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Display Performance Understanding the Real Time Advertising Universe Christian Mueller, June 2014
We are currently witnessing the 3rd wave of direct marketing
1. Wave: Direct Mailings
2. Wave: Google Ad Words
3. Wave: Real Time Advertising
Today we are speaking about the oldfashioned advertising banner!
Audience buying instead of contextual buying
§ The user matters, not the website!
§ No classical media planning as the the traffic is acquired in real time
§ Targeting of users and audiences via automatic trading platforms
§ Personalized 1:1 messaging
§ Data can be used to efficiently reach your target audience
Classical media buy: Inventory-based
Modern media buy: audience-/user-based
Cost per thousand ad / imps Cost per user
Overview: The RTA value chain
Demand Side (DSP) Sell Side (SSP) Publisher Advertiser
Impression
Request
Data Bid
Winning bid
Banner-Delivery
Data
<100 Milliseconds
e.g..
Target group
e.g.
RTA will cover one third of all US display ad sales in 2016
$396,20 $986,00
$1.947,50
$3.362,90
$4.561,10
$5.966,50
$7.419,20
$8.493,40
4% 8%
13% 19% 22% 25% 28% 29%
2010 2011 2012 2013 2104 2015 2016 2017
Development RTB Display Spendings and Market Share 2010 – 2017
RTB Display Ad Spending in Mln USD
% of total Display Spending
Source: eMarketer, Apr. 2013
The customer acquisition process – lots of data is involved
Pur
chas
e pr
obab
ility
1. Generate Attention
2. Website visit
3. Onsite behaviour
4. Transaction
Attention
Interest
Desire
Action
€
All user data used in every step of the acquisition process
• Brand building • Efficient reach in target group
• Indentify potentially new customers
• Static retargeting
• Dynamic Retargeting with product recommendations
• Special offers based on purchase history • Upselling
Data from 3 different sources fuels the audience segmentation process
„Thin data“ Third party data Shop data
Websites
Geo Time
Browser
Re-Targeting
Lookalikes
CRM Segments
Challenge for CPA optimization: statistically invalid amount of transaction data…
9
1.000.000.000
50.000.000 50.000 50
Bids Ad Impressions Clicks Transactions
Winrate 5%
CTR 0,1%
CVR 0,1%
Example
• Tracking of all shop events, not only last click conversions
• Tracking of micro conversions that signal higher engagement
Data from 3 different sources fuels the audience segmentation process
„Thin data“ Third party data Shop data
Weather
Geo Time
Browser
Re-Targeting
Lookalikes
CRM Segments
Challenge for optimization: Finding the information that impacts the campaign….
Hour_of_ day
….usually it‘s a combination of various interdepending data points
Data from 3 different sources fuels the audience segmentation process
„Thin data“ Third party data Shop data
Weather
Geo Time
Browser
Re-Targeting
Lookalikes
CRM Segments
Challenges with third party data….
How’s the data being generated? Direct vs. predictive?
How “fresh” and “unique” is the data?
What’s the price model?
And most important: Is the data generating a performance uplift with a positive ROI?
One solution could be teaming up with classic networks that own data as a byproduct
RETAIL &SHOPPING TRAVEL FINANCIAL
SERVICES
Sub Industry 1 Sub Industry 2 Sub Industry 3
Sub Industry 1 Sub Industry 2 Sub Industry 3
Sub Industry 1 Sub Industry 2 Sub Industry 3
Sub Industry 1 Sub Industry 2 Sub Industry 3
…User clicks …User searches …User visits site …User converts
Targeted ad delivery via RTB
Higher Awareness More Conversions
Segment-specific Interest and Intent Data
Example: Affiliate network
Closing remarks and open questions
• Online advertising (incl. video) becomes real time – when does TV follow?
• Data protection and privacy – EU Cookie legislation
• Bridging the tracking gap between various devices (PC, mobile, tablet, TV)
• Will the big 4 (Google, Apple, Amazon and Facebook) dominate this market?
Real Time Advertising in a nutshell
„Real Time Advertising“ > Understanding the ecosystem
> Players & strategies
> Advise on quick wins
Download:
http://rtb-buch.de
Get in touch!
metrigo GmbH Christian Mueller Founder & MD t: +49 (0) 40 2093108-77 m: +49 (0) 171 9315974 e: [email protected]
Foto