iStrategy 2013, Sydney: Leveraging the last millisecond

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Digital media suffers from substantial decays in effectiveness over time. Despite this, the ROI often outstrips more traditional media, but for how long? Delivering relevance can provide a powerful …

Digital media suffers from substantial decays in effectiveness over time. Despite this, the ROI often outstrips more traditional media, but for how long? Delivering relevance can provide a powerful tool for extending the life of a channel or campaign (and making it more effective in the first place). In this paper, we look at the challenges with identifying customer intent and matching this with real-time, relevant communications at enterprise scale. Demonstrations of ad verification and intelligent digital platform capabilities explore how relevance at scale can be delivered and the observed impacts on business outcomes.

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  • 5.3015592e+12 banner ads served in the US per year.That’s 168 per millisecond. 840,000 since I’ve been talking (5 seconds).You are more likely to survive a plane crash than click on a banner ad.
  • Performance-based shifts in marketing spendExample: deltas for APAC advertisers based on MMM projectsExample: shift in Australia spend from Nielsen data or IAB data
  • e.g. PHG: Performance Horizon Group. Clients include Sony, Nokia, Barclaycard, T-Mobile, Emirates, Orange. Some of the most advanced players in the industry working the arbitrage between CPM and CPA. NOT those who focus on the most efficient methods of creating low-quality leads (often through fraudulent conversations).
  • e.g. PHG: Performance Horizon Group. Clients include Sony, Nokia, Barclaycard, T-Mobile, Emirates, Orange. Some of the most advanced players in the industry working the arbitrage between CPM and CPA. NOT those who focus on the most efficient methods of creating low-quality leads (often through fraudulent conversations).
  • Integrated: maximise data and reach synergies across media typesIntelligent: optimise full conversion paths for each visitor with full accountabilityIndustrialized: leverage high levels of automation and machine decisioningThe result: de-averaged, scalable digital marketing
  • How to deliver relevance @ scale & speed- Automation platforms- Data-driven decisioning & machine learning- Scale, low cost message & creative developmentDigital & direct processes & mindset
  • 5.3015592e+12 banner ads served in the US per year.That’s 168 per millisecond. 840,000 since I’ve been talking (5 seconds).You are more likely to survive a plane crash than click on a banner ad.

Transcript

  • 1. Leveraging the last millisecondJason Juma-Ross Marcus Verrall@ideasoc @MarcusVerralliStrategy Sydney, April 2013Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
  • 2. 2.5m display ads/5 secs 1 average user served 1,707 banner ads per month 2 >30% don’t get seen 3 standard banner 0.04% ave CTR 41. An estimated 169 display impressions served per millisecond: 2,470,588 in five second2. & 3. US Internet Users, ComScore4. DoubleClickCopyright © 2013 Accenture All Rights Reserved. 2
  • 3. Investment continues to pour into digital: forgood reason!$000s 2012 Australian Media Spend & YOY Δ ($24m)4,000,000 $516m3,000,000 ($476m)2,000,0001,000,000 ($18m) $21m $11m $8m ($41m) 0 Television Press Magazines Radio Cinema Out of Home Direct Mail DigitalROIBasis 25% 8%(example) (2%) (28%) (60%) (10%)Source: AQX Monthly, Jan 2011 – Jan 2013, IAB Online Advertising Expenditure Report, Dec 2012, Accenture analysis: APAC region.Copyright © 2013 Accenture All Rights Reserved. 3
  • 4. Use of automated tools to procure online Real Time advertising, one impression at a time, at scale, based on the unique characteristics of a granular target Bidding audience Convergence Ability to procure media packages that consist of combined inventory from both traditional and digital Buying (again) channels Pay for Outcome based buying, allowing advertisers to procure clicks, leads, enquiries, opportunities to Performance quote, bookings,Copyright © 2013 Accenture All Rights Reserved. 4
  • 5. Advertiser Customer Customer Effectiveness Novelty Relevance Real Time Bidding Convergence Buying (again) Pay for PerformanceCopyright © 2013 Accenture All Rights Reserved. 5
  • 6. Novelty: Long term decline in banner CTRs 100% 80% 78% CTR, HotWired 1994 60% 40% 0.1% 0.05% 20% 0.04% 0.5% CTR AdKnowledge Online 0.03% 10% Advertising Report 1st Quarter 2000 0.02% c. 5%, 1997 5% 0.01% 1990 1995 2000 2005 2010 2015ClickZ 2001, ‘Are Click-Through Rates Really Declining?’, http://www.clickz.com/clickz/column/1706011/are-click-through-rates-really-decliningAndrew Chen’s Law of Shitty Clickthroughs, http://andrewchen.co/2012/04/05/the-law-of-shitty-clickthroughs/#Copyright © 2013 Accenture All Rights Reserved. 6
  • 7. The ‘law of shitty clickthroughs’ is a generalphenomenonSite retargeting clickthrough rate decline over a five month period. Source: http://andrewchen.co/2012/04/05/the-law-of-shitty-clickthroughs/Copyright © 2013 Accenture All Rights Reserved. 7
  • 8. How can we improve this situation in thenew RTB enabled environment?1.Cut through: Great, low-cost creative2.Audit: verify what you got3.Relevance: extend the fall off in the clickthrough curve by targeting intentCopyright © 2013 Accenture All Rights Reserved. 8
  • 9. Chevvy: ‘Happy Grad’ SuperBowl XLVISource: SuperBowl XLVI, 2012 MoFilmCopyright © 2013 Accenture All Rights Reserved. 9
  • 10. Use ‘fast transients’ to deliver relevance &extend the useful life of advertising vehicles Search Display Media KWG 1 KWG 2 KWG N Seg 1 Seg 2 Seg N de-averaging Dynamic Landing Pages Product/Detail Pages • Integrated data • Intelligent conversion paths Checkout / Conversion • Industrialised automation & decisioningCopyright © 2013 Accenture All Rights Reserved. 10
  • 11. Challenge the high cost of complexityattached to delivering relevanceCustomers demand a more granular and continuous content and functionalitydevelopment cycle than is possible in the current paradigm New Paradigm Complexity Dimensions Platform based, componentised dev., 5 Cust. Segments 12,150 Treatments flexible architecture with analytics linking 2,430 content, usage, and 3 Channels value + Relevance 6 Regions 810 Current Paradigm 135 Monolithic web 27 Brands development & digital Current supply chain. Analytics 5 Treatments used primarily for 5 Product categories reporting purposes 1 Treatment Unit Delivery Cost +Copyright © 2013 Accenture All Rights Reserved. 11
  • 12. Ad Banner Buyer DEMO Audit: scans publisher sites to track where your and your competitors’ inventory appears Semi-automated intelligent platform optimises for intent in real time DEMOCopyright © 2013 Accenture All Rights Reserved. end 12
  • 13. ABBACopyright © 2013 Accenture All Rights Reserved. 13
  • 14. ABBACopyright © 2013 Accenture All Rights Reserved. 14
  • 15. Google Search Result (Actual)Copyright © 2013 Accenture All Rights Reserved. 15
  • 16. Google Search Result (DEMO)Copyright © 2013 Accenture All Rights Reserved. 16
  • 17. Visitor ContextCopyright © 2013 Accenture All Rights Reserved. 17
  • 18. Optimised Landing PageCopyright © 2013 Accenture All Rights Reserved. 18
  • 19. Facebook IntegrationCopyright © 2013 Accenture All Rights Reserved. 19
  • 20. Optimised Product PageCopyright © 2013 Accenture All Rights Reserved. 20
  • 21. Optimised Product Page – Visitor ContextCopyright © 2013 Accenture All Rights Reserved. 21
  • 22. Lagging Leading Emerging STATIC ‘ONE-SIZE FITS PERIODIC, EMPIRICALLY- AGILE, INTELLIGENT ALL’ WEB SITES DRIVEN ITERATION DELIVERY Search Social Display Personalisation (HTML) Web Skin Core Systems Componentised (Aligned) (HTML Layer) Architecture Search Social Display Foundational Components Intelligence Driven (Analytics) Intelligent Adaptation Analytics Applications, (Reporting) transactional, and service platforms Customer Data CloudCopyright © 2013 Accenture All Rights Reserved. 22
  • 23. Relevance = business de-averaged 1960 1980 2000 2020 Broadcast Paradigm Intent Paradigm Campaigns Demand Campaign Demand Profile Profile Population Population Demog. Simple Single Uniform Intent Multiple Fragmented Campaign Segment Offer Channel Campaign Segments Offers Channels Relevance Local Mobile Social Bundle Search Web eDM/DM IPTV, etc Hindsight based business Relevance, scale, & speedCopyright © 2012 Accenture All Rights Reserved. 23
  • 24. c.1bn display ads/30 mins average optimised 250 conversions 500 conversions ROI x2Copyright © 2013 Accenture All Rights Reserved. 24
  • 25. Thank youJason Juma-Ross Marcus VerrallRegional Managing Director Digital DirectorAccenture Interactive Accenture Interactivejason.juma-ross@accenture.com marcus.verrall@accenture.com@ideasoc @MarcusVerrallCopyright © 2012 Accenture All Rights Reserved. 25