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RTB Update 2: Richard Foster, Krux

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RTB Update 2: Richard Foster, Krux

  1. 1. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution How can Publishers and Advertisers work with data and DMP's Danish RTB Update Copenhagen, August 28 2013
  2. 2. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Discussion topics 2  Krux approach to Big Data  What can Krux do for Publishers  What can Krux do for Advertisers  How does Krux integrate with SSP’s & DSP’s  Thoughts on Data Ownership
  3. 3. Krux approach to Big Data
  4. 4. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Audience buying is mainstream – marketers now prioritize audience above placement, price, and inventory guarantees 4 Source: Forrester June 2011 0% 10% 20% 30% 40% 50% Targe ng Capabili es Target Audience Reach Low Prices Premium Placements 50% 50% 30% 20% What is the most important thing you look for in a publisher partner for your display buys?
  5. 5. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital $- $2,500 $5,000 $7,500 $10,000 2010 2011 2012 2013 2014 2015 2016 RTB - Indirect RTB - Direct RTB - Mobile The market’s shift to audience-based advertising is also catalyzing spend shift to ‘programmatic’ RTB channels 5 Source: IDC, October 2012  RTB spend is going from zero to $5B in less than five years.  RTB-direct is on pace to hit $1B in 2016, 13% of RTB activity overall.  Through private exchanges (e.g., NBC UAP, WSJ AudEx), publishers are increasingly using programmatic channels for direct sales.
  6. 6. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Krux brings to bear the background, focus, and technology required to help our clients thrive in a data-driven world Pioneers in digital media technology and monetization Unmatched experience with digital media leaders Unparalleled platform breadth and flexibility Monetize ManageProtect
  7. 7. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Krux’s cloud-based DMP helps companies deliver more relevant, more valuable advertising, content, and commerce 7  Protect: We help detect and prevent theft of consumer cookie data  Manage: We help make audience data actionable, web pages faster, and website management more efficient  Monetize: We help clients representing >720M users worldwide create: - more valuable advertising - more relevant content - more effective commerce
  8. 8. What can Krux do for Publishers?
  9. 9. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Media owners are feeling pressure from all sides as the entire market becomes data-driven and audience-aware 9 Enabling arbitrage & eroding value Bypassing direct sales channels Agencies, Marketers, DSPs Increasing focus on privacy Differentiated products Competing Publishers
  10. 10. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Given fundamental market shifts, leading sites must harness audience data to remain competitive and grow their business 10 Insight Mitigate data & revenue risks Analysis Refine product & sales strategy Action Pursue new market opportunities Investment in data protection solutions Protectionist approach to partner Ts & Cs Aligning business practice with privacy policy DMP investment Organize/activate 1st, 2nd and 3rd party data assets Pursue audience-aware product and sales strategy Programmatic direct sales RTB ‘reach extension’ Private marketplaces Data-only sales Content targeting
  11. 11. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Media owners have an enormous amount of largely untapped consumer insight at their fingertips 11 Users’ content affinity, interests, and intent. Select 3rd-party data sources to enrich 1st-party insights Referral URL and keyword, exposing where users came from and why Subscription and registration information Interactions and engagement with ads and content Social insights – likes and shares
  12. 12. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Harnessing the power of that data leads to improved pricing, increased sell-through, and revenue growth 12 EXTEND your audience reach across the web GROW your audience & deepen engagement Use data to ENHANCE existing products EXPOSE actionable insights about your audience Use data to CREATE new products and packages
  13. 13. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Publisher benefits from using a DMP 13 Improve CPMs on your direct sold inventory Create additional ad inventory with audience extension Increase CPMs on programmatic-sold inventory Create smarter ad products: include re-targeting, engagement Grow e-commerce revenues
  14. 14. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Impact Example: A social content publisher uses Krux to open new spend categories and deliver more valuable advertising experiences 14 Situation  No reliable, efficient process for audience discovery and segmentation  No holistic data and targeting strategy - Discouraged sales team adoption of targeting - Limited data-driven revenue opportunity 728x90 300x250 300x600 Baseline eCPM eCPM with Krux 220% lift 269% lift 93% lift Response  Consolidated 1st party data and energized audience assets with 3rd party data sources  Created ‘audience-aware’ product strategy - Smarter, better performing products - New products to open non-endemic ad spend - Stronger user experieinces
  15. 15. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Example: A large magazine publisher uses Krux to extend a key audience segment across the rest of their inventory Situation  A multi-site publisher has a valuable 1st party segment that always sells out Response  Krux DMP used for segmentation and targeting to access on other sites in their network Impact  Smarter, better performing products – decreasing the publishers’ reliance on remnant channels  New offerings grew previously limited inventory base 15
  16. 16. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Example: A woman’s health & beauty site uses Krux to extend a key audience segment across off-site exchange inventory 16 Situation  Publisher has valuable 1st party audience that sells out on the originating site Response  Krux DMP used for segmentation/targeting to access this audience elsewhere  Krux identified & targeted those users as they traveled across other quality sites Impact  The publisher has created an ‘audience-aware’ product strategy - Increasing the publisher’s available inventory of hair care users - New offerings grew a previously limited inventory base
  17. 17. What can Krux do for Advertisers
  18. 18. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Many Publishers are Advertisers 18  Many Krux clients operate branding and direct response campaigns - Prospecting: attract new subscribers to paywall products - Retention: to target renewing or lapsed subscribers - Re-target users abandoning shopping baskets on e-commerce areas of site  Previously, these campaigns may have been outsourced - Internal marketing teams starting to use DMP capability to combine customer data sets with precise audience targeting - On-site and increasingly, across Ad Exchanges - Krux can create safe-site lists for targeting using the clients own audiences browsing habits
  19. 19. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Advertiser benefits of using a DMP 19 Increased insight into the audiences consuming your sites Integrate all data sources to build a cohesive consumer experience Re-targeting high value audiences with audience extension Retain control over data assets and share only the data you want Optimise site content, manage latency issues and compliance programs
  20. 20. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital20 Action The more an Advertiser knows about how users interact with its brands the better positioned they are for product line growth  Better understand their usage of your brands across mediums So you can…  Tailor campaign advertisements to each segment of users  More specifically target offers for renewals, heavy site users, cross brand promotions etc…  Expand known data points about registered users/subscribers  Customize your product offerings based on your most loyal users actions  Merge users’ mobile and online behavior with their offline database record
  21. 21. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital First-party consumer and third party relationships provide many sources of, and uses for, audience data 21 Third-Party Data Providers Privacy Tools Privacy Settings Registration & Purchase Web & Mobile Activity Site Analytics/ MVT Data Elements Publishers, Partners CRM/Loyalty programs Re-Targeting solutions DSP’s/Trading Desks Content Targeting Actionable Segments CMS
  22. 22. How does Krux integrate with SSP’s and DSP’s
  23. 23. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital The Krux platform allows a web-site operator to capture, control, and connect 1st, 2nd, and 3rd party data to create audience value 23 Consumers Krux Platform Audience Data Elements Web Analytics 3rd party Data Agency Data Content and Ad Servers Offline/CRM Registration Data Data Transfer Files Segments in Key Value Pairs Ad Selection Audience Data Elements Page and user data Client Web Site
  24. 24. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Interchange Extension Interchange O&O Interchange Marketing Krux Interchange – flexible market access to match to clients’ business practices, revenue goals, and privacy policy 24 Interchange Connect Sharing data with trusted partners Targeting first- party media Targeting first- party commerce and marketing Exchange-based media buying CMSCRM Subs/R eg
  25. 25. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Integration Use Cases 25  There are 2 ways in which the Krux DMP can integrate the audience segments managed in Krux into an SSP or DSP:  Client-side: in this mode of integration, the SSP/DSP provides Krux with a datasync pixel using Krux SuperTag  Server-to-Server: in this mode of integration, Krux and SSP match users using a Cookie-Matching process and then Krux provides a data file via SFTP or Amazon S3  Bi-directional relationship: Krux ingests ‘raw’ ad server impression log files via API
  26. 26. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Example SSP integration: passing user segment information to Rubicon and ad serving logs to Krux 26 Users Krux Platform Partner Sites (no Krux Control Tag) Ad Serving Logs for Yield Analytics Ad Selection Page and user data Partner Sites (with Krux Control Tag) Page and user data  Krux Control Tag fires on site - Reads/assigns cookie - Loads core code - Fires SuperTag tags - Collects data - Reads context information - Assigns context categories  Krux pixel fires to send data to Platform Segment Membership, User ID Ad Selection  Network tag fires in partner ad server  Krux Control Tag fires from network tag - Reads/assigns cookie - Loads core code - Fires SuperTag tags - Collects data - Reads context information - Assigns context categories  Krux pixel fires to send data to Platform
  27. 27. Thoughts on Data Ownership
  28. 28. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Who owns the data  There is no single, simple answer - A possible definition: ‘Ownership’ can be attributed based on how the data is being used - Qualifying statement: the ability to use that data does not necessarily imply ownership!  Example 1: Advertiser re-targeting: - Advertiser-owned data - Media owner is only providing inventory/safe environment for campaign delivery
  29. 29. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Who owns the data  Example 2: Publisher trading data in private marketplace - Publisher first party data being bundled with ad inventory and sold in a direct deal - Agency can use the data (possibly lots of times!) - Publisher needs to have the right DMP in place to retain control - And, the Publishers needs to have a data strategy:  Segments with built in expiry date (e.g. in market for credit card)
  30. 30. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Who owns the data  Example 3: Third-party data provider - Aggregated first party data - Value is created in the aggregation so the Data Provider is the owner  Looking forward: the adoption of DMP’s by media owners and advertisers may level the playing field for illicit data collection/harvesting - Uses cases/strategy will be key to defining value & ownership
  31. 31. Thank you for listening 31
  32. 32. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution Any questions? Richard Foster richard@krux.com @richardpfoster Skype: richardpfoster
  33. 33. © 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital Krux’s distinguishes itself from the competition in six key ways 33 Flexibility Synthesis Real-time Big Data Big Analytics Security  Highest degree of flexibility in defining and operationalizing consumer segments  Client-driven taxonomies and event-based framework for measuring engagement  Extract-Once, Load-Everywhere model brings catacombed datasets online in days  Schema-on-read approach ingests data in its preexisting structure (or lack thereof)  Only provider with real-time execution, segmenting users in-session in <75 ms  True real-time decisioning informed by client-specific business rules and use cases  Ground-up integration of Big Data technologies (Hadoop, Cassandra, Hive, Redis)  Architected to support data volume/velocity/variety for the emerging consumer web  Classification/clustering/discovery to deliver right time/right place insight and action  Exposing what consumers want even when clients don’t know what questions to ask  Only provider to deliver first-party web data security (and a pioneer in the field)  Only provider to encrypt via dynamic, transient, symmetric public-private keys  Only provider with security model premised on data segregation not data merger

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