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Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Leveraging the last millisecond Jason Juma-Ross @ideasoc iStrategy Sydney, April 2013 Marcus Verrall @MarcusVerrall

iStrategy 2013, Sydney: Leveraging the last millisecond

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Digital media suffers from substantial decays in effectiveness over time. Despite this, the ROI often outstrips more traditional media, but for how long? Delivering relevance can provide a powerful tool for extending the life of a channel or campaign (and making it more effective in the first place). In this paper, we look at the challenges with identifying customer intent and matching this with real-time, relevant communications at enterprise scale. Demonstrations of ad verification and intelligent digital platform capabilities explore how relevance at scale can be delivered and the observed impacts on business outcomes.

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  • 1.Leveraging the last millisecondJason Juma-RossMarcus Verrall@ideasoc @MarcusVerralliStrategy Sydney, April 2013Copyright 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

2. 2.5m display ads/5 secs 1average user served1,707 banner ads per month2>30% dont get seen3standard banner 0.04% ave CTR41. An estimated 169 display impressions served per millisecond: 2,470,588 in five second2. & 3. US Internet Users, ComScore4. DoubleClickCopyright 2013 Accenture All Rights Reserved.2 3. Investment continues to pour into digital: forgood reason!$000s2012 Australian Media Spend & YOY ($24m)4,000,000 $516m3,000,000($476m)2,000,0001,000,000($18m) $21m$11m $8m($41m)0 Television PressMagazinesRadioCinemaOut of Home Direct Mail DigitalROIBasis 25% 8%(example) (2%)(28%)(60%) (10%)Source: AQX Monthly, Jan 2011 Jan 2013, IAB Online Advertising Expenditure Report, Dec 2012, Accenture analysis: APAC region.Copyright 2013 Accenture All Rights Reserved.3 4. Use of automated tools to procure onlineReal Time advertising, one impression at a time, at scale, basedon the unique characteristics of a granular targetBidding audienceConvergence Ability to procure media packages that consist ofcombined inventory from both traditional and digitalBuying (again)channelsPay for Outcome based buying, allowing advertisers toprocure clicks, leads, enquiries, opportunities toPerformance quote, bookings,Copyright 2013 Accenture All Rights Reserved.4 5. Advertiser Customer CustomerEffectivenessNovelty RelevanceReal TimeBiddingConvergenceBuying (again)Pay forPerformanceCopyright 2013 Accenture All Rights Reserved.5 6. Novelty: Long term decline in banner CTRs 100%80% 78% CTR, HotWired 199460%40%0.1% 0.05%20%0.04% 0.5% CTR AdKnowledge Online 0.03%10%Advertising Report 1st Quarter 2000 0.02%c. 5%, 19975% 0.01% 199019952000 2005 2010 2015ClickZ 2001, Are Click-Through Rates Really Declining?, http://www.clickz.com/clickz/column/1706011/are-click-through-rates-really-decliningAndrew Chens Law of Shitty Clickthroughs, http://andrewchen.co/2012/04/05/the-law-of-shitty-clickthroughs/#Copyright 2013 Accenture All Rights Reserved.6 7. The law of shitty clickthroughs is a generalphenomenonSite retargeting clickthrough rate decline over a five month period. Source: http://andrewchen.co/2012/04/05/the-law-of-shitty-clickthroughs/Copyright 2013 Accenture All Rights Reserved. 7 8. How can we improve this situation in thenew RTB enabled environment?1.Cut through: Great, low-cost creative2.Audit: verify what you got3.Relevance: extend the fall off in theclickthrough curve by targeting intentCopyright 2013 Accenture All Rights Reserved. 8 9. Chevvy: Happy GradSuperBowl XLVISource: SuperBowl XLVI, 2012 MoFilmCopyright 2013 Accenture All Rights Reserved. 9 10. Use fast transients to deliver relevance &extend the useful life of advertising vehiclesSearch Display MediaKWG 1 KWG 2KWG N Seg 1 Seg 2 Seg N de-averagingDynamic Landing PagesProduct/Detail Pages Integrated data Intelligent conversion paths Checkout / Conversion Industrialised automation & decisioningCopyright 2013 Accenture All Rights Reserved.10 11. Challenge the high cost of complexityattached to delivering relevanceCustomers demand a more granular and continuous content and functionalitydevelopment cycle than is possible in the current paradigmNew Paradigm Complexity DimensionsPlatform based,componentised dev.,5 Cust. Segments12,150 Treatments flexible architecture withanalytics linking2,430content, usage, and3 Channelsvalue+Relevance6 Regions 810Current Paradigm135 Monolithic web27 Brands development & digitalCurrent supply chain. Analytics5 Treatmentsused primarily for5 Product categoriesreporting purposes1 Treatment Unit Delivery Cost +Copyright 2013 Accenture All Rights Reserved. 11 12. Ad Banner BuyerDEMOAudit: scans publishersites to track whereyour and yourcompetitors inventoryappears Semi-automated intelligent platform optimises for intent in real timeDEMOCopyright 2013 Accenture All Rights Reserved.end 12 13. ABBACopyright 2013 Accenture All Rights Reserved. 13 14. ABBACopyright 2013 Accenture All Rights Reserved. 14 15. Google Search Result (Actual)Copyright 2013 Accenture All Rights Reserved. 15 16. Google Search Result (DEMO)Copyright 2013 Accenture All Rights Reserved. 16 17. Visitor ContextCopyright 2013 Accenture All Rights Reserved. 17 18. Optimised Landing PageCopyright 2013 Accenture All Rights Reserved. 18 19. Facebook IntegrationCopyright 2013 Accenture All Rights Reserved. 19 20. Optimised Product PageCopyright 2013 Accenture All Rights Reserved. 20 21. Optimised Product Page Visitor ContextCopyright 2013 Accenture All Rights Reserved. 21 22. LaggingLeading Emerging STATIC ONE-SIZE FITSPERIODIC, EMPIRICALLY-AGILE, INTELLIGENTALL WEB SITESDRIVEN ITERATIONDELIVERY Search Social Display Personalisation (HTML)Web SkinCore Systems Componentised(Aligned)(HTML Layer)ArchitectureSearch Social DisplayFoundationalComponentsIntelligence Driven(Analytics) IntelligentAdaptationAnalyticsApplications,(Reporting) transactional, and service platformsCustomerData CloudCopyright 2013 Accenture All Rights Reserved.22 23. Relevance = business de-averaged 1960198020002020 Broadcast ParadigmIntent Paradigm CampaignsDemand CampaignDemand Profile Profile Population PopulationDemog.Simple SingleUniformIntentMultiple Fragmented CampaignSegmentOfferChannel CampaignSegmentsOffersChannels RelevanceLocal Mobile Social Bundle Search WebeDM/DMIPTV, etcHindsight based business Relevance, scale, & speedCopyright 2012 Accenture All Rights Reserved.23 24. c.1bn display ads/30 minsaverage optimised250 conversions500 conversionsROI x2Copyright 2013 Accenture All Rights Reserved. 24 25. Thank youJason Juma-Ross Marcus VerrallRegional Managing DirectorDigital DirectorAccenture Interactive Accenture [email protected] [email protected]@ideasoc@MarcusVerrallCopyright 2012 Accenture All Rights Reserved.25