Wednesday, November 16, 2011

Data Driven Display buying - part 2

Data based knowledge explained

The lowest hanging fruit for using data to accurately target audiences is in the remarketing area.   Tagging the clients site (and any other client owned digital content) with a DSP cookie, enables use of the data to re-message at an individual impression level.  This client data is also referred to as ‘first party data’.

A second step to tagging is to use the tags to understand a single customer journey, and then re-segment audiences to further improve targeted messaging.   Using client site data we can for instance establish segments such as existing customers (tags on ecommerce thank you pages), in market but not converted (site visitor no sale), engaged customers (converted customer who is also a facebook fan) etc.  Tags marry back to a unique IP address.

In the area of behavioural targeting, it is also possible to build audience segments through aggregated content based behaviour.    For example, targeting a car insurance message to those who have visited auto sites/content across long tail sites. 

The final area of targeting opportunity exists through buying 3rd party data.  This is yet to take off in the Australian market place and globally has been a slow mover.   It requires buying aggregated cookie pools through companies such as blukai, quantcast or exelate.  This is a lot for Publishers to get their heads around as it enables us to use their onsite audience interactions to target these same eyeballs elsewhere online for a fraction of the cost (of course they are paid for the privilege). Initial forecasts were that 3rd party data would be an important component for buying via DSPs, however, 1st party data has turned out to be of much greater focus thus far.

Other advantages of data driven display:

  1. The traditional performance market place (buying based on cost per acquisition / CPA), accesses purely blind inventory.   This creates a couple of issues for us as buyers.  The first being that we have no granularity regarding what is actually working site wise.  The second is concerns regarding safety of sites within the blind Network.  Both are overcome through the DSP model, as sites and performance are transparent.
  2. Buying remarketing through Publishers and AdNetworks carries a premium.  Because they control the data, Publishers are able to use client’s tags to gain increased effectiveness and currently charge for the privilege.   With agency powered DSPs, the client ultimately owns and controls their own data, so there is no premium for remarketing.

Audience on Demand

From a Global perspective, Starcoms parent business Vivaki launched Audience on Demand as a branded approach, rather than simply promoting a technology. This provides us the flexibility and fluidity to evolve and align with market leading technology, whilst maintaining a consistent market voice. 

In the expanding DSP landscape, there will be multiple technologies competing for agency business (similar to in the search space).   Right now, Brandscreen is the only active local DSP and powers AOD.   We can expect to see Googles competitor technology – Invite, launch in 2012.

Through the scale of Vivakis publisher relationships, AOD also provides access to market advantage in the form of additional inventory, not available to the broader market.   Right now ebay and Sensis media (locally) are available and we expect the list of publisher inclusions to grow as Vivaki negotiations progress.

Our Audience on Demand (AOD) commitment to our clients is to leverage the best technology available in market to provide:

  • A trust worthy demand side buying platform with full client data protection
  • Access to best in class expertise and support for activation
  • Proprietary analytics and transparency on all media and data relationships
  • Highly customisable targeting capabilities
  • Expansive reach and scale
  • Cost effectiveness
Latest AOD News

AOD is now fully operational and generating significant savings for those clients involved.  As access to client data increases, we can only expect this to continue.

There are now two AOD products in market, to allow for the different trading models available via open AdExchanges and private exchanges (eg ebay and Sensis).   These are AOD Reach (open market) and AOD premium (private market).

Within AOD premium, typically whilst we have inventory access, Publishers continue to set ‘floor’ prices (CPMs).  In this way they are somewhat protected yield wise, yet still appear in the open auction environment.  This means when these impressions arise in AOD, they will only be bid on where there’s forecasted ROI in the relevance/price equation, considering the floor CPM.

Last week, 9MSN/Microsoft announced the launch of their AdExchange on the open market.  This inventory has started appearing in AOD Reach, however, it must be noted that there is limited transparency at present.  Inventory has been grouped into two buckets, with no site level data available.  MSN are expecting up to 15% of all display trading to move through their AdExchange in the first 12 months in market (based on global learning’s).

Getting Started

We recommend all client websites are fully AOD tagged so that data collection is turned on well prior to launch.

Please talk your Starcom client business team or digital planner for more information on briefing and implementation.

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