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San Diego, California. Sept 2012. Edward Montes. Verticalization As Applied To Advertising As An Enterprise System. - PowerPoint PPT Presentation
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Verticalization As Applied To Advertising As An Enterprise System
San Diego, California. Sept 2012. Edward Montes
Digilant is an independent marketing technology company that provides marketers with a platform to support the entire media buy –from planning through execution, measurement and optimization– with ultimate precision and transparency.
Advertising As An Enterprise System
An Enterprise System represents a cross-functional, integrated information system, used by organizations to support business processes and provide an underlying platform for data integration
Generic Systems
• Systems are complex, tend to be comprehensive, tightly integrated software consisting of business process or logic that is hard-coded into the system
• “One Process Fits All”• Options:
1) Reconfigure the system or 2)re-engineer the process to fit the system
• One Process Fits All Approach Destroys Competitive Advantage
Vertical Strategy
• A strategy aimed at minimizing the gap between practiced processes and system embedded processes
• Specialized software for specific verticals where industry-specific processes are embedded into the system from the design stage
• Better Tailoring Products To Practices
Today’s Truisms
• Too Many Choices
• Competition Is Fierce
• Black Box Mentality
• No Material Difference between Targeting and Valuation
• Optimization is the equivalent of winning in a specific attribution model
Simple Methodology
One day attribution:
The process takes one day of clicks /conversions and 45 days of preivous impressions/clicks and marks each event with their corresponding weights according to the attribution models.
The process is then applied for each day with at least 45 previous days of data.
0 0 0 1 0 1 0 1 1 0 Target
I I I C I I I C I C ConvTime
45 days of imp / click Day of
execution
More Methodology
Day of
execution
45 days of imp / click
Time
45 extra day to check if
impression/ click is a zero
Period with full information about target
The first 45 don’t have all the possible events that could have caused the conversion / click, and the
last 45 don’t have the conversions / clicks needed.
Click and Conversion Models: Predictors
A number of target based predictors exist for each model:
Target is computed in previous days of the events selected in the sample aggregating by:
Geo
Url-domain Hierarchy (Url is used if it has enough data, domain is used otherwise)
Two different depths are used to capture short-term and long-term effects:
2 previous days (one predictor for geo and one for url-domain hierarchy)
20 previous days (one predictor for geo and one for url-domain hierarchy)
Time
Day of sample20 days aggregation
2 days
aggregation
Parameter DF Estimate StandardError
WaldChi-Square
Pr > ChiSq StandardizedEstimate
Exp(Est)
Intercept 1 1.1078 0.0506 478.76 <.0001 3.028
W_BROWSER 1 -0.4926 0.0215 525.30 <.0001 -0.1128 0.611
W_GMTGCL2 1 -0.3585 0.0502 50.95 <.0001 -0.0279 0.699
W_UMTGCL2 1 -0.1537 0.0191 64.38 <.0001 -0.0527 0.858
W_UMTGCL20 1 -0.7971 0.0162 2419.47 <.0001 -0.3329 0.451
W_USERLANGUAGE 1 -0.1040 0.0385 7.30 0.0069 -0.0111 0.901
W_VISIBILITY 1 -0.6253 0.0375 278.16 <.0001 -0.0707 0.535
Modelling Results: CPG Click Attribution
Target based predictor by URL-DOMAIN hierarchy for target [TARGET] and depth [DEPTH]
Modelling Results: CPG LCLI Attribution
Parameter DF Estimate StandardError
WaldChi-Square
Pr > ChiSq StandardizedEstimate
Exp(Est)
Intercept 1 1.8535 0.0542 1168.69 <.0001 6.382
W_BROWSER 1 -0.4581 0.0271 285.51 <.0001 -0.0801 0.632
W_CREATIVECATEGORY 1 -0.8896 0.0485 336.64 <.0001 -0.0734 0.411
W_GMTGCOLCLIWOR2 1 -0.7736 0.0221 1224.56 <.0001 -0.2827 0.461
W_GMTGCOLCLIWOR20 1 -0.1514 0.0244 38.63 <.0001 -0.0468 0.859
W_GOOGLEMAINVERTICAL 1 -0.2587 0.0506 26.19 <.0001 -0.0258 0.772
W_UMTGCOLCLIWOR2 1 -0.0458 0.0240 3.65 0.0561 -0.0103 0.955
W_UMTGCOLCLIWOR20 1 -0.7822 0.0182 1850.60 <.0001 -0.2404 0.457
W_VISIBILITY 1 -0.2508 0.0568 19.49 <.0001 -0.0202 0.778
20 Day surfing behavior still strongest predictor but 2 Day GEO importance jumps dramatically
Targeting vs. Valuation
• Understanding the most important predictors of performance allows you to target to desired outcome
• Understanding most important predictors of price, in conjunction with target, creates efficiency
We believe the future of Advertising Technology is to allow for Customization At Scale:
Your Data
Your Inventory
Your Algorithm.
For more information, please contact: [email protected] visit our website www.digilant.com