What programmatic marketing really means for research
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The document discusses the transformative impact of programmatic marketing on traditional advertising practices. It highlights how programmatic advertising enables advertisers to target specific audiences in real-time using data, shifting the responsibility from media companies to advertisers. The author emphasizes the need for marketing research to adapt by integrating digital data and adopting a predictive mindset to stay relevant in this changing landscape.
What programmatic marketing really means for research
- 1. Why programmatic marketing changes everything (and, what it means for researchers) Joel Rubinson, President Rubinson Partners, Inc. joel@rubinsonpartners.com Blog.joelrubinson.net Twitter: @joelrubinson October, 2015
- 2. Property of Rubinson Partners. Not to be shared without permission Traditional media buying Media accumulates an audience Marketers seek consumers Nielsen ratings Overall, within demo Profiles of who watches Cost for a 30” spot Who does Unilever want to reach with their message Audience accumulated by media Media company responsible for knowledge about the audience Indexing Intuitive matching of audience profiles and marketer segments, aided by optimization software Direct deals with commitments
- 3. Property of Rubinson Partners. Not to be shared without permission Traditional media buying Media accumulates an audience Marketers seek consumers Nielsen ratings Overall, within demo Profiles of who watches Cost for a 30” spot Who does Unilever want to reach with their message Audience accumulated by media Media company responsible for knowledge about the audience Indexing Intuitive matching of audience profiles and marketer segments, aided by optimization software Direct deals with commitments All of this changes in a All of this changes in a programmatic advertising world programmatic advertising world
- 4. Property of Rubinson Partners. Not to be shared without permission Quintessential programmatic…real time bidding (RTB), open exchange 1. A user requests a webpage which generates an ad impression serving opportunity 2. Publisher decides to put this impression up for bid via RTB 3. If the advertiser knows something about this user and they are valuable to them, they bid for the right to serve an impression 4. The winning bid serves the creative asset of their choosing
- 5. Property of Rubinson Partners. Not to be shared without permission Programmatic marketing is a big deal eMarketer pegs programmatic at $15 Billion this year, having grown 50% Carat reports that, in the US, programmatic transactions will account for 52% of non-search digital advertising spend. The marketer’s dream…serve the right message to the right user at the right time on the right screen.
- 6. Property of Rubinson Partners. Not to be shared without permission Programmatic is like picking the cashews out of the bowl of mixed nuts*! Advertisers can pick the audience they want to serve impressions *Metaphor courtesy of Josh Chasin, Chief Research Officer at comScore
- 7. Property of Rubinson Partners. Not to be shared without permission Programmatic is a sea change in the way marketing works 1. The advertiser amasses the audience based on their own ad serving rules…bottom up approach 2. It is now the advertiser’s responsibility to know each audience member 3. All of this is driven by data, the new competitive fuel 4. Better fuel = better performance, making data its own imperative. a. Boosts the value of first party data. b. Drives marketers to connect the screens using a persistent ID c. Makes content marketing and “always on” marketing strategies much more important. d. Drives media practices to embrace programmatic everywhere
- 8. Property of Rubinson Partners. Not to be shared without permission
- 9. Property of Rubinson Partners. Not to be shared without permission The power of data…hypothetical A browser who, in reality, is a male millennial who buys tooth whitening products, visits Huffington Post, and the instance is put out for bid. Procter: has this user in their DMP because they visited their web properties and they signed up for e-mails (registration gives accurate demos—first party data.) Working with Datalogix, they know this “browser” buys tooth whitening toothpaste via frequent shopper data. Colgate: Working with a DMP and data aggregator, they believe this is a male aged 35-44. Result: Procter will win this bid because what they know about the user makes them more valuable. Marketing efficiency comes purely from the power of data. If this is repeated over and over, Procter will have a huge marketing efficiency advantage over Colgate, over and above any issues regarding the strength of Crest vs. Colgate
- 10. Property of Rubinson Partners. Not to be shared without permission There is only one way this can go…
- 11. Property of Rubinson Partners. Not to be shared without permission Programmatic change table Traditional Programmatic Media owns audience…top down process Advertiser accumulates audience…bottom up process Media must know audience Advertiser must know something about each user Buys are pre-established and advertising is scheduled Advertising can be adjusted in real time by changing bidding and ad serving rules Buying on context Buying on user characteristics Decisions based on generalizations Decisions based on tactical user data Does NOT require data driven marketing DOES require data-driven marketing Traditional research can guide this Traditional research disconnected from this process Analytics are retrospective and descriptive Analytics are predictive
- 12. Property of Rubinson Partners. Not to be shared without permission Programmatic implications for marketing research Traditional Programmatic Media owns audience…top down Advertiser accumulates audience…bottom up Media must know audience Advertiser must know something about each user Buys are pre-established and advertising is scheduled Advertising can be adjusted in real time by changing bidding and ad serving rules Buying on context Buying on user characteristics Decisions based on generalizations Decisions based on tactical user data Does NOT require data driven marketing DOES require data-driven marketing Traditional research can guide this Traditional research disconnected from this process Analytics are retrospective and descriptive Analytics are predictive
- 13. Property of Rubinson Partners. Not to be shared without permission In a programmatic world, Marketing research’s role is to keep marketing strategic, productive, and centered on the human “I believe in the power of connected ideas” Christian Kugel, Director Marketing Research and Consumer Analytics, AOL But marketing research must also be actionable at optimizing tactical action Otherwise, it will be dismissed as irrelevant
- 14. Property of Rubinson Partners. Not to be shared without permission Segmentation: Are your segments “findable”? Can you build good lookalike models?
- 15. Property of Rubinson Partners. Not to be shared without permission Brand equity: Can you create predictive models using profiling attributes?
- 16. Property of Rubinson Partners. Not to be shared without permission Brand equity modeling must include response modeling BEijt= f(Aijkt) Predicting brand equity as a function of attribute ratings R0,1=f(DPi,T,S,…) Predicting response…clicks or brand equity… from digital profiling, time of ad serving, screen, etc.
- 17. Property of Rubinson Partners. Not to be shared without permission So what’s missing?
- 18. Property of Rubinson Partners. Not to be shared without permission Top priority 1: integrate survey and digital data We must learn how to integrate digital and survey data together, or what I think of as, “Going beyond the survey”
- 19. Property of Rubinson Partners. Not to be shared without permission Enriching survey data Lightspeed and GMI offer the ability to survey people who can be matched to digital data profiles You can survey people whose digital behaviors are known
- 20. Property of Rubinson Partners. Not to be shared without permission LiveRamp
- 21. Property of Rubinson Partners. Not to be shared without permission Top-priority 2: Real-time data systems By integrating digital profiling information, marketing research can improve media agency bidding and targeting rules while in-flight This can improve marketing productivity by 10-20%
- 22. Property of Rubinson Partners. Not to be shared without permission Top-priority 3: connect the screens Increasingly, the consumer media day includes use of multiple screens. To fully understand the consumer journey, research must connect use across screens in a consumer- centered way
- 23. Property of Rubinson Partners. Not to be shared without permission Top-priority 4: adopt a predictive mindset Integrate digital and social data metrics that can have predictive value and then build these linkages Think t+1, not t-1. Foresight…see what is coming next
- 24. Property of Rubinson Partners. Not to be shared without permission A predictive mindset Traditional marketing research: questions about the past Data science: questions about the future Campaign assessment Campaign optimization What is the profile of our current customers? How do we identify lookalikes for our current customers for ad targeting purposes? What brand attributes define our positioning? What targetable behaviors, preferences and conversations in social and digital data identify those most likely to respond to our advertising? What media expenditures most correlate to sales? What message delivered on what screen, in what context, to which user is most likely to generate positive response? What is the mix of products people buy on given shopping trips? What should the retailer overstock for the upcoming storm? What is our trial forecast? How do we target likely triers?
- 25. Property of Rubinson Partners. Not to be shared without permission And what might be coming next? Programmatic TV is here…it affects a small percent of inventory TODAY, but it is coming so get ready for the avalanche IoT use case: digitalizing the home replenishment process
- 26. Property of Rubinson Partners. Not to be shared without permission An amazing opportunity to create disruptive offerings http://blog.joelrubinson.net/2015/07/what- marketing-research-must-do-differently-in- a-data-driven-age/
- 27. Property of Rubinson Partners. Not to be shared without permission Joel@rubinsonpartners.com Blog.joelrubinson.net Twitter: @joelrubinson Thank you!
Editor's Notes
- #2: Joel to create the template