What programmatic marketing really means for research

Why programmatic marketing changes everything (and, what it means for

researchers)

Joel Rubinson, PresidentRubinson Partners, [email protected] Blog.joelrubinson.netTwitter: @joelrubinson

October, 2015

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Property of Rubinson Partners. Not to be shared without permission

Traditional media buyingMedia accumulates an audience Marketers seek consumers

Nielsen ratings Overall, within demoProfiles of who watchesCost for a 30” spot

Who does Unilever want to reach with their message

Audience accumulated by media Media company responsible for knowledge about the audience Indexing Intuitive matching of audience profiles and marketer segments, aided by optimization

software Direct deals with commitments


Traditional media buyingMedia accumulates an audience Marketers seek consumers

Nielsen ratings Overall, within demoProfiles of who watchesCost for a 30” spot

Who does Unilever want to reach with their message

Audience accumulated by media Media company responsible for knowledge about the audience Indexing Intuitive matching of audience profiles and marketer segments, aided by optimization

software Direct deals with commitments

All of this changes in a

All of this changes in a

programmatic advertising world

programmatic advertising world


Quintessential programmatic…real time bidding (RTB), open exchange

1. A user requests a webpage which generates an ad impression serving opportunity

2. Publisher decides to put this impression up for bid via RTB

3. If the advertiser knows something about this user and they are valuable to them, they bid for the right to serve an impression

4. The winning bid serves the creative asset of their choosing


Programmatic marketing is a big deal

eMarketer pegs programmatic at $15 Billion this year, having grown 50%

Carat reports that, in the US, programmatic transactions will account for 52% of non-search digital advertising spend.

The marketer’s dream…serve the right message to the right user at the right time on the right screen.


Programmatic is like picking the cashews out of the bowl of mixed nuts*!

Advertisers can pick the audience they want to serve impressions

*Metaphor courtesy of Josh Chasin, Chief Research Officer at comScore


Programmatic is a sea change in the way marketing works

1. The advertiser amasses the audience based on their own ad serving rules…bottom up approach

2. It is now the advertiser’s responsibility to know each audience member

3. All of this is driven by data, the new competitive fuel4. Better fuel = better performance, making data its own

imperative. a. Boosts the value of first party data.b. Drives marketers to connect the screens using a persistent IDc. Makes content marketing and “always on” marketing strategies

much more important.d. Drives media practices to embrace programmatic everywhere


The power of data…hypothetical

A browser who, in reality, is a male millennial who buys tooth whitening products, visits Huffington Post, and the instance is put out for bid.

Procter: has this user in their DMP because they visited their web properties and they signed up for e-mails (registration gives accurate demos—first party data.) Working with Datalogix, they know this “browser” buys tooth whitening toothpaste via frequent shopper data.

Colgate: Working with a DMP and data aggregator, they believe this is a male aged 35-44.

Result: Procter will win this bid because what they know about the user makes them more valuable. Marketing efficiency comes purely from the power of data.

If this is repeated over and over, Procter will have a huge marketing efficiency advantage over Colgate, over and above any issues regarding the strength of Crest vs. Colgate


There is only one way this can go…


Programmatic change table

Traditional Programmatic

Media owns audience…top down process Advertiser accumulates audience…bottom up process

Media must know audience Advertiser must know something about each user

Buys are pre-established and advertising is scheduled

Advertising can be adjusted in real time by changing bidding and ad serving rules

Buying on context Buying on user characteristics

Decisions based on generalizations Decisions based on tactical user data

Does NOT require data driven marketing DOES require data-driven marketing

Traditional research can guide this Traditional research disconnected from this process

Analytics are retrospective and descriptive Analytics are predictive


Programmatic implications for marketing researchTraditional Programmatic

Media owns audience…top down Advertiser accumulates audience…bottom up

Media must know audience Advertiser must know something about each user

Buys are pre-established and advertising is scheduled

Advertising can be adjusted in real time by changing bidding and ad serving rules

Buying on context Buying on user characteristics

Decisions based on generalizations Decisions based on tactical user data

Does NOT require data driven marketing DOES require data-driven marketing

Traditional research can guide this Traditional research disconnected from this process

Analytics are retrospective and descriptive Analytics are predictive


In a programmatic world, Marketing research’s role is to keep marketing strategic, productive, and centered on the human

“I believe in the power of connected ideas”Christian Kugel, Director Marketing Research

and Consumer Analytics, AOL But marketing research must also be

actionable at optimizing tactical actionOtherwise, it will be dismissed as irrelevant


Segmentation:Are your segments “findable”?Can you build good lookalike models?


Brand equity:Can you create predictive models using profiling attributes?


Brand equity modeling must include response modeling

BEijt= f(Aijkt)Predicting brand equity as a function of

attribute ratings R0,1=f(DPi,T,S,…)

Predicting response…clicks or brand equity… from digital profiling, time of ad serving, screen, etc.


So what’s missing?


Top priority 1: integrate survey and digital data

We must learn how to integrate digital and survey data together, or what I think of as, “Going beyond the survey”


Enriching survey data

Lightspeed and GMI offer the ability to survey people who can be matched to digital data profiles

You can survey people whose digital behaviors are known


LiveRamp


Top-priority 2: Real-time data systems

By integrating digital profiling information, marketing research can improve media agency bidding and targeting rules while in-flight

This can improve marketing productivity by 10-20%


Top-priority 3: connect the screens

Increasingly, the consumer media day includes use of multiple screens.

To fully understand the consumer journey, research must connect use across screens in a consumer-centered way


Top-priority 4: adopt a predictive mindset

Integrate digital and social data metrics that can have predictive value and then build these linkages

Think t+1, not t-1. Foresight…see what is coming next


A predictive mindset

Traditional marketing research: questions about the past

Data science: questions about the future

Campaign assessment Campaign optimizationWhat is the profile of our current customers? How do we identify lookalikes for our current

customers for ad targeting purposes?

What brand attributes define our positioning? What targetable behaviors, preferences and conversations in social and digital data identify those most likely to respond to our advertising?

What media expenditures most correlate to sales?

What message delivered on what screen, in what context, to which user is most likely to generate positive response?

What is the mix of products people buy on given shopping trips?

What should the retailer overstock for the upcoming storm?

What is our trial forecast? How do we target likely triers?


And what might be coming next?

Programmatic TV is here…it affects a small percent of inventory TODAY, but it is coming so get ready for the avalanche

IoT use case: digitalizing the home replenishment process


An amazing opportunity to create disruptive offerings

http://blog.joelrubinson.net/2015/07/what-marketing-research-must-do-differently-in-a-data-driven-age/


[email protected] Blog.joelrubinson.net Twitter: @joelrubinson

Thank you!

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What programmatic marketing really means for research

Marketing

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