5 Reasons Why A Programmatic Approach is the Smartest Marketing Decision You'll Make This Year
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This document discusses the benefits of a programmatic marketing approach and data-enabled marketing. It argues that programmatic is the most powerful way for marketers to efficiently reach customers using their own customer data and signals. It also discusses that programmatic marketing provides access to global video, mobile, social and display inventory and can optimize campaigns based on return on investment and cost per acquisition metrics. Cookies are declining in usefulness due to multiple devices and browsers, necessitating new technologies for recognizing devices. Programmatic bidding uses goal value and action rate to determine optimal bid price.
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5 Reasons Why A Programmatic Approach is the Smartest Marketing Decision You'll Make This Year
- 1. 5 Reasons v a Programmatic First approach is the smartest marketing decision you’ll make in 2015
- 5. Warning Impending Wanamaker quote
- 6. But Ross, didn’t Search make the media problem go away?
- 8. Most powerful way for marketers to efficiently and effectively reach its customers
- 9. Own your own home?
- 10. Or rent for life?
- 11. Use your own signals to drive profitable marketing. No one else has these signals. Data enabled marketing
- 12. Programmatic Marketing isn’t just RTB…
- 13. Most powerful way for marketers to efficiently and effectively reach its customers
- 14. Global Cross-Channel Media Access Video Access over 86B global monthly video impressions Full video ad serving capabilities Enhanced video targeting by player size, format type, device type, etc. Mobile Expansive mobile supply, with over 600B global monthly mobile impressions Mobile specific targeting of all device and OS types, as well as across mobile web and mobile app inventory Social Leverage your 1st and 3rd party data across Facebook Serve the right ad to the right person with dynami c creative on FBX Activate your 1st party to retarget on Twitter Display Over 80 billion impressions daily Over 30+ display partners Optimization, targeting, and reporting across all of your campaigns
- 16. + Multiple Browsers Declining Usefulness and Devices Cookies are only recognized on one device and one browser, making it impossible to target across devices Growth of Cookieless Environments Cookies are not supported in certain browsers and in mobile apps, leading to a large pool of devices which cannot be recognized of the Cookie Due to the growth of cookieless environments and an increase in multi-device usage, new device recognition technologies are needed The State of The Cookie
- 17. Finding the goldilocks impressions
- 18. What is the right bid for each impression? Too high Overpay & underperform Too low Lose out & underspend Just right Maximise scale & performance
- 19. Pop Quiz Flip a coin to win the prize $1000 prize 50% chance $500 Bid Price Goal Value x Action Rate = Bid Price
- 20. In the real world Programmatic bidding … Goal Value x Action Rate = Bid Price 1% chance consumer takes desired action (purchase) $1000 value to advertiser (CPA) $50 bid price (breakeven) Your ad here
- 22. ROI Optimisation – Early Results ROI Campaign (indexed) • ROI: 10.09x 15% • AOV: 1.55x • CPA: 7.13x CPA Campaign (indexed) • ROI: 10.09x • AOV: 1.55x • CPA: 7.13x
- 23. CPMs & Site Transparency ROI Campaign CPA Campaign • CPMs (indexed): 1.00x • Site Transparency: • CPMs (indexed): 1.05x • Site Transparency: Site CPM ebay.com 2.03x aol.com 3.52x answers.com 0.69x zillow.com 1.41x weather.com 1.49x imdb.com 1.40x realtor.com 1.46x Site CPM ebay.com 2.18x aol.com 3.08x answers.com 0.63x zillow.com 1.60x weather.com 1.73x imdb.com 1.45x realtor.com 1.22x
- 24. It’s Not Easy … But It’s Not Rocket Science
- 26. The Future of Digital Media? 1. It's completely impossible. 2. It's possible, but it's not worth doing. 3. I said it was a good idea all along. --Arthur C. Clarke
Notes de l'éditeur
- Before we can explore the future, it really helps to examine the past. One could argue that since cave man times, advertising has been a perilous business. Our cave man friend here got replaced by a guy with a bigger and undoubtedly louder megaphone –- maybe that’s happened to you? PAUSE Or perhaps you’ve been daunted by the challenges of proving ROI, begging for budgets and applying the latest tools of the trade. But this conversation is about more than budgets and tools since there is a fundamental imbalance in the very process of buying media.
- So what’s behind this problem? Quite frankly, the biggest challenge is that Media sellers have always set the terms of trade… That’s right, Media vendors dictate the terms of trade to you the buyer-- saying “here’s my inventory, here’s my price” and other than a bit of haggling, you the buyer get nothing in terms of accountability. You end up buying a lot of inventory that becomes indistinguishable in terms of what matters most – did the media help you achieve your stated and measurable objectives?
- Sure media companies provide some metrics, but you the buyer can’t define or better yet refine the target to exactly what you want. Think of it this way, your typical media buy is like an average basket of M&Ms. Let’s say you only want to buy blue M&Ms—Too bad. As a result, you are always overpaying for your media since you are always getting the reds, browns, yellows and greens as well. And then there’s the issue of fragmentation. Media companies all operate independently with their own metrics and reporting systems further fragmenting your ability to make sense of it all, make it next to impossible for you to answer your CEO’s favorite question—what exactly is the ROI of our media spend?
- SO this troubling problem of accountability has been around for along time. No presentation is complete without Wanamaker, my point here is he said this around 1895! Meanwhile, 120 years later we’ve… -Sent rockets to the edge of the solar system -Published more content in a month than was created in the prior 5000 years -Increased life expectancy by two decades -Developed palm sized supercomputers that apparently still work as phones SO, how can it be that we still don’t know which half of our media dollars are working? How can this be acceptable?
- What about Search? For sure, Search was a great leap forward to Performance based pricing. But search has its limitations— Max out on spending – there comes a point where a dollar invested by every brand in search no longer provides a rational return. I suspect most of you are there already. Can’t build awareness – the reason search max’s out is that it alone can’t create demand for your product or service, it can only respond to it. To create demand someone needs to invest in awareness building, to create a stimulus that will then inspire someone to search for your category or better yet your specific brand. For this reason, few brands can live on search alone.
- And search doesn’t take into account the impact of other channels. Search is this lush tropical island—with lots of appeal—but it is nonetheless an island. And I’m not suggesting that Search will become a relic on Castaway Island like the items drawn in this cartoon (pause) but wouldn’t it be a lot better if your search results were integrated with the rest of your media? Wouldn’t it be better if you could connect the dots from your awareness building media to your search results? Thanks for the head nods -- it seems like many of you are ready embrace the future I’m about to detail.
- Programmatic fulfills the promise of one-to-one marketing, connecting wealth of consumer and behavioural data which delivered the intended result, offline or online. Programmatic allows this by consolidating a marketer’s data and activating it through addressable media outlets.
- Would you rather make a long term investment in an appreciating asset – paying off your own mortgage to own a beautiful home.
- Or continue to rent your audience back on a campaign by campaign basis. Fuelling the intelligence and efficacy of someone else’s business?
- Getting access to and coordinating use of all of your marketing data is step one, but let’s be clear, Big Data isn’t what’s interesting, Activating Big Data is. To start: we’re talking about the wealth of intelligence sitting in probably a couple of different systems that highlights who your customers are and what they are buying from you. This data can and should be leveraged not just for traditional CRM based efforts but can and should inform all your digital marketing efforts.
- MS: The words programmatic and RTB are not equal Search was the first programmatic marketplace Programmatic impacts all media types; changes how all media is executed… including TV (ultimately) Focus is enabling all investments to be connected to a single technology layer and influenced by marketer knowledge and learnings Creating a connected ecosystem that enables automation and puts the marketer in control
- Rather than see the consumer on desktop, then on mobile in-app, then later at the point of conversion, connect with consumers across devices, from PC-mobile, mobile-mobile, and PC-PC, with advertising creative altered for the channel or device and stage of the customer journey. For example, let’s say you belong to a bank and have a checking and savings account with that institution. You’re on your PC after work and you see a brand awareness video ad that offers you a cash back deal that’s deposited into your savings account –( a true cross-sell in that the bank knows you have a checking and savings account and wants you to take out a different type of account) Then you see a display ad on your tablet several days later that drives that point home – albeit with ad copy that is a harder sell –”act now” Finally, you’re on your phone after work and log into the bank’s mobile app – you’re displayed an ad within the app that speaks to the ease of use of mobile banking – “manage everything online with this mobile app” and offers a discount / reward to you as a valuable customer. You’re sold – you click through and sign up on their mobile optimized site. One financial service client employed just this sort of powerful, customized storytelling. The client had limited awareness for a new product and needed to build brand awareness and increase revenue from their current customer base. By dynamically optimizing the product offer shown, the client was able to cross-sell based on consumer action. Employing sequential messaging produced a 15% cross-sell rate to existing customers and a 96% increase in awareness of the product. The last client cast study I’d like to speak to attribution, the ability to associate advertising impressions (across display, video, mobile, search, and all other channels) to the outcomes they drive.
- CROSS-CHANNEL MEDIA It’s not just display Look at the recent flurry of acquisitions in the ad tech space – much activity around video. It’s not just RTB We have instances of multi-million $ clients investing 50% or more in PMP. Quantity with quality.
- Today, cookies enable targeting, attribution, optimisation, and analytics only with respect to browser-based traffic on a single device that accepts and retains cookies. ConnectedID will further enable targeting, attribution, optimisation, and analytics in the following usage scenarios: Cookie-less browser environments (e.g., Safari) Multiple browsers on the same device Apps on a mobile device Multiple devices (desktop, laptop, tablet, smartphone, and other devices – whether browser or app based) We believe that the cookie will gradually be replaced not by any single technology, but by multiple new targeting solutions in the marketplace – from large media companies such as Google, Apple, and Microsoft, from individual or collective publishers, SSPs and exchanges, from third-party providers such as AdTruth/Experian, LiveRamp, Acxiom, and from other sources – not to mention MediaMath’s own proprietary cookie-less & cross-device solutions. Marketers will need technology that seamlessly integrates these solutions for the purposes of targeting, attribution, analytics, and more. ConnectedID bridges those solutions – across cookie or cookie-less implementations, across deterministic or probabilistic signals, across partners, across channels, and across devices. When MediaMath sees a user, whether on a desktop browser, a mobile browser, a mobile app, etc., we assign that device a unique ID, which enables TerminalOne to recognise the device again (even if it doesn’t accept cookies). If a client, partner, or another provider with whom MediaMath syncs IDs generates their own ID for that user (e.g., via a cookie, first-party login data, probabilistic ID solutions, etc.), ConnectedID will link those together in our system. If the user is seen on another device, ConnectedID will link those devices using our cross-device association algorithm. The result is a mapping across all MediaMath and partner IDs and devices that will enable TerminalOne to target audiences and attribute actions across channels and devices.
- Growth of cookieless environments: New device recognition technologies are needed Increase in multi-device usage: New cross-device association technologies are needed Declining usefulness of cookie= MediaMath is taking lead on next-gen solutions ### The effective reach of the cookie is smaller than ever before – and cookies only worked to begin with when dealing with a single browser on a single device. Cookies have never addressed how users typically interact with advertising — multi-device activity, whether between tablets, smartphones, and whatever else's coming down the road (Google Glass?). Without the ability to message & measure across devices (or even effectively on a single browser and single device), cookies will not effectively be able to support either user targeting or conversion attribution in the future. We see consumers on site and on app on different devices, later on we see those same users in Media, and also see them at the point of conversion. Links together MediaMath & external targeting solutions across partners, channels & devices Connects cookie-based, cookieless, and cross-device signals – deterministic and probabilistic Enables targeting, attribution, optimization, & analytics in cookieless environments & across devices Will comply with industry privacy guidelines & local regulations, including robust consumer opt-out Deployment will begin in 2014 – a lot more details to come!
- Programmatic is not a race to the bottom. Buyers should not shy away from high CPMs. As a media buyer, you may naturally be averse to buying impressions with a high CPM via real-time bidding. But don’t forget that it isn’t the cost of the impression that matters; it’s the cost of the acquisition. High CPM impressions are worth every penny if they result in converting users for a lower CPA/CPC. The road to success in programmatic buying isn’t finding the cheapest inventory available. Every impression has value, the question which needs answered is … based on historical performance how much should I be willing to pay against my goal, and how much do I need to bid to win that impression. That’s a decision which happens millions of times a second during your campaign.
- What is the right bid for each impression? Which impressions should I buy?
- Where the action rate is determined based on all those variables This is done at scale across multiple impressions allowing a unique bid
- ROI Optimisation – early results versus CPA campaign ROI: 10.09x (increase of 15%) AOV: 1.55x (1.51x) CPA: 7.13x (8.02x)
- For sites common to both campaigns, the Brain is valuing those sites differently based on the anticipated ROI or CPA outcome
- Two of my favourite myths of Programmatic … 1. I log into a platform, push some buttons, a machine-learned algorithm does the rest right? Wrong. At best 50% of the value comes from the tech. 50% or more is from the person in the cockpit. Give an untrained, under-resourced, or over-pressured resource access to any technology and campaign results will suffer. Whilst the platform you deploy should handle a great deal of the decisioning, to the scale of which I’ll highlight later in the presentation, still so much value is driven by the talent you have and your technology provider makes accessible to empower that talent. Empowered to understand programmatic buying strategy as a whole, and then how to execute the buying strategy within a chosen technology. You need expertise. 2. Which leads me to the talent you need … NO BUYER HAS HIRED A ROCKET SCIENTIST OR WALL STREET WIZ.
- Why? BECAUSE THAT”S OUR JOB AS THE TECH PROVIDER TO HIRE THOSE PEOPLE. THEY COST A SHITLOAD AND THEY ARE HARD TO FIND. WE”VE DONE IT … OUR CIO IS A ASTROPHYSICIST .. HE LOOKS DOWN ON ROCKET SCIENTISTS. What you DO need … People who aren’t afraid of maths. People who are problem solvers. People who actually care about campaign performance You to give these people a chance to learn programmatic, and learn your preferred tech BACK TO FRONT.
- At MediaMath we do believe, you the CMO, are about to gain the upper hand when it comes to managing and optimizing your media expenditures. It may not happen overnight and you may need to take a crawl, walk, run approach. But sooner or later, with the right software and operating system, you will be buying media based on your requirements, achieving your goals and never ever referring to John Wannamaker again. Let’s me wrap up with another epiphany from Arthur C. Clarke, “Every revolutionary idea seems to evoke three stages of reaction. They may be summed up by the phrases: 1- It's completely impossible. 2- It's possible, but it's not worth doing. 3- I said it was a good idea all along.” I look forward to hearing many of you say “programmatic first was a good idea all along” in the not too distant future. Thank you.