Organizing for Programmatic Success - Digiday Brand Summit, 4/21/15
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This document summarizes a presentation about organizing for programmatic success. It describes four models for how brands, agencies, and technology partners can work together, and provides a case study example of the "triumvirate" model. In the case study, a retailer worked with a digital agency and technology partner MediaMath to drive incremental offline sales through targeted digital ads. By activating first-party customer data and increasing viewable inventory, they achieved a $5 ROI for every $1 spent on digital ads and saw higher ROI than other campaigns. The document concludes that the direct and triumvirate models are seeing the most value creation.
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Organizing for Programmatic Success - Digiday Brand Summit, 4/21/15
- 1. A Case Study of the Triumvirate of Brand, Agency, and Technology Partner Edwin Lee VP Global Retail, MediaMath Digiday Brand Summit, April 21st, 2015 Organizing for Programmatic Success @mediamath @dwin1
- 2. Brands Want More Efficiency and Accountability Advertisers are demanding better ROI from media investments Automation emerges to meet this demand Need for tools/technology is critical @mediamath @dwin1
- 3. WBR Q1 Survey 62 70% 60% 50% 40% 30% 20% 10% 0% % Drives Direct revenue Improves our understanding of digital ROI Keeps Marketing accountable @mediamath @dwin1 With More Accountability, Brand Marketers Are Delivering Results
- 4. @mediamath @dwin1 Key benefits of programmatic: Activates data to optimally connect media, audience, and creative “Cherry-pick” consumers across channels and devices Increased ability to track digital ROI Optimisation across the entire marketing program Greater reach and access to all digital media inventory Accountability Is Just One Benefit of Many Programmatic manages the new, non-linear consumer path-to-purchase across all addressable media channels
- 5. 4 Models of Organizing for Programmatic Success BRAND TECH PLATFORM Manage It Yourself BRAND AGENCY TECH PLATFORM Using an Agency and Their Tech Platform BRAND TECH PLATFORM Technology Partner Management BRAND AGENCY TECH PLATFORM Agency Partner Management of Tech Platform @mediamath @dwin1
- 6. Case Study: The Triumvirate MediaMath, SQ1, and the retail client: Better together One of the nation’s leading retailers teamed up with digital agency SQ1, and MediaMath, to deliver digital ROI, and influence overall business outcomes. SUCCESS The client saw an overall $5:1 ROI for offline sales. Furthermore, the client saw 74% higher ROI through MediaMath than the same direct buy campaign, and 38% higher ROI from ad viewability. OBJECTIVE The client was reliant on print-based marketing and brick and mortar sales. They needed to drive incremental in-store sales, and prove that display had a higher ROI than free standing print inserts. SOLUTION SQ1, together with MediaMath, and the client, demonstrated how programmatic can drive incremental offline sales by : Using MediaMath’s DMP to onboard and activate the clients 1st-party data. The client targeted CRM data (within a tight radius of retail locations) Increasing viewable inventory at scale @mediamath @dwin1
- 7. We Are Seeing the Most Value Created with Direct and Triumvirate Models BRAND TECH PLATFORM Manage It Yourself BRAND AGENCY TECH PLATFORM Agency Partner Management of Tech Platform @mediamath @dwin1
Editor's Notes
- Business leaders today need to know how much marketing impacts their business and revenue goals; Marketers are increasingly being held accountable to deliver ROI and influence overall business outcomes. Automation has emerged to meet this demand, in the form of programmatic technology. History repeats itself, just like manufacturing and the stock market. Now automation is here in buying advertising, and it’s called programmatic.
- A recent Q1 2015 WBR report that surveyed more than 100 brand marketers found that 62% of these marketers cited driving direct revenue, the improvement of understanding of digital ROI and keeping marketing accountable as the main way in which programmatic supports their greater business goals.
- Marketing accountability and transparency into marketing performance is just one benefit to the marketer. Other benefits include: -optimally connecting media, audience, and creative to achieve marketing goals -engaging consumers across channels & devices in an individualized, sequenced way, -accessing all digital media inventory from display to social to video to mobile to any addressable media As a result of the benefits afforded by using programmatic technology, the modes / models of media buying management have proliferated. It’s not a one size fits all – each brand has distinct needs and, as such, the way that they manage their programmatic media will differ. I’d like to address the four most common ways in which we see marketers managing their programmatic marketing, the implications, and highlight how the brand, agency, and tech partner can align to drive shared success.
- Embracing programmatic requires adopting new sets of technology, processes, and expertise to yield the best results. From a media agency’s trading desk to digital agencies, to bringing the technology in-house, there are many options from which to choose when moving forward with programmatic. Programmatic management model 1: Managing it yourself Pro – Streamlines the process from campaign preconception to ads on a page, less cooks in the kitchen Cons – you are in the weeds – doing it all, and it’s likely to be uncharted territory; You need the people and skills, both of which are in extremely high demand.
- Programmatic management model 2: Using an Agency and their technology platform Pro – Agency is pulling the levers / hands on keyboard, which means you don’t have to. Cons – Boils down to trust – trusting that they agency has your best interests in mind, additionally you are delivered your reporting, but you may not get insight into the how and why behind the results that you got.
- Programmatic management model 3: Technology Partner Management Pro – Direct line of communication to partner for tech expertise Cons – No access to agency benefits, and you should make sure that you understand every aspect of how your partner creates your strategy, executes your media buying, and spends your budget.
- Programmatic management model 4: The triumvirate of brands, agencies, and technology partners Pro – Greater comfort deploying first-party data, better integration with internal systems, and normalized measurement across all media/ campaigns, benefits of having an agency relationship (such as data-driven creative services and pooled media buying) Cons – More involved I’d like to use a real life example of the triumvirate in action.
- SQ1, a full-service performance-marketing agency, worked with MediaMath to drive impressive performance through the combination of technological expertise, strategic guidance as to media decisions, and management of programmatic campaigns. MediaMath’s DMP allowed the client to put their CRM data to use by effectively target customers based on proximity to the retail stores. Once the CRM data was onboarded, the agency ran A/B tests against “test” and “control” groups to clearly delineate the impact of ad exposure to the “test” group. The agency also tested the same display campaign with another major publisher through a direct buy – and ultimately found that MM beat out the direct buy, proving of the efficiency of a holistic technology solution. MM tech + agency strategy/testing of campaigns drove these results. “The fact that these campaigns can scale to reach higher volumes of consumers means that display media gives CMOs a viable solution to replace or supplement the sales volume from traditional channels like print FSIs.”
- 58% of CMOs say their current org structure hinders their ability to adapt to today's marketing environment – Forrester Source: Q3 2013 Forrester/ Heidrick & Struggles Evolved CMO Global Online Survey We find that organizations are buying capabilities and harvesting them but not creating real operating leverage from them. Harvesting technology in silos doesn’t make sense from a pure economics standpoint, but it also hinders the ability to operate in an omni-channel fashion. Technology should serve as a foundation to unify data sets and fragmented media. We are finding the most value created and greatest efficiencies gained with 2 of these models: Direct and Triumvirate. The reasons are 3 fold: Better alignment around the Brands business goals Leveraging experience and knowledge from key tech, agency and brand entities Better sharing of data around the Brand’s customers
- 58% of CMOs say their current org structure hinders their ability to adapt to today's marketing environment – Forrester Source: Q3 2013 Forrester/ Heidrick & Struggles Evolved CMO Global Online Survey We find that organizations are buying capabilities and harvesting them but not creating real operating leverage from them. Harvesting technology in silos doesn’t make sense from a pure economics standpoint, but it also hinders the ability to operate in an omni-channel fashion. Technology should serve as a foundation to unify data sets and fragmented media…like in the gluten-free example I just mentioned. But all may be for naught if there aren’t also these 2 essential components: 1 – A unified set of goals around which the organization is aligned, but weighted based on responsibility. For example: If you have a display team, a social team, someone who owns video, someone else who owns search – and they all have different KPIs they’re held accountable to (campaign performance and THEIR performance/comp), why would they be incented to think about a single view of the customer OR create efficiencies with their colleagues with regard to workflow or cost OR share data so others can learn more quickly? 2 – A system for educating each group on how their role impacts the goal. I’ll give a simple example of changes one of our clients made… Knowing that there is an inherent space limitation in their physical retail locations, specifically for certain business units, they did two things: They ensured that their store employees were educated on inventory, assortment & fulfillment options by channel and rewarded for enabling customers to explore (and hopefully purchase!) items online that are not available in-store. For example, a store might carry 5-10 baby cribs but can carry hundreds of SKUs online – so by enabling and incenting their staff to speak articulately about their assortment online and flexibility with regard to shipping, they were not only creating a better omni-channel experience for their customers, but also enabling more sales to stay with that retailer rather than at a competitor. This client also created an environment where the store designers, web site designers and mobile site designers met periodically to exchange ideas & create some sort of alignment. While their assets and limitations were vastly different, they found a handful of easy action items from these meetings including adding shelf-talkers to stores with a smaller footprint that couldn’t carry a large number of SKUs in certain categories. Once the education and goal system was in place, it was much easier to start breaking down the silos as everyone was rowing together in pursuit of the same destination