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© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution
How can Publishers and Advertisers work with data and DMP's
Danish RTB Update Copenhagen, August 28 2013
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital2
Discussion topics
Krux approach to Big Data What can Krux do for Publishers What can Krux do for Advertisers How does Krux integrate with SSP’s & DSP’s Thoughts on Data Ownership
Krux approach to Big Data
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital4
Audience buying is mainstream – marketers now prioritize audience above placement, price, and inventory guarantees
Source: Forrester June 2011
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital5
The market’s shift to audience-based advertising is also catalyzing spend shift to ‘programmatic’ RTB channels
Source: IDC, October 2012
RTB spend is going from zero to $5B in less than five years. RTB-direct is on pace to hit $1B in 2016, 13% of RTB activity overall. Through private exchanges (e.g., NBC UAP, WSJ AudEx), publishers are
increasingly using programmatic channels for direct sales.
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital
Krux brings to bear the background, focus, and technology required to help our clients thrive in a data-driven world
Pioneers in digital media technology and monetization
Unmatched experience with digital media leaders
Unparalleled platform breadth and flexibility
Monetize
Manage Protect
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital7
Krux’s cloud-based DMP helps companies deliver more relevant, more valuable advertising, content, and commerce
Protect: We help detect and prevent theft of consumer cookie data
Manage: We help make audience data actionable, web pages faster, and website management more efficient
Monetize: We help clients representing >720M users worldwide create:
- more valuable advertising
- more relevant content
- more effective commerce
What can Krux do for Publishers?
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital9
Media owners are feeling pressure from all sides as the entire market becomes data-driven and audience-aware
Enabling arbitrage & eroding value
Networks, Platforms, Exchanges
Bypassing direct sales channels
Agencies, Marketers, DSPs
Increasing focus on privacy
Regulators, Industry Groups
Differentiated products
Competing Publishers
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital10
Given fundamental market shifts, leading sites must harness audience data to remain competitive and grow their business
InsightMitigate data & revenue risks
AnalysisRefine product & sales strategy
ActionPursue new market opportunities
Investment in data protection solutions
Protectionist approach to partner Ts & Cs
Aligning business practice with privacy policy
DMP investmentOrganize/activate 1st, 2nd
and 3rd party data assetsPursue audience-aware
product and sales strategy
Programmatic direct salesRTB ‘reach extension’Private marketplaces Data-only salesContent targeting
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital11
Media owners have an enormous amount of largely untapped consumer insight at their fingertips
Users’ content affinity, interests, and intent.
Select 3rd-party data sources to enrich 1st-party insights
Referral URL and keyword, exposing where users came from and why
Subscription and registration information
Interactions and engagement with ads and content
Social insights – likes and shares
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital12
Harnessing the power of that data leads to improved pricing, increased sell-through, and revenue growth
EXTEND your audience reach across the web
GROW your audience & deepen engagement
Use data to ENHANCE existing products
EXPOSE actionable insights about your audience
Use data to CREATE new products and packages
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital13
Publisher benefits from using a DMP
Improve CPMs on your direct sold inventory
Create additional ad inventory with audience extension
Increase CPMs on programmatic-sold inventory
Create smarter ad products: include re-targeting, engagement
Grow e-commerce revenues
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital14
Impact
Example: A social content publisher uses Krux to open new spend categories and deliver more valuable advertising experiences
Situation No reliable, efficient process for audience
discovery and segmentation No holistic data and targeting strategy
- Discouraged sales team adoption of targeting - Limited data-driven revenue opportunity
728x90 300x250 300x600Baseline eCPM eCPM with Krux
220% lift
269% lift
93% lift
Response Consolidated 1st party data and
energized audience assets with 3rd party data sources
Created ‘audience-aware’ product strategy- Smarter, better performing products - New products to open non-endemic ad spend - Stronger user experieinces
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital15
Example: A large magazine publisher uses Krux to extend a key audience segment across the rest of their inventory
Situation A multi-site publisher has a valuable 1st party segment that always sells outResponse Krux DMP used for segmentation and targeting to access on other sites in their
networkImpactSmarter, better performing products – decreasing the publishers’ reliance on
remnant channelsNew offerings grew previously limited inventory base
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital16
Example: A woman’s health & beauty site uses Krux to extend a key audience segment across off-site exchange inventory
Situation Publisher has valuable 1st party audience that sells out on the originating siteResponse Krux DMP used for segmentation/targeting to access this audience elsewhere Krux identified & targeted those users as they traveled across other quality sitesImpact The publisher has created an ‘audience-aware’ product strategy- Increasing the publisher’s available inventory of hair care users- New offerings grew a previously limited inventory base
What can Krux do for Advertisers
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital18
Many Publishers are Advertisers
Many Krux clients operate branding and direct response campaigns- Prospecting: attract new subscribers to paywall products
- Retention: to target renewing or lapsed subscribers
- Re-target users abandoning shopping baskets on e-commerce areas of site
Previously, these campaigns may have been outsourced- Internal marketing teams starting to use DMP capability to combine
customer data sets with precise audience targeting
- On-site and increasingly, across Ad Exchanges
- Krux can create safe-site lists for targeting using the clients own audiences browsing habits
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital19
Advertiser benefits of using a DMP
Increased insight into the audiences consuming your sites
Integrate all data sources to build a cohesive consumer experience
Re-targeting high value audiences with audience extension
Retain control over data assets and share only the data you want
Optimise site content, manage latency issues and compliance programs
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital20
Action
The more an Advertiser knows about how users interact with its brands the better positioned they are for product line growth
Better understand their usage of your brands across mediums
So you can…
Tailor campaign advertisements to each segment of users
More specifically target offers for renewals, heavy site users, cross brand promotions etc…
Expand known data points about registered users/subscribers
Customize your product offerings based on your most loyal users actions
Merge users’ mobile and online behavior with their offline database record
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital21
First-party consumer and third party relationships provide many sources of, and uses for, audience data
Third-Party Data Providers
Privacy Tools
Privacy Settings
Registration & Purchase
Web & Mobile Activity
Site Analytics/
MVT
Data Elements
Publishers, Partners
CRM/Loyalty programs
Re-Targeting solutions
DSP’s/Trading Desks
Content Targeting
Actionable Segments
CMS
How does Krux integrate with SSP’s and DSP’s
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital23
The Krux platform allows a web-site operator to capture, control, and connect 1st, 2nd, and 3rd party data to create audience value
ConsumersKrux Platform
Audience Data Elements
Web Analytics
3rd partyData
AgencyData
Content and Ad Servers
Offline/CRM
Registration Data
Data Transfer Files
Segments in Key Value Pairs
Ad Selection
Audience Data Elements
Page and user data
ClientWeb Site
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital24
Interchange Extension
Interchange O&O
Interchange Marketing
Krux Interchange – flexible market access to match to clients’ business practices, revenue goals, and privacy policy
Interchange Connect
Sharing data with trusted partners
Targeting first-party media
Targeting first-party commerce and marketing
Exchange-based media buying
CMSCRMSubs/Reg
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital25
Integration Use Cases
There are 2 ways in which the Krux DMP can integrate the audience segments managed in Krux into an SSP or DSP:
Client-side: in this mode of integration, the SSP/DSP provides Krux with a datasync pixel using Krux SuperTag
Server-to-Server: in this mode of integration, Krux and SSP match users using a Cookie-Matching process and then Krux provides a data file via SFTP or Amazon S3
Bi-directional relationship: Krux ingests ‘raw’ ad server impression log files via API
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital
Example SSP integration: passing user segment information to Rubicon and ad serving logs to Krux
26
Users
Krux Platform
Partner Sites(no Krux
Control Tag)
Ad Serving Logs for Yield Analytics
Ad Selection
Page and user data
Partner Sites(with Krux
Control Tag) Page and user data
Krux Control Tag fires on site Reads/assigns cookie Loads core code Fires SuperTag tags Collects data Reads context information Assigns context categories
Krux pixel fires to send data to Platform
Segment Membership,
User ID
Ad Selection
Network tag fires in partner ad server
Krux Control Tag fires from network tag Reads/assigns cookie Loads core code Fires SuperTag tags Collects data Reads context information Assigns context categories
Krux pixel fires to send data to Platform
Thoughts on Data Ownership
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital
Who owns the data
There is no single, simple answer- A possible definition: ‘Ownership’ can be attributed
based on how the data is being used- Qualifying statement: the ability to use that data does
not necessarily imply ownership!
Example 1: Advertiser re-targeting: - Advertiser-owned data- Media owner is only providing inventory/safe
environment for campaign delivery
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital
Who owns the data
Example 2: Publisher trading data in private marketplace- Publisher first party data being bundled with ad
inventory and sold in a direct deal- Agency can use the data (possibly lots of times!)- Publisher needs to have the right DMP in place to
retain control- And, the Publishers needs to have a data strategy:
Segments with built in expiry date (e.g. in market for credit card)
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital
Who owns the data
Example 3: Third-party data provider- Aggregated first party data- Value is created in the aggregation so the Data
Provider is the owner
Looking forward: the adoption of DMP’s by media owners and advertisers may level the playing field for illicit data collection/harvesting- Uses cases/strategy will be key to defining value &
ownership
Thank you for listening
31
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution
Any questions?
Richard [email protected]@richardpfoster
Skype: richardpfoster
© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital33
Krux’s distinguishes itself from the competition in six key ways
Flexibility
Synthesis
Real-time
Big Data
Big Analytics
Security
Highest degree of flexibility in defining and operationalizing consumer segments Client-driven taxonomies and event-based framework for measuring engagement
Extract-Once, Load-Everywhere model brings catacombed datasets online in days Schema-on-read approach ingests data in its preexisting structure (or lack thereof)
Only provider with real-time execution, segmenting users in-session in <75 ms True real-time decisioning informed by client-specific business rules and use cases
Ground-up integration of Big Data technologies (Hadoop, Cassandra, Hive, Redis) Architected to support data volume/velocity/variety for the emerging consumer web
Classification/clustering/discovery to deliver right time/right place insight and action Exposing what consumers want even when clients don’t know what questions to ask
Only provider to deliver first-party web data security (and a pioneer in the field) Only provider to encrypt via dynamic, transient, symmetric public-private keys Only provider with security model premised on data segregation not data merger