DW 2015: Kristin Brimi
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Transcript of DW 2015: Kristin Brimi
THE GAME CHANGER
Shifting from manual to programmatic means were getting more technology-driven than ever before. But who determine the outcome - is you and I we and our ability to connect.
According to eMarketer, 25 % of digital ad spending will be programmatic this year, and the share is expected to grow to 37 % within 2016. If we do the math with, with some ifs and buts, it means that more than 1 billion digital ad spending kroners will take part in this new transmission over the next 12-15 months. Those are huge numbers. And huge numbers usually have huge impact.
Programmatic buying is a game changer.
My name is Kristin Brimi and I am Director of digital buying at MediaCom. I am honored and humble to be invited to speak here today, together with market leaders and digital innovators.
Cause who would have thought..
When I was a child I dreamt about changing the world. I wondered how, so when I grew older I studied to become a teacher. I didnt go as planned but today I work at a media agency where were literally shaping the digital future every day. Because when we combine data and technology, content and consumer with real time buying and real time connections - we create this new era together.
The biggest marked changein 20 years
Programmatic buying is by far the biggest change in the media industry since commercial television was a reality in the 90s.
And like I assume that no one in this room miss going to the physical bank to withdraw or deposit money, pay bills or check the account balance. I assume that no one will miss the way we have been buying and selling digital media over the last 20 years. This is like the transition from local bank branch - to online banking. And I believe this is just the beginning automation will change the way we buy all types of media in the future.
From media centric
to audience centric
There are many reasons to celebrate programmatic.
Online consumption increase rapidly, and it is getting harder for brands be heard, seen and noticed.
So we need smarter ways to connect with our audiences, and to get our message across.
Our audiences, as we are used to think of them, are no longer relevant. Women age 20-40 is not a homogeneous group with common needs and interests. The target groups were now chasing are smaller and more differentiated. So where we previously had a media centric focus, we are now focusing on the individual user. By not treating people equally - but personally, we increase the chance of capturing their attention.
With programmatic, marketers can reach and engage interested audiences in a real time environment.
Programmatic is buying impressions in real time automated by technology fueled with data
Programmatic is not a new channel it simply a method of selling and buying digital inventory. And from an agency point of view: Programmatic - is buying impressions in real time automated by technology fueled with quality data.
Previously, digital ads were sold on medias terms and conditions, and was handled manually in an extremely time consuming and inefficient way.
With programmatic the media buyer is now responsible for both planning, booking - and delivery. Medias responsibility - is now placed into our hands.
The transaction goes through a PBU (Programmatic Buying Unit). This buying unit is a DSP which enables us to connect to and shop directly from - the medias available inventory.
We can choose different buying strategies:
1. You can buy from ad exchanges. This is usually cheaper inventory, but also has a reputation of delivering lower quality impressions. And not knowing where you ad will appear, naturally rises issues about brand safety.
2. So we can choose to buy on private deals: This is premium inventory on premium sites, with pre-negotiated floor prices - and usually an additional bidding strategy on top.
3. Or we can negotiate preferred deals which is a closed agreement between the media and the advertiser, that gives the advertiser a guarantee and a preemptive right to buy the inventory, at a higher CPM.
You choose youre buying strategy based on your campaign objective, available inventory, and the optimal use of use of data.
So.. Is this risky business?
When were talking about programmatic, several questions are raised. What about Ad Fraud or Ad Blocking?
15 20 % of the Norwegian online population use Ad Blocking technology on desktops. 53 % of the users under 25 years old have downloaded Ad Block to their iPhone but only 3 % uses the technology. So I understand the concern, but instead of forcing ads to a target group that clearly dont want to interact with our ads we need to think of other ways to connect with them. So this is not purely a programmatic issue but an digital issue as a whole >>>
Ad Fraud is ads displayed to robots, and where the medias recognize them as normal consumers. This means that we are paying for impressions that have not been delivered to humans.
Ad Fraud is a bigger problem on ad exchanges that deliver non disclosed inventory and on international sites, so our recommendation is to always whitelist your placements in open ad exchanges >>>
And of course viewabillity: A large proportion of your ads are never seen, but you still pay for them. At least 70 % of your banner ads should be visible to the consumer (thats the IAB standard). For traditional digital campaigns we can negotiate compensation if the medias have delivered low inscreen. But for programmatic, we use it as an optimization parameter. For some DSPs, we can also set a minimum limit on vewabillity to ensure that we only call out for impressions that are likely to be seen.
Programmatic enables us to buy impressions more effectively through
Real time optimization
Story telling has never been more cost efficient
When running traditional campaigns we contribute to keep the volume of digital noise, at an extreme level. We can only set frequency capping per media, so it goes without saying that we were risking being more annoying than inspiring.
One of the true benefits and great advantages with programmatic. is that we can stop causing this - and get on with the storytelling without driving our audience crazy. >>>
With programmatic we dont need to repeat our message 5 times per media but we can limit it to 5 times per user. Or whatever frequency that is right for your campaign objectives. So obviously, we automatically reduce numbers of wasted impressions considerably - and increase the value of your media investments.
We dont have to speak to everyone any more. Coverage and frequency are industry terms the we need to evaluate all over again; because there is no doubt that we have wasted a lot of them, in the past. Now, we are shifting from quantity - to quality. That does not mean that coverage, frequency aren't important or valuable measuring units but effective coverage, and effective frequency, is by far a stronger currency.
Planning for outcome not input
We plan more for the outcome - and less for the input. And we move ad budgets to where we expect to get the highest return on investments.
We spend less time on planning and administration, to make a campaign fly and more time to make it fly high.
In traditional digital marketing, we have delivered static campaigns for years. Our budget have been locked, creatives have been locked, placements have been locked. You plan a campaign, set it live and there is just so much you can do about it. Which means if your campaign fails, you will not find out before its too late.
Those days will soon be history >>
Optimizing in real time
Because when were not committing budgets or restricting campaigns to single medias and agreements, we can influence campaign delivery from beginning to end. Were now optimizing campaigns in real time, based om real time data.
We can end, pause, gear up, narrow down or expand the campaign from our dashboards.
We simply stop what doesnt work and do more of the stuff that pays off.
We chase results in a completely different way than in the old days >>
Were constantly facing new opportunities. But along the way were also challenged by unexpected barriers.
Barriers that comes with technology - data policies - and even something as elementary as hiring skilled staff.
Success in programmatic demands the right expertise.
IAB revealed in a report earlier this year, that agencies sees hiring and training people with the right skills set as one of the biggest barrier to programmatic adoption. So when embracing all this new technology - lets not forget - were still in the peoples business.
And obviously in the money business. A shift of 1 billion digital media kroners to programmatic - will resonate.
Less money tied up in annually negotiated deals, might increase marked insecurity.
How will the marked respond and how will it affect the pricing level? We are facing several areas of uncertainties.
To be a part of this media evolution, some companies invest a lot of money in technology and that, in it self, can be a barrier.
Once you have chosen your technical platform you are dependent to it. Each platform is its own digital databased universe. And these do not overlap.
Which means, we can only capp frequency within one DSP. So, for example, when Google recently announced that they will seal all their YouTube inventory to their own platform Double Click we are either forced to change platform (which obviously is a bit more complicated than plug and play) or we have to buy programmatically through several DSPs.
It is still be more cost efficient than frequency capping on single medias but yet not 100 % perfect.
And it will only be, the day we can declare to be platform independent. More technology to come.
The data evolution has been crazy. From managing data in excel sheets, to monitoring them online and in real time through dashboards - to actually use data to buy refined and targeted audiences, makes me realize weve come a long way - in no time.
Data is like drugs once youve started you cant do without it >>
Outsmart, not outspend
Data is technology fuel. Like we fuel our car to drive more efficiently - were using the data to outsmart not outspend.
So well have to talk about money.
How do we set our budgets when we no longer predict campaigns outcome based on medias delivery capacity but on consumers behavior. We dont know how many that are in our target group next week, or how many that are interested in buying our products tomorrow. Planning for the unknown in challenging.
We dont lock our budgets to specific medias, but we place the media investments where we receive optimal results
We plan for shorter periods, then we evaluate and do more of what works.
We plan for the short term
Therefor we plan for shorter terms - and we rarely tie up the budgets for longer periods. Because you want to be able to moved them around quickly. Changing the way you plan for you budgets takes a bit of practice. But when you think about it this is how we have estimated paid search for the last 10 years.
There are no fixed prices in consumer responsive medias; we dont know how many that will search for our keywords and we dont know what the competition will be and know if your audience is ready to interact with your message. Unless we have sufficient data.
TIME TO MARKET
Time is another currency.
Time to market is something everyone can relate to, as value of time, has increased. Cause when everything is automated every transaction happens faster and more often. And that represent a potentially big risk. Because if youre focusing on the wrong goals you might end up doing the same mistakes as yesterday - just a lot quicker and with massive consequences.
The medium, or media, has become
"more important" than the message,
ushering in a new era in which
creative and media can unite
WPP CEO, Sir Martin Sorrell
The medium, or media, has become
"more important" than the message,
ushering in a new era in which
creative and media can unite
WPP CEO, Sir Martin Sorrell
You might know who this is this is Sir Martin Sorrell, founder of WPP, which is the largest media company in the world.
On a conference a few months ago, he expressed, that the digital complexity brings content and media closer together than ever before >>
Today, when we buy single impressions - with custom made content and messaging - based on real time consumer data; this quote has never been more spot on.
Bringing it all together
Getting your message across fast - has become THE success factor for sophisticated marketing in 2015.
When content and distribution are brought so close together, we naturally experience that industries merge.
Who does what and where lies the natural responsibility for content production and distribution? We have a history of solid partnerships with the creative agencies, and well continue to nurture these in the years to come. However, the creative process of the past, isnt sufficient to keep up with the needs of programmatic. It goes without saying that as a media agency, we can no longer wait a week or two to receive static banner creatives, with limited messages and formats.
Where we previous had one ad, we now have to have maybe 50 or even hundreds, of ads.
And to be able to act upon fresh, real time data - we need to be able to create ads on the fly.
DCO (Dynamic Creative Optimization) is a new technique towards the future audience-driven creative processes.
The creative agencies will still own the idea and concept. But the media agency need to customize content, based on consumer behavior in real time - to act upon the freshness of data. With DCO the creative agency produce the elements that build up the ad, but the media agency can alter and change the composition, based on consumer interest.
So the whole whos doing what is changing.
I encourage companies to do a little more
thats outside their comfort zone. Almost
every time we do something crazy,
we make progress.
- Larry Page, CEO Google
And changing hurts. But if youre not willing to change you cannot work with digital media >>
And as Larry Page once said:
I encourage companies to do a little more thats outside their comfort zone.
Almost every time we do something crazy, we make progress.
Google certainly has.
The marked and technology is developing rapidly. Its a whole new ball game.
And technology is a door opener. It works, its magic, we love it!
Its so easy to be dazzled by new technology - but - programmatic will always remain true craftsmanship that needs hands, heads, and hearts. No matter how much we embrace data and pixels, algorithms and bidding strategies dont forget what were really came for and are working for communication with real people.
Kristin Brimi Digital Buying Director MediaCom [email protected] 90180416
So - what will the perfect media agency look like in the future?
I wish I knew. On the other side theres no such thing as perfect. Because perfect is constant and digital is not.
But I believe that agencies that will succeed, are those who truly manage to tie content and distribution neatly together. Those who invest in technology, in data, those who have a holistic approach to driving results - and those who acknowledge the importance of investing in manpower with the sharpest brains and true passion for marketing