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Digital Media... Evolved by Justin Anderson

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Digital Media... Evolved by Justin Anderson

  1. 1. Digital Media… Evolved
  2. 2. 2 A Little About Me Justin Anderson, Client Development Manager, Mediassociates. Justin has almost a decade of experience securing relationships and advising digital strategy for clients such as Save the Children, Bulova Watches, Charter Communications, Enjoy Technology, and others. An expert in DSP, RTB and programmatic ad tech, he has worked in various digital media roles across companies such as Aol, Neustar and Mediassociates.
  3. 3. 3 The evolution of digital advertising DIGITAL ADS LAUNCH AD NETWORKS LAUNCH RTB GOES MAINSTREAM MDC LAUNCES VMM GOOGLE LAUNCHES PAID SEARCH AD EXCHANGES LAUNCH DSPs LAUNCH 1994 1996 2000 2005 2007 2008 2011
  4. 4. 4 In the beginning… digital buying was relatively simple ADVERTISER An advertiser and Publisher negotiate price(CPM) and determine budget to show an ad for a specific period of time. PUBLISHER
  5. 5. 5 But it became significantly more complex PUBLISHERS ADVERTISER Proliferation of publishers. High costs to achieve reach goals. More expensive PUBLISHERS
  6. 6. 6 Opportunities developed • Inventory centralization • Reduced overhead • Scale at lower costs • Automation • Better targeting • Endless data
  7. 7. 7 Ad networks simplified the process PRO: Advertisers: Centralized by; lower cost Publishers: Helped sell inventory at scale CONS: Advertisers: Less transparency and precision with publishers. Publishers: Larger amount of unsold inventory persists AOL Advertising Network Autoblog Huffington Post Moviefone TechCrunch Google Display Network(GDN) The New York Times Cars.com YouTube Wired
  8. 8. 8 Ad exchanges added scale PRO: Advertisers: Greater site flexibility and lower costs Publishers: Sell more ad inventory at scale CONS: Advertisers: Expensive technology needed to manage multiple ad exchanges and reach audience. Publishers: Difficult to maximize inventory value Google (ADX) Exchange OpenX Exchange A Marketplace to make real-time bids for online advertising space
  9. 9. ADVERTISER Audience focused not site focused Centralized inventory access point Access to robust data for smarter targeting Programmatic Ad Network Publishers Ad Exchange 9 Programmatic delivered control Programmatic uses intelligent software (algorithms) to purchase digital advertising
  10. 10. 10 The market is evolving
  11. 11. 11 How Programmatic Works
  12. 12. 12 Types of programmatic buying RTB (Open Auction) Private Exchange (Invite-Only Auction) Programmatic Guaranteed (Premium, Direct)) Definition (IAB) Publisher Advertise r Purchase of ads through real-time auctions Resembles traditional direct sales; differentiated by automation of RFP, IO, ad trafficking Publisher restricts auction to select buyers/advertisers
  13. 13. 13 Programmatic real-time bidding (RTB) in LUMAscape
  14. 14. 14 Main components of programmatic RTB • Traders (trading desks): the people • Demand Side Platform (DSP): trading desk interface • Data Management Platform (DMP): data • Supply Side Platform (SSP): publisher tool
  15. 15. 15 Programmatic RTB Process 15 1. User lands on publisher site Publisher 2. Publisher reaches out to SSP to sell inventor 3. SSP Sends bid request with audience data to DSPs Programmatic 4. Traders send bids to show ad for audience to DSP 5. SSP chooses winner; advertiser pays $0.01 more than competitor (second price auction) Bid $2.00 CPM Winner $1.51 CPM Programmatic Traders Advertisers Bid $1.50 CPM Bid $1.00 CPM
  16. 16. 16 Main components of programmatic RTB • The people (RTB buyers) • An organization that manages programmatic media typically using DSPs and other audience buying technologies • A trader places ads based on target audience, manages bids, placement, target and goals
  17. 17. 17 Evolution of traders • Online ad trading was initially extremely complicated, and required specialized expertise from traders • Technology has evolved, making programmatic buying more intuitive • New Technology empowers agencies and brands to take back control of programmatic buys with in-house traders or search teams
  18. 18. 18 Demand side platform (DSP) explained • Tool for trading desk (agency or advertiser) • A piece of software that allows traders (advertisers and agencies) to buy advertising in real time using an auction based model • Key DSP Benefits for Agencies and Advertisers • Central access to publishers, networks, exchanges, SSPs • Targeting/control options • Unified reporting • Robust optimizations • Brand protection (white and black lists, content and viewability)
  19. 19. 19 DSP control levers Targeting Audience • Demographic • Interests/Behavior • First Party • Third Party • Geography Site • List • Category • Content Budget Bids Day Part Frequency Brandy Safety Control
  20. 20. 20 Data management platform (DMP) • Data tool for agencies, advertisers and publishers • A data warehouse that houses audience cookie information and exports it in a way that’s useful for marketers and publishers • Key DMP Benefits for Agencies and AdvertisersCentral access to publishers, networks, exchanges, SSPs • Storage for valuable first party data • Audience segmentation • Target specific audiences • Measure duplication across DSPs
  21. 21. 21 Tactics and Strategies
  22. 22. 22 The tactics Prospecting • Targeting ads using audience or site data • Find new customers • Learn about an audience Retargeting • Serving an ad to a prospect that visited an advertiser’s site • Convert intent into a sale • Overlay prospecting strategies to build the retargeting pool
  23. 23. 23 Prospecting example • Automotive aftermarket brand • Goal: Drive qualified traffic and revenue Targeting RequirementsCampaign Control ParametersGeo: NY/NJ/CT Day Part: Weekends Demographics: M 18-49 HHI $50k -$150k Budget: $1,000/day Max CPM: $10 Frequency: 4/day Brand Safety: No adult content
  24. 24. 24 Prospecting targets Demographi cs Interest In-Market Target 1 Target 2 Target 3 26-30 Male Single; $75k HHI American muscle cars, Sports 45-50 Male Married; $100k HHI 18-25 Male Single; $50k HHI European sports sedans. Family Safety Import tuners, Turbo chargers, American muscle Performance upgrades Items to make car stand out in suburbia Performance upgrades, flashy items
  25. 25. 25 Prospecting optimizations Metrics Optimizati on Low CPA Low Cost High Volume Low CPA Low Cost Low Volume High CPA High Cost High Volume Pause and reallocate budget Increase daily budget Increase frequency and max CPM bid Target 1 Target 2 Target 3
  26. 26. 26 Prospecting targets Borla home page (no purchase) Retarget with general branding ad Mufflers page (no purchase) Retarget with muffler specific ad First Ad: General branding Purchased headers Search for performance exhaust Second Ad: 10% off purchase (DR) Retarget with Borla exhaust ad Retarget with Borla exhaust ad Last Page Visited Sequential Messaging Upsell Search BasedGeneral
  27. 27. 27 A Fully Programmatic Future
  28. 28. 28 The future is now Digital media is undergoing a revolution. Think Wall Street in the late 90s and early 2000s. Automation is here to stay and will empower brands to go further. New platforms allow advertisers more transparency, flexibility, control, scale, and efficiency across their digital media buys. It’s important to hire the right agency or team to get the most out of your media. The future is here and over 75% of digital display media will be purchased programmatically this year.
  29. 29. Discussion Justin Anderson Manager, Client Development Mediassociates justina@mediassociates.com 203 797 9500 x5236

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