Digital Marke,ng Trends Impac,ng 2015 Budgets
Justin Schuster VP of Marketing LiveRamp
Mike Monaco VP, Programmatic Strategy & Optimization, MediaMath
2
1 PROGRAMMATIC BECOMES THE NORM
pro·∙gram·∙mat·∙ic /ˌprōɡrəˈma4k/
“The applica4on of technology to automate and op4mize the planning, purchasing, execu4on, and analysis of digital marke4ng across channels and across the enterprise.”
Trend #1: Programma/c = The New Normal
2014: Tes/ng the Waters
137% gain over 2013
$10B+ US spend on Programma4c
in 2014
2015: Diving Right In
Rise of Programma/c Premium
PROGRAMMATIC = REMNANT INVENTORY
Rise of Programma/c Premium
PROGRAMMATIC = REMNANT INVENTORY
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Rise of Programma/c Premium
Adop/on by Publishers
+ one of our largest retail
clients
Higher CPMs for publisher;
Greater reach, transparency and performance for adver4sers – 50% incremental user reach
2-‐3x more liQ 2-‐3x more clicks
Premium Programma/c in Ac/on
FROM…
TO… • Programma4c is a line on the plan
• Only RTB display • Hundreds of point solu4ons • Online data • Last-‐touch aXribu4on
Digital Marke/ng is Evolving Rapidly
• Programma4c IS the plan • Premium, all channels, incl. TV • Consolida4on on pla]orms • Merged online + offline • Mul4-‐channel aXribu4on
Image represents percent budget alloca2on to the client’s various efforts
Case Study: Pitney Bowes Goes Programma,c TerminalOne Gets a First Class Stamp of Approval
Case Study: Pitney Bowes Goes Programma/c TerminalOne Gets a First Class Stamp of Approval
• Analyze and op4mize campaigns quickly and efficiently • Gain a more accurate understanding of
their consumers’ online behaviors • Import offline, direct mail data into the
pla]orm and capitalize on specific industry data segmenta4on for their online targe4ng strategies.
Pitney Bowes onboarded TerminalOne and was able to
Proof: 30% year-‐over-‐year growth
14
2 MULTI-‐CHANNEL & CROSS-‐DEVICE
Shig to Data-‐Driven Marke4ng Causing Budget Changes
15
MORE OPPORTUNITY
MAR
KETING COMPLEXITY
1900 2000 2014
TRADITIONAL
DIGITAL
DATA DRIVEN
Print, Catalog, Direct Mail, Radio, TV, Telemarke4ng
Email, Website, Search, Display, Affiliates, Video, Mobile, Social
Programma4c Cross-‐Device, Personaliza4on Addressable TV
2015 BUDGET PRIORITIES
Consumers Want BeXer Cross Channel Experiences
16
90% Consumers expect consistent customer experiences across
channels and devices1
1. SDL, October 2014 2. MyBuys, March 2014, 6th Annual Personaliza4on Consumer Survey
3. Google, August 2012 “The New Mul4-‐Screen World”
67% Consumers start a shopping on one device and con4nue
on another3
83% Consumers see value in being recognized across devices for
personalized content and experiences2
Mobile Has Become the Dominant Form Factor
17
1. eMarketer, April 2014 2. eMarketer, June 2014 2010 2011 2012 2013 2014
RADIO
ONLINE
MOBILE
TV
4:29
1:01
3:04
1:43
1:17
1:13
4:37
2:40
3:14
1:42
13:26
11:34
14:29 14:08
2:49
1:33
1:04
1:39
1:09
4:39
4:04
4:44
3:33
3:03
14:40
4:39
4:57
2:39
1:27
0:58
More Time Spent Consuming Content1
Biggest increase from mobile
Mobile Ad Spend Set to Surpass Desktop2
In 2015 Marketers will Overcome the Barriers
18
Many Companies Are Offering Cross-‐Device Marke,ng Solu,ons
In 2015 Marketers will Overcome the Barriers
19
1. Forrester, October 2014, “Road to Cross-‐Channel Maturity”
43%
Few Brands Have Expert Data Skills1
Data Integra4on
35% Data Segmenta4on
33% Data Quality Management 2.5X Annual growth rate in volume of customer
data records onboarded per month
76% are doing some tracking of mobile impressions to offline sales
39% Measurement
43% Data Collec4on / Aggrega4on
Insurer Increases Applica4on Rates by 34%
20
34% Measured
mul4-‐channel impact Increase in
applica4on rates
21
3 ATTRIBUTION
Trend #4: Mul/-‐Touch ARribu/on
Unifica/on of Teams
35% 40% 25%
Prospec,ng ad (ebay.com)
BRAND.COM Visit
Remarke,ng ad (espn.com)
Remarke,ng ad on Facebook (FBX)
CONVERSION
1
2
3
Increased Pathway Visibility
Sample Pathway A Across display-‐only Inventory
Increased Pathway Visibility
Sample Pathway B Across Media Partners
About.com (MediaMath)
BRAND.COM Visit
Youtube.com (Pre-‐roll video)
Yahoo Homepage (Direct Guaranteed Deal)
Google (Paid Search)
CONVERSION
1
2
3
4
25% 15% 35% 25%
Closing the Loop Case Study: GiW Retailer
Goal: Capture new consumers during the off-‐season buying period
Solu,on: Used MediaMath and CLA partner Convertro to ingest custom data for beXer evalua4on of inventory, understand impressions that led to higher value and more revenue, and thus allocate budget accordingly Success: Leveraging advanced aXribu4on data at every bid decision, the client saw a 21% increase in ROAS
Direct Response
Brand Direct
Connec4ng the Dots Between Offline & Online
27
TRANSACTION DATA
ONBOARDING SERVICE MEASUREMENT APPLICATION
EXPOSURE LOGS
TRANSACTION SYSTEMS MEDIAMATH DSP
ANONYMIZED RECORDS
28
4 VIDEO & ADDRESSABLE TV
Consumer Habits Are Changing
29
6 min
55 min
More Time Spent Daily With Digital Video
2010
2014
Most Digital Video is Consumed Via Mobile
Mobile
Desktop
eMarketer, Video Content Roundup, May 2014
Technology Advances Driving Higher Spend
30
• BeXer viewer experience
• BeXer viewability standards
• BeXer measurement
• More inventory
• Ability to target on 1st and 3rd party data
Mobile Desktop
2X
eMarketer, June 2014
Addressable TV Star4ng to Get Trac4on
31
1. Ad Age, February 19, 2014, “The CMO’s Guide to Addressable TV Adver4sing” 2. eMarketer, November 2014 3. Videology, December 2013
Your Ad Here
50M Addressable TV households in the US1
29% US popula4on uses a connected TV2
68% Adver4sers expect to plan video campaigns holis4cally
CPG Brand Generates 26% Lig in Retail Sales
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26% Lig from targe4ng on purchase data
18% Lig from retarge4ng
TV viewers
Thank You!
For more, download the new Guide to Measuring the Impact of Digital Marketing on Offline Sales
http://bit.ly/1BAMRSe Justin Schuster VP of Marketing LiveRamp
Mike Monaco VP, Programmatic Strategy & Optimization, MediaMath