Create an audience obsessed digital media buying_practice


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Create an audience obsessed digital media buying_practice

  1. 1. For Interactive Marketing Professionals August 15, 2012Create An Audience-Obsessed Digital Media Buying PracticeExecutive Overview: The Digital Media Buying Playbookby Joanna O’Connell and Emily Rileywith Michael Greene and Elizabeth KomarWhy Read This ReportDigital media buying is undergoing seismic change. Where there were once legions of junior staffmanaging relationship-based buys, there are now sophisticated real-time technologies. Participants acrossall parts of the value chain are affected, from media buyers and agencies to vendors and publishers. Thedigital media buying playbook helps marketers and media buyers understand the fundamental shifts thatare occurring and gives the reader a strategic road map and best practices for becoming an audience-centric, multichannel, media-buying maven. This report includes how to get the most out of data, buyingplatforms, and attribution measurement.The Always Addressable Customer Requires Better MarketingMarketers are faced with a new digitally connected customer, the always addressable customer. This groupalready represents more than one-third of US and Western European online adults as well as two-thirds ofadults under the age of 40.1 These customers expect interactive media to work well all the time and on alldevices. In 2012, Forrester forecasts that US marketers will spend $12.9 billion on display marketing acrossmobile, tablets, and PCs, while Western Europe will spend €4.8 billion.2 In addition, spending will increasewith a 20% compound annual growth rate (CAGR) over the next four years.3 Yet throwing more moneyat fragmented, untargeted, labor-intensive digital media is futile. Always addressable customers demandsignificantly better experiences now. They also have the power to abandon you if you don’t provide themwith what they want or need. They: ■ Ignore traditional marketing. Your customers don’t pay as much attention to your expensive TV ads as they used to. In fact, 85% of US online adults who own and personally use a DVR or a DVR service regularly fast-forward through commercials when watching recorded shows on their DVRs.4 ■ Use digital as the center of their universe. No other media is as ubiquitous or powerful as digital media, and always addressable customers access it all day long. Thirty-eight percent of US online adults access the Internet from multiple physical locations multiple times a day, and 83% of US online adults who recently purchased a product online began their research on a digital channel.5 ■ Expect relevant messages. Always addressable customers are comfortable sharing data to get what they want. This is especially true among younger consumers: 76% of adults ages 18 to 24 will share their data if they feel clearly rewarded as a result.6 Headquarters Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA, 02140 USA Tel: +1 617.613.6000 • Fax: +1 617.613.5000 •
  2. 2. For Interactive Marketing ProfessionalsCreate An Audience-Obsessed Digital Media Buying Practice 2Better Digital Media Buying Is Possible Now And Required For The FutureAlways addressable customers expect highly relevant marketing across digital channels, and the toolsand tactics to provide it for them are starting to gain traction in the market. From real-time bidding indisplay advertising to cross-channel data management and attribution platforms, marketers are startingto have media buying options that allow for better consumer experiences and more efficient marketingspending. As of May 2012, 24% of respondents to Forrester’s interactive marketing executive panelsurvey indicated they use a demand-side platform (DSP) to execute their digital media buys in real time,and 20% of the panel plan to switch to real-time bidding in the next 12 months.7 Marketers are alsoincreasingly focused on the consumer’s experience once an ad is served — 24% of the panel is currentlyusing dynamic creative optimization, and, over the next 12 months, 38% plan to start. To competeeffectively, marketers must do more than try new tools: They must overhaul their digital media buyingpractice to become audience-focused and analysis driven. Says HP’s senior manager of digital marketing,Mabelle Artz, , about the company’s recent deployment of a DSP for better user segmentation andtargeting, “At HP, we should be focusing on our customers — how do we make sure we’re doing theright things for them?” When building your new media buying practices, you must: ■ Be data and analysis-obsessed. To reach the always addressable customer, you must prepare to work with significantly more data across more touchpoints in the near future by building a continuous loop between planning, analysis, and optimization. You must merge customer databases, focus on audience buying, and enrich analysis to manage budgets and messaging more flexibly. Companies such as eBay and Banco Santandar have data analysis and measurement capabilities to surpass their competition. They use data to offer more relevant messaging and more profitable solutions to customers. Technologies such as data management platforms, attribution modeling vendors, and even IBM’s Watson computer are up to the task, but many firms must add scale and skills to use them well. As Dennis Shirokov, marketing director of FedEx, explains it, “It’s the job of the interactive marketer to insure we have one common truth on the data.” ■ Push new buying strategies to the fore. Marketers must create new strategies and processes to take advantage of broader data sets and more flexible buying capabilities. Marketers can take actions such as using campaign data to determine creative messaging, creating discreet audience targets on the fly, and shifting media dollars seamlessly across partners in real time based on algorithms, not just media relationships. These practices can’t simply be added as a line item to a media plan. A director of marketing at a large online travel company told us: “It’s important to have people who understand how the different components fit together. If you’re doing a brand campaign, what can you do with the audience you’ve reached through a brand buy? Like messaging sequencing, or following up through programmatic buying.”© 2012, Forrester Research, Inc. Reproduction Prohibited August 15, 2012
  3. 3. For Interactive Marketing ProfessionalsCreate An Audience-Obsessed Digital Media Buying Practice 3 ■ Understand channel interplay. Always addressable customers are, by definition, moving across channels on a daily basis, so marketers must work similarly to message to them seamlessly. Soon, channels including video, social, mobile, and even TV will have viable exchanges where marketers can target key segments with broad scale. Marketers must think about the implications of cross-channel media strategies now, for they will affect agency relationships and vendor partnerships as much as they will affect strategic planning and budgeting. Aaron Fetters, director of the Insights Solutions Center at Kellogg, told us, “The future is all about cross-media effectiveness, really understanding how to best plan across media.”Create an Audience-Focused Media Buying PowerhouseYou must rethink your media buying practice by centralizing data and analysis and streamlining technology around clear goals. Buying digital media is a messy business on all fronts — from complex paperwork to convoluted optimization processes to antiquated measurement. Many digital marketers work with anywhere from 20 to 50 partners for an average media plan. Simply adding a few more vendors to your “stack” will only decrease efficiency. With Forrester’s playbook, you will follow the path to more insightful, audience-focused media buying, where you control the technology rather than letting it control you. During a recent panel discussion, Emily Scott, director of marketing at Kayak, confirmed that it’s all about creating a single view using technology:“I see a big trend toward pushing as much as possible through a central platform to enable real communication across channels.” Our playbook will help you (see Figure 1)8: 1. Discover: Learn how new media buying offerings will change your media buying practice. See how marketers will shift from people-heavy media buying processes to more effective data and technology platforms that can target people and place media in real time. Determine if your investment is on par with those of peers and how to make the business case for technologies such as demand-side platforms and data management platforms as well as tactics such as attribution measurement. 2. Plan: Build your new digital media buying strategy. You have your own audience, mix of brand and performance goals, partnerships, and campaign plans. This phase will help you personalize your strategy based on these attributes. Assess your media buying maturity, determine how changes in your buying model could improve your performance, and build a road map to advance. 3. Act: Create a killer digital media buying practice. Forrester helps you build the right skills, process, and partnerships to create a fluid practice that is channel-agnostic and built around data. Learn how to hire and train to build an analysis culture, how to change planning processes to become more flexible, and determine which partners will get you to your goals with our DSP and attribution Forrester Wave™ evaluations.© 2012, Forrester Research, Inc. Reproduction Prohibited August 15, 2012
  4. 4. For Interactive Marketing ProfessionalsCreate An Audience-Obsessed Digital Media Buying Practice 4 4. Optimize: Position yourself for cross-channel buying capabilities. Learn what to measure and how to benchmark your progress to prepare for future advancements in technology across channels. Learn how to create measurement strategies that account for all types of spending, data targeting that uses new types of inputs, and benchmarks that ensure you stay abreast of new developments. What you learn from display-based buying initiatives will propel you forward as other channels such as video and mobile become increasingly enabled with audience targeting and real-time bidding.Figure 1 The Digital Media Buying Playbook DISCOVER PLAN ACT OPTIMIZE Self- Performance Vision Organization Assessment Management Landscape Strategic Plan Processes Benchmarks Tools And Continuous Business Road Map Technology Improvement Case78841 Source: Forrester Research, Inc.Supplemental MaterialThe Q2 2012 Global Interactive Marketing Executive Panel Online Survey was fielded to 232interactive marketing executives; however, only a portion of survey results are illustrated in thisreport. For quality assurance, we screened respondents to ensure they met minimum standards interms of job responsibilities and budget insight.Forrester fielded the survey from May 2012 to June 2012. Respondent incentives included a summaryof the survey results. Exact sample sizes are provided in this report on a question-by-question basis.This survey used a self-selected group of respondents and is therefore not random. This data is notguaranteed to be representative of the population, and, unless otherwise noted, statistical data isintended to be used for descriptive and not inferential purposes. While nonrandom, the survey isstill a valuable tool for understanding where marketers are today and where the industry is headed.© 2012, Forrester Research, Inc. Reproduction Prohibited August 15, 2012
  5. 5. For Interactive Marketing ProfessionalsCreate An Audience-Obsessed Digital Media Buying Practice 5Endnotes1 Forrester defines the always addressable customer as someone who “owns and personally uses at least three connected devices, accesses the Internet multiple times per day, and goes online from multiple physical locations, at least one of which is ‘on the go.’” See the August 6, 2012, “The Always Addressable Customer” report.2 For more information on the forecasted spend across digital channels, see the August 24, 2011, “US Interactive Marketing Forecast, 2011 To 2016” report. For more information on the forecasted spend in Western European online display advertising, see the December 13, 2011, “Western European Online Display Advertising Forecast, 2011 To 2016” report.3 For more information on the forecasted spend across digital channels, see the August 24, 2011, “US Interactive Marketing Forecast, 2011 To 2016” report.4 Source: North American Technographics® Online Benchmark Recontact Survey, Q3 2011 (US, Canada).5 In 2010, we entered the era of pervasive interactivity, in which more people access the Internet more frequently from more devices in more places. This trend has reached a tipping point, causing the emergence of a new customer who is "always addressable." Whats more — though weve only recently reached this tipping point, these customers already make up more than one-third of all US online adults. Marketers cannot ignore this trend if they want to stay relevant. See the August 6, 2012, “The Always Addressable Customer” report. Source: North American Technographics Retail Online Benchmark Recontact Survey, Q3 2011 (US).6 For more information on consumers’ digital marketing privacy concerns and Forrester’s position on assuaging them, see the May 8, 2012, “How To Defuse Digital Marketing Privacy Concerns” report.7 Source: Q2 2012 Global Interactive Marketing Executive Panel Online Survey.8 Please refer back to the online document to see the associated reports in the playbook. See the August 15, 2012, “Create An Audience-Obsessed Digital Media Buying Practice” report.© 2012, Forrester Research, Inc. Reproduction Prohibited August 15, 2012