SEMPL 19: ANDREAS SCHWABE, CEO, Blackwood Seven Germany

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The future media agency is not an agency 20 years ago, an average media plan took around 50 decisions to make. Today, it is more like 5.000. Without an artificial intelligence, you cannot longer keep up. Let's face the truth, the game is changing, transparency counts more than trust and media agencies must re-think their business. Andreas will show you how A.I. can already be successfully integrated into the strategic media planning and how it can allow as to make smarter, data driven decisions in order to maximize ROI across our marketing mix.

GREAT TO BE BACK... How Big Data is
Transforming Advertising
Friday, 15th of September

© 2016 Blackwood Seven
3
BIG DATA was just the
beginning...

Blackwood Seven
„Half of the money I spend
on advertisting is wasted;
the trouble is
I don‘t know which half.“
JOHN WANAMAKER
(1838-1922)

© 2017 Blackwood Seven
6
Advertising spend has been increasing steadily,
but the most effective allocation remains hidden
to the majority
0
100
200
300
400
500
600
2000 2002 2004 2006 2008 2010 2012 2014 2016
Advertising spend – worldwide (in bn USD)
33.7
16.0
2018F
6.1
6.6
0.7
2015
36.9
19.5
10.4
12.6
6.5
6.7
6.8
0.6
9.6
5.0
22.4
Media split – worldwide (in %)
Out of home
Cinema
Mobile internet
Radio
Newspaper
Magazine
Stationary internet
TV
Source: Magnaglobal; Zenith Optimedia;
If John Wanamaker is
right, 279 bn USD were
wasted in 2016
“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”
John Wanamaker (1838-1922)

7
“Last Touch Attribution” prefers Search
Last Touch
Online
Last Click / Last Touch
• Only last „contact“ gets the full attribution
• Other (earlier) relevant online events are ignored
• Offline completely ignored
• External factors completely ignored
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1
SEA
Display
Mobile
Affiliate
Social
© 2017 Blackwood Seven

8
“Multi Touch” just knows digital
Multi Touch
Online
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
SEA
Display
Mobile
Affiliate
Social
21
Last Touch
Online
Display
Mobile
Affiliate
Social
© 2017 Blackwood Seven
SEA

9
“Multi Channel Attribution” gets closer to reality
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Multi Channel
On- & Offline
Multi Channel (all Media Channels)
• Different media events get the
attribution
• Online AND offline events are
included
• Optional Cross Device Tracking and/or
simple mathematical approaches
• External factors completely ignored
Online
Print
OOH
TV
Offline
31 2
Multi Touch
Online
Last Touch
Online
© 2017 Blackwood Seven
SEA
Social
SEA
Display
Affiliate
Social
Mobile
Display
Affiliate
Mobile

10
True Models have to cover all relevant factors
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Reality
Media
Non Media
1 2 3 4
Online
Offline
Others
PR
Compet.
Promos
Macro
Multi Channel
On- & Offline
Multi Touch
Online
Last Touch
Online
Social
© 2017 Blackwood Seven
SEA
Display
Affiliate
Mobile
SEA
Display
Affiliate
Social
Mobile

© 2016 Blackwood Seven
12
EXISTING MODEL: EXCEL SHEETS

© 2017 Blackwood Seven
13
HUMAN VS. MACHINE

© 2017 Blackwood Seven
14
ARTIFICIAL INTELLIGENCE
decodes secrets buried
behind mountains of
big data.

© 2017 Blackwood Seven
15
Which factors influence KPIs?
What is the impact of paid media on KPIs?
What is the ideal media mix?
How many KPIs does the media mix achieve?
AI provides clarity and gives answers to long known
questions…

16
Planning with AI achieves significant efficiency
gains
Astronomically high
number of possible
models
Great forecast accuracy
© 2017 Blackwood Seven
Identification of all
KPI drivers
Significant
efficiency gains

© 2017 Blackwood Seven
17
One can tell which half of
the money is wasted.
It will bring “independent”
Artificial Intelligence to
Media Planning.
We will get predictions
about the outcome.
The Future of Media Optimization

Media agency recommendation Blackwood Seven recommendation
Media generated sales: Index 100 Media generated sales Index 186
NetMediaInv.Salesperweek
CASE: Creating growth with AI
© 2017 Blackwood Seven
NetMediaInv.Salesperweek

© 2016 Blackwood Seven
22
Failure to innovate:
who would you rather be?
2017

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