Digital Transformation or Disruption? - DSPs, Digital Advertising, and the Changing Role of the Agency

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ABOUT THE WEBINAR:
Digital advertising is undergoing a transformative shift, and you can’t play the same game and still be successful in an increasingly connected world. Data is the new creative, and technology the only way to better understand and engage with the new digital consumer. But with a cluttered and fragmented landscape, brands face a multitude of options when exploring the world of real- time bidding, exchange traded media, Ad networks, and Demand Side Platforms. Join industry experts Mike Baker, CEO DataXu, Steve Weeks, Sr. Mngr. WW Advertising Adobe, Michael Jenkins, Sr. Communication Strategist Goodby, Silverstein & Partners and Ben Trenda, VP REVV Marketplace, Rubicon, as these best of breed partners share their views on the here and now of digital innovation. You’ll learn about:

• The evolution of Digital Advertising and Demand Side Platforms
• Premium inventory in a Real Time environment
• The changing role of the agency
• Campaigns case studies that successfully mesh brand and performance requirements
• Visions of the future landscape and the business models poised to emerge

SPEAKERS:
Mike Baker, CEO, DataXu
Mike Baker has been pioneering digital media platforms for 20 years and is a widely recognized thought leader in interactive advertising. Before co-founding DataXu, he was vice president at Nokia, where he created and ran Nokia Interactive. Baker came to Nokia through its acquisition of mobile advertising leader Enpocket in 2007, where he was the founding investor and CEO. He has also been executive vice president at Engage Technologies, an innovator in online advertising and behavioral targeting. An active angel investor in digital media, he is currently chairman of the board of Nexage, a mobile advertising solutions provider.

Steve Weeks, Sr. Manager of WW Advertising, Adobe Systems
Steve has more than 20 years experience in building successful communications strategies for companies like Acer, Hewlett-Packard, and PeopleSoft. He has also held media and account management positions at McCann Erickson, Hal Riney & Partners, and Young and Rubicam where he helped manage leading brands such as Wells Fargo, Chevron, and Clorox. Steve has been with Adobe Systems for seven years and is currently senior manager responsible for worldwide media strategy and planning across all of Adobe’s customer segments.

Michael Jenkins, Sr. Communication Strategist, Goodby Silverstein & Partners
Michael Jenkins has helped drive digital response and branding efforts for a variety of clients including Echostar (DISH Network), Virgin America and Nintendo of America. He currently heads up strategy and planning for Adobe's Creative Suite marketing programs.

Ben Trenda, VP REVV Marketplace, The Rubicon Project
Ben Trenda is Vice President of REVV Marketplace Development for the Rubicon Project, where he is responsible for leading the development of the real-time bidding and demand side of the business – specifically focused on creating the highest possible demand for premium publisher’s inventory. Before the Rubicon Project, Ben served as VP, Global Partnerships at AOL, working on Agency Partnerships, Global Programs, and Latin America. Ben got to AOL via Advertising.com where he ran a West Coast sales team for the world’s largest ad network. Prior to joining Advertising.com, Ben held several different roles in the Strategic Alliances group at Yahoo and, before that, at Overture and GoTo.com. Follow Ben on Twitter @btrenda.

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  • Digital Transformation or Disruption? - DSPs, Digital Advertising, and the Changing Role of the Agency

    1. 1. Digital Transformation or Disruption?<br />DSPs, Digital Advertising, and the Changing Role of the Agency<br />Hosted By:<br />
    2. 2. Agenda<br />Introductions<br />Industry Overview<br />DSP Learnings & Key Requirements<br />RTB & Premium Inventory<br />Branding vs Performance <br />Success Stories<br />Q&A with panelists<br />© 2010 DataXu, Inc. Privileged & Confidential<br />2<br />
    3. 3. Participants <br />© 2010 DataXu, Inc. Privileged & Confidential <br />Steve Weeks, Sr. Manager of WW Advertising<br />Mike Baker, CEO<br />Michael Jenkins, Sr. Communication Strategist<br />Ben Trenda, VP of REVV Marketplace Development<br />3<br />
    4. 4. Agenda<br />Introductions<br />Industry Overview<br />DSP Learnings & Key Requirements<br />© 2010 DataXu, Inc. Privileged & Confidential<br />Mike Baker, CEO<br />4<br />
    5. 5. The Evolution of Online Media Buying<br />Direct from Publishers 1996 <br />Ad Networks1998 <br />Ad Exchanges2005 <br />DSPs2009 <br />© 2010 DataXu, Inc. Privileged & Confidential <br />
    6. 6. Demand Side Platforms<br />What is a DSP?<br />DSPs are media buying tools that help buyers aggregate, bid on, and optimize digital inventory across ad exchanges and yield management platforms. <br />Advertiser Benefits:<br /><ul><li>Improves display ROI
    7. 7. Reduces display cost
    8. 8. Generates data-driven consumer insights</li></ul>© 2010 DataXu, Inc. Privileged & Confidential <br />
    9. 9. The Role of a DSP<br />Ads<br />Placements<br />Online display<br />exchanges<br />Publisher<br />Advertiser<br />Agency<br />Online video<br />exchanges<br />DSPs<br />Mobile<br />exchanges<br />Consumer data aggregators<br />Audience<br />© 2010 DataXu, Inc. Privileged & Confidential <br />
    10. 10. Your buyers are moving targets<br />© 2010 DataXu, Inc. Privileged & Confidential<br />YESTERDAY’S CONSUMERS…<br /><ul><li>Passive media consumers
    11. 11. Static in place and time
    12. 12. Analog and settled</li></ul>YOU NEED TO…<br /><ul><li>Go where your audiences go
    13. 13. Break through scale limitations
    14. 14. Span display, mobile, and video</li></ul>TODAY’S CONSUMERS…<br /><ul><li>Active content co-creators
    15. 15. Fragmented in space and time
    16. 16. Digital and nomadic</li></li></ul><li>1st generation DSPs were a step in right direction<br />© 2010 DataXu, Inc. Privileged & Confidential <br />BENEFITS:<br /><ul><li>Better ROAS
    17. 17. More control
    18. 18. More efficient
    19. 19. Represent buy-side interest</li></ul>LIMITATIONS:<br /><ul><li>Fixed rule buying
    20. 20. Poor scalability of retargetingand audience buying
    21. 21. Cost effectiveness</li></ul>AUDIENCE BUYING<br />RETARGETING<br />
    22. 22. AUDIENCE BUYING<br />RETARGETING<br />The biggest problem with 1st gen DSPs: SCALE<br />© 2010 DataXu, Inc. Privileged & Confidential <br />REACHES ALL CONSUMERS<br />Use insights from your own data to scale across display, mobile and video<br />AUDIENCE DISCOVERY<br />LIMITEDby the number of cookies you can buy<br />LIMITEDby the number of people who come to your site<br />
    23. 23. DataXu’s Next Generation Platform<br />sd<br />© 2010 DataXu, Inc. Privileged & Confidential<br />LEARNS <br />FROM WHAT’S WORKING<br />1.<br />2.<br />MEASURES<br />CONSUMER <br />BEHAVIOR<br />BUYS<br />MEDIA ACROSS<br />CHANNELS <br />AND FORMATS<br />DECIDES<br />WHAT CONSUMERS, <br />CONTEXTS, CREATIVES, <br />AND PRICE<br />4.<br />3.<br />
    24. 24. Why Dynamic Decisioning Matters <br />© 2010 DataXu, Inc. Privileged & Confidential<br />
    25. 25. Learning: Price VolatilityFavors Dynamic Bidders<br />Results:<br />Persistent price volatility is enabling advertisers to capture high value at low cost. Over 100% volatility --10 times higher than NASDAQ’s<br />Conclusion:<br />Dynamic decision systems that adjust in real time can boost performance<br />Challenge:<br />Decide, in real-time what ads to buy, adjusting to extreme price variation<br />© 2010 DataXu, Inc. Privileged & Confidential<br />
    26. 26. Learning: Creative Optimization is Key<br />Challenge:<br />Maximize campaign performance, targeting across Creative, Consumer and Context<br />Results:<br />Deciding on right creative for each ad was most important on 48% of the campaigns<br /><ul><li>Yet, on a significant number of campaigns, it was either Context or Consumer</li></ul>Conclusions:<br />Best approach is to use the data, and automatically adapt<br /><ul><li>One-size-fits-all, rigid approaches are always doomed
    27. 27. A global optimization approach balances all three domains at once</li></ul>© 2010 DataXu, Inc. Privileged & Confidential<br />
    28. 28. Learning: Optimization offers efficiency at scale<br />© 2010 DataXu, Inc. Privileged & Confidential <br />15<br />Challenge:<br />Optimize media buys to find the right media at the right price<br />Results:<br />The cost of media for Audience Targeting is 3X more expensive than ROE<br /><ul><li> But effectiveness as measured by CPA was 2.7X better for Optimized ROE than for Audience Targeting</li></ul>Conclusions:<br />Optimized Run-of-Exchange campaigns have a much lower cost of media<br /><ul><li>Audience Targeting leads to multiple buyers bidding for a relatively small number of impressions
    29. 29. Retargeting lists are limited in size and unable to scale</li></li></ul><li>Learning: Effective Campaigns are built on “Brand Genomes”<br />© 2010 DataXu, Inc. Privileged & Confidential <br />16<br />Challenge:<br />Build a campaign that is “brand unique” instead of “industry unique”<br />Results:<br />The “brand genome” campaign drove conversion rates 2-3X higher than traditional campaign strategies<br /><ul><li>Using a competitor’s genome did little to increase conversions</li></ul>Conclusions:<br />To drive optimal campaign performance, your media strategy should be as unique as your brand<br />
    30. 30. Agenda<br />Introductions<br />Industry Overview<br />DSP Learnings & Key Requirements<br />RTB & Premium Inventory<br />© 2010 DataXu, Inc. Privileged & Confidential<br />Ben Trenda, VP of REVV Marketplace Development<br />17<br />
    31. 31. What’s the Rubicon Project?<br />© 2010 DataXu, Inc. Privileged & Confidential <br />the Rubicon Project is leading a revolution of the online advertising ecosystem through the innovation of a next-generation infrastructure and a powerful, open marketplace.<br />Leading Yield Optimization Platform<br />Fastest growing advertising tech company:<br /><ul><li>Founded by ad server pioneers in 2007
    32. 32. 250 employees
    33. 33. $60M funding
    34. 34. More than 1 trillion ads served
    35. 35. Key Acquisitions:
    36. 36. Fox Audience Network
    37. 37. OthersOnline: audience affinity analytics
    38. 38. SiteScout: ad security
    39. 39. Most Innovative Company, American Business Awards 2010
    40. 40. Trusted by 350 Premium Publishers
    41. 41. 33% of comScore 100 (U.S.)
    42. 42. 88 of comScore 500 (Global)
    43. 43. 12 of Top 15 Newspapers in the U.S.
    44. 44. REVV processes more than 60 billion ad transactions per month (1 trillion+ to date)</li></ul>Largest* Display Advertising Marketplace<br /><ul><li>*Per Quantcast (#1 Rank)
    45. 45. 550M+ global uniques
    46. 46. 600+ ad networks, exchanges, DSPs
    47. 47. Non-Competitive (no advertiser access)
    48. 48. Transparent (not "black box")</li></li></ul><li>REVV & Publishers<br />© 2010 DataXu, Inc. Privileged & Confidential <br />the Rubicon Project has engineered a technology platform and marketplace to enable publishers to more effectively compete in today's highly-competitive market.<br />Increased Revenue<br /><ul><li>Manage all sources of demand
    49. 49. Yield optimize for highest revenue
    50. 50. across all sources of demand, including RTB
    51. 51. More effectively compete:
    52. 52. massive network effect vs. silo</li></ul>Reduced Costs<br /><ul><li>Eliminate unnecessary overhead: </li></ul>trafficking, ad quality, management, reporting, billing, collections<br />Total Brand Protection<br /><ul><li>Protect your user experience
    53. 53. Protect direct sales pricing</li></ul>One platform<br />to yield optimize all inventory<br />one marketplace<br />to access all demand<br />
    54. 54. RTB & Publishers<br />© 2010 DataXu, Inc. Privileged & Confidential <br />KEY TRENDS<br /><ul><li>Advertising revenue moving from offline to online
    55. 55. 2/3 of online display impressions sold on a non-guaranteed basis
    56. 56. RTB is nascent (“industry beta”): limited inventory, today small (but fast-growing!) % of total spend</li></ul>Notable drivers on the BUY side:<br /><ul><li>4 agency holding companies control > 50% of US ad spend
    57. 57. Each has created a trading desk to fix the problems inherent in the buying of digital media (duplication, opacity, quality, efficiency)
    58. 58. Agencies working to move spend to trading desks
    59. 59. Trading desks want to spend via RTB
    60. 60. Tradingdesks limiting ad network access to this spend
    61. 61. DSPs aggregating agency, advertiser & network demand</li></li></ul><li>RTB & Publishers<br />© 2010 DataXu, Inc. Privileged & Confidential <br />KEY TRENDS<br />Notable drivers on the PUBLISHER side:<br /><ul><li>It’s tough being a publisher today…
    62. 62. Inventory volume is up, CPMs are down
    63. 63. Advertisers want to buy audience, not just inventory
    64. 64. 2 million active advertisers (how to reach them all!?)
    65. 65. 2/3 inventory sold on a non-guaranteed basis (via ad networks, exchanges, DSPs) – how to optimize all those sales channels?
    66. 66. So publishers are watching the media buying landscape carefully:
    67. 67. Programmatic buying will be increasingly important
    68. 68. Agency-originated non-guaranteed spending starting to become concentrated within trading desks— can’t afford to ignore
    69. 69. Advertisers/agencies asking for access to publisher non-guaranteed inventory within programmatic environments </li></li></ul><li>RTB & Publishers<br />© 2010 DataXu, Inc. Privileged & Confidential <br />OPPORTUNITIES & RISKS<br /> RTB can give publishers…<br /><ul><li>Revenue - new source of demand
    70. 70. Quality - high quality brand campaigns not always available through ad networks
    71. 71. Efficiency – the right ad to the right user at the right time, at the highest possible price
    72. 72. 360° Yield Optimization – RTB within the context of total demand access can drive overall yield</li></ul>But it can take away, too…<br /><ul><li>User Experience Issues
    73. 73. Direct Sales Revenue/Channel Conflict
    74. 74. Data Leakage</li></li></ul><li>Questions Publishers Ask<br />© 2010 DataXu, Inc. Privileged & Confidential <br />INSIGHT & CHALLENGES<br />Pricing<br /><ul><li>How do I leverage RTB to protect & build my pricing (not erode it)?</li></ul>Control:<br /><ul><li>How can I control global sales rights management on my inventory?
    75. 75. Who should have access to my inventory? When? Where?
    76. 76. How should I manage my advertiser & agency relationships?</li></ul>Flexibility:<br /><ul><li>Is there technology that will enable me to offer priority access to inventory (non-guaranteed) to certain partners on the fly?</li></ul>Visibility<br /><ul><li>What inventory should I make available for RTB?(sites, zones, ad sizes, user sessions, etc.)
    77. 77. How can I get the same insight into my inventory, audience and revenue that the buy-side has?</li></ul>Data and Safety<br /><ul><li>Do you have the right technology and contractual controls to protect my inventory, sales and data assets? </li></ul> <br /> <br />
    78. 78. What’s Next: RTB in 2011<br />© 2010 DataXu, Inc. Privileged & Confidential <br />CONTROL, VISIBILITY AND FLEXIBILITY<br />To achieve publisher goals, RTB needs to deliver both significant revenue impact alongside transparent controls that ensure publishers and critically, their advertisers, garner real ROI.<br /><ul><li>Private Marketplaces
    79. 79. Preferred Price Floors
    80. 80. First Look/Right of Refusal</li></li></ul><li>What’s Next: RTB in 2011<br />© 2010 DataXu, Inc. Privileged & Confidential <br />Protected RTB: IT’S ALL ABOUT CONTROL<br />Protected RTB optimizes real-time bids for inventory alongside all sources of demand, ensuring that every impression is sold for the highest possible price, regardless of the buying mode of the sales channel, all with critical protections in place to ensure user experience, direct sales and data are protected.<br />These tools can be used ininnumerable ways to buildstronger and more direct,programmatic relationshipswith advertisers.<br />
    81. 81. The Results To Date<br />© 2010 DataXu, Inc. Privileged & Confidential <br />CPM<br />20% <br />CPM <br />INCREASE<br />RTB alone drives immediate lift(3–5x CPM) while protecting publisher revenue against channel conflict, pricing arbitrage & data leakage…<br />…and additional yield growth of 20% across ALL non-guaranteed inventorywhen Protected RTB is enabled in concert with all optimization sources <br />publisher A<br />Total revenue lift before RTB<br />publisher A<br />Total revenue lift after RTB<br />
    82. 82. Agenda<br />Introductions<br />Industry Overview<br />DSP Learnings & Key Requirements<br />RTB & Premium Inventory<br />Branding vs Performance <br />Success Stories<br />© 2010 DataXu, Inc. Privileged & Confidential<br />Steve Weeks, Sr. Manager of WW Advertising<br />Michael Jenkins, Sr. Communication Strategist<br />27<br />
    83. 83. Operating in silos: The Past<br />Raise awareness<br />Site direct buys focused on high target audience composition<br />Premium rates<br />Messaging focused on product benefits<br />“Learn More”<br />© 2010 DataXu, Inc. Privileged & Confidential <br />“Brand” Efforts<br />“Response” Efforts<br />Sell product<br />Network buys focused on increasing campaign reach<br />Remnant inventory<br />Messaging focused on product features<br />Drive to “Try/Buy now”<br />Few opportunities to apply cross-campaign insights in real-time<br />
    84. 84. Cross-campaign interaction: The Present<br />© 2010 DataXu, Inc. Privileged & Confidential <br />Brand Efforts<br />Response Efforts<br />Leverage data to deliver relevant, timely messages to in-market consumers <br />Excite, engage & entice. Grow marketable universe.<br />
    85. 85. Adobe Creative Suite 5 Launch<br />© 2010 DataXu, Inc. Privileged & Confidential <br />The Goal:<br />Raise awareness, pique interest and drive revenue of CS5 – all starting on Day 1 of launch. <br />The Strategy:<br /><ul><li> Create a variety of unique media touch points to surround target and drive users to site in our branding efforts
    86. 86. Tag Adobe.com to track interest and consideration or consumers.
    87. 87. Utilize site/user data to deliver relevant messages at scale in response efforts</li></li></ul><li>Brand efforts drive interest and traffic…<br />© 2010 DataXu, Inc. Privileged & Confidential <br />Brand Campaign<br />Excite, Engage & Entice<br />The site and it’s content, in addition to banners, are the canvas<br />Foster community through social enablement (not just social media)<br />Consider all media – not just digital – and it’s ability to drive consumers to the web<br />31<br />
    88. 88. …and response efforts will capitalize on insights.<br />© 2010 DataXu, Inc. Privileged & Confidential <br />Matching product to sub-targets<br />(i.e. After Effects for video enthusiasts)<br />Response Campaign<br />Deliver relevant, timely messages<br />Purchase process messaging<br />(i.e. offers for trialists)<br />Broad, efficient media + <br />granular targets & messages<br />Leverage site data to develop relevancy<br />Incentivize when necessary<br />32<br />
    89. 89. The Results<br />© 2010 DataXu, Inc. Privileged & Confidential <br />Response Campaigns<br />Brand Campaigns<br />
    90. 90. Agenda<br />Introductions<br />Industry Overview<br />DSP Learnings & Key Requirements<br />RTB & Premium Inventory<br />Branding vs Performance <br />Success Stories<br />Q&A with panelists<br />© 2010 DataXu, Inc. Privileged & Confidential<br />34<br />
    91. 91. IAB Updates: www.iab.net<br /><ul><li>Educational Webinars (Virtual)
    92. 92. Mobile Campaign Measurement – Your Questions Answered </li></ul> Wednesday, January 12, 2010 Noon EST<br />Professional Development Classes (NYC)<br />IAB Classes on Professional Presentations, and the Digital Ecosystem starting mid-January… stay tuned! <br />IAB Annual Leadership Meeting <br />Palm Springs, California <br /> February 27 – March 1, 2011 <br />
    93. 93. Credits, Future Webinars<br />Earn Credits for attending IAB Webinars<br />Individuals earn one (1) hour credit for each webinar attended through the IAB. <br /> For further information on the IAB Digital Advertising Certificate, please visit: www.iab.net/events_training/certificate<br />Member Led Seminar Submissions<br />If you are a member of the IAB, we encourage you to submit proposals for future webinars. There is no cost to members for these sessions, and we hope they will provide a valuable forum for members to showcase their latest insights, research, and technologies. <br />To submit a webinar proposal, email luke@iab.net, or visit www.iab.net/member_webinar_submission<br />
    94. 94. Q&A<br />Please type your questions into the Questions tab on the right hand side of your screen<br />

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