Demystifying RTB

Machine Learning vs.
Human Optimization
Trading Desks

DAA

Dynamic Targeting

Live vs. Static Database
...
Demystifying RTB

Machine Learning
Human Optimization
vs.

Live Static Database
vs.

1st Party Data

vs.

3rd Party Data

...
MACHINE VS HUMAN
OPTIMIZATION
Machine vs. Human Optimization – Case Study
Beauty and the Beast Theatre Production submitted 492 keywords for search reta...
Machine vs. Human Optimization – Case Study
Removing generic keywords and inserting new more specific words - reducing the...
Human Optimization
 Analyze Brand Safety
 Web Site Analysis
 Content Quality,
demographic data,
language
 Base success...
Live vs. Static Data
Live vs. Static Databases
89 campaigns spanning a one year period (April 2012 – March 2013) for 3 major automotive brands
...
Live vs. Static Databases
89 campaigns spanning a one year period (April 2012 – March 2013) for 3 major automotive brands
...
Live Data – Retargeting Study
Vertical: Automotive
Campaign Type: Retargeting
Campaign Goal: CPA
•

Behavioural targeted c...
Live Data vs. Static Data
To Buy or To Build? That’s the big question with data!
 Live Data is by far the richest source ...
1 Party vs. 3 Party Data
st

rd
1st Party vs. 3rd Party Data
Every company defines data differently

1st party data

$$

…they even know who has
the remot...
1st Party vs. 3rd Party Data
Other companies request personally identifiable information
when signing up for a free email ...
CLICK FRAUD
Death of the Click
Click Fraud (Death of the Click)
In a 2012 study entitled “Evaluating and Optimizing Online
Advertising: Forget the Click,...
Click Fraud (Death of the Click)
Click fraud comes in many forms; but these issues can affect all
online advertising campa...
Click Fraud – Prevention
Optimize on CPA vs CPC or CTR
 CPC algorithms can actually target ads towards click fraud activi...
Click Fraud (Death of the Click) – Case Study
Vertical: Automotive
Campaign Type: Performance
Campaign Goal: CPA
Campaign ...
Consoles & Proprietary Bidders – Death of the Click
Client:

Click Through Rate

Agency: Gaggi Media
Vertical: Entertainme...
BRAND SAFETY
Brand Safety
With access to so much inventory, how do you control the setting
in which your message is displayed?

1

Use ...
Brand Safety
2

Purchase additional verification services
Brand Safety
3

Use ad-blocking
Brand Safety
4

Use automated 3rd Party filters for content

CONSOLE
FILTER
Brand Safety
5

Employ a domain blacklist

DAILY

SSP 1

SSP 2

SSP 3

SSP 4
Brand Safety
6

Serve only to a dedicated whitelist
Brand Safety
7

Beware of personal biases when creating blocking or
whitelisting domains
Summary
Bottom line: It’s tricky! You can’t afford to wait to find that an
algorithm has failed!
Push for transparency
Emp...
eyeDemand "Demystifying RTB: Keys to a Successful Campaign"
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eyeDemand "Demystifying RTB: Keys to a Successful Campaign"

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Presented by Renee Hill, President and Co-CEO at IAB Canada's X-Series: RTB in May 2013.

Published in: Marketing, Technology, Design
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eyeDemand "Demystifying RTB: Keys to a Successful Campaign"

  1. 1. Demystifying RTB Machine Learning vs. Human Optimization Trading Desks DAA Dynamic Targeting Live vs. Static Database Dynamic Algorithms Search Retargeting 1st Party Data vs. 3rd Party Data Private Bidders Click Fraud NAI Consoles DAAC Keyword Targeting Click Bots Brand Safety Organic Data Remarketing
  2. 2. Demystifying RTB Machine Learning Human Optimization vs. Live Static Database vs. 1st Party Data vs. 3rd Party Data Click Fraud (Death of the Click) Brand Safety
  3. 3. MACHINE VS HUMAN OPTIMIZATION
  4. 4. Machine vs. Human Optimization – Case Study Beauty and the Beast Theatre Production submitted 492 keywords for search retargeting, which resulted in a CTR of 0.030% (way below average of 0.4%) Human Analysis indicated that 67% of all points were generated by generic terms shows, march break & gifts which were diluting the effectiveness of the segment. *eyeDemand Word Cloud
  5. 5. Machine vs. Human Optimization – Case Study Removing generic keywords and inserting new more specific words - reducing the total search terms to 207 - resulted in a CTR of 0.57% - an increase of 1800%. *eyeDemand Word Cloud
  6. 6. Human Optimization  Analyze Brand Safety  Web Site Analysis  Content Quality, demographic data, language  Base success on conversions, not clicks  Creative evaluation  Time-relevant search terms (blocking and targeting)  Evaluate performance of machine learning  Monitor click fraud  Automated filters can be helpful but constant human monitoring required to catch new bots vs. Machine Learning Multi-Variable Analysis  Ad type/Time of day  recency and frequency  creative format performance Automated Optimization to various KPI’s Algorithms Monitor click fraud Automated Filters based on human learning Our Recommendation…choose the cyborg approach, best of both worlds!
  7. 7. Live vs. Static Data
  8. 8. Live vs. Static Databases 89 campaigns spanning a one year period (April 2012 – March 2013) for 3 major automotive brands Conversion Rate Live “Organic” Data Static Data Time
  9. 9. Live vs. Static Databases 89 campaigns spanning a one year period (April 2012 – March 2013) for 3 major automotive brands Cost Per Acquisition $18.00 $Cha-Ching! $ $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $- Live "Organic" Data Static Data
  10. 10. Live Data – Retargeting Study Vertical: Automotive Campaign Type: Retargeting Campaign Goal: CPA • Behavioural targeted campaign with increasing weight shifting towards “live data” retargeting Retargeted Users and Cost per Acquisition Acquisition (conversion) is measured by 3 KPI’s: requesting a meeting asking for a quote virtually creating a custom product Retargeted Site Stickiness Percentage of visits to relevant pages (conversion pages as defined by customer) as a percentage of homepage visits
  11. 11. Live Data vs. Static Data To Buy or To Build? That’s the big question with data!  Live Data is by far the richest source of information for your brand and client.  On average, Live Data is 47% more cost effective* when judging performance within campaigns.  The downside is that reach can be limited when only looking at Live Data.  Our recommendation is to use a combination of Live Data, Contextual Data and other relevant 1st party data, thereby reaching both potential new and current customers.
  12. 12. 1 Party vs. 3 Party Data st rd
  13. 13. 1st Party vs. 3rd Party Data Every company defines data differently 1st party data $$ …they even know who has the remote in their hand.
  14. 14. 1st Party vs. 3rd Party Data Other companies request personally identifiable information when signing up for a free email account or free services …this is 1st party data $$ Make sure on our push for privacy – we understand the landscape.
  15. 15. CLICK FRAUD Death of the Click
  16. 16. Click Fraud (Death of the Click) In a 2012 study entitled “Evaluating and Optimizing Online Advertising: Forget the Click, But There are Good Proxies” researchers found that: "Generally, clicking does not correlate well with purchasing.…few clicks lead to actual product purchases and that most clicks are generated by a very small subset of browsers. …clicks are unsuitable as a criterion for designing and optimizing targeting strategies…Targeting models built on clicks do a poor job of identifying browsers who later will purchase” *Evaluating and Optimizing Online Advertising: Forget the Click, But There are Good Proxies Brian Dalessandro, Rod Hook, Claudia Perlich, m6d research and Foster Provost, NYU/Stern School of Business and m6d research
  17. 17. Click Fraud (Death of the Click) Click fraud comes in many forms; but these issues can affect all online advertising campaigns! Bots generated by a fraudulent website Layered ad units (companies that put 40 ad units in one ad spot and then place them in reputable web sites) Incentivized click schemes (some benefit to a user for clicking on an ad) Malware on a real user’s computer Some pop-up blocking software (attempts to click on all ads on a page while it loads to test for pop-ups)
  18. 18. Click Fraud – Prevention Optimize on CPA vs CPC or CTR  CPC algorithms can actually target ads towards click fraud activity Employ brand safe rules (next section) Include Targeting Majority of fraudulent clicks are found in campaigns without additional targeting criteria (mass reach /RON) Demand Transparency
  19. 19. Click Fraud (Death of the Click) – Case Study Vertical: Automotive Campaign Type: Performance Campaign Goal: CPA Campaign required large reach at low cost, while targeting smaller markets like the Prairies. When comparing vendors on hits to the landing page (ie – clicks), eyeDemand performance questionable. However when we analyze the results on the relevant conversion pages (dealer located or test drive booked following car build) eyeDemand becomes the vendor with the highest conversion rate! Click Through Rate Total Relevant Conversions Conversion Rate - Relevant Action
  20. 20. Consoles & Proprietary Bidders – Death of the Click Client: Click Through Rate Agency: Gaggi Media Vertical: Entertainment Campaign Type: Performance Campaign Goal: CPA Both systems employed segment targeting, site retargeting & RON. Cost Per Acquisition Console impressions resulted in 300% better performance when analyzing CTR and CPC metrics. But, the CPA from the Private Bidder was 150% lower! Cost Per Click
  21. 21. BRAND SAFETY
  22. 22. Brand Safety With access to so much inventory, how do you control the setting in which your message is displayed? 1 Use exchange console filters CONSOLE FILTER
  23. 23. Brand Safety 2 Purchase additional verification services
  24. 24. Brand Safety 3 Use ad-blocking
  25. 25. Brand Safety 4 Use automated 3rd Party filters for content CONSOLE FILTER
  26. 26. Brand Safety 5 Employ a domain blacklist DAILY SSP 1 SSP 2 SSP 3 SSP 4
  27. 27. Brand Safety 6 Serve only to a dedicated whitelist
  28. 28. Brand Safety 7 Beware of personal biases when creating blocking or whitelisting domains
  29. 29. Summary Bottom line: It’s tricky! You can’t afford to wait to find that an algorithm has failed! Push for transparency Employ multiple brand safety methods depending on campaign goals Work with an expert in the field that can adequately monitor exchanges & audit content to ensure optimal brand results Measuring success only by click must die!
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