KeynotePresentation:
Usingthedigitalmarketing
ecosystemfordigitalmonetization
ROLAND SIEBELINK COLOMBIA 3.0 CONFERENCE | B...
2/40 @cyberroland #col30
You can participate in this presentation with Twitter
→ PLEASE MENTION @CYBERROLAND AND USE HASHT...
3/40 @cyberroland #col30
Introduction
DIGITAL MONETIZATION/DIGITAL MARKETING | COLOMBIA 3.0
0
Intro | Monetization = Marke...
4/40 @cyberroland #col30
Digital marketing provides the best opportunity for
digital monetization of both paid and free pr...
5/40 @cyberroland #col30
Structure of the presentation
Much of digital
monetization is
digital marketing
Titel
Advertisers...
6/40 @cyberroland #col30
MAJORITY OF MEDIA TIME ONLINE AD SPENDING SHIFTING TO ONLINE
Digital media are already capturing ...
7/40 @cyberroland #col30
Much of Digital Monetization
is Digital Marketing
DIGITAL MONETIZATION/DIGITAL MARKETING | COLOMB...
8/40 @cyberroland #col30
Marketing is at the basis of monetization of any
product—whether digital or not
KEY ELEMENTS OF T...
9/40 @cyberroland #col30
attention
content
ConsumersPublishers/
Retailers
Product
Vendors
paying customers
Product vendors...
10/40 @cyberroland #col30
attention
content
ConsumersProduct
Vendors
paying customers
Digital content producers build audi...
11/40 @cyberroland #col30
Consumer’s attention shifting to online media creates
a massive growth opportunity for digital a...
12/40 @cyberroland #col30
Structure of the Presentation
Digital marketing is
the major digital
monetization
opportunity
Ti...
13/40 @cyberroland #col30
Digital marketing offers advertisers
exceptional power and cost savings
DIGITAL MONETIZATION/DIG...
14/40 @cyberroland #col30
attention
content
ConsumersPublishers/
Retailers
Product
Vendors
paying customers
Product vendor...
15/40 @cyberroland #col30
results
interest
Products sold online are first candidates for digital
monetization—but all produ...
16/40 @cyberroland #col30
top 10
installs
App developers rely on app stores for quality control
and fulfillment but also fo...
17/40 @cyberroland #col30
EXPLOSION OF DIGITAL CONTENT HYPERPRECISE TARGETING
The explosion of digital content properties ...
18/40 @cyberroland #col30
Full measurabilty and instant changes allow for
constant optimization of thev value proposition....
19/40 @cyberroland #col30
Real-time bidding helps advertisers unbundle bulk
audiences and find attractive prospects directl...
20/40 @cyberroland #col30
Amazon
Ebay
Efficient digital distribution platforms enable vendors
of all sizes to compete on a ...
21/40 @cyberroland #col30
Structure of the Presentation
Digital marketing is
the major digital
monetization
opportunity
Ti...
22/40 @cyberroland #col30
Digital represents new monetization
opportunities for content producers
DIGITAL MONETIZATION/DIG...
23/40 @cyberroland #col30
attention
content
ConsumersProduct
Vendors
paying customers
Digital content producers build audi...
24/40 @cyberroland #col30
Content can be monetized if the audience it produces
is an interesting target group to some prod...
25/40 @cyberroland #col30
Search engines and social networks are publishers too,
they just produce their content in a diff...
26/40 @cyberroland #col30
Distributed global niche audiences have increased
the viability of the content “long tail”
Intro...
27/40 @cyberroland #col30
The cost to produce and edit compelling content has
fallen steeply, so that ad space can be adde...
28/40 @cyberroland #col30
Automated sell-side platforms can help publishers
maximize net yields across multiple sales chan...
29/40 @cyberroland #col30
EXAMPLE PUBLISHER-OWNED DATA BUNDLED OR UNBUNDLED
Publishers can also monetize the data they gat...
30/40 @cyberroland #col30
Digital marketing is
the major digital
monetization
opportunity Advertisers can reach
many more ...
31/40 @cyberroland #col30
The Programmatic revolution drives ever
more efficiencies into digital advertising.
DIGITAL MONET...
32/40 @cyberroland #col30
Programmatic advertising drives efficiency even
further in that computers make all buying decisio...
33/40 @cyberroland #col30
Real-time bidding platforms are now auctioning over
30 billion impressions per month in Latin Am...
34/40 @cyberroland #col30
The world’s largest advertisers are recognizing the
superior ROAS of programmatic advertising.
I...
35/40 @cyberroland #col30
Programmatic’s efficiencies are already driving the
majority of non-direct inventory buys in the ...
36/40 @cyberroland #col30
The variety of platforms and service providers makes
it easy for advertisers and publishers to g...
37/40 @cyberroland #col30
Digital marketing is
the major digital
monetization
opportunity Advertisers can reach
many more ...
38/40 @cyberroland #col30
Conclusion
DIGITAL MONETIZATION ECOSYSTEM | COLOMBIA 3.0 2014 ∑
Intro | Monetization = Marketing...
39/40 @cyberroland #col30
Digital marketing is
the major digital
monetization
opportunity Advertisers can reach
many more ...
40/40 @cyberroland #col30
Time to answer questions—on Twitter and in the room
41/40 @cyberroland #col30
Desert analogy
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Keynote: using the digital marketing ecosystem for digital monetization - Roland Siebelink - Rocket Fuel - Colombia 3.0 - 2014-07-31

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This presentation describes the changes taking place in the marketing ecosystem due to the growth of digital marketing in general and of programmatic advertising in particular. It walks through the ecosystem from both an advertiser/goods producer and a publisher/content producer perspective and presents tips for optimum monetization in different business models.

Roland Siebelink is Head of Quality & Productivity at Rocket Fuel and a former winner of the Silicon Valley Founder Showcase. Before Rocket Fuel he was CEO of TopicMarks (acquired by Tagged), Global Head of Strategy at Swiss Life and CEO of Avalu.

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Keynote: using the digital marketing ecosystem for digital monetization - Roland Siebelink - Rocket Fuel - Colombia 3.0 - 2014-07-31

  1. 1. KeynotePresentation: Usingthedigitalmarketing ecosystemfordigitalmonetization ROLAND SIEBELINK COLOMBIA 3.0 CONFERENCE | BOGOTÁ | JULY 30TH 2014
  2. 2. 2/40 @cyberroland #col30 You can participate in this presentation with Twitter → PLEASE MENTION @CYBERROLAND AND USE HASHTAG #COL30
  3. 3. 3/40 @cyberroland #col30 Introduction DIGITAL MONETIZATION/DIGITAL MARKETING | COLOMBIA 3.0 0 Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
  4. 4. 4/40 @cyberroland #col30 Digital marketing provides the best opportunity for digital monetization of both paid and free products Large opportunity in digital marketing Buying/ selling automation Cheaper content production Shift in viewing habits SUMMARY OF THE PRESENTATION Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
  5. 5. 5/40 @cyberroland #col30 Structure of the presentation Much of digital monetization is digital marketing Titel Advertisers can reach many more prospects more efficiently Publishers can sell much more ad space more efficiently Programmatic lets innovative players leapfrog their competition Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
  6. 6. 6/40 @cyberroland #col30 MAJORITY OF MEDIA TIME ONLINE AD SPENDING SHIFTING TO ONLINE Digital media are already capturing the largest share of user attention, and ad spending is catching up. Media hours/consumer/day, globally 38.6% 29.2% 16.6% 8.5% 7.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 2012 2013 2014 2015 2016 Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ Other Radio Print Online TV
  7. 7. 7/40 @cyberroland #col30 Much of Digital Monetization is Digital Marketing DIGITAL MONETIZATION/DIGITAL MARKETING | COLOMBIA 3.0 1 Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
  8. 8. 8/40 @cyberroland #col30 Marketing is at the basis of monetization of any product—whether digital or not KEY ELEMENTS OF THE MARKETING ECOSYSTEM Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ ConsumersProduct Vendors Publishers/ Retailers content attention ad spend audiences sales proposition paying customers
  9. 9. 9/40 @cyberroland #col30 attention content ConsumersPublishers/ Retailers Product Vendors paying customers Product vendors use advertising to show their sales proposition to more prospective paying customers. KEY ELEMENTS OF THE MARKETING ECOSYSTEM: PRODUCT VENDOR PERSPECTIVE Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ ad spend audiences sales proposition
  10. 10. 10/40 @cyberroland #col30 attention content ConsumersProduct Vendors paying customers Digital content producers build audiences with free content to earn income from digital advertising. KEY ELEMENTS OF THE MARKETING ECOSYSTEM: PUBLISHER PERSPECTIVE Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ ad spend audiences sales proposition Publishers/ Retailers
  11. 11. 11/40 @cyberroland #col30 Consumer’s attention shifting to online media creates a massive growth opportunity for digital advertising 0% 20% 40% 60% 80% 100% % of ad spending % of consumer attention TV 38% TV 23% Online 28% Online 54% Print 17% Print 5% Radio 9% Radio 11% Other 7% Other 7% CONSUMER MEDIA ATTENTION SHARE VS SHARE OF ADVERTISING SPENDING Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
  12. 12. 12/40 @cyberroland #col30 Structure of the Presentation Digital marketing is the major digital monetization opportunity Titel Digital Marketing For Advertisers Digital Marketing for Content Producers The Programmatic Momentum Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
  13. 13. 13/40 @cyberroland #col30 Digital marketing offers advertisers exceptional power and cost savings DIGITAL MONETIZATION/DIGITAL MARKETING | COLOMBIA 3.0 2 Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
  14. 14. 14/40 @cyberroland #col30 attention content ConsumersPublishers/ Retailers Product Vendors paying customers Product vendors use advertising to show their sales proposition to more prospective paying customers. KEY ELEMENTS OF THE MARKETING ECOSYSTEM: PRODUCT VENDOR PERSPECTIVE Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ ad spend audiences sales proposition
  15. 15. 15/40 @cyberroland #col30 results interest Products sold online are first candidates for digital monetization—but all product vendors can benefit. PRODUCT VENDOR PERSPECTIVE, EXAMPLE #1: ONLINE RETAIL BANK Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ ConsumersOnline Bank search engine ad spend clicks “open an account” funds flowing in
  16. 16. 16/40 @cyberroland #col30 top 10 installs App developers rely on app stores for quality control and fulfillment but also for marketing their product. PRODUCT VENDOR PERSPECTIVE, EXAMPLE #2: MOBILE GAME DEVELOPER Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ ConsumersGame Developerr App store fees fulfillment “no more boredom” revenues
  17. 17. 17/40 @cyberroland #col30 EXPLOSION OF DIGITAL CONTENT HYPERPRECISE TARGETING The explosion of digital content properties enables advertising precisely aimed at ideal prospects. Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ 100 million Web sites and apps 60 billion daily individual ad spaces worldwide 1 billion anonymized consumer profiles worldwide Geographic Psychographics Lifestyle Interests/Hobbies Past Purchase Social InfluencersIn-Market Demographic Channel Device DMA-City-Zip Browser Ad Size Time of DayLanguage Context
  18. 18. 18/40 @cyberroland #col30 Full measurabilty and instant changes allow for constant optimization of thev value proposition. Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
  19. 19. 19/40 @cyberroland #col30 Real-time bidding helps advertisers unbundle bulk audiences and find attractive prospects directly. Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ DEMOGRAPHIC A BEHAVIORAL SEGMENT B CONTENT CATEGORY C Bulk buying in advance Data Campaign target Real-time bid requests Individual buying in real time
  20. 20. 20/40 @cyberroland #col30 Amazon Ebay Efficient digital distribution platforms enable vendors of all sizes to compete on a level playing field. DISTRIBUTION PLATFORMS OFFER VENDORS MORE MONETIZATION OPTIONS Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ one shop loyalty ConsumersProduct Vendor fees fulfillment “delivered to you” revenues
  21. 21. 21/40 @cyberroland #col30 Structure of the Presentation Digital marketing is the major digital monetization opportunity Titel Advertisers can reach many more prospects more efficiently Digital Marketing for Content Producers The Programmatic Momentum Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
  22. 22. 22/40 @cyberroland #col30 Digital represents new monetization opportunities for content producers DIGITAL MONETIZATION/DIGITAL MARKETING | COLOMBIA 3.0 3 Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
  23. 23. 23/40 @cyberroland #col30 attention content ConsumersProduct Vendors paying customers Digital content producers build audiences with free content to earn income from digital advertising. KEY ELEMENTS OF THE MARKETING ECOSYSTEM: PUBLISHER PERSPECTIVE Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ ad spend audiences sales proposition Publishers/ Retailers
  24. 24. 24/40 @cyberroland #col30 Content can be monetized if the audience it produces is an interesting target group to some product vendor. PUBLISHER PERSPECTIVE EXAMPLE #1: BLOG AIMED AT FREQUENT TRAVELLERS Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ TravellersAirlines Hotels blog posts attention referral fees audience attract best prospects increased spending Blogger
  25. 25. 25/40 @cyberroland #col30 Search engines and social networks are publishers too, they just produce their content in a different way. PUBLISHER PERSPECTIVE EXAMPLE #2: SOCIAL NETWORK Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ ConsumersAdver- tisers social content engagement ad spending views/clicks brand exposure Increased preference Social network
  26. 26. 26/40 @cyberroland #col30 Distributed global niche audiences have increased the viability of the content “long tail” Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ 100 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 # of audiences Averageaudiencesize 1970 cost 2010 cost
  27. 27. 27/40 @cyberroland #col30 The cost to produce and edit compelling content has fallen steeply, so that ad space can be added cheaply. Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ Cheap tools Offshore producers “Work for reference” Cheap to add content Content/ ad space explosion
  28. 28. 28/40 @cyberroland #col30 Automated sell-side platforms can help publishers maximize net yields across multiple sales channels. Direct premium sale No → Yes Network sale No → Yes On-exchange RTB sale Private Exchange Open Exchange PUBLISHERS’ BEST PRACTICE: REAL-TIME MULTI-CHANNEL AD SALES STRATEGY Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ Bulk of sales without in-house sales force 50 ms 100 ms 150 ms 200 ms
  29. 29. 29/40 @cyberroland #col30 EXAMPLE PUBLISHER-OWNED DATA BUNDLED OR UNBUNDLED Publishers can also monetize the data they gather on their audiences—bundled with ad space or separate. Custom targeted audiences Sell segments to data brokers Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ Con- sumers Gender Income Kids in household Behavior Coupons Contests Site searches Cam- paigns Past successes Past converters
  30. 30. 30/40 @cyberroland #col30 Digital marketing is the major digital monetization opportunity Advertisers can reach many more prospects more efficiently Structure of the Presentation Titel Publishers can sell much more ad space more efficiently The Programmatic Momentum Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
  31. 31. 31/40 @cyberroland #col30 The Programmatic revolution drives ever more efficiencies into digital advertising. DIGITAL MONETIZATION/DIGITAL MARKETING | COLOMBIA 3.0 4 Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
  32. 32. 32/40 @cyberroland #col30 Programmatic advertising drives efficiency even further in that computers make all buying decisions. CONTRAST BETWEEN TRADITIONAL ADVERTISING AND PROGRAMMATIC Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ Programmatic buying Bidding on individual ad impressions In real time For the opportunity… To show one specific message To one specific consumer In one specific context Traditional buying Buying collective ad placements In advance For the opportunity… To show one generic message To a group of consumers Along a generic content category
  33. 33. 33/40 @cyberroland #col30 Real-time bidding platforms are now auctioning over 30 billion impressions per month in Latin America Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ Programmatic reach in Central America: 56% Monthly unique viewers: 250 million Monthly bid requests: 30 billion Programmatic Reach: Exchange Partners Programmatic reach in South America: 64%
  34. 34. 34/40 @cyberroland #col30 The world’s largest advertisers are recognizing the superior ROAS of programmatic advertising. Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ Advertising Age Leading National Advertisers 80+/100 Fortune 100 Companies55+/100 Represents advertisers and brands who have spent with Rocket Fuel trailing 12mo ending 3/30/2014 FINANCE RETAIL TRAVEL TELECOM / CABLE AUTO DINING / OTHEREDUCATION CPGENTERTAINMENT TECHNOLOGYGOVERNMENT/NONPROFIT HEALTH & BEAUTY AGENCIES $1M+ lifetime customers96+
  35. 35. 35/40 @cyberroland #col30 Programmatic’s efficiencies are already driving the majority of non-direct inventory buys in the US. U.S. RTB-BASED INDIRECT AD SALES AS A SHARE OF TOTAL INDIRECT AD SALES Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ 12% $396 M 29% $986 M 43% $1.95 B 57% $3.36 B 68% $4.56 B 76% $5.97 B 78% $7.42 B >80% $8.49 B 10% 20% 30% 40% 50% 60% 70% 80% 2010 2011 2012 2013 2014 2015 2016 2017
  36. 36. 36/40 @cyberroland #col30 The variety of platforms and service providers makes it easy for advertisers and publishers to get started. KEY PLAYERS IN THE PROGRAMMATIC ADVERTISING ECOSYSTEM Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑ Advertisers (Digital) Advertising Agencies Agency Trading Desks Demand Side Platforms Ad Exchanges Sales Side Platforms Ad Networks Publishers Consumers
  37. 37. 37/40 @cyberroland #col30 Digital marketing is the major digital monetization opportunity Advertisers can reach many more prospects more efficiently Structure of the Presentation Titel Publishers can sell much more ad space more efficiently Programmatic lets innovative players leapfrog their competition Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
  38. 38. 38/40 @cyberroland #col30 Conclusion DIGITAL MONETIZATION ECOSYSTEM | COLOMBIA 3.0 2014 ∑ Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
  39. 39. 39/40 @cyberroland #col30 Digital marketing is the major digital monetization opportunity Advertisers can reach many more prospects more efficiently Conclusion of the Presentation Titel Publishers can sell much more ad space more efficiently Programmatic lets innovative players leapfrog their competition Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
  40. 40. 40/40 @cyberroland #col30 Time to answer questions—on Twitter and in the room
  41. 41. 41/40 @cyberroland #col30 Desert analogy
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