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Programmatic Advertising Solutions for Retailers and Brands
by Veronika Sonsev, CEO of inSparq
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TODAY’S MEDIA LANDSCAPE
• Much of the complexity comes from programmatic ads.
• So what does all this mean?
• And how do you use it?
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AGENDA:
1. What is Programmatic Advertising and how does it work?
2. Programmatic Media Buying Solutions
3. Programmatic Creative Solutions
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WHAT IS PROGRAMMATIC
ADVERTISING?
HOW DOES IT WORK?
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Who in the audience has done programmatic media buying?
Who has done retargeting?
Then, you’ve done programming media buying!
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WHAT IS PROGRAMMATIC ADVERTISING?
Uses technology to buy and sell digital ads:
• Automates the decision-making process of where ads are placed;
• Often uses algorithms and/or real-time bidding (RTB);
• Used for online display, mobile, social and video campaigns.
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WHY DOES PROGRAMMATIC MATTER?
• $15B will be spent on US programmatic ad revenue in 2015.
• Programmatic transactions will be a majority (52%) of non-search digital-ad spend in 2015.
• Retailers make up 25% of programmatic ad spending.
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OLD SCHOOL MEDIA BUYING
ADVERTISER PUBLISHERAGENCY
AD NETWORK
Advertiser Direct
Agency Direct
Ad Network Direct
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PROGRAMMATIC MEDIA BUYING
AGENCY
DSPs
• Rockerbox
• AppNexus
• OpenX
• The Trade Desk
EXCHANGE
• AppNexus
• OpenX
SSP• Rubicon Project
• Pubmatic
• MoPub
DATA SUPPLIERS & AGGREGATORSBlueKai, eXelate, LiveRamp, RetailNext
ADVERTISER
Data Data
PUBLISHER
AD NETWORK
DMP
1ST PARTY DATA
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PROGRAMMATIC
MEDIA BUYING SOLUTIONS
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APPLYING PROGRAMMATIC TO RETAIL
Top Funnel
Mid Funnel
MA
RK
ETIN
G F
UN
NEL
AWARENESS AND INTEREST• Demographic targeting• Interest-based targeting
CONSIDERATION AND INTENT• Behavioral targeting• Custom audiences• Location targeting
EVALUATION AND SALES• Retargeting
Bottom Funnel
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RETARGETING• How Does it Work?:
• Retargets visitors to your site.
• What’s Programmatic?:• Can trigger off site visits, add to cart,
views of specific product.• Creative and media is dynamically
generated.
• ROI: 3-10X (conversion optimization).
• Solution Providers: Criteo, Google, AdRoll, Steelhouse.
Example from: Criteo
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CUSTOM AUDIENCES• How Does it Work?:
• Targeting based on CRM data (e.g., inactive customers).
• Look-a-likes based on CRM data.
• What’s Programmatic?:• Starts with current customer base.• Matches emails to cookies/profiles.• Creates look-a-like models.
• ROI: 1-3X.
• Solution Providers: Facebook, LiveRamp, Viant, Google.
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BEHAVIORAL TARGETING • How Does it Work:
• Finds customers similar to current customers.
• What’s Programmatic:• Creates models of browser behavior
to create behavior profiles (like tracing footsteps to store).
• ROI: 1-3X.
• Solution Providers: Rockerbox, Distillery.Example: Rockerbox
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LOCATION TARGETING• How Does it Work?:
• Designed to drive in-store foot traffic with ads targeted based on locationplus demographics and interests.
• What’s Programmatic?:• Audience profiles built in real-time
using 1st & 3rd party data.• Ad is then targeted based on habitual
behaviors to drive path to purchase. • Creative can include directions.
• Solution Providers: Sonata Mobile, 9th
Decimal.Example: Sonata Mobile
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PROGRAMMATIC
CREATIVE SOLUTIONS
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FEED BASED PRODUCT CREATIVE• How Does it Work?:
• Increases relevancy of creative with products selected in real-time.
• What’s Programmatic?:• Based on product catalogue feeds. • Products selected based on trends
and personalization strategies.• Can be optimized without
trafficking new ads.
• Solution Providers: inSparq, AdRoll, Facebook.Example: inSparq
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DYNAMIC CONTENT TARGETING• How Does it Work?:
• Advertising message targeted based on customer and context.
• What’s Programmatic?:• Elements of creative change based
on location, weather, time of day or customer profile.
• Uses 1st party and third party data to inform creative.
• Solution Providers: Celtra, Adacado, Spongecell.
Example: Celtra
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KEY TAKEAWAYS:
1. Programmatic ads are more than retargeting. You can use programmatic for top and mid-funnel marketing activities.
2. Leverage CRM data as broadly as possible to help target your ad campaigns.
3. Programmatic ad creative can ensure you are using the right message for each potential customer.