CAN PROGRAMMATIC BE TRUSTED? · PROGRAMMATIC IS A KEY PART OF A DIGITAL TRANSFORMATION ... near future.* We must align closer to your business outcomes Source: Xaxis & Censuswide

Confidential and proprietary. Copyright © 2018 Xaxis Inc. All rights reserved. Distribution without permission is prohibited.

CAN PROGRAMMATIC

BE TRUSTED?

WAYS TO UNLOCK SUCCESS.

H E N R Y S T O K E S – M D G L O B A L A C C S , X A X I S

Keith Weed: "We cannot continue to prop up a digital

supply chain ... which at times is little better than a swamp in terms of its transparency,"

Mark Pritchard: “We have a media supply chain that is

murky at best and fraudulent at worst. We need

to clean it up, and invest the time and money we save into better advertising to drive growth.”

Mark Pritchard – P&G

WE HAVE AN IMAGE PROBLEM

SCALE OF PROGRAMMATIC

$628.6 BN

Global Ad Spend $273.4 BN

Global Digital

Spend$74.9 BN

Global

programmatic

Spend

$12 BN

EMEA

programmat

ic Spend

23% YoY

Growth

Source: emarketer & IAB 2018

PROGRAMMATIC IS A KEY PART OF

A DIGITAL TRANSFORMATION

89% of business are going through digital transformation

62% state better use of data as a key element in that digital transformation

Emarketer 2018

PROGRAMMATIC’S MOST WANTED

Ad Fraud Brand Safety Viewability Transparency

Measurement GDPR Rise of AI

AD FRAUD

Its criminal

behavior and a

constant battle

By far the largest bot was

Russian born Methbot in

2016 – thought to be

making $3m - $5m / day

6

DEALING WITH IT HEAD ON

• Use technology! • Use Blacklists

• GroupM blacklist

has over 10,000

domains

• Contract directly

with known

publishers

• Build whitelists




BRAND SAFETY

Brand safety can be poor

targeting or domain selection

It can result in huge brand

damage and is mainly around

user generated content

There is a trade off between

risk, scale, price and

performance

WE ALWAYS START WITH A RISK TOLERANCE

ASSESSMENT FOR EACH CLIENT

Higher Risk Lower Risk

More Scale Less Scale

Buy

Everything

Use a

blacklist

Tech to

MONITOR

Tech to

BLOCK

Only buy

from known

sellers

Create a

strict

whitelist

Don’t buy

any UGC

(incl.

YT/FB)

HIGH TOLERANCE LOW TOLERANCE




VIEWABILITY

Viewability

Rate (%)

or

VCPM?2 seconds

video

OUR APPROACH TO VIEWABILITY

$1 CPM

25% viewability

Or

$3 CPM

50% viewability

Predict if the ad will

be viewable

Set a bid price

based on the

confidence level

$1 CPM

25% viewability

Or

$3 CPM

50% viewability

$4 VCPM (for 1000

viewable ads)

Or

$6 VCPM (for 1000

viewable ads)

WITH

FRAUD,

BRAND SAFETY

VIEWABILITY

YOU MUST SET

OUT A CLEAR

APPROACH

Use technology to verify the Impression and the environment

Consider a domain whitelist with cross reference to GroupM

blacklists

Trade/Optimize on human viewable standard*

Avoid ad networks, audience extension and aggregators, maximize

certified supply chain partners

Assess client Risk Tolerance to inform tactical planning

1

2

3

4

5




TRANSPARENCY

Transparency: media

placementDisclosure: clarity on cost

TRANSPARENCY THROUGHOUT

THE WHOLE SUPPLY CHAIN

ClientAgency DSP SSP WebsiteAdserving Data

Costs

Brand

SafetyServiceDynamic

CreativeAnalyticsDashboard

Itemized

All inclusive CPM

UNDERSTAND THE PROS AND CONS OF

MODELS

Media, targeting,

tech, service, brand

safety, DCO and AI

optimization all

included

Including ALL the same

elements & unique tech

Media CPM (GroupMrates for specific

domains)

$2.31

Data Logix CPG -3rd Party Data CPM

$1.00

Service fee (15%) as a CPM $0.15

Brand Safety tech CPM $0.06

DSP Tech fee (9%) as a CPM $0.09

$4.17 CPM

Itemized including all

necessary elements

DCO Adserving CPM $0.25

$3.03 CPM

Full service

Guarantee a certain outcomeEfficiencies of scale & shared

resources




WRONG

MEASUREMENT?

72% said they are likely to

change the metrics they use

to evaluate success in the

near future.*

We must align closer to your

business outcomes

Source: Xaxis & Censuswide - Outcomes Survey

Nov 2018

A NEW DIGITAL NEW MEASUREMENT P.I. (PURCHASE

INTENT) LINKED TO BUSINESS OUTCOMES

The Ambition The Calculation What is PI?

Homepage 2

Car spec 5

Test drive 10

User Score 17

HOW LIKELY ARE YOU TO INVEST IN

OUTCOME-DRIVEN MEDIA IN THE NEXT 12-

34 MONTHS?

86% - Likely

12% - Neither likely nor unlikely

2% - Somewhat unlikely

1% - Very unlikely

*45% - Somewhat likely

*

Xaxis & Censuswide - Outcomes Survey Nov 2018

GOLDEN RULES OF

MEASUREMENT

Everything inter-relates

One source of tracking

Your tracking must

inform your optimization

platform




GDPR

If a cookie or any tracking

ID is set on a user by any

company consent

must be gained

The cookie or ID is

designed to collect and

store User data –behavior, demo, purchases

Publisher Websites

Advertiser Websites

Data Aggregators

Programmatic DSP’s

The Consumer

Of the 116 log level

data fields available through

the DSP, 23 fields are

exempt from GDPR

BUT PROGRAMMATIC

DATA CAN BE GDPR

FRIENDLY

23GDPR-friendly

23 outside the scope of GDPR.

(date time, site domain, city,

device, OS, format)

All used by Xaxis Copilot

7 affected by GDPR.6 duplicate /testing f ields.

41unavailable until after the auction.

(is click, media cost, view result)

20are already known

to Buyers.

(eg: advertiser id,

l ine item id)

19are only available to Sellers.

(reserve price, publisher

currency)




AI IS BEST PLACED TO QUANTIFY BIDS FOR THE

BILLIONS OF COMBINATIONS VARIABLES

FEATURES

Viewability Creatives Days Hours RegionsBrowser /

OSAudiences Domains

FEATURE LEVELS

2 5 7 24 25 25 100 1,000

FEATURE COMBINATIONS

2 10 70 1.7K 42K 1M 100M 100B

Copilot is a proprietary

technology platform

that optimises Appnexus, TTD,

DBM and soon Amazon

campaigns using advanced

machine learning, a strand of

Artificial Intelligence .

Live in 52 markets

Over 20,000 campaigns run

1000+ active platform users

Set brand or

performance goals &

track progress in real

time

See success - Copilot

algorithms vs. usual

DSP algorithm across 15

campaigns saw a

43% decrease in CPA

OUR AI CONUNDRUM

Use human based insights to define

targeting prior to a campaign

Assume nothing and simply set a

campaign goal (outcome) and let the

AI define targeting

AI is most

effective

AI is least

effective

REGRESSION SUPERVISED LEARNING

ENABLES AUTOMATED BUYING WITH

XAXIS’ COPILOT

REDUCED CONTROL & TRUST ARE KEY

CHALLENGES WITH AI

55%

47%

39%

37%

Gaining trustworthy insights into what drivesbusiness outcomes?

Relying on a black box & less human control

Finding & retaining the right talent

Focus on AI & insights is diverting marketers fromtactical implementation

Source: IAB Europe, Artificial Intelligence Survey, May 2018. 1,000 respondents from marketing professionals across 30 European countries

Q. What are the core challenges facing marketing departments when using AI?




34

Confidential and proprietary. Copyright © 2018 Xaxis Inc. All rights reserved. Distribution without permission is prohibited.

THANK YOUHENRY STOKES – MD GLOBAL ACCS, XAXIS

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CAN PROGRAMMATIC BE TRUSTED? · PROGRAMMATIC IS A KEY PART OF A DIGITAL TRANSFORMATION ... near future.* We must align closer to your business outcomes Source: Xaxis & Censuswide