Overcoming the challenges of programmatic in southeast asia
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My presentation from L.E.A.D Asia 2016. A simplified view of the programmatic landscape, and a deep dive into the barriers to entry of Brands to programmatic. What are the key considerations you need to enter to Programmatic.
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Overcoming the challenges of programmatic in southeast asia
- 1. Overcoming the Challenges of Programmatic in SEA Benedict Hayes, Managing Director SEA and India
- 2. Man vs. Machine • No Scale • Slow to Scale • Simple Communication • Technical competency • Minimise Waste • Lower Performance • Infinite Scale • Speed at Scale • 1-2-1 Communication • Machine learning • Maximise Efficiency • Evolving Performance
- 4. It’s a crazy world out there!
- 6. SELL SIDEBUY SIDE the CONSUMER the BRAND the SELLER the BUYER Data Management Platform (DPM) Data Broker Publisher Ad Server The Publisher Ad Network (working for a publisher) Advertiser Ad Server Agency, Trade Desk Or In-House Team Ad Network (working for a buyer)
- 7. Faster than the blink of an eye. RTB < 100ms ;-) = 300ms
- 8. Complexities of Programmatic in SEA Where does the money go? 1. MONEY FLOW Not big data, but smart data 2. DATA Right message in the right place at the right time 3. COMMUNICATION Quality assurance and brand safety 4. BRAND SAFETY Understanding your user, where they are and what devices 5. CONSUMER MAPPING 6. ATTRIBUTION How should you use programmatic to get the most value?
- 9. Money Flow the CONSUMER the BRAND $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ the SELLER the BUYER 1 / 6 Ad Network (working for a buyer) Data Management Platform (DPM) Data Broker Publisher Ad Server The Publisher Ad Network (working for a publisher) Advertiser Ad Server Agency, Trade Desk Or In-House Team
- 10. 1 / 6 How We Work
- 11. Sociomantic Publisher Sociomantic +selected buyers Publisher Sociomantic +all buyers Publisher Open Auction Private Auction Preferred Deal 1 / 6 How We Work
- 12. Data Strategy Smart DataBig Data 2 / 6
- 13. Jakarta, Indonesia – Singapore Dep. 29 August - Halal Food - Speedy Boarding - Extra leg room Book Now Now ₹15,655 Preferred Destinations or Routes Jakarta – London Bali – Singapore Hanoi – Bangkok Kuala Lumpur – Paris Real-time price Real-time availability Exact product + similar offers - Departure date - +/- 1 days - Destination - Price comparisons - Product variations Campaign Split: Departure Date Communication Strategy Real-time offers based on the user 3 / 6
- 14. • Direct CRM / API integrations • Creation in real time • Customized for each user • Personalized product features based on user’s search behavior (rates, runtime, interest rates, etc.) • Creative, emotional design • Dynamic HTML (no Flash) Complete Now Broad Data Yield Data 1st Party Data User Data POS Data CRM Data $1 to $10,000 3,69% APR 36-48 Months Communication Strategy Real-time offers based on the user You are Pre-approved! Apply Now 3 / 6
- 15. TRANSPARENCY PERFORMANCE INVENTORY QUALITY 4 / 6
- 16. TRANSPARENCY PERFORMANCE INVENTORY QUALITY The Programmatic Industry’s First Quality Index for Suppliers Auctions and price floors leave suppliers with room for manipulation. Transparency refers to any insights the supplier provides when an auction takes place. Factors of this measure help to determine whether the supplier operates as a “black box” or transmits all information necessary to know where an advertiser’s money is going. Sociomantic assigns scores to ensure that both supplier technology and inventory will supper the performance objectives of our clients. The performance measure includes factors such as abnormal fluctuations in prices or in the qualitative value of an ad impression being auctioned. Inventory quality can differ largely across suppliers. This measure tests for the actual value of inventory being sold, the likelihood of users noticing the ad, whether it is seen, whether we are buying legitimate ad impressions, whether we are bidding on premium or remnant inventory, etc. Brand Safety 4 / 6
- 17. Consumer Mapping Creating the 360º view of your consumer • MHASH • Logged in / • Non-logged in 5 / 6
- 18. $0 $10 $2.50 $3.50 $1 $2 $3 $4 $10 $0 $0 $0 $3 $1 $4 $2 $10 $10 $10 $10 $10 $10 LAST CLICK (The Closer) LINEAR (Even Steven) U CURVE (First and Last) TIME DECAY (Increasing Credit) FIRST CLICK (The Icebreaker) CUSTOM (The Charmer) $2 $2 $4 $2 $10 ENGAGEMENT (The Influencer) Time Attributed Revenue ATTRIBUTION $2.50 $2.50 $2.50 $1.50 $1.50 $3.50$0 $0 Attribution 6 / 6
- 19. The Halo Effect 6 / 6
- 20. Pre-Purchase Post-Purchase Purchase Cost of Unique Reach / Frequency Cost per unique visitor Cost of micro conversion Cost of lead Cost of sale ROI Customer Lifetime Value Awareness Interest Desire Action Loyalty Advocacy Measure the funnel fairly across ALL channels Offline as well as Online 6 / 6
- 21. Barriers to Entry to Programmatic in SEA • Digital Fitness • Data Management • Cost Concerns • Tech Capability • Siloisation • Wrong Expectations
- 22. Purchase Funnel Prospecting & Retargeting Pre-Purchase Post-Purchase Purchase Awareness Interest Desire Action Loyalty Advocacy
- 23. Awareness Interest Desire Action Loyalty Advocacy Purchase Funnel Loyalty & CRM Groups Pre-Purchase Post-Purchase Purchase
- 24. Pre-Purchase Post-Purchase Purchase Integrated Full-Funnel Awareness Interest Desire Action Loyalty Advocacy
- 25. Reach Campaigns Boost Remarketing Performance for Leading South East Asian Fashion & Beauty E-retailer Seeks to increase its brand presence and sales revenue in all markets of operation using an integrated full-funnel approach. Upper-Funnel: Smart Reach Prospecting • New collection launches • Sales promotions • Festive season e.g. Hari Raya CASE STUDY: OBJECTIVE STRATEGY Lower-Funnel: Personalised Remarketing • Singapore • Malaysia • Brunei
- 26. Banners For Different Markets Singapore Brunei Indonesia
- 27. Average session duration Conversion rate Pages browsed per session 3x Industry Average 7x 2x Industry Average Results: Upper-Funnel Prospecting
- 28. Bounce rate Average session duration 17.6% lower 12.1% higher Compared with Google SEM: Results: Lower-Funnel Prospecting
- 29. Results: Lower-Funnel Prospecting Effects on Reach Budget For Retargeting Campaign Performances Reach Budget Web Traffic Retargeting CPO 9.7% -47.4% 41.4% -72.3% -20.1% 62.5%
- 30. Q&A CRM? CLV?
- 31. Thank You! Benedict Hayes Managing Director SEA and India ben.hayes@sociomantic.com Sociomantic Labs Booth A04 www.sociomantic.com www.twitter.com/sociomantic www.facebook.com/sociomantic
Editor's Notes
- The huge global reach is a big plus, since this is something that most mobile only competitors can’t offer. We can reach the users anywhere in the mobile inventory: mWeb, In-App and mobile native.
- A real-time bid on a given publisher’s inventory for the same impression can cascade down as follows:We have a preferred deal worth 5€ We buy the impression for 5€ if we bid 5€ or more We don’t buy the impression if we bid 4.99€ or less and our bid will cascade down to our private auction We have a private auction deal for which we have a negotiated floor price of 3€ (different buyers can sometimes have different floor prices) We buy the impression for 3€ or the second highest bid if we bid 3€ or more and no other buyer bids higher We don’t buy the impression if another buyer bids higher We don’t buy the impression if we bid below our floor price and no other buyer bids higher than their floor price. The impression will cascade down to the open auction. Please note that bids are not adjusted in the process which means that our initial bid will be placed across all three layers.
- With all the hype around it, many might think that big data is the answer to their omnichannel problems, but in fact, big data can be a big dilemma. That's why we recommend advertisers to start with the data they already have, that's already structured and maybe not being put to good use to drive seamless marketing. We call it smart data.
- Based on our data-driven experience with variables constituting the quality of SSPs, an algorithm was developed which consists of a couple dozen factors that are subject to a range of key measures. Currently, the SQX comprises three overarching measures to score an SSP: Transparency Performance Inventory Quality Transparency refers to any insights the supplier provides when an auction takes place. We’ve determined a range of factors that characterize whether the supplier operates as a blackbox or actually transmits all the information necessary for us to know where our advertiser’s money goes. Performance is based on any abnormal fluctuations in prices or in the qualitative value of an ad impression being auctioned. Inventory quality tests for the actual value of inventory being sold – is the inventory seen? Are we buying legitimate ad impressions, are users likely to notice the ads, are we bidding on premium or remnant inventory and so on.
- Based on our data-driven experience with variables constituting the quality of SSPs, an algorithm was developed which consists of a couple dozen factors that are subject to a range of key measures. Currently, the SQX comprises three overarching measures to score an SSP: Transparency Performance Inventory Quality Transparency refers to any insights the supplier provides when an auction takes place. We’ve determined a range of factors that characterize whether the supplier operates as a blackbox or actually transmits all the information necessary for us to know where our advertiser’s money goes. Performance is based on any abnormal fluctuations in prices or in the qualitative value of an ad impression being auctioned. Inventory quality tests for the actual value of inventory being sold – is the inventory seen? Are we buying legitimate ad impressions, are users likely to notice the ads, are we bidding on premium or remnant inventory and so on.
- Web Mobile Web App Platforms Device As we centre around the user, where the user is becomes irrelevant. No such thing as channels anymore, only how to communicate to the user
- Specific to travel, we work with key players in the airlines, OTAs, Meta search, and home rentals segments. Our solutions cater to requirements such as creating a brand buzz, to look alike audience modeling to reach out to high quality prospects, driving new bookings, re-engagement, driving repeat bookings & loyalty with an ultimate objective of maximizing customer lifetime value
- Understanding Organisational digital fitness Tech capability Infrastructure Website design / architecture CRM Data management Cost: Investment is needed Attribution models Wrong Expectations
- As we all know clients spends big on marketing and advertising. All their forces are focused on converting to sale. The operations to track consumer tought the ads to purchase we call a funnel. The metaphor works perfectly because the number of potential customers occurs at each step of this process. Most valuable are obviously clients from the bottom part of the funnel.
- As programmatic matured we started to look at methods to attract customers that had not been to the site before. Rather than focus on trying to reach users in specific editorial environments we began to develop audience data for targeting audience profiles. Marketers also begin to use 1st party data in their prospecting, finding that the data from their existing customers is extremely useful in identifying new customers.
- But what if I tell you that a funnel works as a “hourglass” where we can constantly refilling value through loyalty/advocacy?