Transcript presentation

An Entravision Company
TDWI EXECUTIVE SUMMIT 2015
How Big Data is Reshaping the
Digital Advertising Industry
Oscar E. Padilla
Senior Vice President, Digital Media & Insights
September 23, 2015
© 2015 Pulpo is a fully owned Entravision company
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KEY AREAS WE’LL COVER TODAY
i.
Who we are
ii.
State of the digital advertising industry
iii.
The ad tech ecosystm
iv.
Programmatic 101 and key trends
v.
The role of data in programmatic advertising
vi.
Automotive industry case study
vii.
Closing remarks
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Who is Pulpo: Uniquely positioned to serve the Hispanic market.
Exclusively focused
on (i)Hispanics
Data–driven platform
140M Individual consumers
1,800 Data Sources
30M Hispanic Individuals
200+ Data Attributes
8B Transactional records
True Hadoop Platform
30TBs Monthly Data Refresh1
(i)Hispanic
acculturation model
56 TV Stations
49 Radio Stations
The only holistic ad network that reaches
Hispanics across acculturation levels and
digital devices.
#1 comScore–ranked digital platform
for delivering and reaching the
(i)Hispanic market.
2M Monthly Mobile
Connections
641K Social Media
76 Station Websites
Connections
300 Radio Network Stations
100+ Local Events
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SO HOW DID WE EVOLVE INTO A MEDIA AND INSIGHTS COMPANY?
We brought together two core business units that compliment and help deliver a holistic ad experience
DATA DRIVEN INSIGHTS
PRECISE ONLINE TARGETING
Leverage in-depth & actionable consumer
insights, and hyper-targeted segmentation,
based on acculturation, to improve ROI
BEHAVIORAL INSIGHTS
Leverage transactional data to improve KPIs,
derive business value, and accelerate growth
by uncovering new business opportunities
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U.S. TOTAL MEDIA AD SPENDING BY MEDIA ($BILLIONS)
Source: eMarketer, Sept 2015
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US DIGITAL AD MARKET IS PROJECTED TO REACH NEARLY
$100BIL. BY 2019
US Digital AD Spending, 2014-2019 ($Bil.)
% Change and % of total media ad spending
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HISPANIC TARGETED AD SPEND INCREASED BY 63% SINCE 2010
Over the past five years, the top 500 advertisers boosted their spending in Hispanic targeted
media by 63% or $2.7 billion from $4.3 billion in 2010 to $7.1 billion in 2014
>
US Hispanic media ad spending increased 12.0% in 2014
>
Expenditure on digital formats, network TV and cable TV is
driving growth
>
The top 500 US marketers increased their share of US
Hispanic advertising to 8.4% in 2014 from 5.5% in 2010
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DIGITAL DISPLAY ECOSYSTEM 101
At its very core, the ad tech world is very simply. It’s comprised of a two party partnership between
Advertisers (buyer) and Publishers (sellers)
Two Party Partnership
Advertiser
(Buyer)
Publisher
(Seller)
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Ad ver tisers / Customers
UNDERSTAND DEMAND SIDE AND SUPPLY SIDE PLAYERS
Ad Networks
Publishers
Audience
Publishers
Audience
Agencies &
Media Buyers
Third-Party
Data Supplier
Demand Side
Platform
Data Mgmt.
Platform (DMP)
Demand side (DSP)
Buyer
Real-Time
Bidding (RTB)
Publishers
Audience
Publishers
Audience
Ad Networks
Supply side (SSP)
Seller
Publishers
Audience
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IAB: THE EVOLUTION OF ONLINE DISPLAY ADVERTISING:
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DEMAND SIDE PLATFORMS = PROGRAMMATIC
With programmatic advertising, brands
and agencies can buy ad inventory in an
automated way. You can anonymously
target individuals with ads that are
relevant to their needs and interests,
regardless of the website the ads are
shown on. This practice of mining data to
serve more relevant ads in an automated
way is called programmatic advertising.
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WHAT IS PROGRAMMATIC? IT’S THE AUTOMATION OF BUYING
AND SELLING ADVERTISING USING TECHNOLOGY
Programmatic approaches have primarily been deployed in scale in digital media while TV and Radio are still at the
early stages, and rapidly growing
Media Programmatic
Tools to trade media using business logic to buy inventory. Vendor
aggregates inventory from multiple sources.
Programmatic & Real Time Bidding
Real-Time-Bidding is a method of buy/selling in real-time. This
approach in programmatic broadcast is still at its early stages
Data Programmatic
Data is used to hyper-target audience. Targeting is based on
behavioral targeting through either first-party or third party sources
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WHY IS PROGRAMMATIC SO IMPORTANT TO ADVERTISERS?
Source: Forrester Research 2014
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LESS THAN ONE-QUARTER OF MARKETERS “GET IT”
Pick the statement which best describes your level of understanding of programmatic buying
I understand it and use it
to execute campaigns
23%
Source: AOL Platforms, “7 Things You Need to Know About Programmatic Right Now. August 2014
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Data is critical in supporting
programmatic initiatives; it drives
personalization, targeting and
achieving more precise and relevant
targeting.
MARKETING COMPLEXITY
DATA DRIVEN
Addressable TV,
Cross-Device,
Personalization,
Programmatic
DIGITAL
Email, Website, Search,
Display, Affiliates, Video,
Mobile, Social
TRADITIONAL
Print, Catalog, Direct Mail,
Radio, TV, Telemarketing
1900
2000
2014
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DATA “ONBOARDING” OVERVIEW
It’s the process of matching offline data with an online
data source and creating a targetable cookie pool
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HOW THE PROCESS WORKS
Source: LiveRamp data onboarding process
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FINDING AN ANONYMOUS RECORD MATCH ONLINE
Source: LiveRamp data onboarding process
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Automotive Business Use Case
Leveraging first-party data to develop lookalike models
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AUTOMOTIVE ONLINE ADVERTISING IS PROJECTED TO GROW TO
OVER $12 BILLION BY 2019
U.S. Automotive Industry Digital
Ad Spending 2013-2019 ($ Billions)
$12.1
$10.8
$7.8
$9.6
$8.5
billion
$7.3
$6.2
$5.2
2013
Source: eMarketer, March 2015
2014
2015
2016
2017
2018
2019
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DISPLAY AND VIDEO ADVERTISING ARE THE MOST EFFECTIVE DIGITAL TOOLS
FOR SHAPING PURCHASE DECISIONS
Online ad platforms that most influence automotive purchase decisions of
US internet users (% respondents)
Internet display or video ad
14.8%
Internet search
11.3%
Blogs/review sites
4.7%
Social media
4.3%
Online deals/coupons
3.2%
Mobile/smartphone
1.7%
Tablet computer
1.7%
Source: Television Bureau of Advertising and the Fugures Company Q3 2014
But precisely targeting audiences that matter most
continues to be a challenge
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APPROACH: DEVELOP LOOK-ALIKE MODELS BASED ON BEST CUSTOMER AND
THROUGH DATA ENRICHMENT
Client First Party Data
Luminar Consumer Behavior Data
How we do it: Luminar integrated client
first party data with Luminar’s transactional
data to enrich client guest file, identify
known Hispanics, and build a richer
behavioral consumer profile.
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BUILDING HIGH-VALUE PROSPECT FROM MEDIA CONVERSION DATA
We leverage client’s media conversion data to generate greater consumer intelligence and deliver robust targeting solutions
for both online and offline channels
1
Ingest Customer
Frist Party Data *
2
Ingest conversion data from
digital campaigns and other past
campaign conversion data assets
Luminar Data
Enrichment
140 Million Households
30+ Millions Hispanics
1,200 Data Sources
3
Custom
Modeling
Formulate appropriate models
based on your needs
4
Identify High-Value
Prospects
Score Luminar data sources with
custom client models
Customized Audience Reach
High Value Prospects After Scoring
Propensity media output can be
over layered with Pulpo for precise
targeting online
● CPM reach program
● Drive audience either through dedicated landing page
or Automotive main page
● Pulpo delivers audience media reach
● Integrate Chevy’s automotive KPI objectives
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DATA MATCHING THREE-STEP PROCESS
1
2
3
SECURE UPLOAD
MATCHING
DISTRIBUTION
Custome
r Records
Online
Devices
PII
Removed
Securely uploaded enriched
data set ready for modeling
Anonymous matching
of segmented data
Data activated for use in
marketing applications
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RESULTS
>
We leveraged customer data as first party data to develop appropriate models
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Ingesting conversion data and modeled offline providing a scalable approach to build a more robust
predictive analysis, then onboard the final prospect list
– Keep in mind that the average anonymous cookie has fewer than 25 different pieces of targeting
data associated with their profile
>
The predictive models helped find new prospect to target online who were in the path to purchase but
not yet in market
>
We were able to produce “custom audiences” of customers to target across channels and devices
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FIVE KEY TAKE AWAYS…
1
By the end of 2015, programmatic will account for 55% of all U.S.
digital display ads ($14.8Bil.)
2
Demystifying the programmatic landscape is critical to reach its
full potential, only a small percentage of marketers fully
understand programmatic advertising
3
Data is essential to a programmatic strategy
4
Marketers are turning to their first-party data to drive the greatest
value (i.e. CRM, transactional data)
5
Programmatic is beginning rapidly propagate outside digital and
into non-digital media (TV, Radio)
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Thank you!
Oscar Padilla, Pulpo
Senior VP Marketing, Digital Media & Insights
[email protected]
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