eMarketer Webinar: Creating Ads on the Fly—New Opportunities in Programmatic

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Creating Ads on the Fly:

New Opportunities in Programmatic

August 27, 2015

Debra Aho Williamson

Principal Analyst


Agenda

Sizing the programmatic advertising business

New opportunities for creative

How the ad community is responding

Examples and best practices


Sizing the Programmatic

Advertising Business


First, a definition:

“Programmatic advertising

is an automated,

technology-driven method of

buying, selling or fulfilling

ad placements.”


In 2015, the ad spending scale will tip toward

programmatic

55% of all

US digital display

ads will be bought

programmatically,

representing

$14.88 billion in

spending

(Source: eMarketer, March 2015)


Programmatic

will make up

63% of total

US digital

display ad

spending in

2016


For many

industries,

over 50% of

digital display

is already

being placed

using

programmatic

techniques


Programmatic

isn’t just for

banner

advertising


New Opportunities for

Creative


Many have argued that programmatic leaves

little room for creativity


But in fact, the opposite may be true


Marketers can now do real-time

advertising at scale.

They need real-time creative at

scale as well.


Reason No. 1: Programmatic is moving up the

purchase funnel

More brand advertisers

are using programmatic

Ad spending on

programmatic direct (the

type of programmatic

often used by brand

advertisers) is growing

rapidly


Reason No. 2: In-depth data about audiences is

widely available

As recently as a few years ago, “we didn’t even

know who the audience was. Before we could

start to focus on creative, we needed to make sure we

knew who we were speaking to: Who was the audience?

Where are they in the purchase funnel? Where have

they been? Where are they physically? And what steps

have they taken in terms of their engagement with the

marketer?” — Douglas Kofoid, VivaKi


Reason No. 3: The Internet of Things is here

Opportunities to

reach consumers

in the moment are

increasing.

Why show

everyone the

same creative?


It’s time for an evolution in creative development

Programmatic creative:

“Creative that is broken down into

component parts and then reassembled

on the fly based on what’s known

about the audience or individual

to whom the ad is served.”


Haven’t we heard this one before?


Precedent:

Retargeting

Example:

The airline ad that

pops up minutes

after you shop for

a flight


Precedent:

Dynamic

creative

optimization

Example:

Swapping out

elements of

the creative

during

retargeting


Precedent:

Real-time

marketing

Example:

Tweets

timed to

major events


Coming soon: Platforms and technologies that

enable marketers to …

Easily create multiple versions of ads

Assemble component parts of ads on the fly

Deliver a more personalized message to consumers


How Is the Ad Community

Responding?


Jordan Sanchez/Unsplash.com


Advertisers are coming around, but it will be a

slow process

52% of media buyers and sellers say programmatic

inhibits or has no effect on creativity (AOL Networks)

Marketers want personalization but aren’t actively using

it; just 5% of marketers are personalizing extensively

(Econsultancy/Adobe)

Creative doesn’t rank high on the investment list;

marketers are more likely to spend on social, mobile or

marketing analytics, among other things (Economist Intelligence Unit)


Challenge:

Few agency

or marketer

execs believe

programmatic

enhances

creative


Challenge: Only 22% of marketers regularly use

data to adapt creative


Challenge:

Advertisers

have other

priorities for

programmatic

branding


Despite the challenges, some are starting to

think about how to break up the creative product

“Now so much more

of the creative

product is a

portfolio of assets,

where that fully created

end point has been

disassembled into all of

the components that

can be assembled in

real time.” — Jeff Dow, Starcom MediaVest

Group

“Historically, it was

creating one piece of

brilliant creative to be

fed to millions of people.

Now it’s about

turning that upside

down and saying, ‘We

need a million pieces of

brilliant creative to be

fed to each individual on

an as-needed basis.’” — Douglas Kofoid, VivaKi


Examples and Best

Practices


Lexus Super Bowl campaign: Personalizing video

ads for Facebook users

Customized

1,000 ads

Backgrounds

and copy were

personalized to

users’ interests

and location

Video ad images: Facebook


Heineken Desperados: Using programmatic

techniques to unlock creativity

The brand targeted ads

based on geography, time,

consumption history and

search behavior

“Desperados has a very, very

specific consumer set and

mindset … and it’s

geographically narrow. A

regular Yahoo [ad] or a

YouTube homepage takeover

doesn’t make much sense.

Programmatic becomes

extremely powerful and can

unlock the creative.” —Ron Amram, Heineken USA


Nike Phenomenal Shot: Engaging World Cup

soccer fans in real time

Within seconds of an

amazing shot, 3-D display

ads were created and

distributed over Google’s

properties

Fans could remix and share

versions of the shot

Results: 2 million fans

engaged and more than

500,000 remixes Source: Think With Google, June 2015


How marketers and agencies can prepare:

Look to existing processes for guidance

Evaluate costs with the end goal in mind

Realize the need for new workflows


Look to existing processes for guidance

Social media is a good precedent: Marketers have already had

to adapt workflow to the demands of always-on marketing.

“Programmatic takes it to a whole other level with personalization.”

— Luke Kintigh, Intel

Borrow from your content strategy: With so much content

available, “the chance that you’re going to have something for anybody

in your target audience is extremely high, and you’re likely to have

something that’s actually really good for that specific person.”

— Matt Cohen, OneSpot

Look to direct marketing: “In the direct-mail world, audience

segments and matrices are created to inform the creative messaging

that is distributed to different audiences.” — Paul Frampton, Havas Media


Evaluate costs with the end goal in mind

Use tools to reduce development costs: “If you previously had

one ad and now you have to have 50 ads, that has potential of being 50

times more expensive. That's why we're seeing tools come about [to

help] marketers get around a large chunk of that cost.” — Jeff Hirsch, CPXi

Upfront investments can reduce costs on the back end:

“When you look at results like cost per engagement or action, or even

operational efficiencies, at the end of the day it’s going to result in more

efficiency on the other side of the plan.” — Megan Jones, Digitas

Not all the expense will come from the creative:

“Personalization and customization are not particularly expensive, but

they require certain elements which can be more costly, like access to a

DMP.” — Loren Grossman, Annalect


Realize the need for new workflows

Enter the ‘creative optimizer’: “They can look at a brief and say,

‘Here are the tools you should be using and the data hooks you should

be thinking about.’” — Peter Crofut, Google

Help creatives get more digitally savvy: “They have to be able

to understand the process and think about, ‘OK, if I’m making this

animation, what are the different modular pieces that can be swapped in

and out, and how do I come up with a design that allows for that type of

flexibility?’” — Zach Glass, RED Interactive Agency

Use creative firepower for the formats, not the details:

“You do not need your creative director to make assets for programmatic

creative. You do need your creative director for oversight and

leadership.” — Loren Grossman, Annalect


The promise of programmatic creative:

Rethinking the

Process

Gregory KennedyDirector, Content Marketing, AdRoll

@GregoryKennedy

Creatives are Data-DrivenToday’s modern creatives are process driven and iterative in their approach

The Madman Way- Guru based approach

- Unscientific

- Hit or miss in results

The Mathman Way- Marketing based

- Data driven

- Repeatable

Ad Campaigns Today are Conversations

The goal of virality is get

participation from consumers

Curated, NOT dictated, multi-

layered narratives

Go for quality at scale, volume

counts

Design for multiple channels-

devices-audiences

Be proactive, timely and

interesting

Tap into popular memes and

narratives by paying attention

Reduce barriers and eliminate

complex approval processes

Assume your end user is a

mobile first users - web second

Social Media Has Revolutionized Marketing

Gregory KennedyDirector, Content Marketing, AdRoll

@GregoryKennedy


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