Programmatic advertising
Programmatic media buying and its subset real-time bidding (RTB) has gone a long way to solving the problems that display has faced. Programmatic allows buyers to assess every single ad impression as it becomes available
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(as a user’s device is loading a web page or app) and make a decision as to whether this particular ad impression will make a positive contribution to the campaign as a whole. This can be decided based on factors that pertain to the environment that the ad is in. The advertiser can therefore assess the following factors to determine whether the opportunity is relevant:
● the website;
● the specific web page;
● the context of the article or video it surrounds;
● the location of the person looking at it;
● the time of the day, or day of the week;
● the computer operating system, mobile operating or type of device it is being viewed on;
● the propensity for that advert to be classed as ‘in view’ based on previous viewability rate of that ad’s placement;
● the type of content the ad is next to (is it dangerous, defamatory or potentially scandalous for the advertiser to place an ad here?).
Or the known attributes of the user who is behind the screen:
● Are they known to the advertiser?
● If CRM information has been synchronized with the buying platform (known as a demand-side platform, or DSP) whether they are a frequent customer, a high-value customer, a low-value customer or someone to whom it is not worth showing adverts.
● Whether they have started to make a purchase on the advertiser’s site and qualify to be shown a retargeting message.
● Their demographic, psychographic and behavioural qualities (see the section below on targeting display with data).
For example, if you are advertising televisions then the following scenarios could occur:
● Scenario A: your ad would appear on an iPhone but your website is not responsive.
Decision: the experience would be so poor that you may harm your image –do not show the ad.
● Scenario B: your ad would be viewed by a user who regularly visits your site but never buys.
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Decision: he or she is not a serious customer, just a browser – do not show the ad.
● Scenario C: the user started to buy a TV last week but dropped out of the funnel.
Decision: a hot prospect – show a retargeting message to try to convert them on their attempted purchase.
All of these options are available to buyers across the whole of the campaign.
More importantly, the revelation for advertisers is that they now only have to buy the ad impressions they actually want. Buying targeted inventory has always enabled this to an extent but within that targeted inventory there may be people in the wrong age range, income range or gender for the advertiser’s product. In the case of RTB impressions there is also the option for the advertiser to submit a bid for that single impression so it can be bought at a price point that is beneficial to the campaign goals as well.
The difference between programmatic and RTB is that programmatic provides the ability to assess impressions on an individual basis and RTB adds an auction element to some of those impressions. Programmatic impressions that are not bought by RTB are often agreed media buys with publishers to access certain targeting options or preferential rates that are unique to that publisher. These arrangements are called private marketplaces (PMPs); however, the advertiser still has the right not to buy an impression if it does not fit the immediate requirements of the campaign. The RTB element, often referred to as open exchange buying, has little restriction to entry and the targeting listed above can be applied to both. Fundamentally it is programmatic that provides this addressability that is seen in display today, by combining multiple data and decision-making options across the whole of the media campaign. The result is extremely effective campaigns.
CASE STUDY
CASE STUDY Nestlé: improving campaign performance and effectiveness with programmatic advertising
Background Background
Nestlé’s Dolce Gusto coffee-machine brand wished to improve the efficiency Nestlé’s Dolce Gusto coffee-machine brand wished to improve the efficiency and therefore results of their display advertising. The goals were to increase and therefore results of their display advertising. The goals were to increase awareness among new audiences and
awareness among new audiences and deliver a campaign with a deliver a campaign with a high viewabilityhigh viewability rate (see definition below).
rate (see definition below).
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Nestlé’s media agency opted to deliver Dolce Gusto’s campaign entirely using Nestlé’s media agency opted to deliver Dolce Gusto’s campaign entirely using programmatic technology. This enabled the agency to both control the delivery programmatic technology. This enabled the agency to both control the delivery of the campaign in terms of targeting it to coffee, food, appropriate lifestyle sites of the campaign in terms of targeting it to coffee, food, appropriate lifestyle sites and also to find the target audiences on sites with less contextual relevance.
and also to find the target audiences on sites with less contextual relevance.
Perhaps more importantly, it also enabled the agency to take data signals from Perhaps more importantly, it also enabled the agency to take data signals from Dolce Gusto’s website to dictate campaign delivery. It also used programmatic Dolce Gusto’s website to dictate campaign delivery. It also used programmatic technology
technology to to suppress suppress known known Dolce Dolce Gusto Gusto machine machine owners. owners. These These would would bebe users who were only viewing replacement coffee capsules and parts, who were users who were only viewing replacement coffee capsules and parts, who were logging into the site’s members’ area and who had
logging into the site’s members’ area and who had recently registered ownershiprecently registered ownership of a new machine. Despite these users fitting a lot of the targeting criteria, they of a new machine. Despite these users fitting a lot of the targeting criteria, they were excluded from being
were excluded from being shown adverts. This simple step allowed shown adverts. This simple step allowed Dolce Gusto’Dolce Gusto’ss ad spend to penetrate further into new
ad spend to penetrate further into new audiences. Additionallyaudiences. Additionally, the known owners, the known owners were used for lookalike modelling to identify other users whose browsing habits were used for lookalike modelling to identify other users whose browsing habits matched those of the known customers. In the delivery of the campaign, the matched those of the known customers. In the delivery of the campaign, the agency also closely watched which sites were delivering consistently high rates agency also closely watched which sites were delivering consistently high rates of viewability. These sites would be examined individually for the benefit they of viewability. These sites would be examined individually for the benefit they might bring to the campaign (highly relevant content, site quality and amount might bring to the campaign (highly relevant content, site quality and amount of adof ad placements per page). campaign was able to place advertising in front of almost entirely new visitors to campaign was able to place advertising in front of almost entirely new visitors to Dolce Gusto’s website – 91 per cent of all visitors were previously unknown to Dolce Gusto’s website – 91 per cent of all visitors were previously unknown to Dolce Gusto during the campaign’s delivery period. The campaign achieved an Dolce Gusto during the campaign’s delivery period. The campaign achieved an 84 per cent viewability rate, which was 21 per cent higher than the average rate 84 per cent viewability rate, which was 21 per cent higher than the average rate as measured by the
as measured by the IAB (IAB, 2012)IAB (IAB, 2012) Key lessons
Key lessons
Viewability is a measure that is more detailed than an impression in that it covers Viewability is a measure that is more detailed than an impression in that it covers not just that an add is shown
not just that an add is shown but that the ad is shown in but that the ad is shown in the viewable screen.the viewable screen.