Addressable advertising is a term with historical context in TV advertising. With the massive influx of ad accessible audiences through streaming devices and smart TVs, household-level audience targeting is positioned for new growth. There is new innovation emerging as consumer privacy collides with long-held legacy technology reliant on IP-based identification. In this presentation we will discuss the role mobile GPS data will play in IFA-based cross-device identification, enhanced addressable precision and the attribution revolution.
3. 290
Employees
Comprehensive Consumer Data on Approximately
250 MILLION
U.S. Addressable Consumers
450+
Clients
130K+
Active Campaigns
30K+
Active Advertisers
12K+
OTT/CTV Campaigns
YTD
4.7K+
OTT/CTV Advertisers
YTD
Today we are going to talk about “Addressable Advertising”, SPECIFICALLY Automating the the localization of nationwide buys for CTV, Video, Display, native (Frankly any creative approach)
By way of introduction my name is James Moore and I live phoenix AZ
I have spend the last 8 years as the Chief Revenue Officer with Simpli.fi
Where I lead our sales efforts Where I get the priviland of interacting with Brand, Agency and Publisher executives on a regular basis.
I want to take a brief moment and a single slide introduce or re-introduce you to Simpli.fi.
Simpli.fi is a large and fast growing Demand Side Platform for executing on data driven media buys across devices and creative types.
Generally those who do not work with us are surprised to learn we we have more than 130,000 live campaigns on on platform right now.
However, what has our attention is the growth of OTT/CTV campaigns. In nov. 2018 we launched our initial OTT/CTV offering….THIS YEAR we have already seen more than 12,000 campaigns and the media spend growth of CTV by comparison is the fastest growing product release in the history of the company.
As a platform that specializes in highly localized campaign execution we are very interested in the addressability of advertising across digital media of all types.
In this presentation I am going to show you how Simpli.fi agency partners are building household level addressable campaigns specific to client needs quickly.
However,
If we are going to talk about Addressable Audience Targeting in 2019 and beyond then we need to spend a few minutes discussing some of the most powerful industry variables influencing solutions being built….
While there are many factors influencing ad tech, I am making a case that in that in our limited time today thar THESE 4 variables represent the tectonic shifts that effect everything
Clearly there was a time when advertising was easy.
You knew which paper was read
You knew which stations played which show and when
The internet changed everything. It shattered the distribution channel….people began getting media when they wanted and where they wanted
Mobile launched 4g in 2010 and 2013….2018 was an explosion (90% of US adults) – sell of smart phones. Sale of smartphones is 7x faster than the rate of population in this country
And now here come the Television sets. Web enabled portals to VOD and Streaming content
THIS IS SIGNIFICANT EVENT
Argualbly Chord Cutting, Chord Stacking has achieved scale (This should surprise no one)
Deloitte in March of this year reports 69% of US households are accessing long form video content (streaming / VOD). If you just look at Millennials the number is 88% with only 51% also subscribing to a cable service. A year ago in Q3 2018 cable subscriber cancellations exceed 1M in a single quarter and is accelerating.
Internet enabled entertainment in subscription, ad supported or both; is here to stay and growing.
THIS IS A SIGNIFICANT EVENT still in motion
GDPR in Europe, PIPEDA in Canada, CCPA in California, The Political Landscape…….They all point to future that must be considered.
People generally OK with non-PII data being used provided they have some clear control for opt in and exclusion
Companies with access to PII data will have a very difficult time using proprietary non-PII data while plausibly keeping the connection separate.
THIS IS SIGNIFICANT EVENT that must be factored into the development of addressable advertising solutions
And Finally
there is this growing DEMAND for proof. AKA: Attribution, ROI, ROAS.
This expectation will reshape TV buying processes and TV buying dollars
If your old like me then you remember 2013. Large websites sold direct – large bulk buys, display in RTB was remnant. The publisher was premium. Tell the story of the jeweler…..(CHANGED EVERYTHING)
It feels like 2013 all over again in TV. Large TV Groups selling direct, inventory mixed bag of PMP. Large minimums, 3rd party layers to compete.
We (like most adtech platforms) feel the migration moving closer and closer to the world we know we well. “Direct Response, CPA, CPL, AB Testing
A very high measure bar of measurement”. As it should be.
THIS IS SIGNIFICANT EVENT
Due to all the factors we just discussed….and in some part due to the proven success of DTC brands…..
We have seen expectations get more GRANULAR for audience customization, creative customization, bidding and optimization expectations and more.
A migration from large DMA type marketing to a household by household exection and ROI expectation
ADDRESSABLE: It should be an easy to understand terms
The simplest definition is “Household Level Advertising”. The ability to serve specific advertisements to specific households. For two neighboring households consuming the same content to receive different advertising.
Unfortunately as ISP Providers, Cable MPVDS and TV Broadcasting companies have been using this term for years….they have propagated that Addressable means more than than household level advertising. They want you to believe that addressable defines the technical methodology used to execute on household level marketing….
For years (in linear TV) this has been the IP address or IP centric Targeting methodologies
As Simpli.fi as we sought out to build an addressable audience targeting solution at Scale we looked at IP Targeting and found it to be incredibly flawed when it came to scale, precision and privacy compliance.
Because I donthave much time I will boil it down to one basic dilemma. Companies who have the full IP address are losing subscribers and facing a complicated legal landscape in which IP Address is likely to be considered PII some day in the future.
Already from where we sit, an extremely high number of apps and publishers are truncating or shortening the IP address. In short, once you move beyond the Clear scale concerns the fact is that most IP based targeting solutions are more like “Geo=block” or the audiences are locked up in “Segments” and every person in this room knows what happens to the fidelity of data of “Pre-built segments” being accessed by multiple buyers across multiple adtech stacks.
At Simpli.fi we have a built into our user interface the ability to build household level addressable audiences to individual advertiser taste quickly and transparently with more precision at scale.
In just a moment I am going to show you a fast demo of exactly how this works within our system. We call our planning and execution solution “Addressable Audience Builder”
HOW is it different than IP executed Addressable?
We have taken every known commercial and residential address in America and identified the latitude and longitude coordinates of the each taxable property line. So rather than converting 100, 100,000 or 1M household addresses to IP, we are instead converting those addresses to household level geo-fences.
From there we use our own heuristics as well as known 3rd parties like intent IQ to identify the web connected devices within the household and unify them under these specific household plats for audience targeting and attribution measiurement.
SHORT VERSION. We are using Mobile GPS to improve well beyond IP based location targeting for addressable advertising
For us the reasons WHY are clear
It’s more precise. As noted previously, most IP addresses are truncated and most IP based segments have poor match rates and a lack of granularity. With GPS are can curate households with almost no match rate loss and the most precise targeting possible.
By using this methodology, we can do household level marketing coast to coast, reaching millions of homes at a scale that no cable MVPD or TV broadcast group can mirror.
More control…..for advertisers and consumers. By leveraging mobile GPS consumers retain the right to control when and how their device location services are enabled in ways that are forirgn to them with Ips
For advertisers, it means no more bidding on marked up pre-built segments being trafficked across dozens of DSPs. It means executing on a local, regional or national campaign with a uniquely crafted addressable audience.
Unifying the devices in a household to common IAB compliant IFAs will mean that a creative can be shown on any screen with a high degree of online and offline visitation measurement accuracy.
Here is a rapid DEMO of how it works in our system.
Identify the ideal location or locations for you campaign
READ THE OPTIONS
In this case we have chosen to target two specific zip codes
Not that system gives you an instant household count of __________
From here Simpli.fi has a internal DMP capable of ingesting unstructured data so we worked across leading credit bureaus and data providers to get access their data by street address prior to any pre-built segmentation or taxonomy.
As a platform user you can select from over 800 demographic, psychographic and purchase behavior characteristic to layer in data for inclusion or exclusion.
As those audience characteristics are applied to the location selection….
The system will ”real-time” modify the household counts which in this case is an addressable audience of ______________
ALSO NOTE> you can layer in filtering to reach Residents, Visitors of both. There is multi-variable filtering to include things such as the frequency at which a device is seen within a household geo-fence during a week.
The exact same filtering can be applied if targeting a business address to filter visitors from employees.
Once this addressable audience is activated, provided you are targeting more than 1,000 addresses, the system will convert every targeted address into the geo-fnnce plats and leverage our cross-device identity graph to assemble the possible devices based on creative type, device selections and more
Within the system you choose to target all devices or select devices.
You can choose to target in-app, in-browser or both
If targeting or limiting delivery to large screen TVs; you further refine your targeting down to the streaming device. A list that is dynamically modified based on top devices we see and is ever changing.