The document discusses programmatic display, video, and audio advertising strategies and results at TechStyle Fashion Group. It summarizes their 2019 experience with video and audio, finding that video quickly achieved cost per acquisition goals while programmatic audio inventory was more limited. Both opportunities and challenges are discussed, including the potential of connected devices and data in the future, as well as ensuring privacy and trust as technologies advance.

1. Programmatic Beyond
Display: What’s Next?
Jarod May
Senior Manager, Programmatic Media at TechStyle Fashion Group

2. Before we discuss this fun stuff:
• TechStyle Fashion Group Background
• Video + Audio
• Stats
• Our Strategy and Experience with Video and Audio in 2019
• Key Takeaways: Good and bad
• MediaPost – Data and Programmatic Insider Summit 2039

3. Background TechStyle
Fashion Group
Fabletics Savage X Fenty ShoeDazzle JustFab FabKids
5 Million Members Across 5 Brands

4. Background
• Platforms:
• The Trade Desk
• Google Ads
• Amazon Ads
• Launched Programmatic – end of 2016
• 2017: Display only
• 2018: Added Native
• 2019: Display + Native + Video + Audio
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$-
$1,000,000.00
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
$6,000,000.00
2017 2018 2019
Total Programmatic Performance
YOY
Spend CPA CPPL
**Jan-Apr

5. Video…Audio…Why?
Cost to Buy Cost to Build Time to Build
Display $ $ ⏰
Native $$ $ *.5 ⏰*.5
Video $$$$$$ $$$$$$ ⏰⏰⏰⏰
Audio $$$$$ $$$ ⏰⏰

6. What’s Happening in 2019?

7. Video Stats
• Viewers retain 95% of a message when they watch it in a video, compared
to 10% when reading it in text. (Insivia)
• 72% of customers would rather learn about a product or service by way of
video. (HubSpot)
• Mobile video consumption rises by 100% every year. (Insivia)
• By 2022, online videos will make up more than 82% of all consumer
internet traffic — 15 times higher than it was in 2017. (Cisco)
• Cisco has projected that more than 80% of all Internet traffic will be video
by 2021. (Cisco)
• More video content is uploaded in 30 days than the major U.S. television
networks have created in 30 years. (Insivia)

8. Audio Stats
**Charts from PEW
Research Center
• 12 hours of content is uploaded every 1 minute to SoundCloud
(TechCrunch)
• Spotify has 200+ million active users (Digital Music News)
• Amazon Echo + Google Home Music Streaming is now free with ads

9. Our 100% Open Exchange A/V Plan…
Stage 1 (10
Days)
• Traditional
campaign
structure
based on
display
successes
• Modest
spend
Stage 2 (10
Days)
• Analyze first
10 days of
data –
launch
audience,
inventory,
and creative
strategies
based off of
findings
• Push spend
Stage 3 (10
Days)
• Cut bad
pockets of
spend since
significant
levels of data
have been
accumulated
• Decide
whether A/V
is right for
TechStyle!

10. What happened?
• Video – Hit our video-specific CPA goals within 3 weeks…with
unprecedented levels of engagement
• Audio – Quickly realized that Programmatic Audio Inventory is much
more antiquated…direct relationships required
⏰

11. Should we be excited?
• Good news: Deep stores of video inventory allows for more flexible
campaign strategies
• We currently buy video from 50+ different supply vendors, layering on 10+
data providers
*Word Map is not comprehensive

12. Should we be excited?
• Good news: Video inventory can be applied to branding AND
acquisition efforts…more than just upper funnel
• We made over 500+ bid factors within the 2nd stage of video launch to find
ideal pockets for acquisition resulting in a strong CPA.
• Site, Supply Vendor, Geo, Browser, Operating System, Time of Day, Day of Week, Ad
Environment, Midpoint + Endpoint Retargeting Adjustments, F-Cap

13. Should we be excited?
• Good news: Not only is the consumer adopting video, but the
Programmatic industry is quickly leaning into this new media type.
• Despite tracking difficulties, most programmatic concepts and tools are
designed with video in mind. Similarities across media type = cleaner tests =
better performance
• “We have about 1,000% more video inventory than last year” – The Trade
Desk in 2018

14. Should we be scared?
• Bad news: Programmatic audio has been forgotten about…
Limited Investment
by Spotify, Pandora,
Soundcloud, etc...
No Investment by
DSP, Supply Vendors,
Data Providers...
Media Buyer sees no
scale to buy
???

15. Should we be scared?
• Bad news: Fraud gets more painful
• DoubleVerify uncovered a fraud scheme where video ads were being run on
Android phones behind display ads (60+ million calls a month)
• 60 million impressions x $13 CPM = $780,000 lost
• Do to data transparency, disciplined optimization, and luck we blocked the
offending video source within a week of launching video

16. What are we going to be
discussing at MediaPost – Data
and Programmatic Insider
Summit 2039?

17. What was happening 20 years ago?
• First banner ad on AT&T.com in 1994
• Best Buy Black Friday 1999

18. Everything in our lives will be connected
• Internet Of Things: the interconnection via the Internet of computing
devices embedded in everyday objects, enabling them to send and
receive data

19. What does this mean for media?
• Imagine being able to:
• Patagonia excludes creatives including sweaters and coats from a campaign
targeting users who never raise their Nest Thermostat over 68 degrees
• Michelin can start showing ads to somebody when they hit 20,000 miles
because the tires normally wear out at 22,500 miles
• Salomon for an apparel campaign can set a higher frequency cap for Steve
who smart skis record an average speed of 24 miles per hour; much faster
than the average
• Guaranteed data

20. What about data privacy?
• “Fears are educated into us, and can, if we wish, be educated out.”
-Dr. Karl Augustus Menninger
• Not sure if I agree with the statement regarding spiders, but true for data
• Fear leads to bad law and stifles growth, on an individual and group level
• Moore’s Law – Tech doubles every 2 years
• Applying 2019 Data Laws to 2044 technology
• Create safer, more trustworthy data environment

21. Should we be scared or
excited?

22. We should be scared of how
exciting the future is looking for
programmatic media.

23. Thank you!
• Jarod May – Senior Manager, Programmatic Media at TechStyle
Fashion Group
• jmay@techstyle.com
• Or find me on LinkedIn!