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AdMonsters dmexco Presentation


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AdMonsters' presentation from dmexco (September, 2009). "From the boiler room to the bridge: building a culture of excellence in ad operations"

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AdMonsters dmexco Presentation

  1. 1. The boiler room to the bridge September 24, 2009 building a culture of excellence in ad operations
  2. 2. Welcome Wilkommen Bienvenue
  3. 3. About AdMonsters
  4. 4. The only professional association exclusively dedicated to online advertising operations and technology
  5. 5. 2009 Melanie Conner for The New York Times
  6. 6. What we do Publisher Forum Leadership Forum Training Consulting Network Operations Forum Over a thousand members Hundreds of companies AdOps 360 Webcasts Blog Series
  7. 7. Visit for more information…
  8. 8. The ‘bridge’ today
  9. 9. Business Partners Sales & BD Finance Editorial Technology Ad Ops
  10. 10. People managers VP Ad Operations Trafficking Manager Traffickers Outsourced trafficking Dir. Ad Technology Rich Media Specialist Client Svcs Manager Client services specialists Pricing & Yield Net. Optimization Pricing specialist Inventory Manager
  11. 11. Innovators
  12. 12. Technology managers
  13. 13. Revenue assurance
  14. 14. Act Plan Do Check
  15. 15. The early days… 1996 - 2002
  16. 16. Ad Ops, the early days Head of Sales Trafficking Ad Technology
  17. 17. Boiler room to the bridge 2002 - 2008
  18. 18. 2001-2002
  19. 19. Relative ad spend 2001-2004 -12% -17% 21% 38.90% -20% -10% 0% 10% 20% 30% 40% 50% 2001 2002 2003 2004
  20. 20. the most dynamic and revolutionary changes of any era in the history of advertising
  21. 21. "Marketers large and small have come to accept digital media as the fulcrum of any marketing strategy” Randall Rothenburg, IAB US, 2007
  22. 22. “growth continues to be stimulated by the expansion of newer online ad platforms, such as broadband video, rich Internet applications, mobile, and social media” MediaPost, Q3 2007
  23. 23. Case studies in success
  24. 24. Orbitz: Kaizen in Ad Ops
  25. 25. 99.9%
  26. 26. 90%? 95%? 99%?
  27. 27. $30M
  28. 28. Orbitz: Kaizen in Ad Ops  Ad Operations goal  Provide the highest levels of quality to our customers  Eliminate redundant and wasteful activities  3 Principles of Kaizen –operational excellence through:  Process and results (not results-only)  Systemic thinking (i.e. big picture, not solely narrow view)  Non-judgmental, non-blaming (blaming is wasteful)  PCDA –Plan, Do, Check & Act  FOCUS on quality –strive for 100% (99.9% is not adequate)
  29. 29. Plan Do Check Act P D C A
  30. 30. Orbitz: Kaizen in Ad Ops  How to achieve this  Operations teams achieve high quality through continuous improvement, learning, modifying process and adapting to change.  The Japanese refer to this as Kaizen, which means, ‘change for the better’ or ‘improvement’. The English translation is continual improvement’  Results at Orbitz  Since debuting this concept in 2005 organization has eliminated waste, cross-trained teams and balanced the workload  Scalable framework for managing and measuring excellence  Eliminated redundant activities and automated many processes  Better balance of responsibilities for the department  Strong team mentality
  31. 31. Microsoft: The Staffing Challenge  How to get more from their ad ops team?  High churn levels at lower Ad Operations positions  Ad Operations people tend to not have a career path  The “Millennial” problem…
  32. 32. Microsoft: The Staffing Challenge  Invest in People  Outline career paths  Management path or Professional path  Functional Leader or broad Business Leader  Extend Job Responsibilities Quickly  Share Reality with employees  Measure Performance; Reward Success  Measure results  Hold managers accountable
  33. 33. Microsoft: The Staffing Challenge  Results  Team Leaders and Team Members have well defined goals  Team Members know their importance to the company  Department can scale efficiently  Manager accountability  Reduced churn in the department
  34. 34. Martha Stewart: Ad Ops as Revenue Center  Major offline U.S. Media Brand  Needed to drive online revenue  Needed to shift from a ‘trafficking’ structure to a revenue center structure
  35. 35. Martha Stewart: Ad Ops as Revenue Center  Hired Matthew Gay, VP Media Advertising Operations  Not originally in Ad Operations, but finance and process expert  Metrics of department success all around revenue  Hired the right people for the right jobs but not necessarily from ad operations  Implemented process changes throughout organization  Implement Yield Management tools
  36. 36. Martha Stewart: Ad Ops as Revenue Center  Results  Ad Operations seen as the provider of logical and rational information for the organization.  Ad Operations seen as Revenue Center not a data center  Inventory review & management reporting  Focus on yield & monetization within ad operations
  37. 37. Washington Post Ad Product Innovators
  38. 38. Washington Post: Ad Product Innovators  Growing Revenue by being Innovative  Standard units are commoditized...non-differentiated  Networks have lowered the bar on pricing  Can help a non-differentiated site stand out in the crowd  Clients/Agencies are looking for things that have never been done
  39. 39. Ad Product Innovation
  40. 40. Ad Product Innovation
  41. 41. Washington Post: Ad Product Innovators  Developed culture of innovation  Created team solely focused on developing innovative ad products.  Team works with all internal departments and with clients to bring ideas to fruition fast.  Departments meet together to share new ideas.  Ad Operations seen as an enabler of revenue.
  42. 42. Yahoo!: Ad ops, Top Down  Top tier clients demand top tier service  Ad Operations is about business process, not trafficking  Wenda Millard in the US and Fru Hazlitt in Europe VP Sales Agency Sales Direct Sales Client Svcs VP Ad Ops Traffic Yield Tech
  43. 43. Yahoo!: Ad Ops Top Down  Raise the game of operations  Create VP of ad ops  Getting a handle on inventory/pricing/yield critical  Big investment in both people and tech to get there  In house technology and creative teams  Rational economic decisions trump irrational emotional ones  Sales & Operations in partnership  Align corporate priorities and sales incentives…with Ops providing the insight
  44. 44. What do these all have in common  Executive level cheerleader who support ad operations  Ad Operations has been challenges and/or allowed to step up  These companies view the organization more as business ops than simply ‘ad ops’ and certainly ‘trafficking’  Understand that ad operations is about more than just managing ads and campaigns its about growing the business  Have created a role for a senior ad operations leader within their org
  45. 45. Near term challenges
  46. 46. 2010 Challenges  New technologies and pressure to monetize them  Video & mobile  Economic climate drawing C-level attention to Ad Ops. Need to communicate challenges and justifications, better reporting  Pressure on revenue leading to increased demand for ad network deals. More sales ‘custom ads’ and pressure for ‘rule bending’  Desire for increased targeting  Reduction or freezing of staff levels
  47. 47. Suggested Takeaways
  48. 48. Ad Ops, the early days Head of Sales Trafficking Ad Technology
  49. 49. Are you an ad ops leader?  Where are you in the evolution of ad ops?  What will your plan be to get ops to the bridge?  Is ad ops a business partner or an order taker?  Is 90% good enough?  What’s your plan for implementing Kaizen in your operations?  How do you find and keep the BEST talent in ad ops?  If you are, what more can you be doing to  Grow as a revenue center  Create career paths
  50. 50. Thank you Matt O’Neill