Drive More Brand Spend Into Digital

Editor's Notes

1. Good morning,   I hope you are feeling refreshed after your coffee break!   My name is Henry Howe, from the Consumer Intelligence division of Kantar Media , and I will be talking about how we are driving more brand spend into digital, focusing on the growth of programmatic as an industry through automation, and how we can respond to these changes in the market with solutions.
2. OK, so best to start with a quick introduction to TGI We are part of Kantar Media with 6,000 people in over 70 countries Whereas most advertising technologies were founded in recent years, we are a bit different, 1969 was famous for a number of reasons, apart from man reaching the moon, TGI was founded! Since then TGI has produced the highest quality data including Consumer, brand & media consumption, lifestyle attitudes – the WHO WHY & HOW With Over 1,000 clients across the globe
3. Advertising 1.0 (yesterday) As we were founded in 60s, I thought we could look at how brands previously reached their audience So il start by setting the scene in how brand advertising has changed over the years And why technology automation so important – because advertising as we knew it used to be so much more manageable. To allow us to look forward we need to look back at how brand used to reach their intended audiences. Your predecessors could reach an entire family at 8.30pm four times an hour. You would have one tv ad spot, viewed by a family/group. That would have been bought/sold manually through many discussions, negotiations and conversations over days or weeks. A straightforward process.
4. The previous slide is in stark comparison to where we are now –which is the fight for audience attention – an advertising 2.0 in description. The intense fragmentation of devices, audiences and formats is phenomenal. And it’s exponentially becoming bigger every day… And this alteration in consumer behavior presents new challenges and opportunity for advertising today. That same family of 5 is now being bombarded with ads from the moment the family members awake till they go to sleep. And for brand & performance marketers, even though the consumer is more accessible than ever before, you now must target them on multiple devices, in different environments with different formats… The industry is at a breaking point, and we need to evolve. What’s more – attention has become divided/fragmented. It used to be one screen: the tv. Now a myriad devices creates a multiple of different digital environments with which to consume content. On the computer, TV, magazines, mobile devices in different locations—even on planes, content is now so readily available. Thus, engagement has become fragmented. And the challenge is felt by you – the advertiser as you seek to tell COMPELLING STORIES across multiple devices. The only way to effectively reach that family of five today is through the use of powerful automation technology, coupled with a deep and robust dataset to inform decision about how to formulate a media plan.
5. There is a lot of chatter these days about the trends and hyper-growth in programmatic, now that automation can govern and bring benefits to all digital—and soon other types—of media. Now that all kinds of upfront and reserved buying can be enabled with automated guaranteed and all types of creative executions, can be bought and sold through automation, there are no barriers to what savvy buyers and sellers can accomplish through automation. Given this opportunity, here are some of the key questions marketers are thinking about as they revisit their overall buying strategies: ·        Efficiency. Are you being efficient in terms of using automation vs. manual processes to identify and buy your audiences? ·        Effectiveness. Do you understand what kinds of new intelligence can be applied to media buying? Are you set up to take advantage of them? ·        Working Media. Do you know how much of each investment dollar makes it to working media? Why not? Overall, brands are really in the driver’s seat in today’s automated world, so the opportunity is to lean in, and learn how automation & data can bring brand spend into the digital arena, delivering key business benefits.
6. This evolution is highlighted by the following brands, and when the figures are released at the end of the year it will be fascinating to see if they achieved their goals. Taking American Express , aiming to become 100% programmatic, & Proctor & Gamble, at 70% plus of media – both brand and direct response through online channels. These are both fairly ambitious statements. AMEX spent $128.5 million on online display ads in 2013, making it the ninth-largest online display advertiser in the U.S. - AdAge, May 6, 2014
7. Programmatic technology has created a way for brands to establish deeper connections with their audiences by helping them get the right ad to the right consumer on any screen and in any channel There are many different types of programmatic buys – not all suitable for brands, who have different requirements to performance advertisers, mainly around cost, and this chart highlights the different types available. Ranging from non guaranteed, unreserved at a set rate or our area of focus – that of automated guaranteed. The most attractive type of programmatic buy for brands is that of the automated or programmatic direct market – this is a way to describe how traditional media buys can be transacted through new workflow tools, bringing agencies and publishers closer together. It sets out a guaranteed amount of impressions on a specific publisher – but removing the inefficient manual back and forth , paper based IO process that takes much resource which is how the majority of campaigns are operationalised today. One thing it does do is provide more control for both the buyer and the seller in terms of where a campaign will ultimately be delivered.
8. To put this into context, there are many different types of creatives and formats, and I think its important in all this hype around programmatic that the creative message is not lost. Brand advertising serves its purpose by establishing itself at the top of the marketing funnel There are many types of formats – ranging from the standard banners to home page takeovers – the use of automation and technology advancements mean that non standard ad units, have become the standard, meaning that advertisers can have more choice over how they choose to message their customers. This makes it easier for both advertisers and publishers to negotiate on how best to display brand specific , high impact units on premium properties.
9. Next is to quantify this growth in programmatic on the following chart, showing we have effectively reached a saturation point in performance advertising , and we are looking for the next area of growth. The future of programmatic clearly points in one direction and that is dramatic growth every year until at least the end of the decade. Real Time bidding , which has been the staple diet of programmatic marketers, is the method used to identify, and deliver a specific ad to a specific user or site in real time, It Really has dominated the programmatic advertising boom of the past five years. However, as programmatic direct is projected to be the driving force behind its future growth, there will be new opportunities for those involved in buying and selling advertising programmatically. With programmatic buying, brands have access to vast amounts of inventory, data, and targeting. In fact, eMarketer predicts that 83% of all display buys will be programmatic by 2017  These are the key opportunities for programmatic direct and what we must do in order to fully realise them:
10. One of the key promises of programmatic direct is that because the deal is negotiated directly between buyer and seller, far greater brand safety can be achieved. If advertisers and agencies are confident that their ads are always appearing in a supportive and relevant environment - not always the case with RTB-driven campaigns - then they are likely to invest more into programmatic, which is both good for them and good for publishers. There are three key areas, that have Plagued RTB buyers with significant issues for years, and something that has held back brand spend, these are : Fraud |Brand safety | Viewability   Programmatic direct will also force greater accountability on the various players in the media value chain, which will help to address ongoing issues – publishers are becoming more comfortable in placing their higher value inventory, usually reserved for direct sales, into programmatic channels, reducing overheads and driving efficiencies and yields, providing a more secure branding environment.
11. One of the great advantages of programmatic direct is that it will simplify the media value chain and get rid of much of the ad tech that currently fills it. Looking across the spectrum of platforms, from demand side, , supply side platforms, This in turn means that more ad spend will filter to the correct players. At present, the programmatic campaign model most commonly used leaves publishers and brands feeling out of pocket. Publishers often see as little as 30-40% of the overall ad spend, with the remaining 70% swallowed up along the way.   Publishers getting their fair share of brand spend under programmatic direct will mean they can invest more in compelling and creative content, which in turn will drive greater brand spend. The old adage of content being king has never been more true.
12. Programmatic direct will be far more efficient if all the players in the media value chain work off the same data source. That way the value of a given campaign is transparent to both buyer and seller. This will make trading far more efficient than everybody working off their own datasets, which are impossible for others to view and thus makes the whole process inefficient and everyone wondering how good a deal they are getting. Currently there are too many languages and differing standards of data quality in the market as people look to capitalise on this area of growth. Researchers, planners & buyers use high quality data and standards to describe brands and their audiences. As soon as it is in the value chain it gets watered down – like forcing a square peg into a round hole. With a Lack of transparency in many data sources as to how the segmentation is created and delivered, often using questionable methodologies & those are only available to small parts of the value chain Consistency in data, and keeping everything in a language that’s not overcomplicated or filled with jargon will be key to again providing brands the confidence to spend more online.
13. To make programmatic direct work for all in the industry, we need a single consumer data currency that everyone can access. In the same way that money works as a day-to-day means of transactions because people trust in its value, in order to be trusted this currency must fulfil a number of criteria. By understand how a currency can be applied to both buyer and seller elements across a value chain, then this provides an accurate worth, and creates an effective point of negotiation for buyers and sellers, to ensure that branding goals are met and adhered to. Many data sets and executions dilute the intended use cases or confidence level of an audience in order to meet the broad needs of the media value chain. The ability to buy on known and understood metric as well as trade on the same terms is key to growth for a market.
14. For branding campaigns to be effective, then a consistent data set has to be independent and available to all players in the media value chain, with a clear provenance, robust methodology and Three things that it must be Transparent – understand the source & who guarantees its value – how is procured and what is the methodology and size behind it Granular – allow for detailed description of brands & their clients and audiences , access to competitor set data Available to all – sell and buy side need to have access to it so they can evaluate and price correctly creating as I described before, an effective foundation for negotiation Whilst the outlook for programmatic remains bright, if we are going to really maximise its potential, leveraging a single data currency will be key in providing the confidence for advertisers to part with their brand budgets into trusted online environments.
15. In order to provide access to this market – we are currently in the process of creating an online planning tool – creating a partnership with companies such as the Rubicon project to allow online site level media plans, based on the TGI data to be transacted upon. Quality , trusted and relevant data, accessible and sharable across all the media value chain Publisher : to monetise their inventory in a more efficient way Agencies : better description and understanding of audience/targets Partnerships with Ad tech to plan and active media buying Bespoken audience, shared with perfect information
16. Good afternoon, I’m Henry Howe, Head of Programmatic for the Consumer Intelligence arm of Kantar Media. Talking today about: Programmatic growth Key drivers Issues to overcome Solution