Konrad Feldman - Big Data and The Future of Advertising and Marketing - SIC2012

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Konrad Feldman, CEO of Quantcast …

Konrad Feldman, CEO of Quantcast

Big Data and the Future of Advertising and Marketing

For marketers, data has become a critical asset throughout their role. Though not as “in your face” as great content or a creative video, data is the new lifeblood of their function. Not only is data essential for success, but the more data companies have, the more accurately and efficiently they can engage their customers and influence the market. Effective use of data in marketing and advertising will increasingly become a differentiating factor between businesses in this information economy. Konrad will explore the challenges, opportunities and what the future may hold for the use of big data in marketing and advertising.

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  • 1. Big Data and the Future of Advertising & Marketing Konrad Feldman10/30/12 Seattle Interactive Conference 2012. 1
  • 2. Agenda• Introduction• Real-Time Advertising• Big Data in Advertising• Insights & Implications10/30/12 Seattle Interactive Conference 2012. 2
  • 3. Quantcast MEASUREMENT + ADVERTISING10/30/12 Seattle Interactive Conference 2012. 3
  • 4. Measurement• World’s best audience measurement service• Groundbreaking direct measurement & insights• For sites, publishers, networks and advertisers of any size• 100% free for everyone10/30/12 Seattle Interactive Conference 2012. 4
  • 5. 10/30/12 Seattle Interactive Conference 2012. 5
  • 6. Advertising• Dynamic real-time advertising• RTB integrated performance advertising• Brand advertising integrated with premium publishers & networks10/30/12 Seattle Interactive Conference 2012. 6
  • 7. Advertising Landscape DISPLAY ADVERTISING GOES REAL-TIME10/30/12 Seattle Interactive Conference 2012. 7
  • 8. 10/30/12 Seattle Interactive Conference 2012. 8
  • 9. 10/30/12 Seattle Interactive Conference 2012. 9
  • 10. Display Reemerges to Overtake Search Display passes Search10/30/12 Seattle Interactive Conference 2012. 10
  • 11. Real-Time Bidding – Display’s Catalyst.Real-Time rationalizes display. RTB’s rapid rise. Billions 27% RTB % of $5 Display market 23% $4 20% $3 16% $2 10% $1 4% $0 2010 2011 2012 2013 2014 201510/30/12 Seattle Interactive Conference 2012. 11
  • 12. Real-Time Bidding MEDIA IS DATA10/30/12 Seattle Interactive Conference 2012. 12
  • 13. Consumer’s Browser Ad Space Ad Exchange
  • 14. The Exchange sends a Bid Request, with information regarding the individual ad impression, to all Qualifying Exchange Participants.100s – 1000sof Potential Buyers
  • 15. 0:00:00.000 Exchange sends bid request to potential buyers 1 – 1000+ Advertiser Campaigns
  • 16. 0:00:00.025 Exchange sends bid request to potential buyers 1 – 1000+ Advertiser Campaigns
  • 17. What are the interests of this user?0:00:00.0400:00:00.0350:00:00.0300:00:00.0500:00:00.045 Have they been shown impressions before for this campaign? How much do they consume on the Internet? Where is this user in the world? What device is the user browsing on? Who is the publisher and what is the context of this site and page? How has this campaign performed on this site in the past? Is the impression above or below the fold? What’s the time of day for the user?
  • 18. What are the interests of this user?0:00:00.060 Have they been shown impressions before for this campaign? How much do they consume on the Internet? Determine Where is this user in the world? Bid Value for Highest Rated What device is the user browsing on? Who is the publisher and what is the context of this site and page? How has this campaign performed on this site in the past? Is the impression above or below the fold? What’s the time of day for the user?
  • 19. 0:00:00.100 Bidding Race Bids are submitted to the Exchange by all participants. Even if the impression is not desired, $0.00 is bid to indicate buyer’s capability to respond.
  • 20. AGE OF THE MACHINES
  • 21. 10/30/12 Seattle Interactive Conference 2012. 24
  • 22. 10/30/12 Seattle Interactive Conference 2012. 27
  • 23. 10/30/12 Seattle Interactive Conference 2012. 28
  • 24. Supporting Artificial Intelligence BIG DATA TO THE FORE10/30/12 Seattle Interactive Conference 2012. 32
  • 25. Big Data’s Innovation Cycle Data• Big data tends to follow an iterative cycle within Capacity Analysis Capability organizations• These cycles are accelerating Data Use Analysts10/30/12 Seattle Interactive Conference 2012. 33
  • 26. Quantcast Data Processing Architecture Pixel Delivery Realtime Bidding Website Analytics Realtime Decisioning Batch Processing Ad-hoc Queries Realtime Engine Relational MapReduce Sawzall Turbo Storm Hadoop QuantSort RDBMSs MapReduce Keebler Redis Quantcast File System Quantcast owned hardware10/30/12 Seattle Interactive Conference 2012. 34
  • 27. Quantcast Data Processing Architecture Pixel Delivery Realtime Bidding Website Analytics Realtime Decisioning Batch Processing Ad-hoc Queries Realtime Engine Relational MapReduce Sawzall Turbo Storm Hadoop QuantSort RDBMSs MapReduce Keebler Redis Quantcast File System Quantcast owned hardware10/30/12 Seattle Interactive Conference 2012. 35
  • 28. Quantcast Data Processing Architecture Pixel Delivery Realtime Bidding Website Analytics Realtime Decisioning Batch Processing Ad-hoc Queries Realtime Engine Relational MapReduce Sawzall Turbo Storm Hadoop 0.15 QuantSort RDBMSs MapReduce Keebler Redis Quantcast File System Quantcast owned hardware10/30/12 Seattle Interactive Conference 2012. 36
  • 29. Quantcast Data Processing Architecture Pixel Delivery Realtime Bidding Website Analytics Realtime Decisioning Batch Processing Ad-hoc Queries Realtime Engine Relational MapReduce Sawzall Turbo Storm Hadoop QuantSort RDBMSs MapReduce Keebler Redis Quantcast File System Quantcast owned hardware10/30/12 Seattle Interactive Conference 2012. 37
  • 30. Quantcast Data Processing Architecture Pixel Delivery Realtime Bidding Website Analytics Realtime Decisioning Batch Processing Ad-hoc Queries Realtime Engine Relational MapReduce Sawzall Turbo Storm Hadoop QuantSort RDBMSs MapReduce Keebler Redis Quantcast File System Quantcast owned hardware10/30/12 Seattle Interactive Conference 2012. 38
  • 31. Big Data BY THE NUMBERS10/30/12 Seattle Interactive Conference 2012. 39
  • 32. DataReal-Time Ingest 500,000+ / sec. Big Raw DataMassive Transaction Volume 40+ TB / day 750+ Billion / mo.10/30/12 Seattle Interactive Conference 2012. 40
  • 33. ComputersReal Estate 15+ Data Centers MachinesLargest Data Center 1,000+ Servers 40+ Racks10/30/12 Seattle Interactive Conference 2012. 41
  • 34. Data ProcessingDaily Processing Scaling Petabytes per day 30 25 25+ 20 15 Petabytes 10 5 010/30/12 Seattle Interactive Conference 2012. 42
  • 35. People who buys shoes onlineMore likely to visit... More likely affiliation...Site Score Affiliation Scorerunnersworld.com  Democrat halfmarathons.net  Libertarian athlinks.com  Independent runningintheusa.com  Republican flotrack.org running.about.com letsrun.com eatliverun.com 10/30/12 Seattle Interactive Conference 2012. 43
  • 36. Advertising Insights: Clickers vs. Converters• 85% of clicks come from just 8% of internet users• Converters have a distinct profile, which is nothing like Clickers (over-index low income) the clickers Converters (over-index high income)• Most converters don’t click ads. They view them• Clickers are not the target customer10/30/12 Seattle Interactive Conference 2012. 44
  • 37. Traditional Display 50Impressions Bought inAggregate 40Priced as a Whole 30Focus: Cost CPAKey Skill: Negotiation 20 10 - CPM10/30/12 Seattle Interactive Conference 2012. 45
  • 38. Real-Time is Different 50Impressions boughtIndividually 40Priced Individually 30Focus: Value CPAKey skill: Science 20 10 -Example: Travel campaign CPM10/30/12 Seattle Interactive Conference 2012. 46
  • 39. Real-Time is Different 50Impressions boughtIndividually 40Priced Individually 30Focus: Value CPAKey skill: Science 20 10 -Example: Travel campaign CPM10/30/12 Seattle Interactive Conference 2012. 47
  • 40. Consistent Feature of RTB Campaigns Media Subscription Travel 125 4 100 3 75 CPACPA 2 50 1 25 - - CPM CPM 10/30/12 Seattle Interactive Conference 2012. 48
  • 41. Implications for Advertising and Marketing• Data Science over Human Hypothesis – People guide, computers execute – Media buying must change to accommodate• Marketers, BYOD (Bring Your Own Data) – Leverage website and CRM assets• Publishers, get data smart10/30/12 Seattle Interactive Conference 2012. 49
  • 42. Konrad Feldmankfeldman@quantcast.com