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My background:I have been at Krux for 16 weeks.I have experience of being a publisher: I ran the digital arm of Future Publishing for 5 years; quite early into programmatic: one of the first media owners to trade cookie data with trading desks.Prior to Future, I set up and ran Audience Science in EuropeAnd I have experience in Search and Ad Networks.
The agenda for my presentation was informed by discussions with Tom Bang, Emediate.I’m conscious that you are all thinking about lunch so I plan to present for 20-25 minutes and leave time for questions.
What’s happening in the market…audience buying rather than context.
eMarketer yesterday revised its forecast upwards for RTB spending in the US:It is forecasting total U.S. RTB spending in 2013 to be $3.34 billionIf the growth matches eMarketer's expectations, RTB spending in the U.S. will increase by 73.9% over last year (2012).Spend on online display ads is expected to increase by 19% this year…so this mean thatadvertisers are investing more in technologies that drive efficiency over premium ad placements.
History: Founded in 2010, HQ in San Francisco, offices in NYC and London and an active presence in Asia Pacific.Mission statement: To help companies protect, manage, and monetize consumer data across screens and sourcesCreds: 60 clients inside 3 years; primary client base is premium publishers.
Krux is the only DMP providing an enterprise suite of products that mean websites can control all aspects of your data management strategy: Data Sentry: data tracking and monitoringSuperTag: tag management solution with the ability for very precise tag controlAudience Data Manager: powerful analytics and leading segmentation creationInterchange: target your audiences in all environments and platforms.
Regulators:Denmark has gone for a contextual level of consent for users under the ePrivacy Directive.Competing Publishers: last week we saw the announcement that News Corp is launching a global ad exchange: all its properties in all markets will trade, at least a portion of their inventory, programmatically.Networks/Platforms: when selecting your technology vendor, take time to fully understand their business model: do you really want your DMP partner to also be a behavioural data exchange or have an ad network business as well (making money from your aggregated data/audiences)?Agencies have taken the lead in building technology stacks and are showing publishers the way forward: there are good reasons for the relatively slow adoption of ad tech by publishers….(capex spend vs unproven roi).
1st party data: data collected by the website owner 3rd party data: aggregated data collected by a third party across a wide number if websites(2nd party data: for the purposes of this presentation, means audience data shared with a trusted partner for examples between two publishers)
Some examples of the different data sets which a good DMP can unlock for a media owner.
These are the key benefits/use cases Krux is delivering for our clients:Improve CPM’s on Direct Sold inventory: we see publishers typically having good profile data on 10-20% of their audience (usually by using registration/subscription or offline data sets). Being able to unlock insight into the anonymous 80% of web audience means you can command higher cpm’s: we have a media owner client in the UK launching an Audience Targeting product and achieving cpm’s which are 2x their contextual only ads.Create additional ad inventory (campaign reach) with audience extension: Most publishers experience high demand/restricted inventory for contextually-rich environmentsFind and target those audiences elsewhere though: behavioural re-targeting, lookalike modelling and also being able to buy your audience segments on Exchanges (Krux is one of the few DMP’s to have native bidders in its platform which enable our clients to buy across the AppNexus and Google Ad Exchanges.Increase CPM’s on programmatic sold inventory: what is your data strategy? Do you want to make all of your data available for advertisers to buy in an RTB environment?We at Krux believe it makes more sense to have a two tier data strategy;Sell your most valuable data/inventory directly using your sales team: you can still execute the sell programmatically either on your own sites or via a private marketplacePass more generic data insights (such as age and gender) into the inventory you give to SSP’s. The increased insight should make the inventory more attractive to buyers and result in increased bid volumes. Krux has a client in Europe which is seeing exactly this type of revenue uplift from infusing demographic variables into its SSP inventory.If you don’t know what data is valuable to your SSP advertisers, ask your SSP what they are seeing in terms of most bidded variables across the industry.Create smarter ad products:Use the audience insights you are able to unlock using your DMP to target new advertisersCombine on and off site audience delivery to offer advertisers blended cpm’s; target advertisers who don’t usually pay cpm’s you will accept on siteRe-target users which have engaged with advertiser content on your sites (native advertising, sponsored content, ad interactions): these are highly valuable – engaged - audiences for your advertisers. If they won’t buy them then other advertisers in the same sector might be interested.Grow e-commerce revenues: sell magazine subscriptions, drive app downloads, digital subscriptions, reader offers and so on.
Many of the features/benefits which media owners unlock from using a DMP apply equally to brand advertisers as well:
Krux is starting to see advertisers using a DMP in combination with a DSP: DMP insights power the DSP buying strategy.Krux can integrate offline data sets, mobile data etc with online browsing behaviour: we match against a unique ID such as email address.Increasingly, clients are using their DMP to define content segments for specific audiences: Taboola and Outbrain contact blocks are dynamically served to different segments of users.
Key items to note:All data is stored in the global Krux User ID. The Krux User ID is a third party cookie that is shared across all Krux publishers. In other words, an end-user (a unique browser on a machine) has the same Krux User ID across all the publishers that have deployed the Krux Control Tag.
Interchange: Monetize on Terms, Times and! Channels of your ChoosingInterchange O&O (owned and operated): allows a client to leverage audience data directly on their pages either to target adverts or to customise contentInterchange Connect: allows clients to build relationships with other clients, sharing data with trusted partners (advertisers/publishers/vendors) to create products which can then be monetised by either partnerInterchange Extension: allows clients to extend the frequency of impressions available for their audience by acquiring additional impressions against that audience from RTB- based inventory sources such as AppNexus or Google Ad Exchange
Client side integration: All clients that use the Krux DMP have access to Krux's Tag Management module called SuperTag. Krux can use SuperTag to deliver the user audience segment data directly to the SSP via a pixel call.The Server-to-Server (S2S) integration method involves 2 steps:1. Krux and the SSP synch their respective User IDs via "Cookie-Matching"2. Krux provides SSP with a daily User Audience Segment map file. The SuperTag module within the Krux DMP provides a very precise level of control for the website operator: tags on page can be managed so they only fire if the user is in a specifc segment, is frequency capped, geo-targeted and within defined date ranges: we’re enabling website operators to share data but never lose control of the data.Key items to note:All data is stored in the global Krux User ID. The Krux User ID is a third party cookie that is shared across all Krux publishers. In other words, an end-user (a unique browser on a machine) has the same Krux User ID across all the publishers that have deployed the Krux Control Tag.Because data is held in the Krux ID, when a client uses Interchange Extension to buy inventory across an Exchange, it is not possible for other businesses to know which client is buying the inventory…all they see is Krux.Krux can also work using Deal Id’s: usually obtained from the SSP partner.
This scenario shows the bi-directional set up between Krux and an SSP.(Krux works equally well with all SSP’s).Using this method, Krux clients can push data enhanced inventory to the SSP.Krux receives the ad-serving logs which we ingest to provide yield analytics reporting: campaign delivery information overlaid with segment analysis reporting (which audience segments are peforming best).
Final thoughts on data ownership: ultimately the user has the decision on whether their data is collected or not:The impact of the ePrivacy Directive and Self Regulation programmes such as the EDAA (European Interactive and Digital Advertising Alliance) framework for Online Behavioural Advertising has resulted in online user becoming aware of when/how they are being tracked.Many are using the ‘I’ icon in ads to manage preferences.Others are clicking on ‘Cookie’ notices on sites and then changing their browser settings.The focus for the online advertising industry should be to be transparent and open about the reasons for data collection and the benefits it provides to users (in the shape of more relevant advertising, content and services offered). Research has shown that when educated on why tracking is occuring and the benefits of it, approval rates from users can almost double.Unless we get the messaging right to users ‘Big Data’ can become ‘small data’ very quickly.