Keynote: using the digital marketing ecosystem for digital monetization - Roland Siebelink - Rocket...

Keynote Presentation: Using the digital marketing ecosystem for digital monetization

ROLAND SIEBELINK COLOMBIA 3.0 CONFERENCE | BOGOTÁ | JULY 30TH 2014

2/40 @cyberroland #col30

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Digital marketing provides the best opportunity for digital monetization of both paid and free products

Large opportunity in digital marketing

Buying/selling

automation

Cheaper content

production

Shift in viewing habits

SUMMARY OF THE PRESENTATION



Structure of the presentation

Much of digital monetization is digital marketing

Titel

Advertisers can reach many more prospects more efficiently

Publishers can sell much more ad space more efficiently

Programmatic lets innovative players leapfrog their competition



MAJORITY OF MEDIA TIME ONLINE AD SPENDING SHIFTING TO ONLINE

Digital media are already capturing the largest share of user attention, and ad spending is catching up.

Media hours/consumer/day, globally

38.6%

29.2%

16.6%

8.5% 7.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011 2012 2013 2014 2015 2016


Other Radio

Print

Online

TV


Much of Digital Monetization is Digital Marketing




Marketing is at the basis of monetization of any product—whether digital or not KEY ELEMENTS OF THE MARKETING ECOSYSTEM


Advertising Agencies

Consumers Product Vendors Publishers/

Retailers

content

attention

ad spend

audiences

sales proposition

paying customers


attention

content

Consumers Publishers/Retailers

Product Vendors

paying customers

Product vendors use advertising to show their sales proposition to more prospective paying customers. KEY ELEMENTS OF THE MARKETING ECOSYSTEM: PRODUCT VENDOR PERSPECTIVE



ad spend

audiences

sales proposition


attention

content

Consumers Product Vendors

paying customers

Digital content producers build audiences with free content to earn income from digital advertising. KEY ELEMENTS OF THE MARKETING ECOSYSTEM: PUBLISHER PERSPECTIVE



ad spend

audiences

sales proposition

Publishers/Retailers


Consumer’s attention shifting to online media creates a massive growth opportunity for digital advertising

0% 20% 40% 60% 80%

100%

% of ad spending

% of consumer attention

TV 38%

TV 23%

Online 28%

Online 54%

Print 17%

Print 5%

Radio 9%

Radio 11%

Other 7%

Other 7%

CONSUMER MEDIA ATTENTION SHARE VS SHARE OF ADVERTISING SPENDING



Structure of the Presentation

Digital marketing is the major digital monetization opportunity

Titel

Digital Marketing For Advertisers

Digital Marketing for Content Producers

The Programmatic Momentum



Digital marketing offers advertisers exceptional power and cost savings




attention

content

Consumers Publishers/Retailers

Product Vendors

paying customers

Product vendors use advertising to show their sales proposition to more prospective paying customers. KEY ELEMENTS OF THE MARKETING ECOSYSTEM: PRODUCT VENDOR PERSPECTIVE



ad spend

audiences

sales proposition


results

interest

Products sold online are first candidates for digital monetization—but all product vendors can benefit. PRODUCT VENDOR PERSPECTIVE, EXAMPLE #1: ONLINE RETAIL BANK


Consumers Online Bank search

engine

ad spend

clicks

“open an account”

funds flowing in


top 10

installs

App developers rely on app stores for quality control and fulfillment but also for marketing their product. PRODUCT VENDOR PERSPECTIVE, EXAMPLE #2: MOBILE GAME DEVELOPER


Consumers Game Developerr App store

fees

fulfillment

“no more boredom”

revenues


EXPLOSION OF DIGITAL CONTENT HYPERPRECISE TARGETING

The explosion of digital content properties enables advertising precisely aimed at ideal prospects.


100 million Web sites and apps

60 billion daily

individual ad spaces worldwide

1 billion anonymized

consumer profiles

worldwide

Geographic Psychographics Lifestyle

Interests/Hobbies Past Purchase Social Influencers In-Market

Demographic

Channel Device DMA-City-Zip

Browser Ad Size Time of Day Language

Context


Full measurabilty and instant changes allow for constant optimization of thev value proposition.



Real-time bidding helps advertisers unbundle bulk audiences and find attractive prospects directly.


DEMOGRAPHIC A

BEHAVIORAL SEGMENT B

CONTENT CATEGORY C

Bulk buying in advance

Data

Campaign target

Real-time bid requests

Individual buying in real time


Amazon Ebay

Efficient digital distribution platforms enable vendors of all sizes to compete on a level playing field. DISTRIBUTION PLATFORMS OFFER VENDORS MORE MONETIZATION OPTIONS


one shop

loyalty Consumers Product

Vendor

fees

fulfillment

“delivered to you”

revenues




Titel

Advertisers can reach many more prospects more efficiently Digital Marketing for

Content Producers




Digital represents new monetization opportunities for content producers




attention

content

Consumers Product Vendors

paying customers

Digital content producers build audiences with free content to earn income from digital advertising. KEY ELEMENTS OF THE MARKETING ECOSYSTEM: PUBLISHER PERSPECTIVE



ad spend

audiences

sales proposition

Publishers/Retailers


Content can be monetized if the audience it produces is an interesting target group to some product vendor. PUBLISHER PERSPECTIVE EXAMPLE #1: BLOG AIMED AT FREQUENT TRAVELLERS


Travellers Airlines Hotels

blog posts

attention

referral fees

audience

attract best prospects

increased spending

Blogger


Search engines and social networks are publishers too, they just produce their content in a different way. PUBLISHER PERSPECTIVE EXAMPLE #2: SOCIAL NETWORK


Consumers Adver- tisers

social content

engagement

ad spending

views/clicks

brand exposure

Increased preference

Social network


Distributed global niche audiences have increased the viability of the content “long tail”


100 1 2 3 4 5 6 7 8 9

10

0

1

2

3

4

5

6

7

8

9

# of audiences

Avera

ge au

dienc

e size

1970 cost 2010 cost


The cost to produce and edit compelling content has fallen steeply, so that ad space can be added cheaply.


Cheap tools

Offshore producers

“Work for reference”

Cheap to add content

Content/ ad space explosion


Automated sell-side platforms can help publishers maximize net yields across multiple sales channels.

Direct premium sale

No →

Yes

Network sale

No →

Yes

On-exchange RTB sale

Private Exchange Open Exchange

PUBLISHERS’ BEST PRACTICE: REAL-TIME MULTI-CHANNEL AD SALES STRATEGY


Bulk of sales without in-house sales force

50 ms 100 ms 150 ms 200 ms


EXAMPLE PUBLISHER-OWNED DATA BUNDLED OR UNBUNDLED

Publishers can also monetize the data they gather on their audiences—bundled with ad space or separate.

Custom targeted audiences

Sell segments to data brokers


Con-sumers

Gender Income Kids in household

Behavior Coupons Contests

Site searches

Cam-paigns

Past successes Past converters





Titel





The Programmatic revolution drives ever more efficiencies into digital advertising.




Programmatic advertising drives efficiency even further in that computers make all buying decisions. CONTRAST BETWEEN TRADITIONAL ADVERTISING AND PROGRAMMATIC


Programmatic buying

Bidding on individual ad impressions

In real time For the opportunity…

To show one specific message

To one specific consumer

In one specific context

Traditional buying

Buying collective ad placements In advance For the

opportunity…

To show one generic message

To a group of consumers

Along a generic content category


Real-time bidding platforms are now auctioning over 30 billion impressions per month in Latin America


Programmatic reach in Central America: 56%

Monthly unique viewers: 250 million

Monthly bid requests: 30 billion

Programmatic Reach:

Exchange Partners

Programmatic reach in South America: 64%


The world’s largest advertisers are recognizing the superior ROAS of programmatic advertising.


Advertising Age Leading National Advertisers

80+/100 Fortune 100 Companies 55+/100

Represents advertisers and brands who have spent with Rocket Fuel trailing 12mo ending 3/30/2014

FINANCE RETAIL TRAVEL TELECOM / CABLE

AUTO

DINING / OTHER EDUCATION

CPG ENTERTAINMENT

TECHNOLOGY GOVERNMENT/NONPROFIT

HEALTH & BEAUTY

AGENCIES

$1M+ lifetime customers 96+


Programmatic’s efficiencies are already driving the majority of non-direct inventory buys in the US. U.S. RTB-BASED INDIRECT AD SALES AS A SHARE OF TOTAL INDIRECT AD SALES


12% $396 M

29% $986 M

43% $1.95 B

57% $3.36 B

68% $4.56 B

76% $5.97 B

78% $7.42 B

>80% $8.49 B

10%

20%

30%

40%

50%

60%

70%

80%

2010 2011 2012 2013 2014 2015 2016 2017


The variety of platforms and service providers makes it easy for advertisers and publishers to get started. KEY PLAYERS IN THE PROGRAMMATIC ADVERTISING ECOSYSTEM


Advertisers (Digital)


Agency Trading Desks

Demand Side

Platforms Ad Exchanges

Sales Side Platforms

Ad Networks

Publishers Consumers





Titel





Conclusion

DIGITAL MONETIZATION ECOSYSTEM | COLOMBIA 3.0 2014 ∑





Conclusion of the Presentation

Titel





Time to answer questions—on Twitter and in the room


Desert analogy

Keynote: using the digital marketing ecosystem for digital monetization - Roland Siebelink - Rocket...

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