Programmatic Advertising Solutions for Retailers and Brands

Programmatic Advertising Solutions for Retailers and Brands

by Veronika Sonsev, CEO of inSparq

TODAY’S MEDIA LANDSCAPE

• Much of the complexity comes from programmatic ads.

• So what does all this mean?

• And how do you use it?

AGENDA:

1. What is Programmatic Advertising and how does it work?

2. Programmatic Media Buying Solutions

3. Programmatic Creative Solutions

WHAT IS PROGRAMMATIC

ADVERTISING?

HOW DOES IT WORK?

Who in the audience has done programmatic media buying?

Who has done retargeting?

Then, you’ve done programming media buying!

WHAT IS PROGRAMMATIC ADVERTISING?

Uses technology to buy and sell digital ads:

• Automates the decision-making process of where ads are placed;

• Often uses algorithms and/or real-time bidding (RTB);

• Used for online display, mobile, social and video campaigns.

WHY DOES PROGRAMMATIC MATTER?

• $15B will be spent on US programmatic ad revenue in 2015.

• Programmatic transactions will be a majority (52%) of non-search digital-ad spend in 2015.

• Retailers make up 25% of programmatic ad spending.

OLD SCHOOL MEDIA BUYING

ADVERTISER PUBLISHERAGENCY

AD NETWORK

Advertiser Direct

Agency Direct

Ad Network Direct

PROGRAMMATIC MEDIA BUYING

AGENCY

DSPs

• Rockerbox

• AppNexus

• OpenX

• The Trade Desk

EXCHANGE

• AppNexus

• Google

• Facebook

• OpenX

SSP• Rubicon Project

• Pubmatic

• MoPub

DATA SUPPLIERS & AGGREGATORSBlueKai, eXelate, LiveRamp, RetailNext

ADVERTISER

Data Data

PUBLISHER

AD NETWORK

DMP

1ST PARTY DATA

PROGRAMMATIC

MEDIA BUYING SOLUTIONS

APPLYING PROGRAMMATIC TO RETAIL

Top Funnel

Mid Funnel

MA

RK

ETIN

G F

UN

NEL

AWARENESS AND INTEREST• Demographic targeting• Interest-based targeting

CONSIDERATION AND INTENT• Behavioral targeting• Custom audiences• Location targeting

EVALUATION AND SALES• Retargeting

Bottom Funnel

RETARGETING• How Does it Work?:

• Retargets visitors to your site.

• What’s Programmatic?:• Can trigger off site visits, add to cart,

views of specific product.• Creative and media is dynamically

generated.

• ROI: 3-10X (conversion optimization).

• Solution Providers: Criteo, Google, AdRoll, Steelhouse.

Example from: Criteo

CUSTOM AUDIENCES• How Does it Work?:

• Targeting based on CRM data (e.g., inactive customers).

• Look-a-likes based on CRM data.

• What’s Programmatic?:• Starts with current customer base.• Matches emails to cookies/profiles.• Creates look-a-like models.

• ROI: 1-3X.

• Solution Providers: Facebook, LiveRamp, Viant, Google.

BEHAVIORAL TARGETING • How Does it Work:

• Finds customers similar to current customers.

• What’s Programmatic:• Creates models of browser behavior

to create behavior profiles (like tracing footsteps to store).

• ROI: 1-3X.

• Solution Providers: Rockerbox, Distillery.Example: Rockerbox

LOCATION TARGETING• How Does it Work?:

• Designed to drive in-store foot traffic with ads targeted based on locationplus demographics and interests.

• What’s Programmatic?:• Audience profiles built in real-time

using 1st & 3rd party data.• Ad is then targeted based on habitual

behaviors to drive path to purchase. • Creative can include directions.

• Solution Providers: Sonata Mobile, 9th

Decimal.Example: Sonata Mobile

PROGRAMMATIC

CREATIVE SOLUTIONS

FEED BASED PRODUCT CREATIVE• How Does it Work?:

• Increases relevancy of creative with products selected in real-time.

• What’s Programmatic?:• Based on product catalogue feeds. • Products selected based on trends

and personalization strategies.• Can be optimized without

trafficking new ads.

• Solution Providers: inSparq, AdRoll, Facebook.Example: inSparq

DYNAMIC CONTENT TARGETING• How Does it Work?:

• Advertising message targeted based on customer and context.

• What’s Programmatic?:• Elements of creative change based

on location, weather, time of day or customer profile.

• Uses 1st party and third party data to inform creative.

• Solution Providers: Celtra, Adacado, Spongecell.

Example: Celtra

KEY TAKEAWAYS:

1. Programmatic ads are more than retargeting. You can use programmatic for top and mid-funnel marketing activities.

2. Leverage CRM data as broadly as possible to help target your ad campaigns.

3. Programmatic ad creative can ensure you are using the right message for each potential customer.