Welcome!

Blog Feed Post

10 Definitions Every C-Suite Exec Must Be Able to Teach

Programmatic Buying

We’re busy planning our 7th Annual Media Technology Summit, and we’re going to devote quite a bit of time to the subject(s) of programmatic advertising. While it is one of the most overused phases in our business, the impact data-driven automation is going to have on how advertising is measured, bought and sold cannot be overstated.

Sadly, the mere mention of the term has the power to provoke Pavlovian responses that range from a rote, “We’re never doing it, it’s a race to the bottom…” to the equally platitudinous, “…we’re looking into it, but our brand clients really aren’t ready for it yet.”

One of the best ways to have a successful conversation about programmatic and its associated technologies is to have a set of common terms that everyone understands and agrees upon. These definitions don’t have to be the only ones, nor the exact ones that the industry will ultimately agree upon… they just need to be defined so you can lead a Socratic discussion and keep it on point.

In that spirit, here are the most basic definitions of the most basic terms to use as a starting point for your programmatic advertising discourse. If you can teach the subject to your colleagues, you will surely benefit from the process. And, hopefully, you and your colleagues will attend our upcoming Media Technology Summit (If you’ve read this far, email me for a discount code – you deserve it.) and be total experts on the subject.

Programmatic Advertising 101 – Definitions

Ad exchange: An open online advertising marketplace that lets publishers and advertisers connect (think of a stock exchange).

Ad networks: A closed advertising marketplace where the network owner disintermediates the publisher by sourcing and selling/reselling ad inventory to buyers (Publishers also can, and do, create their own ad networks).

API: An application programming interface specifies how some software components should interact with each other. (An Open API, sometimes referred to as a public API, is an application program interface that provides a developer with programmatic access to a proprietary software application.) All APIs are not open.

Arbitrage: The simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset. In other words, how agencies and ad networks actually create a margin they can live on.

DMP: A data management platform helps all participants in the buying and selling of ad inventory to manage their data, facilitate the usage of third-party data, enhance their understanding of all this data, pass back data, or port custom audience data to a platform for even better targeting.

DSP: The demand-side platform allows advertisers and ad agencies to more easily access and efficiently buy ad inventory off an exchange because the DSP aggregates inventory from multiple ad exchanges. DSPs eliminate the need for another cumbersome buying step: the request for proposal (RFP) process.

First-party Data: Proprietary information collected directly from your customers. It belongs to you. It is unique. It is private. It is unduplicated. It may have a huge value in the presence of other data. Examples include: names, addresses, phone numbers, behavioral information, purchase records, etc.

RTB: Real-time bidding enables ad buyers to bid for ad impressions based on specific campaign criteria which when won is instantly served on the publisher’s site. The fulfillment technology enabling these dynamic transactions is called a “bidder” and can be built into many kinds of platforms.

RTB (Pejorative): Race to the bottom. An idea that any exchange will extremify the marketplace and cause prices to “race to the bottom.” Wrong, in every way, but a clarion call for programmatic naysayers.

SSP: A supply-side platform enables publishers to connect to ad exchanges making their inventory available. In theory, using an SSP empowers publishers to realize the highest prices for their inventory.

Third-party Data: Data you obtain from a third party, partner or someone who collects data for a living. It is a heterogeneous mix of awesome information and useless garbage. Wondering about the value of third-party data… think about the post-card you received last week to take you out of the leased car you returned to the dealer two years ago. The marketing firm that acted upon your supposed “end of lease” date got their data from a third party. Oops!

- – - – - – - – - – - – - – - – - – - -

So there you have it. Programmatic advertising definitions you can use as you teach Geek School for the C-Suite. If you’re looking for discussion topics, here are a few good ones:

  • Unique Media Plus Unique Data
  • Direct Order Automation
  • How To Use Transparency To Your Advantage
  • How You Will Revise Your Sales Compensation Plan With Homage To Programmatic Tools
  • Marketplace Unification

I’m looking forward to seeing you October 23rd at the Sheraton Times Square for the 7th Annual Media Technology Summit where you will learn a little, teach a little, see old friends, meet new ones and show off your programmatic prowess.

Read the original blog entry...

More Stories By Shelly Palmer

Shelly Palmer is the host of Fox Television’s "Shelly Palmer Digital Living" television show about living and working in a digital world. He is Fox 5′s (WNYW-TV New York) Tech Expert and the host of United Stations Radio Network’s, MediaBytes, a daily syndicated radio report that features insightful commentary and a unique insiders take on the biggest stories in technology, media, and entertainment.

Latest Stories
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists l...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
910Telecom exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and exchanges.
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Zerto exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016. Zerto is committed to keeping enterprise and cloud IT running 24/7 by providing innovative, simple, reliable and scalable business continuity software solutions. Through the Zerto Cloud Continuity Platform™, organizations can seamlessly move and protect virtualized workloads between public, private and hybrid clouds. The company’s flagship product, Zerto Virtual...
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.