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1. Brand Marketing via programmatic buying
or
How to have your cake & eat it too
Bob Arnold
Associate Director Global Digital Strategy
@BobbyArnold
2. of digital media buyers list audience
50% targeting capabilities as one of the
most important things they look for
in display ad buys
30% list low CPMs
Forrester Research, “The State of the Digital Media Buyer, July 2011
3. Have your cake… Eat it too…
3
Maximize cost efficiency As effective as other buys
4. Why is Kellogg's investing
in programmatic buying?
Question:
Can programmatic buying be a
more cost-efficient and effective
means of buying?
Answer:
Yes, 5X+ improvement in ROI
8. The Right Measurement
Short Term Long Term
Success Metrics: Success Metrics:
Drive campaigns to hit Drive demonstrable brand
audience on-target, lift and brand effectiveness
on-screen viewability
and frequency metrics
10. How We Had Our Cake...
Getting Ads to the Right Audience
11. How We Had Our Cake...
Efficient Rates for Audience Views
*Effective CPM calculated using overall CPM, on-target impressions, and % of ads in view. Values are indexed.
12. ... and Ate it too
And Ate it Too…
Improved ROI from Two Market Mix Models
Brand 1 ROI Brand 2 ROI
6X
5X
3X
2X
ROI ROI
Year 1 Year 2 1H Year 3 Year 1 Year 2 1H Year 3
13. What's Next for Programmatic?
• More Inventory
• More Formats
• Better Measurement
• Real-time Signals
Programmatic is not just for direct response Display brand buys need to perform
Quote from Bob: "Before programmatic buying we were doing direct and ad network buys. The process was that the brands would give an audience brief and our agency partner would look for the sites that 'over-indexed' for that type of consumer using their internal tools and gut- 'spray and pray.'“ The results are in…and looking good.
Kellogg's believes creatives are the most important piece of their strategy They pre-test creatives and messages to isolate value of each BEFORE testing media "Programmatic" testing consists of determining value of media accessed by their DSP partners, agnostic of the effect of creative Control for media quality across partners with brand safety solution Centralize Buying: Consolidate buying among fewer partners, focused on those that bring unique value to the table (performance, reach, inventory access, technology, data, etc.) Drive Value Through Audiences: Centralize approach around ownership, management & buying of audiences Structure buying strategy and campaigns to align with success metrics
Kellogg's measures success in terms of audience reach and interaction - Short Term Success Metrics: Drive Campaigns to hit Audience On-Target, On-Screen Viewability and Frequency Metrics - Long Term Success Metrics : Drive Demonstrable Brand Lift and Brand Effectiveness Brand marketers also use these metrics for measuring programmatic buys - Audience reach and frequency - eCPM of ads that are actually viewed - Lift in visits to site, Time on site - Interaction rate of creatives - In-store sales lift
Proper use and management of data is key to keeping the programmatic recipe fresh and tasty Invite Media working with Kellogg's to determine the 1st and 3rd-party data best practices for their account and other brand marketers Aiming to drive performance improvements and get to Holy Grail of data-driven messaging strategy for brand advertising
Quote from Bob: "When we moved to experiment in programmatic buying we also implemented across company in-market metrics that measured areas like- demo targeting, frequency and view-ability. We found that programmatic buying excelled in each area and was cheaper." We're getting ads to the right audience. From the onset, we've shown the ability to show strong performance against Kellogg's key campaign success metrics: what percent of our impressions are hitting their desired audience and how many of those ad impressions were actually viewed on a user's screen.
We're paying an efficient rate for audience views . We haven't just measured what the overall CPM for our buys is. We calculate an effective CPM based on our on-target impression and "in view" percentages. These "effective" rates are the lowest on RTB display compared to other channels.
Before programmatic buying we were doing direct and ad network buys. The process was that the brands would give an audience brief and our agency partner would look for the sites that “over-indexed” for that type of consumer using their internal tools and gut- “spray and pray”. So when we moved to experiment in programmatic buying we also implemented across company in-market metrics that measured areas like- demo targeting, frequency and view-ability. We found that programmatic buying excelled in each area and was cheaper.
Programmatic brand buying will continue to evolve in 2012 - More Inventory : working with publishers to move into upper-tier inventory access through Private Exchanges & Preferred Deals - More Formats : mobile, video inventory moving into programmatic, allowing for cross-channel buying at-scale - Better Measurement: New forms of measurement emerging for programmatic, integration with broader attribution strategy - Streamlined Execution : Programmatic buying through single interface with DoubleClick Digital Marketing