what programmatic marketing really means for research
TRANSCRIPT
Why programmatic marketing changes everything (and, what it means for
researchers)
Joel Rubinson, PresidentRubinson Partners, [email protected] Blog.joelrubinson.netTwitter: @joelrubinson
October, 2015
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Traditional media buyingMedia accumulates an audience Marketers seek consumers
Nielsen ratings Overall, within demoProfiles of who watchesCost for a 30” spot
Who does Unilever want to reach with their message
Audience accumulated by media Media company responsible for knowledge about the audience Indexing Intuitive matching of audience profiles and marketer segments, aided by optimization
software Direct deals with commitments
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Traditional media buyingMedia accumulates an audience Marketers seek consumers
Nielsen ratings Overall, within demoProfiles of who watchesCost for a 30” spot
Who does Unilever want to reach with their message
Audience accumulated by media Media company responsible for knowledge about the audience Indexing Intuitive matching of audience profiles and marketer segments, aided by optimization
software Direct deals with commitments
All of this changes in a
All of this changes in a
programmatic advertising world
programmatic advertising world
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Quintessential programmatic…real time bidding (RTB), open exchange
1. A user requests a webpage which generates an ad impression serving opportunity
2. Publisher decides to put this impression up for bid via RTB
3. If the advertiser knows something about this user and they are valuable to them, they bid for the right to serve an impression
4. The winning bid serves the creative asset of their choosing
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Programmatic marketing is a big deal
eMarketer pegs programmatic at $15 Billion this year, having grown 50%
Carat reports that, in the US, programmatic transactions will account for 52% of non-search digital advertising spend.
The marketer’s dream…serve the right message to the right user at the right time on the right screen.
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Programmatic is like picking the cashews out of the bowl of mixed nuts*!
Advertisers can pick the audience they want to serve impressions
*Metaphor courtesy of Josh Chasin, Chief Research Officer at comScore
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Programmatic is a sea change in the way marketing works
1. The advertiser amasses the audience based on their own ad serving rules…bottom up approach
2. It is now the advertiser’s responsibility to know each audience member
3. All of this is driven by data, the new competitive fuel4. Better fuel = better performance, making data its own
imperative. a. Boosts the value of first party data.b. Drives marketers to connect the screens using a persistent IDc. Makes content marketing and “always on” marketing strategies
much more important.d. Drives media practices to embrace programmatic everywhere
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The power of data…hypothetical
A browser who, in reality, is a male millennial who buys tooth whitening products, visits Huffington Post, and the instance is put out for bid.
Procter: has this user in their DMP because they visited their web properties and they signed up for e-mails (registration gives accurate demos—first party data.) Working with Datalogix, they know this “browser” buys tooth whitening toothpaste via frequent shopper data.
Colgate: Working with a DMP and data aggregator, they believe this is a male aged 35-44.
Result: Procter will win this bid because what they know about the user makes them more valuable. Marketing efficiency comes purely from the power of data.
If this is repeated over and over, Procter will have a huge marketing efficiency advantage over Colgate, over and above any issues regarding the strength of Crest vs. Colgate
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There is only one way this can go…
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Programmatic change table
Traditional Programmatic
Media owns audience…top down process Advertiser accumulates audience…bottom up process
Media must know audience Advertiser must know something about each user
Buys are pre-established and advertising is scheduled
Advertising can be adjusted in real time by changing bidding and ad serving rules
Buying on context Buying on user characteristics
Decisions based on generalizations Decisions based on tactical user data
Does NOT require data driven marketing DOES require data-driven marketing
Traditional research can guide this Traditional research disconnected from this process
Analytics are retrospective and descriptive Analytics are predictive
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Programmatic implications for marketing researchTraditional Programmatic
Media owns audience…top down Advertiser accumulates audience…bottom up
Media must know audience Advertiser must know something about each user
Buys are pre-established and advertising is scheduled
Advertising can be adjusted in real time by changing bidding and ad serving rules
Buying on context Buying on user characteristics
Decisions based on generalizations Decisions based on tactical user data
Does NOT require data driven marketing DOES require data-driven marketing
Traditional research can guide this Traditional research disconnected from this process
Analytics are retrospective and descriptive Analytics are predictive
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In a programmatic world, Marketing research’s role is to keep marketing strategic, productive, and centered on the human
“I believe in the power of connected ideas”Christian Kugel, Director Marketing Research
and Consumer Analytics, AOL But marketing research must also be
actionable at optimizing tactical actionOtherwise, it will be dismissed as irrelevant
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Segmentation:Are your segments “findable”?Can you build good lookalike models?
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Brand equity:Can you create predictive models using profiling attributes?
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Brand equity modeling must include response modeling
BEijt= f(Aijkt)Predicting brand equity as a function of
attribute ratings R0,1=f(DPi,T,S,…)
Predicting response…clicks or brand equity… from digital profiling, time of ad serving, screen, etc.
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So what’s missing?
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Top priority 1: integrate survey and digital data
We must learn how to integrate digital and survey data together, or what I think of as, “Going beyond the survey”
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Enriching survey data
Lightspeed and GMI offer the ability to survey people who can be matched to digital data profiles
You can survey people whose digital behaviors are known
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LiveRamp
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Top-priority 2: Real-time data systems
By integrating digital profiling information, marketing research can improve media agency bidding and targeting rules while in-flight
This can improve marketing productivity by 10-20%
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Top-priority 3: connect the screens
Increasingly, the consumer media day includes use of multiple screens.
To fully understand the consumer journey, research must connect use across screens in a consumer-centered way
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Top-priority 4: adopt a predictive mindset
Integrate digital and social data metrics that can have predictive value and then build these linkages
Think t+1, not t-1. Foresight…see what is coming next
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A predictive mindset
Traditional marketing research: questions about the past
Data science: questions about the future
Campaign assessment Campaign optimizationWhat is the profile of our current customers? How do we identify lookalikes for our current
customers for ad targeting purposes?
What brand attributes define our positioning? What targetable behaviors, preferences and conversations in social and digital data identify those most likely to respond to our advertising?
What media expenditures most correlate to sales?
What message delivered on what screen, in what context, to which user is most likely to generate positive response?
What is the mix of products people buy on given shopping trips?
What should the retailer overstock for the upcoming storm?
What is our trial forecast? How do we target likely triers?
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And what might be coming next?
Programmatic TV is here…it affects a small percent of inventory TODAY, but it is coming so get ready for the avalanche
IoT use case: digitalizing the home replenishment process
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An amazing opportunity to create disruptive offerings
http://blog.joelrubinson.net/2015/07/what-marketing-research-must-do-differently-in-a-data-driven-age/
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[email protected] Blog.joelrubinson.net Twitter: @joelrubinson
Thank you!