Forrester Research: Building a Proprietary Audience Business.”


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Forrester Research’s Interactive Marketing Analyst, Michael Greene illustrates what measures and steps a digital media company should take to protect their most valuable asset – their audience – and win the interactive marketing race.

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  • Buyers looking for granularity, transparency, and control. Gaining both operational efficiencies and greater effectiveness through programmatic methods.
  • Thanks Michael. Self-introduction – Manu Warikoo, VP of Product and Solutions, responsible for….Transition…a little about ourselves…
  • Company introduction – For more than 10 yrs, Operative has been helping companies with their ad business; provide the only (open) platform that helps companies manage their entire/end-to-end business Customers – over the years we’ve worked with top media companies such as (x,y,z); solve major (business/operational/etc.) challenges; one area w/growing, new challenges – figuring out how to create sellable products/bundles of products that maximize revenue, and at the same time, can be managed/executed scalably
  • AsMichael mentioned, companies need the right technology infrastructure to manage increasingly complex businesses (from x and y to z)Diagram – illustrates our end-to-end solution, managing the entire digital value chain; open, agnostic approach to integrating with core technologies/systems to running businessesProduct Packaging – critical element to capturing/maximizing rev opportunities…Key benefits – with the right infrastructure, you put yourself in a position to….1,2,3Key requirements – there are jobs/capabilities which help drive good productization practices; ABM platform provides this
  • Questions?
  • Forrester Research: Building a Proprietary Audience Business.”

    1. 1. Client logo goes here Michael Greene, Analyst Building a Proprietary Audience – Win the Interactive Marketing Game Presenters: Manu Warikoo, VP of Product & Solutions September 13, 2011
    2. 2. © 2011 Forrester Research, Inc. Reproduction Prohibited2 © 2009 Forrester Research, Inc. Reproduction Prohibited Building a proprietary audience business Michael Greene, Analyst September 13, 2011
    3. 3. © 2011 Forrester Research, Inc. Reproduction Prohibited3 Key questions for today  Why do digital publishers need to consider building a proprietary audience business?  How should publishers approach this new market opportunity?
    4. 4. © 2011 Forrester Research, Inc. Reproduction Prohibited4 No matter the medium, publishers have always been in the business of selling audience .
    5. 5. © 2011 Forrester Research, Inc. Reproduction Prohibited5 What do we mean by audience targeting today? Targeting based on user attributes such as surfing or search behavior, demographic characteristics, or mindset that does not rely solely on specific site or content adjacency.
    6. 6. © 2011 Forrester Research, Inc. Reproduction Prohibited6 But digital technology has altered the ways buyers and sellers think about reaching the right audience
    7. 7. © 2011 Forrester Research, Inc. Reproduction Prohibited7 Two critical factors create an audience imperative for digital publishers Evolving buyer behavior A new competitive landscape
    8. 8. © 2011 Forrester Research, Inc. Reproduction Prohibited8 Last year, marketers told us that buying audience was major spending driver 58% 39% 31% 48%
    9. 9. © 2011 Forrester Research, Inc. Reproduction Prohibited9 Agency buyers are taking note, putting a priority on audience targeting
    10. 10. © 2011 Forrester Research, Inc. Reproduction Prohibited10 Direct buys are still the norm, but programmatic buying is rapidly rising in prominence
    11. 11. © 2011 Forrester Research, Inc. Reproduction Prohibited11 Agency buyers are turning to a diverse mix of media partners
    12. 12. © 2011 Forrester Research, Inc. Reproduction Prohibited12 Digital publishers are also facing a new breed of competition.
    13. 13. © 2011 Forrester Research, Inc. Reproduction Prohibited13 Advertisers have nearly unlimited options for how they can spend their money on audience
    14. 14. © 2011 Forrester Research, Inc. Reproduction Prohibited14 What does this all mean?  Advertisers and their agencies are embracing audience targeting opportunities through both traditional and programmatic buying methods  A diverse competitive set means digital publishers can’t afford to sit still. They must evaluate audience-related opportunities to capture new budgets and take share of existing spend  Successful publishers will command a premium through both differentiated media and differentiated audience data
    15. 15. © 2011 Forrester Research, Inc. Reproduction Prohibited15 Publishers of all kinds are stepping up to meet evolving buyer demands  Large publishers like NBC-Universal are building audience targeted ad products to sell across both direct and indirect sales channels  Niche publishers like Forbes are leveraging audience data to provide extended reach and new insights to advertisers
    16. 16. © 2011 Forrester Research, Inc. Reproduction Prohibited16 Building a proprietary audience business: A three step approach Evaluate and control your data assets Assess your market opportunities Execute a go to market strategy
    17. 17. © 2011 Forrester Research, Inc. Reproduction Prohibited17 Step 1: Evaluate and control your data assets  Start with a data audit. Look at multiple sources of data that could potentially come together – site-side audience behavior, CRM data, offline data, etc…  Examine current sales channels. Many publishers are already selling audience today, often through third-party sales channels. Identify these relationships and how they are packaging your media and data.  Identify unauthorized data use (i.e. data leakage). It’s tough to build an audience business if third-parties are selling your audience without your consent. Use a data protection tool to identify any cases of unauthorized data use.
    18. 18. © 2011 Forrester Research, Inc. Reproduction Prohibited18 Step 2: Asses your market opportunities Third-party data targeting •Apply third- party data to inventory First-party data targeting •Package together proprietary data and media for direct sales Publisher trading desk •Publisher conducts audience extension campaigns on behalf of advertiser First-party data sales •Sell proprietary data through open data exchanges RTB-enabled data cooperation •Similar to first- party data targeting, but with execution through programmatic channels Media-focused monetization Data-focused monetization Which suits your data assets and advertiser opportunities?
    19. 19. © 2011 Forrester Research, Inc. Reproduction Prohibited19 Step 3: Execute  Build the right products. Publishers will have to decide whether they build custom for advertisers, build a steady suite of audience products, or a some of both.  Invest in the right technology infrastructure. From building audience segments to forecasting inventory availability, publishers will need a more extensive toolset to manage a more complex business.  Invest in the right personnel. Building a proprietary audience business will require new skill sets across sales and ops teams. Look for individuals with strong analytical skills and an understanding of the language of audience data.
    20. 20. © 2011 Forrester Research, Inc. Reproduction Prohibited20 Summing it up: identify your audience opportunities now  Audience buying doesn’t replace content adjacency. Buyers tell us that content and audience need to work together. Find ways to deliver both to media buyers through bundled products and a wider array of ad products.  Create the right sales incentives. Selling audience is a new skill set for most sales organizations. There is no one-size fits all organizational model, but proper incentives are critical.  Know your limitations. Publishers with limited scale or less valuable audience data will have different , less profitable opportunities than larger or data rich publishers. Evaluate your priorities accordingly.
    21. 21. © 2011 Forrester Research, Inc. Reproduction Prohibited21 Publishers must prepare for greater product complexity across marketing, sales and operations. Publishers will need to embrace structures to help manage this complexity. . What it means:
    22. 22. Client logo goes here Operative Advertising Business Management 1/29/2015 Proprietary and Confidential. Manu Warikoo, VP Product & Solutions September 13, 2011
    23. 23. Client logo goes here 23 11 years of deep domain expertise in digital advertising media An estimated $6B in global ad revenue runs through our Advertising Business Management solutions Work with more than 200 leading media companies, networks, and agencies, including MSN, NBC, Pandora, Dow Jones, OMD More than 300 employees in New York, London, São Paulo, Melbourne, and Bangalore 1/29/2015 Proprietary and Confidential. About Operative
    24. 24. Client logo goes here 24 1/29/2015 Proprietary and Confidential. Product Packaging (Audience) Key Requirements: ① Ability to sell bundled products ② Rate card management tools ③ Discipline around Sales The Solution: Advertising Business Management Adopting a Productization Strategy: ① Helps capture maximum revenue ② Enables operational efficiency ③ Allows you to measure product performance
    25. 25. Client logo goes here 25 1/29/2015 Proprietary and Confidential. Questions?
    26. 26. Client logo goes here 26 Manu Warikoo | Michael Greene | 1/29/2015 Proprietary and Confidential. Thank You