Brand Marketing via programmatic buying

or

How to have your cake & eat it tooHow to have your cake & eat it too

Bob Arnold

Associate Director Global Digital Strategy

@BobbyArnold

50%of digital media buyers list audience

targeting capabilities as one of the

most important things they look for

in display ad buys

30% list low CPMs

Forrester Research, “The State of the Digital Media Buyer, July 2011

30% list low CPMs

3

Have your cake…

Maximize cost efficiencyEat it too…

As effective as other buys

First a little background…

Publisher Direct Website

Website 1

“Traditional” way of digital media buying…

4

Ad NetworkAd Network

Ad Network

Website 1

Website 2

Website 3

Blind 1

Blind 2

Blind 3

Programmatic buying

Sends

request

Web Site

Solicits bids

Demand Side

Platform (DSP)

Goes online

Ad

Exchange

Automated bid price optimization of media

5

Web Site (DSP)

Places bidAwards bid

Brief

Sees the ad

Exchange

Why is Kellogg's investing

in programmatic buying?

Question:Can programmatic buying be a Can programmatic buying be a

more cost-efficient and effective

means of buying?

Answer:Yes, 5X+ improvement in ROI

The Programmatic Branding Recipe

• The right strategy &

targetingtargeting

• The right measurement

• Fine tuning

The Right Strategy & Targeting

Right Message Right Consumer Right Moment

The Right Measurement

Short Term Success Metrics:

Drive campaigns to hit

audience on-target,

Long Term Success Metrics:

Drive demonstrable brand

lift and brand effectivenessaudience on-target,

on-screen viewability

and frequency metrics

lift and brand effectiveness

Fine Tuning

Use Data to Keep the Recipe

Fresh & Tasty

• Management of data is key • Management of data is key

• Determine 1st and 3rd-party data best

practices for the brand

• Drive performance improvements

How We Had Our Cake...

71.00%72.00%

% of Ads "In View"

Getting Ads to the Right Audience

+134%

90.00%

100.00%

% Increase of On-Target Impressions

vs. Non-Programmatic Baseline

64.00%

68.00%

60.00%

62.00%

64.00%

66.00%

68.00%

70.00%

Brand 1 (Q1) Brand 2 (Q2) Brand 3 (Q2-Q3)

+105%

+88%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Brand 1 (Q1) Brand 2 (Q2) Brand 3 (Q2-Q3)

How We Had Our Cake...

1.00

0.90

1.00

Effective CPM*

Efficient Rates for Audience Views

0.71

0.48

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

Brand 1 (Q1) Brand 2 (Q2) Brand 3 (Q2-Q3)

*Effective CPM calculated using overall CPM, on-target impressions, and % of ads in view. Values are indexed.

... and Ate it tooAnd Ate it Too…

Brand 1 ROI

5X

Brand 2 ROI

6X

Improved ROI from Two Market Mix Models

Year 1 Year 2 1H Year 3

ROI2X

5X

Year 1 Year 2 1H Year 3

ROI

3X

6X

What's Next for Programmatic?

• More Inventory

• More Formats

• Better Measurement• Better Measurement

• Real-time Signals

Thanks! Questions?

@BobbyArnold