digital media and analytics - merkle inc....digital media and analytics how to leverage a powerful...

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Digital Media and Analytics

How to leverage a powerful new set of

techniques for digital media buying and program

measurement to drive business results


CRM Drives Competitive Advantage

2

We believe market leaders drive

competitive advantage through the ability to

understand, influence, measure consumer

behavior at the individual level but at mass

scale.


Risk and Opportunity…

• Growth Digital media spend is big and growing proportionately bigger

• Capability The technology has dramatically leapfrogged the current model

• Skillsets The data driven know how to exploit that advancement already exists

3


The Market Shift

4

Cu

rren

t Market

Toolsets

Knowhow

Toolsets

Knowhow

Me

dia A

d Te

ch&

CR

M K

no

wh

ow

Competitive Advantage


Merkle Media Trading Desk

Merkle CDI

Capabilities

DYNAMIC CREATIVE

DSP

ATTRIBUTION

DMP

AD VERIFICATION

Merkle Media Trading Desk

INVENTORY

Advanced Retargeting Data Validation Services

Lead Scoring

DATA PROVIDERS

Exchanges/SSPs

Data Providers

Direct Publishers

5


Media Planning

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Display Media Plan

One

Platform

Cross sell & upsell

Prospecting

Winbacks

Display Media Plan

Many

Vendors

Ad.com

Collective Media

Tribal Fusion

Old Media Planning New Media Planning

@MerkleCRM #digex2012 Join the Conversation @MerkleCRM #digex2012 @MerkleCRM #digex2012 Join the Conversation 7

The Engine

Ari Buchalter, Caltech Astrophysicist PhD

@MerkleCRM #digex2012 Join the Conversation 8

Serving a Single Ad

• 10s-100s of variables

• Highly nonlinear

• Dynamic

• Real-time

Geo

User History

Frequency

Offline History

User data

Publisher Time of Day

Channel

Ad Size

Media data

Day of Week

Creative

Message

Offer

Ad data

Predicted Response Rate x Buyer’s Goal Value = Bid CPM

Over 20B impression opportunities per day in

display alone!


The Science behind the Engine

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An algorithmic machine-learning approach is necessary to optimize display media


Revving the Engine within a Channel

Connecting the dots

across ads is as important as knowing what each

impression is worth

The fact that users see multiple ads opens up other optimization opportunities:

• Exposure tracking

• Message sequencing

• Dynamic creative

• Partial attribution


Full Throttle: Multi-Channel Optimization

Beyond 2012, even more channels are addressable

(DOOH, IPTV, etc.)

Display Search

Mobile Social

As we move beyond 2011, optimization within one channel won’t be enough, as users interact with brands across digital channels

Additional focus is needed on:

• Cross-channel tracking

• Multi-channel optimization

• Cross-channel attribution & decisioning


The Analytics

Peter Vandre, MIT Economist


Effective Measurement

13

New Media Targeting= Rocket Science

Now some advice to actually start measuring this stuff • Get started- basic improvements on last click attribution • Cross media testing • Attribution modeling • Tackle offline to online


Better Direct Attribution

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View Thru 1

2nd Click

1st Click

View Thru 2

60%

20%

15%

5%

1. Play around with your attribution assumptions—How sensitive are they?

2. Focus on refining view thru window assumptions

3. Analyze and test interactions across media types

Analysis Priorities

Last Click

Look Familiar? Closer to Reality

Your Other Media


Testing to Improve Measurement

Goal: Estimate Incremental impact of paid search terms

Situation: • Major retailer • High % of spend on

branded paid search • How much is really

incremental?

Outcome:

• Estimate 40% cannibalization between Paid and organic search

• Adjust keyword values accordingly in targeting

Shut off SEM Compare to post period

Incremental= Est. organic orders- actual organic

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Solution • Branded keyword

blackout test


Modeling to Improve Measurement

16

Goal: Estimate Incremental performance for each digital campaign

Situation: • Major Financial

Services Company • Huge brand spend • What is ROI of digital

media?

Outcome: • Ongoing incremental

campaign estimates • Rebalancing between

top/bottom of funnel

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Incremental Impact

Search

Agg Lead Gen

Agg Ins

Video

Display

Solution: • Attribution modeling • Campaign level reporting


Modeling Offline and Online Interactions

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Goal: Estimate Incremental performance for each digital campaign

Situation: • Financial Services

Company • Large DM program • Wanted to see if

Display could lift DM

Outcome: • Able to measure display lift on

DM program • 17% lift on DM with display

Solution: • Controlled test • Offline to online direct

match • Targeted display and DM

Display Responsive Audiences

DM Responsive Audiences

•95% of US Population •Auction Marketplace

RTB Inventory

Pull Prospect Lists

Database

Target in media DM Only

DM + Display

Display Only

Analyze Results 1 2 3


Impact

Megan Pagliuca, Ad Tech Evangelist


Increased Efficiency

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0%

10%

20%

30%

40%

50%

60%

70%

80%

0%

10%

20%

30%

40%

50%

60%

70%

1 6 11 16 21 25+

Users / Impressions by Frequency for July

Unique Users by Frequency

Undercontacting

•66% of the users see only

one impression

Metric Total Percent

Average # Impression 5

Total Unique Users 10,000,000

Total Impressions/ Month 50,000,000 100%

Optimal Impressions 25,000,000 50%

Questionable Impressions 15,000,000 30%

Waste Impressions 10,000,000 20%

Consolidate Buys to One Platform

Overcontacting

•20% of impressions were being shown

to users with at 50+ frequency

Example 1: Example 2:


Decreased CPA

20

201

221213

200218

169

107 113101

104 119

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$-

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

Targeted Display CPA vs. SpendSpend CPA

Integrated Credit Card Approval Data into Algorithm

Situation: • Fi Serve Advertiser • Decrease cost per acquisition

of new credit card approvals

Outcome: • 5x improvement when offline

data was incorporated in algorithm

Integrated credit card

approval

(Indexed)


Increased Volume High Value Accounts

21

Built Integrate Multi-Channel Acquisition (I.M.A.) Program

CPA

Traditional Agency Program Merkle Data Driven Program

Situation: • Fi Serve Advertiser • Increase # of high value

checking accounts • Increase online and branch

account opens

TIME

Outcome: • 217% decrease in Cost per

New Account • 143% increase in percent of

High Value/Low Value Responders at same budget level


7 Things You Can Do To Improve Your Digital

Media Program Tomorrow

1. Work with the media trading desk that best suits your needs

2. Centralizing execution into a single targeting platform

3. Do not work with partners that don’t give you transparency

4. Ensure site and email data collection allow you to collect offline data at

every opportunity

5. Pass offline conversion and/or value data into online algorithm

6. Ensure measurement & analysis is being done at the impression level,

using just a dsp or ad server aggregate reporting does not give you the

full picture

7. Start testing and thinking about your media budget based on

incremental impact

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Questions???

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Round Table Questions

– Where does the responsibility for Media sit in your organization? How is it connected to CRM activities?

– Are you using an Agency Trading Desk or is your agency working directly with publishers

– Have you started consolidating your data-driven buys? If so, why not?

– What is something you can take back to your office this week to take advantage of some of these changes in the landscape?

– Are you using display to drive offline actions? Why or why not?

– Are you integrating back end metrics into display targeting?

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Ari Buchalter

COO, Mediamath 646.840.4203

[email protected]

Megan Pagliuca

VP, Digital Media .212.790.1569

[email protected]

Peter Vandre

VP, Digital Analytics 443.542.4345

[email protected]

digital media and analytics - merkle inc....digital media and analytics how to leverage a powerful...

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