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Should Brands Take Programmatic In-house?
Methods, Management and Mayhem
We are living in the age of
rapid iterations
Marketing is experiencing an innovation renaissance
• Programmatic, despite it’s many criticisms is still the biggest
innovation in media buying.
• Bench launched in 2012 when the term programmatic was just
beginning
• Since then the industry has grown by over 1100%
An interesting phenomenon is taking place
Are more brands moving in house?
• Headlines suggest leading advertisers are starting to take
programmatic in house
• These moves ranging from internal data science teams through to
signed contracts with new adtech vendors
Numberofemployeesoperatingprogrammatic
Number of directly owned contracts across tech, data and inventory
100% In-house
Numberofemployeesoperatingprogrammatic
Number of directly owned contracts across tech, data and inventory
A
B
C
Head Hunters
Contract Crusaders
All-miners
The 7 Deadly Sins of In-House
Programmatic – Part II
DSPs are desperate to differentiate
DSPs are desperate to differentiate
• Brands have to be smarter than ever in deciphering true value from
buzzword and narrative
• Forrester DSP Wave report states that difference is “subtle”
• Key to successful programmatic trading is to not rely on one DSP but
instead create a format for testing them by
• Engaging them in low risk pilots
• Placing them on the same scale
• Focusing on two key metrics: Goal Achievement and Extraction
All execution, no strategy
DSPs severely lack when it comes to offering strategic guidance
• DSP technology was built by developers, to help digital
marketers provide services to agencies to in turn connect ads to
consumers
• Journey is too long and disconnected
• Resulting in programmatic traders holding the keys to the
marketing kingdom
• Marketers need to get more involved by overlaying the logiv of
the purchase funnel on their programmatic activity
Awareness
Engagement
Leads
Direct
Response
Acquisition
Engaged Visitors
Leads
Quotes/Enquiries
Completed Views
Sales
Managed service or managed sales?
Managed Service offerings often lack the information transfer that
brands require.
Advertisers need to validate an internal or managed service offering by
ensuring they have three roles identified:
• Strategist - Strategy, KPI Management, Reports, Trend analysis, monitoring
channel selection, audience ideation
• Optimiser – Channel/platform optimization, budget allocation, bid
management,
• Tech Specialist – Source integration, audience mapping, tag management,
attribution modeling
Brand
Strategist OptimiserTechie
Head Of Marketing / Digital
Executive Team
Recruitment pool is dry and water isn’t
cheap
The programmatic talent pool is very dry due to the rapid growth of the
industry
• Leads to candidates being oversold as more experienced than they
are
• Key is to refer to the roles required in order of priority (see previous
slide
• Evaluate candidates by creating role-specific TESTS
Beware of the digital duopoly
The internet is building walls. The best walls.
The advertising duopoly of Google and Facebook is creating a
dangerous environment of walled gardens – non sharing of audience
information.
• Both sides are working to lock advertisers into their platform
• Facebook approach is by not sharing audience data
• Google approach is to make advertisers reliant on their tech stack
(analytics, ad serving etc.)
• Key is to objectively evaluate the performance of you media and hold
both giants and other providers accountable to YOUR metrics.
Owning your data is not the first step
The rise of DMP’s has sparked a constant rhetoric around “Owning your
data”
• Created an oversupply of data warehousing and undersupply of data
activation
• First step is not to warehouse data but actively segment and test
those segments
• This requires advertisers to take a varied approach to audience
activation by creating audience strategies
• Combinations of behavioural data segments overlaid but other
information (demographics, location, interest-based etc.)
Media Owners Suffering Premature
Evaluation
Marketing community and AdTech journalist praise New contracts over
actual performance metrics
• Headlines are about new tech contracts signed instead of successes.
• Marketers have a huge influence on the bottom line for companies
• We should start praising outcomes rather than Contract Crusaders
We’re having the wrong conversations
Transparency is on everyone’s agenda at the moment
• Transparency of costs IS important
• Transparency of value IS MORE important
• Google and Facebook are not transparent – however they provide
significant value so their channels are justifiable
• Ensure your provider is transparently justifying value and not simply
operating a pipe of arbitrage.
STOMP
STOMP is an easy mnemonic for how to evaluate ALL vendors
• Strategy
• Technology
• Operations
• Media
• Price / Value
Thank You – We look forward to
hearing from you!
1300 049 498
info@benchplatform.com
www.benchplatform.com

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Should Brands Take Programmatic In-house? Methods, Management and Mayhem | Gil Snir, Bench | Digital Espresso Breakfast May-June 2017

  • 1.
  • 2.
  • 3. Should Brands Take Programmatic In-house? Methods, Management and Mayhem
  • 4. We are living in the age of rapid iterations
  • 5. Marketing is experiencing an innovation renaissance • Programmatic, despite it’s many criticisms is still the biggest innovation in media buying. • Bench launched in 2012 when the term programmatic was just beginning • Since then the industry has grown by over 1100%
  • 6. An interesting phenomenon is taking place
  • 7. Are more brands moving in house? • Headlines suggest leading advertisers are starting to take programmatic in house • These moves ranging from internal data science teams through to signed contracts with new adtech vendors
  • 8. Numberofemployeesoperatingprogrammatic Number of directly owned contracts across tech, data and inventory 100% In-house
  • 9. Numberofemployeesoperatingprogrammatic Number of directly owned contracts across tech, data and inventory A B C Head Hunters Contract Crusaders All-miners
  • 10. The 7 Deadly Sins of In-House Programmatic – Part II
  • 11. DSPs are desperate to differentiate
  • 12. DSPs are desperate to differentiate • Brands have to be smarter than ever in deciphering true value from buzzword and narrative • Forrester DSP Wave report states that difference is “subtle” • Key to successful programmatic trading is to not rely on one DSP but instead create a format for testing them by • Engaging them in low risk pilots • Placing them on the same scale • Focusing on two key metrics: Goal Achievement and Extraction
  • 13.
  • 14. All execution, no strategy
  • 15. DSPs severely lack when it comes to offering strategic guidance • DSP technology was built by developers, to help digital marketers provide services to agencies to in turn connect ads to consumers • Journey is too long and disconnected • Resulting in programmatic traders holding the keys to the marketing kingdom • Marketers need to get more involved by overlaying the logiv of the purchase funnel on their programmatic activity
  • 17. Managed service or managed sales?
  • 18. Managed Service offerings often lack the information transfer that brands require. Advertisers need to validate an internal or managed service offering by ensuring they have three roles identified: • Strategist - Strategy, KPI Management, Reports, Trend analysis, monitoring channel selection, audience ideation • Optimiser – Channel/platform optimization, budget allocation, bid management, • Tech Specialist – Source integration, audience mapping, tag management, attribution modeling
  • 19. Brand Strategist OptimiserTechie Head Of Marketing / Digital Executive Team
  • 20. Recruitment pool is dry and water isn’t cheap
  • 21. The programmatic talent pool is very dry due to the rapid growth of the industry • Leads to candidates being oversold as more experienced than they are • Key is to refer to the roles required in order of priority (see previous slide • Evaluate candidates by creating role-specific TESTS
  • 22. Beware of the digital duopoly
  • 23. The internet is building walls. The best walls.
  • 24. The advertising duopoly of Google and Facebook is creating a dangerous environment of walled gardens – non sharing of audience information. • Both sides are working to lock advertisers into their platform • Facebook approach is by not sharing audience data • Google approach is to make advertisers reliant on their tech stack (analytics, ad serving etc.) • Key is to objectively evaluate the performance of you media and hold both giants and other providers accountable to YOUR metrics.
  • 25. Owning your data is not the first step
  • 26. The rise of DMP’s has sparked a constant rhetoric around “Owning your data” • Created an oversupply of data warehousing and undersupply of data activation • First step is not to warehouse data but actively segment and test those segments • This requires advertisers to take a varied approach to audience activation by creating audience strategies • Combinations of behavioural data segments overlaid but other information (demographics, location, interest-based etc.)
  • 27. Media Owners Suffering Premature Evaluation
  • 28. Marketing community and AdTech journalist praise New contracts over actual performance metrics • Headlines are about new tech contracts signed instead of successes. • Marketers have a huge influence on the bottom line for companies • We should start praising outcomes rather than Contract Crusaders
  • 29. We’re having the wrong conversations
  • 30. Transparency is on everyone’s agenda at the moment • Transparency of costs IS important • Transparency of value IS MORE important • Google and Facebook are not transparent – however they provide significant value so their channels are justifiable • Ensure your provider is transparently justifying value and not simply operating a pipe of arbitrage.
  • 31. STOMP
  • 32. STOMP is an easy mnemonic for how to evaluate ALL vendors • Strategy • Technology • Operations • Media • Price / Value
  • 33.
  • 34. Thank You – We look forward to hearing from you! 1300 049 498 info@benchplatform.com www.benchplatform.com

Editor's Notes

  1. I want to talk about innovation. And I wanted to Benchmark innovation against some of the other bid trends USB Remote control Cash Advertising rate card
  2. Avoid lock in contracts and test providers. How to manage partners? Put them on the same scale. Goal achievement and extraction. Perfect timing to be highlighting this phenomenon as Forrester just came out with a Headline DSP differentiation is subtle at best!
  3. Programmatic recruiters overselling their candidates. IAPA Skills survey - $190k roles in social media data science. Takeaway – if you are willing to train, less experience can be better. Key is to TEST, TEST, TEST
  4. Scenario – Coles and Woolies. Dangers of duopoly
  5. Not sharing impression data with 3rd party providers Doubleclick whispering to advertisers that they should be using their tech stack. Answer is neither are correct and the truth should sit with you as an advertiser, verifying the data on your side, to your own metrics
  6. Beware of the new wave of DMPs Insights are actionable, data is storable. And insights can be uncovered easier than ever before. Scenario – CDs and Spotify. Roadmap taking data in house.
  7. Example: Headlines are about new tech contracts signed instead of successes. As marketers, we have a huge influence on the bottom line of a company, and the only way that this type of behaviour is rewarded is if it is shared.
  8. We test the fat in food by the transparency of the bag, so lets test the transparency of media by its fat to meat ratio. Is the meat gained greater than the fat paid. DSP – managing them > goal achievement and extraction DSP – strategy > back to the customer sales cycle DSP – service – What does good service look like? Define roles Talent – hiring or testing – Interviews did not give the information we needed, so TEST, TEST, TEST Duopoly – walls and importance of being a 3rd party validator. Coles, woolies, Aldi. Ability to compare apples to apples because you as the consumer are the third party validator DMP – Segment and make it useful, before warehousing – 3RD Party data is third rate data. Most people are not using 1st well enough Journalists – judge by performance, not by new deals inked. Transparency of achievements will elevate marketing to where it should be Transparency – Transparency of performance will give better results than transparency by price STOMP
  9. Strategy, Tech, Ops, Media, Pricing and Value