Digital Media and Analytics

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1 Digital Media and Analytics How to leverage a powerful new set of techniques for digital media buying and program measurement to drive business results

2 CRM Drives Competitive Advantage We believe market leaders drive competitive advantage through the ability to understand, influence, measure consumer behavior at the individual level but at mass scale. 2

3 Risk and Opportunity Growth Digital media spend is big and growing proportionately bigger Capability The technology has dramatically leapfrogged the current model Skillsets The data driven know how to exploit that advancement already exists 3

4 The Market Shift Toolsets Toolsets Current Market Competitive Advantage Media Ad Tech& CRM Knowhow Knowhow Knowhow 4

5 Merkle Media Trading Desk Merkle CDI Capabilities Advanced Retargeting Data Validation Services Lead Scoring Merkle Media Trading Desk DYNAMIC CREATIVE DMP DSP Direct Publishers AD VERIFICATION ATTRIBUTION INVENTORY Exchanges/SSPs DATA PROVIDERS Data Providers 5

6 Media Planning Old Media Planning New Media Planning Display Media Plan Display Media Plan Many Vendors Ad.com Collective Media One Platform Cross sell & upsell Prospecting Tribal Fusion Winbacks 6

7 The Engine Ari Buchalter, Caltech Astrophysicist PhD 7

8 Serving a Single Ad User data User History Channel Ad Size Offer Creative Publisher Geo Time of Day Frequency Offline History 10s-100s of variables Highly nonlinear Dynamic Media data Ad data Day of Week Real-time Message Over 20B impression opportunities per day in display alone! 8 Predicted Response Rate x Buyer s Goal Value = Bid CPM

9 The Science behind the Engine An algorithmic machine-learning approach is necessary to optimize display media 9

10 Revving the Engine within a Channel The fact that users see multiple ads opens up other optimization opportunities: Exposure tracking Message sequencing Dynamic creative Partial attribution Connecting the dots across ads is as important as knowing what each impression is worth 10

11 Full Throttle: Multi-Channel Optimization As we move beyond 2011, optimization within one channel won t be enough, as users interact with brands across digital channels Additional focus is needed on: Cross-channel tracking Display Search Multi-channel optimization Cross-channel attribution & decisioning Social Mobile Beyond 2012, even more channels are addressable (DOOH, IPTV, etc.) 11

12 The Analytics Peter Vandre, MIT Economist 12

13 Effective Measurement New Media Targeting= Rocket Science Now some advice to actually start measuring this stuff Get started- basic improvements on last click attribution Cross media testing Attribution modeling Tackle offline to online 13

14 Better Direct Attribution Look Familiar? Closer to Reality View Thru 2 View Thru 1 2 nd Click 5% 15% 20% 14 Last Click Your Other Media 1 st Click Analysis Priorities 60% 1. Play around with your attribution assumptions How sensitive are they? 2. Focus on refining view thru window assumptions 3. Analyze and test interactions across media types

15 Testing to Improve Measurement Goal: Estimate Incremental impact of paid search terms Situation: Major retailer High % of spend on branded paid search How much is really incremental? Solution Branded keyword blackout test Outcome: Estimate 40% cannibalization between Paid and organic search Adjust keyword values accordingly in targeting Shut off SEM Compare to post period Incremental= Est. organic orders- actual organic 15

16 Modeling to Improve Measurement Goal: Estimate Incremental performance for each digital campaign Situation: Major Financial Services Company Huge brand spend What is ROI of digital media? Solution: Attribution modeling Campaign level reporting Outcome: Ongoing incremental campaign estimates Rebalancing between top/bottom of funnel 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Incremental Impact Search Agg Lead Gen Agg Ins Video Display 16

17 Modeling Offline and Online Interactions Goal: Estimate Incremental performance for each digital campaign Situation: Financial Services Company Large DM program Wanted to see if Display could lift DM Solution: Controlled test Offline to online direct match Targeted display and DM Outcome: Able to measure display lift on DM program 17% lift on DM with display 1 Pull Prospect Lists 2 Target in media 3 DM Only RTB Inventory Analyze Results Database DM + Display Display Responsive Audiences DM Responsive Audiences 17 Display Only 95% of US Population Auction Marketplace

18 Impact Megan Pagliuca, Ad Tech Evangelist 18

19 Increased Efficiency Consolidate Buys to One Platform Example 1: Example 2: 70% 60% 50% 40% 30% 20% 10% Unique Users / Users Impressions by by Frequency for July 80% 70% 60% 50% 40% 30% 20% 10% Metric Total Percent Average # Impression 5 Total Unique Users 10,000,000 Total Impressions/ Month 50,000, % Optimal Impressions 25,000,000 50% Questionable Impressions 15,000,000 30% Waste Impressions 10,000,000 20% 0% % 19 Undercontacting 66% of the users see only one impression Overcontacting 20% of impressions were being shown to users with at 50+ frequency

20 Decreased CPA Integrated Credit Card Approval Data into Algorithm Situation: Fi Serve Advertiser Decrease cost per acquisition of new credit card approvals $ $ $ Targeted Display CPA vs. Spend Spend CPA (Indexed) $90,000 $80,000 $70,000 $60,000 $50,000 $ $40,000 Outcome: 5x improvement when offline data was incorporated in algorithm $ $50.00 $- $30,000 $20,000 $10,000 $- Integrated credit card approval 20

21 CPA Increased Volume High Value Accounts Built Integrate Multi-Channel Acquisition (I.M.A.) Program Situation: Fi Serve Advertiser Increase # of high value checking accounts Increase online and branch account opens Outcome: 217% decrease in Cost per New Account 143% increase in percent of High Value/Low Value Responders at same budget level Merkle Data Driven Program TIME Traditional Agency Program 21

22 7 Things You Can Do To Improve Your Digital Media Program Tomorrow 1. Work with the media trading desk that best suits your needs 2. Centralizing execution into a single targeting platform 3. Do not work with partners that don t give you transparency 4. Ensure site and data collection allow you to collect offline data at every opportunity 5. Pass offline conversion and/or value data into online algorithm 6. Ensure measurement & analysis is being done at the impression level, using just a dsp or ad server aggregate reporting does not give you the full picture 7. Start testing and thinking about your media budget based on incremental impact 22

23 Questions??? 23

24 Round Table Questions Where does the responsibility for Media sit in your organization? How is it connected to CRM activities? Are you using an Agency Trading Desk or is your agency working directly with publishers Have you started consolidating your data-driven buys? If so, why not? What is something you can take back to your office this week to take advantage of some of these changes in the landscape? Are you using display to drive offline actions? Why or why not? Are you integrating back end metrics into display targeting? 24

25 Megan Pagliuca VP, Digital Media Ari Buchalter COO, Mediamath Peter Vandre VP, Digital Analytics

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