bowen dwelle
TRANSCRIPT
Bowen DwelleOctober 28, 2008
The only professional association exclusively dedicated to online
advertising operations and technology
“The most valuable career experience I've had in the
last five years.”
“The benefit AdMonsters provides for the ad operations
world is unparalleled.”
“The most valuable educational and networking event I attend, hands down.”
“AdMonsters is the only event on my ‘must attend’ list. The information and networking benefits are invaluable to
growing an Ad Operations team.”
A few of our members…
Ad Operations in 2008
Actually, that’s the World in 2008
“display advertising, which accounted for 45% of interactive ad spend in 2007, is expected to fall over the coming years”
New Media Age, July 3, 2008
Ad Operations in 2008
What you already know
• Continued evolution of ad ops towards more strategic function
• BUT, ad ops still often seen as tactical, and in conflict with sales
• Inventory tools still not cutting it• System integration still poor• Creative quality & timeliness continue to be a major
problem• New ad models (video, mobile, widgets, etc) are
challenging existing processes – which need work to begin with
But… is ad ops all about problems?
What is the “ad ops success story”?
Client value(external)
Business value(internal)
Client value
results + quality_______________________price + hidden costs
Heskett, Sasser, Schlesinger: The Service Profit Chain
What do clientspay for?
Ad space… ?ResultsQuality
From IO to results
• Inventory analysis• Order processing• Trafficking• Creative handling & testing• Targeting• Pacing & optimization• Changes & swaps• …only then: impressions, clicks, actions, results…
What do clients want?
Booz | Allen | Hamilton – Marketing & Media Ecosystem 2010
“publishers, to win, must compete on the basis of
analytics”
James Sandoval, CEO, Invizua
How do we get from IO to results?
Operational excellence
How do we deliver value for clients?
Business intelligence
Tactical Intelligence
BEFORE• 300M imps/month available• 10% sold @ $1.00 eCPM• ~$30K revenue, $0.10 yield• No pricing guidelines• Pricing based on feelings about
“lower value, bulk, remnant” inventory• Lots of bonusing, “value-add”
Tactical Intelligence
AFTER• 300M imps/month available• 85% sold @ $2.00 eCPM• ~$525K revenue, $1.75 yield• Analytics delivered by operations revealed
actual value • Clear guidelines managed by operations
increased revenue 18X!!
Strategic Intelligence
• As a publisher, how do you know where to invest? • Invest where eCPM is high and fill rate is low, right?• How many of you that report at your fingertips?
Where do we get the business intelligence to make rational
economic decisions and maximize profits?
Operational excellence
What you should know now
• Operations is the core of any service business• Operations turns revenue into profit• Operations is the key to client value: results,
quality, costs – and pricing• Growth and innovation require quality,
efficiency and scalability (80/20 rule)• Great operations is not optional –
great operations is a requirement
What can you do?
• Tap into the value of your operations group• Leverage operational intelligence in the sales
process to maximize customer value• Challenge operations to find revenue
opportunities• Leverage operational intelligence to reduce
costs and maximize profitability• Invest the time to increase your level of “ad
ops savvy”
Again, why is this important?
#1 on marketers’ wish list? “Greater knowledge of the digital space”
“We need to get our act together… we need to get more efficient”
David Cohen – Universal McCann
“Gross inefficiencies in our industry are the #1 thing plaguing us…”
Jonathan Adams – Digitas
Operations is the guts of our business
Exceptional operations is everyone’s job
