We are very happy and proud to say that Marta Amigo from la Fundación Down Madrid has been working as an intern with us during the month of May.
Marta is a nineteen-year-old young girl who is in a special programme that gives youngsters the opportunity to help within a work environment. Marta surprised us all showing great communication and organizing skills. During the month of her internship she helped across every department in different issues.
Every morning when she arrived to the office she organised all chairs and tables in our meeting rooms, and she charged the printer with paper. Then depending on the day she had different tasks:
– Account department: She helped organising and printing purchase orders.
– Financial department: She organised all 2016 and 2017 invoices in alphabetical order.
– Marketing: She helped filling in the PR tracking excel spread sheet.
We have been very happy to have her as part of the team in the Digilant Madrid office. The work she´s been doing here has been of great help! After this great experience, we will absolutely repeat next year with another Kid of Fundación Down Madrid. Why don’t you try it too?
For independent shops like Cramer-Krasselt, the shift to programmatic presents challenges. They don’t have the resources to pour into proprietary tech like the big holding companies. For Cramer-Krasselt, that has meant stitching together ad-tech partners to form its own trading desk — and educating all of its employees on the ins and outs of programmatic.
“For a long time, media-holding companies maintained the agency trading desks as a centralized profit center, and the next trend is midsized independent shops started getting into programmatic by working with companies like Digilant and Choozle,” said Eric Bader, managing director and co-founder for digital consultancy Volando.
The system (named “DesCK”) was moved out of beta last year, and now, the agency has an ad-tech team of 10 to run programmatic campaigns for clients including Edward Jones Investments, Cedar Fair Entertainment and blender brand Vitamix. The agency uses the technology infrastructure developed by its data management and five demand-side platform partners including The Trade Desk, and then adds its own data and budget-control system on top of that.
“We would be locked in if we build our own tech from scratch because there’s a cost, and once you want to change things, you cannot adjust quickly,” said Chris Wexler, the agency’s director of media and consumer engagement. “By leveraging others’ tech infrastructure, we can be very nimble in terms of what we want to buy, how we want to buy and how to measure it.”
One big differentiator in Cramer-Krasselt’s trading desk is that the agency has built it as a multi-DSP tech stack, with one single DMP that is governed by a proprietary analytical, fraud and budget management system that “significantly” enhances the agency’s DSP and exchange partners, added Wexler.
“If we had built DesCK with just The Trade Desk, while the tech is good, we would be missing out on the best results for our clients,” he said.
Cramer-Krasselt built its DMP based on Salesforce-owned Krux and then uses that DMP as “the core source of truth” to get the cleanest view of data possible. This is because if a marketer buys programmatic inventory from a publisher, for instance, the publisher’s own analytics may show it has 100,000 impressions per month, while comScore may say that the impressions are 90,000. Then, Google shows that the actual number should be 80,000 monthly impressions, while Cramer-Krasselt’s own ad server reveals that it is 70,000 monthly impressions.
“The numbers are moving around, so we need our own DMP to assess those data discrepancies and evaluate one DSP over another,” said Wexler.
The digital advertising industry loves cookies – the dominant data currency of today. Much of programmatic media buying technology and the way we deliver billions of digital ads, depends on this magical string of characters that helps identify consumers online. But what exactly is a cookie and how is it used to target ads? It’s not as straightforward as you’d think and the answer should help you understand why the ad industry will eventually replace the cookie and move to “People-based Advertising.”
In the advertising industry, many would say that a cookie is a digital identifier for a consumer that an advertiser can target. While this is true, it can be misleading. A cookie is an identifier for a browser on a device. Each device has multiple browsers and each consumer has multiple devices. So, while a cookie is an identifier for a consumer, it is one of many cookies that represent each consumer. When advertisers target a cookie, they target one browser, on one device, for one consumer.
How Many Cookies Does A Consumer Have?
It varies by country, but the global average is approaching four devices per consumer (source). Therefore, at a minimum, the average person has at least four cookies. However, each device can have multiple browsers, and therefore multiple cookies. Even your iPhone, which has a default browser (Safari) that
most of us use, contains multiple browsers. For example, when you open a website in your Facebook app or Reddit app, that behavior is likely attributed to a different cookie than the default browser on your phone.
Today, cookies are increasingly short-lived. When someone clears their cookies, they are essentially changing their digital advertising identifier for that browser and all previously collected behavior is lost. When someone uses private browsing (like “Incognito” mode on Chrome), they create a new cookie each time they reopen the browser.
So if a programmatic advertiser wants to target a specific cookie, it’s possible that they will never see that cookie again because the consumer has cleared their cookies.
How Is A Cookie Used To Target Ads?
In the early days of digital advertising, it was quickly recognized that profiles could be built around cookies by tracking what users do across multiple websites. For example, if you browse between a travel blog, TripAdvisor, and Expedia, it can be inferred that you are in market for a vacation. In order to monetize their audiences, websites started sharing data with third-party resellers, like BlueKai. These resellers wrapped that behavior up into segments, and sold bundles of similar cookies to multiple advertisers.
It has been quite successful to date, but with the explosion of devices, the surge of ad blockers, and learned habit of “clearing cookies,” the age of cookies for digital marketers is coming to an end.
The Future: People-based Advertising
The goal of digital advertising has always been about using consumer behavior to communicate the right message to the right person at the right time. The more data an advertiser has about users, the more this goal can be realized.
It should be obvious by now that in today’s world a cookie represents a small portion of consumer behavior. In the days when most consumers had one desktop device and no ad blockers, a cookie represented the lion’s share of that person’s online behavior. However, we have hit a tipping point in the advertising industry where the value of a cookie is diminishing.
In order to replicate the success of the past, behavior across browsers and devices must somehow be tied back to the consumer. This is referred to by some as “People-based” advertising – where targeting occurs at the level of the consumer, not their cookies.
In order for People-based advertising to work, a shift from cookies to an identifier needs to happen. Many have looked at an email address as the alternative option. If an email address is tied to cookies, it is possible to tie behavior across multiple devices and browsers back to an individual. Furthermore, an email address translates to other channels – such as social, search, and email (of course!).
However, the reality is that many consumers have multiple email addresses – a personal email, a work email, and an email used for junk mail – and email addresses don’t last forever. While email is a great first start, it won’t create the defragmented consumer profile required for optimal ad targeting.
Could A Mobile Phone Number Enable People-based Advertising?
Most consumers have one mobile phone number. Since mobile providers allow for a phone number to be transferred from one provider to another, consumers don’t often change their number. The mobile number is a non-fleeting, unique identifier that represents a consumer. If all digital behavior could be tied to a mobile phone number, advertisers would have a full profile of their consumers.
It’s no surprise that ecosystems, like Facebook and Google, are requiring a mobile phone number to verify a consumer’s identity. If you want to sign up for an account, you need to provide your phone number. As this practice becomes commonplace for smaller apps, publishers, and websites, mobile phone number could become the identifier of the future.
For programmatic advertising, a consumer’s unique ten-digit identifier could one day act as a replacement of the cookie – assuming this happens in a privacy compliant way. It would span ecosystems, devices, browsers and help advertisers achieve their goal of delivering the right message to the right person at the right time.
With programmatic spending expected to reach new highs in 2017, advertisers now more than ever before need to leverage their data and their digital media dollars for optimal results. This leads to an important discussion marketers are having around the growing demand for programmatic solutions and how they need to be more proprietary to their market or brands.
The evening was kicked off by Alan asking everyone to define the word Programmatic. Tom from Kaspersky Lab was the first to respond by saying that to him “Programmatic is the automation of marketing activities from humans to machines.” Cynthia, from Bose defined it as the ability to leverage data insights and ultimately be a smarter marketer. She buys many types of programmatic media, including email, direct mail audio, and said “it’s a way to buy media.”
Then Alan kicked off the questions by asking Beth, “how does CVS Health use programmatic buying to reach their consumer?” The response was that CVS Health approaches DSP buying in a couple of different ways. First, having always on campaigns. The majority of their digital media buying is focused on campaigns with one campaign goal that combines all the channels, including search, social as well as programmatic. Cynthia at Bose follows a similar strategy with two or three always on campaigns running in market, as well as leveraging their programmatic data to feed other digital media channels like search.
At Kaspersky Lab, all the digital media buying is centralized though one in-house team. One pool of money with one target, same ROI and a team that works together. With the idea that by using one tool they could more easily make budgeting decisions and move money between channels and their results have proved that centralizing their DSP buying was the right decision for them.
Next they moved onto the subject of marketing personalization. Alan asked them how they see programmatic and the idea of personalization or customization coming together? Cynthia from Bose was the first to respond by saying that “they try to make everything they do at Bose more personalized.” The digital marketing industry is getting to a place where we can leverage data to understand where customers are, through all their touch points, so that we can personalize their customer journey.
Beth said that CVS Health has been trying really hard to achieve the goal of making it about one customer at a time. But since they are a large corporation, the data lives in different places and it’s hard to put all the pieces together. So far, where they have seen success is with the extra care reward card because all the ads and offers are based on that person’s data.
Tom at Kaspersky Lab said that form him “programmatic is a means to personalization.” One of his challenges is that they have a low engagement product since their consumers essentially buy a contract. Their challenge is to find the right cadence of offers so that they are not showing you an ad at a time you are not ready to buy. This is how they are using programmatic data, to find the right moment to get you to buy. The purchase process is measured in hours so it’s important not to annoy your prospect but to get in front of them at the right moment when they’ve decided to purchase.
Next the panelists were asked “what programmatic trends and developments they feel have had an impact on their business today, versus those that are on the horizon?”
Cynthia from Bose said that you have to be really smart about how you use your programmatic data so that you can leverage itfor things like: understanding the consumer’s intent, finding people that look like your consumers, real-time messaging and figuring out if that’s even the right consumer to go after? As for the future, she sees bringing programmatic up the funnel and trying new channels like audio.
For CVS Health, Beth said that programmatic has become one of the major marketing channels with the same expectation to drive in-store sales. “It’s great for lookalikes, rather than finding the same people again and again we can also find new ones.”
Tom from Kaspersky Lab is looking forward to programmatic moving towards commoditization, where everyone can buy the same inventory. “In the future the advantage will be the data layer, using first party data will give you that leg up over your competitor.” He also said that everyone is on the same path but on a different point of it in different countries. Being international they have the ability to run advanced tactics in certain countries and get ahead where their competitors lag.
“So beyond lookalike how are you using first party data to make your media smarter,” Alan continued.
“Well, for us,” Tom said, “there are three ways to become a customer: direct buy, trial, or freemium product. The problem for us is trying to predict to which of these you will respond to. Media efficiency will be better for us when we know which message you will likely respond to and buy from. Our goal is to make strides on different types of messages so that we can crack the purchase type using our data.”
At CVS Health they are lucky to have a 20-year-old loyalty program with 80 million extra care members that they can tap into. Beth said that they just started going outside that audience to not just drive incremental sales and actually look at non-customers. They are using data to unlock new customers.
Lastly, Alan asked the panelists their thoughts on Brand Safety and what they were doing in their respective companies, on top of using third party verification partners like Integral Ad Science ?
Beth said that at CVS Health they have what they call a Disney filter and that they are super strict about it. They are vigilant about their blacklists and YouTube is working really hard to get their money back! Both Tom and Cynthia talked about private marketplace deals and knowing more about the inventory you are buying as being very important to them.
Overall it was a very good discussion that could have gone for longer, but we promised our panelists that they could have a sit-down dinner. As a marketer I gained a lot of insights into different areas of programmatic and am excited for what the future will bring.
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