Media Buying of the Future: DSP & OPA


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  • Audience buying, which we think has an increasing place in the future of media buying, has ended up being a controversial subject – raising concerned questions from some key Will AB and agency trading desks mean the end of Ad Networks (some have been predicting their demise for years now) Does buying audience, irrespective of where they are on the web, fly in the face of conventional wisdom – that context and environment are key elements of communication and that this will reduce the content we create to a commodity? And, what does this mean for publishers? Will they be forced into selling their valued premium inventory at commodity prices? And will all this user data creep consumers out so legislators are forced to restrict the way we collect data? And the answer to all of these is no (except Privacy, which is more complicated and will be covered in greater detail later in this conference)
  • Before I espouse the endless benefits of Audience Buying, let me put what we mean by Audience Buying into context. Some marketers tell me that they have been buying audiences for 30 years – after all, who, other thank audiences have been watching television? That ’ s not quite true – what we have been buying, both offline and online is content as a proxy for audience. In other words, thousands even millions in the target audience who have no interest in buying your product. The Audience buying that we are describing reaches the people who are in the market for your product – people who have raised their hand in some way to express interest in the category. The old model at the top of the slide works like this: Say we are looking to sell cars to consumers: Agency investigates which sites attract consumers who are interested in cars or which sites deliver the demographics of people that buy cars. We choose the best from the list available and advertise on them. In the new model, we are less interested in which site advertises to car enthusiasts and more interested in which consumers have displayed a behavior of what we have learned are people who are interested in buying cars based on their web browsing habits. In this way, we will find a consumer that is actually interested in buying a car – an auto intender, wherever they are on the web.
  • AB based on behavioral targeting is associated more with Direct Advertising, but we are stating to use it very successfully for branded advertising too. Context and environment will always be important for brands, but it is not necessary for branded advertisers to buy all of their inventory at premium prices. This is causing branded advertisers to consider moving more money to digital – especially from TV to video (partly to mitigate the heavy price increases in the Network upfronts) Because we are tracking behavior and interactions with your brands, the metrics are more insightful For clients that have been woried about the AB space (because they no longer control where the message appears) we can overlay brand safety tools like verification Where context is still important to the communication, we can use contextual information with audience data to deliver more successful campaigns And those Ad Networks that are positioned to solve unique problems that the agencies or the clients cannot, will continue to succeed.
  • But Audience buying is also a game changer in the area of hard metrics and efficiencies: Non premium inventory it means you are paying lower cpm’s web, we can manage actual frequency – rather than a simulate their frequency and hope for the best. We are able to target much more accurately as we are now reaching people that are actually interested in buying your product – the hand-raisers – and that means less wastage And because we see the consumers journey across the entire As the process is much more automated, we can save a significant amount of time compared to Tier 1 process of RFP’s, reconciliations and all the nightmares that digital planners have to endure – and that means more time to spend on insights and strategy – and go home sometimes before it gets dark!
  • And much of this haapens fast. In real time. This means that you are optimizing whilst your campaign is running, not using the information for your next plan. We can serve different creative executions to consumers who display different behavior We can buy in real time – at the price we are prepared to pay – for exactly the type of consumer we want And in real time, decide where to serve the ad and avoid placing it anywhere we think may damage the reputation of the brand And all of this leads to better ROI
  • We’ve been around since 1999, formerly Poindexter Systems.
  • 05/24/11
  • 05/24/11
  • 05/24/11
  • Media Buying of the Future: DSP & OPA

    1. 1. Digital Audience Buying: Game Changer or Evolution? John Montgomery , COO, North America, GroupM Interaction
    2. 2. Is Content being Turned into a Commodity? Is this the End for Ad Networks? Is the Sky Falling for Publishers? And Privacy? Media Buying: The Game has Changed
    3. 3. Audience Buying Presents a Shift in Media Acquisition Inventory Pool Audience Regardless of Context Advertiser/Agency Insertion Order DSP DMP Audience Data A D V E R T I S E R S Content as a Proxy for Audience Tech Zone Site 1 Site 2 Site 3 The Old Model The New Model
    4. 4. Audience Buying. Game Changing Benefits to Brands and Advertising Industry Brands move money to digital Content still key for Brands Better Metrics A safer environment for Brands Well positioned Ad Networks offering will thrive
    5. 5. Audience Buying. Game Changing Efficiencies Media Efficiencies High Tech – Low Touch Better targeting and retargeting Reach extension – frequency management
    6. 6. Audience Buying. Game Changing. In Real Time Message Management Real Time Buying Brand Safety Better ROI
    7. 7. Audience Buying. Game Changed.
    8. 8. Digital Audience Buying: Game Changer or Evolution? John Nardone , CEO, [x+1]
    9. 9. Multi-touchpoint Optimization DSPs provide an… that enables… to optimize… by implementing… across… Audience Targeting Platform Marketers and Agencies Marketing interactions Real-time Analytics and Decisions Multiple Channels
    10. 10. The current digital marketing funnel is broken, and is not helping companies grow Broad reach Branding Search & Intender Targeting Remarketing Client Website Client Website Little management of the top of the funnel... Under managed website…. Overspent on remarketing
    11. 11. DSPs are only part of the solution … but targeting intenders and remarketing does little to create demand . Broad reach Branding Intender Targeting Remarketing Client Website Client Website DSP’s target spending here
    12. 12. Fix all the points of the broken funnel to drive dramatic improvement in online results NEW R/F Manager and audience optimization reduces waste to reach more target audience with effective frequency. Dynamic landing page presents content based on media and audience data. . Intender data evaluated and purchased through the hub Consolidated remarketing is frequency-optimized to minimize waste Broad reach Branding Intender Targeting Remarketing Client Landing Page Website Client Website Attribution model gives clarity to investment results
    13. 13. <ul><li>Optimized “top of funnel” redirected 23% of unproductive spend . </li></ul><ul><li>Funnel migration metrics identified the opportunities to redeploy the dollars with productive partners. </li></ul><ul><ul><li>DSP intender targeting </li></ul></ul><ul><ul><li>DSP inexpensively supplements low frequency </li></ul></ul><ul><ul><li>Productive direct pubs and networks that add effective reach to the plan </li></ul></ul><ul><li>Dynamic landing pages used media exposure (site and creative) as attributes, along with audience to determine the user experience </li></ul>Top 20 online advertiser gets +100% lift Significant impact on the EPS of the company