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BEYOND PROGRAMMATIC –
DER WANDEL BEGINNT ERST
CONFIDENTIAL
Wien, 29. September 2016
Dr. Wolfgang Faisst, Head of SAP Exchange Media
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 2
This presentation outlines our general product direction and should not be relied on in making a purchase decision.
This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any
course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation.
This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time
for any reason without notice.
This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied
warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or
omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent.
Disclaimer
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 3
Let’s talk about the world of digital
media today…
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 4
Global
Marketing
Spending
$522B(
52%)
$984B billion
$400B
$50B $12B (1%)
Adver-
tising
Marketing
Services &
Agencies
Data &
Intelli-
gence
Direct IT
Spending
52% of CMO external spending is for advertising Advertising is shifting to digital media channels
Advertising is most important spending topic for a CMO
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 5
*eMarketer forecast
! Programmatic / algorithmic trading is the use of electronic platforms for entering trading orders with an
algorithm which executes pre-programmed trading instructions whose variables may include timing, price, or
quantity of the order, or in many cases initiating the order by a "robot", without human intervention.
! Widely used in financial services industry by investment banks, pension funds, mutual funds, and other buy-side
(investor-driven) institutional traders, to divide large trades into several smaller trades to manage market impact
and risk.
Population GDP Ad Spend Digital Spend Display Programmatic
0.7%
2.8% 4.6%
14.0%
21.4%
48.9%The programmatic market exploded in 2014. Growth forecast is $22 bn in programmatic in 2016.*
Digital Advertising - Point of Departure
Programmatic advertising outpacing global trends
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 6
Source: Irene Aldridge (http://www.ablealpha.com), wikipedia.org
Digital Advertising - Point of Departure
Adoption of electronic trading in finance as proxy for media
Adoption of electronic trading in finance 2001-2010
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 7
Challenges Description
Inefficient Value Chain
! Various middle men absorbing a significant portion of the media budget
(50-70%)
! Advertiser‘s media departments under-staffed compared
! Often loose control of the outsourcing service providers
Fraud & Viewability
! Software bots creating significant traffic (25-40%)
! Additionally, click shops hired to fake audiences
! Viewability often not guaranteed, but reported & paid
Complex Processes
! Large amount of manual and non-value creating activities
! Long lead times to prepare advertising campaigns
! Compliance issues in buying and payment
Fragmented
Technology Integration
! „Zoo“ of isolated tools per media channel & adformats
! Lack of integration between corporate systems
(in particular marketing system) and advertising systems
! Batch reporting and no real-time optimization capabilities
1
2
3
4
Digital Advertising - Point of Departure
Advertisers & agencies faced with four challenges
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 8
Source: WFA Guide Programmatic Media, 2014
AOR= Agency of Record
ATD = Agency Trading Desk
DSP = Demand Side Platform
Value Adds: i.e. Data Enrichment,
Targeting, Reporting, Verification.
*
1
Digital Advertising - Point of Departure
Inefficient value chain with 60% absorption of ad budget
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 9
Source:Stats of Digital Ad Fraud Q1 2015, Dr. Augustine Fou
2
Digital Advertising - Point of Departure
Fraud & View ability creating an additional loss of 25-40%
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 10
Source: BCG Analysis
Need for a re-engineering of processes within the advertiser and with agencies
3
Digital Advertising - Point of Departure
Advertisers & agencies: Complex processes
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 11
“Ad Tech will become a natural part of an integrated enterprise landscape.”
Source: LUMA Partners
4
Digital Advertising - Point of Departure
Fragmented technology landscape
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 12
Digital Advertising - Point of Arrival
Advantages for a direct model procurement and consolidated
E2E solution stack
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 13
Today (2016) Beyond Programmatic (2016-2018)
Value Chain Fragmented & complex Streamlined value chain; more direct connections
Control Outsourcing & delay in reports 100% transparency & control
Process Cumbersome processes Re-engineered and streamlined processes
Systems
20+ sited tools, no connection to
corporate systems
One system for Adtech , integrated with corporate
systems (complete Adtech & Martech integration)
Metrics Inconsistent measurements Measurable business KPI´s (purchases)
Targeting High media waste (reach) Personalized & context-aware (relevance)
Consumer Huge ad-blocker interest Advertising perceived as value-add information
Return on
media Non-Measurable Measurable & Manageable
Digital Advertising - Point of Arrival
The Transformation: Beyond Programmatic
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 14
Media
Procurement
Agency controls and
operates entire media
lifecycle
Advertiser accesses
agency platforms for
analysis
Advertiser controls
media platforms, agency
executes
Advertiser operates
everything except
trafficking & creatives
Advertiser controls
and operates all
media platforms
Low level Full potential
Empowerment of
Marketing
Reporting documents
days/weeks after
campaign end
Reporting documents and
optimization during
campaign
Online reporting access
for Marketing and
optimization
Online reporting access
for Marketing; real-time
data, optimization
Real-time data and
optimization, most usable
user interface
Data, intelligence
& insight
No leverage of customer-
internal
data (CRM, …)
Initial leverage of
customer-internal data
(manual)
Manual processing of
CRM data & leverage for
advertising
Automated leverage
of customer data with
selected sources
Golden customer record
(all sources) + automated
leverage
Process Automation
Highly manual, partially
non-digital processes
between parties
First (automated) digital
workflows – advertiser
internal
First (automated) digital
workflows – advertiser /
agency
Automated digital
workflows – advertiser /
agency
Seamless digital
processes between all
parties (automated,
integrated)
Technology
Integration
Fragmented landscape
(siloed Adtech, many ad
platforms)
First integration AdTech
/ MarTech (workflow)
+ Consolidated AdTech
platform
+ Further integrations
(e.g. SRM / Ariba)
1 AdTech platform, fully
integrated with corporate
systems
E2E Measurement
Only costs, clicks &
impressions
+ Actions/ conversions
(downloads, purchases)
+ (Store) visits (online,
offline) and activities ?
+ Confirmed transactions
(online, offline)
+ Incremental
transactions (+ related
margins)
Digital Maturity
Digital Advertising - From Today to the Full Potential
Assess your Status
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 15
Digital Advertising - Point of Arrival
Key value levers to transform digital advertising
! Advertising efficiency via premium private marketplace with most transparent brokerage
! Advertising effectiveness: E2E process excellence from planning to measurement to real-time
optimization
! Empowerment for people via simplification of user interface
! Assistance functions & automation powered real-time analytics & optimization capabilities
! Seamless integration: Connecting corporate systems & advertising technology (in particular MarTech &
AdTech) and
! One platform for all media channels
! Leveraging 360° data (internal and external) to drive customer relevancy
! Aggregation of first party, second party and third party data to „golden customer record“
! Attribution of incremental purchases (POS, eCommerce) to digital advertising campaigns
! Measurement and optimization of „Return on Media“
Media
Procurement
Empowerment of
Marketing
Data, intelligence
& insight
Process Automation
Technology
Integration
E2E Measurement
1
2
3
4
5
6
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 16
Programmatic Media Buying Value Chain – “old world” SAP XM media buying value chain – “new world”
Lack of transparency and loss of budget due to ‘middle-man’
economy (intermediaries)
Increased ROI by connecting advertisers & publishers directly
through e-2-e integrated online media network
Media procurement
Premium private marketplace with brokerage model
1
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 17
Empowerment for
marketing & agency
people: Simplification,
Assistance & Automation
2
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 18
Empowerment for marketing people
Media mix optimization powered by algorithms & big data
Source: Harvard Business Review: “Advertising Analytics” (March 2013)
Define the optimal mix!
Siloed
consideration
of channels
(“swim lane”)
Assisted
consideration
of channels
2
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 19
Speedup = 500/30 = 17
10
~0
10
10
~0.......
~0 ~0.......
Duration parallel = 30
10
100
10
100
10
Duration sequential = 500
Duration
Process to
be paral-
lelized
Main memory 125.000 faster than disk Parallelization via multi-core processors
Main Memory
Disk
CPU
Core Core
L1
Cache
L1
Cache
L2
Cache
L2
Cache
L3 Cache
1 NS
3 NS
8 NS
80 NS
SSD: 100 K NS
HD: 10 M NS
In-memory computing
Speed-up of >125K times possible with in-memory vs. disk
2
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 20
Supports
any Device
Any Apps
Any App Server
SAP S/4 HANA
and BW/4 HANA
JSONR Open ConnectivityMDXSQL
Other AppsLocationsReal-timeBig dataMachineUnstructuredTransaction
SAP HANA Platform
SQL, SQLScript, JavaScript, HTML5, SAP River
Replication, Streaming and ETL Integration Services
Search
Application
Function Library
Data Virtualization
Text Analysis &
Mining
Spatial
Database
Services
Stored Procedure &
Data Models
Predictive &
Planning Engine
Business Rules
Application & UI
Services
SAP HANA Platform Converges Database, Data Processing and Application Platform
Capabilities & Provides Libraries for Predictive, Planning, Text, Spatial, and Business
Analytics to enable business to operate in real-time.
SAP HANA: In-memory platform leveraging libraries for
predictive, planning, text analysis, spatial & analytics
2
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 21
Billing Systems &
other
Infrastructure
e.g., invoices, call-by-
call, payment history)
Billing Systems &
other
Infrastructure
e.g., invoices, call-by-
call, payment history)
(e. g., customer service,
shop requests,
complaints, inquiries,
emails, talk recordings)
(e. g., customer service,
shop requests,
complaints, inquiries,
emails, talk recordings)
ERP
(e. g., customer data,
transactions)
ERP
(e. g., customer data,
transactions)
360!!
Customer View
Market Research
e. g., Nielsen, GFK
Social Media
e. g., Facebook, Twitter,
Youtube, Blogs forums,
LinkedIn
ERP
e.g., refine & improve
brand experience, reduce
mark-downs & stock-
outs, payment history
CRM+
e. g., customer service,
complaints, inquiries,
emails, talk recordings
Internal sourcesExternal sources
Mobile Apps
e. g. consumer tracking
Website
(e. g., clickstream, requests)
External Websites
e. g., retail channel
In focus with Big Data
Text and voice
information
Data, intelligence & insight
360° customer view (internal and external)
Wholesale &
Retail (POS)
e. g., purchases, coupon
redemption
POS tracking
information via
beacons & sensors
3
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 22
Marketing Planning
Create digital ad campaign
(incl. brief document)
Create campaign
(automatically) + receive task
for completion
Monitor marketing campaign
progress
Marketing Expert Media Expert
BusinessProcess
Setup ad campaign and settings
(tactics, inventory, targeting).
Send for approval.
Activation of ad campaign
Execution and (auto-) optimize
ad campaign
Marketing Suite
Procurement Expert
Create shopping cart w/ insertion
order
Review and approve
Consolidated Mgmt. Reporting
Process Automation
Marketing, media and procurement in one workflow
Supplier Relationship Management
4
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 23
MarTech AdTech MarTech
! Comprehensive planning w
ithin advertiser‘s syst
em
! Campaign definition
! Data management
1. Plan 2. Execute 3. Measure
! E2E reporting
! Steering in real-time
! E2E advertising
! Execution across all digital cha
nnels
! Procurement optimization via
bidding engine
Media Mix Optimization.
Attribution
Digital/OnlineOwnCh.
Search (e.g. Google)
Video
Smart TV / Digital Radio
Social (e.g. Facebook)
DooH / IoT
Mobile
Web
Print
TV
Radio
Offline
Email / SMS
Social
Apps
Web
Marketing Suite
Marketing Mix
Optimization
Consumer
Technology integration
One simple platform for all customer channels
5
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 24
Technology integration
Connecting all media channels to enable advertising along the
customer journey
In 500 m you reach
Starbucks
Early Bird Coffee
! 5
Coke to go
at just ! 0.50!
Stop at the next
gas station
in 5 km
5
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 25
Balance Check Smart TV App
Thanks for visiting!
Hope you enjoyed
our services
Earned Savings Points
Mobile payment Office
Shopping
Driving home
End Office
Technology integration
Connecting all media channels to enable advertising along the
customer journey
5
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 26
6
E2E measurement
Closed loop from planning to buying and optimization
SAP XM
Partner Solution
Other SAP Solutions
1st Party Data
3rd Party DMP
Media Planning & Mgmt Execution Publisher Corporate Systems
MediaMixPlanning&
Optimization
Desktop
Mobile
Video
Social
DooH
Search
Procurement
Desktop
Mobile
Video
Social
DooH
Search
SAP XM
ERP
CRM
eCommerce
Website, apps
E2E measurement and feedback loop
Marketing mgmt
Direct marketing
Handover to
compliant
approval
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 27
Digital Advertising - Point of Arrival
Making “Return on Media” measurable & manageable
Return on
Media
RETURN
Current Return
(Campaign)
Incremental
revenue
Price Gross Price
Discounts
Volume
Reach
Conversion
Impressions
Clicks
Action
…
Future Return
(Brand Value)
…
…
Investment
MEDIABUDGET
Earned
Owned
Paid
TRADITIONAL
TV
Print
Radio
…
DIGITAL
Desktop
Mobile
Social
DooH
…INTERNAL
COSTS
PROCESS/PEOPLE
Time
Costs
IT SYSTEMS
Time
Costs
price x volume
+ fees &
commissions
price x volume
+ fees &
commissions
DIVISION
MULTIPLICATION
MULTIPLICATION
ADDITION
ADDITION
THANK YOU!
Dr. Wolfgang Faisst
STRICTLY CONFIDENTIAL
wolfgang.faisst@sapexchange.media
+49 160 90432577
www.sapexchange.media

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PCon 2016: Beyond Programmatic - Der Wandel beginnt erst (Dr. Wolfgang Faisst, SAP XM)

  • 1. BEYOND PROGRAMMATIC – DER WANDEL BEGINNT ERST CONFIDENTIAL Wien, 29. September 2016 Dr. Wolfgang Faisst, Head of SAP Exchange Media
  • 2. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 2 This presentation outlines our general product direction and should not be relied on in making a purchase decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent. Disclaimer
  • 3. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 3 Let’s talk about the world of digital media today…
  • 4. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 4 Global Marketing Spending $522B( 52%) $984B billion $400B $50B $12B (1%) Adver- tising Marketing Services & Agencies Data & Intelli- gence Direct IT Spending 52% of CMO external spending is for advertising Advertising is shifting to digital media channels Advertising is most important spending topic for a CMO
  • 5. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 5 *eMarketer forecast ! Programmatic / algorithmic trading is the use of electronic platforms for entering trading orders with an algorithm which executes pre-programmed trading instructions whose variables may include timing, price, or quantity of the order, or in many cases initiating the order by a "robot", without human intervention. ! Widely used in financial services industry by investment banks, pension funds, mutual funds, and other buy-side (investor-driven) institutional traders, to divide large trades into several smaller trades to manage market impact and risk. Population GDP Ad Spend Digital Spend Display Programmatic 0.7% 2.8% 4.6% 14.0% 21.4% 48.9%The programmatic market exploded in 2014. Growth forecast is $22 bn in programmatic in 2016.* Digital Advertising - Point of Departure Programmatic advertising outpacing global trends
  • 6. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 6 Source: Irene Aldridge (http://www.ablealpha.com), wikipedia.org Digital Advertising - Point of Departure Adoption of electronic trading in finance as proxy for media Adoption of electronic trading in finance 2001-2010
  • 7. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 7 Challenges Description Inefficient Value Chain ! Various middle men absorbing a significant portion of the media budget (50-70%) ! Advertiser‘s media departments under-staffed compared ! Often loose control of the outsourcing service providers Fraud & Viewability ! Software bots creating significant traffic (25-40%) ! Additionally, click shops hired to fake audiences ! Viewability often not guaranteed, but reported & paid Complex Processes ! Large amount of manual and non-value creating activities ! Long lead times to prepare advertising campaigns ! Compliance issues in buying and payment Fragmented Technology Integration ! „Zoo“ of isolated tools per media channel & adformats ! Lack of integration between corporate systems (in particular marketing system) and advertising systems ! Batch reporting and no real-time optimization capabilities 1 2 3 4 Digital Advertising - Point of Departure Advertisers & agencies faced with four challenges
  • 8. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 8 Source: WFA Guide Programmatic Media, 2014 AOR= Agency of Record ATD = Agency Trading Desk DSP = Demand Side Platform Value Adds: i.e. Data Enrichment, Targeting, Reporting, Verification. * 1 Digital Advertising - Point of Departure Inefficient value chain with 60% absorption of ad budget
  • 9. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 9 Source:Stats of Digital Ad Fraud Q1 2015, Dr. Augustine Fou 2 Digital Advertising - Point of Departure Fraud & View ability creating an additional loss of 25-40%
  • 10. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 10 Source: BCG Analysis Need for a re-engineering of processes within the advertiser and with agencies 3 Digital Advertising - Point of Departure Advertisers & agencies: Complex processes
  • 11. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 11 “Ad Tech will become a natural part of an integrated enterprise landscape.” Source: LUMA Partners 4 Digital Advertising - Point of Departure Fragmented technology landscape
  • 12. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 12 Digital Advertising - Point of Arrival Advantages for a direct model procurement and consolidated E2E solution stack
  • 13. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 13 Today (2016) Beyond Programmatic (2016-2018) Value Chain Fragmented & complex Streamlined value chain; more direct connections Control Outsourcing & delay in reports 100% transparency & control Process Cumbersome processes Re-engineered and streamlined processes Systems 20+ sited tools, no connection to corporate systems One system for Adtech , integrated with corporate systems (complete Adtech & Martech integration) Metrics Inconsistent measurements Measurable business KPI´s (purchases) Targeting High media waste (reach) Personalized & context-aware (relevance) Consumer Huge ad-blocker interest Advertising perceived as value-add information Return on media Non-Measurable Measurable & Manageable Digital Advertising - Point of Arrival The Transformation: Beyond Programmatic
  • 14. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 14 Media Procurement Agency controls and operates entire media lifecycle Advertiser accesses agency platforms for analysis Advertiser controls media platforms, agency executes Advertiser operates everything except trafficking & creatives Advertiser controls and operates all media platforms Low level Full potential Empowerment of Marketing Reporting documents days/weeks after campaign end Reporting documents and optimization during campaign Online reporting access for Marketing and optimization Online reporting access for Marketing; real-time data, optimization Real-time data and optimization, most usable user interface Data, intelligence & insight No leverage of customer- internal data (CRM, …) Initial leverage of customer-internal data (manual) Manual processing of CRM data & leverage for advertising Automated leverage of customer data with selected sources Golden customer record (all sources) + automated leverage Process Automation Highly manual, partially non-digital processes between parties First (automated) digital workflows – advertiser internal First (automated) digital workflows – advertiser / agency Automated digital workflows – advertiser / agency Seamless digital processes between all parties (automated, integrated) Technology Integration Fragmented landscape (siloed Adtech, many ad platforms) First integration AdTech / MarTech (workflow) + Consolidated AdTech platform + Further integrations (e.g. SRM / Ariba) 1 AdTech platform, fully integrated with corporate systems E2E Measurement Only costs, clicks & impressions + Actions/ conversions (downloads, purchases) + (Store) visits (online, offline) and activities ? + Confirmed transactions (online, offline) + Incremental transactions (+ related margins) Digital Maturity Digital Advertising - From Today to the Full Potential Assess your Status
  • 15. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 15 Digital Advertising - Point of Arrival Key value levers to transform digital advertising ! Advertising efficiency via premium private marketplace with most transparent brokerage ! Advertising effectiveness: E2E process excellence from planning to measurement to real-time optimization ! Empowerment for people via simplification of user interface ! Assistance functions & automation powered real-time analytics & optimization capabilities ! Seamless integration: Connecting corporate systems & advertising technology (in particular MarTech & AdTech) and ! One platform for all media channels ! Leveraging 360° data (internal and external) to drive customer relevancy ! Aggregation of first party, second party and third party data to „golden customer record“ ! Attribution of incremental purchases (POS, eCommerce) to digital advertising campaigns ! Measurement and optimization of „Return on Media“ Media Procurement Empowerment of Marketing Data, intelligence & insight Process Automation Technology Integration E2E Measurement 1 2 3 4 5 6
  • 16. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 16 Programmatic Media Buying Value Chain – “old world” SAP XM media buying value chain – “new world” Lack of transparency and loss of budget due to ‘middle-man’ economy (intermediaries) Increased ROI by connecting advertisers & publishers directly through e-2-e integrated online media network Media procurement Premium private marketplace with brokerage model 1
  • 17. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 17 Empowerment for marketing & agency people: Simplification, Assistance & Automation 2
  • 18. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 18 Empowerment for marketing people Media mix optimization powered by algorithms & big data Source: Harvard Business Review: “Advertising Analytics” (March 2013) Define the optimal mix! Siloed consideration of channels (“swim lane”) Assisted consideration of channels 2
  • 19. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 19 Speedup = 500/30 = 17 10 ~0 10 10 ~0....... ~0 ~0....... Duration parallel = 30 10 100 10 100 10 Duration sequential = 500 Duration Process to be paral- lelized Main memory 125.000 faster than disk Parallelization via multi-core processors Main Memory Disk CPU Core Core L1 Cache L1 Cache L2 Cache L2 Cache L3 Cache 1 NS 3 NS 8 NS 80 NS SSD: 100 K NS HD: 10 M NS In-memory computing Speed-up of >125K times possible with in-memory vs. disk 2
  • 20. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 20 Supports any Device Any Apps Any App Server SAP S/4 HANA and BW/4 HANA JSONR Open ConnectivityMDXSQL Other AppsLocationsReal-timeBig dataMachineUnstructuredTransaction SAP HANA Platform SQL, SQLScript, JavaScript, HTML5, SAP River Replication, Streaming and ETL Integration Services Search Application Function Library Data Virtualization Text Analysis & Mining Spatial Database Services Stored Procedure & Data Models Predictive & Planning Engine Business Rules Application & UI Services SAP HANA Platform Converges Database, Data Processing and Application Platform Capabilities & Provides Libraries for Predictive, Planning, Text, Spatial, and Business Analytics to enable business to operate in real-time. SAP HANA: In-memory platform leveraging libraries for predictive, planning, text analysis, spatial & analytics 2
  • 21. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 21 Billing Systems & other Infrastructure e.g., invoices, call-by- call, payment history) Billing Systems & other Infrastructure e.g., invoices, call-by- call, payment history) (e. g., customer service, shop requests, complaints, inquiries, emails, talk recordings) (e. g., customer service, shop requests, complaints, inquiries, emails, talk recordings) ERP (e. g., customer data, transactions) ERP (e. g., customer data, transactions) 360!! Customer View Market Research e. g., Nielsen, GFK Social Media e. g., Facebook, Twitter, Youtube, Blogs forums, LinkedIn ERP e.g., refine & improve brand experience, reduce mark-downs & stock- outs, payment history CRM+ e. g., customer service, complaints, inquiries, emails, talk recordings Internal sourcesExternal sources Mobile Apps e. g. consumer tracking Website (e. g., clickstream, requests) External Websites e. g., retail channel In focus with Big Data Text and voice information Data, intelligence & insight 360° customer view (internal and external) Wholesale & Retail (POS) e. g., purchases, coupon redemption POS tracking information via beacons & sensors 3
  • 22. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 22 Marketing Planning Create digital ad campaign (incl. brief document) Create campaign (automatically) + receive task for completion Monitor marketing campaign progress Marketing Expert Media Expert BusinessProcess Setup ad campaign and settings (tactics, inventory, targeting). Send for approval. Activation of ad campaign Execution and (auto-) optimize ad campaign Marketing Suite Procurement Expert Create shopping cart w/ insertion order Review and approve Consolidated Mgmt. Reporting Process Automation Marketing, media and procurement in one workflow Supplier Relationship Management 4
  • 23. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 23 MarTech AdTech MarTech ! Comprehensive planning w ithin advertiser‘s syst em ! Campaign definition ! Data management 1. Plan 2. Execute 3. Measure ! E2E reporting ! Steering in real-time ! E2E advertising ! Execution across all digital cha nnels ! Procurement optimization via bidding engine Media Mix Optimization. Attribution Digital/OnlineOwnCh. Search (e.g. Google) Video Smart TV / Digital Radio Social (e.g. Facebook) DooH / IoT Mobile Web Print TV Radio Offline Email / SMS Social Apps Web Marketing Suite Marketing Mix Optimization Consumer Technology integration One simple platform for all customer channels 5
  • 24. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 24 Technology integration Connecting all media channels to enable advertising along the customer journey In 500 m you reach Starbucks Early Bird Coffee ! 5 Coke to go at just ! 0.50! Stop at the next gas station in 5 km 5
  • 25. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 25 Balance Check Smart TV App Thanks for visiting! Hope you enjoyed our services Earned Savings Points Mobile payment Office Shopping Driving home End Office Technology integration Connecting all media channels to enable advertising along the customer journey 5
  • 26. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 26 6 E2E measurement Closed loop from planning to buying and optimization SAP XM Partner Solution Other SAP Solutions 1st Party Data 3rd Party DMP Media Planning & Mgmt Execution Publisher Corporate Systems MediaMixPlanning& Optimization Desktop Mobile Video Social DooH Search Procurement Desktop Mobile Video Social DooH Search SAP XM ERP CRM eCommerce Website, apps E2E measurement and feedback loop Marketing mgmt Direct marketing Handover to compliant approval
  • 27. © 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 27 Digital Advertising - Point of Arrival Making “Return on Media” measurable & manageable Return on Media RETURN Current Return (Campaign) Incremental revenue Price Gross Price Discounts Volume Reach Conversion Impressions Clicks Action … Future Return (Brand Value) … … Investment MEDIABUDGET Earned Owned Paid TRADITIONAL TV Print Radio … DIGITAL Desktop Mobile Social DooH …INTERNAL COSTS PROCESS/PEOPLE Time Costs IT SYSTEMS Time Costs price x volume + fees & commissions price x volume + fees & commissions DIVISION MULTIPLICATION MULTIPLICATION ADDITION ADDITION
  • 28. THANK YOU! Dr. Wolfgang Faisst STRICTLY CONFIDENTIAL wolfgang.faisst@sapexchange.media +49 160 90432577 www.sapexchange.media