making programmatic work
Post on 24-Jun-2015
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Making Programmatic WorkAchieving marketing goals through
data and algorithmsFrith Fraser, Director, Platform Solutions, APAC
What is your advertising goal?
Optimizing to Goals, not Guesses
©2014 MEDIAMATH INC. 3
What is your true advertising goal?• The right goal for the right
product• Return on marketing
investment?• Offline
attribution/custom attribution
• Branding engagement metrics• Understanding
audiences• Look beyond the click• Does CPC answer your
marketing goal?
What does the programmatic opportunity look like?
2.5 trillion impressions are available on a monthly basis globally
In the UK, 107 billion monthly impressions
available
In the US, 900 billion monthly impressions
available
In Australia, 40 billion monthly impressions
available
In Japan alone, 93 billion impressions and video units run through MediaMath’s
TerminalOne System monthly
In Brazil, 115 billion monthly impressions
available
Canada
160 million data points
More than 21 billion global data points with over 350 data partners
USA
13 billion data points
France
45 million data points
UK
61 million data points
Germany
42 million data points
Brazil
160 million data points
China
16 million data points
Japan
10 million data points
India
50 million data
points
Australia
24 million data points
Seconds in the average human lifespan?
Ants on planet Earth?
~ 2.5B
~ 1Q
Galaxies in the observable universe? ~ 150B
Quiz time
• 50 billion impressions per day • 200 variables per impression • 100 values per variable
= 1,000,000,000,000,000 pieces of data per day
(1015 = ONE QUADRILLION)
Let’s talk about data in RTB
That’s a whole lot of data.How do we manage this?
Unlocking the chaosAlgorithms
Optimization
Programmati cAutomation
Predictive Modeling
Machine learning
Decision engines
The two buyer questions that matter:
©2014 MEDIAMATH INC. 12
Question 1:What is the right bid for each
impression?
Question 2:Which impressions should I buy?
What price should I pay?
Too high Overpay &
underperform
Too low Lose out &
underspend
Just rightMaximise scale &
performance
What is the right bid for each impression?
Question 1: A simple exercise
xGoal Value Bid Price=Action Rate
What is the right bid for each impression?
JPY1000 prizeJPY500
Bid Price50% chance
Flip a coin to win the prize
1% chance consumer takes desired action
(purchase)
Question 1: The real thing
¥5000 value to advertiser
(CPA)
Bid for an RTB ad
¥50 bid price (breakeven)
Bid Price=xGoal Value Action Rate
Your ad here
What is the right bid for each impression?
A different model for every creative in every campaign of every advertiser – all in real time!
Answering Question 1:
VideoPublisher: YouTubeUnit: 15 sec pre rollTime: 16.46 – 17.00Age: 25-34Gender: MalePrice: JPY1500
SocialPublisher: FBXUnit: NewsfeedDay: TuesdayTime: 5.00pm – 5.15pmPrice: JPY300
DisplayPublisher: RubiconData: Rakuten MaleLocation: TokyoCreative size: 160 x 600Price: JPY300
Question 2: Which impressions should I buy?
• ~100MM/day of RTB supply
• Typical campaign spends ~$1K/day (0.001% of total supply)
• Not buying the RIGHT 0.001% is throwing money away
Answering Question 2: Defining value
Bid Price
Market Price
What it’s worth to me
What I have to payRelative
Value==
• Cheap impressions are not necessarily good
• Good impressions are not necessarily cheap
The benefits
And the results are typically 10x better
Analyze 10-20 buys weekly Analyze 1MM opps. per sec.
Fixed price, regardless of value Variable bidding, aligned with value
Little/no insight into true drivers Full insights into “what” & “why”
Manual, labor-intensive (~50/FTE)
Fully automated, scalable (~5/FTE)
Buy in batch Buy what you want
Key learnings
• Create a strategic programmatic vision
• Set a true goal
• Ensure access to maximum amount of supply
• Ensure the ability to onboard data sets
Key learnings
• Utilise a world-class algorithm• Use a predictive model to determine what each
impression is worth• Use optimisation to determine which impressions
to bid for
• Provide meaningful and relevant analysis to
your client
• Build a knowledgeable and capable team
THANK YOU
ffraser@mediamath.com
@mediamathAPAC
facebook.com/mediamath
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