Konrad Feldman - Big Data and The Future of Advertising and Marketing - SIC2012

Seattle Interactive Conference 2012. 1

Big Data and the Future of Advertising & Marketing

Konrad Feldman

10/30/12

2

Agenda• Introduction• Real-Time Advertising• Big Data in Advertising• Insights & Implications

10/30/12 Seattle Interactive Conference 2012.

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MEASUREMENT + ADVERTISINGQuantcast


4

Measurement• World’s best audience

measurement service• Groundbreaking direct

measurement & insights• For sites, publishers,

networks and advertisers of any size

• 100% free for everyone10/30/12 Seattle Interactive Conference 2012.

Seattle Interactive Conference 2012. 510/30/12

6

Advertising• Dynamic real-time

advertising• RTB integrated

performance advertising• Brand advertising

integrated with premium publishers & networks



DISPLAY ADVERTISING GOES REAL-TIMEAdvertising Landscape

10/30/12

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Display Reemerges to Overtake Search


Display passes Search


Real-Time Bidding – Display’s Catalyst.Real-Time rationalizes display. RTB’s rapid rise.

2010 2011 2012 2013 2014 2015$0

$1,000,000,000

$2,000,000,000

$3,000,000,000

$4,000,000,000

$5,000,000,000

400000000

1100000000

2000000000

2900000000

3900000000

5100000000

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RTB % of Display market

Billi

ons


MEDIA IS DATAReal-Time Bidding

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Consumer’s Browser Ad Space Ad Exchange

100s – 1000sof Potential Buyers

The Exchange sends aBid Request, with information regarding the individual ad impression, to all Qualifying Exchange Participants.

0:00:00.000

Exchange sends bid request to potential buyers 1 – 1000+ Advertiser Campaigns

Exchange sends bid request to potential buyers 1 – 1000+ Advertiser Campaigns

0:00:00.025

What are the interests of this user?

Have they been shown impressions beforefor this campaign?

How much do they consume on the Internet?

Where is this user in the world?

Who is the publisher and whatis the context of this site and page?

How has this campaign performed onthis site in the past?

What device is the user browsing on?

What’s the time of day for the user?

Is the impression above or below the fold?

0:00:00.0450:00:00.0500:00:00.0300:00:00.0350:00:00.040

DetermineBid Value for

Highest Rated

0:00:00.060What are the interests of this user?

Have they been shown impressions beforefor this campaign?

How much do they consume on the Internet?

Where is this user in the world?

Who is the publisher and whatis the context of this site and page?

How has this campaign performed onthis site in the past?

What device is the user browsing on?

What’s the time of day for the user?

Is the impression above or below the fold?

0:00:00.100

Bidding RaceBids are submitted to the Exchange by all participants.

Even if the impression is not desired, $0.00 is bid to indicate buyer’s capabilityto respond.

AGE OF THE MACHINES


BIG DATA TO THE FORESupporting Artificial Intelligence

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Big Data’s Innovation Cycle


• Big data tends to follow an iterative cycle within organizations

• These cycles are accelerating

Data

AnalysisCapability

AnalystsData Use

Capacity


Quantcast Data Processing ArchitectureAnalyticsPixel Delivery Realtime Bidding Website

Ad-hoc QueriesRealtime Decisioning Batch Processing

Quantcast owned hardware

RDBMSs

Keebler Redis

Storm

Realtime Engine

Quantcast File System

Turbo MapReduceHadoop QuantSort

SawzallRelational MapReduce

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RDBMSs

Keebler Redis

Storm

Realtime Engine




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RDBMSs

Keebler Redis

Storm

Realtime Engine


Turbo MapReduceHadoop 0.15 QuantSort


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RDBMSs

Keebler Redis

Storm

Realtime Engine




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BY THE NUMBERSBig Data

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DataReal-Time Ingest

500,000+ / sec.

750+ Billion / mo.

Massive Transaction Volume 40+ TB / day

Big Raw Data

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ComputersReal Estate

15+ Data Centers

40+ Racks

Largest Data Center 1,000+ Servers

Machines

10/30/12


Data ProcessingDaily Processing

Jun-09

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Mar-12

Jun-12

Sep-12

0

5

10

15

20

25

30

25+Petabytes

Scaling Petabytes per day

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People who buys shoes onlineMore likely to visit...Site Score

runnersworld.com

halfmarathons.net

athlinks.com

runningintheusa.com

flotrack.org

running.about.com

letsrun.com

eatliverun.com

More likely affiliation...Affiliation Score

Democrat

Libertarian

Independent

Republican

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Advertising Insights: Clickers vs. Converters• 85% of clicks come from just

8% of internet users• Converters have a distinct

profile, which is nothing like the clickers

• Most converters don’t click ads. They view them

• Clickers are not the target customer

Converters (over-index high income)

Clickers (over-index low income)

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Traditional DisplayImpressions Bought in AggregatePriced as a WholeFocus: CostKey Skill: Negotiation

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-

10

20

30

40

50

CPM

CP

A


Real-Time is DifferentImpressions bought IndividuallyPriced IndividuallyFocus: ValueKey skill: Science

Example: Travel campaign

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-

10

20

30

40

50

CPM

CP

A


Consistent Feature of RTB CampaignsMedia Subscription Travel

-

25

50

75

100

125

CPM

CP

A

$0.0

0

$0.7

5

$1.5

0

$2.2

5

$3.0

0

$3.7

5

$4.5

0

$5.2

5

$6.0

0

$6.7

5

$7.5

0

$8.2

5

$9.0

0

$9.7

5 -

1

2

3

4

CPM

CP

A10/30/12


Implications for Advertising and Marketing

• Data Science over Human Hypothesis– People guide, computers execute– Media buying must change to accommodate

• Marketers, BYOD (Bring Your Own Data)

– Leverage website and CRM assets• Publishers, get data smart

10/30/12

Konrad [email protected]

Konrad Feldman - Big Data and The Future of Advertising and Marketing - SIC2012

Technology

Transcript of Konrad Feldman - Big Data and The Future of Advertising and Marketing - SIC2012