What's Next: Programmatic Marketing

Ogilvy Consulting
Ogilvy ConsultingVP, Regional Strategy Director, Social@Ogilvy, Ogilvy & Mather Worldwide um Ogilvy Consulting
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What’s Next:
Programmatic
Marketing
Welcome
DAYOAN DAUMONT
PARTNER

OGILVY CONSULTING
ERIC BADER
PARTNER DIGITAL STRATEGY
OGILVY CONSULTING
LAURIE CLOSE
CONSULTANT

OGILVY CONSULTING
Tell us
where you
are dialing
in from!
What’s the weather
like in your city?
Do you
want this
deck?
It will be available for download
shortly after the webinar on:
slideshare.net/socialogilvy
And the recording up on
facebook.com/OgilvyConsulting
Agenda
The “why, what and how” of the ways in which
programmatic marketing can be essential to delivering
outstanding marketing performance.
 
Some basics of media planning & buying
• What advertisers pay for
• Overview of Media Owners & Platforms
• Evolution from traditional/analog to digital/automated
Introduction to programmatic
• Roots in technology allocations
• Benefits
• Data & Targeting
• Pricing
Programmatic
is a revolution
…not just in media buying, but for all of digital
marketing and increasingly for traditional
channels, like TV, radio and Out-of-Home.
Through automation, efficiencies and
unprecedented visibility, marketers can do
breakthrough programmatic targeting,
content optimization and personalization that
transforms roles, data collection, tech stacks
and performance results for any sized
business.
Programmatic
is a revolution The optimal use of programmatic is to
combine data, technology and creativity to
help brands and companies thrive in the
future era of marketing.
What Advertisers
Pay For
• Simultaneous, not
fragmentsReach
• Waste reduction
• In-market prospects
• Viewability
Precision
• 3rd party verification
• Transparency
Brand
Safety
• Media ROI
• Business Results
Outcomes
• Specific audiences of
people
• Passions
Interest
• People who’s opinions
are valued by othersInfluence
What advertisers pay for
!9
• Simultaneous, not
fragments
Reach
• Waste reduction
• In-market
prospects
• Viewability
Precision
• 3rd party
verification
• Transparency
Brand
Safety
• Media ROI
• Business Results
Outcomes
• Specific audiences
of people
• Passions
Interest
• People who’s
opinions are valued
by others
Influence
What advertisers pay for
!10
INVESTMENTS
PERFORMANCE
Activating
Programmatic For
Marketing Performance
“Half the money I spend on advertising is wasted;
the trouble is I don't know which half.”
19th century Philadelphia retailer John Wanamaker*
* He probably never said this
The world of marketing has changed

!13
awareness interest consideration purchase opinions advocacy community
PERSUASION INFLUENCE
MARKETER GENERATED USER GENERATED
Consumer control of media is transforming marketing…

Changes create opportunities for marketing performance

!14
New opportunities to connect to consumers

DIGITIZATION OF
MEDIA
CHANGES IN
CONSUMER BEHAVIOR
PROLIFERATION OF
TOUCHPOINTS GAME-CHANGING
CONSUMER INSIGHTS
UNIQUE CREATIVE OPPORTUNITIES
VALUABLE
CONTENT
EXPLOSION
OF DATA
The new opportunities in media and marketing are
performance-driven
!15
Traditional Marketing Digital Marketing
Cost-per-audience Cost-per-result
Mass Targeted
Optimized reach Optimized outcomes
Advertising only Paid, earned, owned
Ratings Data Consumer and results data
Principles
From To
From traditional to addressable marketing
!16
Traditional Media
Users see same ad regardless 

of their interests.
Programmatic Media
Users see different ads based on data
regarding their interests.
Unprecedented capabilities for finding and reaching
audiences
!17
Programmatic enables
addressable marketing
Best time in
history to be
investing in
marketing
Automation
Complexity has completely
outstripped human capacity
Targeting Data-driven control over wastage
Customer Lifetime Value
(CLV)
Higher-order goals tied to revenue
and success
Variable Marketing
80/20 customers accounting for
profitability.
The road to
programmatic and
marketing performance
Digital media evolution
Portals & Search Ad Networks Programmatic
1990s 2000s 2000s
Programmatic automates the entire marketing cycle
Attention
Finding receptive audiences that will pay attention and
respond to your ads.
Efficiency
Reforming inefficient processes to save you time.
Cost Savings
Reducing media waste to save you money.
Performance
Delivering data-driven reach, efficiencies, multiplier effects
and optimization that outperforms other marketing
And programmatic transforms media buying
Managing Segments:
Understand all audience data and use it to maintain segmented audience lists of
addressable prospects.
Identifying Inventory:
Locate the inventory that's the most likely to get prospects to take action among all
the billions of available impressions.
Brokering Transactions:
Determine the price of the inventory to be acquired and, if the price is right,
purchase the inventory.
Ad Serving:
Show ads in the right format and size across all the inventory that's been acquired.
Measurement:
Measure results after audiences are exposed to digital ads. Compare what
happened to the goals that were set.
Optimization:
Determine what, if anything, needs to change in order to
get better results in the future. Make the necessary changes and repeat.
1
2
3
4
5
6
Summary benefits of programmatic
Outstanding performance
Delivers new customers, not the ones you already have
Integrated proprietary data & delivery
Automation has revolutionized marketing
DATA INTELLIGENCE TARGETING OMNICHANNEL OPTIMIZATION
3 Pillars of automated marketing
Data Sources
3rd Party Data
CRM Database
Website Activity
Social Activity
Promotional History
Offline Channels
Custom Models & Segments
Transactional Data
Agency/Partner Data
Demo & Psychographics
DMP
Build Target Audiences
Refine & Optimize
Analyze Results
DSP
Display
Video
Social
Mobile
TV
DMP
DSP
Price Discovery &
Negotiation
+
Workflow &
Delivery
The programmatic ecosystem
Programmatic technical flow
BIG DATA LAYER:
Real-Time Data
Acquisition Platform
(DAP)
REAL-TIME
AUDIENCE
LAYER: Persona-
Centric Data
Management
Platform (DMP)
Real-Time Audience Activation
ShareGraph
Intelligence Engine
Audience Insights &
Analytics
DMP
Anonymous
Digital Persona
Data Store
Real-Time Web
Audience Stack
Po.st Sharing Tool
Real-Time
Social Stack
Po.st URL Shortener
Real-Time Mobile
Audience Stack
Mobile Software
CRM Data
Importer
3rd Party Data Importer
DELIVERY LAYER:
Omni-Channel
Demand-Side
Platform (DSP) Display
DSP
Mobile
DSP
Video
DSP
Social
DSP
In-App
Push
Marketing
Automation
APIs
Performance
Feedback
Know your data
Mindset targeting
Realtime emoji use on Twitter
• Mastering personalization
• Connecting with people based on
their expressed sentiment
• Delivering something relevant in an
emotional moment.
• Harnessing individual cues creates
meaningful interactions.
Automated buying through software
!30
RTB
buying inventory from exchanges
through online auctions
Private
Exchange
publisher restricts auction to select
buyers/advertisers
Direct
buying guaranteed and also
proprietary premium ad impressions
from specific publisher sites
Dynamic optimization
Test multiple
combinations of
components
Identify the best
performers related to
campaign’s KPI
Optimize
the campaign
Pricing
Body Level One
• Body Level Two
– Body Level Three
• Body Level Four
– Body Level Five
Body Level One
• Body Level Two
– Body Level Three
• Body Level Four
– Body Level Five
$3-15
Programmatic
Low visibility and high reach
Standard banners
$16-25
Run of Site
Banners or Pre/Mid Roll
Videos
Social Ads as well as videos
$26-50
Site Direct, Super Premium
Content.
High Impact/Rich media
High end is extremely
premium: CBS pre-roll video
during World Series.
Pricing comparisons
$59
$50+
$19
$10
$1.72
$5
Google AdWords Search
Campaign Average Cost
Per Action (CPA)
Google AdWords Search
Campaign, Highly
competitive industries
Average cost per action on Facebook Ads
Typical CPM Facebook
Average cost per click Facebook
Typical CPM Instagram
$0.58 Average cost per click Google Display Network
Programmatic spending by channel
!34
84%
Display 60%
Mobile 58%
Video 32%
Social 26%
Search 8%
TV
Programmatic-influenced marketing funnel
STAGE 1
Display, programmatic, social
STAGE 2
Marketing Automation
STAGE 3
Database Segmentation
Re-marketing
Lookalike targeting
Customers
Known visitors
Unknown visitors
CONVERSION
Questions?
Thank you.
1 von 37

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What's Next: Programmatic Marketing

  • 2. Welcome DAYOAN DAUMONT PARTNER
 OGILVY CONSULTING ERIC BADER PARTNER DIGITAL STRATEGY OGILVY CONSULTING LAURIE CLOSE CONSULTANT
 OGILVY CONSULTING
  • 3. Tell us where you are dialing in from! What’s the weather like in your city?
  • 4. Do you want this deck? It will be available for download shortly after the webinar on: slideshare.net/socialogilvy And the recording up on facebook.com/OgilvyConsulting
  • 5. Agenda The “why, what and how” of the ways in which programmatic marketing can be essential to delivering outstanding marketing performance.   Some basics of media planning & buying • What advertisers pay for • Overview of Media Owners & Platforms • Evolution from traditional/analog to digital/automated Introduction to programmatic • Roots in technology allocations • Benefits • Data & Targeting • Pricing
  • 6. Programmatic is a revolution …not just in media buying, but for all of digital marketing and increasingly for traditional channels, like TV, radio and Out-of-Home. Through automation, efficiencies and unprecedented visibility, marketers can do breakthrough programmatic targeting, content optimization and personalization that transforms roles, data collection, tech stacks and performance results for any sized business.
  • 7. Programmatic is a revolution The optimal use of programmatic is to combine data, technology and creativity to help brands and companies thrive in the future era of marketing.
  • 9. • Simultaneous, not fragmentsReach • Waste reduction • In-market prospects • Viewability Precision • 3rd party verification • Transparency Brand Safety • Media ROI • Business Results Outcomes • Specific audiences of people • Passions Interest • People who’s opinions are valued by othersInfluence What advertisers pay for !9
  • 10. • Simultaneous, not fragments Reach • Waste reduction • In-market prospects • Viewability Precision • 3rd party verification • Transparency Brand Safety • Media ROI • Business Results Outcomes • Specific audiences of people • Passions Interest • People who’s opinions are valued by others Influence What advertisers pay for !10 INVESTMENTS PERFORMANCE
  • 12. “Half the money I spend on advertising is wasted; the trouble is I don't know which half.” 19th century Philadelphia retailer John Wanamaker* * He probably never said this
  • 13. The world of marketing has changed
 !13 awareness interest consideration purchase opinions advocacy community PERSUASION INFLUENCE MARKETER GENERATED USER GENERATED Consumer control of media is transforming marketing…

  • 14. Changes create opportunities for marketing performance
 !14 New opportunities to connect to consumers
 DIGITIZATION OF MEDIA CHANGES IN CONSUMER BEHAVIOR PROLIFERATION OF TOUCHPOINTS GAME-CHANGING CONSUMER INSIGHTS UNIQUE CREATIVE OPPORTUNITIES VALUABLE CONTENT EXPLOSION OF DATA
  • 15. The new opportunities in media and marketing are performance-driven !15 Traditional Marketing Digital Marketing Cost-per-audience Cost-per-result Mass Targeted Optimized reach Optimized outcomes Advertising only Paid, earned, owned Ratings Data Consumer and results data Principles From To
  • 16. From traditional to addressable marketing !16 Traditional Media Users see same ad regardless 
 of their interests. Programmatic Media Users see different ads based on data regarding their interests.
  • 17. Unprecedented capabilities for finding and reaching audiences !17 Programmatic enables addressable marketing
  • 18. Best time in history to be investing in marketing Automation Complexity has completely outstripped human capacity Targeting Data-driven control over wastage Customer Lifetime Value (CLV) Higher-order goals tied to revenue and success Variable Marketing 80/20 customers accounting for profitability.
  • 19. The road to programmatic and marketing performance
  • 20. Digital media evolution Portals & Search Ad Networks Programmatic 1990s 2000s 2000s
  • 21. Programmatic automates the entire marketing cycle Attention Finding receptive audiences that will pay attention and respond to your ads. Efficiency Reforming inefficient processes to save you time. Cost Savings Reducing media waste to save you money. Performance Delivering data-driven reach, efficiencies, multiplier effects and optimization that outperforms other marketing
  • 22. And programmatic transforms media buying Managing Segments: Understand all audience data and use it to maintain segmented audience lists of addressable prospects. Identifying Inventory: Locate the inventory that's the most likely to get prospects to take action among all the billions of available impressions. Brokering Transactions: Determine the price of the inventory to be acquired and, if the price is right, purchase the inventory. Ad Serving: Show ads in the right format and size across all the inventory that's been acquired. Measurement: Measure results after audiences are exposed to digital ads. Compare what happened to the goals that were set. Optimization: Determine what, if anything, needs to change in order to get better results in the future. Make the necessary changes and repeat. 1 2 3 4 5 6
  • 23. Summary benefits of programmatic Outstanding performance Delivers new customers, not the ones you already have Integrated proprietary data & delivery
  • 24. Automation has revolutionized marketing DATA INTELLIGENCE TARGETING OMNICHANNEL OPTIMIZATION
  • 25. 3 Pillars of automated marketing Data Sources 3rd Party Data CRM Database Website Activity Social Activity Promotional History Offline Channels Custom Models & Segments Transactional Data Agency/Partner Data Demo & Psychographics DMP Build Target Audiences Refine & Optimize Analyze Results DSP Display Video Social Mobile TV DMP DSP Price Discovery & Negotiation + Workflow & Delivery
  • 27. Programmatic technical flow BIG DATA LAYER: Real-Time Data Acquisition Platform (DAP) REAL-TIME AUDIENCE LAYER: Persona- Centric Data Management Platform (DMP) Real-Time Audience Activation ShareGraph Intelligence Engine Audience Insights & Analytics DMP Anonymous Digital Persona Data Store Real-Time Web Audience Stack Po.st Sharing Tool Real-Time Social Stack Po.st URL Shortener Real-Time Mobile Audience Stack Mobile Software CRM Data Importer 3rd Party Data Importer DELIVERY LAYER: Omni-Channel Demand-Side Platform (DSP) Display DSP Mobile DSP Video DSP Social DSP In-App Push Marketing Automation APIs Performance Feedback
  • 29. Mindset targeting Realtime emoji use on Twitter • Mastering personalization • Connecting with people based on their expressed sentiment • Delivering something relevant in an emotional moment. • Harnessing individual cues creates meaningful interactions.
  • 30. Automated buying through software !30 RTB buying inventory from exchanges through online auctions Private Exchange publisher restricts auction to select buyers/advertisers Direct buying guaranteed and also proprietary premium ad impressions from specific publisher sites
  • 31. Dynamic optimization Test multiple combinations of components Identify the best performers related to campaign’s KPI Optimize the campaign
  • 32. Pricing Body Level One • Body Level Two – Body Level Three • Body Level Four – Body Level Five Body Level One • Body Level Two – Body Level Three • Body Level Four – Body Level Five $3-15 Programmatic Low visibility and high reach Standard banners $16-25 Run of Site Banners or Pre/Mid Roll Videos Social Ads as well as videos $26-50 Site Direct, Super Premium Content. High Impact/Rich media High end is extremely premium: CBS pre-roll video during World Series.
  • 33. Pricing comparisons $59 $50+ $19 $10 $1.72 $5 Google AdWords Search Campaign Average Cost Per Action (CPA) Google AdWords Search Campaign, Highly competitive industries Average cost per action on Facebook Ads Typical CPM Facebook Average cost per click Facebook Typical CPM Instagram $0.58 Average cost per click Google Display Network
  • 34. Programmatic spending by channel !34 84% Display 60% Mobile 58% Video 32% Social 26% Search 8% TV
  • 35. Programmatic-influenced marketing funnel STAGE 1 Display, programmatic, social STAGE 2 Marketing Automation STAGE 3 Database Segmentation Re-marketing Lookalike targeting Customers Known visitors Unknown visitors CONVERSION