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How Do You Buy?

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What can we learn by sharing basic programmatic media shopping skills? Two programmatic veterans compare and contrast their internal processes for organizing ad groups, devising testing and optimization protocols. How do different organizations execute their buys, and what can they learn from one another?

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How Do You Buy?

  1. 1. Privileged & Confidential Programmatic at TechStyle: What Do We Value? Jarod May: Global Fashion Brands + Media Chief of Staff, Head of Programmatic August 23rd, 2019: Olympic Valley, CA
  2. 2. Confidential 2 Agenda • What is TechStyle Fashion Group? • What is TechStyle’s Programmatic goal? • Two evaluating factors? • Programmatic launch strategy? • Reminder: Programmatic is complex
  3. 3. Confidential 3 TechStyle Fashion Group? A. Clothes are designed digitally? B. Pics of technology on clothes? C. Various Fashion Brands, E-Commerce? D. All of the above!
  4. 4. Confidential 4 TechStyle Fashion Group? C. Various Fashion Brands, E-Commerce?
  5. 5. Confidential 5 TechStyle Fashion Group? Founded in 2010. 5 Separate, E-Commerce Subscriptions. Sold in 10+ Countries
  6. 6. Confidential 6 TechStyle Fashion Group? 5 Million Monthly Members Shoes + Apparel $1 Billion in Sales (2020)
  7. 7. Confidential 7 What about the TechStyle Media + Acquisition Team structure?
  8. 8. Confidential 8 TFG Media + Acquisition Structure? Our In-House Media + Acquisition Rockstars * *66% of Team approximately
  9. 9. Confidential 9 TFG Media + Acquisition Structure?TFGM+A Fabletics JustFab ShoeDazzle Data Analytics Creative + Design Media BuyingFabKids Savage X Fenty ‘In-House Media Agency’ • Shared Service across all 5 Brands – based across LA, SF, and Barcelona • Separate Creative Teams and Acquisition Managers within Media team to support individual brand’s needs • ~$250mil in spend • Maintain all client -> vendor relationships directly. Execute buys internally
  10. 10. Confidential 10 TechStyle Programmatic Goal? Average 1st Order Value? Lifetime Value? Cost Per Acquisition? Cost Per Page Land? Cost Per Click? Cost Per Lead? Cost Per Viewable Impression? Viewability?
  11. 11. Confidential 11 TechStyle Programmatic Goal? Average Order Value? Lifetime Value? Cost Per Page Land? Cost Per Click? Cost Per Lead? Cost Per Viewable Impression? Viewability?
  12. 12. Confidential 12 TechStyle’s Two Programmatic Values?
  13. 13. Confidential 13 Two Evaluating Factors Time Short-Term Time Questions • How long will the campaign setup take? • Audience creation timeline? • How many calls? Always ask: How many other tests and/or tasks could I accomplish in this period? Long-Term Time Questions • How long will it take to get an initial/final read? • Optimization load? • Will this overtly distract from other long-term plans? Always ask: How long until I can scale or shut-off this test? Then, how much time will it take if it works?
  14. 14. Confidential 14 Two Evaluating Factors Depth of Data Cut in two semi-equal parts… bad data Perfect craftmanship… good data VS. Good data example: Testing a new data provider over 30 days…able to test 3 different types of targeting and 4 different audiences within each targeting type Bad data example: Testing a new data provider over 30 days…able to test 1 different targeting type per week and 2 audiences with each targeting type
  15. 15. Confidential 15 TechStyle’s Programmatic Buying Strategy TechStyle only focuses on CPA Programmatic is complex
  16. 16. Confidential 16 TechStyle’s Programmatic Buying Programmatic is complex
  17. 17. Confidential 17 TechStyle’s Programmatic Buying Stage 1: Collection – 20% • Limited budgets • Limited targeting to collect wide net of data • Limited adjustments to get natural read Stage 2: Scaling – 50% • Analyze data to find pockets of efficiency • Increase budgets (CPA will rise – don’t panic) • More adjustments, but still limited Stage 3: Cutting – 30% • Aggressively cut pockets of bad inventory at largest grains •Supply Vendor •Geo •Time of Day • Wait…then evaluate •Option 1: Turn it off •Option 2: Lean in Testing Framework • How do we find success? • How do we treat tests in a similar way? •Regardless of whether it is a single ad group or new DSP
  18. 18. Confidential 18 TechStyle’s Programmatic Buying Ad group segmentation • ~100+% more ad groups YOY, ~50+% less spend per ad group Data partners • Spending ~40% on data, but ~33% less per segment Auto-Opt • Finally beating manual opt – allowing for ad group segmentation Constantly testing • Rigid testing framework has given us freedom and time to always be testing Data Time TFG Programmatic Overview – Where have time and data taken us? ~70% YOY Spend Growth ~35% YOY CPA Drop ** ~ is used due to aggregating of five brands
  19. 19. Privileged & Confidential Thank you! Jarod May: Global Fashion Brands + Media Chief of Staff, Head of Programmatic August 23rd, 2019: Olympic Valley, CA

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