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Making Programmatic WorkAchieving marketing goals through

data and algorithmsFrith Fraser, Director, Platform Solutions, APAC

What is your advertising goal?

Optimizing to Goals, not Guesses

©2014 MEDIAMATH INC. 3

What is your true advertising goal?• The right goal for the right

product• Return on marketing

investment?• Offline

attribution/custom attribution

• Branding engagement metrics• Understanding

audiences• Look beyond the click• Does CPC answer your

marketing goal?

What does the programmatic opportunity look like?

2.5 trillion impressions are available on a monthly basis globally

In the UK, 107 billion monthly impressions

available

In the US, 900 billion monthly impressions

available

In Australia, 40 billion monthly impressions

available

In Japan alone, 93 billion impressions and video units run through MediaMath’s

TerminalOne System monthly

In Brazil, 115 billion monthly impressions

available

Canada

160 million data points

More than 21 billion global data points with over 350 data partners

USA

13 billion data points

France

45 million data points

UK

61 million data points

Germany

42 million data points

Brazil

160 million data points

China

16 million data points

Japan

10 million data points

India

50 million data

points

Australia

24 million data points

Seconds in the average human lifespan?

Ants on planet Earth?

~ 2.5B

~ 1Q

Galaxies in the observable universe? ~ 150B

Quiz time

• 50 billion impressions per day • 200 variables per impression • 100 values per variable

= 1,000,000,000,000,000 pieces of data per day

(1015 = ONE QUADRILLION)

Let’s talk about data in RTB

That’s a whole lot of data.How do we manage this?

Unlocking the chaosAlgorithms

Optimization

Programmati cAutomation

Predictive Modeling

Machine learning

Decision engines

The two buyer questions that matter:

©2014 MEDIAMATH INC. 12

Question 1:What is the right bid for each

impression?

Question 2:Which impressions should I buy?

What price should I pay?

Too high Overpay &

underperform

Too low Lose out &

underspend

Just rightMaximise scale &

performance

What is the right bid for each impression?

Question 1: A simple exercise

xGoal Value Bid Price=Action Rate

What is the right bid for each impression?

JPY1000 prizeJPY500

Bid Price50% chance

Flip a coin to win the prize

1% chance consumer takes desired action

(purchase)

Question 1: The real thing

¥5000 value to advertiser

(CPA)

Bid for an RTB ad

¥50 bid price (breakeven)

Bid Price=xGoal Value Action Rate

Your ad here

What is the right bid for each impression?

A different model for every creative in every campaign of every advertiser – all in real time!

Answering Question 1:

VideoPublisher: YouTubeUnit: 15 sec pre rollTime: 16.46 – 17.00Age: 25-34Gender: MalePrice: JPY1500

SocialPublisher: FBXUnit: NewsfeedDay: TuesdayTime: 5.00pm – 5.15pmPrice: JPY300

DisplayPublisher: RubiconData: Rakuten MaleLocation: TokyoCreative size: 160 x 600Price: JPY300

Question 2: Which impressions should I buy?

• ~100MM/day of RTB supply

• Typical campaign spends ~$1K/day (0.001% of total supply)

• Not buying the RIGHT 0.001% is throwing money away

Answering Question 2: Defining value

Bid Price

Market Price

What it’s worth to me

What I have to payRelative

Value==

• Cheap impressions are not necessarily good

• Good impressions are not necessarily cheap

The benefits

And the results are typically 10x better

Analyze 10-20 buys weekly Analyze 1MM opps. per sec.

Fixed price, regardless of value Variable bidding, aligned with value

Little/no insight into true drivers Full insights into “what” & “why”

Manual, labor-intensive (~50/FTE)

Fully automated, scalable (~5/FTE)

Buy in batch Buy what you want

Key learnings

• Create a strategic programmatic vision

• Set a true goal

• Ensure access to maximum amount of supply

• Ensure the ability to onboard data sets

Key learnings

• Utilise a world-class algorithm• Use a predictive model to determine what each

impression is worth• Use optimisation to determine which impressions

to bid for

• Provide meaningful and relevant analysis to

your client

• Build a knowledgeable and capable team

THANK YOU

ffraser@mediamath.com

@mediamathAPAC

facebook.com/mediamath