Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Sustainable Revenue from Digital Media
@JohnMNBarnes
MD Incisive Media
London | February 25th, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
We’ve heard the allure of digital revenue for more than a decade
Yet many publishers still report that print supersedes digital
And a majority of publishing organizations continue to structure people, processes, and tools to support a print-first environment.
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
But, what has worked in the past doesn’t always work in the future...
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
…and what we think will work in future may have serious flaws…
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
The three horizons of growth
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
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Platform
1990’
Short-term extensions /
products“Deep and narrow” strategy focusing on vertical
communities served with print publications
Brand
2000’
Reach / Platform / Brand
Focus on reach and extensions of print brands into online, and adjacent
markets
Audience / Community
2010’
User engagement/Multi-screen / Synchronous
use“Multi-screen”, web-first strategy focused on engaging communities through multiple
media – web, print, tablet, mobile
Evolution of Incisive Digital strategy over time
1995
1st Banner ad served
2014
2+ Billion ad imps served
Sustainable Digital RevenueLondon | February 25, 2014
CREATE VIABLE OPTIONS BUILD BUSINESS EXTEND AND DEFEND
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Digital revenue exceeded print revenue for the first time in 2012
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
In the multi screen first world, we are not competing for attention between content and adverts anymore…
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
..but between activity and screens, and detailed knowledge of the users!
Source Google 2012
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
The vast majority of our daily media interactions are screen based
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Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
Our online time is spent between four primary media devices
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Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
Context drives device choice
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Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
There is no secret formula for sustainable digital growth but, data
is now the key driver!
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Each device has very different peak usage times throughout a typical day,
highlighting their varying use cases and value propositions
to the digitally-connected consumer.
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
A user day, risk.net
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Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
There are two modes of multi screen use
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Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
Smartphones are the most common starting place for online activities
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Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
Rather than assuming users consume digital on different devices in silos, the multi screen world will:
Be based on a trusted relationship between the publisher and the user, across devices
Users will be tracked across devices to close the loop on attribution
For example a user sees a Ford ad on a tablet, they play around on the Ford site the next day on their smartphone, and book a testdrive from their desktop PC at work later that day
Agencies and advertisers cannot know they are the same person
Publishers can
Using tools like PPID (publisher provided ID) and MD5#
Our goal is multi-device and multi-channel attibution, with a more engaged and loyal customer
What does this mean to us?
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
Making audience the purchase, not the platformDifferent Devices – same audience – different strengths Browsers, Editions & Apps – strategic positioning
Browsers, Editions & Apps – Computing
ComputerDeskType and PointerMulti-taskLean forwardPracticality
TabletTwo handsGesturesLinear taskLean backimmersive
Smart PhoneOne handDigitMulti functionOn demandCompulsive
All have a browser, mail client, apps & digital issues!
Computing Browsers Editions & Issues Apps & Tools
Computer Computing.co.ukWill be fully responsive on unified template by
Q2
Fortnightly zMagMoving to App Studio
HTML 5.0 Browser version in Q2
chrome app
SmartPhone m.Computing.co.ukFully responsive
? Google Currents
Tablet t.Computing.co.ukFully responsive
Quark app studio produced version in Apple and Android
Stores
CTG Resources (available on IoS and Android, available in
Apple, Android, Samsung and Amazon
app stores)
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating20
It is now not about size, but the quality! Large circulations are less valuable than custom
audiences, and command the highest prices
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
This is why we needed Scout
To understand and collect:
Data on the way company’s and individuals were engaging with our content
a platform that combined engagement data with revenue
Made the insight accessible and actionable by our sales and marketing teams
Helped us to track platform use
To allow us to measure engagement data and revenue to increase retention and life time value
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating22
Understanding who users are, what devices they use, when and where in the day, and why
is now at the heart of our revenue strategy
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating23
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
The Most Valuable Audience: Subscribers
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JB
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Prior to 2013 our complex matrix of brands, products and customers prevented delivery on our email vision at speed and at scale.
We now have a single system that automatically creates newsletters that adapt to device:
For 127 newsletter templates
Across 26 products
Built on dynamic news feeds and a library of specific marketing messages
Owning the inbox
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
What’s a MD5 Hash?
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Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
What’s a MD5 Hash?
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=43307bb5a669b247270a4d81cce6f3ff
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Dynamic templates customise the experience
Delivered to specific data sets
Pre-selected XML feeds from the CMS matched to data
Specific marketing feeds and messages
Dynamically inserted ads via DFP or Live Intent
Adapts to screen size
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
And MD5# allows us to create custom segments
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Retention Re-activation Supression
15% OFFJust for you, JB!
We’ve missed you, JB!
Don’t tell JB!
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Daily emails require NO editorial intervention
Emails are compiled and despatched to a specified list automatically
Deployed to all brands within 3 months
More efficient
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
The daily update is now a vital engagement channel for Risk.net subscribers via email
More effective
51% of people read the 6am email on our mobile enabled format (and are all tracked with MD5#).
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Automated corporate emails
Content matched to behaviour
Segmented by status
Owning the relationship with the customer in the inbox and beyond
The future:
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
The Right Impression, Everywhere (MD5# or PPID)
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= [email protected] = 43307bb5a669b247270a4d81cce6f3ff
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
Hashes are Cross Device & Cross Platform
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Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
Engagement data & revenue is combined & accessible
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetrating
Scout delivers on retention and value
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Custom audiences and the private ad exchange…
First stage was upgrading to Doubleclick for Publishers (DFP) premium
Single integrated platform
Extending DFP solution to include Bid Manager, Ad-X, Optimise and Audience
Adding Admeld, Live Intent and OnScroll tech to our solution
Streamlined management across platform and functionalities
This included video, mobile audience and data management
With a focus on monetisation and audience segmentation
Using concept of eCPM to evaluate and tune house campaigns
Key goals were to:
Maximise value of inventory, and Improve trafficking efficiency
Create new advertising opportunities, and Showcase our product offering
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Incisive Ad operations now have clear objectives..
To maximise the opportunities and value for our advertisers, both internal and external, we have:
increased the effectiveness of our direct and house advertising in order to maximise inventory
taken full advantage of our high-worth audience on private exchanges and premium
Monetised first and third party data on our own and other networks, including audience extensions and our email inventory
And truly understood the value of our data by operating as buyers and sellers in the programmatic environment
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Markets – prior to the private exchange we sold markets as verticals
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Post private exchange we sell audience across verticals e.g. Lawyers
Using retargeting within our own network
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Most inventory is traded on data!
3rd Party Behavioral 3rd Party assumed intent 1st Party demographic
B2B data has always been more sophisticated than B2C, it is based on actual demographics per user (1st Party)
Because of the historic lack of B2C data, agencies and advertisers think that the current levels of data are sophisticated
We think they are basic, because they are based on assumed intent and historical behaviour, NOT on the user demographics with intent and behaviour overlaid
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Intent and behaviour data, the flaw!
Johnny Tim George
All three like Sport (particularly Cycling, Cricket and Rugby)
Enjoy air travel, staying in hotels and eating out
Love technology and automobiles, especially supercars such as Ferrari’s
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
B2B value is in the articulation of our first party data
But it is hard to detail our audiences using behavioural terminology.
Third party data is “intent” driven and generic and not of specific relevance to our (b2b) advertising clients
but it can be overlayed with existing audience segments to add a degree of targeting
e.g.Computing registered users + visitors to Autotrader + those who have viewed car ads = qualified high net worth carbuyers
Incisive 1st Party demographics
3rd Party Behavioral 3rd Party assumed intent
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Intent and behaviour data – the solution!
Johnny Tim George
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Intent and behaviour data – the solution!
Johnny Tim GeorgeJohnny
Intender
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Intent and behaviour data – the solution!
Johnny Tim GeorgeGeorge
Behavioural Intender
Johnny
Intender
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Intent and behaviour data – the solution!
Johnny
Intender
Tim
Qualified Buyer
George
Behavioural Intender
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Examples of Data overlays
3rd Party Behavioral
3rd Party assumed intent
Incisive 1st Party demographics
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Collecting first party data to enrich the exchange with quick questions
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Re-targeting: Agencies and networks don’t have audiences!
All they can do is target and buy on behaviour and intent
They cannot retarget as they do not have a first party, unique, loyal audience, therefore lacking quality
As a result they want volume to minimise risk, and maximise discount, because there is innate waste in this approach
Publishers can counter this by overlaying 1st party demographic data, with behaviour and intent
This massively improves targeting, reduces volume and increases value
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Publishers do - Example Campaign – Risk.net
On Risk.net
Retargeted
On Risk.net
75,000 impressions ROS geo targeting US only = $140CPM = $10,500
Retargeted (or Audience extension)
120,000 impressions via Google ad networks targeting individuals that Incisive Media has dropped a cookie on when they have visited Risk.net and seen the CME ad = $80CPM = $9,600
Total rate = $20,100, Total impressions = 195,000
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
The opportunities for publishers are :
Building value through exclusivity and clarity on audiences for the trading desks
Access to budgets dedicated to automated trading and a new range of clients
Increases the value of first party data and increase the efficiency of all digital advertising
Act as a buyer of our own inventory to value and tune house campaigns
With a 400% increase (a 7 figure sum) in traded revenue in 2013
Incisive private exchange – creating value through exclusivity
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Typical “Incisive” page length over 5500 pixels deep
Typical “whitespace” between end of column and footer of page over 1,500 pixels – often over 3,000 pixels
Average last position of ad within left hand column 2,275 pixels
Turning “Whitespace” into AdSpace Most pages are under-monetised
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Additional Ads Delivered entirely on user “scroll”
Typically over 50% of additional ads served for over 20 second (well over the 50%, 1 second viewability metric)
Generate around 12% additional inventory on sites employed.
Click performance over 500% higher than standard below the fold placements.
Demo Page: http://www.v3.co.uk/blog/it-sneak-blog
All ads can be premium with viewability
Sustainable Digital RevenueLondon | February 25, 2014
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
So what have we learned?
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
The data of who, what, when, and why is what will be used to create
custom audience
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
57
It is now not about size, but the quality! Large circulations are less valuable than custom
audiences, and command the highest prices
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
Operating as a buyer of our own audience is giving us real insight into
the quality, uniqueness and value of our data!
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
The desktop is the distraction!Not mobile
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
…oh , and that CPM is a fatally flawed metric, ‘a Crap Publishing Metric’, that rewards scale, devalues quality and does not reward specialists who spend time, money and expertise building high value audiences
Incisive (in-sy-siv) adj. mentally sharp; acute; clear and effective; cutting; penetratingDigital Publisher of the year 2010 & 2013
THANK YOU [email protected]
Twitter.com/johnmnbarnes
Linkedin.com/in/johnmnbarnes