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Keynote Presentation: Using the digital marketing ecosystem for digital monetization
ROLAND SIEBELINK COLOMBIA 3.0 CONFERENCE | BOGOTÁ | JULY 30TH 2014
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Introduction
DIGITAL MONETIZATION/DIGITAL MARKETING | COLOMBIA 3.0 0
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
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Digital marketing provides the best opportunity for digital monetization of both paid and free products
Large opportunity in digital marketing
Buying/selling
automation
Cheaper content
production
Shift in viewing habits
SUMMARY OF THE PRESENTATION
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
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Structure of the presentation
Much of digital monetization is digital marketing
Titel
Advertisers can reach many more prospects more efficiently
Publishers can sell much more ad space more efficiently
Programmatic lets innovative players leapfrog their competition
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
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MAJORITY OF MEDIA TIME ONLINE AD SPENDING SHIFTING TO ONLINE
Digital media are already capturing the largest share of user attention, and ad spending is catching up.
Media hours/consumer/day, globally
38.6%
29.2%
16.6%
8.5% 7.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Other Radio
Online
TV
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Much of Digital Monetization is Digital Marketing
DIGITAL MONETIZATION/DIGITAL MARKETING | COLOMBIA 3.0 1
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
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Marketing is at the basis of monetization of any product—whether digital or not KEY ELEMENTS OF THE MARKETING ECOSYSTEM
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Advertising Agencies
Consumers Product Vendors Publishers/
Retailers
content
attention
ad spend
audiences
sales proposition
paying customers
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attention
content
Consumers Publishers/Retailers
Product Vendors
paying customers
Product vendors use advertising to show their sales proposition to more prospective paying customers. KEY ELEMENTS OF THE MARKETING ECOSYSTEM: PRODUCT VENDOR PERSPECTIVE
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Advertising Agencies
ad spend
audiences
sales proposition
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attention
content
Consumers Product Vendors
paying customers
Digital content producers build audiences with free content to earn income from digital advertising. KEY ELEMENTS OF THE MARKETING ECOSYSTEM: PUBLISHER PERSPECTIVE
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Advertising Agencies
ad spend
audiences
sales proposition
Publishers/Retailers
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Consumer’s attention shifting to online media creates a massive growth opportunity for digital advertising
0% 20% 40% 60% 80%
100%
% of ad spending
% of consumer attention
TV 38%
TV 23%
Online 28%
Online 54%
Print 17%
Print 5%
Radio 9%
Radio 11%
Other 7%
Other 7%
CONSUMER MEDIA ATTENTION SHARE VS SHARE OF ADVERTISING SPENDING
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
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Structure of the Presentation
Digital marketing is the major digital monetization opportunity
Titel
Digital Marketing For Advertisers
Digital Marketing for Content Producers
The Programmatic Momentum
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
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Digital marketing offers advertisers exceptional power and cost savings
DIGITAL MONETIZATION/DIGITAL MARKETING | COLOMBIA 3.0 2
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
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attention
content
Consumers Publishers/Retailers
Product Vendors
paying customers
Product vendors use advertising to show their sales proposition to more prospective paying customers. KEY ELEMENTS OF THE MARKETING ECOSYSTEM: PRODUCT VENDOR PERSPECTIVE
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Advertising Agencies
ad spend
audiences
sales proposition
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results
interest
Products sold online are first candidates for digital monetization—but all product vendors can benefit. PRODUCT VENDOR PERSPECTIVE, EXAMPLE #1: ONLINE RETAIL BANK
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Consumers Online Bank search
engine
ad spend
clicks
“open an account”
funds flowing in
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top 10
installs
App developers rely on app stores for quality control and fulfillment but also for marketing their product. PRODUCT VENDOR PERSPECTIVE, EXAMPLE #2: MOBILE GAME DEVELOPER
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Consumers Game Developerr App store
fees
fulfillment
“no more boredom”
revenues
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EXPLOSION OF DIGITAL CONTENT HYPERPRECISE TARGETING
The explosion of digital content properties enables advertising precisely aimed at ideal prospects.
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
100 million Web sites and apps
60 billion daily
individual ad spaces worldwide
1 billion anonymized
consumer profiles
worldwide
Geographic Psychographics Lifestyle
Interests/Hobbies Past Purchase Social Influencers In-Market
Demographic
Channel Device DMA-City-Zip
Browser Ad Size Time of Day Language
Context
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Full measurabilty and instant changes allow for constant optimization of thev value proposition.
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
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Real-time bidding helps advertisers unbundle bulk audiences and find attractive prospects directly.
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
DEMOGRAPHIC A
BEHAVIORAL SEGMENT B
CONTENT CATEGORY C
Bulk buying in advance
Data
Campaign target
Real-time bid requests
Individual buying in real time
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Amazon Ebay
Efficient digital distribution platforms enable vendors of all sizes to compete on a level playing field. DISTRIBUTION PLATFORMS OFFER VENDORS MORE MONETIZATION OPTIONS
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
one shop
loyalty Consumers Product
Vendor
fees
fulfillment
“delivered to you”
revenues
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Structure of the Presentation
Digital marketing is the major digital monetization opportunity
Titel
Advertisers can reach many more prospects more efficiently Digital Marketing for
Content Producers
The Programmatic Momentum
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
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Digital represents new monetization opportunities for content producers
DIGITAL MONETIZATION/DIGITAL MARKETING | COLOMBIA 3.0 3
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
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attention
content
Consumers Product Vendors
paying customers
Digital content producers build audiences with free content to earn income from digital advertising. KEY ELEMENTS OF THE MARKETING ECOSYSTEM: PUBLISHER PERSPECTIVE
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Advertising Agencies
ad spend
audiences
sales proposition
Publishers/Retailers
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Content can be monetized if the audience it produces is an interesting target group to some product vendor. PUBLISHER PERSPECTIVE EXAMPLE #1: BLOG AIMED AT FREQUENT TRAVELLERS
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Travellers Airlines Hotels
blog posts
attention
referral fees
audience
attract best prospects
increased spending
Blogger
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Search engines and social networks are publishers too, they just produce their content in a different way. PUBLISHER PERSPECTIVE EXAMPLE #2: SOCIAL NETWORK
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Consumers Adver- tisers
social content
engagement
ad spending
views/clicks
brand exposure
Increased preference
Social network
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Distributed global niche audiences have increased the viability of the content “long tail”
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
100 1 2 3 4 5 6 7 8 9
10
0
1
2
3
4
5
6
7
8
9
# of audiences
Avera
ge au
dienc
e size
1970 cost 2010 cost
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The cost to produce and edit compelling content has fallen steeply, so that ad space can be added cheaply.
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Cheap tools
Offshore producers
“Work for reference”
Cheap to add content
Content/ ad space explosion
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Automated sell-side platforms can help publishers maximize net yields across multiple sales channels.
Direct premium sale
No →
Yes
Network sale
No →
Yes
On-exchange RTB sale
Private Exchange Open Exchange
PUBLISHERS’ BEST PRACTICE: REAL-TIME MULTI-CHANNEL AD SALES STRATEGY
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Bulk of sales without in-house sales force
50 ms 100 ms 150 ms 200 ms
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EXAMPLE PUBLISHER-OWNED DATA BUNDLED OR UNBUNDLED
Publishers can also monetize the data they gather on their audiences—bundled with ad space or separate.
Custom targeted audiences
Sell segments to data brokers
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Con-sumers
Gender Income Kids in household
Behavior Coupons Contests
Site searches
Cam-paigns
Past successes Past converters
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Digital marketing is the major digital monetization opportunity
Advertisers can reach many more prospects more efficiently
Structure of the Presentation
Titel
Publishers can sell much more ad space more efficiently
The Programmatic Momentum
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
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The Programmatic revolution drives ever more efficiencies into digital advertising.
DIGITAL MONETIZATION/DIGITAL MARKETING | COLOMBIA 3.0 4
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
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Programmatic advertising drives efficiency even further in that computers make all buying decisions. CONTRAST BETWEEN TRADITIONAL ADVERTISING AND PROGRAMMATIC
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Programmatic buying
Bidding on individual ad impressions
In real time For the opportunity…
To show one specific message
To one specific consumer
In one specific context
Traditional buying
Buying collective ad placements In advance For the
opportunity…
To show one generic message
To a group of consumers
Along a generic content category
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Real-time bidding platforms are now auctioning over 30 billion impressions per month in Latin America
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Programmatic reach in Central America: 56%
Monthly unique viewers: 250 million
Monthly bid requests: 30 billion
Programmatic Reach:
Exchange Partners
Programmatic reach in South America: 64%
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The world’s largest advertisers are recognizing the superior ROAS of programmatic advertising.
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Advertising Age Leading National Advertisers
80+/100 Fortune 100 Companies 55+/100
Represents advertisers and brands who have spent with Rocket Fuel trailing 12mo ending 3/30/2014
FINANCE RETAIL TRAVEL TELECOM / CABLE
AUTO
DINING / OTHER EDUCATION
CPG ENTERTAINMENT
TECHNOLOGY GOVERNMENT/NONPROFIT
HEALTH & BEAUTY
AGENCIES
$1M+ lifetime customers 96+
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Programmatic’s efficiencies are already driving the majority of non-direct inventory buys in the US. U.S. RTB-BASED INDIRECT AD SALES AS A SHARE OF TOTAL INDIRECT AD SALES
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
12% $396 M
29% $986 M
43% $1.95 B
57% $3.36 B
68% $4.56 B
76% $5.97 B
78% $7.42 B
>80% $8.49 B
10%
20%
30%
40%
50%
60%
70%
80%
2010 2011 2012 2013 2014 2015 2016 2017
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The variety of platforms and service providers makes it easy for advertisers and publishers to get started. KEY PLAYERS IN THE PROGRAMMATIC ADVERTISING ECOSYSTEM
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
Advertisers (Digital)
Advertising Agencies
Agency Trading Desks
Demand Side
Platforms Ad Exchanges
Sales Side Platforms
Ad Networks
Publishers Consumers
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Digital marketing is the major digital monetization opportunity
Advertisers can reach many more prospects more efficiently
Structure of the Presentation
Titel
Publishers can sell much more ad space more efficiently
Programmatic lets innovative players leapfrog their competition
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
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Conclusion
DIGITAL MONETIZATION ECOSYSTEM | COLOMBIA 3.0 2014 ∑
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
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Digital marketing is the major digital monetization opportunity
Advertisers can reach many more prospects more efficiently
Conclusion of the Presentation
Titel
Publishers can sell much more ad space more efficiently
Programmatic lets innovative players leapfrog their competition
Intro | Monetization = Marketing | Advertisers | Publishers | Programmatic | ∑
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Time to answer questions—on Twitter and in the room
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Desert analogy