Data Driven Product Innovation - Data Driven Product Innovation Case Study April 2017. Data Driven...
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Data Driven Product Innovation
Case Study April 2017
Data Driven Ad Product Innovation 2 Case Study
The digital ad ecosystem continues to get more complex, creating challenges for publishers who must keep up with the latest trends in ad formats, delivery, and reporting tools. While the space may be ripe for the long awaited and predicted consolidation, until that consolidation happens publishers need to piece together solutions across multiple vendors, adding incremental costs to their bottom line in order to remain compelling and competitive.
At the same time, the proliferation and widespread adoption of DMPs, RTB exchanges and programmatic advertising continue to depress CPM rates and commoditize audiences across publishers - driving a race to the bottom. While DMPs have helped to shift the conversation from uniques to audiences, as publishers implement DMPs they are adding themselves to a long list of other publishers where advertisers can buy the same third party audiences.
So, while this enables them to get in the game, one needs to question whether it’s a game that any publisher can possibly win. Programmatic and RTB exchanges have allowed advertisers to be more targeted in who they reach, enabling them to better manage how much and where they spend to do so. Again, these buys are often devoid of the context of where the ads are being served and this, therefore, also diminishes the specific value that a given advertiser brings to the marketplace.
Data Driven Ad Product Innovation 3 Case Study
So paradoxically, the investment in additional ad tech solutions is costing publishers more to deliver attractive ad inventory while getting less in return as the perceived value or role of individual publishers is diminishing.
With this backdrop, innovative publishers are revisiting how they sell their inventory and creating unique ad products to cut through the clutter, reverse the CPM trend and increase their competitive positioning.
This case study describes a publisher who did just that and successfully reclaimed the value of their unique audience using advanced analytics and insight into their audience segments to deliver the right audience to advertisers at the optimal time.
Quaero’s AdVantage CDP enables publishing customers to gather, fuse, analyze and action audience data for the purpose of creating new ad products. The case of a recent customer provides a creative example as to how AdVantage can be leveraged to create something truly unique and valuable in the ad marketplace.
Our customer was a digital news and media publisher with significant scale in ad inventory. They sold traditional sponsorships and dabbled in some first party run of site (ROS) targeting.
They had deployed a DMP and began selling third party segments against their data. They had also seen significant migration of their traffic away from desktop to mobile devices resulting in less overall ad inventory and depression of overall revenue. Faced with inventory commoditization and depressed revenue, the customer looked towards its content coverage and audience data for answers.
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Data Driven Ad Product Innovation 5 Case Study
The Solution Part 1
Identifying the Opportunity
The publisher is a leading authority in the news and information category within a specific market with discrete events and looked to use that position to their advantage. From past primary research, they had information about how different sub segments of their audience reacted pre, during and after key events based on their relative level of interest in the details of an event.
Armed with Quaero’s AdVantage, the publisher could identify, create, and distribute its digital audience against the corresponding sub segments based on a combination of self-reported interests and inferred interests based on consumption patterns.
The Big Idea
Allow advertisers to tap into sub segments of the audience as they moved through the pre, during and post event stages with creative messaging that reflects the stages and the individual interests of the audience.
The Solution Part 2
Operationalizing the New Ad Product
Advanced analytic models were developed to derive interest and affinities. These models were embedded into AdVantage for automated execution. Through a direct integration with the publisher’s ad server, the resulting behavioral based segments along with the self-stated segments were delivered to the ad server for direct targeting.
The publisher already had details regarding the status of the events since it was part of their core capability to report on them. The key was to make this data available to a decisioning engine via an API.
Turning Intelligence into Action
1. Micro segments were mapped to each news category
2. A decision tree was created based on the combination of segment and category mapped to pre, during and post event which resulted 2000+ combinations.
3. Each unique combination of micro segment, category, and state of event were mapped to a creative.
6Data Driven Ad Product Innovation Case Study
7Data Driven Ad Product Innovation Case Study
The Solution Part 2 continued
The publisher leveraged an ad delivery platform that specialized in delivering dynamic creative messaging based on data passed in the ad call. Prior to a campaign, the various combinations of audience segment and event stage are aligned with dynamic messaging and defined within the ad delivery platform. Then upon the ad call the audience segment and event data is served up and the third party delivers the corresponding ad version.
The Solution Part 3
Measurement and Optimization:
All of the ad delivery, view-ability, delivery pacing, clicks, survey data to capture impact on key brand metrics and both Online and off-line conversion data from these campaigns were fed back into AdVantage. Data from these different sources was then aggregated and exposed via a reporting interface. The reporting interface allowed the publisher to track the health of a campaign (view-ability and pacing) as well as performance against a control campaign and or predefined benchmarks. These reports were also served up to the Advertisers and their Agencies so they can see the results of their campaigns in progress and post mortem.
Using conversion data enabled the publisher and advertisers to study attribution and identify the combinations of audience segment and event stage that were performing best, in turn driving further optimization of the campaigns.
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Strategic Conversation Starter
This innovative ad product has allowed the publisher to initiate new conversations with existing advertisers and agencies and created fresh opportunities to start conversations with prospective advertisers. It created a buzz in the marketplace and serves as a clear point of differentiation for the publisher.
Proof is in the Pudding
When compared to the performance of ROS campaigns on the publisher’s site, advertisers are seeing lifts ranging between 20 – 50% with this new ad product, making them more willing to pay a premium.
Take it to the Bank As a result of the incremental lift, the advertiser has been able to charge a 20% premium CPM for these campaigns.
John Strabley VP of Strategy & Account Management
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The AdVantage Our client is now leveraging more of their data assets to bring to market an innovative and unique ad product. In addition to driving incremental revenue, the new product has opened up additional opportunities for dialogue with existing and prospective advertisers. The introduction of the new product has also cemented our client as a leading and innovative publisher helping them to differentiate themselves from key competitors.
http://www.quaero.com http://www.quaero.com/team/ashwin-nayak http://www.quaero.com/team/john-strabley
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