Convergent Advertising


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Telefonica presentation about convergente advertising at HP world forum 2008

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Convergent Advertising

  1. 1. Convergent advertising © 2008 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  2. 2. About Telefónica Present in 24 countries +240.000 employees +13.800 MMEuros Incomes +233MM Monthly accesses +63% of incomes are out of Spain
  3. 3. <ul><li>01 Current Telefónica Advertising Offering </li></ul><ul><li>02 Heading to the future Scenarios </li></ul><ul><li>03 Advertising Use case </li></ul><ul><li>04 Product & Services Description </li></ul><ul><li>- Main features description </li></ul><ul><li>- Service Architecture </li></ul><ul><li>05 Conclusions </li></ul>Index
  4. 4. <ul><li>01 Current Telefónica Advertising Offering </li></ul><ul><li>02 Heading to the future Scenarios </li></ul><ul><li>03 Advertising Use case </li></ul><ul><li>04 Product & Services Description </li></ul><ul><li>- Main features description </li></ul><ul><li>- Service Architecture </li></ul><ul><li>05 Conclusions </li></ul>Index
  5. 5. Advertising <ul><li>Advertising </li></ul><ul><li>Advertising is defined as a form of non-personal communication , paid for by an identified sponsor , whose purpose is to inform potential customers about products and services and how to obtain and use them. </li></ul><ul><li>Every major medium is used for advertising: </li></ul><ul><ul><li>Television, radio, movies, magazines, newspapers, video games, the Internet, the mobile phone and billboards. </li></ul></ul><ul><li>Advertising is often placed by an advertising agency on behalf of a company. </li></ul><ul><li>Source: Wikipedia, Bovee, 1992, p. 7, Philip Kottler, Marketing Management, 2000. </li></ul>
  6. 6. CONOCIMIENTO We enable means to communicate: Conversational and multimedia P2P and A2P How much time do you spend communicating? We reach professional, personal and domestic MOBILE – PC -TV How much time do you spend staring a Telefónica screen? <ul><li>All our interactions with users are: </li></ul><ul><li>One 2 one </li></ul><ul><li>Face 2 face </li></ul><ul><li>Autenticated </li></ul><ul><li>We have more info about our customers than a insurance company or a bank: </li></ul><ul><li>- Demographic </li></ul><ul><li>- Contextual </li></ul><ul><li>Behavioral </li></ul><ul><li>Why an operator has high potential on advertising? </li></ul>In the digital advertising world, operators can provide value enabling advanced communication means between advertisers and their potential clients. METRICS AUDIENCE REACH
  7. 7. Current situation in internet: TERRA
  8. 8. Current situation in mobile <ul><li>WAP was the first step … </li></ul>
  9. 9. Current situation in IPTV: IMAGENIO Espere mientras se carga el video seleccionado...
  10. 10. Current approach silos
  11. 11. Advertising architecture : Actors in the digital advertising arena Third parties channels Third parties Sales forces Operator sales force advertisers Media agencies No Operator Clients PC – mobile – fixed – TV <ul><li>Convergent </li></ul><ul><li>operator </li></ul><ul><li>Channels </li></ul><ul><li>Mobile </li></ul><ul><ul><li>Video </li></ul></ul><ul><ul><li>Wap </li></ul></ul><ul><ul><li>Messaging </li></ul></ul><ul><ul><li>Voice </li></ul></ul><ul><li>PC </li></ul><ul><ul><li>Internet TV </li></ul></ul><ul><ul><li>Portals </li></ul></ul><ul><li>IPTV </li></ul><ul><ul><li>Banners </li></ul></ul><ul><ul><li>Spots </li></ul></ul><ul><li>ADSERVERS </li></ul><ul><li>Mobile </li></ul><ul><li>Internet </li></ul><ul><li>IPTV </li></ul>Operator Clients PC – mobile – fixed – TV audience channels Advertising market ¿…..? How can I work with an OPERATOR? There is a need of taking advantage of the possible synergies which can be generated as a convergent operator (personalization, profiling, billing, cross-channel) <ul><li>Direct integration between adservers and channels: </li></ul><ul><li>Integration Complexity </li></ul><ul><li>Strong coupling </li></ul><ul><li>Excessive value delegated in the adserver side. </li></ul><ul><li>Value missing </li></ul>Sales units have to interact with different systems for each channel. In some cases, with different adservers
  12. 12. <ul><li>01 Current Telefónica Advertising Offering </li></ul><ul><li>02 Heading to the future Scenarios </li></ul><ul><li>03 Advertising Music Use case </li></ul><ul><li>04 Product & Services Description </li></ul><ul><li>- Main features description </li></ul><ul><li>- Service Architecture </li></ul><ul><li>05 Conclusions </li></ul>Index
  13. 13. Heading to future scenarios Advertising “ success bubble trend ” 02 loyalty points targeting longtail location impact discounts permission MKT opt-in/out user prefs User Centric user info SDP enablers monetization strategic assets ad-funded servs operator Assets Innovation Advertisers revenue convergent management tools reporting proam UX self provisioning engagement new formats IPTV+mobile+Inet
  14. 14. reports forecast inventory traffic Frequency capping Profiling/targeting Policies control Today Tomorrow <ul><li>Vertical approach for ad serving </li></ul><ul><ul><li>Each service accesses a different adServer (multiple integrations) </li></ul></ul><ul><ul><li>No added-value (like segmentation, location, etc) </li></ul></ul><ul><ul><li>Lack of integrated workflow for inventory and campaign management </li></ul></ul><ul><ul><li>Few commercialization tools, except for the ones provided by the adServers </li></ul></ul><ul><ul><li>Different sales force teams </li></ul></ul><ul><li>New concept (layer approach) </li></ul><ul><ul><li>Policy management architecture approach </li></ul></ul><ul><ul><li>Control Layer + Commercial Suite Tools </li></ul></ul><ul><ul><li>Convergent : mobile+IPTV+Internet </li></ul></ul>02 Target Scenario How is this different from what we do today? Control Layer : selects best ad according to TEF assets (location. Policy, profiling) Commercial Suite: cross-channel ad campaigns; portal for advertisers
  15. 15. Today Tomorrow 02 Target Scenario <ul><li>According to the “ success bubble trend ” ( innovation , user-centric , operator assets , advertisers ) and the new scenario envisaged, some strategic implications must be considered, in order to proceed: </li></ul>Ability to innovate (we must be agile!) Speed in time-to-market (flexible roadmaps, permanent feature improving) Assure privacy while monetizing data (care about legal risks) To be a leader taking risks, better than a mature follower To differentiate from competitors Business plan estimations, on income increase
  16. 16. Convergent capabilities 02 2009 Scenario Focus on cross features and monetization tools <ul><li>Users will receive TARGETED ADS!!! (so, useful and interesting) </li></ul><ul><li>Fully business model with loyalty & discounts </li></ul><ul><li>Innovative services could be deployed (in mobile, Inet and IPTV) </li></ul>Customer Benefits <ul><li>Services could be monetized through cross channel campaigns </li></ul><ul><li>Leverage key assetes for monetization: location, profiling, etc </li></ul><ul><li>Open to innovation </li></ul><ul><li>Focus to advertisers in one marketplace (planning, reporting, audience metering, inventory forecasting, etc.) </li></ul><ul><li>Integrations with TEF enablers through SDP architecture or ad-hoc adaptors </li></ul>Operator Benefits
  17. 17. <ul><li>01 Current Telefónica Advertising Offering </li></ul><ul><li>02 Heading to the future Scenarios </li></ul><ul><li>03 Advertising Use case </li></ul><ul><li>04 Product & Services Description </li></ul><ul><li>- Main features description </li></ul><ul><li>- Service Architecture </li></ul><ul><li>05 Conclusions </li></ul>Index
  18. 18. <ul><li>There, he discovers flexible interesting options: </li></ul><ul><ul><li>Obtain discounts and loyalty point for receiving ads </li></ul></ul><ul><ul><li>Ads can be highly targeted (i.e. useful & interesting), based on: </li></ul></ul><ul><ul><ul><li>current location, </li></ul></ul></ul><ul><ul><ul><li>profiling and </li></ul></ul></ul><ul><ul><ul><li>his own preferences set on the portal </li></ul></ul></ul><ul><ul><li>Switch on/off when ads are shown (Opt- in & opt- out ) and the frequency </li></ul></ul><ul><li>Users take control of advertising </li></ul>Use Case Advertising Use Cases <ul><li>Alex (21) is a teenage mobile user. He receives an SMS invitation (promotion included!) to enter the “Telefónica O2 Advertising Users Portal” </li></ul>TRANSPARENCY CUSTOMIZATION AVOID AD SPAM LOYALTY 1 2 03
  19. 19. <ul><li>Proams (professional /amateur users) with lots of creativity, could upload their spot creations to enter the spot contest for Nike </li></ul><ul><li>Proams contribution to the ad market (UGC Ads) </li></ul>Use case <ul><li>Nike decides to innovate and launches a “UGC Spot Contest” through Telefónica portals, to select an spot for its new campaign </li></ul><ul><li>Proams could be rewarded per use! (revenue share) </li></ul>1 2 3 Advertising Use Cases 03
  20. 20. <ul><li>Nike decides to launch a cross-channel campaign on mobile, Inet and IPTV for a brand new sport shoe, for young dynamic people </li></ul><ul><ul><li>WAP clickable banners for Mobile users (btw: 18-35y, who like sports, only btw 16:00 and 20:00) </li></ul></ul><ul><ul><li>Internet targeted video and banner ad (young people, like sports, only btw 8 and 17h) </li></ul></ul><ul><ul><li>IPTV interactive TV-site synchronized with TV spot, in the weekends </li></ul></ul><ul><ul><li>Frequency capping = 3 </li></ul></ul>Select winner spot, and customize it Target your audience: UK, London, teenagers 18-22 y.o. Plan it!: confirm budget, dates, etc. Use Case <ul><li>Advertisers want to target their potential audience, and plan a cross-channel campaign over the Operator channels </li></ul>2 3 1 Advertising Use Cases 03
  21. 21. <ul><li>Suddenly, it is shown the Nike ad (as a pre-roll and banner) in the next video: Alex clicks on it to check out the new Nike product </li></ul><ul><li>Users will receive targeted ads according to context; advertisers could check the impact using Reporting Portal </li></ul>Use case <ul><li>Alex surfes the Web at home, he often views videos on sports </li></ul><ul><li>Next day, Alex goes to London area, to do some shopping. When he arrives, he receives an MMS with a banner and location of the closest Nike Store, with a promotion for acquiring the new brand sport shoes </li></ul>1 3 Advertising Use Cases 03 2
  22. 22. <ul><li>01 Current Telefónica Advertising Offering </li></ul><ul><li>02 Heading to the future Scenarios </li></ul><ul><li>03 Advertising Use case </li></ul><ul><li>04 Product & Services Description </li></ul><ul><li>- Main features description </li></ul><ul><li>- Service Architecture </li></ul><ul><li>05 Conclusions </li></ul>Index
  23. 23. Main features description: Ad Control Layer 04 Generic Advertising Protocol Integration with targeting: location & profiling Users Portal: Preferences, Opt-in/out, Loyalty points, Discounts Ad Delivery Core Manager Common API for ad requests and responses; valid for any service Leveraging value added assets from TEF, applied to advertising. Some data could be cached for efficiency. Users take control of what kind of ads, how many and when. Also they get awarded with discounts & loyalty points, when receiving ads Manages the advertising flow and steps, according to policies, targeting, etc, to finally serve the ad to each channel Offportal Advertising (keywords for AdNetworks) TEF could provide added-value (targeting keywords from users activity and profile, etc) to existing AdNetworks
  24. 24. 1 Pre-Order 2 Order Management 3 Billing & Reconciliation Proposal Generation Inventory Management Targetting Advertisement Delivery Campaign Management Reporting Billing Interfaces with actors Proposal Builder Advertisers Telefonica Buzz Areas Creative Generation & Publishing Detailed Functional Implementations Advertisement UI Framework 04 Buy side Sell side Media Planning & Buying Inventory Management UI Detailed Reports, general Particular Campaigns Reports Conversion Visor Rate Proposar Visor Rate Enterprise Management Tools (EMT) & Customer care Advertisers Management Tools (AMT)
  25. 25. Main features description: Commercialization Suite 04 Ad Campaign Tool (relaying on adServers) Reporting & Metrics Portal (relying on adServers) Inventory Forecasting & Target Audience Portal Proams Creativity Tool (UGC Ads) Integrated tool for managing the ad campaigns (for mobile, Inet, IPTV); for advertisers ( do-it-yourself ) and traffickers Fully featured reporting tool for advertisers, to check the efficiency and status of their cross channel campaigns Gives estimation on audiences (how many users of a specific target) and remaining ad spaces (inventory) Professional-amateurs are the essence of Web 2.0. They can provide ad ideas (spots, etc) for advertisers and SMEs
  26. 26. <ul><li>Rich Media Targeted Advertising on Internet (video, overlays, etc) </li></ul><ul><li>Social Network Advertising (Facebook, Twitter, TEF-based, etc) </li></ul><ul><li>Targeting services for 3rd party AdNetworks </li></ul><ul><li>… </li></ul>Main Services description 04 <ul><li>Voice Advertising (ringback tones, sponsored calls) </li></ul><ul><li>WAP banners and Spots on mobile phones </li></ul><ul><li>Alerts / SMS / MMS / Idle Screen Mobile Advertising </li></ul><ul><li>… </li></ul><ul><li>Banners on IPTV </li></ul><ul><li>Spots (pre-roll) on IPTV </li></ul><ul><li>Advertising TV-sites link (on spots) </li></ul><ul><li>Product Placement </li></ul><ul><li>… </li></ul>The product allows to easily create targeted ad-funded services How? Each service that wants to serve ads, just needs to make the GAP protocol calls for ad-request and ad-response
  27. 27. Advertisers Media agencies <ul><li>Juan </li></ul><ul><ul><li>Madrid </li></ul></ul><ul><ul><li>Edad: 30 </li></ul></ul><ul><ul><li>Hombre </li></ul></ul><ul><ul><li>Deportista </li></ul></ul><ul><ul><li>coches </li></ul></ul>reports forecast inventory traffic Frequency capping Profiling/targeting Policies control <ul><li>Maria </li></ul><ul><ul><li>Barcelona </li></ul></ul><ul><ul><li>Edad: 40 </li></ul></ul><ul><ul><li>Mujer </li></ul></ul><ul><ul><li>Deportista </li></ul></ul><ul><ul><li>viajes </li></ul></ul>Control layer Commercial layer channels Adservers 04 Product & Service Architecture: zoom x3 Advertising delivery Delivery control & policies Advertising campaign management Sales management profiling BI
  28. 28. <ul><li>01 Current Telefónica Advertising Offering </li></ul><ul><li>02 Heading to the future Scenarios </li></ul><ul><li>03 Advertising Use case </li></ul><ul><li>04 Product & Services Description </li></ul><ul><li>- Main features description </li></ul><ul><li>- Service Architecture </li></ul><ul><li>05 Conclusions </li></ul>Index
  29. 29. Advertising context and objectives <ul><li>“ To build an ecosystem for advertising business opportunities, using Telefónica assets, by means of a advertising convergence and a suite of tools for advertising management” </li></ul><ul><li>Advertising is clearly key enabler for new revenue growth </li></ul><ul><li>Most of operator services (mobile, IPTV, Inet) could be monetized through advertising </li></ul><ul><li>Operators should take advantage of its key assets, in order to build a differentiate offer, for advertisers , users , publishers and other roles in the advertising business </li></ul><ul><ul><li>Number of users, market share (%) </li></ul></ul><ul><ul><li>Ability to enrich a 3rd party Ad Network </li></ul></ul><ul><ul><li>Knowledge from users (interaction, usage, behaviour, location) </li></ul></ul><ul><ul><li>Convergent network (IP, mobile, etc) </li></ul></ul>9 21 Mobile Advert. Online Advert. +18% Online Advertising (B€) 2008 2013 Global world estimations Goal
  30. 30. © 2008 Telefónica Investigación y Desarrollo, S.A. Unipersonal