Agencies, Advertisers and Consumers: The Digital Challenge

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1 Agencies, Advertisers and Consumers: The Digital Challenge Presented By: Adolfo Ramirez Media Practice Lead, AKA Enterprise Solutions (212)

2 Agencies and the digital challenge Programmatic Buying Agencies & Advertisers : New data and process challenges Overview Publishers and Advertisers Transition To Digital Advertising New Data Analytics Challenges New buying options Consumer Experience Privacy And Data Management

3 Need to become experts on a platform that opens the door to new technologies, measurements and data needs Not prepared for that Agencies and the Digital Challenge Agencies initially had low expectations for the digital revolution Challenged by other players, born in the digital era!. (Google, Facebook). In the digital world, the campaigns are now about a business Solution, not just a marketing one

4 Agencies and the Digital Challenge Agencies need to become integrators Know the new technologies offer the best option to their clients Business Solution Approach Single Data Management process Programmatic buying. Agencies are having to deal with a technologically advanced competition by embracing the process and offering it as a service to their clients

5 What is it? Buying and selling media in an automated fashion (programmatic bidding) through: Open auctions Private auctions Unreserved fixed rate deals Programmatic guaranteed deals Programmatic Buying RTB: Real Time Bidding. Marketers can bid to show an ad based on data from the user looking at the page The right ad, to the right person, at the right time The ad exchange Marketplace. connects to DSP which is where agencies and brands are connected to buy on the exchange

6 Programmatic Buying Source : IAB

7 Programmatic Buying What is happening with it? Advertisers are setting up their own ad exchanges bypassing the agencies. DSP platforms available Agencies are setting their own trade desks, providing their clients with the service Advertisers do not have to invest in the technology Employ a consultative approach to their service New options in programmatic buying. Takeovers Sponsorships Machines are not taking over We still need the human element, but a different type of buyer The task is changing from negotiating and buying media placements, to analyzing and manipulating data Data Analytics Expert

8 A lot more data points and disparate technologies are used to execute and track the campaigns New challenges arise during the reconciliation process Ad server Actuals tracking Agencies and Advertisers Agencies want to get paid The advertiser pays the agency, which in turn pays the publisher Advertiser does not get billed until the reconciliation takes place IAB created The Impression Exchange Implementation Guidelines Publishers retrieve Agency s TPAS data daily Publishers compare data retrieved from the TPAS with their own internal counts More timely response Finally, publishers deliver invoices that are based on an accurate representation of agency impression/click counts.

9 Other IAB guidelines to improve process: Hold regular cross-departmental meetings/communications to discuss open invoices Agencies and Advertisers Provide logins for publishers systems to monitor numbers during campaign run in order to proactively detect discrepancies Reconcile media on a monthly, not endof-campaign, basis Use a system integrator that can take data from the ad-serving technologies and report differences to both parties in real time

10 More publishers are finally adopting a digital strategy in one way or another. Some already left print behind Timing of the transition varies by market. The Publisher Challenge Trucking magazines are still leading over digital properties, Technology magazines and newspapers are falling behind Late reaction against new competitors born on the digital space It s happening again! behind on the next revolution : Mobile! Reluctant to reinvent their products and content for a mobile-driven platform.

11 What to do? Deliver content and advertising to a multi-platform environment. Understand where is the consumer actually consuming the content / advertising The Publisher Challenge Develop technology and human expertise for the new realities. The place and way in which their ads are served is transparent to the client. Data analytics strategy Find what platforms are providing the best results for their clients and their content

12 It s a print and/or broadcast digital industry! The Publisher Challenge The systems supporting the business are getting up to speed on how to handle this multiplatform reality Newer technologies like real-time synchronized TV and digital advertising are becoming available One critical element of this new reality Data Analytics

13 New Data Analytics Challenges for Publishers Any industry that seeks to drive advertising revenues requires more than just the audience or tools; it needs measurement data to evolve further. It requires data that gives advertisers the visibility to decide on the timing, channels, and target audiences, and shows the way for publishers to communicate about their audience size and demographics Huno Versakalo. CEO Verto Analytics

14 Data is inaccurate and incomplete. Broadcasting and print systems have established data measurements New Data Analytics Challenges for Publishers Digital media is available 24/7, everywhere to anyone. Unless subscriptions are required, publishers had little chance to view who accesses the content Advertisers feel more comfortable spending their ad dollars on established, well measured media outlets today. But internet companies are providing data to create the same reliability as print and broadcast Google Analytics

15 How to measure campaign effectiveness in a multi-platform environment Systems are able to provide publishers and agencies with the right tools to analyze and offer competitive options to their clients New Data Analytics Challenges for Publishers Digital has the ability to provide a proof of effectiveness (purchase action) like no other platform can Publishers deal with multiple production and measurement technologies to be able to serve ads and track deliveries going to great lengths to bundle everything for their clients Today new technologies are emerging to measure print/digital and broadcast effectiveness in a single process

16 Advertisers can now buy their own ads through programmatic exchanges Ad technologies allow advertisers to target a consumer, based on what they have bought or searched anywhere else on the internet Big Data in action New Options for Advertisers Native Advertising or Programmatic Advertising? Machine based media buying versus advertising that blurs the line between editorial and content Native advertising custom advertising Integrated Ads Programmatic and real time buying (RTB) Scalable solution for marketers based on data If you only know who your ad is reaching, and don t know exactly where the user is seeing the ad (i.e., because you are buying media via ad exchanges) becomes very difficult to customize experience

17 New Challenges For Advertisers Data transparency for advertisers is tricky, sometimes they do not know where they are buying ad space If we don t help customers understand the basics of what they are purchasing and how it can drive sales for their businesses, we are setting the stage for problems down the road. Train sales teams to be consulting teams! Data analytics and predictive data services provide insight on the behavior of consumers, brand placement and many other elements required to spend ad dollars more effectively

18 The Consumer Experience Multiplatform environment; consumers are multitasking on many platforms Traditional online advertising (banners, leaderboards, takeovers) are usually considered negative, highly intrusive Advertising is essentially hidden... Native advertising is embedded in content. Not as clear as other platforms. Too much data being tracked on our digital experience as consumers. Ads are now required to inform you that you are being targeted based on your browsing history!

19 The Consumer Experience Digital marketing has created a remarkable opportunity, but it comes with higher expectations from consumers, wrote Ann Lewnes, CMO of Adobe, in the report. They expect a story tailored especially for them, a level of trust and transparency with the brands they do business with and, most importantly, a great experience. Brands delivering anything less will ultimately be ignored.

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