Why A Programmatic Advertising Strategy Is No Longer Optional
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Programmatic advertising is slowly becoming a popular new trend among advertisers. It not only makes ad transactions more efficient, but also more effective, as long as the right data is applied. Programmatic buying is on track to make up $14.88 billion of the approximately $58.6 billion digital advertising pie in 2015, according to eMarketer. That’s a nearly $5 billion leap from 2014, when it accounted for $9.9 billion. In short, if you’re not thinking about a programmatic advertising strategy, you should be. In this webinar presentation, experts from Quantcast, a data-intelligence platform for programmatic advertising, and Hanapin Marketing discuss what programmatic buying is, how it works, the value of serving ads to a highly-qualified audience, and insights we’ve discovered using the technology.
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Why A Programmatic Advertising Strategy Is No Longer Optional
- 1. #thinkppc Why a Programmatic Advertising Strategy is No Longer Optional &HOSTED BY:
- 2. #thinkppc Presenters Tommy Schanzer • Sales Trainer at Quantcast • Trainer for Real-Time Academy education program • @quantcast Diane Anselmo • Senior Account Manager at Hanapin Marketing • PPC Hero Blogger • @dianeanselmo
- 3. #thinkppc Join the conversation Include the hashtag #thinkppc in your Twitter tweets. Or use the webinar question box to send us questions.
- 4. #thinkppc Live Poll Question #1 How familiar are you with programmatic? #thinkppc A. Very familiar. B. Familiar. C. I know what it is, but that’s about it. D. Not at all familiar.
- 5. #thinkppc Live Poll Question #2 How would you describe your marketing team? #thinkppc A. I’m part of an in-house marketing team. B. I do all the marketing myself. C. I work for an agency. D. I’m a consultant.
- 6. MEASURE About Quantcast We help you advertise to your ideal target audience with customized solutions for every partner. ADVERTISE
- 7. Our sector evolves at top speed. The Real-time Advertising Academy is a vendor-neutral education program that looks at the impact of real-time bidding on digital marketing, how it works, and the upcoming trends and challenges in this space. Real-Time Advertising Academy
- 8. Agenda • The Evolution of Digital Advertising • The Opportunity of Programmatic • How Real-Time Bidding Works • The Importance of Real-Time Data • The Agency Perspective • Questions?
- 9. Introduction: The 20-Year Evolution of Digital Advertising
- 10. 10 Advertising Timeline 1844MAGAZINE S NEWSPAPER S1650 BILLBOARDS 1867 1872CATALOGS PRINT BROADCAST POSTERS Pre 1650 1941TV DIRECT MAIL 1954 1922RADIO
- 11. 11 With Each New Medium, A New Strategy
- 12. 12 A world of information creates a poverty of attention. Herbert Simon 1971
- 13. 13 1994BANNERADS/GMAIL 2003GOOGLE ADSENSE 2007FACEBOOK/YOUTUBE 2008LINKEDIN 2009MOBILE APPS 2010TWITTER 2012FACEBOOK MOBILE PPC 2000 1844MAGAZINE S NEWSPAPER S1650 BILLBOARDS 1867 1872CATALOGS PRINT BROADCAST DIGITAL POSTERS Pre 1650 1941TV DIRECT MAIL 1954 1922RADIO Advertising Timeline
- 14. 14 With Each New Medium, A New Strategy
- 15. 15 3,000Web Pages a month 93Web Pages a Day How can we find relevance in all of this? 10 Challenge: Web Pages 1 Trillion People 3 Billion
- 16. 16 Every two days we create as much information as we did from the dawn of civilization up until 2003. Eric Schmidt
- 17. The Opportunity for Marketers Today Unprecedented Technology Unprecedented Measurement Unprecedented # of Touchpoints 1010101 0101101 0101010 1101010 1010110 1010101 0111010
- 18. 18 Programmatic offers countless opportunities for marketers
- 19. Traditional Approach: Content-based Targeting Decisions Entertainment News February 2014 March 2014 January 2014 May 2014 June 2014 April 2014
- 20. 20 Content-based Targeting Decisions SinglePublisher ACME Cat Food TM ACME Cat Food TM
- 21. 21 Content-based Targeting Decisions SinglePublisher Target Audience • Female • 25-54 • Cat owner • Chief household decision-maker Actual Audience • Female + • 25-54 + • Cat owner + • Chief household decision-maker = 5.7% total audience
- 22. Rather than target audiences, target individuals
- 23. News.com Buying via RTB helps advertisers target better News.com News.com News.comNews.comNews.comNews.com
- 24. What is Real Time Bidding? Entertainment News February 2014 .0006 seconds March 2014 January 2014
- 25. What is Real Time Bidding? $ 1010101 0101101 0101010 1101010 1010110 1010101 0111010 α $ $
- 26. 26 Ad Exchanges: The Full Reach of Digital Media Billions of impressions are available daily across major exchanges
- 27. 27 Ad Exchanges: The Full Reach of Digital Media Ads in all platforms (desktop web, mobile, video) are available in exchanges
- 28. 28 Ad Exchanges: Real Time Auction Decisions With an auction duration of just 0.1 seconds—which includes network communication between the bidding party and the exchange—this is how bidding is determined: 0.50? 2.50? 5.00? 1 2 3 4
- 29. The Importance of Real-Time Data
- 30. 30 The Interactive Media Ecosystem
- 31. 31 Publisher / Advertiser Direct
- 33. 33 Ad Network
- 34. 34 Ad Exchange
- 35. 35 Supply Side Platform (SSP)
- 36. 36 Demand Side Platform (DSP)
- 37. 37 Demand Side Platform (DSP) 2nd/3rd Party Data Advertiser
- 38. 38 1st Party 2nd Party 3rd Party Those We Know vs Those We’ve Yet to Meet
- 39. 39 Data Management Platform (DMP)
- 40. Not All Data is the Same 1st Party 2nd Party 3rd Party Data created and owned by the source. Largely collected from pixel’s placed on advertiser or publisher’s site Primarily used for retargeting/remarketing Sharing of 1st party data to another party directly or via DMP Exclusive agreements to resell data measured directly to other partners Agreements often negotiated via rev-share or flat fee Data collected by a third party used to inform a buyer’s knowledge of users Widely available to purchase in the marketplace
- 41. 1st Party Data Who Owns It? How Is It Used? How Is It Collected? Advantages 1st party data is created and collected by the advertiser or publisher. Primarily used for direct targeting, such as remarketing, retargeting or upselling existing customers. Data is collected via pixels placed on the advertiser’s or publisher’s site. This can include site registrations / logins, social media interaction, and participation in surveys. Closest to the source, with little to no latency between collection and analysis / action.
- 42. 2nd Party Data Who Owns It? How Is It Used? How Is It Collected? Advantages Owned by the source, but shared directly with another party in exclusive agreements. Primarily used for direct targeting, such as remarketing or retargeting. Same process as 1st party data, but now shared directly with another partner, like a publisher, advertiser or DMP. Competitive advantage over 3rd party data because of the exclusive nature.
- 43. 3rd Party Data Who Owns It? How Is It Used? How Is It Collected? Advantages Owned by the source and shared with outside partners. Data is used for audience measurement and targeting by digital marketers. Data is collected from the source and distributed out to other partners in non-exclusive agreements. Easy to acquire because it’s collected by many parties and readily available for purchase in the marketplace.
- 44. 44 The Interactive Media Ecosystem
- 45. Scale Efficiency Precision Targeting Why Programmatic? © 2015 Quantcast Confidential
- 46. #thinkppc Dissecting the Data Search and Display are siblings – both are trying to put the most relevant ad in front of the user in order to get them to convert or take a given action. Search uses intent data, helping to answer the consumers’ questions in the most relevant way. Display (and thus, programmatic) uses a consumer’s profile data to provide an ad that is relevant. The reason programmatic is moving in-house and towards search teams is because of the volume of data, and the ability to manage it. An Agency Perspective on Programmatic
- 47. #thinkppc Set-Up Process Site Tagged Data Collected Audiences & Lists Automatically Created Ads Placed Data Analysis & Optimization
- 48. #thinkppc Deep Dive into the Data
- 49. #thinkppc Deep Dive into the Data
- 50. #thinkppc Deep Dive into the Data
- 51. #thinkppc Deep Dive into the Data • Identify the audience • Understands user intent • Message the audience accordingly
- 53. #thinkppc Thank you for attending our webinar! #thinkppc Contact us: Hanapin Feedback: marketing@hanapinmarketing.com Quantcast Feedback: inquiries@quantcast.com
Hinweis der Redaktion
- Carrie
- Carrie (unless Susan really wants to)
- Carrie does #1
- Susan does question #2
- WHAT WE DO - INTRODUCTION So just a quick introduction about what we do We got our start with our Measure product in 2006. Publishers like Time Inc and Yelp would implement our pixel, and in exchange, we’d give them insight into what makes their audiences unique. That’s age, gender, HHI of the audience, on a page by page basis. Publishers share that data with their advertisers, so they could be more effective in their direct ad sales. The product is free, and it turns out publishers liked it - not just the largest ones, but the smallest ones too. Today, we have our tags on millions of web and mobile destinations, such as Buzzfeed, Vox, and that allows us to see the whole online universe, in real time. We see each online user, as they move from site to site to app, over 600 times a month. We use that data, that understanding of online consumer behavior, to help you advertise to your ideal target audience, to increase customer acquisition and customer value.
- In order to understand the present and future of our digital landscape we need to go back and look at the past Within 498 years there were only 9 channels to deliver advertising to consumers In 1970’s in the UK there were only 3 TV channels. BBC1, BBC2 and ITV, and only one was a commercial channel. Buying media was straightforward. Stories Endear ourselves to them… we understand this landscape is crazy In history of mankind, its pretty amazing to think mass media is only 400 years old…starting with printing press to produce mass posters to get the word out about things Newspapers came next and for 200 years there weren’t any new mediums In 20th century broadcast became a player in mass media Were really not that old hang out here for a little bit
- With each platform, a marketer would be required to understand the medium they’re in, the prices that are reasonable, the ad creative they needed to generate, and so on. … Literally learning a new skill set.
- At around the time when we had 3 TV stations a guy called Herbert Simon articulated the concept of Attention Economics. This was in the 1970’s, before the Internet. He predicted the future when our attention was fragmented. Imagine how we feel now! Story He was a social scientist/psychologist – studied attention economics (study of things vying for your attention and ability of subject to focus) How can you get someone's attention when its being pulled in so many directions – kind of the basis and challenge for advertisers (find them and get them to pay attention)
- Since 1994 we have seen a total proliferation of our industry. The internet has transformed our lives and our industry. Our lives and the consumers lives are always on 24/7. This highlights the same problem we face today with advertising. Consumers move around the internet in real time. There is so much going on they have little focus. Advertising has the risk of being just noise if we are not careful. We as an industry have a duty to find relevance. Story Look what has happened in 20 years… With each new medium, you have to figure out how to reach people – ITS HARD AND OVERWHELMING How do you know if it works, if its effective, how to choose one over the other
- Consumers like to snack on content, and are much less loyal now. They move the quickest and most convenient place to get their information. Story this data comes from Nielsen, 2.4 billion people on desktop computers
- Let’s bring this back to digital advertising. There is one thing the internet has made a lot of – data. This creates a huge challenge and also a huge opportunity. Story you go to a wedding and uploaded a bunch of pictures and now 20 of your friends look at it, you just created 20 page views Or posted something on tumbler, or forwarded something and multiple opened it, etc – buzzfeed articles Facebook users share nearly 2.5 million pieces of content. Twitter users tweet nearly 300,000 times. Instagram users post nearly 220,000 new photos. YouTube users upload 72 hours of new video content. Apple users download nearly 50,000 apps. Email users send over 200 million messages. Amazon generates over $80,000 in online sales.
- Infrastructure. Data centers. Algorithms. We’re not slowing down anytime soon. We continue to be more committed and get better at understanding audiences – not only who is consuming media, but who is in market for a product. We have an unprecedented number of touchpoints that allow us to access and influence an individual – an extraordinary opportunity for marketers.
- [EXPLAIN PROGRAMMATIC HERE] Let me explain. Every time you go to a website, there is a high chance that while your page is loading there is an auction taking place for the ad slot on that page. There are a number of companies out there (including us) bidding to show you an ad at that moment in time. Advertisers now have the most powerful tools at their disposal to be the best marketers they can through the use of data. Data and science can now be used to deliver advertising rather than human intuition. This is by far the biggest opportunity that advertising has seen since the dawn of mass communication. The promise of the internet is being fulfilled John Wanamaker quote Not knowing what impact an ad has had on an audience has been one of the fundamental problems of advertising until now. The internet has created a huge opportunity through real time advertising Story Even though we have all of this volume, we actually – this network of information allows us to access individuals and their media consumption experience in a way we haven’t before You can meet people where they are, rather than waiting for where they might be or you hope they might be
- The older way was for advertisers to work directly with individual publishers, setting up campaigns that ran on the site for an extended period of time. It usually took weeks to submit a proposal, set up the campaign, etc.
- RTB technology allows advertisers to examine site visitors one by one and bid to serve them ads almost instantly.
- A consumer would barely notice the shift, except that ads might seem more relevant to exactly what they are shopping for. Hundreds or thousands of different people could be on the same news site at once and be seeing personalized ads for them. Story We all in this room could be on the same website seeing different ads
- Real time bidding (RTB) is a newer model for buying advertising. The older way was for advertisers to work directly with individual publishers, setting up campaigns that ran on the site for an extended period of time. It usually took weeks to submit a proposal, set up the campaign, etc. Now, instead of buying a whole campaign ahead of time, advertisers only bid on the individual ads they want in real time, only buying what they need in milliseconds. Story Traditional way is a content based targeting decision It takes a long time, you buy a bulk of inventory ahead of time It can be great if your audience aligns really well with it, lets say you’re in the market for cat food, you might go to a pet specific site, or endemic site As an advertiser, you would know that your audience aligns really well with that site by using an audience analytics company like nielsen, comscore, and quantcast offers that as well But here’s the thing… Once you start adding these segments together, you start losing the people that meet these qualifiers, a small percentage of total audience Google created 1:1 advertising through search where you can now see the people who are in market seaching, rather than using a small % of total audience that is in market Yahoo, Microsoft, and other players followed – continued to develop search algo’s to become more accurate and efficient So then the question became, how could we do this in display advertising and create this 1:1 experience When you go to google and yahoo, you are on their platform and giving them information. However, the technology in the marketplace didn’t allow this scale since you were dealing with individual sites or networks When ad exchanges launched in 2009, you now had this opportunity – no longer had to buy volumes of inventory on specific websites
- Real time bidding lets advertisers buy ads in the milliseconds between the time someone enters a site’s web address in a browser and the moment the page loads. It’s a fast-moving marketplace that’s changing the face of our industry. Story Person arrives at site Exchanges say: hey participating vendors, would you like to bid on this cookie Vendors quickly crunch numbers and algorithm to determine who that cookie probably is Maybe they have 1st party data about you from their CRM, or maybe they are using predicative intelligence to make assumptions based on what you do online Vendors then come back with a bid or no bid – either way they must respond or they get throttled Exchange says Vendor XYZ wins, and they win the right to show the ad Vendor taps ad server for creative and pushes it through – all happening in a matter of milliseconds You’re no longer buying inventory to be in an environment, you’re buying inventory to meet a prospective customer where they are Give car insurance example
- So let’s break down how this works a little more. Individual sites identify ad inventory that they’d like to sell in the exchange, which is passed dynamically to this marketplace. Buyers can bid on inventory in real-time auctions, meaning pricing is different in every single auction, based on what the bidder thinks it’s worth. This process is called real-time bidding, or RTB. Because of this massive collective marketplace, billions of ad impressions (individual ads) are available daily across all the exchanges. (There are multiple, just like there are multiple stock exchanges.) Story How much inventory should a publisher put up on exchange? Its up to them Their business model is to provide free content and make $$ from advertising They might have an internal sales team, you know the people that call you all the time Those folks are trained to develop custom, high impact sponsorships on their sites And a sales force like that obviously comes with a cost However, no matter how good of a job they do, its difficult to sell all of your inventory – especially if site is growing fast – especially if theres a huge news day and your site has a spike in traffic So exchanges to allow websites to sell some of their inventory in real time, and it can be really good inventory Or maybe a site is newer to advertising and they sell all of their inventory – its completely up to them Lets say you’re a farmer, what are some of the trendy hip artisenal vegetables right now? Lets say you have a relationship with best restaurant in town, they buy some of your stuff. A speciality store has another agreement, and you sell some more, then you go to a farmers market and sell the rest. It’s up to you to decide you want to manage your harvest and increase yield
- And not only can you buy inventory for standard web sites in exchanges – you can also buy inventory for mobile (phone, tablet) and online video. And as you may know, even Facebook has an exchange within its own inventory to monetize its enormous amount of site traffic. Exchanges are the new model for pricing and buying ad inventory, driven more dynamically by supply and demand. One day we’ll be buying and selling TV ads like this.
- So to visualize how this works, this is what needs to be decided in the RTB process – 1) given this user on this site at this particular time, 2) how much to bid? 3) And what ad creative to show for which campaign?
- Story Even doing great market research, you’re still going to have outliers. Don’t you want to reach them too? It can make a lot of sense to work with an individual publisher – if you’re about to launch a movie, go on Fandango
- Story How would you know where those people are? You use audience analytics
- Story What if you’re someone with a huge audience, like a telecomm company, take AT&T for exmple Ad networks come along as a middle man to get inventory from publishers and then reselling Create buckets like women’s lifestyle, luxury travel, financial news Advertisers could buy in that bucket at reduced price knowing they are on a certain collection of sites – but not know how much of their ads would show up on any one site in that group So you see networks all the time… think of when you’re watching late night tv and you see some crazy ads and you know… that ad is not for me. You can tell they bought that at a cheap price
- Story Along comes the ad exchanges allowing for more flexibility, scale, and efficiency With this new process came new strategies, tactics, and a whole new set of players Because of this new way of doing things, players arose to help specific parts of this process
- Supply side: publishers want to sell their stuff, SSP helps them put it up for sale Use topical example to explain how an SSP works to make new inventory available in real time – especially when there are traffic spikes Take toothpaste for example, say you’re colgate and you want to sell it in target, you need a distributor to get it there – SSP’s are like it, they help them get their stuff up for sale Comments: How to distinguish premium inventory vs regular inventory Prices associated with direct buys, PMP, Open RTB – types of inventory where ads would be shown Ronnie Jenkin
- Demand side platform, or buy side, helps you buy stuff on the exchange. There’s all this stuff for sale, how do you access it Like a stock excahnge, you cant walk on the floor of the NYSE and say, I WANT THIS STOCK. You need a broker like etrade or schwabb to do that – think of a DSP like that
- Demand side platform, or buy side, helps you buy stuff on the exchange. There’s all this stuff for sale, how do you access it Like a stock excahnge, you cant walk on the floor of the NYSE and say, I WANT THIS STOCK. You need a broker like etrade or schwabb to do that – think of a DSP like that
- Don’t overthink this… DMP helps you manage all of the data that you have and are using to help make a decision about how to market to people Say you’re a catalogue and someone buys from you once a month – you’re going to send that every month Say you have someone who buys every holiday, maybe you only want to send them a couple catalogues a year – its totally up to you Maybe you want to scale out and find more buyers, you’d need to get more data on new people out there Has anyone moved recently? When you change your address online you get these offers for coupons – you sign up and now they know who you are Have you ever got an email – we miss you, please come back here’s 25% off Sometimes we tell marketers who we are, sometimes we don’t but we give off signals so they can find us Have you ever used Mint.com
- Verizon buys AOL Rubicon buys Chango Twitter buys Triggit Yahoo buys Brightroll Google buys Adometry AOL buys Convertro LinkedIn buys Bizo Quantcast buys Struq RocketFuel buys X+1 Axciom buys Liveramp ----- Meeting Notes (6/4/15 14:07) ----- IAB ecosystem video
- October of 1994 was actually the first Digital Ad, In the beginning buying digital display ads was a simple process. Very few websites and everything was done direct. You negotiated an agreeable CPM for a set period of time. As more websites began popping up, there became an increasing need for things to be managed in an easier way. You weren’t going to execute 100 small media buys. This problem resulted in the development and formation of Digital Ad Networks which controlled inventory for 1,000’s of sites and packaged them based on similarities Search Advertising launched in the year 2000 In 2005 the ad exchange was created. This was and still is like a stock market for digital ads. Exchanges added scale, now networks and publishers could sell inventory in an exchange which was an open market for buyers and sellers to have access to even greater volumes of impressions In 2007 the DMP launched. The exchange needed a technology to manage the high volume of data and better hit the desired audiences In 2011 RTB goes mainstream which enabled transactions to take place in real time, this was the big catalyst for the world we live in today. Most of the strengths search advertising has offered throughout the years has been adopted by the display marketplace through the years. Today Programmatic empowers agencies and clients with control. It uses AI (intelligent) software to purchase advertising. By focusing on #1 the audience and #2 Robust Data and Technology to make smarter decisions
- Programmatic Workflow
- October of 1994 was actually the first Digital Ad, In the beginning buying digital display ads was a simple process. Very few websites and everything was done direct. You negotiated an agreeable CPM for a set period of time. As more websites began popping up, there became an increasing need for things to be managed in an easier way. You weren’t going to execute 100 small media buys. This problem resulted in the development and formation of Digital Ad Networks which controlled inventory for 1,000’s of sites and packaged them based on similarities Search Advertising launched in the year 2000 In 2005 the ad exchange was created. This was and still is like a stock market for digital ads. Exchanges added scale, now networks and publishers could sell inventory in an exchange which was an open market for buyers and sellers to have access to even greater volumes of impressions In 2007 the DMP launched. The exchange needed a technology to manage the high volume of data and better hit the desired audiences In 2011 RTB goes mainstream which enabled transactions to take place in real time, this was the big catalyst for the world we live in today. Most of the strengths search advertising has offered throughout the years has been adopted by the display marketplace through the years. Today Programmatic empowers agencies and clients with control. It uses AI (intelligent) software to purchase advertising. By focusing on #1 the audience and #2 Robust Data and Technology to make smarter decisions
- October of 1994 was actually the first Digital Ad, In the beginning buying digital display ads was a simple process. Very few websites and everything was done direct. You negotiated an agreeable CPM for a set period of time. As more websites began popping up, there became an increasing need for things to be managed in an easier way. You weren’t going to execute 100 small media buys. This problem resulted in the development and formation of Digital Ad Networks which controlled inventory for 1,000’s of sites and packaged them based on similarities Search Advertising launched in the year 2000 In 2005 the ad exchange was created. This was and still is like a stock market for digital ads. Exchanges added scale, now networks and publishers could sell inventory in an exchange which was an open market for buyers and sellers to have access to even greater volumes of impressions In 2007 the DMP launched. The exchange needed a technology to manage the high volume of data and better hit the desired audiences In 2011 RTB goes mainstream which enabled transactions to take place in real time, this was the big catalyst for the world we live in today. Most of the strengths search advertising has offered throughout the years has been adopted by the display marketplace through the years. Today Programmatic empowers agencies and clients with control. It uses AI (intelligent) software to purchase advertising. By focusing on #1 the audience and #2 Robust Data and Technology to make smarter decisions
- October of 1994 was actually the first Digital Ad, In the beginning buying digital display ads was a simple process. Very few websites and everything was done direct. You negotiated an agreeable CPM for a set period of time. As more websites began popping up, there became an increasing need for things to be managed in an easier way. You weren’t going to execute 100 small media buys. This problem resulted in the development and formation of Digital Ad Networks which controlled inventory for 1,000’s of sites and packaged them based on similarities Search Advertising launched in the year 2000 In 2005 the ad exchange was created. This was and still is like a stock market for digital ads. Exchanges added scale, now networks and publishers could sell inventory in an exchange which was an open market for buyers and sellers to have access to even greater volumes of impressions In 2007 the DMP launched. The exchange needed a technology to manage the high volume of data and better hit the desired audiences In 2011 RTB goes mainstream which enabled transactions to take place in real time, this was the big catalyst for the world we live in today. Most of the strengths search advertising has offered throughout the years has been adopted by the display marketplace through the years. Today Programmatic empowers agencies and clients with control. It uses AI (intelligent) software to purchase advertising. By focusing on #1 the audience and #2 Robust Data and Technology to make smarter decisions
- This slide sums up the high level purpose behind programmatic. Programmatic helps make sense of the vast amount of data that’s available and can be boiled down to identifying as an advertiser who your audience is, what their main intent is, and messaging them accordingly to get them on the road to conversion