PLATFORM UTILIZATION

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1 PLATFORM UTILIZATION

2 Introducing the Platform Marketer Competencies Audience Management Platform Data Consumer Privacy & Compliance Identity Management Platforms Utilization Media Optimization Platform Enablers Measurement & Attribution Channel Optimization Platform Execution Marketing Technology Experience Design & Creation

3 Introducing the Platform Enablers Platform Data Platforms Utilization Platform Enablers Measurement & Attribution Marketing Technology Platform Execution

4 Session Content The State of the Addressable Platform Requirements for Utilization Case Studies Key Learnings and Requirements for Success 4

5 The State of the Addressable Platform

6 The State of Digital Marketing is Rapidly Changing Programmatic continues to expand New players emerging for direct marketing Cross Device 6 Ubiquitous on the media plan Offerings extending out remnant to premium Optimizing performance AND workflow Social platforms are evolving User base and profiles creating massive scale Unique inventory and placements Users are spending their time across devices Shift from cookies critical for targeting measurement Early stages of ID based tracking

7 The digital marketing landscape is rapidly moving toward addressability CRM Data Driven Anonymous Individual Anonymous and Individual Level of insight Place Place Place Contextual Programmatic Addressable Targeting Optimization How many people visit site, and their profile Based on inferred match between audience & publisher Cookie & Third Party data on unknown individuals Anonymous user behaviors Retargeting Addition of data repository including all media and CRM data Anonymous user behaviors tied to CRM data 1 st party data targeting (name and address) Publisher performance Anonymous cookie data Performance by customer 1 st & 3 rd Party Cookie Device ID Known individual Platforms & Format PC Banners PC Display & Video Channel specific Cross Media/Cross Device PC Mobile Tablet 7

8 This shift is being seen as portals and social platforms evolve into audience platforms Paid Media Audience Platforms Organic Media 8

9 Requirements for Utilization

10 Successful platforms must have comprehensive targeting products, holistic tracking capabilities and innovative formats in order to be a scalable platform for direct marketing Targeting Targeting products leveraging the platforms proprietary 1 st party data and ability to leverage advertiser 1 st party data is necessary Tracking Enabling basic tracking like a conversion pixel is necessary and cross device identification is the future Innovative Formats Formats are larger rich media units natively placed within relevant content 10

11 Targeting Targeting offering needs to support control and efficiency, both on and off owned inventory On Platform Off Platform ID Based: Matching , physical address, phone, or social IDs to platforms to include, exclude or expand target audience via lookalike modeling Interest Based: Based on platform/profile data including demographics, psychographics, and geo-location Content Based: Buying various keywords users have recently posted or interacted with on the platform Behavior Based: Targeting based on specific social, web, or mobile actions - visited website, downloaded mobile app, engaged with brand content 11

12 Targeting Beyond Cookies: ID Based Is More Accurate Across Platforms Merkle Modeled Audiences Customer / Prospect Segments INCLUSION TARGETED SEGMENTS CROSS-SELL, UP-SELL, REPEAT PURCHASE OR TARGET NEW PROSPECTS DIRECTLY EXCLUDE SEGMENTS Addessable Universe EXCLUDED SEGMENTS EXCLUSION LOOKALIKES EXCLUDE EXISTING CUSTOMERS LOOKALIKES TO EXPAND REACH MERKLE AUDIENCE UPDATING EXPAND REACH TO FIND NEW CUSTOMERS MEDIA PERFORMANCE ANALYTICS, CONVERSIONS, MEASUREMENT OPTIMIZATION 12

13 Tracking Robust cross device tracking is required Within Platform Tracking First Party Platform Tracking Cross Device No 3 rd Party Tracking 3rd party pixel certification Unique cross device ID No conversion pixel Conversion Pixel Persistency and Accuracy Click tracking, but no view. Same device Click and view tracking. Same device Click and view tracking across devices Drive in platform/portal events, engagement Drive to Site Drive to Site & Store 13

14 Innovative Ad Formats are driving engagement rates similar to search A Shift to Native formats is putting the ad in-stream with the content and redefining engagement rates Premium real estate Visually striking and engaging Highly targeted The size of a 300 x 250 banner 2x Placements continue to innovate/evolve to more directly support campaign objectives Awareness/Engagement placements Direct marketing placements Lead generation Full screen 14

15 Facebook Ad Formats RHS Photo Post Link Post Native Video Post

16 Twitter Ad Formats Embedded Vine Embedded Photo Native Video

17 Twitter Ad Formats Continued Click To Call Card Lead Gen Card Product Card

18 Yahoo Ad Formats In Stream Native Ads

19 The reality is that we re just getting started Targeting H M+ M M M M H L Tracking M H L M H M L M Formats H M H M M M L L 19

20 Case Studies

21 Platform Utilization Case Study Guthy Renker is a direct-response marketing company Pioneered the TV infomercial in the late 80 s Activated digital in 2008 anticipating consumer shift in consumption and conversion channels Profile: Revenue: $1.8 billion (2012) Based in Santa Monica, CA Founded 1988 Prominent Brands: Portals drove initial performance and scale, but economics eroded over time Early tester of addressable platforms as a new source of efficient scale Digital Media Budget: > $65MM Display, Social, Search, Affiliate,

22 Shifting in Mix to Addressable Initial success of Facebook s platform fueled rapid expansion of addressable tactics Addressable spend increased from 23% to 70% between Q and 2014 Incremental performance and scale supported a 16% growth in budget Expect the shift to continue in quarters ahead as platforms continue to innovate 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Budget Distribution and Growth YoY for Digital Media Q1'13 100% Q1'14 118% 120% 115% 110% 105% 100% 95% 90% Traditional Addressable Budget Growth 22

23 Summary Learnings and Requirements for Success

24 Key Learnings and Requirements for Success Platform Utilization Learnings The age of the addressable platform is upon us and it requires unique skills to utilize Requirement for Success Strong competences in marketing, technology, and CRM Platforms are creating massive competitive advantage for early adopters, like G R Progressive marketing organization embracing innovation As adoption increases advanced competencies will be required to successes. Segmentation, testing strategies (offer, message), and advanced measurement The biggest scale platforms will extend access to their audience offsite Centralization onto scaled platforms and advanced attribution methodology 24

25 Thank You! Deanna Bershad Sr. Director, Digital Media Joseph Meehan VP of Media