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7 Deadly Sins of Programmatic | Gil Snir, Benchmarketing | GC Sydney 2016
Gil Snir,
CMO @ Benchmarketing
7 Deadly Sins of Programmatic
7 Deadly Sins of Programmatic | Gil Snir, Benchmarketing | GC Sydney 2016
Viewability
• Viewability is a unstandardised and
problematic metric
• Google defines viewability as 50% of
the pixels of an ad loading within your
browser for a continuous 1 second
• Video standards are dependent on the
publishers
• Youtube = 30secs
• FB = 3secs
• Snapchat = 1sec
7 Deadly Sins of Programmatic | Gil Snir, Benchmarketing | GC Sydney 2016
7 Deadly Sins of Programmatic | Gil Snir, Benchmarketing | GC Sydney 2016
If an ad loads in a browser and no one is
there to notice it, does it really matter?
Fear of Ad Fraud + scary sites
• Ad fraud primarily effect proxy
metrics such as impressions
• Optimising to goals beyond
impressions mitigates the impact
of ad fraud
• Default features also reduce the
risk of ad fraud
• Whitelisting
• Blacklisting
• 3rd Party Tools
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%
Aviva.co.uk (Zenith Optimedia)
Vodafone.co.uk (OMD)
Cathaypacific.com (UM)
Tiffany.com (WPP)
Display Traffic Share
Advertiser
Traffic Contribution of GDN
Others GDN
*Data sourced from Similarweb on 17/5/16
• GDN scored lowest in brand safety
based on factors around whitelisting,
black listing, site blocking, custom
targeting and negative news adjacency.
• Yet, it is the most commonly used RTB
source for the Agency Trading Desks
• Main way to mitigate this is to utilise
multiple sources and verify which yields
the most brand safe placements/traffic
Time based campaigns only
Time-based programmatic
• Marketing campaigns are
traditionally based on time
intervals and seasonality
• Stopping a campaign
disrupts optimisation
• It results in gaps in
analysis and false blame
2.5
2.7
2.9
3.1
3.3
3.5
3.7
3.9
4.1
4.3
4.5
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CPA
Time-based Performance
Campaign 1
Campaign 2
Campaign 3
?
• Time
between
campaigns
results in loss
of learnings
• Results can
be blamed on
unknown
factors
• Limits
accountability
• Staying in market
improves
performance
• Key is to establish
an Always-on
baseline and run
time-based
campaigns over
that baseline
2.5
2.7
2.9
3.1
3.3
3.5
3.7
3.9
4.1
4.3
4.5
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CPA
Time-based Performance
Campaign 1
Campaign 2
Campaign 3
Establish a baseline
Not disclosing Attribution Models
0
100
200
300
400
500
600
700
800
900
1000
PC 1 PC 7 PC 30 PV 1 PV 7 PV 30
Sales vs Attribution Windows
Sales
The Mystery of Attribution
• Too many marketers
don’t know the attribution
model used in their
reports
• Graph shows real data
from a national e-
commerce advertiser
• Important to understand
the proportion of
conversion coming
through via a click-thru
window versus a view-
thru window
• Not disclosing the
attribution model and
window is misleading
and deceptive
Error Magnitude
The further you get from the buyers true goal,
the greater the error (and it’s cost)
Click
ROMI
View
Error
Acquisition
Reporting magic Tricks
CPM CPC Clicks Conversions
$3.20 $3.84 1570 62
$1.80 $2.16 1874 54
$2.40 $2.88 1953 71
$1.20 $1.44 2044 97
$3.90 $4.68 1453 57
$4.10 $4.92 1653 48
$3.20 $3.84 1754 66
$2.40 $2.88 1955 74
RED FLAGS
• Totals only (missing
columns)
• Method used to
hide the
‘performance’ of the
campaign and
eliminate the
possibility for
benchmarking
against industry
standards
0
20
40
60
80
100
120
1 2 3 4 5 6 7 8
Conversions
Conversions
RED FLAGS
• Graphs only (no
trends) makes it
difficult to develop
findings if no
analysis is given for
the peaks and
troughs throughout
the campaigns
0
20
40
60
80
100
120
1 2 3 4 5 6 7 8
Conversions
Conversions
RED FLAGS
• Selective
timeframes and
hiding negatives
• Results always
looking great is
also a sign that lack
of transparency and
obfuscation of data
could be occurring
• Blocking the ability
to see raw data or
edit excel reports is
another big red flag
✔
Mandates and conflict of interest
• Many agency groups
have a mandate to only
use their in-house
trading desk
• This creates a conflict of
interest and agencies fail
to act within the best
interests of the
advertiser
• Advertisers have the
right to know and control
where their ad dollars
are spent
Setting the bar
Low
• Major problem in the
industry around agencies
intentionally limiting
expectations
• Advertisers should avoid
proxy metrics and focus
on the goals that matter
• Programmatic
advertising can be
accountable to true
performance goals such
as engagement, leads,
sales and revenue.
Seller vs Buyer
• Seller
• Cost per Thousand
Impressions(CPM/RPM)
• Revenue per Page
• Revenue per Visitor
• Cost per Click (CPC)
• Buyer
• Cost per Click (CPC)
• Cost per Action (CPA)
• Lifetime Value (LTV)
• Return on Marketing
Investment (ROMI)
CPM CPC CPA
STOMP
S
T
O
M
P
trategy
echnology
perations
edia
rice
Strategy
• Do your business goals align with your campaign
goals?
• Is your strategy talking to customers at different
mindsets and not just awareness or acquisition
only?
• Is your media plan adaptive or static? How does it
change based on interactions and performance?
Technology
• What technology is enabling the campaign to
succeed?
• Is the tech proprietary to the vendor/agency or is it
leased?
• What is the cost of ownership?
• What was the decision in choosing this
technology?
• How does it add value to the success of the
campaign?
Operations
• Do you know the structure of the team delivering
the programmatic solution?
• Do you deal with an account manager only or do
you have interactions with other roles such as
strategist, campaign manager and digital/tag
manager?
• How long have they been in this space?
• What other solutions do they manage as this will
highlight whether they are a generalist or
specialist?
Media
• What channels are you utilising in your media
strategy? Are these channels the most beneficial to
achieving your business goals?
• What sources are chosen to deliver these
channels? Why were they chosen? Are they agile
and adaptive based on performance?
• What are the triggers for why new sources are
used? How often does this happen?
Price
• What pricing model is the media based on? Is it
dynamic or flat? Are their limits to the budget and
bidding price?
• What goals is the price optimising towards?
• How much are you paying your provider? What is
this based on, hours or %?
• What value are you getting in return?
7 Deadly Sins of Programmatic | Gil Snir, Benchmarketing | GC Sydney 2016
7 Deadly Sins of Programmatic | Gil Snir, Benchmarketing | GC Sydney 2016

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7 Deadly Sins of Programmatic | Gil Snir, Benchmarketing | GC Sydney 2016

  • 2. Gil Snir, CMO @ Benchmarketing 7 Deadly Sins of Programmatic
  • 4. Viewability • Viewability is a unstandardised and problematic metric • Google defines viewability as 50% of the pixels of an ad loading within your browser for a continuous 1 second • Video standards are dependent on the publishers • Youtube = 30secs • FB = 3secs • Snapchat = 1sec
  • 7. If an ad loads in a browser and no one is there to notice it, does it really matter?
  • 8. Fear of Ad Fraud + scary sites • Ad fraud primarily effect proxy metrics such as impressions • Optimising to goals beyond impressions mitigates the impact of ad fraud • Default features also reduce the risk of ad fraud • Whitelisting • Blacklisting • 3rd Party Tools
  • 9. 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% Aviva.co.uk (Zenith Optimedia) Vodafone.co.uk (OMD) Cathaypacific.com (UM) Tiffany.com (WPP) Display Traffic Share Advertiser Traffic Contribution of GDN Others GDN *Data sourced from Similarweb on 17/5/16 • GDN scored lowest in brand safety based on factors around whitelisting, black listing, site blocking, custom targeting and negative news adjacency. • Yet, it is the most commonly used RTB source for the Agency Trading Desks • Main way to mitigate this is to utilise multiple sources and verify which yields the most brand safe placements/traffic
  • 10. Time based campaigns only Time-based programmatic • Marketing campaigns are traditionally based on time intervals and seasonality • Stopping a campaign disrupts optimisation • It results in gaps in analysis and false blame
  • 11. 2.5 2.7 2.9 3.1 3.3 3.5 3.7 3.9 4.1 4.3 4.5 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CPA Time-based Performance Campaign 1 Campaign 2 Campaign 3 ? • Time between campaigns results in loss of learnings • Results can be blamed on unknown factors • Limits accountability • Staying in market improves performance • Key is to establish an Always-on baseline and run time-based campaigns over that baseline
  • 12. 2.5 2.7 2.9 3.1 3.3 3.5 3.7 3.9 4.1 4.3 4.5 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CPA Time-based Performance Campaign 1 Campaign 2 Campaign 3 Establish a baseline
  • 14. 0 100 200 300 400 500 600 700 800 900 1000 PC 1 PC 7 PC 30 PV 1 PV 7 PV 30 Sales vs Attribution Windows Sales The Mystery of Attribution • Too many marketers don’t know the attribution model used in their reports • Graph shows real data from a national e- commerce advertiser • Important to understand the proportion of conversion coming through via a click-thru window versus a view- thru window • Not disclosing the attribution model and window is misleading and deceptive
  • 15. Error Magnitude The further you get from the buyers true goal, the greater the error (and it’s cost) Click ROMI View Error Acquisition
  • 17. CPM CPC Clicks Conversions $3.20 $3.84 1570 62 $1.80 $2.16 1874 54 $2.40 $2.88 1953 71 $1.20 $1.44 2044 97 $3.90 $4.68 1453 57 $4.10 $4.92 1653 48 $3.20 $3.84 1754 66 $2.40 $2.88 1955 74 RED FLAGS • Totals only (missing columns) • Method used to hide the ‘performance’ of the campaign and eliminate the possibility for benchmarking against industry standards
  • 18. 0 20 40 60 80 100 120 1 2 3 4 5 6 7 8 Conversions Conversions RED FLAGS • Graphs only (no trends) makes it difficult to develop findings if no analysis is given for the peaks and troughs throughout the campaigns
  • 19. 0 20 40 60 80 100 120 1 2 3 4 5 6 7 8 Conversions Conversions RED FLAGS • Selective timeframes and hiding negatives • Results always looking great is also a sign that lack of transparency and obfuscation of data could be occurring • Blocking the ability to see raw data or edit excel reports is another big red flag ✔
  • 20. Mandates and conflict of interest • Many agency groups have a mandate to only use their in-house trading desk • This creates a conflict of interest and agencies fail to act within the best interests of the advertiser • Advertisers have the right to know and control where their ad dollars are spent
  • 21. Setting the bar Low • Major problem in the industry around agencies intentionally limiting expectations • Advertisers should avoid proxy metrics and focus on the goals that matter • Programmatic advertising can be accountable to true performance goals such as engagement, leads, sales and revenue.
  • 22. Seller vs Buyer • Seller • Cost per Thousand Impressions(CPM/RPM) • Revenue per Page • Revenue per Visitor • Cost per Click (CPC) • Buyer • Cost per Click (CPC) • Cost per Action (CPA) • Lifetime Value (LTV) • Return on Marketing Investment (ROMI) CPM CPC CPA
  • 23. STOMP
  • 25. Strategy • Do your business goals align with your campaign goals? • Is your strategy talking to customers at different mindsets and not just awareness or acquisition only? • Is your media plan adaptive or static? How does it change based on interactions and performance?
  • 26. Technology • What technology is enabling the campaign to succeed? • Is the tech proprietary to the vendor/agency or is it leased? • What is the cost of ownership? • What was the decision in choosing this technology? • How does it add value to the success of the campaign?
  • 27. Operations • Do you know the structure of the team delivering the programmatic solution? • Do you deal with an account manager only or do you have interactions with other roles such as strategist, campaign manager and digital/tag manager? • How long have they been in this space? • What other solutions do they manage as this will highlight whether they are a generalist or specialist?
  • 28. Media • What channels are you utilising in your media strategy? Are these channels the most beneficial to achieving your business goals? • What sources are chosen to deliver these channels? Why were they chosen? Are they agile and adaptive based on performance? • What are the triggers for why new sources are used? How often does this happen?
  • 29. Price • What pricing model is the media based on? Is it dynamic or flat? Are their limits to the budget and bidding price? • What goals is the price optimising towards? • How much are you paying your provider? What is this based on, hours or %? • What value are you getting in return?