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: christian.mueller@metrigo.de

Foto