PulsePoint - Programmatic Compendium 2020
PulsePoint - Programmatic Compendium 2020
health anthology
Everything you need to know about programmatic explained,
including helpful definitions, examples, quizzes and more.
pulsepoint.com 1
introduction
Programmatic makes advertising simple, but that doesn’t make
programmatic itself simple. There’s plenty of acronyms, technological
processes and players involved, and keeping them all straight—not to
mention, understanding them in the first place—is a tall task.
pulsepoint.com 2
WELCOME TO
Programmatic
1. An In-Depth Look
• Programmatic Ad Buying
• Programmatic Selling
• Auction Types
• Auction Mechanics
• Data Targeting
pulsepoint.com 3
THE PROGRAMMATIC ADVERTISING LANDSCAPE
A 10,000 foot view of all the players and how they work together.
pulsepoint.com 4
an In-Depth Look
Programmatic
AD BUYING
pulsepoint.com 5
What is programmatic ad buying?
Simply put, programmatic is the automation of a process using software,
where all of the magic happens through machines.
TRADITIONAL programmatic
OVERVIEW
An automated process
PROCESS
Finding people who suffer from or treat certain acute conditions isn’t
easy. Before programmatic, healthcare marketers had to cast a wide net
through broad reach media to ensure they reached niche audiences
with their message. It was expensive, untargeted and hard to measure.
pulsepoint.com 6
Digital advertising changed the game by facilitating targeting of key
audiences and removing the need for this fire hose approach, and
because programmatic helps healthcare marketers understand and
action the digital behaviors of their niche audiences specifically, they
can connect more directly. This personalization has special meaning for
healthcare where the right information in the right hands can literally
change someone’s life.
Often times a healthcare brand will work with an agency to buy media
on their behalf. Some major brands like Bayer have even built their own
in-house programmatic teams to buy all their media.
pulsepoint.com 7
How does RTB work?
As an ad impression loads in a user’s Web browser, information about
the page it is on and the user viewing it is passed to an ad exchange,
which auctions it off to the advertiser willing to pay the highest price
for it. The winning bidder’s ad is then loaded into the webpage nearly
instantly.
1.
The user goes to
a web page
2.
The impression is
put up for auction
3.
auction (CPM) based
on their estimated
impression value
4.
The higher auction
wins the impression
5.
The advertiser
delivers the
impression
pulsepoint.com 8
How does Real Time Bidding Help Health Advertisers?
Health marketers can access a huge range of inventory across a wide
range of sites and cherry pick only the impressions most valuable to
them. It helps reduce waste and maximize ad spend.
pulsepoint.com 9
device tracking and user identification, as well as marrying offline CRM
data with actionable online data, to generate audience segments, used
to target specific users with online ads.
pulsepoint.com 10
QUIZ
Programmatic BUYING
1. True or False: All real-time bidding is programmatic, but not all
programmatic is RTB.
2.
Demand-Side Platforms (DSPs) were built primarily to:
A. Enable publishers to manage/sell their inventory
programmatically
B. Enable advertisers to bid on ad inventory across multiple
exchanges programmatically
4.
Today you can buy which media formats programmatically?
A. Display
B. Search
C. Mobile
D. Video
E. All of the above
1. True; 2. B; 3. True; 4. E
pulsepoint.com 11
an In-Depth Look
Programmatic
SELLING
pulsepoint.com 12
As more health advertisers purchase ads programmatically using DSPs,
more endemic and non-endemic health publishers have begun to sell
programmatically. To do so, many publishers use a technology, called
Supply Side Platforms, similar to how media buyers use DSPs.
pulsepoint.com 13
relevant inventory. When there is a bid request for an impression that
matches the buyer’s requirements, the DSP will then submit a bid for
that piece of inventory. The real-time bidding auction takes place when
all bids submitted from various DSPs for a single bid request compete
to win that impression. There are two primary methods for determining
the price paid by the winning bid: first-price auctions and second-price
auctions.
pulsepoint.com 14
QUIZ
Programmatic SELLING
1. Supply-Side Platforms (SSPs) were built primarily to:
A. Enable publishers to effectively manage/sell their inventory
programmatically
B. Enable advertisers to bid on display inventory across multiple
exchanges programmatically
2. Publishers are able to set a rate below which they are not willing
to sell their inventory. This is called a:
A. Minimum bid
B. Price floor
C. Rate requirement
D. Bid cap
1. A; 2. B
pulsepoint.com 15
AN IN-DEPTH LOOK
DIFFERENT WAYS TO
BUY AND SELL
PROGRAMMATICALLY
pulsepoint.com 16
While the early days of programmatic were led by RTB, in the years
since we’ve seen new auction types appear to help solve some of the
early limitations - Private Marketplaces, Programmatic Direct and
Programmatic Guaranteed.
pulsepoint.com 17
What is Programmatic Direct?
Programmatic Direct is a way to automate direct ad buys for set
campaigns. Buyers retain moderate levels of targeting at scale, and
access to premium inventory in a more predictable pricing model with
possible guaranteed inventory. Publishers control which buyers can buy
their most premium inventory and benefit from increased predictability
in their programmatic revenue stream. Programmatic direct deals are
normally transacted via Deal IDs.
Both sides are able to set terms up front and be assured that buying
will happen on specific inventory. The buyer is guaranteed specific
impressions, at a set price, and the publisher is guaranteed the sale price
for the specified inventory included in the guaranteed deal.
pulsepoint.com 18
A Quick Sidenote on Deal IDs. What is a Deal ID anyway?
A Deal ID or deal identifier, is the unique number of an automated
ad buy. It’s an important part of programmatic ad buying because it
is used to match buyers and sellers individually, based on a variety of
criteria negotiated beforehand. It can include the minimum price the
advertiser is allowed to bid, type of ad units, section of the site, among
others. Deal ID can be also used by publishers to differentiate deals to a
buyer’s objectives. It gives buyers and sellers flexibility while combining
that with the dynamic pricing of real-time bidding.
pulsepoint.com 19
QUIZ
Programmatic
auction TYPES
1. What is a Deal ID?
A. Identification before making a deal
B. A small transparent image placed on a website that tracks user
behavior
C. The unique number of an automated ad buy
D. Same thing as the cookie ID
1. C 2. B; 3. False
pulsepoint.com 20
AN IN-DEPTH LOOK
AUCTION MECHANICS
pulsepoint.com 21
Don’t go chasing waterfalls.
Now that we’ve covered what programmatic is, the different
technologies used and different auction types, how do the mechanics of
auctions actually work?
There are two primary ways that publishers sell off their inventory
programmatically: waterfall auctions and header bidding.
If the highest paying demand source does not fill the impression, the
ad server will then continue making subsequent ad requests to other
demand sources, in order of CPM, until the impression is filled.
pulsepoint.com 22
What is header bidding?
Header bidding, also known as advance bidding or pre-bidding, is an
advanced programmatic technique wherein publishers offer inventory
to multiple ad exchanges simultaneously before making calls to their
ad servers. The idea is that by letting multiple demand sources bid on
the same inventory at the same time, publishers increase their yield and
make more money.
pulsepoint.com 23
Tag-based integrations provide direct access to the webpage where
the ad will render, often providing much better visibility into audience
attributes and allowing the demand partner to directly sync user
information for audience targeting. Conversely, in header bidding, there
are separate practices in place to synchronize audience attributes with
demand partners that can lead to more unknown user bid requests. If a
user is unknown, buyers are unable to do things like audience targeting
and frequency capping.
Take the example below. The winning bid in the waterfall action
would be $2.75 and after the ad server sequentially called two other
ad networks. But with the header auction, all ad requests are sent
concurrently so that they compete against each other in real time. The
winning bid in this example would be $3.25.
So the winning bid price is the price the advertiser pays the publisher
right?
Depends on if it’s a first price or second price auction. As programmatic
has matured, the structure of actions and how pricing is determined
by an SSP has become less clear. While second-price auctions used to
be considered the most common pricing strategy, we’re seeing more
auctions move to first-price.
pulsepoint.com 24
Second-Price Auctions
In this auctioning model, bidders set the price which they are willing
to pay for an impression. However, the price they pay is only 0.01$ more
than the second-highest bid.
• Bids $2.10
• Bids $2.80
• Bids $2.50
The highest bid in this auction amounts to $2.80. But the price paid will
be $2.51. In a first priced auction the price paid would be the bid price -
$2.80.
First-Price Auctions
This auction model is simple and transparent. The highest bid wins and
pays the price they bid. Makes sense right?
pulsepoint.com 25
QUIZ
Programmatic
auction mechanics
1. In a second price auction, Advertiser A bids $1, advertiser B bids
$1.50 and advertiser C bids $2.00. Which advertiser will win the
auction?
A. Advertiser A
B. Advertiser B
C. Advertiser C
2.
How much will the winning advertiser pay?
A. $2.01
B. $1.50
C. $1.51
3.
True or False: Multiple demand sources bid on the same inventory
at the same time in a waterfall set up.
1. C ; 2. C 3. False
pulsepoint.com 26
AN IN-DEPTH LOOK
DATA TARGETING IN A
PROGRAMMATIC
WORLD
pulsepoint.com 27
How does data fit into all of this?
If technology is the engine of programmatic media buying, then data
can be considered the gasoline that fuels it. But with vast amounts of
data available and continuously increasing, it’s easy for marketers to get
lost in a sea of data. Finding the right data that will allow you to most
effectively – and efficiently – reach your target audiences and fulfill your
business objectives is the key and what marketers are trying to solve for.
pulsepoint.com 28
• Client 1st party data: CRM data, leads database, etc
• Publisher 1st party data: Information about a user or their behavior that is
collected from site visitors
• 3rd party data: Purchased data from data providers
pulsepoint.com 29
PulsePoint onboards various health-specific patient, provider and payor
segments. Third-party audience data can be used to prospect and
extend reach to “target personas."
pulsepoint.com 30
Review the definition of “Sensitive Data” (NAI Code of Conduct) to learn
more about what might be considered a sensitive condition.
deterministic vs probablistic
Beyond first party data which might include visitors to a brand website
or email, there are numerous sources of third party HCP targeting data.
Like any product or service, they vary widely in accuracy, quality and
scope. The first thing to understand and ask of any vendor is the degree
of ‘deterministic’ vs ‘probabilistic’ targeting the data represents. To have
accurate digital targeting, the one-to-one relationship between offline
identity, (sometimes called offline persona) to the online identity (digital
persona) is key to not only effectiveness but also regulatory compliance.
Like many things, the methods that achieve this offline/online linkage
are not binary but rather they are on a continuum from deterministic
to probabilistic matching. As the names imply, deterministic means
extremely high confidence that the identity linkage is accurate, while
probabilistic means that there is some level of probability that the link is
accurate.
pulsepoint.com 31
What types of data can be used for HCP targeting?
Recent advances in data and technology have also made it possible
to reach relevant healthcare professionals (HCPs) at scale with greater
precision, by accurately linking offline HCP information (e.g., NPI, DEA,
State License, Association/ Organization data) to their online digital
identities. This approach empowers advertisers to more effectively reach
their target HCPs across the full digital landscape, including the multiple
devices HCPs use and the various types of professional and consumer
websites they visit on a regular basis.
What’s retargeting?
Retargeting, also known as remarketing, is a form of online advertising
that helps to keep the brand top-of-mind after a consumer has taken
a relevant action online. While site retargeting may be one of the most
common applications, marketers also use retargeting to engage users
after a relevant search engine visit or CRM email.
pulsepoint.com 32
How does retargeting work?
Retargeting is a tool designed to help companies reach people who
don’t convert right away. Retargeting is a cookie-based technology that
uses simple Javascript code to anonymously ‘follow’ a brand’s audience
all over the Web. A small, unobtrusive piece of code is placed on the
brand’s website (this code is sometimes referred to as a pixel). The code,
or pixel, is unnoticeable to brand site visitors and will not affect the site’s
performance. Every time a new visitor comes to the brand’s site, the
code drops an anonymous browser cookie. Later, when cookied visitors
browse the Web, the cookie will let brand’s retargeting provider know
when to serve ads, ensuring that ads are served only to people who have
previously visited the brand’s site.
Pixel or Javascript code: DMPs offer easy to implement 1st party tags
that help collect key data elements from advertisers’ digital touchpoint.
This solution can be deployed across desktop/mobile web pages as well
as other tactics including email.
pulsepoint.com 33
Offline Data and CRM: Offline sources can range from in-store
purchases to loyalty cards to Customer Relationship Management (CRM)
data. These actions can tell a much different story than those of the
online user; especially when trying to create a cross-media strategy.
In order to bring that data online, a “match” must be made between the
offline profile (consisting of those things) with the online profile (cookie).
This gives marketers the holistic offline and online view of who your
consumers are and how to best activate your marketing tactics against
that audience segmentation.
The data landscape continues to change with new privacy laws like
CCPA, so it’s important to ask any technology partner about their
policies and data collection procedures.
pulsepoint.com 34
QUIZ
DATA TARGETING
1. What process allows DSPs and SSPs to communicate unique ID
info?
A. Ad tagging
B. Cookie-syncing
C. Retargeting
D. De-duplication
4.
What type of data targeting tactic would you use if you wanted
to re-engage an audience?
A. Algorithmic Prospecting
B. Data Segment Prospecting
C. Retargeting
D. Contextual Targeting
5.
True or false: Data onboarding refers to taking offline CRM list
and using a third-party data provider to identify their online
identifier, like a cookie or device ID.
1. B; 2. C; 3. A; 4. C; 5. True;
pulsepoint.com 35
PART TWO
five things most
health marketers
get wrong about
programmatic
pulsepoint.com 36
Misconception: Programmatic is a tactic
REALITY: Programmatic is how you implement your tactics
pulsepoint.com 37
And when you’ve saturated your endemic reach, programmatic enables
marketers to supersonically access the massive untapped potential
across the internet, inclusive of endemic. By buying programmatically,
you can standardize your targeting across all of your outreach, auto-
optimize your buy, and load balance your efforts across your entire
campaign to deliver the right mix of cost, quality and scale.
The only caveat to this is that you need to work with a programmatic
partner who has access to premium, high-quality endemic and health-
relevant inventory.
Third-party data: You can partner with data providers to use their
medical claims, geo-demographic data and off-the-shelf segments, and
activate this data using programmatic technology.
pulsepoint.com 38
disorders”, you can identify people reading content about “pancreatic
neoplasms” or “pancreatic ductal carcinoma”.
Modeled data: Modeled audiences are the best way to get at a large
volume of targeted users, that gets more accurate with time. This
approach starts with a base of users (that could be defined by browsing
history or claims data) which is enriched with appended data, then
modeled with algorithms and AI to identify additional users with the
same profile, at scale. The trick to modeled data is having enough scale
of user-level information for your models to be valid and your reach to be
worthwhile.
Misconception: Programmatic yields positive CPRx but no scale
REALITY: Programmatic yields quality scale, but you have to work
with the right partner
Instead, look for a partner that doesn’t just reach people but reaches
the right people and knows how to engage them as well. When
selecting your programmatic partner, look for one that has health reach
capabilities.
• Their overall reach (what percent of the internet traffic they reach)
• The quality of that reach (how much of that reach is on health inventory, or
on inventory frequented by your target)
• The qualification of that reach (how well is that inventory classified)
• Their targeting ability (how well can they activate health data)
• The accuracy of their data (because differences in data exists)
• The power of their models (how well can they use models to expand scale)
pulsepoint.com 39
Misconception: Programmatic is best left to the programmatic buyers
REALITY: Programmatic needs marketers’ strategic acumen to work
Target Definition
Data Integration
Campaign Planning
Regulatory Compliance
• Customer sensitivities
• Brand affiliation sensitivities
• Regulatory issues
• Black / whitelists
Real-World Analytics
• Real-world outcomes
• Third-party partnerships
• Real-world results
• Attribution studies
pulsepoint.com 40
Don’t hand off your programmatic dollars and check the box.
Programmatic is the ‘how’. Stay involved in the ‘what’ – and drive
strategic returns from your investment.
pulsepoint.com 41
THE END
pulsepoint.com
pulsepoint.com 42