DSPs and relevance to marketers

ad:tech Bangalore

Sep 27th 2012

Praseed Prasad

A DSP, as the name implies, is a Demand Side Platform.

It means applying data and technology in order to improve the value and performance of media inventory that is bought, using data

that is collected from ad servers of past campaign management or simply acquiring

from third party.

What is a DSP?

1.

Collect Data

2.

Profile User

3.

Deliver Ad

Fastest growing medium – 2000 Cr of Advertising

Source: GroupM TYNY

• 30% of Digital advertising is bought for performance and not brand building. If we include search, then it is close to 80%

What do marketers want?

Better Targeting

Better Performance

Not new to media..

Finer Targeting More expensive

Mass and therefore cheaper

Yes, digital media is complex..

Audience targeting : A combination of both

data and inventory

Data Inventory Audience

Smarter Target

Smarter Reach Right Results

Data +

Media +

Creative +

Rules

Dat

a Ex

chan

ge M

edia Exch

ange

90210

(313)

Today’s model

Commercial messages reach users randomly

Homepage

Homepage

Audience clusters are beyond demographics

Advertising is audience based, not

placement driven

Benefit to marketers

11

• Wastage minimization = Better ROI

• Better utilization and leverage of data assets

• Real time dynamic budget allocation

• Behavioral optimization across inventory

• Transparency and better control

What’s required A mindshift

Old world New world

Placement centric approach Audience centric approach

Media planning Audience planning

Standardised messages Individualised messages

Labour intensive Technology-driven

Will the old world survive?

13

2 pieces of advice..

1. Invest in Data

number of clicks

pe

rfo

rm

an

ce

pre

cisio

n

The more clicks collected the better the prediction for a target

group with higher performance results

Cookie 1

Cookie 2

Cookie 3

Probability to Click

10%

9,9%

5,1%

Cookie x 0,1%

… …

… …

CTR

Reach

2. Don’t chase Reach; get effectiveness

Questions..