This document discusses performance marketing and data marketing in the digital advertising ecosystem. It provides definitions and explanations of key concepts like real-time bidding, retargeting, ad exchanges, and how data is collected and used for targeting advertisements. The document also describes how the digital display advertising system has evolved from Google transforming the market into an automated exchange to the complex real-time auction processes that occur between demand-side platforms, supply-side platforms, ad exchanges, and other players.

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Performance
Marke-ng
From
Real
Time
Bidding
to
Data
Marke-ng
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History
The
Display
Adver-sing
ecosystem
is
changing
drama-cally

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History
Google
transformed
the
ad
market
into
an
automated
stock
market
:
Text
Link
in
2002
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History
Google
transformed
the
ad
market
into
an
automated
stock
market
:
Display
in
2008

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Today
AdExchanges
interconnec-ons
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Performance
Marke-ng
Increase
your
convers-on

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What
is
Performance
?
Definition
Performance marketing is defined by getting measurable return on investment.
Unlike traditional marketing platforms such as TV, print or radio,
Performance Marketing implies pay-for-performance. This means that one
pays only a fixed amount per action or share of revenue per sale rather than
paying for advertising and then hoping for the best.
Advertisers pay a set price for a defined action such as a download, a visit, a lead,
a click, a registration, an information request, a purchase, etc.
Pricing is appealing to advertisers as the majority of risk is passed on to
Sales-House.
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How
does
it
work
?
Search : text link

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How
does
it
work
?
Social : text link
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How
does
it
work
?
Display : graphical
Leaderboard
IMU
Skyscraper
Textlink

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How
does
it
work
?
Conversion TAG
We absolutely need to place pixels to be able to measure the performance of your
campaign.
A pixel is a single line of HTML coding that is placed on the “Thank You” page of
a website, or the page directly following the conversion. When the “Thank
You” page appears, we receive a request from the browser for this 1x1 pixel
which alerts us that a conversion has occurred.
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How
does
it
work
?
Landing Page
2. Click
3. Conversion
1. Impression
Fill in
Every impression / click / action generated is recorded
within the ad server with date and time (via cookies).

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Post-­‐impression
vs.
Post-­‐click
The Click Through Rate is an inadequate
indicator undervaluing the ads
efficiency.
- 20% of conversions originate from clicks.
- Whereas 79.6% of conversions originate
from the contact with the advert
without clicking.
Post-Clic
Conversions
20,4%
Post-Impression
Conversions
79,6%
Distribution of the standard banner conversions in the world,
Post-Impression vs Post-Click,
Q3 2009-Q2 2010 (% of total)
Source: MediaMind, « Standard Banners-Non-Standard Results »
Beyond the click
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Retarge-ng
Retargeting pixels simply drop a cookie on a users machine when a page on the
clients website is visited, this identifies the user as being part of a population
for re-targeting should that user re-enter our network.
When setting up retargeting for an advertiser or a publisher, there are three steps:
- Setting up ad servers to read and write specific data to the cookie.
- Building the population.
- Targeting a media or campaign back to the population.

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Basic-­‐Retarge-ng
Only 2% of users buy on the
site during their first visit
Banner 1
Banner 2 or nothing
Thanks to retargeting, we find your users back on the sites of
our network and show them your specific ads with a
personalized message in priority
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Dynamic-­‐Retarge-ng
16
Product recall Recommendations Cross selling
The user has seen a 46cm TV on the
Hitech.com site
Hitech.com
500€
We personalize the banners by
showing the products previously
consulted by the user.
We personalize the banners by
highlighting the products from the
same category in the banners (TV
size, price, brand, etc…)
We personalize the banners by
highlighting additional products
In this case, it could be a DVD player
or home cinema sound system.
The user has placed the TV in the
basket page but has not bought the
product.
The user has bought a 46cm TV
Hitech.com
300€
Hitech.com
100€

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Duplica-on
Duplication occurs when two or more online properties take the credit for the
same sale.
The industry uses the last click/impression/search as the means for determining
which property generated the sale/action.
This is fundamentally flawed because several number of exposures and touch
points are required to result in a sale. Also, this method does not factor in
the impact of any offline activity.
Short of asking a user it is impossible to determine what creative messages
influenced the user to buy/engage.
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Duplica-on
The overlapped areas are the
‘risk of duplication’ for each
network.
The network with the largest
spend will have the highest
chance of being the last
exposure.
The network with the lowest
spend will be ‘handicapped’.
The conversion is firstly
assigned to the last click
or to the last impression.

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AdExchange
Reach
your
target
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AdExchange

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A
changing
ecosystem
DEMAND AUTOMATISATION TECHNOLOGY SUPPLY
Agencies
-
Trading
desks
DSP
Demand side
platforms
Sales
House
-
Adnetworks
SSP
Supply side
Advertisers platforms Editeurs Publishers
AdExchange
Ad Exchange are now in the middle of transactions between
advertisers, sales houses, and publishers…
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AdExchange
SELL SIDE PLATFORM
A
sell
side
pla<orm,
also
known
as
a
publisher
yield
opDmizer,
works
with
publishers
to
increase
their
adverDsing
revenue
and
help
manage
ad
inventory
,
pricing,
yield
management,
and
the
mulDplicity
of
publisher
sales
channels.
DEMAND SIDE PLATFORM
Demand
side
pla<orms
(DSPs)
enable
buyers
to
connect
directly
to
mulDple
sources
of
inventory
supply
(
SSP,
Publisher,
adnetwork
)
and
provide
such
benefits
as
workflow
simplificaDon,
integrated
reporDng,
algorithmic
buying
opDmizaDon,
and
the
ability
to
make
impression-­‐level
bids
(RTB)..

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AdExchange
TRADING DESK
Agency
trading
desks
can
be
thought
of
as
a
specialized
arm
of
larger
media
buying
agencies
that
focus
on
media
trading
and
RTB.
Each
desk
represents
a
specific
agency.
Agency
buying
desks
generally
serve
as
the
liaison
between
the
adverDser
or
parent
agency
and
the
pla<orms
they
use
to
facilitate
real-­‐Dme
bidding.
For
example,
an
agency
buying
desk
may
work
with
a
DSP
to
facilitate
an
RTB
campaign.
ADNETWORKS
Ad
networks
aggregate
supply
(inventory)
and
demand
(ads)
and
add
their
own
and
3rd
party
data
as
well
as
targeDng
and
opDmizaDon
technology.
Ad
networks
are
slowly
adding
RTB
capabiliDes
in
order
to
facilitate
RTB
transacDons
on
behalf
of
agencies,
adverDsers,
and
agency
buying
desks.
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AdExchange
ADEXCHANGE
Ad
exchanges
are
powered
marketplaces
where
numerous
ad
networks,
publishers,
adverDsers
and
other
sources
of
supply
and
demand
meet
to
buy
and
sell
media
in
conDnuous
real-­‐Dme
bidding
aucDons.
Exchanges
provide
workflow
and
reporDng
services
and
tools
for
buyers
and
sellers,
as
well
as
access
to
data
suppliers
and
targeDng,
opDmizaDon
and
analyDc
technology
andservices.

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EcoSystem
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Real
Time
Bidding
RTB
Real
Time
Bidding
is
a
parDcular
way
of
selling.
It
is
like
a
stock
exchange
price
that
is
determined
by
the
balance
of
supply
and
demand.
In
the
network
marketers
compete
with
each
other
to
win
the
bidding.
All
the
users
can
be
‘’bought’’
in
real
Dme,
so
the
banner
is
seen
by
the
right
target
at
the
right
moment
at
the
right
price.

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Real
Time
Bidding
STEPS in less time than 120 milliseconds
- Net surfers consult a web page
- Each impression is auctioned
- Interested buyers make bids
- The highest bid wins the impression
- The winner serves its ads
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Real
Time
Bidding

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Formats
When RTB meets Premium advertising, to offer
Standards AND Rich Media formats
IAB standards Expandables
Footer
IAB standards & Big Exposure
Skinban
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Campaign
priority
Adv. Imp. Clics CTR CONV CPM CPC CPA Budget eCPM Position
A 1.500.000 5.000 0,3% 2,00 € 3.000,00 € 2,00 € 4
B 1.250.000 5.000 0,4% 0,80 € 4.000,00 € 3,20 € 1
C 1.500.000 7.500 0,5% 0,50 € 3.750,00 € 2,50 € 3
D 1.000.000 5.000 0,5% 100 30 € 3.000,00 € 3,00 € 2

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Targe-ng
:
device
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Targe-ng
:
network
Recent
update
:

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Targe-ng
:
sites
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Targe-ng
:
region

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Targe-ng
:
language
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Targe-ng
:
-me

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Targe-ng
:
mobile/OS
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Targe-ng
:
mobile
operator

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Data
Marke-ng
Reach
your
target
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Data
targe-ng
:
ecosystem
WEB
& MOBILE
REGISTRATIONS
& SUBSCRIPTIONS
THIRD PARTY
DATA
AGENCIES
NETWORK
DATA
STORE
DIRECT SALES PRIVATE EXCHANGE RTB

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Collec-on
methods
SINGLE TAG
ALLOWS THE COLLECTION OF DATA:
URL
CATEGORY
SUB-CATEGORY
CONTENT KEYWORD
SOCIAL SHARING
INTERACTION WITH ADVERTS
REGISTRATION FORM DATA
ONLINE
1
OFFLINE
USE
OF
CRM
DATABASES
TO
ENHANCE
EXISTING
SEGMENTATION
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Data
structure
CATEGORIES
SOCIODEMO
GRAPHIC
CATEGORIES
AREAS OF
INTEREST
LOOK
ALIKE
TAILOR-MADE

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Socio
demographic
1I
EDITOR
DATA
Our
DMP
provide
us
with
informaDon
relaDng
to
their
internet
users
that
are
logged-­‐on.
>
Criteria
of
sex,
age,
post
code,
are
from
opt-­‐in
email
programmes
(a
subscripDon
to
a
newsle1er
e.g.)
2I
PROFILING
Measurement
of
internet
reference
audience
in
Belgium
>
Measure
their
uses:
Dme
spent,
page
views,
coverage
>
IdenDfy
the
socio-­‐demographic
profile
of
visitors
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Categories
4.7
M
SHOPPING
COMPUTERS
ELECTRONICS
CARS
VEHICLES
BEAUTY
PERSONAL
CARE
WORLD
LOCAL
ISSUES
ONLINE
COMMUNITIES
TRAVEL
BUSINESS
INDUSTRY
SPORTS
FOOD
DRINK
EDUCATION
FINANCE
NEWS
ARTS
ENTERTAINMENT
LIFESTYLES
SCIENCE
REFERENCE
LANGUAGE
RECREATION
REAL
ESTATE
PETS
ANIMALS
HOME
GARDEN
GAMES
HEALTH
LAW
GOVERNMENT
INTERNET
TELECOM
13
M
7.8
M
6.3
M
300
K
18
M
12
M
500
K
35
M
20
M
5.7
M
1.3
M
11
M
2.9
M
3
M
33
M
35
M
3.2
M
900
K
31
M
9.5
M
200
K
1.8
M
5.5
M
400
K

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Look
a
like
TARGETING
OF
INTERNET
USERS
WITH
A
SIMILAR
PROFILE
TO
INTERNET
USERS
THAT
ARE
CHANGING
1 2 3 4 5
PROSPECT
CONVERT
BROADCAST OF
CUSTOMISED
ADVERTISING
CREATION OF
TAILOR-MADE
CATEGORISATION
MATCHING WITH
SIMILIAR BEHAVIOUR
PROFILES
10
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Tailor
made
EXCLUSIVE DATA
DAILY ENHANCEMENT OF CATEGORIES
SOCIODEMOGRAPHIC
BEHAVIOURAL
GOAL ORIENTED

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Case
Study
AOL
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Site
Audience
• Customer: AOL
• Sector: travel
• Activity: renting of family holiday resorts
• Problematic: less and less sales via travel agencies
decrease of the website audience
• Target: Increase sales rapidly
• Proposition: Search Engine Marketing & Display Advertising

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Site
Audience
18.000
16.000
14.000
12.000
10.000
8.000
6.000
4.000
2.000
0
897
V.U.
22.987
V.U.
77.457
V.U.
18.492
V.U.
27.057
V.U.
Trafic
Direct
Search
Brand
Search
Generique
Display
AffiliaDon
AdExhange
RTG
Ad
Exchange
Contextual
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Conversion
450
400
350
300
250
200
150
100
50
0
504
Conv.
–
1,8%
283
Conv.
–
1,23%
1.400
Conv.
–
1,8%
888
Conv.
–
4,8%
101
Conv.
–
11,26%
03/2011
04/2011
05/2011
06/2011
07/2011
08/2011
09/2011
10/2011
11/2011
12/2011
01/2012
02/2012
Trafic
Direct
Search
Brand
Search
Generique
Display
AffiliaDon
AdExhange
RTG
March
April
May
June
July
August
Sept
October
Nov
Dec
January
February
Ad
Exchange
Contextual

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CPA
5,84
€
54,08
€
30,45
€
9,48
€
10
lundis
pour
ra1raper
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train
du
digital
Thank
You
52
HI-MEDIA IS A PIONEER IN MOVING FULL AD-EXCHANGE
ENJOYS LEADERSHIP, TECHNOLOGY & EXPERTISE
Editeurs
Vincent Delmotte
Country General Manager – HiMedia Belgium
Founder & Managing Partner - AdExpert
Vice-President and Treasurer – BMMA
Member of the Board and Treasurer – DMA
Founder & Member – IAB Belgium
vdelmotte@hi-media.com @vdelmotte
www.linkedin.com/in/vincentdelmotte