Demystifying RTB

Machine Learning

RemarketingBrand Safety

Consoles

Human Optimization

3rd Party Data

Click Bots

1st Party DataPrivate Bidders

Dynamic Algorithms

Dynamic TargetingSearch Retargeting

NAIKeyword Targeting

Static Database

DAA

DAAC

Organic Data

Live vs.

vs.

vs.

Trading Desks

Click Fraud

Demystifying RTB

Machine Learning

Brand Safety

Human Optimization

3rd Party Data1st Party Data

vs.

Static DatabaseLive vs.

vs.

Click Fraud (Death of the Click)

MACHINE VS HUMANOPTIMIZATION

Beauty and the Beast Theatre Production submitted 492 keywords for search retargeting, which resulted in a CTR of 0.030% (way below average of 0.4%)

Human Analysis indicated that 67% of all points were generated by generic terms shows, march break & gifts which were diluting the effectiveness of the segment.

Machine vs. Human Optimization – Case Study

*eyeDemand Word Cloud

Removing generic keywords and inserting new more specific words - reducing the total search terms to 207 - resulted in a CTR of 0.57% - an increase of 1800%.

Machine vs. Human Optimization – Case Study

*eyeDemand Word Cloud

Human Optimization vs. Machine Learning

Analyze Brand Safety Web Site Analysis

Content Quality, demographic data, language

Base success on conversions, not clicks

Creative evaluation

Time-relevant search terms (blocking and targeting)

Evaluate performance of machine learning

Monitor click fraud

Automated filters can be helpful but constant human monitoring required to catch new bots

Our Recommendation…choose the cyborg approach, best of both worlds!

Multi-Variable Analysis Ad type/Time of day recency and frequency creative format

performance

Automated Optimization to various KPI’s

Algorithms

Monitor click fraud

Automated Filters based on human learning

Live vs. Static Data

Conv

ersi

on R

ate

Live vs. Static Databases

Live “Organic” Data

Static Data

89 campaigns spanning a one year period (April 2012 – March 2013) for 3 major automotive brands

Time

Cost Per Acquisition

Live vs. Static Databases

$-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

Live "Organic"Data

Static Data

$Cha-Ching! $

89 campaigns spanning a one year period (April 2012 – March 2013) for 3 major automotive brands

Live Data – Retargeting Study

Vertical: AutomotiveCampaign Type: RetargetingCampaign Goal: CPA

• Behavioural targeted campaign with increasing weight shifting towards “live data” retargeting

Retargeted Users and Cost per Acquisition

Acquisition (conversion) is measured by 3 KPI’s:requesting a meetingasking for a quote virtually creating a custom product

Retargeted Site Stickiness

Percentage of visits to relevant pages (conversion pages as defined by customer) as a percentage of homepage visits

To Buy or To Build? That’s the big question with data!

Live Data is by far the richest source of information for your brand and client.

On average, Live Data is 47% more cost effective* when judging performance within campaigns.

The downside is that reach can be limited when only looking at Live Data.

Our recommendation is to use a combination of Live Data, Contextual Data and other relevant 1st party data, thereby reaching both potential new and current customers.

Live Data vs. Static Data

1st Party vs. 3rd Party Data

Every company defines data differently

1st Party vs. 3rd Party Data

1st party data

…they even know who has the remote in their hand.

$$

Other companies request personally identifiable information when signing up for a free email account or free services …this is 1st party data

1st Party vs. 3rd Party Data

$$Make sure on our push for privacy – we understand the landscape.

CLICK FRAUDDeath of the Click

In a 2012 study entitled “Evaluating and Optimizing Online Advertising: Forget the Click, But There are Good Proxies”researchers found that:

"Generally, clicking does not correlate well with purchasing.…few clicks lead to actual product purchases and that most clicks are generated by a very small subset of browsers. …clicks are unsuitable as a criterion for designing and optimizing targeting strategies…Targeting models built on clicks do a poor job of identifying browsers who later will purchase”

Click Fraud (Death of the Click)

*Evaluating and Optimizing Online Advertising: Forget the Click, But There are Good Proxies Brian Dalessandro, Rod Hook, Claudia Perlich, m6d research and Foster Provost, NYU/Stern School of Business and m6d research

Click fraud comes in many forms; but these issues can affect all online advertising campaigns!

Bots generated by a fraudulent website

Layered ad units (companies that put 40 ad units in one ad spot and then place them in reputable web sites)

Incentivized click schemes (some benefit to a user for clicking on an ad)

Malware on a real user’s computer

Some pop-up blocking software (attempts to click on all ads on a page while it loads to test for pop-ups)

Click Fraud (Death of the Click)

Optimize on CPA vs CPC or CTR CPC algorithms can actually target ads towards click fraud activity

Employ brand safe rules (next section)Include Targeting Majority of fraudulent clicks are found in campaigns without additional targeting criteria (mass reach /RON)Demand Transparency

Click Fraud – Prevention

Campaign required large reach at low cost, while targeting smaller markets like the Prairies.

When comparing vendors on hits to the landing page (ie – clicks), eyeDemand performance questionable.

However when we analyze the results on the relevant conversion pages (dealer located or test drive booked following car build) eyeDemand becomes the vendor with the highest conversion rate!

Vertical: AutomotiveCampaign Type: PerformanceCampaign Goal: CPA

Click Through Rate Conversion Rate - Relevant Action

Click Fraud (Death of the Click) – Case Study

Total Relevant Conversions

Click Through Rate Cost Per Click

Cost Per Acquisition

Consoles & Proprietary Bidders – Death of the Click

Client:

Agency: Gaggi MediaVertical: EntertainmentCampaign Type: PerformanceCampaign Goal: CPA

Both systems employed segment targeting, site retargeting & RON.

Console impressions resulted in 300% better performance when analyzing CTR and CPC metrics.

But, the CPA from the Private Bidder was 150% lower!

BRAND SAFETY

With access to so much inventory, how do you control the setting in which your message is displayed?

Brand Safety

1 Use exchange console filters

CONSOLEFILTER

Brand Safety

2 Purchase additional verification services

Brand Safety

3 Use ad-blocking

Brand Safety

CONSOLEFILTER

4 Use automated 3rd Party filters for content

Brand Safety

5 Employ a domain blacklist

DAILY

SSP 1 SSP 2 SSP 3 SSP 4

Brand Safety

6 Serve only to a dedicated whitelist

Brand Safety

7Beware of personal biases when creating blocking or whitelisting domains

Push for transparency

Employ multiple brand safety methods depending on campaign goals

Work with an expert in the field that can adequately monitor exchanges & audit content to ensure optimal brand results

Measuring success only by click must die!

Summary

Bottom line: It’s tricky! You can’t afford to wait to find that an algorithm has failed!