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Transcript of AdMonsters dmexco Presentation
The boiler room to the bridge
September 24, 2009
building a culture of excellence in ad operations
Welcome
Wilkommen
Bienvenue
About AdMonsters
The only professional association exclusively
dedicated to online advertising operations
and technology
1999
2009Melanie Conner for The New York Times
What we do
Publisher Forum Leadership Forum
Training Consulting
Network Operations Forum
Over a thousand members
Hundreds of companies
AdOps 360 Webcasts
Blog Series
66850
Visit for more information…
admonsters.org
Boiler room
The bridge…
The ‘bridge’ today
Business Partners
Sales &
BD
Finance
Editorial
Technology
Ad Ops
People managers
VP Ad Operations
Trafficking Manager
Traffickers
Outsourced
trafficking
Dir. Ad Technology
Rich Media Specialist
Client Svcs Manager
Client services specialists
Pricing & Yield
Net. Opti
mization
Pricing
specialist
Inventory
Manager
Innovators
Technology managers
Revenue assurance
Act
Plan
Do
CheckCulture of continual improvement
The early days…1996 - 2002
Ad Ops, the early days
Head of Sales
Trafficking
Ad Technolo
gy
Il faut imaginer ad ops heureux
Boiler room to the bridge2002 - 2008
2001-2002
Relative ad spend 2001-2004
2001 2002 2003 2004
-20%
-10%
0%
10%
20%
30%
40%
50%
-12%-17%
21%
39%
the most dynamic and revolutionary
changes of any era in the history of
advertising
"Marketers large and small have come to
accept digital media as the fulcrum of any
marketing strategy”Randall Rothenburg, IAB US, 2007
“growth continues to be stimulated by the expansion
of newer online ad platforms, such as
broadband video, rich Internet applications, mobile,
and social media”MediaPost, Q3 2007
Case studies in success
Orbitz: Kaizen in Ad Ops
99.9%
90%?95%?99%?
$30M
Orbitz: Kaizen in Ad Ops Ad Operations goal
Provide the highest levels of quality to our customers Eliminate redundant and wasteful activities
3 Principles of Kaizen –operational excellence through: Process and results (not results-only) Systemic thinking (i.e. big picture, not solely narrow view) Non-judgmental, non-blaming (blaming is wasteful)
PCDA –Plan, Do, Check & Act FOCUS on quality –strive for 100% (99.9% is not
adequate)
Plan
Do
Check
Act
P D C A
Orbitz: Kaizen in Ad Ops How to achieve this
Operations teams achieve high quality through continuous improvement, learning, modifying process and adapting to change.
The Japanese refer to this as Kaizen, which means, ‘change for the better’ or ‘improvement’. The English translation is continual improvement’
Results at Orbitz Since debuting this concept in 2005 organization has eliminated waste,
cross-trained teams and balanced the workload Scalable framework for managing and measuring excellence Eliminated redundant activities and automated many processes Better balance of responsibilities for the department Strong team mentality
Microsoft: The Staffing Challenge How to get more from their ad ops team? High churn levels at lower Ad Operations positions Ad Operations people tend to not have a career path The “Millennial” problem…
Microsoft: The Staffing Challenge Invest in People Outline career paths
Management path or Professional path Functional Leader or broad Business Leader
Extend Job Responsibilities Quickly Share Reality with employees Measure Performance; Reward Success
Measure results Hold managers accountable
Microsoft: The Staffing Challenge Results
Team Leaders and Team Members have well defined goals Team Members know their importance to the company Department can scale efficiently Manager accountability Reduced churn in the department
Martha Stewart: Ad Ops as Revenue Center
Major offline U.S. Media Brand Needed to drive online revenue Needed to shift from a ‘trafficking’ structure to a
revenue center structure
Martha Stewart: Ad Ops as Revenue Center Hired Matthew Gay, VP Media
Advertising Operations Not originally in Ad Operations, but
finance and process expert Metrics of department success all
around revenue Hired the right people for the right
jobs but not necessarily from ad operations
Implemented process changes throughout organization
Implement Yield Management tools
Martha Stewart: Ad Ops as Revenue Center Results
Ad Operations seen as the provider of logical and rational information for the organization.
Ad Operations seen as Revenue Center not a data center Inventory review & management reporting Focus on yield & monetization within ad operations
Washington PostAd Product Innovators
Washington Post: Ad Product Innovators Growing Revenue by being Innovative Standard units are commoditized...non-differentiated Networks have lowered the bar on pricing Can help a non-differentiated site stand out in the
crowd Clients/Agencies are looking for things that have
never been done
Ad Product Innovation
Ad Product Innovation
Washington Post: Ad Product Innovators Developed culture of innovation Created team solely focused on developing
innovative ad products. Team works with all internal departments and with
clients to bring ideas to fruition fast. Departments meet together to share new ideas. Ad Operations seen as an enabler of revenue.
Yahoo!: Ad ops, Top Down Top tier clients demand
top tier service Ad Operations is about
business process, not trafficking
Wenda Millard in the US and Fru Hazlitt in Europe
VP SalesAgency Sale
s
Direct
Sales
Client
Svcs
VP Ad Ops
Traffic
Yield
Tech
Yahoo!: Ad Ops Top Down Raise the game of operations
Create VP of ad ops Getting a handle on inventory/pricing/yield critical
Big investment in both people and tech to get there In house technology and creative teams Rational economic decisions trump irrational emotional ones Sales & Operations in partnership Align corporate priorities and sales incentives…with Ops
providing the insight
What do these all have in common Executive level cheerleader who support ad operations Ad Operations has been challenges and/or allowed to
step up These companies view the organization more as business
ops than simply ‘ad ops’ and certainly ‘trafficking’ Understand that ad operations is about more than just
managing ads and campaigns its about growing the business
Have created a role for a senior ad operations leader within their org
Near term challenges
2010 Challenges New technologies and pressure to monetize them
Video & mobile Economic climate drawing C-level attention to Ad Ops. Need
to communicate challenges and justifications, better reporting Pressure on revenue leading to increased demand for ad
network deals. More sales ‘custom ads’ and pressure for ‘rule bending’
Desire for increased targeting Reduction or freezing of staff levels
Suggested Takeaways
Ad Ops, the early days
Head of Sales
Trafficking Ad Technology
Are you an ad ops leader? Where are you in the evolution of ad ops? What will your plan be to get ops to the bridge? Is ad ops a business partner or an order taker? Is 90% good enough? What’s your plan for implementing Kaizen in your
operations? How do you find and keep the BEST talent in ad ops? If you are, what more can you be doing to
Grow as a revenue center Create career paths
Thank you
Matt O’[email protected]