1. XAXIS 101 SERIES
PROGRAMMATIC 101
EACH DAY, XAXIS CAN PROGRAMMATICALLY CONNECT BRANDS WITH CUSTOMERS ANYWHERE OVER 150 BILLION TIMES
For internal communications and client presentation only. Information or views presented in this post do not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.

2. 1 2 3 4
WHAT IT IS
INVENTORY
DATA
TRENDS

3. WHAT IS PROGRAMMATIC PROGRAMMATIC
An automated method of buying digital advertising in which supply and demand partners make decisions on a per-impression basis and adhere to business rules as provided by the operators of each platform.

4. VIDEO: THE PROGRAMMATIC PRIMER

5. WHY BUY PROGRAMMATICALLY?
TARGETING
STREAMLINING
SEGMENTATION
SCALE
AUTOMATION
Maximize accuracy in reaching users with minimal waste
Use technology to manage and refine relationships
Identify different user types and speak to them differently
Reach users at volume, across the web
Buy and optimize campaigns efficiently and effectively

6. WHAT IS AN AUDIENCE?
A target audience is the intended readership of a publication, advertisement, or other message. In marketing and advertising, it is a specific group of people within the target market at which a product or the marketing message of a product is aimed.
Working professionals making $75,000 - $125,000
Demo: Men 18-35
Mother’s who live in the suburbs
EXAMPLES OF AUDIENCES:
Working adults looking to go on vacation
Single men living in NYC
Watch/jewelry/ shoes/clothing enthusiast

7. PROGRAMMATIC AUDIENCE TARGETING
WHAT IS AN AUDIENCE?
CONTEXTUAL TARGETING
Content as a Proxy for Audience
For years, digital marketers built their targeting strategies around the assumption that prospective customers were best defined and targeted by the content being viewed at the time of ad exposure. Though sometimes effective, contextually driven content strategies often deliver valuable (and expensive) ad impressions to the wrong audience, resulting in wasted marketing spend and missed opportunity.
The recent proliferation and advancement of ad technology has helped marketers to realize the power of addressable audiences targeted in real-time, bringing on the rise of a new audience-first digital marketing paradigm. Underpinned by technologies such as DMPs, DSPs, and distributed processing infrastructure capable of ingesting and analyzing troves of data, it is now possible to target users based on their behaviors, propensities, and demographics either in isolation or coordination with contextual placement, bringing newfound accuracy and efficiency to digital marketing.
PROGRAMMATIC AUDIENCE TARGETING
Audience regardless of context
TARGET
OUTSIDE TARGET

8. HOW BUYS ARE EXECUTED SSP (supply side platform) DSPs
Publisher ad server: “Do I have a guaranteed impression?”
STEP 2
YES
GUARANTEED AD SERVED!
USER request’s web page
User is a woman, 25-34, Fashionista
STEP 1
SSP (supply side platform) NO
$0.96
DSPs: “who is this? Do we want to bid?”
DSPs
“Hey, DSP’s – we have someone!”
$2.10
$0.47
pass
$0.95
STEP 3
Highest bidding DSP wins the ad impression, delivers creative
STEP 4

9. PROGRAMMATIC AT ITS MOST ESSENTIAL ENABLES AUDIENCE BUYING
THE SAME SITE, WITH TAILORED ADVERTISING TO EACH SPECIFIC AUDIENCE

10. DIFFERENT DATA SOURCES OFFER UNIQUE INSIGHTS
FITS THE DEMO
SURFS VACATION WEBSITES
SEARCHED FOR VACATION PACKAGES
WELL KNOWN VACATION PACKAGE
Young married couple, 27-32, HHI: $125k
Surfs vacation websites
All Inclusive Island Vacation Packages
Probability to become a customer

11. DSP
The advertiser’s tech platform – it enables buyers to manage multiple programmatic connections and exchanges to purchase inventory through one interface
SSP
The Publisher’s tech platform – it enables the automation and optimization of inventory for the publisher, accepting bids, prioritizing advertiser contracts and relationships.

12. AUDIENCE BUYING BENEFITS EVERYONE
ADVERTISERS 1 2
PUBLISHERS
Reach the best prospects possible to deliver the highest return on their marketing investment
Compensated on not just value of inventory but also audiences
CONSUMERS 3 4
AGENCIES
Receive brand communications that are relevant to their interests and needs
Deliver more powerful and personal advertising campaigns that take advantage of digital media’s efficiency in creating high return on ad spend for clients

13. INVENTORY
For internal communications and client presentation only. Information or views presented in this post do not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.

14. ONLINE AD INVENTORY
Advertising inventory is the number of advertisements, or amount of ad space, a publisher has available to sell to an advertiser. Ad inventory is often calculated by the month. The term can refer to ads in print or other traditional media but is increasingly used to refer to online or mobile ads. Online ad inventory is often valued in terms of the site traffic or ad views that the publisher can deliver to the advertiser.
DISPLAY
MOBILE/
TABLET
RADIO
RICH MEDIA
ADDRESSABLE TV
NATIVE
VIDEO
DIGITAL OOH
PROGRAMMATIC
SEARCH

15. PREMIUM INVENTORY
Bot Traffic Blocked
Inventory owned by top publishers
3rd Party verified for Viewability, fraud, and content
Brand Safety: Excluding Porn, Hate Speech, Violence, Firearms, Gambling, Piracy
Examples: ESPN, New York Times

16. CPI, CPA, CPM, CPV, CPC, CPS, Pay-Per-Call
NETWORKS
Ad Networks: An advertising network aggregates, categorizes and sells publisher inventory in a way that can be easily understood and purchased by advertisers on a fixed CPM basis. By aggregating inventory, Ad Networks offer advertisers the ability to better reach their target audience while allowing publishers to sell their remnant inventory more effectively. There are many types of Ad Networks. For example, some focus on delivering reach and price efficiency while others focus on audience demographics and quality.
NETWORK
OFFER TYPES
TRAFFIC MIN.
Undertone
CPM, CPC, CPA, CPV
500,000
Tremor
CPM, CPD, CPVC, CPVT
Opera
CPI, CPA, CPM, CPV, CPC, CPS, Pay-Per-Call
400,000

17. BUYER TO SELLER PROGRAMMATIC RELATIONSHIPS
OPEN EXCHANGES
PROGRAMMATIC DIRECT
PRIVATE EXCHANGES
Limited access only minimizes competition
Exclusiveness of invitation called into question
Programmatic business relationship
Pre-defined inventory, price, and priority
Competition with entire landscape
Bid Inflation
Efficient Reach and Scale

18. DATA
For internal communications and client presentation only. Information or views presented in this post do not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.

19. WHAT IS DMP?
As an intelligence layer for digital marketing, DMPs (Data Management Platforms) enable marketers, publishers and brands to plan and implement audience strategies, construct audiences, activate and onboard 1st party data, personalize consumer experiences, and report on trends across audiences, while linking all data points associated with users in real (or near-real) time.

20. UNDERSTANDING DIFFERENT TYPES OF DATA1 2 3
1st PARTY
2nd PARTY
3rd PARTY
Generated by client’s sites and campaigns
Mobile App Data
CRM Data
Point of Sale Data
Lists
Owned by the client
Generated by platform delivery advertising
Owned by the platform
Generated by an independent party, usually available for purchase
Owned by the provider

21. OPPORTUNITIES IN THE MARKET
PROGRAMMATIC TRENDS
OPPORTUNITIES IN THE MARKET
For internal communications and client presentation only. Information or views presented in this post do not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.

22. GROWTH OF PROGRAMMATIC DIGITAL DISPLAY AD SPEND IN US
67.9%
GROWTH
Growth in Programmatic Display Ad spend YOY 2016

23. PROGRAMMATIC GROWTH 67
84.5 49
67% y-o-y growth anticipated in programmatic
Programmatic slated to be 67% of all display spend, up from 59% in 2015
While desktop display is flat, programmatic video will increase 84.5%, and mobile is up $6bn (77%)
Programmatic expected to represent 40% of all video and 69% of all mobile in 2016
Sources: emarketer, “the state of us digital advertising 2016,” 3/30/16; Emarketer, “US mobile video advertising 2016”, 5/2/16

24. THE EXCHANGE SHIFT
10%
Display’s share of RTB total volume continues to shrink – its 2016 share will be nearly 10% lower than 2015.
57%
Mobile volume will double over 2015 levels, while video spend will increase 57%.

25. CROSS-VERTICAL IMPACT
PROGRAMMATIC AS % OF ALL DISPLAY SPEND
PROGRAMMATIC SPEND BY VERTICAL
HEALTHCARE & PHARMA
TRAVEL
ENTERTAINMENT & MEDIA
COMPUTING & ELECTRONICS
MEDIA
AUTO
TELECOM
FINANCIAL SERVICES
CPG
RETAIL
Source: emarketer, “Digital Display ad spending, by industry,” 6/1/15

26. HOW BUYS ARE EXECUTED SSP (supply side platform) DSPs
Publisher ad server: “Do I have a guaranteed impression?”
STEP 2
YES
GUARANTEED AD SERVED!
USER request’s web page
User is a woman, 25-34, Fashionista
STEP 1
SSP (supply side platform) NO
$0.96
DSPs: “who is this? Do we want to bid?”
DSPs
“Hey, DSP’s – we have someone!”
$2.10
$0.47
pass
$0.95
STEP 3
Highest bidding DSP wins the ad impression, delivers creative
STEP 4

27. GLOSSARY OF TERMS
For internal communications and client presentation only. Information or views presented in this post do not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.

28. GLOSSARY OF TERMS
PROGRAMMATIC: An automated method of buying digital advertising in which supply and demand partners make decisions on a per-impression basis and adhere to business rules as provided by the operators of each platform
REAL-TIME BIDDING: a type of programmatic buying by which multiple parties submit bids in real-time for a piece of inventory in a reduced price auction, to which the winning advertiser delivers creative
OPEN EXCHANGE: a biddable open market system in which any seller can make digital inventory available for purchase by any buyer
PRIVATE EXCHANGE: a biddable environment in which a publisher can limit access to inventory to certain advertisers with established pricing rules
PROGRAMMATIC DIRECT: a one-to-one inventory relationship between publisher and advertiser, agency, or platform that delivers media through programmatic technology based on agreed upon business terms
DEMAND SIDE PROVIDER: a technology platform that allows advertisers to programmatically acquire inventory through rule set creation
SUPPLY SIDE PROVIDER: a technology platform that allows publishers to programmatically fulfill inventory to various parties – direct buyers, exchanges, etc. – through rule set creation
DATA MANAGEMENT PLATFORM: a data store that uses a persistent identifier to store data at a disaggregated level pertaining to campaign performance, client data, and audience attributes

29. GLOSSARY OF TERMS
1ST PARTY DATA: audience attributes generated from digital and non-digital assets belonging to an advertiser or publisher
2ND PARTY DATA: audience attributes generated by platforms or advertisers through a data integration from a relevant publisher
3RD PARTY DATA: audience attributes from a single source or aggregator made available for purchase by advertisers
AUDIENCE MODELING: a method of audience creation in which data science is applied to a modeling dataset based on a seed dataset to create a predictive targeting group
USER-LEVEL ANALYTICS: directional data insights based on aggregate learnings from each user exposed in a campaign
ATTRIBUTION: the method by which addressable media is assigned credit or value for a measured outcome
VIEWABILITY: the measured ability of a user to view an ad on a webpage
FRAUD: the delivery of advertising in a duplicitous environment, whether to non- human bot traffic or by manipulating ad placement on a webpage
ALGORITHMIC BUYING: automated acquisition of inventory based on machine learning based on a single outcome or criteria, regardless of defined audience attributes

30. XAXIS 101 SERIES
THANK YOU
For internal communications and client presentation only. Information or views presented in this post do not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.