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DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
DataXu: Programmatic Premium Webinar - June 7, 2012
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DataXu: Programmatic Premium Webinar - June 7, 2012

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Programmatic buying has proven valuable in enabling advertisers to capitalize on impression-level decisioning for exchange-traded media. But most advertisers spend up to 85% of their digital budgets …

Programmatic buying has proven valuable in enabling advertisers to capitalize on impression-level decisioning for exchange-traded media. But most advertisers spend up to 85% of their digital budgets on direct-sourced buys on premium sites due to the close alignment of audience profiles with their target and guaranteed high-quality context for their ad placements.

Top advertisers are beginning to turn to Programmatic Premium, an innovative new approach that combines the best of both worlds – real-time impression-level decisioning with premium guaranteed buys – for substantial gains in effectiveness and return on direct media investments.

Adrian Tompsett, VP of Business Development at DataXu, the first fully-integrated digital marketing management platform (DMM), and John Gray, SVP of Interactive Media at Ford/Team Detroit, and guest speaker, Forrester Senior Analyst Michael Greene, discuss how Programmatic Premium will impact the market and:

* Industry drivers behind the new trend
* Deep dive into how a major advertiser used Programmatic Premium
* Real-world examples of how marketers can leverage this new approach to improve campaign effectiveness, consumer engagement and brand lift by 20% (or more)

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  • Taking a quick trip back to when I joined DataXu in 2009 to lead our business development effortsThe term DSP didn’t even exist or if it did, no one knew what you were talking aboutThe majority of media buys transacted with ad networks and publishers on an IO by IO basisIn either case, there was virtually no transparency to the buyers, and mixed bags of impressions were bought in buckets of thousandsThis would be similar to buying a paper bag of tomatoes at the market; some tomatoes best for salads some for spaghetti sauce and some were frankly rotten and better off thrown away.We have come an awful long way since then…Jump to next slide
  • RTB and impression level decisioning changed the whole landscape; VC investors poured money into the space and multiple technology vendors built companies focused on the evaluation and valuation of each impression with respect to advertiser goals.According to the IDC, in 2010 this market was $352m, in 2011 just over $1b, this year reaching almost $2b and estimated to become a $5b market by 2015.And why the rapid growth? Advertisers reaped the benefits of transparency and analytics that goes part in parcel when you are buying advertising at the impression level – cherry picking the best impressions that suit each marketers specific goalsOptimization (previously done manually) could now be done in real time; and marketers could gain real time insights to what is going on; rich third party overlays, onboarding offline CRM data delivered better results and incredible insights into consumers. This is something that we call demand sensing at DataXu – dynamically allocating budgets on the fly where we see ‘pockets of demand’. Same time – impression level decisioning was limited largely to exchange traded media. While on the one hand buyers love the massive reach and huge efficiencies possible – the inventory available is remnant. Most publishers continue to segment their inventory fairly crudle – I have tier 1 which is sold directly by my sales team and the rest is Tier 2 which I monetize either via ad networks or into the exchangesAdditionally, while these numbers are huge, they are dwarfed by the overall US online ad spend estimated at over $36 billion this year growing to almost $50B in 2015. Working closely with clients like John Gray at TD we began to ponder the question – why can’t we apply the same technology, impression level decisioning and analytics to guaranteed media buys? Wouldn’t that opportunity dwarf the size of optimizing exchange traded media? Flip slide
  • And thus the introduction of Programmatic Premium. Programmatic Premium allows for a single system of optimization, measurement and analysis, creating a rich framework for advertisers tounderstand their consumer, and for publishers to better monetize their inventory.Let’s run the numbers on 2012A 20% lift on exchange traded and ad network buys gives you $400mThat same lift on guaranteed media drives over $6b worth of valueI mean $400m isn’t cool. You know what’s cool – how about $6B dollars?The only downside I see for Programmatic Premium from my perspective it the lack of an easy acronym that doesn’t make people snicker.FOR ADVERTISERSDeliver improved efficiency and ROI across the entire media plan; either from delivering more CPA conversion type metrics or through the achievement of better audience density metrics as measured by eCPM against target audienceUnderstand globally the behavior of your consumers across all media and channels.Consolidate intelligence, attribution & reporting between exchange traded and direct buysFOR PUBLISHERSMaintain premium CPM’sFull control and transparencyNo impact to existing relationships of workflowDeliver more benefit and insights to advertisers
  • Effective or eCPM is: CPM divided by percent of audience densityPremium Food PublisherIndividual food or beverage product brand under a F&B advertiser
  • Leverage data-backed, real-time decisioning to serve relevant messages at the consumer-levelMeet your goals with multiple optimization model to drive actions, clicks or distributionIncrease audience density and improve consumer experience Reduce waste and improve ROI on direct media investments
  • For financial services folks – in our experience most tend to run their performance buys via ad networks and reserve the branding budgets to run on endemic sites and other guaranteed media. With programmatic premium, this distinction no longer matters. Performance and branding buys taking advantage of the same expensive media enable marketers to take advantage of every opportunity. If a consumer has just half filled out a credit card offer and abandoned – hit them with an offer to drive them to close. If a consumer is already a client – deliver a cross sell upsell offer to increase customer lifetime value.
  • And in closing – programmatic premium is an incredible opportunity to drive efficiencies across the entire media plan – not only delivering on operational efficiencies through automated targeting and optimization, but also improving performance against whatever metrics are most important to a brand.We are proud to be the only company in our space to not only be talking about programmatic premium, but delivering it for real customers. John Gray will bring us home with a real case study and experience working with DataXu on over 10 campaigns to date.Handing things over to Michael for the Forrester view on programmatic premium.
  • Suggest Bringing Programmatic to Premium
  • Programmatic Premium enabled Ford to leverage the real-time decisioning and analytics power of DataXu’s DX3 digital marketing management platform. Team Detroit worked with strategic partner DataXu to answer the following question: “Can data-driven, impression-level decisioning be used across a premium fixed buy to run multiple campaigns, matching the right offer to the right consumer to generate a higher level of response and engagement?” Apply impression-level decisioning to 15 campaigns, run across endemic automotive sites – hotbeds of “in-market” shoppers
  • The answer is yes, with Programmatic Premium. Programmatic Premium enabled Ford to leverage the real-time decisioning and analytics power of DataXu’s DX3 digital marketing management platform. Fifteen campaigns were run across endemic automotive sites – hotbeds of “in-market” shoppers. As a baseline control, a portion of the media was run using Ford’s traditional approach – a series of messaging concepts, in random rotation, based on assumptions and historical performance. The rest of the media was optimized using the Programmatic Premium approach. The DX3 system evaluated the audience data and attributes for each impression to distinguish, for instance, someone researching hybrid vehicles, from an F-150 intender, from a Mustang buyer, and delivered not only the creative with the most relevant make and model but also messaging that correlated to the consumer’s position in the purchase funnel.  ResultsThe Programmatic Premium approach implemented for Ford produced a 20% increase in effectiveness and consumer engagement. Programmatic Premium proves that campaigns using guaranteed media can be maximized using data-driven, impression level decisioning. Ultimately, the strategic approach will deliver increased effectiveness and greater returns for Ford’s largest media spend, and transform the way big brand advertisers will run their campaigns.
  • John Gray -- Key Take-AwaysLeverage data-backed, real-time decisioning to serve relevant messages at the consumer-levelAdvertisers, meet your goals with multiple optimization models to drive actions, clicks or distributionIncrease audience density and improve consumer experience Reduce waste and improve ROI on direct media investments
  • Transcript

    • 1. TREND WATCH:Programmatic Premium Drives Higher Returns on Premium Media Investments Adrian Tompsett Michael Greene John GrayVP, Business Development Senior Analyst SVP, Interactive Media DataXu Forrester Research Inc. Team Detroit #ProgrammaticPremium
    • 2. AgendaAdrian Tompsett• So, What is Programmatic Premium?• A Look at the VerticalsMichael Greene• Bringing Premium to Programmatic• Win-Win for Advertisers and PublishersJohn Gray• Deep Dive: Ford Case StudyKey Take-AwaysQ&A #ProgrammaticPremium
    • 3. So, What is Programmatic Premium? Adrian Tompsett Vice President of Business Development #ProgrammaticPremium
    • 4. Media Was Blindly Bought and Sold #ProgrammaticPremium
    • 5. RTB and Impression-level DecisioningChanged the Market
    • 6. Programmatic Premium: The Next Mega Trend Imagine improving the effectiveness of the global digital media budget by 20% or more… …by leveraging impression-level decisioning and analytics technologies which grew up on exchange-traded media… …and at the same time maintaining publisher premium CPMs and advertiser relationships... #ProgrammaticPremium
    • 7. How Does Programmatic Premium Work? Traditional Programmatic Premium Consumer A Ad 1 Consumer A Ad Consumer B Website Ad 2 Consumer B Ad 3 Consumer C Consumer C
    • 8. A Look at the Verticals #ProgrammaticPremium
    • 9. CPG9 © 2012 Forrester Research, Inc. Reproduction Prohibited © 2012 DataXu, Inc. Privileged & Confidential
    • 10. How CPG Branding is Bought Today 70% 30% Target Audience $10.00 CPM + 70% Audience Density = $14.29 eCPM #ProgrammaticPremium
    • 11. Optionality Drives Audience Density andConsumer Engagement 90% 10% Target Audience $10.00 CPM + 90% Audience Density = $11.11 eCPM #ProgrammaticPremium
    • 12. FINANCIAL SERVICES12 © 2012 Forrester Research, Inc. Reproduction Prohibited
    • 13. Upsell High-Value Customers WhileConverting Your Best Prospects Current Retail Purchased Impression Customer Ad Current SMB Customer Ad Retail Upsell Ad SMB Upsell Active Small Ad Business Owner Retail Prospect Ad Verify audience segment SMB Prospect Ad #ProgrammaticPremium
    • 14. 1st & 3rd Party Data Eliminates Waste on Guaranteed Buys WastedOpportunity Audience Reached #ProgrammaticPremium
    • 15. Bringing Premium to ProgrammaticMichael Greene, Senior Analyst15 © 2009 Forrester Research, Inc. Reproduction Prohibited 2012 #ProgrammaticPremium
    • 16. Programmatic buying has come a long way But the transformation of media buying has only just begun.16 © 2012 Forrester Research, Inc. Reproduction Prohibited #ProgrammaticPremium
    • 17. Programmatic Spend Continues to Grow…and Fast! Exchange-traded share of US Exchange-traded share of US display spending 2011 display spending 2012 13% 18%17 © 2012 Forrester Research, Inc. Reproduction Prohibited Source: Forrester Research Online Display Advertising Forecast, 2011 to 2016 (US)
    • 18. The Programmatic Buying Market Still Has Loads of Untapped Potential  Growth has largely come on the backs of direct response. Brand advertising is the future growth engine for digital advertising, but programmatic buying to date has still been primarily DR-focused.  Publisher participation has been mixed. Major publishers are participating in programmatic buys, but often “blind” and only as a backfill mechanism.  Premium: waiting for the first move. Brand advertisers and premium publishers want to jump in, but are waiting for the other to make the first move.18 © 2012 Forrester Research, Inc. Reproduction Prohibited #ProgrammaticPremium
    • 19. Getting past the chicken or the egg conundrum: How do we bring premium to programmatic?19 © 2012 Forrester Research, Inc. Reproduction Prohibited
    • 20. Programmatic Buying has a Massive Opportunity to Provide Value for Brands20 © 2012 Forrester Research, Inc. Reproduction Prohibited #ProgrammaticPremium
    • 21. But, Premium Publishers Remain Fairly Skeptical of Auction-Based Buying Models  Premium publishers place high-value in buyer relationships. Sale-force-oriented organizations look to favor manual price negotiation.  Publisher yield-curves look like two distinct markets. Pricing levels between direct-sold and exchange-based buys are shrinking, but a significant gap still remains for many publishers.  Publishers slow to adopt a more holistic yield management strategy. Programmatic demand still siloed to poor quality inventory at end of waterfall, not integrated into broader inventory pool.21 © 2012 Forrester Research, Inc. Reproduction Prohibited #ProgrammaticPremium
    • 22. Premium Publishers Can Benefit from the Move to Programmatic Selling Operational Better Advertiser Re-focused Sales More Transparency Efficiency Performance Efforts• Diminish costs of • Empower buyers to • Gain insight into what • Gear sales around manual booking, leverage data and buyers want in order delivering bigger, trafficking, and insight to help ads on to better price and more effective optimization your site perform package inventory packages for better and audiences advertisers, including • Grab share of wallet components delivered by enabling them to programmatically buy how they want to buy 22 © 2012 Forrester Research, Inc. Reproduction Prohibited #ProgrammaticPremium
    • 23. Getting to Premium: Programmatic is More than just Exchange-Based Bidding Two primary components of programmatic/exchange buying Price Discovery and Workflow and Delivery Negotiation • Capability most closely • Massive opportunity for associated with programmatic premium buyers and sellers – buying automate manual tasks • Auction-based, impression- • Remove repetitive processing level pricing model of multiple IOs for buyers and • Bids/pricing dynamically sellers optimized based upon • Allow for impression-level expected value of impression audience-targeting and creative optimization • Universal frequency capping and reporting • Pricing can be auction-based or pre-negotiated Efficient Pricing Efficient Transactions23 © 2012 Forrester Research, Inc. Reproduction Prohibited #ProgrammaticPremium
    • 24. For Brands, the Programmatic Opportunity is Clear  Bring intelligence to your audience targeting. Get beyond broad-based demos and efficiently target more granular, valuable audiences.  Get your creative to work harder. Efficiently align audience, context, and creative to deliver maximum impact and ROAS.  Make measurement actionable. Move beyond a purely post- campaign methodology that can only assess success or failure – not help optimize. Move towards a continuous measurement model that helps inform real-time buying decisions.24 © 2012 Forrester Research, Inc. Reproduction Prohibited #ProgrammaticPremium
    • 25. Brands Need More than an Exchange Bidder, They Need a Consolidated Media Buying Platform  Single workflow across screens and buy-types. Manage pre- negotiated and bid-based buys across display, video, and mobile from a single interface.  Audience-based optimization. Optimize campaigns with frequency controls against granular audiences across publishers and screens.  Unified insights. A single repository for campaign and audience insight that can easily translate into action.25 © 2012 Forrester Research, Inc. Reproduction Prohibited #ProgrammaticPremium
    • 26. It’s not just conceptual: DataXu is making Programmatic Premium real today, benefitting both buyers and sellers26 © 2012 Forrester Research, Inc. Reproduction Prohibited #ProgrammaticPremium
    • 27. Deep Dive: Ford Case Study John GraySVP, Director of Interactive Media, Team Detroit #ProgrammaticPremium
    • 28. Would you rather use premium and endemic digital media to…
    • 29. …run a full-line creative? …select the nameplate, at the impression-level, based OR on the individual consumer? #ProgrammaticPremium
    • 30. Case Study: The ChallengeFord spends the majority of its digital budget on guaranteed buys onpremium and endemic sites.Despite the importance of audience alignment, guaranteed mediawasn’t seeing the same efficiency gains as the exchange-traded mediabuys through digital marketing management platforms. So, Team Detroit partnered with DataXu to solve that challenge…30 © 2012 Forrester Research, Inc. Reproduction Prohibited #ProgrammaticPremium
    • 31. Case Study: The HypothesisCan data-driven, impression-level decisioning be used across a premiumfixed buy to run multiple campaigns, matching the right offer to the rightconsumer to drive higher response rates? Retargeting Ad Purchased Impression Audience Targeted Ad Creative Optimization Audience Identification #ProgrammaticPremium
    • 32. Case Study: The ResultsFord realized a 20%increase ineffectiveness andconsumer engagement 20% Lift in Conversion RateProgrammatic Conversion RatePremium proves thatcampaigns usingguaranteed media canbe maximized usingdata-driven,impression leveldecisioning Baseline Programmatic Premium #ProgrammaticPremium
    • 33. What’s In It For Advertisers • Increased Campaign Effectiveness • Better Experience with Brand • Improved Consumer EngagementWhat’s In It For Publishers • Higher Value CPMs • Stronger Relationships • Data-driven Technology to Help Sell Tier 1 Inventory More Efficiently 33 © 2012 Forrester Research, Inc. Reproduction Prohibited
    • 34. 34 © 2012 Forrester Research, Inc. Reproduction Prohibited
    • 35. Thank You! Adrian Tompsett Michael Greene John GrayVP, Business Development Senior Analyst SVP, Interactive Media DataXu Forrester Research Inc. Team Detroit #ProgrammaticPremium

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