Digital  Marke,ng    Trends  Impac,ng    2015  Budgets  

Justin Schuster VP of Marketing LiveRamp

Mike Monaco VP, Programmatic Strategy & Optimization, MediaMath

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1   PROGRAMMATIC  BECOMES  THE  NORM  

   

pro·∙gram·∙mat·∙ic  /ˌprōɡrəˈma4k/  

   “The  applica4on  of  technology  to  automate  and  op4mize  the  planning,  purchasing,  execu4on,  and  analysis  of  digital  marke4ng  across  channels  and  across  the  enterprise.”  

Trend  #1:  Programma/c  =  The  New  Normal  

2014:  Tes/ng  the  Waters  

137%  gain  over  2013    

$10B+  US  spend  on  Programma4c  

in  2014    

2015:  Diving  Right  In  

Rise  of  Programma/c  Premium    

PROGRAMMATIC = REMNANT INVENTORY

Rise  of  Programma/c  Premium    

PROGRAMMATIC = REMNANT INVENTORY

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Rise  of  Programma/c  Premium    

Adop/on  by  Publishers  

+  one  of  our  largest  retail  

clients  

Higher  CPMs  for  publisher;  

Greater  reach,  transparency  and  performance  for  adver4sers  –  50%  incremental  user  reach  

 

2-­‐3x  more  liQ  2-­‐3x  more  clicks    

Premium  Programma/c  in  Ac/on  

FROM…    

TO…    •  Programma4c  is  a  line  on  the  plan  

•  Only  RTB  display    •  Hundreds  of  point  solu4ons  •  Online  data  •  Last-­‐touch  aXribu4on  

Digital  Marke/ng  is  Evolving  Rapidly  

•  Programma4c  IS  the  plan  •  Premium,  all  channels,  incl.  TV  •  Consolida4on  on  pla]orms  •  Merged  online  +  offline  •  Mul4-­‐channel  aXribu4on  

Image  represents  percent  budget  alloca2on  to  the  client’s  various  efforts  

Case  Study:  Pitney  Bowes  Goes  Programma,c  TerminalOne  Gets  a  First  Class  Stamp  of  Approval  

Case  Study:  Pitney  Bowes  Goes  Programma/c  TerminalOne  Gets  a  First  Class  Stamp  of  Approval  

•  Analyze  and  op4mize  campaigns                quickly  and  efficiently  •  Gain  a  more  accurate  understanding  of  

their  consumers’  online  behaviors  •  Import  offline,  direct  mail  data  into  the  

pla]orm  and  capitalize  on  specific  industry  data  segmenta4on  for  their  online  targe4ng  strategies.    

Pitney  Bowes  onboarded  TerminalOne  and  was  able  to    

Proof:  30%  year-­‐over-­‐year  growth  

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2   MULTI-­‐CHANNEL  &  CROSS-­‐DEVICE  

Shig  to  Data-­‐Driven  Marke4ng  Causing  Budget  Changes  

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MORE  OPPORTUNITY  

MAR

KETING      COMPLEXITY  

1900   2000   2014  

TRADITIONAL  

DIGITAL  

DATA  DRIVEN  

Print,  Catalog,  Direct  Mail,  Radio,  TV,  Telemarke4ng  

Email,  Website,  Search,  Display,  Affiliates,  Video,  Mobile,  Social  

Programma4c  Cross-­‐Device,  Personaliza4on  Addressable  TV  

2015  BUDGET  PRIORITIES  

Consumers  Want  BeXer  Cross  Channel  Experiences  

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90%  Consumers  expect  consistent  customer  experiences  across  

channels  and  devices1  

1.  SDL,  October  2014  2.  MyBuys,  March  2014,  6th  Annual  Personaliza4on  Consumer  Survey  

3.  Google,  August  2012  “The  New  Mul4-­‐Screen  World”  

67%  Consumers  start  a  shopping  on  one  device  and  con4nue  

on  another3  

83%  Consumers  see  value  in  being  recognized  across  devices  for  

personalized  content  and  experiences2  

Mobile  Has  Become  the  Dominant  Form  Factor  

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1.  eMarketer,  April  2014  2.  eMarketer,  June  2014  2010 2011 2012 2013 2014

PRINT  

RADIO  

ONLINE  

MOBILE  

TV  

4:29  

1:01  

3:04  

1:43  

1:17  

1:13  

4:37  

2:40  

3:14  

1:42  

13:26  

11:34  

14:29  14:08  

2:49  

1:33  

1:04  

1:39  

1:09  

4:39  

4:04  

4:44  

3:33  

3:03  

14:40  

4:39  

4:57  

2:39  

1:27  

0:58  

More  Time  Spent  Consuming  Content1  

Biggest  increase  from  mobile  

Mobile  Ad  Spend  Set  to  Surpass  Desktop2  

In  2015  Marketers  will  Overcome  the  Barriers    

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Many  Companies  Are  Offering    Cross-­‐Device  Marke,ng  Solu,ons  

In  2015  Marketers  will  Overcome  the  Barriers    

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1.  Forrester,  October  2014,  “Road  to  Cross-­‐Channel  Maturity”  

43%  

Few  Brands  Have  Expert  Data  Skills1  

Data  Integra4on  

35%  Data  Segmenta4on  

33%  Data  Quality  Management   2.5X  Annual  growth  rate  in  volume  of  customer  

data  records  onboarded  per  month  

76%  are  doing  some  tracking  of  mobile  impressions  to  offline  sales  

39%  Measurement  

43%  Data  Collec4on  /  Aggrega4on  

Insurer  Increases  Applica4on  Rates  by  34%  

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34%  Measured    

mul4-­‐channel  impact  Increase  in  

applica4on  rates  

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3  ATTRIBUTION  

Trend  #4:  Mul/-­‐Touch  ARribu/on  

Unifica/on  of  Teams  

 35%          40%        25%  

Prospec,ng  ad  (ebay.com)  

BRAND.COM  Visit  

Remarke,ng  ad  (espn.com)  

Remarke,ng  ad  on  Facebook    (FBX)  

CONVERSION  

1

2

3

Increased  Pathway  Visibility  

Sample  Pathway  A  Across  display-­‐only  Inventory  

Increased  Pathway  Visibility  

Sample  Pathway  B  Across  Media  Partners  

About.com  (MediaMath)  

BRAND.COM  Visit  

Youtube.com  (Pre-­‐roll  video)  

Yahoo  Homepage  (Direct  Guaranteed  Deal)  

Google    (Paid  Search)  

CONVERSION  

1

2

3

4

25%        15%      35%      25%  

Closing  the  Loop  Case  Study:  GiW  Retailer  

Goal:  Capture  new  consumers  during  the  off-­‐season  buying  period  

Solu,on:  Used  MediaMath  and  CLA  partner  Convertro  to  ingest  custom  data  for  beXer  evalua4on  of  inventory,  understand  impressions  that  led  to  higher  value  and  more  revenue,  and  thus  allocate  budget  accordingly  Success:  Leveraging  advanced  aXribu4on  data  at  every  bid  decision,  the  client  saw  a  21%  increase  in  ROAS    

Direct  Response  

Brand  Direct  

Connec4ng  the  Dots  Between  Offline  &  Online  

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TRANSACTION  DATA  

ONBOARDING  SERVICE   MEASUREMENT  APPLICATION  

EXPOSURE  LOGS  

TRANSACTION  SYSTEMS   MEDIAMATH  DSP  

ANONYMIZED  RECORDS  

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4   VIDEO  &  ADDRESSABLE  TV  

Consumer  Habits  Are  Changing  

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6  min  

55  min  

More  Time  Spent  Daily  With  Digital  Video  

2010  

2014  

Most  Digital  Video  is  Consumed  Via  Mobile  

Mobile  

Desktop  

eMarketer,  Video  Content  Roundup,  May  2014  

Technology  Advances  Driving  Higher  Spend  

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•  BeXer  viewer  experience  

•  BeXer  viewability  standards  

•  BeXer  measurement  

•  More  inventory  

•  Ability  to  target  on  1st  and  3rd  party  data  

Mobile   Desktop  

2X  

eMarketer,  June  2014  

Addressable  TV  Star4ng  to  Get  Trac4on  

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1.  Ad  Age,  February  19,  2014,  “The  CMO’s  Guide  to  Addressable  TV  Adver4sing”  2.  eMarketer,  November  2014  3.  Videology,  December  2013  

Your  Ad  Here  

50M   Addressable  TV  households  in  the  US1  

29%   US  popula4on  uses  a  connected  TV2  

68%   Adver4sers  expect  to  plan  video  campaigns  holis4cally  

CPG  Brand  Generates  26%  Lig  in  Retail  Sales  

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26%  Lig  from  targe4ng  on  purchase  data  

18%  Lig  from  retarge4ng  

TV  viewers  

Thank You!

For more, download the new Guide to Measuring the Impact of Digital Marketing on Offline Sales

http://bit.ly/1BAMRSe Justin Schuster VP of Marketing LiveRamp

Mike Monaco VP, Programmatic Strategy & Optimization, MediaMath