Data Xu&Gemius_Digital Beyond Borders_Kiev_20150617
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The document discusses programmatic marketing and how to be successful with it. It provides an agenda that includes an introduction to DataXu as a leader in programmatic advertising technology. It then covers what programmatic marketing is, how the programmatic industry and buying process works, examples of success stories, and five factors for success. The presentation aims to equip attendees with an understanding of programmatic marketing and how to adopt it effectively.
![Confidential | 5
“Strongest Current Offering”
“By trying to solve marketer challenges that go
beyond digital media buying, DataXu has set
itself apart as a more complete solution for
marketers… [DataXu] has the most unique
tool for helping marketers plan offline and
online investments at the most granular level.”
-Forrester Research Inc
The Forrester Wave™: Demand-Side Platforms
(DSPs) Q2 2015
The Forrester Wave™ is copyrighted by Forrester Research, Inc. Forrester and Forrester
Wave™ are trademarks of Forrester Research, Inc. The Forrester Wave™ is a graphical
representation of Forrester's call on a market and is plotted using a detailed spreadsheet with
exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or
service depicted in the Forrester Wave. Information is based on best available resources.
Opinions reflect judgment at the time and are subject to change.](https://image.slidesharecdn.com/dataxugemiusdigitalbeyondborderskiev20150617-150623080549-lva1-app6892/85/Data-Xu-Gemius_Digital-Beyond-Borders_Kiev_20150617-5-320.jpg)
Data Xu&Gemius_Digital Beyond Borders_Kiev_20150617
- 1. Gemius Digital Beyond Borders 2015: How to Equip For The Successful Use of Programmatic Marketing Kiev, 06/17/2015
- 2. Confidential | 2 Agenda • Who is DataXu? • Introduction to Programmatic Marketing • Programmatic Industry • How it Works • Programmatic Adoption • Success Stories • 5 Factors of Success • Q&A
- 4. Confidential | 4 Leaders in Industry Innovation Successful #1 Fastest Growing Advertising & Marketing Company Scientific Data Science born out of MIT and Used by NASA Seasoned Founding team still at the helm “DataXu is the number one offering in market” Innovative Operating in 50 countries Global Born as a software company, not an ad network Aligned Lighting the Way to Marketing ROI
- 5. Confidential | 5 “Strongest Current Offering” “By trying to solve marketer challenges that go beyond digital media buying, DataXu has set itself apart as a more complete solution for marketers… [DataXu] has the most unique tool for helping marketers plan offline and online investments at the most granular level.” -Forrester Research Inc The Forrester Wave™: Demand-Side Platforms (DSPs) Q2 2015 The Forrester Wave™ is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave™ are trademarks of Forrester Research, Inc. The Forrester Wave™ is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
- 7. Confidential | 7 An automated marketing approach that uses data, analytics, and real-time software to deliver the most relevant message to the right person in the right context for optimal return on investment. Definition: Programmatic Marketing
- 8. Confidential | 8 The Digital Lifestyle launched the age of the consumer
- 9. Confidential | 9 Consumer behavior has gone “digital.”
- 10. Confidential | 10 Juggling connected devices is the norm.
- 11. Confidential | 11 Changes in Consumer Behavior: Who is the Omni-channel consumer? Sports Sports Morning Afternoon Evening 41% of device switching comes from users trying to continue the same task.* … but marketers lose track of the consumer when they switch devices *Source: Facebook Programmatic IO Conference The average person has 4 devices
- 12. Confidential | 12 What Marketers Want Conversion Path in Real Time See multi-device conversion and path analysis Improved Efficiency Deduplication of Channels Link TV Campaigns Bridge digital and TV campaign data Message Control Sequence messages across devices Accurate Frequency Unified counting across all devices
- 13. Confidential | 13 Channel-Centric Planning is Inefficient Goals: Last-Click CPA Vendor/Publisher: The Trade Desk, AdRoll, Criteo, GDN Goals: Brand Lift, Completed Views Vendor/Publisher : TubeMogul, AdapTV Goals: CTR Vendor/Publisher : Millenial, Fiksu Siloed Channels make it difficult to switch budgets, optimize, and report Goals: GRPs Vendor/Publisher: MSO 100% TV 10%60% Display 30% Video Mobile TV Budget Digital Budget
- 14. Confidential | 14 “People-centric” puts faces over places.
- 15. Confidential | 15 Real-time Customer Engagement Today Customer-Centric Messages across all formats & devices is essential
- 16. Confidential | 16 Introduction to Programmatic Marketing Demystifying Programmatic Marketing
- 18. Confidential | 18 The Ad-Technology Value Chain Ad Inventory Sources Demand Side Platforms (DSP) Holding Company Agency Trading Desk Data Providers Ad Verification Technologies Premium Publishers Ad Networks Ad Exchanges Supply Side Platforms (SSP) Agency AgencyBrand Customer Advertiser More: 1) Lumscape (“The Original”) 2) EU Ecosystem
- 19. Confidential | 19 Ad Networks vs. Exchange vs. DSP • Typically purchase inventory in blocks, at fixed prices, not at an impression level • Arbitrage inventory – buying low from publishers and selling high to advertisers • May purchase low-cost inventory on exchanges and mark up by as much as 40% • No impression-level decisioning • No cost transparency • Open marketplace that services buyers and sellers in a bidding environment • Can integrate with a DSP to layer 3rd party data • Exchanges make up one part of several inventory sources accessible via DSPs • Charge a transaction fee for each impression • Software platform used to access Inventory Sources, Data Partners, and allow for optimization, bidding, and reporting in real-time, hundreds of thousands of times per second • Decision algorithms allow campaigns to "learn" and optimize • Charge software licensing fees, either based on usage or percent of spend • Can provide completely transparent costs and impression-level decisioning Ad Exchange • “Yield Manages” unsold direct inventory at lower CPMs than direct • Can send impression to an Ad Network • Can send the impression to the “Exchange” for bidding or private deals through real time bidding (RTB) • Optimization algorithms are applied to maximize publisher benefit • Charge a transaction fee for each impression Ad Network Sell Side Platform (SSP) Demand Side Platform (DSP)
- 20. How it Works
- 21. Confidential | 21 The Programmatic Difference Traditional Execution • Plan and revise quarterly • Buy blocks of impressions • Fixed price dynamics • “Averaged” audience insights • Static • Faith & Opacity Programmatic Execution • Execute and optimize in real time • Buy individual impressions • Dynamic pricing efficiencies • 1:1 consumer insights • Dynamic • Science and Transparency $ $$ $$$ $$$
- 22. Advertisers Buyers Sellers Publishers Consumer attention is a biddable asset.
- 23. Confidential | 23 Real Time Bidding: How it Works Denys & Yulia go to olx.ua on their devices Request ad from publisher ad server Redirect to ad exchange Send to real-time bidders • DataXu • Bidder 1 • Bidder 2 Winner (DataXu) serves ad Each person sees a unique ad Yulia sees a L’Oréal ad Denys sees a Kia adDenys Yulia
- 24. Confidential | 24 Classic planning is based on fixed values - Volume-time-booking Budget Impressions Clicks Real-Time-Advertsing is dynamic and only has the budget as fixed value - Budget-(time)-booking Conclusion: Real-Time-Advertising optimizes towards maximum ROI. Important: Additional adserving costs (due to overdelivery) need to be taken into consideration. ToDo: Mediaplans need to adapt to dynamic models. dCPM/IMPS eCPC/Clicks Budget Traditional Planning vs. Programmatic
- 25. Confidential | 25 Runtime in days CPM in € 60% 50% Network‘s effective CPM Client‘s fix CPM Client‘s max. CPM Effective CPM incl. DSP fee Buying advantage Runtime in days CPM in € Traditional Planning Programmatic Planning Traditional Planning vs. Programmatic
- 26. Confidential | 26 How Does The DSP Select The Ad? Determine a brand’s unique attributes and appeal in real-time, then optimizes a precise match for every impression Standard & Custom Variables 1. Excel in thin data environments to maximize reach of decisioning models 2. Use champion-challenger system to continuously improve performance 3. Out-of-the-box algorithm variations tuned for specific use cases • Concept • Unit size • Media type • … C R E AT I V E C O N S U M E R • Location • Interaction with advertiser’s site & ads • Demographics • Purchase intent behavior C O N T E X T • Content category • Publisher • Exchange • Time of day • Day of week • …
- 27. Why would one buy media this way? Total price for bag of apples: $100? Price per red apple: $5 Price per green apple: $1
- 28. Confidential | 28 • The digital media ecosystem has evolved to enable more granular measurement • Brands have learned that all impressions are not created equal, even on the same website • Paying a flat rate for large blocks of media enables arbitrage and sell-side profit margin • Buyers capture significant gains by evaluating and purchasing impressions one at a time • Transparent, impression-level decisions drive efficiency and effectiveness for the brand Why do brands buy media this way?
- 29. Confidential | 29 Why would one sell media this way?
- 30. Confidential | 30 Digital media is highly dynamic.
- 31. Confidential | 31 • Digital media supply has rapidly outgrown demand • Fragmentation of consumer attention has eroded direct sales leverage • Digital media supply is dynamic and perishable • Publishers are increasingly embracing programmatic, and not just long-tail websites • Innovative transaction models have emerged to offer “premium programmatic” options Why do publishers sell media this way?
- 32. Confidential | 32 Programmatic: From Direct to Exchange Private Exchanges Direct w/ Programmatic Exchange Media Direct Media Guaranteed Direct Publisher Contracts Exchange cleared with special prioritization Open Exchange Media Buying Guaranteed Direct Publisher Contracts What are they? Who can participate? How is it accessed? How is it priced? Who do you pay? Advertisers with direct contracts Advertisers with direct contracts Advertisers approved by publisher Advertisers approved by exchange Via ad server tags Via ad server tags Via an exchange Via an exchange What inventory is typical? Direct publisher inventory Direct publisher inventory Prioritized publisher inventory Exchange inventory Fixed price. Determined by IO Fixed price. Determined by IO Auction with floor or Fixed Price. First look option Auction priced Advertiser pays publisher for media Advertiser pays publisher for media and DSP tech fees Advertiser pays DSP for media and any tech fees Advertiser pays DSP for media and any tech fees
- 33. Confidential | 33 Complete Media Buying Everywhere Programmatic buying across 100% of your digital media plan. • Chosen environment • Chosen placements • Audience Targeting • Right ad • Pre-negotiated price • Chosen environment • Audience targeting • Auction Price with Minimum • No guarantees • Contextually relevant • Audience Targeting • Auction Price • Display, mobile, social, & video Private Exchange Open Exchange Direct Buys Display, mobile, & video
- 34. Confidential | 34 Example of Inventory Partners Display MobileVideo Latest partner list: Who We Partner With
- 36. Confidential | 36 Global Programmatic Category Spend 9 11,5 14,5 19 21 25,55 9,5 13,5 18 23 27,5 2013 2014 2015 2016 2017 2018 $21 $28 $36 $44 $53 Spend(Billions) $14 US Non-US “The total programmatic market will grow from $13.6bn in 2013 to $20.8bn in 2014 and to $53.3bn by 2018 on a global basis.” Magna Global: The Evolution of Programmatic Buying, September 2014
- 37. Confidential | 37 Programmatic Status Quo: Global Source: May 2014, Magna Global
- 38. Confidential | 38 Programmatic is Scaling Rapidly: Europe Source: May 2014, Magna Global
- 39. Confidential | 39 1) Programmatic active in EU5 and Nordics for several years, still new in CEE and Southern Europe 2) Agency Trading Desks start with regional hubs 3) Google Display Network and non-exchange Facebook are strongest players 4) 1st party data critical as less 3rd party data available 5) Local 3rd party data providers expected 6) Mobile and video follow display growth quicker than in other markets as technologies are developed Programmatic Growth Considerations: More: Gemius DİJİTAL HARİTALAR
- 40. Confidential | 40 Customer Lifetime Value Mobile Payments and Beacons Perpetually Persistent IDs Increasing Marketing ROI Customized Enterprise Deployments Programmatic Purchase of All Media Programmatic TV Programmatic Trends to Watch
- 41. Success Stories
- 42. Confidential | 42 Targeting Tactics Work Together To Fuel Performance Prospecting Retargeting New Leads Driven By DataXu Hand Raisers Coming to Site 51%46% 3% Major Auto Brand seeking to retarget consumers and acquire new leads 3% of users exposed to prospecting & converted to leads right away 46% of users came to site through prospecting & were converted to leads over time by retargeting 51% of users came to site without prospecting & were converted by retargeting Prospecting Plays a Key Role in Driving Conversions Conversions
- 43. Confidential | 43 Airline Client Case Study Viewability Helps Travel Take Flight Decrease Cost Per Booking (Purchase) Optimize to viewable impressions in order to drive true performance and engagement, while maintaining reach and scale Viewability* & Performance 47%Increase in Viewability 36%Decrease in Cost Per Booking *Viewability measured by DoubleVerify Challenge: DataXu Solution:
- 44. Confidential | 44 How Retail Clients Benefit From Programmatic Markting &
- 45. Confidential | 45 Campaign Overview Briefing: Prospecting Increase online sales Strategy: Run of Network (RON) Retargeting Goal: Reduce Cost-per-Order „For many years we‘ve relied on DataXu’s technology and service to achieve positive results for our clients. Especially with this campaign for a leading retailer, DataXu exceeded both our expectations and those of the client!” Stefan Doll, Head of Media, metapeople/metaapes GmbH
- 46. Confidential | 46 Advanced Insights On what day and at what time was the creative performance the best? What influence does the creative format have in different regions?
- 47. Confidential | 47 Successful results Over several months, DataXu’s leading RTA-Technology and the experienced German service team made this campaign a great success DataXu achieved a CPO that was 16% under the client’s target CPO. With the campaign, this leading German retailer saw a 26% increase in new customers. The DataXu platform revealed deep insights into multiple campaign variables, e.g. what creative performed best in what region or at what time. In this case, the 468 x 60 ad size in the Nielsen regions 3a and 3b achieved the best performance.
- 48. Confidential | 48 How Entertainment Clients Benefit From Programmatic Marketing &
- 49. Confidential | 49 The Brief: Amplify reach across French internet users Generate high levels of engagement while maintaining a low cost per view The Strategy: Run of Network (RON) Run on Sites (ROS) – targeting audiences on over 30 leading French video publishers The Goal: Drive a high video completion rate „We‘ve been closely collaborating with DataXu over the past months. We‘re impressed by the mix of performance and service DataXu offers, combined with a visionary approach regarding omni-channel marketing. This video campaign was a great example of how DataXu helped us to exceed our clients‘ expectations.“ – Julien Duval, Associate Director, Labelium Inside Campaign Overview
- 50. Confidential | 50 Do some creatives work better in certain regions? How does the performance vary during a weekday or during the weekend? Advanced Insights
- 51. Confidential | 51 DataXu delievered more than 3 million Video Impressions during the 4 week period & over 60% of users that started the ad also completed it 92.63% 84.92% 79.03% 60.37% Watched 1/4 of Video Ad Watched 1/2 of Video Ad Watched 3/4 ofVideo Ad Completed Video Ad The Results DataXu achieved a cost per view (CPV) of 0.01 €, which equals more than 220,000 video completions Campaign insights can be as valuable as market research: - High performance amongst 25-34 year olds - Best results in the South–East of France during the evening hours on weekends
- 52. Confidential | 52 950,000 3,068,684 Competitor DataXu DataXu achieved an additional 2 million Impressions Benefits for the Client DataXu was able to reduce the client‘s CPM rate by a third compared to other providers: Achieved more than 60,000 € budget savings or an additional 2 million Ad Impressions for the same media budget
- 53. Confidential | 53 Pixum Builds Brand Awareness With Digital Video &
- 54. Confidential | 54 Campaign Goals Increase branded searches (rather than generic keyword searches) Lower overall cost-per-conversion Generate new customers Hypothesis Digital video advertising will build Pixum brand awareness The Brief
- 55. Confidential | 55 The Methodology: Pulsing Conduct comprehensive effectiveness analysis Campaign modelling based on generated data Run campaign across different geographic regions Employ different pulse (investment) schedules
- 56. Confidential | 56 Test the impact of video advertising on branded search and website traffic using the DataXu pulse method Measure the number of page views, searches for “Pixum”, actual software downloads and sales Analyse and compare regional differences The Methodology: Pulsing
- 57. Confidential | 57 Region 1 and 2 had similar outcomes, showing an overall growth in clicks The video campaign led to increased search volumes, resulting in a positive ROI from digital video advertising for Pixum Region 1 Region 2 Region 3 The Results
- 58. Confidential | 58 Total clicks increased as video advertising investment grew The model shows that CPC is expected to decrease over time -10% -8% -6% -4% -2% 0% 0 50 100 150 0% 10% 20% 30% 40% 50% 0 50 100 150 Video investment (Euro/1M people in a day) Organic Paid Click Volume Growth In Region 1, organic clicks grew faster than paid
- 59. Confidential | 59 Determined optimal marketing investment for all three test regions Gained new customers Detailed campaign analysis Campaign Results
- 60. Programmatic Marketing in Practice: 5 Factors of Success
- 61. Confidential | 61 1) Campaign Goal And Attribution Model Source: Out with the Old Take Aways: 1. Plan, optimize and measure campaign success based on actions directly tied to actions 2. Identify actions that demonstrate significant interest in your campaign 3. Value the View: Focus on audiences that have a propensity to convert
- 62. Confidential | 62 2) Data Strategy 1. Leverage 1st party data. It’s the advertiser’s data, not the media owner’s. 2. Data strategy example: 1. Learning Pixel: 1. Homepage 2. Landingpage 3. Shopping Cart/ Order Process 2. Conversion Pixel: 1. Soft Conversion 2. Final thank you page 3. Ask for learnings: How does your data influence your marketing investments?
- 63. Confidential | 63 CONVERSIONAWARENESS CONSIDERATION| | Prospecting Retargeting OMNI-CHANNELTARGET AUDIENCE Geofencing 3rd Party Audience Targeting Contextual & Site Targeting 3) Enhance Performance At All Points During the Sales Funnel
- 64. Confidential | 64 Geo Targeting Retargeting Device Targeting Prospecting/ Look-a-like Modeling Audience Buying Contextual Targeting 4) Optimization: Algorithm Marketplace Algorithm Variations tuned for specific use cases Model & Predict behaviors to reach more customers Test and Learn to continuously improve performance
- 65. Confidential | 65 5) Brand Safety BRAND SAFETY LEVEL 4 $$$$ CLIENT LIST CLIENT SPECIFIED SITE LIST LEVEL 3 DYNAMIC SEMANTIC WHITELIST$$$ DOES NOT ALLOW UNCATEGORIZED, ANONYMOUS, OR IAB “NON-STANDARD” INVENTORY. LEVEL 2 DYNAMIC SEMANTIC BLACKLIST $$ REMOVES CONTENT IN IAB “NON-STANDARD” CATEGORIES. ALLOWS ANONYMOUS INVENTORY. LEVEL 1 $ AD EXCHANGE FILTERS BASIC BRAND SAFETY PROVIDED BY EXCHANGES BLOCKS MOST OBJECTIONABLE CONTENT INCREASING BRAND SAFETY DECREASES REACH AND INCREASES COST OF MEDIA Suspicious Clicks Quality Scoring Malware and Virus Scans
- 66. Confidential | 66 • Guaranteed 97% fraud-free “real people” investment • If you experience a fraud rate greater than 3%, DataXu will: – Refund 100% of the DataXu fees associated with the fraudulent media >3% – Refund 100% of all amounts recovered from the suppliers of that media 5) Ad Fraud Protection World-Wide Omni- Channel FreeNo action required
- 67. ДЯКУЮJost Löhnenbach Head of Sales, New and Emerging Markets - Europe jloehnenbach@dataxu.com Link to more resources. Question & Answers