Before the Last Click: How Programmatic Media Fuels Search

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1 Before the Last Click: How Programmatic Media Fuels Search Michelle Alfano Director, Display Media Megan Pagliuca General Manager, Digital Media

2 Digital Media lives in a VAST space with a lot of players

3 LOOK-A-LIKE MODELING INCREASE MARKET SHARE MOBILE IN-APP 1 ST PARTY DATA LISTS NEW CUSTOMER ACQUISTION RESERVE INVENTORY DRIVE TRAFFIC WEBSITE RETARGETING RICH MEDIA SEARCH RETARGETING YOUTUBE VIDEO ADS VIEWABILITY DISPLAY SIMILAR AUDIENCES REAL TIME BIDDING TWITTER CARDS BRANDING PAID SOCIAL PROGRAMMATIC MEDIA IN-STREAM VIDEO MOBILE WEB DRIVE AWARENESS NATIVE ADVERTISING PRIVATE MARKET PLACES CREATE DEMAND SHOPPABLE TRUEVIEW DIRECT DEALS FACEBOOK PRODUCT ADS DSPs PROGRAMMATIC TELEVISION 3 RD PARTY AUDIENCE SEGMENTS INCREASE CONVERSIONS 3

4 What is Programmatic? What does that really mean? 4

5 What makes this so revolutionary? Old School Direct Deals Data Driven Programmatic Buying» Human Negotiations» Manual Insertion Orders» Set CPM rate & Guaranteed Impression Volume» Broad Reach» Targeting is Context Driven Based on Page Content» Automated Bid Calculations for Efficiency» Dynamic CPM rate» Allows for Adjustments & Optimizations» Transparency in Data» Context AND Audience Driven 5

6 But Really How Does it Work? With Real-Time Bidding Auctions 74 ms s Targeting users who are female during lunch Running major branding campaign during graduation season Retargeting shopping cart abandoners with cart value greater than $150 $0.75 CPM $2.50 CPM $1.25 CPM YOUR AD COULD BE HERE Showing ads on news sites for people ID ed as being interested in small businesses $0.55 CPC $0.28 CPM RTB allows everyone to enter the auction for the available ad spaces (300x250) and before the page loads there is a back & forth of information sharing so all contenders can modify their bid to win the auction.

7 Results of the Programmatic Approach Insurance Advertiser working with multiple ad networks and DSPs prior to our management, migrated ad spend to one demand side platform. Conversions tripled with a third of the budget, thanks to transparency in optimizations. Before Prior to Merkle Management After With Merkle Management Difference Spend Conversions CPM Response rate CPA $488 k $330 k Reduced waste 3,691 9,933 Cost efficiency $0.46 $ % % Targeted audience $132 Reach $33-32% +169% -47% +112% -75%

8 Mobile is a Layer, Not a Channel 8

9 Deep Dive Focus LOOK-A-LIKE MODELING MOBILE IN-APP GEO-FENCING LOCATION 1 ST PARTY DATA LISTS OPERATING SYSTEM NEW USER DESKTOP FREQUENCY CAPS WEBSITE RETARGETING RICH MEDIA SEARCH RETARGETING YOUTUBE VIDEO ADS AD SIZEDISPLAY SIMILAR AUDIENCES DAY OF WEEK TWITTER CARDS BROWSERPAID SOCIALIN-STREAM VIDEO RECENCY WINDOWS MOBILE WEB TIME OF DAY NATIVE ADVERTISING PUBLISHER DOMAINS TABLET PLACEMENT ON PAGE SHOPPABLE TRUEVIEW PREVIOUS USER FACEBOOK PRODUCT ADS AD VARIATION PROGRAMMATIC TELEVISION 3 RD PARTY AUDIENCE SEGMENTS MOBILE VIEW DURATION VIEWABILITY 9

10 Leveraging Geo Data & Location Based Targeting Target Users Online Not Near Stores Drive Shoppers To Stores for Events Optimize Efforts Based on Trends Previous Shoppers Shopping Cart Abandoners Men Ages Hunting & Fishing Enthusiasts Previous Shoppers Men Ages Hunting & Fishing Enthusiasts High Margin Item Shoppers Previous Shoppers Men Ages Hunting & Fishing Enthusiasts Sporting Goods Bloggers 10

11 A Tale of Two Devices, One of Many Optimizations Audience: Retargeting Pool of Site Browsers Desktop Mobile» Geo Modifier + 10%» Messaging Free Shipping +25% Stop In for a Demo -15%» Day of Week Fri Sun -20% Mon Thurs +30%» Geo Modifier + 45%» Messaging 25% off in-store purchases +10% Stop In for a Demo +25%» Day of Week/Time of Day Fri Sun all day +20% Mon Thurs 7am 4pm -40% 11

12 Ad Placement by Device leads to Different Points of Purchase 12

13 Using Mobile To Help Understand In-Store Traffic & Conversion Lift In-Store Conversion Rate Comparison 1.30% 1.25% 1.20% 1.15% 1.10% 1.05% 1.00% Ad Exposed Visitors General Population 13

14 Direct Measures of Success with Programmatic Media Probabilistic Set up a control & experiment group for ad exposure Track with geo location data for in-store visit and interaction Extrapolate to understand lift for the larger population 14

15 Layering Tracking Data with 1st Party Data Gives Us a Clearer Picture SEGMENT LIFECYCLE IDENTITY BEHAVIOR LOCATION VALUE Client 1 st Party Data CRM + 3 rd Party & Facebook Cookie Data 1 st Party Data + Tag Data

16 Direct Measures of Success with Programmatic Media 16

17 Direct Measures of Success with Programmatic Media Deterministic 17

18 Connecting Measurement to Refine 1-to-1 Targeting Segments Create custom audience segments in-market users similar audiences existing customers Take CRM Addresses & Unified Logins AND Hash & ANONYMIZE IDs Connect to Sale or Action 18

19 How CRM Data Expands the Mid-Funnel for Programmatic Media Desktop Phone Tablet TV Awareness Consideration Engagement Experience Conversion Commerce Brand Media Performance Media CRM Optimization Channel Upper Funnel Media The Expanded Mid Funnel Mid Funnel Singular Traditional experience CRM from DM, consideration EM, Re-Targeting through conversion Lower Funnel Sales/Service Experience Customer Remarketing Audience 1 Audience 2 Audience 3 Unknown Unknown High-value High-value customer customer Low-value customer

20 Programmatic Media Spills Over into Search Users targeted with display ads on desktop who had not previously been to the client s site (IR Top 500 Retailer), later conducted a branded search 1.6X more often in order to make it to the site than users with no ad exposure. 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Branded Paid Search % of Visitors 1.6X increase All Site Visitors Prospected Visitors 20 #MRKGsummit2015

21 Programmatic Media Spills Over into Search Depending on the industry, the incremental boost on search campaigns can be even more significant VS For a B2B client we saw a 26.3% lift in branded searches from users exposed to display ads. 21 #MRKGsummit2015

22 Fuel the Upper and Mid-Funnel Actions & Measure Impact Display Interests & Topics Facebook Precise Interests Facebook Job and Workplace Targeting Display Similar Audiences/Facebook Look-a-Like Audience based on Site Visitors Display Similar Audiences/Facebook Look-a-Like Audience based on Cart Abandoners Display Similar Audiences/Facebook Look-a-Like Audience based on Converters Retargeting Site Visitors Facebook Custom Audiences Retargeting Converters Paid Search RLSAs Paid Search SEO

23 Thank You! Michelle Alfano Director, Display Media Megan Pagliuca GM, Digital Media MerkleRKG.com Merkleinc.com 23