Programmatic buying has proven valuable in enabling advertisers to capitalize on impression-level decisioning for exchange-traded media. But most advertisers spend up to 85% of their digital budgets on direct-sourced buys on premium sites due to the close alignment of audience profiles with their target and guaranteed high-quality context for their ad placements.
Top advertisers are beginning to turn to Programmatic Premium, an innovative new approach that combines the best of both worlds – real-time impression-level decisioning with premium guaranteed buys – for substantial gains in effectiveness and return on direct media investments.
Adrian Tompsett, VP of Business Development at DataXu, the first fully-integrated digital marketing management platform (DMM), and John Gray, SVP of Interactive Media at Ford/Team Detroit, and guest speaker, Forrester Senior Analyst Michael Greene, discuss how Programmatic Premium will impact the market and:
* Industry drivers behind the new trend
* Deep dive into how a major advertiser used Programmatic Premium
* Real-world examples of how marketers can leverage this new approach to improve campaign effectiveness, consumer engagement and brand lift by 20% (or more)
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DataXu: Programmatic Premium Webinar - June 7, 2012
1. TREND WATCH:
Programmatic Premium Drives Higher Returns on
Premium Media Investments
Adrian Tompsett Michael Greene John Gray
VP, Business Development Senior Analyst SVP, Interactive Media
DataXu Forrester Research Inc. Team Detroit
#ProgrammaticPremium
2. Agenda
Adrian Tompsett
• So, What is Programmatic Premium?
• A Look at the Verticals
Michael Greene
• Bringing Premium to Programmatic
• Win-Win for Advertisers and Publishers
John Gray
• Deep Dive: Ford Case Study
Key Take-Aways
Q&A
#ProgrammaticPremium
3. So, What is Programmatic Premium?
Adrian Tompsett
Vice President of Business Development
#ProgrammaticPremium
6. Programmatic Premium: The Next Mega Trend
Imagine improving the effectiveness
of the global digital media budget
by 20% or more…
…by leveraging impression-level
decisioning and analytics
technologies which grew up on
exchange-traded media…
…and at the same time maintaining
publisher premium CPMs and
advertiser relationships...
#ProgrammaticPremium
7. How Does Programmatic Premium Work?
Traditional Programmatic Premium
Consumer A Ad 1 Consumer A
Ad
Consumer B Website Ad 2 Consumer B
Ad 3
Consumer C Consumer C
13. Upsell High-Value Customers While
Converting Your Best Prospects
Current
Retail
Purchased Impression Customer Ad
Current SMB
Customer Ad
Retail Upsell
Ad
SMB Upsell
Active Small Ad
Business Owner
Retail
Prospect Ad
Verify audience
segment
SMB
Prospect Ad
#ProgrammaticPremium
14. 1st & 3rd Party Data Eliminates Waste on
Guaranteed Buys
Wasted
Opportunity
Audience
Reached
#ProgrammaticPremium
31. Case Study: The Hypothesis
Can data-driven, impression-level decisioning be used across a premium
fixed buy to run multiple campaigns, matching the right offer to the right
consumer to drive higher response rates?
Retargeting Ad
Purchased
Impression
Audience Targeted
Ad
Creative
Optimization
Audience Identification
#ProgrammaticPremium
32. Case Study: The Results
Ford realized a 20%
increase in
effectiveness and
consumer engagement 20% Lift in Conversion Rate
Programmatic
Conversion Rate
Premium proves that
campaigns using
guaranteed media can
be maximized using
data-driven,
impression level
decisioning Baseline Programmatic
Premium
#ProgrammaticPremium
35. Thank You!
Adrian Tompsett Michael Greene John Gray
VP, Business Development Senior Analyst SVP, Interactive Media
DataXu Forrester Research Inc. Team Detroit
#ProgrammaticPremium
Editor's Notes
Taking a quick trip back to when I joined DataXu in 2009 to lead our business development effortsThe term DSP didn’t even exist or if it did, no one knew what you were talking aboutThe majority of media buys transacted with ad networks and publishers on an IO by IO basisIn either case, there was virtually no transparency to the buyers, and mixed bags of impressions were bought in buckets of thousandsThis would be similar to buying a paper bag of tomatoes at the market; some tomatoes best for salads some for spaghetti sauce and some were frankly rotten and better off thrown away.We have come an awful long way since then…Jump to next slide
RTB and impression level decisioning changed the whole landscape; VC investors poured money into the space and multiple technology vendors built companies focused on the evaluation and valuation of each impression with respect to advertiser goals.According to the IDC, in 2010 this market was $352m, in 2011 just over $1b, this year reaching almost $2b and estimated to become a $5b market by 2015.And why the rapid growth? Advertisers reaped the benefits of transparency and analytics that goes part in parcel when you are buying advertising at the impression level – cherry picking the best impressions that suit each marketers specific goalsOptimization (previously done manually) could now be done in real time; and marketers could gain real time insights to what is going on; rich third party overlays, onboarding offline CRM data delivered better results and incredible insights into consumers. This is something that we call demand sensing at DataXu – dynamically allocating budgets on the fly where we see ‘pockets of demand’. Same time – impression level decisioning was limited largely to exchange traded media. While on the one hand buyers love the massive reach and huge efficiencies possible – the inventory available is remnant. Most publishers continue to segment their inventory fairly crudle – I have tier 1 which is sold directly by my sales team and the rest is Tier 2 which I monetize either via ad networks or into the exchangesAdditionally, while these numbers are huge, they are dwarfed by the overall US online ad spend estimated at over $36 billion this year growing to almost $50B in 2015. Working closely with clients like John Gray at TD we began to ponder the question – why can’t we apply the same technology, impression level decisioning and analytics to guaranteed media buys? Wouldn’t that opportunity dwarf the size of optimizing exchange traded media? Flip slide
And thus the introduction of Programmatic Premium. Programmatic Premium allows for a single system of optimization, measurement and analysis, creating a rich framework for advertisers tounderstand their consumer, and for publishers to better monetize their inventory.Let’s run the numbers on 2012A 20% lift on exchange traded and ad network buys gives you $400mThat same lift on guaranteed media drives over $6b worth of valueI mean $400m isn’t cool. You know what’s cool – how about $6B dollars?The only downside I see for Programmatic Premium from my perspective it the lack of an easy acronym that doesn’t make people snicker.FOR ADVERTISERSDeliver improved efficiency and ROI across the entire media plan; either from delivering more CPA conversion type metrics or through the achievement of better audience density metrics as measured by eCPM against target audienceUnderstand globally the behavior of your consumers across all media and channels.Consolidate intelligence, attribution & reporting between exchange traded and direct buysFOR PUBLISHERSMaintain premium CPM’sFull control and transparencyNo impact to existing relationships of workflowDeliver more benefit and insights to advertisers
Effective or eCPM is: CPM divided by percent of audience densityPremium Food PublisherIndividual food or beverage product brand under a F&B advertiser
Leverage data-backed, real-time decisioning to serve relevant messages at the consumer-levelMeet your goals with multiple optimization model to drive actions, clicks or distributionIncrease audience density and improve consumer experience Reduce waste and improve ROI on direct media investments
For financial services folks – in our experience most tend to run their performance buys via ad networks and reserve the branding budgets to run on endemic sites and other guaranteed media. With programmatic premium, this distinction no longer matters. Performance and branding buys taking advantage of the same expensive media enable marketers to take advantage of every opportunity. If a consumer has just half filled out a credit card offer and abandoned – hit them with an offer to drive them to close. If a consumer is already a client – deliver a cross sell upsell offer to increase customer lifetime value.
And in closing – programmatic premium is an incredible opportunity to drive efficiencies across the entire media plan – not only delivering on operational efficiencies through automated targeting and optimization, but also improving performance against whatever metrics are most important to a brand.We are proud to be the only company in our space to not only be talking about programmatic premium, but delivering it for real customers. John Gray will bring us home with a real case study and experience working with DataXu on over 10 campaigns to date.Handing things over to Michael for the Forrester view on programmatic premium.
Suggest Bringing Programmatic to Premium
Programmatic Premium enabled Ford to leverage the real-time decisioning and analytics power of DataXu’s DX3 digital marketing management platform. Team Detroit worked with strategic partner DataXu to answer the following question: “Can data-driven, impression-level decisioning be used across a premium fixed buy to run multiple campaigns, matching the right offer to the right consumer to generate a higher level of response and engagement?” Apply impression-level decisioning to 15 campaigns, run across endemic automotive sites – hotbeds of “in-market” shoppers
The answer is yes, with Programmatic Premium. Programmatic Premium enabled Ford to leverage the real-time decisioning and analytics power of DataXu’s DX3 digital marketing management platform. Fifteen campaigns were run across endemic automotive sites – hotbeds of “in-market” shoppers. As a baseline control, a portion of the media was run using Ford’s traditional approach – a series of messaging concepts, in random rotation, based on assumptions and historical performance. The rest of the media was optimized using the Programmatic Premium approach. The DX3 system evaluated the audience data and attributes for each impression to distinguish, for instance, someone researching hybrid vehicles, from an F-150 intender, from a Mustang buyer, and delivered not only the creative with the most relevant make and model but also messaging that correlated to the consumer’s position in the purchase funnel. ResultsThe Programmatic Premium approach implemented for Ford produced a 20% increase in effectiveness and consumer engagement. Programmatic Premium proves that campaigns using guaranteed media can be maximized using data-driven, impression level decisioning. Ultimately, the strategic approach will deliver increased effectiveness and greater returns for Ford’s largest media spend, and transform the way big brand advertisers will run their campaigns.
John Gray -- Key Take-AwaysLeverage data-backed, real-time decisioning to serve relevant messages at the consumer-levelAdvertisers, meet your goals with multiple optimization models to drive actions, clicks or distributionIncrease audience density and improve consumer experience Reduce waste and improve ROI on direct media investments