transforming modern marketing with people data
DESCRIPTION
"The future of advertising is not about social, not about viral videos, not about mobile, not about any new medium or any new ad unit – but about data. Those who know what to do with this will be the new kingmakers, the new rulers of Madison Avenue – or the creators of a new avenue of media" - Michael Andrews of AKQA Transforming Modern Marketing with Data was presented by Tom Chavez, CEO, Krux and Yasuko Nagamatsu, Global Business Strategy, Cyber Communications Inc. (CCI, subsidiary of Dentsu) at #adtechasean.TRANSCRIPT
Transforming Modern Marketing With People Data
Tom Chavez, CEO & Co-founder, Krux Yasuko Nagamatsu, Project Manager Expert
“I want it PERFECT!” “I want it
NOW!”
“I want it
PERSONAL!”
Enterprises want to communicate with
customers who operate in a ‘new normal.’
Our digital lifestyle generates a torrent of data.
Mobile
App
Location
Content
(Owned)
App
Web
Social (Earned)
Offline
Sales
Registration
ERP CRM
TV
Coupons
Online
Influencer identification &
engagement
Media (Paid)
Set Top Box
Browser
Search
Blogs
In-Store
Marketing in the new world order…
… is about capturing and harnessing people data to power
smarter, more personal experiences
People data powers effective marketing.
“The future of advertising is not about social, not about viral videos,
not about mobile,
not about any new medium or any new ad unit –
but about data.
Those who know what to do with this will be the new kingmakers, the
new rulers of Madison Avenue – or the creators of a new
avenue of media”
- Michael Andrews of AKQA
Successive cycles of disintermediation fueled by other people’s data
Emergence of
Ad Networks
• Pixels enable
rudimentary audience
tracking and
measurement
• Cookie pools enable
first-level audience
segmentation
• Publishers
disintermediated
Traditional
• Content =
Proxy for
Audiences
• Driven by
models, indexes,
inferences, and
approximations
Emergence of DSP’s
• Real-Time Bidding gives
rise to programmatic
buying and selling
• 3rd party data takes
root
• Retargeting driven by
publisher data
• Ad networks
disintermediated
How did we get here?
Digital Marketing is now Data-Driven
Traditional
Ad
Networks
DSP
Data Era
• First-party data captured at huge volume and
velocity
• Second-party data emerges
• Online, offline, CRM data is unified into a single
view of customer
Security and governance rise in importance
• Piping and connectivity becomes table stakes
• DSP’s are disintermediated (or become DMP’s)
We are in the beginnings of the “Data Era”
First-Party Data
• Site-site data including
behavior, history,
frequency and more.
• CRM data, such as user
registrations, loyalty,
purchase data.
• Ad serving data including
clicks, view, interactions.
Full ownership
Highest value
Second-Party Data
• 1st party data from a
source such as a media
or business partner.
• Shared in a secure
policy-managed fashion
between parties.
Shared ownership
Extends the power of
first-party data
Third-Party Data
• Audience segments
acquired through a
data provider
No ownership
Least value
8
A Taxonomy for Data
DMP: Marketing Control Center
Data Management
• CRM Data
Marketers
• Purchase Data
• Loyalty Data
• Campaign Data
• Site Data
Publishers
• Subscription
Data
• Registration
Data
• Site Data
Higher CPM’s
Improved sell-through
Stickier Ad Products
Personalized engagement
Actionable customer insights
Higher ROI on marketing
Advertiser & publisher merged data via Krux platform to create 10M+ segment
Use case 1: CPG Manufacturer & Publisher unlock new value via 2nd-party data sharing and
data management
Krux
• Large CPG
• Multiple food brands
Large CPG
Manufacturer
• Robust food
buyer, loyalist
and media data
Premium
Publisher
• Multiple female
sites & large
recipe site
• Very rich 1st-party
data set of food
enthusiasts
Publisher Benefits
• 8 figure media deal
• Sticky relationship with global
advertiser
• Relevant high-quality ads
Marketer Benefits:
• Precision targeting at scale to measurably improve sales
• Insights about what customers want and how they engage
• Increase frequency by programmatic audience extension
17:33:33
Use Case 2: Cyber Communications, a technology-driven digital
communications company
11
A
d
v
e
r
t
i
s
e
r
Over 500
Ad Agency
Over 500
Publishers
media buying
product & biz dev.
tech solutions
consultation
media planning
tech solutions
trafficking
analytic
and others… and others…
Enrich Service
Towards
Demand-side
Strengthen Growth
& Quality
Enhance Service
for Supply Side
Strengthen Demand
Side Service
12
Use Case 2: Our Core Vision: CCI as Media Growth Partner
Content/Creative
Customization
CRM Offers
PC/Browser
Mobile
Social
Analytic
Ad Network
Programmatic
CRM loyalty card
Panel User
Premium Publishers
+ local DSPs
13
Use Case 2: Krux-CCI Partnership
100MM+UB
1,000+ Categories
30 Data Providers
Aggregate audience data from data providers.
Sell our segmented data to data buyers via PrediX
Benefits for Publishers • Create new revenue
• Monetize inventory
• Expand reach
• Increase unique
users
Benefits for agencies
& advertisers • Establish premium
environment
• Expand audience
• Unified audience view
14
Publisher
Advertiser
Ad Tech Agency
Use Case 2: Our Data Business
17:33:33
Use Case 3: Use people data to eliminate
marketing waste
Use Case 3: Eliminating marketing waste
Major brand marketer runs
100’s of campaigns. Campaigns
run across more than 20>
media and programmatic
channels every month
Audiences were being targeted
with severe audience
duplication across channels
Sought to create a global
control mechanism that
allocated impressions and
spend to optimize overall
frequency-per-user
0
2
4
6
8
10
12
14
1 2 3 4 5 6 7 8 9 10 11 12
Too little
Sweet spot Too much
Marketers’ desired frequency vs. spend allocation
17:33:33
Use Case 3: Eliminating marketing waste
With Krux, generated holistic
and granular media reporting at
the user level, campaign level
and publisher level to measure
frequency & audience overlap.
Globally managed frequency using Krux as the control center and
Reduced Media Waste: Identified media execution partners with problems to enforce T&C’s.
Improved ROI: By optimizing under-performing partners & audiences.
Reduced Cost: By eliminating over-saturation on a per-user basis
Discovered frequency distribution problem
Reduced waste by 10X. Under 3% overage
The future is here, it just isn’t evenly
distributed yet
Source: Neustar
17:33:33
Krux is helping leading brands around the world unlock value from people data