welcome back. In the previous lesson, we talked about the different types of

talked about the different types of programmatic advertising. Now, before we

programmatic advertising. Now, before we go ahead and understand the pros and

go ahead and understand the pros and cons of each, it's important for you to

cons of each, it's important for you to know the concept of something called the

know the concept of something called the publisher waterfall. The publisher

publisher waterfall. The publisher waterfall is a term for how publishers

waterfall is a term for how publishers prioritize their ad inventory. Before we

prioritize their ad inventory. Before we understand that prioritization model,

understand that prioritization model, it's important for you to know what

it's important for you to know what premium inventory is. Now, premium

premium inventory is. Now, premium inventory and nonpremium inventory are

inventory and nonpremium inventory are terms that you'd keep hearing in the

terms that you'd keep hearing in the programmatic advertising space. So, when

programmatic advertising space. So, when publishers mention the term premium

publishers mention the term premium inventory, what does that really mean?

inventory, what does that really mean? Well, so premium inventory is basically

Well, so premium inventory is basically publisher inventory that would drive

publisher inventory that would drive high impact and be extremely valuable to

high impact and be extremely valuable to advertisers. Common examples of this

advertisers. Common examples of this premium inventory would be roadblocks,

premium inventory would be roadblocks, mast heads, homepage takeovers, and

mast heads, homepage takeovers, and other similar high impact units. Now,

other similar high impact units. Now, some of you might not be familiar with

some of you might not be familiar with what these roadblocks, mast heads, and

what these roadblocks, mast heads, and homepage takeovers are. So, let me show

homepage takeovers are. So, let me show you some examples of these. The best

you some examples of these. The best example of a master would be the YouTube

example of a master would be the YouTube master. So if you open YouTube either on

master. So if you open YouTube either on a desktop or on your mobile devices and

a desktop or on your mobile devices and if you're on a country where YouTube

if you're on a country where YouTube sells its master head inventory, you'll

sells its master head inventory, you'll see an ad here which would remain the

see an ad here which would remain the same for a 24-hour period. So this ad

same for a 24-hour period. So this ad unit is sold to just one brand for a

unit is sold to just one brand for a period of 24 hours, generally from

period of 24 hours, generally from midnight to midnight. Now this is truly

midnight to midnight. Now this is truly high impact inventory. The reach would

high impact inventory. The reach would vary from country to country, but in

vary from country to country, but in India where I live, the reach is about

India where I live, the reach is about 100 million people in a day and it's

100 million people in a day and it's about 1 billion impressions. That's how

about 1 billion impressions. That's how big it is and that's why it's called a

big it is and that's why it's called a high impact ad unit. So this is an

high impact ad unit. So this is an example of premium inventory. So let's

example of premium inventory. So let's take another example. Let's go to this

take another example. Let's go to this website called Times of

website called Times of India. Now before the site loads, you

India. Now before the site loads, you see this ad here. It says

see this ad here. It says timesofindia.com will load in a few

timesofindia.com will load in a few seconds. This ad that you see before a

seconds. This ad that you see before a site loads is something called a

site loads is something called a roadblock. It is high impact again

roadblock. It is high impact again because it's something a user would

because it's something a user would definitely see before they move on to

definitely see before they move on to site. And this ad that you see on the

site. And this ad that you see on the screen now is what you call a homepage

screen now is what you call a homepage takeover. You'd see the entire homepage

takeover. You'd see the entire homepage taken over by the same brand. So those

taken over by the same brand. So those were some examples of roadblocks, mast

were some examples of roadblocks, mast heads, and homepage takeovers. So now

heads, and homepage takeovers. So now you know what these are and why they're

you know what these are and why they're called high impact ad units because they

called high impact ad units because they give advertisers massive reach and

give advertisers massive reach and visibility. Now that you know what

visibility. Now that you know what premium inventory is, let's move on to

premium inventory is, let's move on to understand what we called earlier the

understand what we called earlier the publisher waterfall. It's also sometimes

publisher waterfall. It's also sometimes called the daisy chain. It's nothing but

called the daisy chain. It's nothing but the way in which publishers prioritize

the way in which publishers prioritize their ad inventory. An ad server, for

their ad inventory. An ad server, for those of you who are not familiar, is

those of you who are not familiar, is just a software that helps publishers

just a software that helps publishers prioritize their inventory, manage ads

prioritize their inventory, manage ads on their websites, as well as track the

on their websites, as well as track the ad

ad performance. So when you load a

performance. So when you load a publisher website, the ad server would

publisher website, the ad server would first look for any direct deals that

first look for any direct deals that have been done between the publisher and

have been done between the publisher and any advertiser. A direct deal are deals

any advertiser. A direct deal are deals that are done offline without going

that are done offline without going through any programmatic advertising

through any programmatic advertising platforms. This is the old way of

platforms. This is the old way of digital advertising that we talked about

digital advertising that we talked about in an earlier lesson where advertisers

in an earlier lesson where advertisers and publishers close the deal offline

and publishers close the deal offline and everything is done without really

and everything is done without really using any programmatic platforms. The

using any programmatic platforms. The reason publishers continue to do this is

reason publishers continue to do this is because they can charge a lot more on

because they can charge a lot more on inventory sold directly which is why

inventory sold directly which is why this is given the first priority. Always

this is given the first priority. Always remember this process tries to ensure

remember this process tries to ensure that publishers make the most money from

that publishers make the most money from their digital assets.

their digital assets. If there are direct deals available,

If there are direct deals available, then the inventory that was promised to

then the inventory that was promised to the direct deal is given away. Next, the

the direct deal is given away. Next, the ad server checks if there were any

ad server checks if there were any programmatic guaranteed deals. We talked

programmatic guaranteed deals. We talked about programmatic guaranteed in the

about programmatic guaranteed in the previous lesson. This is basically a

previous lesson. This is basically a deal that is struck offline, but the ads

deal that is struck offline, but the ads are delivered through the programmatic

are delivered through the programmatic ecosystem. The inventory here is

ecosystem. The inventory here is guaranteed and the price is fixed. Since

guaranteed and the price is fixed. Since the publisher can sell a large volume of

the publisher can sell a large volume of inventory at a predefined price, this is

inventory at a predefined price, this is a second priority for them. Water

a second priority for them. Water inventory has been committed to a PG

inventory has been committed to a PG deal is given away here. Next, the ad

deal is given away here. Next, the ad server checks if there are any preferred

server checks if there are any preferred deals that have been done. Preferred

deals that have been done. Preferred deals, like we discussed in the previous

deals, like we discussed in the previous lesson, are deals where the advertiser

lesson, are deals where the advertiser and the publisher negotiate a fixed

and the publisher negotiate a fixed price but do not guarantee each other on

price but do not guarantee each other on the volume that would be bought or sold.

the volume that would be bought or sold. Since the publisher does not have any

Since the publisher does not have any guarantee on the volume here, this is

guarantee on the volume here, this is given priority only after direct deals

given priority only after direct deals and programmatic guaranteed deals. So

and programmatic guaranteed deals. So advertisers who have a preferred deal

advertisers who have a preferred deal would now have access to inventory that

would now have access to inventory that has not already been consumed by the

has not already been consumed by the direct deal or with the programmatic

direct deal or with the programmatic guaranteed deal. Once the preferred

guaranteed deal. Once the preferred deals in the system, if there were any

deals in the system, if there were any are executed, the ad server would then

are executed, the ad server would then check for private auctions. So the

check for private auctions. So the inventory that has not been sold yet is

inventory that has not been sold yet is then given out to the private auction

then given out to the private auction where a certain set of advertisers who

where a certain set of advertisers who already struck a deal with the publisher

already struck a deal with the publisher now bid and the winning bidder then gets

now bid and the winning bidder then gets their ad to show. After all this is

their ad to show. After all this is done, whatever inventory is left is then

done, whatever inventory is left is then passed on to the open auction. So the

passed on to the open auction. So the open auctions you must remember almost

open auctions you must remember almost always get what we call remnant

always get what we call remnant inventory or what most publishers prefer

inventory or what most publishers prefer calling nonpremium because they don't

calling nonpremium because they don't like using the word remnant. So you'd

like using the word remnant. So you'd see both these terms being used in the

see both these terms being used in the industry. So either non-premium

industry. So either non-premium inventory or remnant inventory is what

inventory or remnant inventory is what is available to the open auction. So

is available to the open auction. So this process is called the publisher

this process is called the publisher waterfall. And it's important for you to

waterfall. And it's important for you to keep these in mind because in the next

keep these in mind because in the next lessons when we talk about the pros and

lessons when we talk about the pros and cons of the different types of

cons of the different types of programmatic advertising, what you've

programmatic advertising, what you've learned in this lesson will help you.

learned in this lesson will help you. Now, this entire process takes place in

Now, this entire process takes place in just about 200 milliseconds. It takes

just about 200 milliseconds. It takes you 300 milliseconds to blink your eye

you 300 milliseconds to blink your eye through a time period faster than the

through a time period faster than the time it takes you to blink your eye. The

time it takes you to blink your eye. The publisher ad server completes this

publisher ad server completes this entire process. It first looks for

entire process. It first looks for direct deals, gives the committed

direct deals, gives the committed inventory there, then checks for PG

inventory there, then checks for PG deals, then preferred deals, then

deals, then preferred deals, then private auctions, and finally the open

private auctions, and finally the open auction. Today, some publishers also use

auction. Today, some publishers also use another process to have their ad

another process to have their ad inventory sold, which is something

inventory sold, which is something called header bidding. In header

called header bidding. In header bidding, instead of the inventory being

bidding, instead of the inventory being given away step by step like you see

given away step by step like you see here, it is done simultaneously through

here, it is done simultaneously through a tech heavy process. The concept of

a tech heavy process. The concept of header bidding is beyond the scope of

header bidding is beyond the scope of this course and as an advertiser or a

this course and as an advertiser or a marketer, you wouldn't really need to

marketer, you wouldn't really need to know too much about it. But if you're

know too much about it. But if you're really interested, I'd suggest looking

really interested, I'd suggest looking up Google or YouTube for it. Trust the

up Google or YouTube for it. Trust the concept of the publisher waterfall. Keep

concept of the publisher waterfall. Keep this in mind for the next lesson and

this in mind for the next lesson and I'll see you there. Welcome to this

I'll see you there. Welcome to this lesson on the pros and cons of the open

lesson on the pros and cons of the open auction. Before we move further into the

auction. Before we move further into the lesson, a quick recap of what an open

lesson, a quick recap of what an open auction is. Like we've discussed

auction is. Like we've discussed earlier, an open auction is that

earlier, an open auction is that realtime bidding process where you have

realtime bidding process where you have an auction with multiple publishers,

an auction with multiple publishers, multiple advertisers bidding on the ad

multiple advertisers bidding on the ad inventory. It's a second price auction

inventory. It's a second price auction and the winning bidder would have their

and the winning bidder would have their ad displayed. We also saw in the

ad displayed. We also saw in the previous lesson on the publisher

previous lesson on the publisher waterfall that open auctions are the

waterfall that open auctions are the last priority when it comes to publisher

last priority when it comes to publisher ad servers. So let's look at the

ad servers. So let's look at the advantages of the open auction. The

advantages of the open auction. The first one is setting up an open auction

first one is setting up an open auction is much easier compared to the other

is much easier compared to the other types of programmatic advertising. You

types of programmatic advertising. You don't really need to get in touch with a

don't really need to get in touch with a publisher. You don't have to strike a

publisher. You don't have to strike a deal. You can just head to your DSP,

deal. You can just head to your DSP, create a new campaign just like you

create a new campaign just like you would do on, let's say, the Google Ads

would do on, let's say, the Google Ads platform, set your targeting, upload

platform, set your targeting, upload your creatives, and you could be up and

your creatives, and you could be up and running in no time. Unlike other types

running in no time. Unlike other types of programmatic advertising which have

of programmatic advertising which have some level of human negotiations

some level of human negotiations involved, open auctions are completely

involved, open auctions are completely driven by the system. Next is with open

driven by the system. Next is with open auctions, you've got multiple powerful

auctions, you've got multiple powerful targeting options. So for those of you

targeting options. So for those of you who are familiar with Google ads, you

who are familiar with Google ads, you have multiple targeting options there.

have multiple targeting options there. You can target by geography, by age, by

You can target by geography, by age, by gender. You have something called

gender. You have something called inmarket audiences. You've got affinity

inmarket audiences. You've got affinity audiences. You've got custom intent and

audiences. You've got custom intent and custom affinity audiences. With

custom affinity audiences. With programmatic platforms like Doubleclick,

programmatic platforms like Doubleclick, you have all these with access to a lot

you have all these with access to a lot more options. You have access to third

more options. You have access to third party data that we talked about in an

party data that we talked about in an earlier lesson. You can now target

earlier lesson. You can now target audiences based on data available in

audiences based on data available in these third party data sets which you

these third party data sets which you can't do with standard display

can't do with standard display advertising. You can reach audiences

advertising. You can reach audiences irrespective of the site they're on. So

irrespective of the site they're on. So let's say you're a real estate company

let's say you're a real estate company and you want to go after people who are

and you want to go after people who are looking to buy a home. The system would

looking to buy a home. The system would automatically find those people and show

automatically find those people and show your ads to them irrespective of the

your ads to them irrespective of the site they're on. Right? So you get to be

site they're on. Right? So you get to be in front of your audiences wherever they

in front of your audiences wherever they are on the internet and you don't have

are on the internet and you don't have to worry about choosing specific

to worry about choosing specific placements. So these are some advantages

placements. So these are some advantages of the open auction. Coming to the

of the open auction. Coming to the disadvantages, the biggest disadvantage

disadvantages, the biggest disadvantage of open auction is that you only get

of open auction is that you only get access to remnant or nonpremium

access to remnant or nonpremium inventory. We talked about this when we

inventory. We talked about this when we discussed the publisher waterfall. We

discussed the publisher waterfall. We said that publisher ad servers

said that publisher ad servers prioritize open auctions last. So the

prioritize open auctions last. So the inventory that you have here is what's

inventory that you have here is what's in reality left over after all the other

in reality left over after all the other deals have been completed. Open auctions

deals have been completed. Open auctions are most prone to ad fraud. We talked

are most prone to ad fraud. We talked about ad fraud in detail in an earlier

about ad fraud in detail in an earlier lesson. And we also said that since in

lesson. And we also said that since in the open auctions you have thousands of

the open auctions you have thousands of ad networks ad exchanges and some of

ad networks ad exchanges and some of them might not be reliable or have

them might not be reliable or have stringent enough standards for their

stringent enough standards for their publisher partners. the chances of ad

publisher partners. the chances of ad fraud happening in the open auction is

fraud happening in the open auction is much much higher. Brand safety is also a

much much higher. Brand safety is also a concern here. We talked about brand

concern here. We talked about brand safety in an earlier lesson as well.

safety in an earlier lesson as well. Since in the open auction your ads are

Since in the open auction your ads are going to show to your audience

going to show to your audience irrespective of the site they're on. It

irrespective of the site they're on. It could also potentially show in cotton

could also potentially show in cotton environments that your brand does not

environments that your brand does not want to be associated with. And there's

want to be associated with. And there's also a lack of transparency again

also a lack of transparency again because there are way too many players

because there are way too many players in the ecosystem and it's completely

in the ecosystem and it's completely unregulated. Transparency in pricing is

unregulated. Transparency in pricing is a problem. You would never know what the

a problem. You would never know what the actual price of the inventory really was

actual price of the inventory really was and you wouldn't even know what kind of

and you wouldn't even know what kind of markup you've been charged. So these are

markup you've been charged. So these are some of the disadvantages of open

some of the disadvantages of open auctions. Coming to when you should and

auctions. Coming to when you should and shouldn't use open auctions. Here are

shouldn't use open auctions. Here are some scenarios where open auctions would

some scenarios where open auctions would work. The first is when you're currently

work. The first is when you're currently doing ads on the Google display network

doing ads on the Google display network through Google ads and you want to

through Google ads and you want to access a lot more inventory than what's

access a lot more inventory than what's available there, you could choose the

available there, you could choose the open auction type of programmatic

open auction type of programmatic advertising. Next, if you want access to

advertising. Next, if you want access to more powerful targeting, if you want

more powerful targeting, if you want access to all those third party data

access to all those third party data sets that are available on the

sets that are available on the programmatic platforms, you could use

programmatic platforms, you could use open auctions as well. And ideally you

open auctions as well. And ideally you would use open auctions only when you

would use open auctions only when you have adequate ad fraud detection and

have adequate ad fraud detection and brand safety measures in place because

brand safety measures in place because we already saw one of the biggest

we already saw one of the biggest disadvantages of open auctions is that

disadvantages of open auctions is that the chance of ad fraud and brand safety

the chance of ad fraud and brand safety issues happening there is much higher.

issues happening there is much higher. Where the open auction would not work is

Where the open auction would not work is one when you want more premium

one when you want more premium inventory. Let's say you want to target

inventory. Let's say you want to target a homepage ad unit or you are looking

a homepage ad unit or you are looking for a homepage takeover math roadblocks.

for a homepage takeover math roadblocks. All this inventory you would almost

All this inventory you would almost never get through an open auction. What

never get through an open auction. What you get in the open auction is most

you get in the open auction is most often inventory that's on inner pages of

often inventory that's on inner pages of a publisher site. Inventory that's way

a publisher site. Inventory that's way below the fold for example. The second

below the fold for example. The second thing is like I said earlier if you

thing is like I said earlier if you don't have strong ad fraud and brand

don't have strong ad fraud and brand safety mechanisms in place the open

safety mechanisms in place the open auction is something you'd try and stay

auction is something you'd try and stay away from.

away from. Great. So that's the end of this lesson.

Great. So that's the end of this lesson. You now know the advantages and the

You now know the advantages and the disadvantages of the open auction type

disadvantages of the open auction type of programmatic advertising. You also

of programmatic advertising. You also know when you would choose to use it. In

know when you would choose to use it. In the next lesson, we'll talk about

the next lesson, we'll talk about private auctions. See you in that part.

private auctions. See you in that part. Hello and welcome to this lesson on the

Hello and welcome to this lesson on the pros and cons of private auctions.

pros and cons of private auctions. Before we move further, a quick recap of

Before we move further, a quick recap of what private auctions are. Like we

what private auctions are. Like we discussed earlier, you have a few select

discussed earlier, you have a few select advertisers who a certain publisher has

advertisers who a certain publisher has struck a deal with where before the

struck a deal with where before the inventory is opened up to the open

inventory is opened up to the open auction. These select advertisers can

auction. These select advertisers can bid on it in a private auction, the

bid on it in a private auction, the floor price for the private auction is

floor price for the private auction is pre-negotiated. So let's say in this

pre-negotiated. So let's say in this case, the floor price is

case, the floor price is $1.50. The advertisers are given a deal

$1.50. The advertisers are given a deal ID by the publisher, which is like their

ID by the publisher, which is like their invitation card to the auction. The

invitation card to the auction. The auction then takes place. It's a

auction then takes place. It's a standard second price auction. The

standard second price auction. The winning advertiser would then get their

winning advertiser would then get their ad to show. So that was a quick recap.

ad to show. So that was a quick recap. Let's move on to understand the

Let's move on to understand the advantages of private auction. The first

advantages of private auction. The first advantage of a private auction is that

advantage of a private auction is that it has more premium inventory as

it has more premium inventory as compared to open auctions. If you

compared to open auctions. If you remember the publisher waterfall, you

remember the publisher waterfall, you saw the open auctions were the last

saw the open auctions were the last priority and private auctions were last

priority and private auctions were last but one. So with private auctions you

but one. So with private auctions you get access to slightly more premium

get access to slightly more premium inventory as compared to open auctions.

inventory as compared to open auctions. Second is you have an opportunity to

Second is you have an opportunity to purchase this inventory before it ends

purchase this inventory before it ends up on the open market. So let's say you

up on the open market. So let's say you have access to a private auction. You

have access to a private auction. You can then buy inventory that your

can then buy inventory that your competitors in the open auction would

competitors in the open auction would never have access to. You have powerful

never have access to. You have powerful targeting options. So all the powerful

targeting options. So all the powerful targeting options that we talked about

targeting options that we talked about when discussing the open auction are

when discussing the open auction are applicable to private auctions as well.

applicable to private auctions as well. Instead of using the targeting options

Instead of using the targeting options on remnant inventory in the open

on remnant inventory in the open auction, you could use the same powerful

auction, you could use the same powerful targeting on more premium inventory

targeting on more premium inventory here. And last is you could have and

here. And last is you could have and build better relationships with key

build better relationships with key publishers since private auctions

publishers since private auctions require manual negotiations before

require manual negotiations before striking a deal. You could build a

striking a deal. You could build a strong relationship with key publishers

strong relationship with key publishers whose inventory is very valuable to you.

whose inventory is very valuable to you. and later on you could even strike

and later on you could even strike better let's say preferred deals or

better let's say preferred deals or programmatic guaranteed deals with them.

programmatic guaranteed deals with them. So those are the advantages of the

So those are the advantages of the private auction. Let's look at the other

private auction. Let's look at the other side. One of the disadvantages of the

side. One of the disadvantages of the private auction is that it's only partly

private auction is that it's only partly automated. Unlike open auctions where

automated. Unlike open auctions where you have no manual deals to be struck,

you have no manual deals to be struck, you don't have to speak to multiple

you don't have to speak to multiple publishers. In the private auction you

publishers. In the private auction you would need to do that. So it does

would need to do that. So it does require some manual effort to strike the

require some manual effort to strike the right deals and get invitations to the

right deals and get invitations to the most relevant auctions. The inventory

most relevant auctions. The inventory here is non-g guaranteed. So though you

here is non-g guaranteed. So though you have access to the inventory, there is

have access to the inventory, there is no guarantee you get it because you're

no guarantee you get it because you're going through an auction process after

going through an auction process after all. There's no guarantee you would win

all. There's no guarantee you would win the auction. The adoption of private

the auction. The adoption of private auctions is still kind of limited as

auctions is still kind of limited as compared to preferred deals and

compared to preferred deals and programmatic guarantee deals. Private

programmatic guarantee deals. Private auctions haven't caught up as much and

auctions haven't caught up as much and the prices here are higher as compared

the prices here are higher as compared to open auctions though they are still

to open auctions though they are still reasonable. So if you're an advertiser

reasonable. So if you're an advertiser with a strict performance goal, you'd

with a strict performance goal, you'd have a better chance of achieving those

have a better chance of achieving those performance goals with private auctions

performance goals with private auctions as compared to let's say a programmatic

as compared to let's say a programmatic guaranteed deal. Keep this last point in

guaranteed deal. Keep this last point in mind because we'll come back to this

mind because we'll come back to this when we're talking about the pros and

when we're talking about the pros and cons of programmatic guaranteed deal. So

cons of programmatic guaranteed deal. So when would you and would you not use a

when would you and would you not use a private auction? One of the scenarios

private auction? One of the scenarios where private auctions would work for

where private auctions would work for you is when you want access to higher

you is when you want access to higher quality inventory before it ends up in

quality inventory before it ends up in the open market. So like I said earlier,

the open market. So like I said earlier, let's say you want to stay one step

let's say you want to stay one step ahead of your competitors and you know a

ahead of your competitors and you know a lot of your competitors are buying

lot of your competitors are buying inventory in the open auction. Through

inventory in the open auction. Through private auctions, you can buy it before

private auctions, you can buy it before they even see it. Private auctions also

they even see it. Private auctions also help you target specific audiences on

help you target specific audiences on that inventory. So you get access to

that inventory. So you get access to that inventory. You can bid on it in the

that inventory. You can bid on it in the private auction and you can also layer

private auction and you can also layer additional powerful targeting options on

additional powerful targeting options on it to ensure that you're reaching

it to ensure that you're reaching audiences that are most relevant to you.

audiences that are most relevant to you. Let's look at some scenarios where the

Let's look at some scenarios where the private auction would not work. One is

private auction would not work. One is when you want more premium inventory.

when you want more premium inventory. Let's say you want master heads of

Let's say you want master heads of roadblocks. In this case, you would not

roadblocks. In this case, you would not be able to use a private auction because

be able to use a private auction because like we said in the publisher waterfall,

like we said in the publisher waterfall, private auctions are given the last but

private auctions are given the last but one priority. The other scenario where

one priority. The other scenario where private auctions wouldn't work for you

private auctions wouldn't work for you is when you want a fixed price for the

is when you want a fixed price for the inventory. In private auctions, like we

inventory. In private auctions, like we said, it's an auction with a

said, it's an auction with a pre-negotiated base price. So you know

pre-negotiated base price. So you know what the base price is and you know you

what the base price is and you know you have to bid over it but you have no clue

have to bid over it but you have no clue what your competitors are betting

what your competitors are betting because as we discussed in one of the

because as we discussed in one of the early lessons. The auctions here are

early lessons. The auctions here are blind auctions. You don't know what

blind auctions. You don't know what anyone else in the auction is bidding.

anyone else in the auction is bidding. So there's no guarantee that you'll win

So there's no guarantee that you'll win the auction and your price would keep

the auction and your price would keep varying depending on the competition

varying depending on the competition within the private auction. Right?

within the private auction. Right? Right. So, we've looked at the pros and

Right. So, we've looked at the pros and cons of private auctions and when you

cons of private auctions and when you should and shouldn't use it. In the next

should and shouldn't use it. In the next lesson, we'll talk about the pros and

lesson, we'll talk about the pros and cons of preferred deals. I'll see you in

cons of preferred deals. I'll see you in that one. Hello and welcome to this

that one. Hello and welcome to this lesson on the pros and cons of preferred

lesson on the pros and cons of preferred deals. A quick recap of what preferred

deals. A quick recap of what preferred deals are. In a preferred deal, you have

deals are. In a preferred deal, you have a publisher who struck a deal with a

a publisher who struck a deal with a single advertiser. The deal sets a fixed

single advertiser. The deal sets a fixed price for the inventory that the

price for the inventory that the publisher has decided to sell to the

publisher has decided to sell to the advertiser. Though the price is fixed,

advertiser. Though the price is fixed, the volume is not guaranteed. So the

the volume is not guaranteed. So the advertiser can choose to buy the

advertiser can choose to buy the inventory. That's why preferred deals

inventory. That's why preferred deals are sometimes also called UFR, which is

are sometimes also called UFR, which is unreserved fixed rate. With that recap,

unreserved fixed rate. With that recap, let's look at some advantages of

let's look at some advantages of preferred deals. The first advantage is

preferred deals. The first advantage is you get access to unique premium

you get access to unique premium different shield inventory. If you

different shield inventory. If you remember the publisher order for

remember the publisher order for preferred deals come just after direct

preferred deals come just after direct deals and programmatic guarantee. So you

deals and programmatic guarantee. So you get inventory that's much more premium

get inventory that's much more premium than what you would get either through

than what you would get either through private auctions or through open

private auctions or through open auctions. As an advertiser, preferred

auctions. As an advertiser, preferred deals also give you more flexibility.

deals also give you more flexibility. You can strike multiple preferred deals

You can strike multiple preferred deals with different publishers. You can run

with different publishers. You can run campaigns across all these different

campaigns across all these different publisher sites. And if you see a

publisher sites. And if you see a certain campaign is not performing, you

certain campaign is not performing, you can move budgets out of it. And if a

can move budgets out of it. And if a certain campaign is performing really

certain campaign is performing really well, you can move budgets to it. This

well, you can move budgets to it. This flexibility in moving around your

flexibility in moving around your budgets is not possible with the

budgets is not possible with the programmatic guaranteed deal type

programmatic guaranteed deal type because there you reserved a certain

because there you reserved a certain amount of inventory and you've committed

amount of inventory and you've committed to buying it. With preferred deals, you

to buying it. With preferred deals, you have a lot more flexibility.

have a lot more flexibility. You also have all the powerful targeting

You also have all the powerful targeting options that we discussed earlier for

options that we discussed earlier for open auctions and private auctions. The

open auctions and private auctions. The only difference is here you can apply

only difference is here you can apply that powerful targeting to more premium

that powerful targeting to more premium inventory. In open auctions you could

inventory. In open auctions you could apply it to remnant inventory. In

apply it to remnant inventory. In private auctions you could apply to

private auctions you could apply to inventory that was slightly more premium

inventory that was slightly more premium than the open auction. And when it comes

than the open auction. And when it comes to preferred deals, you can layer all

to preferred deals, you can layer all those powerful targeting options on

those powerful targeting options on inventory that's more premium than both

inventory that's more premium than both private and open auctions.

private and open auctions. The other advantage of preferred deals

The other advantage of preferred deals is that they're more efficient. You only

is that they're more efficient. You only need to ideally strike a deal with a

need to ideally strike a deal with a publisher once, and this deal can then

publisher once, and this deal can then be reused for subsequent campaigns,

be reused for subsequent campaigns, assuming, of course, that the terms

assuming, of course, that the terms remain the same. So, you don't have to

remain the same. So, you don't have to go and strike a deal every time you want

go and strike a deal every time you want to use the inventory. You could strike a

to use the inventory. You could strike a deal once and you could exercise the

deal once and you could exercise the option to buy the inventory at that

option to buy the inventory at that fixed price whenever you want to. The

fixed price whenever you want to. The disadvantages of preferred deals are

disadvantages of preferred deals are one, you don't have a guarantee on the

one, you don't have a guarantee on the inventory. So if you're running a big

inventory. So if you're running a big bang campaign where you've got massive

bang campaign where you've got massive reach targets to meet, there is no

reach targets to meet, there is no guarantee you'll get it here because

guarantee you'll get it here because there is a chance that the publisher

there is a chance that the publisher would have committed this inventory to

would have committed this inventory to some other programmatic guaranteed deal

some other programmatic guaranteed deal that they struck with another

that they struck with another advertiser. Remember that here only the

advertiser. Remember that here only the price is fixed. the inventory is not

price is fixed. the inventory is not guaranteed and it's more manual as

guaranteed and it's more manual as compared to open or private auctions. It

compared to open or private auctions. It requires manual interactions, requires

requires manual interactions, requires negotiations to fix the price. So it is

negotiations to fix the price. So it is more time consuming to get started as

more time consuming to get started as compared to the other types that we've

compared to the other types that we've discussed so far. So when should you

discussed so far. So when should you pick preferred deals over other types

pick preferred deals over other types and when should you not? Preferred deals

and when should you not? Preferred deals would work when you want to access

would work when you want to access higher quality inventory before it ends

higher quality inventory before it ends up on the open market at a fixed price.

up on the open market at a fixed price. That's the most important thing here is

That's the most important thing here is you can buy inventory before your

you can buy inventory before your competitors do at a pre-negotiated

competitors do at a pre-negotiated price. The other scenario where

price. The other scenario where preferred deals would work really well

preferred deals would work really well is when you're running performance

is when you're running performance campaigns, campaigns with a goal that is

campaigns, campaigns with a goal that is lead generation or sales. In this case,

lead generation or sales. In this case, you get access to premium inventory at a

you get access to premium inventory at a fixed price with powerful targeting

fixed price with powerful targeting controls to reach the most relevant

controls to reach the most relevant audience. So you can reach audiences

audience. So you can reach audiences that would most likely buy your products

that would most likely buy your products through premium placements on the

through premium placements on the publisher

publisher site. In which case would a preferred

site. In which case would a preferred deal not really work? Well, when you're

deal not really work? Well, when you're doing a big bang campaign, let's say

doing a big bang campaign, let's say you've got a massive campaign that you

you've got a massive campaign that you want to run over two or three days and

want to run over two or three days and you want to reach a large audience in

you want to reach a large audience in that short period, you would most likely

that short period, you would most likely need guaranteed inventory. With a

need guaranteed inventory. With a preferred deal, your inventory would not

preferred deal, your inventory would not be guaranteed. So in this case, there's

be guaranteed. So in this case, there's a chance that you might not be able to

a chance that you might not be able to meet your reach target. In such a

meet your reach target. In such a scenario where you have a large campaign

scenario where you have a large campaign for brand awareness, programmatic

for brand awareness, programmatic guaranteed deals would work best. And

guaranteed deals would work best. And that's what we talk about in the next

that's what we talk about in the next lesson, which is on the pros and cons of

lesson, which is on the pros and cons of programmatic guarantee. Hello and

programmatic guarantee. Hello and welcome to this lesson on the pros and

welcome to this lesson on the pros and cons of programmatic guaranteed. A quick

cons of programmatic guaranteed. A quick recap. Programmatic guarantee deals are

recap. Programmatic guarantee deals are deals struck between a single advertiser

deals struck between a single advertiser and a publisher where both the price and

and a publisher where both the price and the volume are

the volume are pre-negotiated. So the publisher

pre-negotiated. So the publisher guarantees a certain number of

guarantees a certain number of impressions to the advertiser at a fixed

impressions to the advertiser at a fixed CPM. So what are the advantages of

CPM. So what are the advantages of programmatic guaranteed or PG deals? One

programmatic guaranteed or PG deals? One is you have access to premium ad

is you have access to premium ad inventory. Again, if you remember the

inventory. Again, if you remember the publisher waterfall that we talked about

publisher waterfall that we talked about before, we moved on to the pros and cons

before, we moved on to the pros and cons of the different types of programmatic

of the different types of programmatic advertising. We saw that programmatic

advertising. We saw that programmatic guaranteed is the second highest

guaranteed is the second highest priority just after direct deals. So,

priority just after direct deals. So, this gives you access to some of the

this gives you access to some of the most premium inventory that the

most premium inventory that the publisher would have. You have

publisher would have. You have guaranteed inventory at a predefined

guaranteed inventory at a predefined CPM. The CPM is lower than direct but

CPM. The CPM is lower than direct but higher than preferred deals, private

higher than preferred deals, private auctions or open auctions. The key thing

auctions or open auctions. The key thing to remember here is the price is lower

to remember here is the price is lower than what you would get when you do a

than what you would get when you do a direct deal with the publisher. Some of

direct deal with the publisher. Some of you might be wondering why is the price

you might be wondering why is the price lower for a programmatic guarantee deal

lower for a programmatic guarantee deal as compared to a direct deal. Well,

as compared to a direct deal. Well, that's because programmatic guaranteed

that's because programmatic guaranteed deals automate a lot of the ad delivery

deals automate a lot of the ad delivery and tracking process.

and tracking process. indirect deals since they being executed

indirect deals since they being executed outside of the programmatic ecosystem.

outside of the programmatic ecosystem. It would require a lot of bandwidth from

It would require a lot of bandwidth from the publishers ad sales team first to

the publishers ad sales team first to negotiate the deal and then the adops

negotiate the deal and then the adops team to execute the deal. With

team to execute the deal. With programmatic platforms, the execution

programmatic platforms, the execution becomes much easier and which is why the

becomes much easier and which is why the CPMs are lower than what you would get

CPMs are lower than what you would get with a direct deal. Approved brand

with a direct deal. Approved brand safety and transparency is another key

safety and transparency is another key advantage of PG deals. We talked about

advantage of PG deals. We talked about brand safety earlier and we said how it

brand safety earlier and we said how it impacts open auctions the most. With

impacts open auctions the most. With guaranteed deals since you know exactly

guaranteed deals since you know exactly which site your ads are going to show

which site your ads are going to show and in most cases you also know which

and in most cases you also know which units on which site. There's virtually

units on which site. There's virtually no chance of a brand safety issue

no chance of a brand safety issue cropping up. There is also minimal ad

cropping up. There is also minimal ad fraud risk because you're striking a

fraud risk because you're striking a onetoone deal with a specific publisher.

onetoone deal with a specific publisher. So unlike other types of programmatic

So unlike other types of programmatic advertising ad fraud risk is the least

advertising ad fraud risk is the least with programmatic guaranteed deals. The

with programmatic guaranteed deals. The disadvantages of PG deals are first is

disadvantages of PG deals are first is technically not programmatic as adding

technically not programmatic as adding most targeting layers is not possible.

most targeting layers is not possible. Unlike other types of programmatic

Unlike other types of programmatic advertising where you can layer multiple

advertising where you can layer multiple powerful targeting options on the

powerful targeting options on the publishers inventory with PG deals that

publishers inventory with PG deals that kind of layering is quite restricted

kind of layering is quite restricted which is a prime reason why programmatic

which is a prime reason why programmatic guaranteed deals do not work well for

guaranteed deals do not work well for performance campaigns in most cases. So

performance campaigns in most cases. So if you want to run a performance

if you want to run a performance campaign where your goal is to get

campaign where your goal is to get sales, get leads on your site, you'd

sales, get leads on your site, you'd rather pick a preferred deal, for

rather pick a preferred deal, for example, as you can get access to

example, as you can get access to premium inventory and layer additional

premium inventory and layer additional targeting options on that to ensure that

targeting options on that to ensure that you get ROI from your performance

you get ROI from your performance campaigns. With PG deals, since your

campaigns. With PG deals, since your targeting layers are limited, the

targeting layers are limited, the performance might not be up to your

performance might not be up to your expectations. The other problem with

expectations. The other problem with programmatic guarantee deals is

programmatic guarantee deals is mid-flight optimization is not possible.

mid-flight optimization is not possible. Though you can speak to the publisher

Though you can speak to the publisher and stop the campaign if it's not

and stop the campaign if it's not working, you can't really optimize it

working, you can't really optimize it yourself midway like you would do with

yourself midway like you would do with any other type of programmatic

any other type of programmatic advertising. So now that we've seen the

advertising. So now that we've seen the pros and cons of PG deals, let's look at

pros and cons of PG deals, let's look at some scenarios where you would use it.

some scenarios where you would use it. The best scenario for PG deals is when

The best scenario for PG deals is when you want guaranteed access to premium

you want guaranteed access to premium inventory at a predefined fixed price.

inventory at a predefined fixed price. So you can get access to let's say a

So you can get access to let's say a roadblock on a publisher site. You get

roadblock on a publisher site. You get it at a fixed price and they also

it at a fixed price and they also guarantee that you would get a certain

guarantee that you would get a certain number of impressions for example. This

number of impressions for example. This kind of buy works best for large brand

kind of buy works best for large brand campaigns when you want to reach a large

campaigns when you want to reach a large audience in a short period and you want

audience in a short period and you want to ensure that your inventory is

to ensure that your inventory is guaranteed. With all other types of

guaranteed. With all other types of programmatic advertising, your inventory

programmatic advertising, your inventory is not guaranteed in the auction. there

is not guaranteed in the auction. there is no guarantee you'd win the auction

is no guarantee you'd win the auction whether it's an open or a private

whether it's an open or a private auction with preferred deals as well.

auction with preferred deals as well. There's no guarantee that you would get

There's no guarantee that you would get the inventory because you're only fixing

the inventory because you're only fixing the price there and you're not

the price there and you're not guaranteeing the inventory. So, whenever

guaranteeing the inventory. So, whenever you have a big bang brand campaign,

you have a big bang brand campaign, that's a great scenario to use

that's a great scenario to use programmatic guarantee deals. Like we

programmatic guarantee deals. Like we discussed just a little while back,

discussed just a little while back, programmatic guarantee deals do not

programmatic guarantee deals do not really work with performance campaign.

really work with performance campaign. So, keep that in mind if you have a

So, keep that in mind if you have a performance campaign that you want to

performance campaign that you want to run. PG deals might not be the best

run. PG deals might not be the best choice for you. Great. So, now we've

choice for you. Great. So, now we've looked at the pros and cons of all the

looked at the pros and cons of all the four types of programmatic advertising.

four types of programmatic advertising. Now you know the advantages of each, the

Now you know the advantages of each, the disadvantages of each. You also know

disadvantages of each. You also know which one to pick in which scenario.

which one to pick in which scenario. That brings us to the end of this

That brings us to the end of this lesson. Look forward to seeing you in

lesson. Look forward to seeing you in the next one. Hello and welcome back to

the next one. Hello and welcome back to the course on programmatic advertising.

the course on programmatic advertising. In this section, we talk about the

In this section, we talk about the Google programmatic ecosystem. I'm sure

Google programmatic ecosystem. I'm sure all of you remember this programmatic

all of you remember this programmatic advertising flowchart that we discussed

advertising flowchart that we discussed in one of the early lessons. Now let's

in one of the early lessons. Now let's look at how Google products cater to

look at how Google products cater to this ecosystem. The Google programmatic

this ecosystem. The Google programmatic ecosystem was earlier called double

ecosystem was earlier called double click and all products were branded with

click and all products were branded with double click. This has changed of late

double click. This has changed of late and a few minutes from now I will take

and a few minutes from now I will take you through all the old names and all

you through all the old names and all the new names after the rebranding has

the new names after the rebranding has happened. But let's understand what you

happened. But let's understand what you see on the screen at the moment. On one

see on the screen at the moment. On one side you have the marketer which is the

side you have the marketer which is the demand side. On the other side you have

demand side. On the other side you have the publisher which is the supply side.

the publisher which is the supply side. Let's look at the demand side first.

Let's look at the demand side first. Marketers have access to something

Marketers have access to something called an ad server. This is nothing but

called an ad server. This is nothing but a software or a tool where marketers can

a software or a tool where marketers can upload their ad creatives and run,

upload their ad creatives and run, monitor and track campaigns across

monitor and track campaigns across multiple publishers and platforms. The

multiple publishers and platforms. The Google ad server for the demand side is

Google ad server for the demand side is called DoubleClick Campaign Manager or

called DoubleClick Campaign Manager or just DCM. There's also another platform

just DCM. There's also another platform called doubleclick search which helps

called doubleclick search which helps advertisers run ads across different

advertisers run ads across different search

search platforms including Google, Yahoo, Bing

platforms including Google, Yahoo, Bing and BU. Google also has a creative tool

and BU. Google also has a creative tool for marketers called DoubleClick Studio

for marketers called DoubleClick Studio which helps make rich media

which helps make rich media creatives. And then there's a demand

creatives. And then there's a demand side platform which is doubleclick bid

side platform which is doubleclick bid manager or DBM. On the supply side, the

manager or DBM. On the supply side, the publisher has their ad server which we

publisher has their ad server which we discussed earlier when you talked about

discussed earlier when you talked about the publisher waterfall. This ad server

the publisher waterfall. This ad server helps prioritize their inventory. It

helps prioritize their inventory. It also helps them manage, monitor and

also helps them manage, monitor and measure ads that are being served on

measure ads that are being served on their digital properties. Doubleclick

their digital properties. Doubleclick for publishers here does the dual job of

for publishers here does the dual job of being the ad server as well as the

being the ad server as well as the supply side platform. DBM and DFP

supply side platform. DBM and DFP interact with each other through the ad

interact with each other through the ad exchange which is called the double

exchange which is called the double click ad exchange or addex. So these are

click ad exchange or addex. So these are the different products in the Google

the different products in the Google programmatic ecosystem. Let's recap each

programmatic ecosystem. Let's recap each one here. So we talked about DCM or

one here. So we talked about DCM or doubleclick campaign manager which is

doubleclick campaign manager which is the advertisers ad server. It helps them

the advertisers ad server. It helps them with storing the ad creatives tracking

with storing the ad creatives tracking and measurement.

and measurement. There's DBM or double click bid manager

There's DBM or double click bid manager which is Google's demand site platform.

which is Google's demand site platform. It helps advertisers purchase inventory

It helps advertisers purchase inventory across different publisher

across different publisher sites. There's doubleclick search which

sites. There's doubleclick search which is a third party search engine marketing

is a third party search engine marketing platform. It helps

platform. It helps advertisers buy inventory across Google,

advertisers buy inventory across Google, Yahoo, Bing and BU. Doubleclick Studio

Yahoo, Bing and BU. Doubleclick Studio helps advertisers create rich media ad

helps advertisers create rich media ad formats and also measure engagement on

formats and also measure engagement on those ad formats. And we've got the

those ad formats. And we've got the Google Analytics 360 suite which is

Google Analytics 360 suite which is advanced analytics for marketers. I'm

advanced analytics for marketers. I'm sure most of you are familiar with

sure most of you are familiar with Google Analytics or GA. G3 is one step

Google Analytics or GA. G3 is one step above that with lot of advanced

above that with lot of advanced analytics and additional personalization

analytics and additional personalization features. Well, we've seen all the old

features. Well, we've seen all the old names so far which have the DoubleClick

names so far which have the DoubleClick brand on them. But like I told you in an

brand on them. But like I told you in an earlier lesson, in July 2018, Google

earlier lesson, in July 2018, Google retired the DoubleClick brand and all

retired the DoubleClick brand and all these products now have new names. Both

these products now have new names. Both the old names and new names are used in

the old names and new names are used in the industry today. So you should be

the industry today. So you should be familiar with both. So, double click bed

familiar with both. So, double click bed manager which is the demand side

manager which is the demand side platform is now called Google display

platform is now called Google display and video 360 or just DV 360. Double

and video 360 or just DV 360. Double click search which helps advertisers run

click search which helps advertisers run ads across different search

ads across different search networks is now called search ads 360.

networks is now called search ads 360. Double click campaign manager or TCM is

Double click campaign manager or TCM is now just called campaign

now just called campaign manager. Double click studio which helps

manager. Double click studio which helps marketers make rich media creatives is

marketers make rich media creatives is just called studio

just called studio now and double click for publishers

now and double click for publishers which is the publisher ad server and

which is the publisher ad server and supply set platform is now called Google

supply set platform is now called Google ad

ad manager. So this is a ready reckoner for

manager. So this is a ready reckoner for you for all the old and new names in the

you for all the old and new names in the Google programmatic ecosystem. Keep

Google programmatic ecosystem. Keep these in mind because as I said people

these in mind because as I said people still use both

still use both interchangeably. The Google ecosystem

interchangeably. The Google ecosystem has access to most major ad exchanges.

has access to most major ad exchanges. So if you look at the top ad exchanges

So if you look at the top ad exchanges globally, Pubmatic, Rubicon are some of

globally, Pubmatic, Rubicon are some of the top names. So is App Nexus. The

the top names. So is App Nexus. The Google ad exchange has access to these

Google ad exchange has access to these as well. Apart from of course its own

as well. Apart from of course its own publisher inventory which is on Google

publisher inventory which is on Google ad manager and inventory on YouTube as

ad manager and inventory on YouTube as well. Another thing that you should be

well. Another thing that you should be aware of when we talk about the Google

aware of when we talk about the Google programmatic ecosystem is Google

programmatic ecosystem is Google marketing platform or

marketing platform or GMP. GMP is a suite of Google products

GMP. GMP is a suite of Google products which have been designed and put

which have been designed and put together to help marketers improve their

together to help marketers improve their overall marketing efficiency and

overall marketing efficiency and ROI. So what does the GMP

ROI. So what does the GMP include? It includes Google display and

include? It includes Google display and video 360 which is the demand side

video 360 which is the demand side platform. Search Ads 360, which helps

platform. Search Ads 360, which helps you run ads across multiple search

you run ads across multiple search networks. Analytics 360, which is an

networks. Analytics 360, which is an advanced version of Google Analytics.

advanced version of Google Analytics. Lot more additional features, lot more

Lot more additional features, lot more personalization. There's Google Data

personalization. There's Google Data Studio, which is a tool that helps you

Studio, which is a tool that helps you make reporting

make reporting dashboards. Google Optimize 360, which

dashboards. Google Optimize 360, which helps you AB test and optimize your

helps you AB test and optimize your landing pages. Google Survey 360 which

landing pages. Google Survey 360 which helps you run consumer surveys and

helps you run consumer surveys and Google Tag Manager 360 which is an

Google Tag Manager 360 which is an advanced version of Google Tag Manager.

advanced version of Google Tag Manager. I'd suggest you go and check out these

I'd suggest you go and check out these products to understand more in detail

products to understand more in detail about them. I'll share the link to GMP

about them. I'll share the link to GMP in the resources section of this

in the resources section of this lesson. So this brings us to the end of

lesson. So this brings us to the end of this lesson on the Google programmatic

this lesson on the Google programmatic ecosystem. Look forward to seeing you in

ecosystem. Look forward to seeing you in the next one. Hello and welcome back to

the next one. Hello and welcome back to the course. In this lesson, we'll look

the course. In this lesson, we'll look at the difference between programmatic

at the difference between programmatic advertising and standard display

advertising and standard display advertising on the Google Display

advertising on the Google Display Network. We'll compare the two across

Network. We'll compare the two across different criteria. We look at

different criteria. We look at inventory, ad formats, the technology,

inventory, ad formats, the technology, the bidding process, the optimization

the bidding process, the optimization algorithm, audience targeting, and first

algorithm, audience targeting, and first party cookie integration. Let's look at

party cookie integration. Let's look at the first one which is inventory access.

the first one which is inventory access. So the programmatic platforms which are

So the programmatic platforms which are campaign manager and Google display and

campaign manager and Google display and video 360 have access to adex which is

video 360 have access to adex which is the Google ad exchange and 76 other

the Google ad exchange and 76 other exchanges as well. In the previous

exchanges as well. In the previous lesson we saw that the Google ecosystem

lesson we saw that the Google ecosystem has access to some of the key exchanges

has access to some of the key exchanges like app nexus pubmatic and rubicon. And

like app nexus pubmatic and rubicon. And there are over 75 exchanges that the

there are over 75 exchanges that the Google ecosystem has access to. The

Google ecosystem has access to. The display network on the other hand has

display network on the other hand has access to only the Google ad exchange.

access to only the Google ad exchange. So basically programmatic advertising

So basically programmatic advertising opens up your world to a lot lot more

opens up your world to a lot lot more inventory that you would not have access

inventory that you would not have access to when you're only doing campaigns on

to when you're only doing campaigns on the Google display

the Google display network. When it comes to ad formats

network. When it comes to ad formats with programmatic, you have access to

with programmatic, you have access to banner ads, video, mobile, native ads,

banner ads, video, mobile, native ads, and dynamic creatives.

and dynamic creatives. With GDM, you have access to text ads.

With GDM, you have access to text ads. So, you can't do text ads with the

So, you can't do text ads with the campaign manager or display video 360 at

campaign manager or display video 360 at the moment. Though, you can do it

the moment. Though, you can do it through search ads

through search ads 360. GDN also has access to responsive

360. GDN also has access to responsive ad formats. So, those of you not

ad formats. So, those of you not familiar, responsive ad formats are a

familiar, responsive ad formats are a format where you upload different

format where you upload different elements of your creative and system

elements of your creative and system will automatically create your banner

will automatically create your banner ads to fit different ad sizes. The key

ads to fit different ad sizes. The key thing to note here is that with

thing to note here is that with programmatic advertising platforms,

programmatic advertising platforms, you'll have access to a lot more

you'll have access to a lot more interesting creative options, especially

interesting creative options, especially realtime creative that you will not be

realtime creative that you will not be able to do with a Google display

able to do with a Google display network. In fact, in a later section

network. In fact, in a later section when we talk about programmatic

when we talk about programmatic advertising success stories, you'll see

advertising success stories, you'll see how some brands have used realtime

how some brands have used realtime creative to make their brand campaigns

creative to make their brand campaigns more engaging and to get better results

more engaging and to get better results from their campaign. From the technology

from their campaign. From the technology aspect with programmatic you have both

aspect with programmatic you have both the auction which is RTB or real-time

the auction which is RTB or real-time bidding as well as programmatic direct.

bidding as well as programmatic direct. Now programmatic direct is an umbrella

Now programmatic direct is an umbrella term used for private auctions,

term used for private auctions, preferred deals and programmatic

preferred deals and programmatic guaranteed deals. With GDN, you can only

guaranteed deals. With GDN, you can only access inventory through the open

access inventory through the open auction. There are no preferred deals or

auction. There are no preferred deals or programmatic guarantee deals available

programmatic guarantee deals available through the Google display network. So

through the Google display network. So if you want all the access to all the

if you want all the access to all the premium inventory that we talked about,

premium inventory that we talked about, you will need to either contact the

you will need to either contact the publishers directly or use programmatic

publishers directly or use programmatic platform. When it comes to bidding in

platform. When it comes to bidding in the auctions, with programmatic

the auctions, with programmatic platforms, you can bid on impressions.

platforms, you can bid on impressions. So you have a CPM bid, which is a cost

So you have a CPM bid, which is a cost per,000 impression bid. You can also

per,000 impression bid. You can also optimize for certain actions or clicks.

optimize for certain actions or clicks. So you have a CPA which is a cost per

So you have a CPA which is a cost per action or cost per acquisition

action or cost per acquisition optimization. You also have a cost per

optimization. You also have a cost per click

click optimization. You can also bid cost per

optimization. You can also bid cost per view or CPV when you're running video

view or CPV when you're running video campaigns. With GDN today, apart from

campaigns. With GDN today, apart from the CPM and CPA bids, you can also bid

the CPM and CPA bids, you can also bid for clicks with a CPA, which is a cost

for clicks with a CPA, which is a cost per acquisition, or an ROAS, which is a

per acquisition, or an ROAS, which is a return on ad spend

return on ad spend optimization. So, to some extent, in

optimization. So, to some extent, in some specific cases, the GDN tends to

some specific cases, the GDN tends to work better for direct response or

work better for direct response or performance

performance campaigns. That doesn't mean you can't

campaigns. That doesn't mean you can't do it on programmatic platforms. You can

do it on programmatic platforms. You can do it on programmatic platforms and see

do it on programmatic platforms and see results there as well.

results there as well. Coming to the next one which is the

Coming to the next one which is the algorithm that optimizes for a specific

algorithm that optimizes for a specific action that the advertiser chooses. The

action that the advertiser chooses. The algorithm used by campaign manager and

algorithm used by campaign manager and DV3 have about 40 variables while the

DV3 have about 40 variables while the GDN currently uses something called a

GDN currently uses something called a conversion optimizer which takes into

conversion optimizer which takes into account over 100 signals. Another reason

account over 100 signals. Another reason why I said that sometimes performance

why I said that sometimes performance campaigns tend to work better on the

campaigns tend to work better on the display network. So if you're doing a

display network. So if you're doing a campaign that's absolutely bottom of the

campaign that's absolutely bottom of the marketing funnel, GDN might tend to work

marketing funnel, GDN might tend to work better. Coming to the targeting options

better. Coming to the targeting options on programmatic, you can do remarketing

on programmatic, you can do remarketing which is basically targeting your own

which is basically targeting your own first party cookies, people who visited

first party cookies, people who visited your website, people who've interacted

your website, people who've interacted with you in the past. You can target

with you in the past. You can target Google audience data which is

Google audience data which is demographics.

demographics. So you can target by age, by gender, by

So you can target by age, by gender, by affinity and inmarket audience

affinity and inmarket audience segments. You can also target customer

segments. You can also target customer match. Customer match is when you upload

match. Customer match is when you upload your email ids of your customers to the

your email ids of your customers to the platform. The platform will then match

platform. The platform will then match the email ids you uploaded with the

the email ids you uploaded with the login email ids on record, find those

customers for you and you can target them on the platform. Programmatic

them on the platform. Programmatic platforms also have access to DMPS and

platforms also have access to DMPS and third party data providers. A DMP is a

third party data providers. A DMP is a data management platform. What a DMP

data management platform. What a DMP does is it collects data and then

does is it collects data and then packages it into segments that can be

packages it into segments that can be used by the

used by the advertiser. This gives you access to a

advertiser. This gives you access to a lot more data that you can use for

lot more data that you can use for targeting and you wouldn't have these

targeting and you wouldn't have these options on GDN. So on GDN you only have

options on GDN. So on GDN you only have you can do remarketing. You can use

you can do remarketing. You can use Google audience data. You can also use

Google audience data. You can also use customer match but you don't have access

customer match but you don't have access to data management platforms and third

to data management platforms and third party data providers which gives you

party data providers which gives you additional data layers that you can use

additional data layers that you can use for your targeting. That's a big

for your targeting. That's a big advantage again of programmatic

advantage again of programmatic platforms is the ability to use third

platforms is the ability to use third party data to reach your

party data to reach your audiences. Coming to the last one which

audiences. Coming to the last one which is integrating your first party cookies

is integrating your first party cookies with the

with the platforms. In the case of the Google

platforms. In the case of the Google programmatic ecosystem, it's integrated

programmatic ecosystem, it's integrated with doubleclick campaign manager,

with doubleclick campaign manager, doubleclick search and GAP, which is

doubleclick search and GAP, which is Google Analytics premium. Google

Google Analytics premium. Google Analytics premium has now rebranded and

Analytics premium has now rebranded and it's now called Google Analytics

it's now called Google Analytics 360. You can also import your Google ad

360. You can also import your Google ad cookies to doubleclick bid manager or TV

cookies to doubleclick bid manager or TV 360 as it's now called. On the Google

360 as it's now called. On the Google Display Network, you can integrate with

Display Network, you can integrate with doubleclick search and Google Analytics,

doubleclick search and Google Analytics, the free version of Google

the free version of Google Analytics. You can also import your

Analytics. You can also import your doubleclick audiences to

doubleclick audiences to AdWords. Right? So, just to summarize,

AdWords. Right? So, just to summarize, the biggest advantages of programmatic

the biggest advantages of programmatic over standard display is the fact that

over standard display is the fact that you have a lot more inventory. You can

you have a lot more inventory. You can use realtime

use realtime creative. You can access premium

creative. You can access premium inventory through programmatic

inventory through programmatic guaranteed deals and preferred deals.

guaranteed deals and preferred deals. And you also have access to third party

And you also have access to third party data. Great guys. So that should give

data. Great guys. So that should give you a good overview of programmatic

you a good overview of programmatic versus display. I'm sure a lot of you

versus display. I'm sure a lot of you might have this question on what really

might have this question on what really is the difference between running ads on

is the difference between running ads on a programmatic platform versus running

a programmatic platform versus running ads on the Google display network. So

ads on the Google display network. So here are some of the key

here are some of the key differences. On the inventory front, I

differences. On the inventory front, I told you that programmatic platforms,

told you that programmatic platforms, especially the Google programmatic

especially the Google programmatic ecosystem, has a lot more inventory than

ecosystem, has a lot more inventory than you'd ever get from just the Google

you'd ever get from just the Google Display Network. So, here's a helpful

Display Network. So, here's a helpful analogy to keep in mind when it comes to

analogy to keep in mind when it comes to inventory. If this is the inventory

inventory. If this is the inventory available on Google Display and Video

available on Google Display and Video 360, then this is the inventory on GDN,

360, then this is the inventory on GDN, right? Like we said, GDN is just the

right? Like we said, GDN is just the Google ad exchange inventory, while

Google ad exchange inventory, while Google display and video 360, which is

Google display and video 360, which is the programmatic demand side platform,

the programmatic demand side platform, has access to over 75 ad

has access to over 75 ad exchanges. So that's a useful analogy to

exchanges. So that's a useful analogy to keep in mind. And that's the end of this

keep in mind. And that's the end of this lesson. I hope you're now clear on the

lesson. I hope you're now clear on the differences between programmatic

differences between programmatic advertising and the display network. And

advertising and the display network. And I'll see you in the next lesson. Hello

I'll see you in the next lesson. Hello and welcome to this section on

and welcome to this section on programmatic advertising success

programmatic advertising success stories. In this section, we look at

stories. In this section, we look at case studies on how different brands

case studies on how different brands have leveraged programmatic advertising

have leveraged programmatic advertising to their advantage. We look at success

to their advantage. We look at success stories that will show you the true

stories that will show you the true power of programmatic advertising. So

power of programmatic advertising. So let's get started with the first one

let's get started with the first one which is on how two brands Adidas and

which is on how two brands Adidas and McDonald's used datadriven creative to

McDonald's used datadriven creative to drive better marketing results. What I

drive better marketing results. What I want you to do before going further in

want you to do before going further in this lesson is head to the resources

this lesson is head to the resources section. You'll find this in the menu

section. You'll find this in the menu bar on your left as you're watching this

bar on your left as you're watching this video. Click on it. You'd find links to

video. Click on it. You'd find links to two videos. The first one is a case

two videos. The first one is a case study from Adidas. The second one from

study from Adidas. The second one from McDonald's. So go ahead, watch those two

McDonald's. So go ahead, watch those two videos and then come back and continue

videos and then come back and continue with this lesson. I will take you

with this lesson. I will take you through the case studies and explain

through the case studies and explain them to you. So go ahead, watch the

them to you. So go ahead, watch the videos and come back. Great guys. I hope

videos and come back. Great guys. I hope you watched both those videos. If you've

you watched both those videos. If you've not, please do them. Otherwise, this

not, please do them. Otherwise, this explanation of the case study will not

explanation of the case study will not really make sense to you. So, the

really make sense to you. So, the challenge that the team at IAS was

challenge that the team at IAS was facing in this case was that something

facing in this case was that something called banner blindness was impacting

called banner blindness was impacting their brand engagement. Now, some of you

their brand engagement. Now, some of you might be familiar with what banner

might be familiar with what banner blindness is. But for those of you who

blindness is. But for those of you who are not familiar, banner blindness is a

are not familiar, banner blindness is a phenomena of users getting so used to

phenomena of users getting so used to seeing ads that they start ignoring

seeing ads that they start ignoring them. Right? Think about it. All of us

them. Right? Think about it. All of us browse the internet. We all get targeted

browse the internet. We all get targeted by ads and our minds have somehow

by ads and our minds have somehow started tuning off when we see ads

started tuning off when we see ads because we know it's an ad and we focus

because we know it's an ad and we focus more on the content that we're trying to

more on the content that we're trying to read or watch. Banner blindness is a

read or watch. Banner blindness is a problem with digital advertising and

problem with digital advertising and that's something that advertisers and

that's something that advertisers and marketers are trying to overcome and

marketers are trying to overcome and that's exactly what I did here in this

that's exactly what I did here in this particular case study. They found a

particular case study. They found a solution in the programmatic

solution in the programmatic ecosystem. What they did was they went

ecosystem. What they did was they went to the DV3 platform. So DV3 as you guys

to the DV3 platform. So DV3 as you guys will remember is the Google display and

will remember is the Google display and video 360 platform. It was earlier

video 360 platform. It was earlier called doubleclick bid manager. is

called doubleclick bid manager. is basically the demand side platform for

basically the demand side platform for advertisers in the Google programmatic

advertisers in the Google programmatic ecosystem. They then used studio which

ecosystem. They then used studio which was earlier called doubleclick studio to

was earlier called doubleclick studio to create realtime

create realtime creatives. So they just used four

creatives. So they just used four creative templates which studio then

creative templates which studio then used to create about 300 customized

used to create about 300 customized banner ads. Now whenever the target

banner ads. Now whenever the target audience was watching the game, they

audience was watching the game, they would get targeted with ads that were

would get targeted with ads that were absolutely relevant to that moment. What

absolutely relevant to that moment. What this did was it created a more relevant

this did was it created a more relevant user experience because the ads were not

user experience because the ads were not those usual banners that you'd see, but

those usual banners that you'd see, but was something that was absolutely

was something that was absolutely relevant to something the user was

relevant to something the user was already experiencing. This helped drive

already experiencing. This helped drive better engagement for the brand,

better engagement for the brand, increased the viewability of the ads by

increased the viewability of the ads by 1.7 times, and also resulted in a three

1.7 times, and also resulted in a three time increase in clickthrough rates on

time increase in clickthrough rates on the ads. So, people were paying more

the ads. So, people were paying more attention to the ads, clicking on them

attention to the ads, clicking on them as well.

as well. And this was made possible by the

And this was made possible by the programmatic ecosystem which allowed

programmatic ecosystem which allowed them to create real time datadriven

them to create real time datadriven creative. So that's the first case

creative. So that's the first case study. The second one was from

study. The second one was from McDonald's. Here the challenge that they

McDonald's. Here the challenge that they were facing was that there were too many

were facing was that there were too many new food delivery services in Hong Kong

new food delivery services in Hong Kong and they wanted to cut through the

and they wanted to cut through the clutter and make their ads for

clutter and make their ads for McDonald's delivery visible to the

McDonald's delivery visible to the target audience. What they did here was

target audience. What they did here was they used the audience insights feature

they used the audience insights feature on display video 360 to segment

on display video 360 to segment audiences into different groups and they

audiences into different groups and they then used realtime triggers from the

then used realtime triggers from the football match that was being watched to

football match that was being watched to deliver personalized messages to

deliver personalized messages to specific audience

specific audience segments. The impact again here was

segments. The impact again here was massive. The ads helped them set a new

massive. The ads helped them set a new single day record for me delivery sales.

single day record for me delivery sales. They clocked about 170,000 orders in a

They clocked about 170,000 orders in a 4-week period. They also saw a 30%

4-week period. They also saw a 30% increase in click-through rates on their

increase in click-through rates on their ads. Right? So, these were two excellent

ads. Right? So, these were two excellent case studies on how a brand can use the

case studies on how a brand can use the programmatic ecosystem to build realtime

programmatic ecosystem to build realtime datadriven creative that you would not

datadriven creative that you would not be able to do through conventional

be able to do through conventional digital advertising. In the next lesson,

digital advertising. In the next lesson, we talk about another very interesting

we talk about another very interesting success story. Look forward seeing you

success story. Look forward seeing you in that one. Welcome back to the second

in that one. Welcome back to the second case study on programmatic advertising.

case study on programmatic advertising. In this one, we'll talk about how

In this one, we'll talk about how programmatic can help you with advanced

programmatic can help you with advanced measurement. So, like you did in the

measurement. So, like you did in the previous lesson, I want you to head back

previous lesson, I want you to head back to the resources section on the left,

to the resources section on the left, click on the link to the case study,

click on the link to the case study, watch that video, and then come back and

watch that video, and then come back and join this lesson. Great guys, hope

join this lesson. Great guys, hope you've gone and watched that video. So,

you've gone and watched that video. So, let's look at what the brand did here.

let's look at what the brand did here. The challenge they were facing was that

The challenge they were facing was that they were not able to measure the impact

they were not able to measure the impact of digital advertising campaigns on cars

of digital advertising campaigns on cars being purchased in showrooms offline. So

being purchased in showrooms offline. So what they did here was after the cars

what they did here was after the cars were bought, they sent a message to

were bought, they sent a message to people who bought the car and this

people who bought the car and this message which was sent either through

message which was sent either through SMS or through email had a link to a

SMS or through email had a link to a landing page. So it could have been

landing page. So it could have been something like a message that said,

something like a message that said, "Thank you for your purchase. leave us

"Thank you for your purchase. leave us some feedback on the entire experience

some feedback on the entire experience that you had something along those

that you had something along those lines. So when people clicked on that

lines. So when people clicked on that link they would get on the landing page.

link they would get on the landing page. This landing page had a conversion code

This landing page had a conversion code added to it. The conversion code was

added to it. The conversion code was generated by the programmatic

generated by the programmatic advertising platform which in this case

advertising platform which in this case was campaign manager. The code would

was campaign manager. The code would then check if this person who had now

then check if this person who had now bought the car and come to this page had

bought the car and come to this page had viewed or interacted with any digital ad

viewed or interacted with any digital ad in the past. This then helped them find

in the past. This then helped them find that more than 70% of car purchases

that more than 70% of car purchases offline were actually influenced by

offline were actually influenced by digital advertising.

digital advertising. So earlier when they were having trouble

So earlier when they were having trouble calculating the ROI of digital

calculating the ROI of digital advertising, now it made their job

advertising, now it made their job easier because they could more easily

easier because they could more easily connect purchases happening offline with

connect purchases happening offline with their online campaigns. And again, this

their online campaigns. And again, this was made possible through the

was made possible through the programmatic

programmatic ecosystem. So that's a very interesting

ecosystem. So that's a very interesting case study on how programmatic can help

case study on how programmatic can help you with advanced measurement. In the

you with advanced measurement. In the next lesson, we look at another very

next lesson, we look at another very interesting case study. This time on how

interesting case study. This time on how a brand used programmatic guaranteed for

a brand used programmatic guaranteed for better reach. Look forward to seeing you

better reach. Look forward to seeing you in that lesson. Welcome back. In this

in that lesson. Welcome back. In this lesson, we'll talk about our third case

lesson, we'll talk about our third case study, which is on how a brand drove

study, which is on how a brand drove additional reach with programmatic

additional reach with programmatic guaranteed campaigns. So like we've done

guaranteed campaigns. So like we've done earlier again you can head to the

earlier again you can head to the resources section on the left watch the

resources section on the left watch the video and once you're done with it you

video and once you're done with it you can come back and join this

can come back and join this lesson. Great guys I hope you all

lesson. Great guys I hope you all watched the video. In this case the

watched the video. In this case the challenge that Samsung was facing was

challenge that Samsung was facing was that they were running campaigns through

that they were running campaigns through direct deals across different publishers

direct deals across different publishers and their audiences were getting

and their audiences were getting duplicated across different publisher

duplicated across different publisher sites. So let's say they were running

sites. So let's say they were running campaigns across publisher A, B, C and

campaigns across publisher A, B, C and D. All of them were being run

D. All of them were being run independent of the other and their

independent of the other and their audiences were being exposed multiple

audiences were being exposed multiple times across all these publishers

times across all these publishers resulting in an overall unnecessary

resulting in an overall unnecessary overexposure of the audience. Their

overexposure of the audience. Their budgets were also getting exhausted

budgets were also getting exhausted quicker than they required. In order to

quicker than they required. In order to solve this problem, they chose to do

solve this problem, they chose to do programmatic guaranteed campaigns. So

programmatic guaranteed campaigns. So instead of doing direct deals with these

instead of doing direct deals with these publishers, so if you remember the

publishers, so if you remember the publisher waterfall that we discussed

publisher waterfall that we discussed earlier, direct deals are deals that are

earlier, direct deals are deals that are done completely offline without or

done completely offline without or outside of the programmatic ecosystem.

outside of the programmatic ecosystem. They are delivered outside of the

They are delivered outside of the programmatic ecosystem as well. When

programmatic ecosystem as well. When Samsung chose programmatic guaranteed,

Samsung chose programmatic guaranteed, what they could do was they could run

what they could do was they could run campaigns across each of these

campaigns across each of these publishers with something called a

publishers with something called a global frequency cap. So now they could

global frequency cap. So now they could cap their frequency universally to limit

cap their frequency universally to limit overexposure across all publisher sites

overexposure across all publisher sites at the same time. This is something they

at the same time. This is something they could not do when they were doing direct

could not do when they were doing direct deals with the publishers. The impact of

deals with the publishers. The impact of this was that now that they were

this was that now that they were limiting the exposure to their audience,

limiting the exposure to their audience, they were able to reach more people for

they were able to reach more people for the same budget. If you go back to our

the same budget. If you go back to our lesson where we talked about frequency

lesson where we talked about frequency and frequency capping for the same

and frequency capping for the same budget if I'm capping my exposure, I now

budget if I'm capping my exposure, I now have more impressions left to show it to

have more impressions left to show it to newer people, right? And that's exactly

newer people, right? And that's exactly what happened here because they were

what happened here because they were limiting the exposure to the existing

limiting the exposure to the existing audience. They were able to reach a

audience. They were able to reach a newer audience. In fact, they reached

newer audience. In fact, they reached four times the number of unique users

four times the number of unique users that they were doing earlier at 1/4 the

that they were doing earlier at 1/4 the cost per user as well. So this is

cost per user as well. So this is another example of how using

another example of how using programmatic platforms can help

programmatic platforms can help advertisers get much better results than

advertisers get much better results than what they're getting otherwise. So we've

what they're getting otherwise. So we've seen four different case studies across

seen four different case studies across three different use cases in this

three different use cases in this section. The first one we saw showed you

section. The first one we saw showed you how brands can use programmatic

how brands can use programmatic advertising for realtime and datadriven

advertising for realtime and datadriven creative. In the second one we saw how

creative. In the second one we saw how programmatic can help you with advanced

programmatic can help you with advanced measurement. And in this one, we've seen

measurement. And in this one, we've seen how using programmatic guaranteed

how using programmatic guaranteed campaigns can help you reach a lot more

campaigns can help you reach a lot more people with the same budget that you

people with the same budget that you have. So, I hope you enjoyed these case

have. So, I hope you enjoyed these case studies and these success stories which

studies and these success stories which have given you an idea of how powerful

have given you an idea of how powerful programmatic advertising and

programmatic advertising and programmatic solutions can actually be.

programmatic solutions can actually be. I hope you enjoyed this section. I'll

I hope you enjoyed this section. I'll see you in the next one. Hello and

see you in the next one. Hello and welcome back to the last section of this

welcome back to the last section of this programmatic advertising course. We'll

programmatic advertising course. We'll quickly review what we've learned and

quickly review what we've learned and then wrap things up. But first, let me

then wrap things up. But first, let me congratulate you on coming this far in

congratulate you on coming this far in completing this course. It's been an

completing this course. It's been an exciting journey for me and I hope it

exciting journey for me and I hope it was an exciting journey for you as well.

was an exciting journey for you as well. We looked at programmatic advertising in

We looked at programmatic advertising in detail. We began with what programmatic

detail. We began with what programmatic advertising is. We then went on to

advertising is. We then went on to understand the fundamentals of the

understand the fundamentals of the digital advertising auction. We saw how

digital advertising auction. We saw how digital advertising has evolved from the

digital advertising has evolved from the beginning of time to what it is today.

beginning of time to what it is today. You then learned the different

You then learned the different components of the programmatic

components of the programmatic advertising ecosystem. So you now know

advertising ecosystem. So you now know what DSPs, SSPs, ad networks, and ad

what DSPs, SSPs, ad networks, and ad exchanges are. Where do they fit in the

exchanges are. Where do they fit in the ecosystem and what they do? You're also

ecosystem and what they do? You're also now more comfortable with programmatic

now more comfortable with programmatic advertising terminology. We talked about

advertising terminology. We talked about frequency caps, first, second, and third

frequency caps, first, second, and third party data, above the fold, and below

party data, above the fold, and below the fold inventory, and runoff network

the fold inventory, and runoff network and runoffsite types of ad buying. We

and runoffsite types of ad buying. We went through brand safety, ad fraud, and

went through brand safety, ad fraud, and the concept of viewability in detail.

the concept of viewability in detail. You learned the different types of

You learned the different types of programmatic advertising, also the pros

programmatic advertising, also the pros and cons of each type. We then went

and cons of each type. We then went through the Google programmatic

through the Google programmatic ecosystem, saw the different tools that

ecosystem, saw the different tools that Google has as part of it, and what each

Google has as part of it, and what each tool or platform does. We also saw an

tool or platform does. We also saw an overview of the Google marketing

overview of the Google marketing platform. We then went on to understand

platform. We then went on to understand the differences between programmatic

the differences between programmatic advertising and standard display. What

advertising and standard display. What are the advantages of programmatic

are the advantages of programmatic advertising over advertising on the

advertising over advertising on the Google display network? In which cases

Google display network? In which cases would programmatic advertising really

would programmatic advertising really help you? And then we saw some really

help you? And then we saw some really interesting programmatic advertising

interesting programmatic advertising success stories that would have shown

success stories that would have shown you how powerful programmatic

you how powerful programmatic advertising can really get. So I hope

advertising can really get. So I hope you had a great time learning all about

you had a great time learning all about programmatic advertising. If you truly

programmatic advertising. If you truly enjoyed this course and found it

enjoyed this course and found it valuable, please do go ahead and leave a

valuable, please do go ahead and leave a review. Reviews mean a lot. In fact,

review. Reviews mean a lot. In fact, reviews mean everything on a platform

reviews mean everything on a platform like Udemy. And that's how this course

like Udemy. And that's how this course will get discovered by other people who

will get discovered by other people who could potentially benefit from it. So,

could potentially benefit from it. So, if you found this course valuable,

if you found this course valuable, please do go ahead and leave a review.

please do go ahead and leave a review. Thank you so much once again, and I wish

Thank you so much once again, and I wish you all the best for your digital and

you all the best for your digital and programmatic advertising efforts. Bye.

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YouTube Transcript:Programmatic Advertising Secrets Every Marketer Must Know