master track c: "programmatic disruption"

Transforming Your Business With Programmatic: Are You Ready?

Brian Hovis

Vice President Marketing

What Brands and Agencies are Saying About Programmatic

Perceived Complexity of Effective Programmatic Ecosystems

Up Level Your Programmatic Media… Programmatically Run Your Business

Connected, Flexible Media & Systems Architecture

• Analytics / Attribution

• Ad platforms / Media / Creative

• Core business transactional systems

• Customer Care

• Cross-device

Real Time Analysis and Decision Making • Enable real time data flow and connection between key technology

systems to understand and optimize against a consumer’s path to conversion

• Apply attribution modeling across marketing channels to empower optimization decisions that account for true ROI

Enable Enhanced Processes to Ingest and React to Data and Key Insights

• Leverage agile work flows and processes to enable iterative testing

• Enable processes for

marketing research (qual/quant) to be calibrated to in market consumer response and conversion

Focus on the consumer • Your target

consumer is always connected so your marketing campaigns and teams need to be as well

• Consumer behaviors by segment can inform product development and innovation

Deliver Exceptional Outcomes: • Great customer experience, value and sustainable competitive

advantage

• Enhanced visibility across your org into key insights that can be acted upon to drive growth and efficiency

• Better media targeting, creative effectiveness and consumer engagement levels

What Are Your Options?

LOW HIGH

Level of Integration / Complexity

• Over-scoping and developing vs. business needs/objectives – consider your minimum viable product (MVP)

• Not enough attention to data structure and data connection/flow/acceptance across systems

• Ensuring the right technology and vendor decisions are made by your team and your key stakeholders – ensure proper care and attention is applied to RFP’s, requirements are vetted, etc.

Don’t Boil the Ocean

AND… It doesn’t have to be a behemoth project that’s over budget!!

What Your Action Plan May Look Like…

1. Clarify and align on your business objectives with key stakeholders

2. Evaluate current internal (personnel and technology) and external (agency) capabilities to deliver on objectives

3. Ensure you’re clear on your short vs. long term goals for activating on in house data

4. Determine optimal solutions to acquire capabilities while staying within business constraints (budget, people, technology, timing)

5. Build out initial eco-system and go to market

6. Optimize systems, people and processes for best outcome

Now…You’ve Achieved Programmatic Decision Making and Optimization for Your Marketing Campaigns and

Possibly for Your Core Business Functions

Next Step: Get moving and become the digital marketing hero for your business!!

THANK YOU

“Media Buying In The Connection Age”

Gary Gary Milner Director, Global Digital Marketing Strategy

Lenovo

Stranger In A Strange Land

Alan Partridge Geordie accent problems - YouTube

Raleigh

Newcastle

A $40b global personal technology company with 30,000 people and customers in 160+ countries.

23 2013 LENOVO

A Global Matrixed OrganizatioN

MOBILE BUSINESS GROUP

PC BUSINESS GROUP

GLOBAL OPERATIONS

Enterprise BUSINESS GROUP

Joe Zawadzki, CEO, MediaMath "The use of technology to automate processes and the use of math to improve results. It is the future of marketing, available now."

Pioneers Start The Trend

Followers

Life Philosophy And Digital

“ We overestimate the potential of technology in the short term, underestimate in the long term”

We Know its Coming

Life Philosophy And Digital

billion people

6 bn mobile phones

2bn connected to internet

25% media spend digital

1% growth global

traditional media (2013)

23% growth global

digital media

And We Have Just Got Started.

It Wont Be PC’s That They Spend Their Time With

• Massive Inventory Of Media ( will continue to grow)

–Smartphone and other devices

• Opportunity For Huge Waste (wrong target, fraud)

• Complexity in an electronic age

• Targetting Audiences,Intent and Consumption

–not sites

What Are We Faced With

MYTH 1.Branding Isn’t About Waste Management

• For every 100 Display/Video Impressions there are

– Up to 3 clicks (3%)

– Cost variation w video (1c a view to 25c a view)

– Up to 2% engagement in the content

– Up to 80% of people watch a whole video ad

• For Every Search keyword there are

– No wasted impressions (they are free)

– At best 5% will click on the ad

• For every TV ad

– 40% will dvr it and skip the ad

– 40%+ will pick up a second screen during the ad

• Social

– 1 in 15 will see a social posting

– Up to 5% will engage and share in the content

Not Seen

MYTH 2. DIGITAL HAS NO REACH REALITY

NO REACH

How do you reach the right Audience at the right time Efficiently with the right creative?

37B Access 37+ billion

Impressions daily

40+ Buy inventory

From 40+ countries

Multiple Devices

HISTORY REPEATS – MASSIVE INVENTORY DRIVES

AUTOMATION

Unified cross payment system designed to replace merchant by merchant systems

The entire end-to-end task of looking for a flight, reserving a seat and then writing up the ticket could take up to three hours in some cases, and 90 minutes on average.

At first, it was merely a computer bulletin board system and did not actually connect buyers and sellers

HISTORY REPEATS - DIGITAL MEDIA

MYTH 3..Complexity REALITY – IT IS, BUT SOLVEABLE

COMPLEX + WASTEFUL

NEW HOME PAGE = WHERE EVERYONE IS

MEDIA, THE OLD WAY

Bought with insertion orders

BUYING DIGITAL MEDIA LIKE THIS WILL DIE…

REMEMBER THIS?

How do you reach the right Audience at the right time Efficiently with right

creative?

Global Pop = 7bn

Digital Drives Platform Models – Video

MYTH 4 – Premium vs Long

Tail REALITY – “Eye of the beholder”

Which is Premium and Why?

“Premium is not site size or reputation it is site/content value to

consumer in a brand safe environment“

The Old To The New

OLD WAY

NEW WAY PROGRAMMATIC

Process of executing media buys in an automated fashion through digital software platforms. Replaces the traditional use of manual RFPs, negotiations and insertion orders to purchase digital media.

And Its Not Just About Exchange media

• THE MEDIA

– Video highest growth online media

– Video better at driving consideration (vs display ads)

• THE MARKET

– Media buying is dramatically changing from inefficient paper based to electronic trading (programmatic)

• SOLVES LENOVO NEEDS

– Align Geo operations, media buying and data

– Drives consistency in skills

– Significant lower costs on tight budget

– Provides fast changes based on insights and data

WHY DID WE DO THIS

Fastest Growth Media Spend Globally

-38% YOY (India 70% YOY)

Traditional Media 1% YOY Growth

Agency offered fixed price model

66% LOWERED COST OF AD BUY IN EMEA VS AGENCY

STANDARD

Lenovo UK Delivered Metrics:

75% completion rate

€0.0095 eCPCV

€7.23 eCPM

Lenovo DE Delivered Metrics:

79% completion rate

€0.0110 eCPCV

€8.79 eCPM

Media/Fixed Price Model vs. Platform-Style Pricing

Cost per Completed View

Fixed Price Model Platform Style Pricing

€0.03

€0.01

Lenovo Pre-Roll DE

Media/Fixed Price Model vs. Platform-Style Pricing

Cost per Completed View

Fixed Price Model Platform Style Pricing

€0.03

€0.01

Lenovo Pre-Roll DE

Theory: Programmatic Advertising will drive more efficient brand

consideration vs. premium media

DROVE BRAND CONSIDERATION AT 4X LOWER

Implications Drive premium buys to context (tech/audience/sponsorships), Drive efficiency through programmatic

Site Type (Video) Cost per Completed

View Cost per ppt Aware Cost per ppt Consider

Q2 Campaign Avg. * $0.04 - -

Programmatic $0.02 S12K $85K

Premium $0.05 S92K 307K

Key Highlight Programmatic drove the most efficient cost to drive consideration

LOWERED MEDIA COST, HIGHER PERFORMANCE VS YOUTUBE IN

Programmatic TubeMogul 2c a view

58% completion

2.2m views

Youtube 8c a view

8% Completion

1.7m Views

BUYING TARGETED AUDIENCES WITH PLATFORM RAISES PURCHASE

INTENT

Buy Media Targeted at 18-35

CONTROL

Model the buying target based

upon .com visitors. Feed to

Tubemogul for media buy

AUDIENCE TARGET

+7% IN INTENT OVER STANDARD AUDIENCE BUY

Silhouettes Program

SUCCESS – PR ASSIST - MASSIVE GLOBAL REACH AT LOW

Key Observations

E-Commerce Traffic Boost – Search up 50% +

• Excellent overall completion rate of 82%, with all 3 ad units exceeding TubeMogul benchmarks

• CTR of 1.7% and with all units exceeding benchmarks

• Search Volumes up 50%.....

INTERACTIVE PRE ROLL

(multiple formats tested)

Interactive Component

Added Here

Brand To Demand - Display Video Overlay Drives

Intent

http://www.tubemogul.com/configurator/ad_

liverail_preview/oK7Lwxwtcfh1nIBANLao

Media Strategy Using Programmatic

SEPARATE MEDIA INTO TWO FOCUS AREAS

Media Platforms

(Search/Social/Video/Metrics) Premium Media

Global team or Local Execution

Consistent Approach

Performance Based Purchase

Experts in Class

In Region Managed Only

Focus on partnership with ADD VALUE CONTENT

Context Emphasis (Technology media)

Long term global media deals – subject to budget

Lenovo Programmatic Strategy

Media Platforms

Safety Platforms

Measurement

Platforms

Content Platform(s)

Audience

PROGRAMMATIC = IT SYSTEM FOR MARKETING

Country Agencies

Geo Marketing

Business Unit

WW Advertising

Digital COE

ALIGN THE ORGANIZATION REDUCES MEDIA WASTE THROUGH METRICS DRIVES CREATIVE EFFICIENCIES - TESTING IMMEDIATE SCALE WITH TRANSPARENCY AND BRAND SAFETY RESPOND TO RAPID CHANGE

STANDARD METRICS (Video)

Completion Rate

Brand Consideration Lift

PLATFORM BUYING + MEASUREMENT Supports Search / Social Display / Video

High Volume System Buy

Variety of Media

In real Time Globally

Dynamically Adjusted Based On

Results

Multi device

LENOVO NEW WAY – DATA DRIVEN

RED BLUE

YELLOW

NEW DIGITAL FUNDAMENTALS

CONTENT

CONTENT TECHNOLOGY

DISTRIBUTION

master track c: "programmatic disruption"

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