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Leveraging the last millisecond

Jason Juma-Ross                                              Marcus Verrall
@ideasoc                                                     @MarcusVerrall
iStrategy Sydney, April 2013
Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
2.5m display ads/5 secs                                 1




  average user served                                        1,707 banner ads per month                2




                                          >30% don’t get seen                              3




                        standard banner                                   0.04% ave CTR            4



1. An estimated 169 display impressions served per millisecond: 2,470,588 in five second
2. & 3. US Internet Users, ComScore
4. DoubleClick
Copyright © 2013 Accenture All Rights Reserved.                                                            2
Investment continues to pour into digital: for
good reason!
$000s                                            2012 Australian Media Spend & YOY Δ
                   ($24m)
4,000,000
                                                                                                                                           $516m
3,000,000
                                    ($476m)

2,000,000

1,000,000                                              ($18m)             $21m                                $11m
                                                                                             $8m                                  ($41m)
            0
                   Television           Press          Magazines            Radio            Cinema        Out of Home Direct Mail         Digital



ROI
Basis                                                                                         25%                                           8%
(example
)



                     (2%)                      (28%)                      (60%)                               (10%)



Source: AQX Monthly, Jan 2011 – Jan 2013, IAB Online Advertising Expenditure Report, Dec 2012, Accenture analysis: APAC region.
Copyright © 2013 Accenture All Rights Reserved.                                                                                                      3
Use of automated tools to procure online
            Real Time                             advertising, one impression at a time, at scale, based
                                                  on the unique characteristics of a granular target
            Bidding                               audience

            Convergence                           Ability to procure media packages that consist of
                                                  combined inventory from both traditional and digital
            Buying (again)                        channels

            Pay for                               Outcome based buying, allowing advertisers to
                                                  procure clicks, leads, enquiries, opportunities to
            Performance                           quote, bookings,




Copyright © 2013 Accenture All Rights Reserved.                                                            4
Advertiser     Customer   Customer
                                                  Effectiveness    Novelty   Relevance

            Real Time
            Bidding
            Convergence
            Buying (again)
            Pay for
            Performance




Copyright © 2013 Accenture All Rights Reserved.                                          5
Novelty: Long term decline in banner CTRs

   100%




    80%


                                           78% CTR, HotWired 1994
    60%




    40%                                                                                                                                          0.1%


                                                                                                                                                 0.05%
    20%                                                                                                                                          0.04%
                                                                 0.5% CTR AdKnowledge Online                                                     0.03%
    10%                                                          Advertising Report 1st Quarter 2000                                             0.02%
                                    c. 5%, 1997
      5%                                                                                                                                         0.01%


           1990                        1995                        2000                         2005                         2010                   2015


ClickZ 2001, ‘Are Click-Through Rates Really Declining?’, http://www.clickz.com/clickz/column/1706011/are-click-through-rates-really-declining
Andrew Chen’s Law of Shitty Clickthroughs, http://andrewchen.co/2012/04/05/the-law-of-shitty-clickthroughs/#
Copyright © 2013 Accenture All Rights Reserved.                                                                                                            6
The ‘law of shitty clickthroughs’ is a general
phenomenon




Site retargeting clickthrough rate decline over a five month period. Source: http://andrewchen.co/2012/04/05/the-law-of-shitty-clickthroughs/
Copyright © 2013 Accenture All Rights Reserved.                                                                                                 7
How can we improve this situation in the
new RTB enabled environment?


1.Cut through: Great, low-cost creative

2.Audit: verify what you got

3.Relevance: extend the fall off in the
        clickthrough curve by targeting intent



Copyright © 2013 Accenture All Rights Reserved.   8
Chevvy: ‘Happy Grad’
                  SuperBowl XLVI



Source: SuperBowl XLVI, 2012 MoFilm
Copyright © 2013 Accenture All Rights Reserved.   9
Use ‘fast transients’ to deliver relevance &
extend the useful life of advertising vehicles


                                                          Search                   Display Media


                                                  KWG 1   KWG 2        KWG N   Seg 1     Seg 2   Seg N
                         de-averaging
                                                                  Dynamic Landing Pages




                                                                  Product/Detail Pages

 • Integrated data
 • Intelligent conversion paths                                   Checkout / Conversion

 • Industrialised automation &
   decisioning
Copyright © 2013 Accenture All Rights Reserved.                                                          10
Challenge the high cost of complexity
attached to delivering relevance
Customers demand a more granular and continuous content and functionality
development cycle than is possible in the current paradigm


                                                                                                New Paradigm
 Complexity Dimensions
                                                                                                Platform based,
                                                                                                componentised dev.,
                5 Cust. Segments                                            12,150 Treatments   flexible architecture with
                                                                                                analytics linking
                                                                            2,430
                                                                                                content, usage, and
                3 Channels                                                                      value
    +
    Relevance




                6 Regions                                             810
                                                                                                Current Paradigm
                                                                135                             Monolithic web
                27 Brands                                                                       development & digital
                                                                                    Current     supply chain. Analytics
                                                        5 Treatments                            used primarily for
                5 Product categories                                                            reporting purposes
                                                  1 Treatment


                                                                 Unit Delivery Cost +



Copyright © 2013 Accenture All Rights Reserved.                                                                           11
Ad Banner Buyer

                                    DEMO
                                                    Audit: scans publisher
                                                    sites to track where
                                                    your and your
                                                    competitors’ inventory
                                                    appears




       Semi-automated
       intelligent platform
       optimises for intent in
       real time
                                                  DEMO


Copyright © 2013 Accenture All Rights Reserved.                    end       12
ABBA




Copyright © 2013 Accenture All Rights Reserved.   13
ABBA




Copyright © 2013 Accenture All Rights Reserved.   14
Google Search Result (Actual)




Copyright © 2013 Accenture All Rights Reserved.   15
Google Search Result (DEMO)




Copyright © 2013 Accenture All Rights Reserved.   16
Visitor Context




Copyright © 2013 Accenture All Rights Reserved.   17
Optimised Landing Page




Copyright © 2013 Accenture All Rights Reserved.   18
Facebook Integration




Copyright © 2013 Accenture All Rights Reserved.   19
Optimised Product Page




Copyright © 2013 Accenture All Rights Reserved.   20
Optimised Product Page – Visitor Context




Copyright © 2013 Accenture All Rights Reserved.   21
Lagging                              Leading               Emerging


             STATIC ‘ONE-SIZE FITS                PERIODIC, EMPIRICALLY-    AGILE, INTELLIGENT
                ALL’ WEB SITES                      DRIVEN ITERATION            DELIVERY




                 Search Social Display                 Personalisation
                                                           (HTML)

                        Web Skin                        Core Systems         Componentised
                                                          (Aligned)
                      (HTML Layer)                                            Architecture
                                                    Search Social Display

                      Foundational
                      Components                      Intelligence Driven
                                                          (Analytics)           Intelligent
                                                                                Adaptation
                        Analytics                        Applications,
                        (Reporting)                   transactional, and
                                                       service platforms

                                                                                Customer
                                                                                Data Cloud




Copyright © 2013 Accenture All Rights Reserved.                                                  22
Relevance = business de-averaged
                       1960                        1980      2000                  2020


                 Broadcast Paradigm                                              Intent Paradigm
                                                                                                   Campaigns
            Demand




                                           Campaign




                                                                      Demand
             Profile




                                                                       Profile
                               Population                                                 Population

          Demog.        Simple       Single        Uniform            Intent      Multiple   Fragmented Campaign
          Segment        Offer      Channel       Campaign          Segments      Offers      Channels Relevance
                                                                                                Local
                                                                                               Mobile
                                                                                               Social




                                                                                 Bundle
                                                                                               Search
                                                                                                 Web
                                                                                              eDM/DM
                                                                                                IPTV,
                                                                                                 etc




                Hindsight based business                                 Relevance, scale, & speed


Copyright © 2012 Accenture All Rights Reserved.                                                                    23
c.1bn display ads/30 mins
                                      average
                                     optimised    250 conversions
                                                  500 conversions
                                                  ROI   x2

Copyright © 2013 Accenture All Rights Reserved.                     24
Thank you



Jason Juma-Ross                                   Marcus Verrall
Regional Managing Director                        Digital Director
Accenture Interactive                             Accenture Interactive

jason.juma-ross@accenture.com                     marcus.verrall@accenture.com
@ideasoc                                          @MarcusVerrall




Copyright © 2012 Accenture All Rights Reserved.                                  25

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iStrategy 2013, Sydney: Leveraging the last millisecond

  • 1. Leveraging the last millisecond Jason Juma-Ross Marcus Verrall @ideasoc @MarcusVerrall iStrategy Sydney, April 2013 Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
  • 2. 2.5m display ads/5 secs 1 average user served 1,707 banner ads per month 2 >30% don’t get seen 3 standard banner 0.04% ave CTR 4 1. An estimated 169 display impressions served per millisecond: 2,470,588 in five second 2. & 3. US Internet Users, ComScore 4. DoubleClick Copyright © 2013 Accenture All Rights Reserved. 2
  • 3. Investment continues to pour into digital: for good reason! $000s 2012 Australian Media Spend & YOY Δ ($24m) 4,000,000 $516m 3,000,000 ($476m) 2,000,000 1,000,000 ($18m) $21m $11m $8m ($41m) 0 Television Press Magazines Radio Cinema Out of Home Direct Mail Digital ROI Basis 25% 8% (example ) (2%) (28%) (60%) (10%) Source: AQX Monthly, Jan 2011 – Jan 2013, IAB Online Advertising Expenditure Report, Dec 2012, Accenture analysis: APAC region. Copyright © 2013 Accenture All Rights Reserved. 3
  • 4. Use of automated tools to procure online Real Time advertising, one impression at a time, at scale, based on the unique characteristics of a granular target Bidding audience Convergence Ability to procure media packages that consist of combined inventory from both traditional and digital Buying (again) channels Pay for Outcome based buying, allowing advertisers to procure clicks, leads, enquiries, opportunities to Performance quote, bookings, Copyright © 2013 Accenture All Rights Reserved. 4
  • 5. Advertiser Customer Customer Effectiveness Novelty Relevance Real Time Bidding Convergence Buying (again) Pay for Performance Copyright © 2013 Accenture All Rights Reserved. 5
  • 6. Novelty: Long term decline in banner CTRs 100% 80% 78% CTR, HotWired 1994 60% 40% 0.1% 0.05% 20% 0.04% 0.5% CTR AdKnowledge Online 0.03% 10% Advertising Report 1st Quarter 2000 0.02% c. 5%, 1997 5% 0.01% 1990 1995 2000 2005 2010 2015 ClickZ 2001, ‘Are Click-Through Rates Really Declining?’, http://www.clickz.com/clickz/column/1706011/are-click-through-rates-really-declining Andrew Chen’s Law of Shitty Clickthroughs, http://andrewchen.co/2012/04/05/the-law-of-shitty-clickthroughs/# Copyright © 2013 Accenture All Rights Reserved. 6
  • 7. The ‘law of shitty clickthroughs’ is a general phenomenon Site retargeting clickthrough rate decline over a five month period. Source: http://andrewchen.co/2012/04/05/the-law-of-shitty-clickthroughs/ Copyright © 2013 Accenture All Rights Reserved. 7
  • 8. How can we improve this situation in the new RTB enabled environment? 1.Cut through: Great, low-cost creative 2.Audit: verify what you got 3.Relevance: extend the fall off in the clickthrough curve by targeting intent Copyright © 2013 Accenture All Rights Reserved. 8
  • 9. Chevvy: ‘Happy Grad’ SuperBowl XLVI Source: SuperBowl XLVI, 2012 MoFilm Copyright © 2013 Accenture All Rights Reserved. 9
  • 10. Use ‘fast transients’ to deliver relevance & extend the useful life of advertising vehicles Search Display Media KWG 1 KWG 2 KWG N Seg 1 Seg 2 Seg N de-averaging Dynamic Landing Pages Product/Detail Pages • Integrated data • Intelligent conversion paths Checkout / Conversion • Industrialised automation & decisioning Copyright © 2013 Accenture All Rights Reserved. 10
  • 11. Challenge the high cost of complexity attached to delivering relevance Customers demand a more granular and continuous content and functionality development cycle than is possible in the current paradigm New Paradigm Complexity Dimensions Platform based, componentised dev., 5 Cust. Segments 12,150 Treatments flexible architecture with analytics linking 2,430 content, usage, and 3 Channels value + Relevance 6 Regions 810 Current Paradigm 135 Monolithic web 27 Brands development & digital Current supply chain. Analytics 5 Treatments used primarily for 5 Product categories reporting purposes 1 Treatment Unit Delivery Cost + Copyright © 2013 Accenture All Rights Reserved. 11
  • 12. Ad Banner Buyer DEMO Audit: scans publisher sites to track where your and your competitors’ inventory appears Semi-automated intelligent platform optimises for intent in real time DEMO Copyright © 2013 Accenture All Rights Reserved. end 12
  • 13. ABBA Copyright © 2013 Accenture All Rights Reserved. 13
  • 14. ABBA Copyright © 2013 Accenture All Rights Reserved. 14
  • 15. Google Search Result (Actual) Copyright © 2013 Accenture All Rights Reserved. 15
  • 16. Google Search Result (DEMO) Copyright © 2013 Accenture All Rights Reserved. 16
  • 17. Visitor Context Copyright © 2013 Accenture All Rights Reserved. 17
  • 18. Optimised Landing Page Copyright © 2013 Accenture All Rights Reserved. 18
  • 19. Facebook Integration Copyright © 2013 Accenture All Rights Reserved. 19
  • 20. Optimised Product Page Copyright © 2013 Accenture All Rights Reserved. 20
  • 21. Optimised Product Page – Visitor Context Copyright © 2013 Accenture All Rights Reserved. 21
  • 22. Lagging Leading Emerging STATIC ‘ONE-SIZE FITS PERIODIC, EMPIRICALLY- AGILE, INTELLIGENT ALL’ WEB SITES DRIVEN ITERATION DELIVERY Search Social Display Personalisation (HTML) Web Skin Core Systems Componentised (Aligned) (HTML Layer) Architecture Search Social Display Foundational Components Intelligence Driven (Analytics) Intelligent Adaptation Analytics Applications, (Reporting) transactional, and service platforms Customer Data Cloud Copyright © 2013 Accenture All Rights Reserved. 22
  • 23. Relevance = business de-averaged 1960 1980 2000 2020 Broadcast Paradigm Intent Paradigm Campaigns Demand Campaign Demand Profile Profile Population Population Demog. Simple Single Uniform Intent Multiple Fragmented Campaign Segment Offer Channel Campaign Segments Offers Channels Relevance Local Mobile Social Bundle Search Web eDM/DM IPTV, etc Hindsight based business Relevance, scale, & speed Copyright © 2012 Accenture All Rights Reserved. 23
  • 24. c.1bn display ads/30 mins average optimised 250 conversions 500 conversions ROI x2 Copyright © 2013 Accenture All Rights Reserved. 24
  • 25. Thank you Jason Juma-Ross Marcus Verrall Regional Managing Director Digital Director Accenture Interactive Accenture Interactive jason.juma-ross@accenture.com marcus.verrall@accenture.com @ideasoc @MarcusVerrall Copyright © 2012 Accenture All Rights Reserved. 25

Editor's Notes

  1. 5.3015592e+12 banner ads served in the US per year.That’s 168 per millisecond. 840,000 since I’ve been talking (5 seconds).You are more likely to survive a plane crash than click on a banner ad.
  2. Performance-based shifts in marketing spendExample: deltas for APAC advertisers based on MMM projectsExample: shift in Australia spend from Nielsen data or IAB data
  3. e.g. PHG: Performance Horizon Group. Clients include Sony, Nokia, Barclaycard, T-Mobile, Emirates, Orange. Some of the most advanced players in the industry working the arbitrage between CPM and CPA. NOT those who focus on the most efficient methods of creating low-quality leads (often through fraudulent conversations).
  4. e.g. PHG: Performance Horizon Group. Clients include Sony, Nokia, Barclaycard, T-Mobile, Emirates, Orange. Some of the most advanced players in the industry working the arbitrage between CPM and CPA. NOT those who focus on the most efficient methods of creating low-quality leads (often through fraudulent conversations).
  5. Integrated: maximise data and reach synergies across media typesIntelligent: optimise full conversion paths for each visitor with full accountabilityIndustrialized: leverage high levels of automation and machine decisioningThe result: de-averaged, scalable digital marketing
  6. How to deliver relevance @ scale & speed- Automation platforms- Data-driven decisioning & machine learning- Scale, low cost message & creative developmentDigital & direct processes & mindset
  7. 5.3015592e+12 banner ads served in the US per year.That’s 168 per millisecond. 840,000 since I’ve been talking (5 seconds).You are more likely to survive a plane crash than click on a banner ad.