Ali Plonchak works at Crossmedia, a New York City-based media agency. Plonchak is a group director and responsible for agency development.
CMSWire caught up with her near the company's Los Angeles office for a quick tutorial on the process of buying and selling advertising through automation — a concept known more commonly as programmatic.
She shares her thoughts in an easily consumable 2-minute video snack in the inaugural edition of a CMSWire feature called Tell Me About.
Buying and Selling Digital Media
Programmatic is a big word in the industry today.
A lot of people talk about it but not everyone knows exactly what it means.
Very simply, programmatic is the process of taking data and media inventory and then putting them together and bidding on them in an automated fashion.
The first thing — data — can come in many forms.
Most marketers understand that they have first party data This is data generated, for example, when a consumer comes to your website and logs in. You can then take that data and market to those consumers in a variety of ways.
The other type of data you may have is third-party data. This is data that's available in the world of big data and comes from a lot of other sources.
Say, for example, Experian takes credit card data, anonymizes the consumers and then allows marketers to target based upon the data.
For example, if I want to target consumers who have purchased a lot of barbecue equipment in the past 12 months, I could buy Experian data and target those consumers.
The data side is how you will target in programmatic. However you also need that media to run somewhere.
So you need to layer that with media inventory in the space. There are a couple different ways you can do that.
One is through exchanges that basically run advertising on a lot of websites across the Internet. Another is through private marketplace deals. In this case, you create deals with specific websites to layer on your data to reach targeted consumers on those sites.
Once you put those two things together — data and media inventory — you use a technology to bid on them in an automated fashion.
When you're doing that as a marketer, generally that's called a DSP or a demand side platform.
So again you take your data, you take your media inventory, you combine them in a DSP and you market to your consumers.
(Full Disclosure: Ali Plonchak is the daughter of CMSWire Editor Noreen Seebacher.)