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
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, discussed how given the magnitude of today's application ...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...