tag:www.econsultancy.com,2008:/topics/real-time-bidding Latest Real-time bidding content from Econsultancy 2017-10-17T10:00:00+01:00 tag:www.econsultancy.com,2008:BlogPost/69491 2017-10-17T10:00:00+01:00 2017-10-17T10:00:00+01:00 Why digital out-of-home advertising is not really digital (yet) Nick Hammond <p>With this investment comes greater impact (e.g. increasing use of video), flexibility and of course income for the vendors. Alongside this burgeoning focus on digital creative delivery, there is attention on how the medium could be sold more efficiently – more like other digital channels and less like traditional out of home. </p> <p>Moving from a cost-per-panel approach and with access to more detailed, real time audience information on the horizon (rather than periodic panel data) the ability to trade on an audience model isn’t far off. For example, in Canada Outfront Media has launched its own real-time analytics platform, having agreed a partnership with mobile network Cellint.</p> <p>By tapping into available data, the platform will allow tracking of hourly impression numbers, including the proportion of those that are unique views. In the UK Transport for London has a considerable amount of data garnered from 5.6m mobile phones connected to Wi-Fi on the Tube. This mobile data can be used to track interchanges, and even walking routes and platform use within a station.</p> <p><img src="https://assets.econsultancy.com/images/0008/9753/dooh.jpg" alt="" width="470" height="353"></p> <p>Whilst these developments provide considerable opportunities for advertisers and OOH vendors alike, a recent piece <a href="http://www.campaignlive.co.uk/article/jcdecaux-we-ensure-outdoor-doesnt-fall-pitfalls-digital-media/1446445?bulletin=campaign_breakfast_briefing&amp;utm_medium=EMAIL&amp;utm_campaign=eNews%20Bulletin&amp;utm_source=20171005&amp;utm_content=Campaign%20Breakfast%20">in Campaign</a> highlights how out of home’s convergence with the digital world could have its downsides. </p> <p>OOH vendor JCDecaux has launched a brand charter which is seeking to avoid problems that have been plaguing the mainstream digital sector. These include accountability, viewability, measurability, transparency and brand safety. JCDecaux commented at launch, 'we must ensure outdoor doesn't fall into the pitfalls of digital media'.</p> <p>This charter aims to set a gold standard of best practice across the digital out-of-home industry and in this brave new world JCDecaux will ensure its metrics and measurements are independently verified by Price Waterhouse Coopers; who will provide a quarterly compliance report to ensure transparency.</p> <p>This is an interesting development as out of home has a history of being one of the more opaque advertising channels in terms of the buying process, audience measurement and invoicing.</p> <h3>OOH automation </h3> <p>In the UK, digital buying practices are moving into the OOH sector in the shape of increased automation. </p> <p>From the Campaign piece – ‘Also mirroring the wider digital market, JCDecaux has launched a new external smartsuite platform, SmartBRICS, which allows advertisers and agencies to place their own DOOH campaigns for the first time. The platform has been used internally for the past two years but (now).. will be available to external users through an API. Users will now be able to plan, budget and create their own campaigns based on the platforms in-depth rules and filters on its dashboard.’ </p> <p>So, what are the challenges and opportunities for digital practitioners? We are already seeing digital experts’ influence spreading across traditional channels such as TV, which is increasingly being bought <a href="http://www.thedrum.com/opinion/2017/06/13/get-ready-programmatic-tv-advertising">in an automated fashion</a> (see <a href="https://www.skyadsmart.co.uk/">Sky AdSmart</a>), and this is beginning to happen with OOH as well, as observed above.</p> <p>Clever recent activational examples in DOOH were featured in <a href="https://econsultancy.com/blog/69100-six-clever-examples-of-what-dynamic-outdoor-advertising-can-do">this Econsultancy piece</a>. I particularly liked the FT’s use of digital billboards at Heathrow’s Terminal 5 to target passengers travelling to six pre-selected US cities. It was achieved by tapping into Heathrow's flight data via an API.</p> <p><img src="https://assets.econsultancy.com/images/0008/9752/FT_heathrow.jpg" alt="" width="568" height="400"></p> <p>Guinness devised a dynamic campaign in London that allowed posters to direct RBS 6 Nations fans to nearby pubs to watch the games. </p> <h3>Is DOOH digital?</h3> <p>So, just how digital is digital out of home? For DOOH to become fully digital in terms of trading (as well as delivery of creative), the key area will be around improved audience assessment. It is achieving this, which will allow a mainstream programmatic digital approach including real-time bidding, behavioural and contextual targeting.</p> <p>Because of the size of the OOH medium, the variety of locations and the challenge and cost of quantifying and assessing audience behaviour, the measurement of OOH has traditionally been restricted to periodic panel research – OSCAR, then <a href="https://www.research-live.com/article/news/postar-to-measure-90-of-outdoor-media/id/2000079">POSTAR</a>, and now <a href="http://route.org.uk/research/">ROUTE</a>.</p> <p>The resultant audience information is therefore nowhere as detailed and current as that available across other digital channels. JCDecaux’s charter is well timed, especially in terms of brand safety, but from an audience perspective the PWC verification is only happening on a quarterly basis.  </p> <p>For DOOH to really align with digital media, it will need to achieve accurate, real time, detailed consumption data that can fuel truly digital trading methodologies.</p> <p><strong><em>For more on this topic, see:</em></strong></p> <ul> <li><a href="https://www.econsultancy.com/blog/68051-six-case-studies-that-show-how-digital-out-of-home-advertising-is-changing"><em>Six case studies that show how digital out-of-home advertising is changing</em></a></li> <li><a href="https://econsultancy.com/blog/67414-is-this-the-next-step-in-programmatic-out-of-home"><em>Is this the next step in programmatic out-of-home?</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/69231 2017-07-11T15:00:00+01:00 2017-07-11T15:00:00+01:00 Ads.txt, a new standard for fighting inventory spoofing & unauthorized sellers: What you need to know Patricio Robles <h3>Ads.txt allows publishers to broadcast a list of authorized sellers of their ad inventory</h3> <p>The idea behind Ads.txt, which stands for Authorized Digital Sellers, is simple: by providing publishers with a means to tell the world who is authorized to sell their ad inventory, the digital ad ecosystem will get a much-needed boost of transparency that can help weed out scammers engaged in <a href="https://econsultancy.com/blog/68578-the-weather-company-on-programmatic-ad-fraud-and-how-extreme-conditions-affect-business/">ad fraud</a>.</p> <p>The Ads.txt format is equally simple: an ads.txt file is hosted on publishers' websites and contains a comma-delimited list of four fields (three required and one optional) and one record per line.</p> <p>For example, a publisher, example.com, to show that it has authorized a reseller, somessp.com, to sell its inventory would include the following on a single line in its ads.txt file: </p> <blockquote> <p>somessp.com, 12345, RESELLER</p> </blockquote> <h3>The IAB has built a crawler that the media buying ecosystem can use</h3> <p>The IAB is providing <a href="https://github.com/InteractiveAdvertisingBureau/adstxtcrawler">an open-source reference implementation for an Ads.txt crawler</a>. This can be used by media buyers to create their own crawlers to pull Ads.txt data and incorporate it into their bidding systems.</p> <h3>Lots of companies have voiced support for it</h3> <p>Ad firms including Google, AppNexus, Rocket Fuel and The Trade Desk, as well as publishers like Business Insider, have voiced their support for Ads.txt.</p> <p>According to Scott Spencer, Google's Director of Sustainable Ads, "It's great to see the industry moving quickly to address the issue of counterfeit inventory with Ads.txt. Google fully supports ads.txt, and with a finalized spec, we'll begin integrating Ads.txt functionality into all our ads systems to make sure advertisers' spend reaches the intended publishers."</p> <h3>Ads.txt's success will require mass adoption</h3> <p>While the initial support for Ads.txt looks promising, for it to become a truly powerful weapon in the fight against ad fraud, large percentages of both publishers <em>and</em> media buyers will need to follow through in adopting it. For example, if enough publishers don't adopt Ads.txt, or a meaningful percentage of media buyers fail to take advantage of Ads.txt in their bidding, the specification will be for naught.</p> <p>On the media buying side, a June article published by AdExchanger <a href="https://adexchanger.com/platforms/buyers-ready-pull-trigger-ads-txt/">reported that</a> "no buyers that AdExchanger spoke to had immediate plans to implement campaigns using ads.txt."</p> <p>According to Melissa Bonnick, VP of programmatic strategy at Havas Group's programmatic trading desk Affiperf, "We will be paying attention to who starts to implement ads.txt." Translation: we're not going to incorporate Ads.txt into our bidding until there's a good enough reason to do so.</p> <h3>There are reasons some publishers might not adopt Ads.txt</h3> <p>While Ads.txt is relatively easy for publishers to adopt, there are a number of reasons that some publishers might not opt to do so.</p> <p>One of the biggest: even though transparency is a good word in the digital advertising ecosystem today, when push comes to shove, some publishers are likely to be uncomfortable letting the world know who is selling their inventory. </p> tag:www.econsultancy.com,2008:BlogPost/68822 2017-02-21T01:00:00+00:00 2017-02-21T01:00:00+00:00 Where is data-driven marketing headed in 2017? Jeff Rajeck <p>Terms like programmatic buying, real-time bidding (RTB), data management platform (DMP), customer data platform (CDP), and attribution modeling are now standard lingo when talking about using data for marketing nowadays. Without some grasp of these terms and the concepts behind them, marketers can quickly become lost when speaking with others in the biz. </p> <p>Perhaps, then, it does make sense to talk about 'data-driven' marketing differently from other marketing which focuses more on the '<a href="https://en.wikipedia.org/wiki/Marketing_mix">four Ps</a>' or '<a href="https://econsultancy.com/blog/67395-three-things-email-marketing-leaders-do-regularly-apac-case-studies/">STP marketing</a>'.</p> <p>For readers who feel that they need to catch up in this area, Econsultancy has a <a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">number of blog posts</a> on <a href="https://econsultancy.com/blog/67583-what-does-the-future-hold-for-data-management-platforms/">these topics</a> and Econsultancy subscribers can consult our recent research covering <a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic">programmatic</a>, <a href="https://econsultancy.com/admin/blog_posts/new/%20https:/econsultancy.com/reports/programmatic-branding">data-driven branding</a> and the <a href="https://econsultancy.com/reports/the-role-of-crm-in-data-driven-marketing">role of the CRM in data-driven marketing</a>.</p> <p><img src="https://assets.econsultancy.com/images/0008/3993/cmo_guide_to_prorammatic_-_old_template-report-full.jpg" alt="" width="800" height="594"></p> <p>But for those who are familiar with these concepts, the next question is: where is it all headed? What changes should marketers anticipate in 2017 with regards to the technology, capabilities, and effectiveness of data-driven marketing?</p> <p>To find out more on this topic, we interviewed an industry expert, Will Griffith from Oracle Marketing Cloud, who offers three big ideas about data-driven marketing in the video below, followed by some commentary on his points.</p> <p><iframe src="https://www.youtube.com/embed/bwXSj5Ws-yM?wmode=transparent" width="560" height="315"></iframe></p> <h3>1. Platforms, technology, and data are improving</h3> <p>Using data to buy media and place creative can be frightening. It cedes control of ad buying, site choice, and audience targeting to an algorithm which may lead to both <a href="https://econsultancy.com/blog/67659-three-things-that-show-the-scale-of-the-ad-fraud-challenge/">ad fraud</a> and <a href="http://www.thetimes.co.uk/article/big-brands-fund-terror-knnxfgb98">inappropriate placements</a>, both of which may harm a brand. </p> <p>These concerns are part of the reason why, as of late 2015, more than half (57%) brands <a href="http://digiday.com/brands/5-charts-brands-publishers-using-dmps-globally/">have not yet implemented a DMP</a> and most (61%) were not going to implement one in the coming year.</p> <p><img src="https://assets.econsultancy.com/images/0008/3994/plans-.jpg" alt="" width="800" height="441"></p> <p>What may alter this trend, however, is that marketers are becoming increasingly aware of the data-driven platforms and technology that is available and realize that they are improving.</p> <p>Facebook and Google are leading the way in making data available to advertisers. Programmatic ad-buyers on these and other demand-side platforms (DSPs) can now choose to pay by impression, click, action, download or a number of other different metrics. These platform and technology improvements then lead to better data about consumer interests which, in turn, make the platforms more valuable.</p> <p>As Mr Griffith points out in the video, all of these improvements lead to new opportunities for brands who are able to devise new strategies which use the new technologies. </p> <h3>2. Marketers are increasingly using data to improve performance</h3> <p>Along with catering for new marketing strategies, the improvements in platforms, technology and data also help marketers understand what is and what is not working. This allows brands, as Mr Griffith points out, to understand what they are getting for their media spend as well as understanding how to improve the customer experience once people are on their site.</p> <p>According to a recent Econsultancy survey, the two most popular methods for improving conversion rates derive from data, customer journey analysis and A/B testing.</p> <p><img src="https://assets.econsultancy.com/images/0008/3995/conversion.jpg" alt="" width="800" height="531"></p> <p>Additionally, the most popular place for marketers to get ideas for what to test comes from analysing data.</p> <p><img src="https://assets.econsultancy.com/images/0008/3996/testing.png" alt="" width="800" height="489"></p> <p>This means that in order for their brands to remain competitive, marketers need to use data to both review the performance of their campaigns as well as guide changes to their marketing, customer journey, and digital properties.</p> <h3>3. Through combining first- and third-party data, marketers will be able to allocate budget more effectively</h3> <p>In the video, Mr Griffith alludes to the recent trend to combine first- and third-party customer data to improve marketing performance. While it sounds like a complicated strategy reserved for only those 43% of companies who have implemented a DMP, combining first- and third-party data is actually straightforward to do with the major advertising platforms.</p> <p>Google offers a facility where marketers can upload customer data and then target both display and search ads based on both the uploaded (first-party) and Google (third-party) data.</p> <p><img src="https://assets.econsultancy.com/images/0008/3997/google.jpg" alt="" width="800" height="415"></p> <p>Facebook offers similar capabilities and even lets you remove people from the list who do not meet your current targeting requirements.</p> <p><img src="https://assets.econsultancy.com/images/0008/3998/facebook.jpg" alt="" width="800" height="227"></p> <p>Additionally, all major ad platforms, DMPs and DSPs offer retargeting capabilities which let marketers use onsite behavior, such as a product view, to determine what ad is shown to a potential customer. Combined with contextual, interest, and in-market consumer data from third-party data providers and consumer targeting can become very sophisticated, indeed.</p> <p>Data-driven marketing has certainly come a long way from just measuring cost-per-click and bounce rates. Marketers now have a wide array of platforms, technology, and data sources to use which help them target the right consumers, improve marketing performance, and devise new strategies.</p> <p>The task ahead for marketers is to become familiar with what is now available to them or risk losing out in the digital realm to brands who have a more informed approach to data-driven marketing.</p> tag:www.econsultancy.com,2008:BlogPost/68733 2017-02-08T15:00:57+00:00 2017-02-08T15:00:57+00:00 Advertisers love programmatic, but what about publishers? Patricio Robles <p>A survey <a href="http://www.operative.com/blog/blog/programmatic-stay-learn-profit/">conducted by</a> ad tech firm Operative concluded that "when it comes to programmatic...publishers are from Mars, advertisers are from Venus."</p> <p>While advertisers are increasingly spending through programmatic buys, because of the complex nature of the programmatic ecosystem, much of the money advertisers are spending is being gobbled up by middlemen and not finding its way to publishers.</p> <p>In fact,<strong> Operative says that half of the publishers it polled said that programmatic generates less than 10% of their digital ad revenue.</strong></p> <p>According to Operative, there are a number of reasons that many publishers are struggling with programmatic...</p> <blockquote> <p>When we asked publishers what limited their success, it became clear that they didn’t have the support and resources needed to succeed. The reasons for low programmatic CPMs were numerous, from lack of sales expertise to the complexity of dealing with conditional metrics for advertisers. Programmatic operations teams are also often dealing with lower quality inventory and unruly data sets, making it hard to justify higher prices.</p> </blockquote> <p>But there's a potentially inconvenient truth that suggests publishers may struggle to profit from programmatic, even if they manage to address some of the addressable challenges they face. As Michael Hubbard of Media Two Interactive, a media planning and buying agency, <a href="http://www.mediapost.com/publications/article/293458/publishers-say-less-than-10-of-digital-ad-revenue.html">commented</a>...</p> <blockquote> <p>It makes sense to me that their percent revenue is so low, [because] we use it for audience specific targeting - not publisher targeting, and that allows us to buy at extremely discounted rates off say a premium direct buy. That said - if all of our audience reports came back showing the users were on "x" web site, I guarantee you - I'd be buying more premium.</p> </blockquote> <p>Put simply, advertisers can use programmatic to reach large numbers of members of specific audiences across many properties. Because they know which users are members of those audiences, and have some idea what they're worth, and the publishers don't, there is information asymmetry that leaves publishers at a disadvantage.</p> <h3>A threat to the programmatic ecosystem?</h3> <p>For now, advertisers clearly have the upper hand. After all, "he who has the gold makes the rules." But if over time publishers don't see tangible financial benefits from programmatic, it could pose a threat to the burgeoning but still-nascent programmatic ecosystem. </p> <p>Fortunately, there are signs that the market's evolution could make programmatic more equitable for publishers.</p> <p>First, more and more premium publishers are creating private exchanges, and with research indicating that ads on premium properties <a href="https://econsultancy.com/blog/68086-ads-on-premium-sites-drive-67-greater-brand-lift/">deliver significantly higher brand lift</a>, publishers with viable private exchanges have what appears to be a legitimate value proposition.</p> <p>Second, technology advancements could benefit publishers. For example, <a href="https://adexchanger.com/ad-exchange-news/header-bidding-goes-server-side-6-things-know/">server-side header bidding could change auction dynamics</a> in ways that result in publishers realizing much greater revenue.</p> <p>So while publishers might have reason to be skeptical about or frustrated with programmatic, those that are strategic and make smart moves could soon find that programmatic is a boon for them too.</p> <p><em>For more on this topic, read:</em></p> <ul> <li><a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic/"><em>The CMO's Guide to Programmatic</em></a></li> <li><a href="https://econsultancy.com/blog/68687-my-nightmare-trying-to-understand-header-bidding/"><em>My nightmare trying to understand header bidding</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68742 2017-01-27T11:16:58+00:00 2017-01-27T11:16:58+00:00 Three common pitfalls in programmatic buying Lori Goldberg <p>Without an eye for the nuance, or a thorough understanding of a few key components of programmatic buying, advertisers run the risk of making pitfalls that create negative experiences while wasting ad dollars. </p> <p>Here's a summary of three common pitfalls.</p> <h3><strong>Not understanding the nuance behind the data</strong></h3> <p>One thing that is incumbent on media planners and buyers is to choose the right data for each campaign. We’ve all had moments where we realize we’re being served an ad for something that is completely irrelevant — in fact, just last week I was getting ads for puppy food, even though I don't own a dog. </p> <p>In order to avoid this kind of misstep, it’s critical to understand where data providers are sourcing their inventory. At the most basic level, advertisers need to know if their data provider is a reseller or if they are working with first-party proprietary data and if that data is verified. </p> <p><img src="https://assets.econsultancy.com/images/0008/3442/dog_food.jpg" alt="" width="724" height="483"></p> <p>While most data providers believe that their data set is superior, it’s important to dig deeper to consider the nuances of the data set. Knowing what kind of data will make a great source for their campaigns can help marketers have a more sophisticated view of how their data can impact campaign performance. </p> <p>For example, when working with registration data, having an understanding of the consumers’ motivations for being on that list can shed insights into whether or not that data set is the right set for the campaign.</p> <p>If the end user has particular motivation to answer questions inaccurately (e.g. data from a dating website), campaign impressions might not yield the targeted user experience advertisers were hoping for. </p> <p>Yet when we align data sources with the targets of the campaign, we can create powerful fuel for relevant ad experiences. For example, one of Silverlight Digital’s travel clients, a tourism department for a Caribbean island, has been able to source data from travel networks that partner with two of the most popular airlines that fly to the island.</p> <p>Understanding not only what kind of data, but also the end consumers’ motivation for being part of this data set, tells us that they are likely to shop with these airlines and are likely to want to travel. Ultimately this is the ideal experience for both the marketer (targeting accurate impressions) and the consumer (great user experience).</p> <h3><strong>Not understanding where consumers are in the buying cycle</strong></h3> <p>Another area where we see advertisers missing opportunities in programmatic is not properly understanding how frequently consumers need to be targeted within the context of the product.</p> <p>A great example of this is a recent trip I took to Santa Monica. At the time of this writing, only eight weeks have passed and now I’m being retargeted by hotels and travel deal sites that are offering packages on a return trip to Santa Monica. While I had a great time, I’m not likely to go back across the country eight weeks after I just visited.</p> <p><img src="https://assets.econsultancy.com/images/0008/3440/Santa_Monica.png" alt="" width="650" height="368"></p> <p>If these advertisers understood the buying cycles of their consumers, they might hold off and re-target again in 6-12 months when I’m more likely to be considering a new trip.</p> <p>Continuing with this example of my recent trip, I noticed one of the advertisers that was re-targeting me was the hotel that I stayed in during my trip, offering a discount if I “complete my purchase” and book with their hotel.</p> <p>If they were to cross-reference their data with recent customers, they would know that I’ve already stayed at the hotel and would be able to serve me an ad that feels more customized (i.e. come back to Santa Monica!). Advertisers should take the time to cross-reference their data so that they save ad dollars and don’t waste impressions. </p> <h3><strong>Not capping the frequency </strong></h3> <p>Understanding the optimum number of impressions can not only boost campaign performance, but also prevent waste. According <a href="http://digiday.com/agencies/ad-techs-frequency-cap-problem/">to DigiDay</a>, “bad frequency management is costing digital marketers billions of dollars a year.”</p> <p>Research published in DigiDay showed that "64% of impressions were out of frequency, and no advertiser had fewer than 60% of its impressions delivered beyond their cap." What this means is that marketers are annoying consumers, and wasting lots of ad dollars while doing it. </p> <p>Often caps are neglected and never tested because they’re not straightforward, but not knowing what optimal frequency cap to use can give poor results. Running A/B tests to understand ideal frequency isn’t necessarily easy, but it is an imperative part of the process. </p> <p>Properly evaluating data sources, tailoring the campaign to the product lifecycle, and targeting consumer buying behavior is the key to creating successful and powerful programmatic campaigns. </p> <p><em>For more on programmatic, check out these Econsultancy resources:</em></p> <ul> <li><a href="https://econsultancy.com/training/courses/programmatic/"><em>Programmatic Training Course</em></a></li> <li><a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic/"><em>The CMO's Guide to Programmatic</em></a></li> <li><a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/"><em>A super accessible beginner’s guide to programmatic buying and RTB</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68578 2016-12-01T12:12:39+00:00 2016-12-01T12:12:39+00:00 The Weather Company on programmatic, ad fraud, and how extreme conditions affect business Olivia Solon <h4> <em>Econsultancy:</em> What proportion of The Weather Company’s ad sales are done programmatically?</h4> <p><em>Jeremy Hlavacek:</em><strong> </strong>There are two sales channels at The Weather Company. We have our direct sales organization and then I run the side of the business where we put our inventory up for sale through online platforms and exchanges.</p> <p><img src="https://assets.econsultancy.com/images/0008/1975/Jeremy_Hlavacek.png" alt="" width="246" height="194"></p> <p>It’s about half and half at the moment and the trend is towards more programmatic. </p> <h4> <em>E:</em> How do you make sure that your programmatic sales don’t cannibalize direct sales?</h4> <p><em>JH:</em> We’ve spent a great deal of time looking at yield and pricing across the two channels. From our point of view it doesn’t matter if an advertiser wants to buy through a human being and a handshake or a technology platform as long as the inventory is priced appropriately.</p> <p>The second part is that both me and the gentleman who runs direct sales report to the Chief Revenue Officer, who can see the performance of both channels and make strategic decisions.</p> <p>He may want one client to buy through automated platforms and another to buy through direct sales channels, maybe because of the client relationship or the type of buy they want to execute, but both divisions are on equal footing. </p> <h4> <em>E:</em> Some media companies think of using programmatic for unsold inventory. What do you make of that?</h4> <p><em>JH:</em> That’s an outdated way of looking at the business. At this point we see lots of premium advertisers who want to use automation technology to execute their buys.</p> <p>As long as the price works with the yield model we have no problem with that.</p> <p><img src="https://assets.econsultancy.com/images/0008/1976/weather_channel_map.png" alt="" width="800" height="413"></p> <p>We are finding that inventory can be worth even more when we sell it through automated platforms. When a buyer uses a DSP [demand side platform] they can get very precise with the impressions they want to buy so they get good return on investment. </p> <h4> <em>E:</em> What data points can you use to target consumers more accurately?</h4> <p><em>JH:</em> As a weather company we are unique in that we have many first-party data sets, primarily weather and location data.</p> <p>If a beverage advertiser wants to advertise they can use typical programmatic tools to identify the audience of, say, young men between 25 and 35 on the weekend when they are more likely to drink beer.</p> <p>We can then tell them when it is hot and sunny in New York City that’s a good time to run Budweiser ads for drinking a beer on the beach or whatever.</p> <p>Or if it’s cold and stormy in Chicago but it’s football season, it might be a good time to run a beer ad with a different message like “stay inside and watch the game with your friends and enjoy a Budweiser.” </p> <h4> <em>E:</em> Earlier this year the east coast of the United States had to deal with Hurricane Matthew, how does such a major weather event affect your job?</h4> <p><em>JH:</em> To really understand how publisher yield management works for digital properties a hurricane is a great unusual use case.</p> <p>In media traditionally lots of planning goes into forecasting inventory, understanding how many impressions you’ll have and selling those out in advance. That works well for our direct sales business.</p> <p>However, when a hurricane, snow storm, heatwave, tornado or other major weather event hits, it’s not unusual for us to see anywhere from a 200% to a 400% increase in traffic.</p> <p>It’s almost impossible to forecast that with enough precision to sell directly, so it’s really beneficial to have programmatic as we can immediately put that inventory up for sale in an exchange and monetize it. </p> <h4> <em>E:</em> What is the biggest challenge facing the programmatic industry?</h4> <p><em>JH:</em> One problem that has arisen in this space is <a href="https://econsultancy.com/blog/67659-three-things-that-show-the-scale-of-the-ad-fraud-challenge/">ad fraud</a>. Companies running the exchanges have perhaps been a little bit liberal in terms of who they let into that exchange.</p> <p>This means advertisers are spending good money on properties that are either very long tail, have non-human traffic or might not have highly viewable ads. </p> <h4> <em>E:</em> How does this affect your own business?</h4> <p><em>JH:</em> The good news is that advertisers are getting a lot more serious about that issue to the benefit of companies like Weather, which can offer premium inventory at scale without any of the worries of fraud, viewability and non-human traffic.</p> <p><img src="https://assets.econsultancy.com/images/0008/1977/weather_channel_map_2.png" alt="" width="800" height="399"></p> <p>We can give advertisers what they want: efficiency through automation and targeting through data. We want people to buy real legitimate impressions.  </p> <h4> <em>E:</em> How can the problem of ad fraud be solved?</h4> <p><em>JH:</em> It’s gone on in media for a long time if we’re honest – from the early days of TV and print. That’s why third-party verification companies like Nielsen were invented, to track exactly what was served.</p> <p>This is just a case of the programmatic industry growing up and recognizing it needs to be held to the same standard as other media.</p> <p>When it was a new and disruptive emerging industry maybe it didn’t matter as much, but now $20bn+ is being spent in programmatic ad technology it’s not okay to say, “We’re going to let this slide.” The stakes are too high.  </p> <h4> <em>E:</em> What are some of the innovations in programmatic?</h4> <p><em>JH:</em> It really grew out of web display inventory and the targeting technology has been pushed to the limit, but there is a huge opportunity in mobile.</p> <p>On the web side we have cookie targeting, but that doesn’t exist for mobile in-app inventory.</p> <p>We know there are huge audiences there, but advertisers haven’t figured out how to use data to target yet, so they are dumping most of their dollars into Facebook or Google.</p> <h4> <em>E:</em> How do you solve the mobile targeting problem?</h4> <p><em>JH:</em> To me the key is data. Look at web. People used to buy impressions blindly and would use the site as a proxy.</p> <p>So to reach young men they would probably buy ESPN, but then you would also reach women who may not be in your target so would be wasting your dollars.</p> <p>Weather.com, the New York Times and other brands also have large audiences of young men. So we need to move away from contextual targeting where companies’ brands represent the audience towards truly defined audience targeting. </p> <h4> <em>E:</em> What’s the future of programmatic?</h4> <p><em>JH:</em> In 2017 we’re looking at ways to apply our data across all media. Display is great but social advertising, outdoor advertising and TV advertising are very powerful.</p> <p>There’s no reason why our data shouldn’t be effective across all channels, but it’s early days. The operational systems behind all these media channels are very different from what we do to put an ad on a website.</p> <p>That’s an area where the industry needs to get smarter. Once you master the ad serving technology, you can then think about targeting programmatically. </p> <p><em>For more information on this topic, check out these resources:</em></p> <ul> <li><a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/"><em>A super accessible beginner’s guide to programmatic buying and RTB</em></a></li> <li><a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic/"><em>The CMO's Guide to Programmatic</em></a></li> <li><a href="https://econsultancy.com/training/courses/programmatic/"><em>Programmatic Training Course</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68405 2016-11-15T13:56:48+00:00 2016-11-15T13:56:48+00:00 The programmatic hiring challenge: How to find and retain talent? Ben Davis <p>Here are some thoughts on the issue.</p> <h3>Writing new and tricky job descriptions</h3> <p>Whether a publisher developing their own sell-side team or an advertiser hiring a buying team skilled in targeting audiences, this stuff is (fairly) new.</p> <p>Many of these organisations are at a standing start and need to find employees that understand sophisticated platforms and their integration.</p> <p>Working with specialist recruiters may be vital in the first instance.</p> <h3>Finding people with soft skills and technical nous</h3> <p>For programmatic sales jobs, you ideally need a mix of two personalities.</p> <p>The most suitable candidates are media-sales people who are smart enough to understand programmatic disruption and are motivated by continually evolving technology.</p> <p>Likewise, when hiring more tech-minded people to work in operations, you should also look for <a href="https://econsultancy.com/blog/64780-have-changes-in-modern-marketing-led-to-a-soft-skills-revolution/">softer skills</a>, awareness of customer needs and of the bottom line.</p> <p>With programmatic advertising often challenging existing advertiser behaviours, new hires need to have this combination of soft skills and technical nous in order to educate customers.</p> <p>On the buy-side, too, whether agency or in-house, candidates must understand about getting the most bang for buck, but will also be tasked with defining and documenting best practice, collaborating with other teams and educating internally.</p> <p>What does this look like in the real world?</p> <ul> <li> <strong>Great communication:</strong> The ability to convey fairly abstract concepts and tell the story of programmatic both to stakeholders and the wider industry.</li> <li> <strong>Strategic thinking:</strong> Long term understanding of customer objectives within the programmatic world but also as a part of wider marketing and advertising.</li> <li> <strong>Media planning experience:</strong> Knowledge of ad formats, viewability, inventory, data management platforms etc.</li> <li> <strong>Measurement and optimisation experience:</strong> Tracking, troubleshooting and reporting.</li> </ul> <h3>Investing time and money in staff</h3> <p>Even when you find the right person for your team, the intricacies of different platforms means it takes time before they bed in.</p> <p>The danger for companies is that they get into a cycle of recruiting, training and then losing people from programmatic roles.</p> <p>Staff retention is important for any company trying to innovate with media. Recent emphasis on the role company culture plays in <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a> has meant many organisations have invested in this area.</p> <p>From the use of personal devices, to remote working, more money for training and office perks, as well as finding <a href="https://econsultancy.com/reports/effective-leadership-in-the-digital-age/">the right digital leaders</a> that can both inspire and listen to the workforce.</p> <p>Short-termism is the enemy here.</p> <h3>Doing a good PR job for programmatic</h3> <p>One of the problems remains an issue of PR.</p> <p>Media has no problem in attracting intelligent young people away from other industries or studies, but to what extent is programmatic advertising a draw?</p> <p>Agencies and the advertising industry as a whole perhaps need to paint a better picture of this new technology, one that hasn't yet fulfilled its potential but may shape the future of advertising and creative.</p> <p><em>For more information on this topic, see:</em></p> <ul> <li><a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/"><em>A super accessible beginner’s guide to programmatic buying and RTB</em></a></li> <li><a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic/"><em>The CMO's Guide to Programmatic</em></a></li> <li><a href="https://econsultancy.com/training/courses/programmatic/"><em>Programmatic Training Course</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68227 2016-08-25T11:52:00+01:00 2016-08-25T11:52:00+01:00 What is the Financial Times' approach to programmatic advertising? David Moth <p>Sacha Bunatyan, global B2C marketing director at the Financial Times, is among the expert speakers who will be in attendance.</p> <p>Ahead of Get With The Programmatic, we spoke to Sacha to get her views on how the FT uses programmatic and how the technology has impacted the marketing industry. </p> <p>You can watch her answers in full in this video, and I’ve also summarised them below.</p> <p><iframe src="https://www.youtube.com/embed/UEZ89uB1bLs?list=PL1-kPkZBw50FexVdl4i94-lQdSVnsN7A1&amp;wmode=transparent" width="640" height="360"></iframe></p> <h3>How has the FT used programmatic to promote the brand and sell subscriptions?</h3> <p>According to Sacha, programmatic advertising is hugely important to The FT, as demonstrated by the fact that it recently appointed Elli Papadaki as head of programmatic sales.</p> <p>Furthermore, The FT’s chief data officer sits on the board of directors and the company employs more than 30 <a href="https://econsultancy.com/blog/67203-data-analysts-vs-data-scientists-what-s-the-difference/">data scientists and analysts</a>.</p> <p>To ensure this analytical talent is not wasted, the subscriptions and ad sales teams work closely together using “one set of data, one set of segmentation.”</p> <p>At Get With The Programmatic, Sacha will be able to discuss a programmatic campaign that resulted in a 300% uplift in subscriptions versus the average week. </p> <h3>What do you think makes for an effective programmatic campaign?</h3> <p>Sacha said that effective campaigns require the right balance of a strong message combined with effective use of media.</p> <p>The data and insights that come out of each campaign should then be evaluated to aid ongoing optimisation and improve decision-making.</p> <h3>How do you think agencies should be responding to brands bringing programmatic in-house?</h3> <p>The thorny question of how agencies fit into the programmatic landscape is one that <a href="https://econsultancy.com/blog/66639-the-boom-of-the-programmatic-gong/">we’ve discussed a lot in the past</a>.</p> <p>Sacha said there is “no one-size-fits-all approach”, and the trend at the moment is for businesses to take greater control of their data in order to better understand their audiences.</p> <p>At the same time Sacha describes the agency role as “multifaceted”, with the core expertise being in connecting brands with the right media.</p> <p>In future she predicts that we’ll see a hybrid solution where brands will invest more in core competencies and link up with agencies for key partnerships around specific projects or campaigns.</p> <p>For The FT, a good agency partner is one that can offer a custom, tailor-made approach.</p> <p><em><strong>To learn more about the FT’s approach to automated media buying, come to <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With The Programmatic</a> in London on September 21st.</strong></em></p> tag:www.econsultancy.com,2008:BlogPost/68210 2016-08-22T14:57:44+01:00 2016-08-22T14:57:44+01:00 How programmatic advertising is helping drive the digital transformation agenda Seán Donnelly <p>By combining automation and data, programmatic can enable marketers to make use of everything they know about their audience to send them personalised advertisements and customised messaging in real time.</p> <p>For this reason, the implications for marketing professionals, marketing departments and <a href="https://econsultancy.com/blog/68066-top-100-digital-agencies-2016-the-state-of-the-industry/">the agency landscape</a> are revolutionary. </p> <p>The reality though is that many marketers have been slow in getting to grips with this new approach.</p> <p>To try and understand why, I caught up with Head of Digital at Disrupt the Market Ltd and Econsultancy trainer Andy Letting. </p> <p>Andy, an established senior digital leader, has worked across a range of digital transformation projects supporting traditional businesses to adapt to the fast paced world of digital marketing.</p> <p>He will be delivering a programmatic workshop prior to Marketing Week and Econsultancy’s <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get with the Programmatic 2016</a>, taking place on September 21.</p> <h4>Programmatic has been around for several years now. Is there are a reason why some organisations have been hesitant about making it a part of their marketing activities? </h4> <p>“If I put a digital hat on, the process is straightforward in terms of data and technology. </p> <p>"For marketers schooled in traditional marketing and non-marketers within a business, it might be easy to get confused by the vocabulary used to describe programmatic and so it can be difficult to get your head around. </p> <p>"My background is all digital and so I am used to thinking about data, reaching the right audiences and rigorous measurement.</p> <p>"I can however understand how programmatic may not have evolved as quickly within mainstream marketing departments due to organisational structures, marketing skillsets and leadership teams which may not have come from a digital background."</p> <h4>Digital transformation is a topic that we spend a lot of time thinking about at Econsultancy. Is it fair to say that programmatic is another lever driving the transformation agenda? </h4> <p>“Digital is disruptive by its own nature; whether that's from a customer’s perspective or within an organisation.</p> <p>"I think programmatic could be seen as disruptive within the media buying space but then again digital as a whole is disruptive. Mobile has been disruptive for many years now.</p> <p>"There are different areas of digital from website design, media buying, tracking customer journeys, operations and ecommerce.</p> <p><em>A hub and spoke model for organisational structure</em></p> <p><img src="https://assets.econsultancy.com/images/0007/8319/hub_and_spoke.png" alt="" width="336" height="323"></p> <p>"Programmatic is just another iteration that to some extent is simplifying a way of buying media that was fairly clunky and not straightforward."</p> <hr> <p>Andy makes a good point. Programmatic is another step along the path to <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a>.</p> <p>Another theme that regularly surfaces from Econsultancy research, analysis and client discussions is the requirement to become more customer centric.</p> <p>A key barrier in becoming more customer centric cited by many businesses is that of organisational structure. </p> <p>Econsultancy publishes a very popular report called “<a href="https://econsultancy.com/reports/digital-marketing-organisational-structures-and-resourcing-best-practice-guide/">Digital Marketing: Organizational Structures and Resourcing Best Practice Guide</a>” which offers guidance to companies on organisational restructuring and digital transformation.</p> <p>The report first came out in 2011 but has been revised since. Among other things it proposes a digital maturity model which has five stages of evolution:</p> <ol> <li>Dispersed</li> <li>Centralised</li> <li>Hub and spoke</li> <li>Multiple hub and spoke</li> <li>Fully integrated</li> </ol> <p>The end vision for ‘digital’ is essentially that it becomes so much part of the organisation that it ceases to exist as a separate function.</p> <p>Many organisations though, are currently somewhere between the centralised and hub and spoke stages. This means that they still have separate marketing and digital teams.</p> <p>I asked Andy how the separation between digital and marketing teams might impact upon the effectiveness of programmatic campaigns.</p> <hr> <h4>You mention the separation of digital and marketing teams. Could there be an issue where programmatic campaigns are run separately to other marketing initiatives?</h4> <h4>Or could there be an issue where digitally minded people are able to structure a programmatic campaign but may not have the same marketing and commercial awareness as their colleagues in the marketing team? </h4> <p>“Yes that's a good point. From my experience programmatic has always been a nice to have. I've generally seen it sit within the digital team.</p> <p>"How closely the digital team works with the marketing team depends upon the organisation.</p> <p>"I think you'll find that because it's perceived as technical, you will find traditional marketers may be wary either because of a lack of exposure or knowledge. </p> <p>"As digital becomes more immersed within the marketing department and the marketing framework, we still start to see the two working in more harmony. </p> <p>"Until digital is fully integrated into the business and the marketing team has been skilled up on digital, that knowledge gap and challenge will remain.</p> <p>"The reality is you need both. You need to know who your customer is and also the technical know-how of how to reach those people.</p> <p>"If you take an FMCG company like P&amp;G or Unilever that owns multiple brands, one approach to integrating programmatic into other marketing activities may involve testing.</p> <p>"One brand could test programmatic by having an internal sponsor who can put the building blocks in place and take other business stakeholders on a journey. </p> <p>"Ultimately though, programmatic is all about focusing on the customer and pulling together skillsets within the organisation to reach that customer in ways that you haven't done before.</p> <p>"That means getting brand buy in and support. You will also need to bring together legal and data teams.”</p> <h4>In <a href="https://econsultancy.com/reports/quarterly-digital-intelligence-briefing-2016-digital-trends/">Econsultancy’s 2016 Digital Trends report</a>, 7 out of 10 marketers said that optimising the customer journey across multiple touchpoints was going to be very important for their marketing over the next few years.</h4> <h4>Is there an opportunity for programmatic to serve different kinds of advertising depending on where somebody is along that journey? </h4> <p>“So there are a number of things here. Of course, advertising needs to be relevant.</p> <p>"If you are in the infancy of your programmatic journey, you will have your lookalike models, CRM models and your prospecting models and you'll put them into the data pot (DMP) to try and get them all to work together. </p> <p>"I think the reality is that relevance is the utopia but at the same time that is only as good as your data.</p> <p><img src="https://assets.econsultancy.com/images/0007/8318/touchpoints.png" alt="" width="700" height="583"></p> <p>"From my experience, a lot of brands have really struggled in terms of getting <a href="https://econsultancy.com/blog/65425-what-is-the-single-customer-view-and-why-do-you-need-it/">a single customer view</a> and (so) have been very reliant on partnership data, second-party data and even third-party data.</p> <p>"Ultimately where the real value lies is in creating unique data sets that are so refined to that customer and that need that ultimately you are driving greater conversion and greater revenues.</p> <p>"There are many different scenarios that you play out that you then have to adapt and make use of the learnings. For instance, programmatic buying on Facebook is probably one of the most advanced in terms of data available.</p> <p>"The data that Facebook has on people is phenomenal. That's why there's this huge head-to-head between Facebook and Google. </p> <p>"My point is that programmatic can help marketers to see opportunities. For example, you can do A/B testing and seed videos on Facebook for 24 hours.</p> <p>"Then, Facebook can scale up the video that gets the most traction after 24 hours to meet your budget automatically. It's all done in an automated fashion. </p> <p>"Also, what can actually happen is that brands find out that they've inspired audiences that they never knew were interested in their brand and so suddenly they get all of this insight back from testing that can completely reshape their customer profiling and awareness. </p> <p>"For me it's about bringing that insight back into the business to reform campaigns.”</p> <h4>If marketers are going to launch and optimise ad initiatives as opportunities emerge, does this suggest that the process of setting advertising budgets on quarterly cycles may not be appropriate for managing campaigns that need to be managed in real time?</h4> <p>“The Financial Controller will give you a budget but it’s important that you make some of that budget available for some sort of innovation. You take a percentage of your budget and that's your innovation pot.</p> <p>"If you don’t make budget available for testing, you won’t be able to benefit from programmatic and other new tactics."</p> <hr> <p>As organisations continue to respond to digital and the opportunities available through tactics like programmatic, we can expect to see a new marketing model that marries the ability of marketers to think creatively with the precision of utilising multiple data sets to create a single customer view and deliver automated campaigns that can be adapted on the fly.</p> <p>For this reason, marketers may need to embrace programmatic and the opportunities it brings or they risk being left behind.</p> <p>To continue your programmatic education, why not attend <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get with the Programmatic</a>, Econsultancy and Marketing Week’s conference on the topic, taking place on in London on September 21.</p> tag:www.econsultancy.com,2008:BlogPost/68198 2016-08-17T10:06:00+01:00 2016-08-17T10:06:00+01:00 How ‘people-based marketing’ is redefining effectiveness in programmatic ad buying Maeve Hosea <h3>How is programmatic allowing you to move forward with your advertising strategy?</h3> <p>Crucially, programmatic enables us to have more transparency.</p> <p>Historically, we didn’t get a lot of information out of the media buys we were doing through large media agencies.</p> <p>We weren’t aware of where the inventory was being served and therefore unable to learn about where customers were and what type of messaging and content they were interacting with.</p> <p>We were paying lots of money but not taking the learnings away from it in terms of how to optimise – spending hundreds of thousands but none the wiser.</p> <p>The advantage of programmatic is that you are making that investment, you are seeing media buys that are working, how that changes over the course of a year, how it is affected by seasonality and so forth.</p> <p>That is then valuable knowledge that the business retains.</p> <h3>What do you think are the most exciting programmatic developments across media?</h3> <p>The line Facebook is currently touting about people-based marketing is something that I am passionate about.</p> <p>The programmatic solution in Facebook today means you can upload lists and very specifically target people.</p> <p><em>MBNA has been buying Facebook ads programmatically</em></p> <p><img src="https://assets.econsultancy.com/images/0007/8109/MBNA_programmatic_ad.jpeg" alt="" width="715" height="449"> </p> <p>So it seems it is only a matter of time before we see the next evolution of programmatic display, TV buying and whatever else programmatic evolves into.</p> <p>Programmatic will increasingly become about audiences rather than cookies and pixels.</p> <h3>What can you say about fraud and the challenge that poses?</h3> <p>Fraud as an issue is ever-evolving. We have to watch that just as we have to watch ad blocking and anything else that fundamentally changes the area we are operating in.</p> <p>Our way of dealing with it has been to change our success metric. We have been working on changing the KPI to look at incrementality as a way to help mitigate risk from fraud.</p> <p>We are now using our non-viewed display conversions – of which we have a lot, like everybody else – to get our baseline conversion rate.</p> <p>Success is the incremental between the impressions we serve that don’t get viewed and the impressions that do get viewed.</p> <p>That shows us the true performance of our display advertising.</p> <h3>Where do value, creativity and effectiveness meet?</h3> <p>For us it is about [defining the right audience segments for a campaign] but it is also about tailoring the message to what we know about people.</p> <p>My approach, with our provider Infectious Media, is to think about different treatments where advertising is more likely to resonate with people, based on information that I can acquire from across social or various third parties.</p> <p>Programmatic is a strange field in that it increasingly requires numbers people but ultimately the output for all those numbers and analysis – the segmentation that you are running – is still creative and requires creative people.</p> <p>We do some of that work in-house but we also reach out to specialist agencies to push the boundaries of creative thinking.</p> <h3>Which media channels are next for programmatic and why?</h3> <p>The obvious one is TV. The guys at Sky are kind of there with AdSmart but it is a little on the expensive side.</p> <p>You would think that the players will bring that element to the table soon enough and we are going to be able to buy TV advertising programmatically.</p> <p>That is the challenge for the industry: helping people feel a bit better about marketing by delivering marketing that is more aligned to their wants, needs and interests.</p> <h3>What are the pressing issues in the programmatic sphere moving forward?</h3> <p>Cross-device marketing is crucial. There are lots of people trying to do deterministic measurement models within display advertising [where a consumer is identified by linking browsing behaviour with personal login data] and I have a big issue with a way a lot of those are set up.</p> <p>I am not convinced by the accuracy or transparency that sits within that. It is still a bit of a bugbear and I think the industry still has a lot of work to do on solving that cross-device piece.</p> <p>Programmatic needs to evolve by moving away from cookies and pixels and I think the people-based marketing approach has the power to tip the whole industry on its head.</p> <p><em><strong>Back for a third year, Marketing Week and Econsultancy’s <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With the Programmatic</a> conference and workshop will take place in London on 20 and 21 September. </strong></em></p> <p><em><strong>Nic Travis is one of the brand experts sharing insights into how to make the programmatic landscape work for you.</strong></em></p> <p><em>This article was originally <a href="http://www.marketingweek.com/2016/08/16/how-people-based-marketing-is-redefining-effectiveness-in-programmatic-ad-buying/">published on Marketing Week</a>.</em></p>