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Coming Out on Top of the Digital
Marketing Ecosystem
                                                 Mark Connolly
                                                       MD, Europe
                                   eShow Lisbon, October 10th 2012
The World Continues to Digitise…
Reinventing of Books




3
Reinventing of Movies




4
Reinventing of Music




5
Reinventing of the Phone




6
Reinventing of Information




7
Reinventing of Television




8
Reinventing of Data




9
“The next frontier for innovation,
             competition, and productivity is data.”
                                                - McKinsey




10 Source: McKinsey; Winterberry
The Importance of Intelligent Data
What is a DMP?




     Display   RTB        Search   Social       Video   Mobile




                     Data Management Platform
Data Management Platform Defined

                    Data Management Platform

             What It Is                    What It Does

     Unified data platform for      Creates a new knowledge
         digital marketing                 ecosystem


    Data – integration, storage    Optimization – greater control
     and management                  over results

    Insight – across all           Market Making – right ad to
     performance drivers             right customer

    Management – across all        Valuation – linkage to
     campaign levers                 business metrics


                 To power new go-to-market models
What is a DMP?




                 Data Management Platform
Why is this important for marketers?

     Awareness                  Social / Display / PR /
                                Gaming/ Home Page
                                Take Overs




      Research                    Search / Social




    Purchase/Trial               Search / Display
Advantages of a Data Management Platform
 Prove the value of cross-channel activity

 Understand and enhance a user’s online experience

 Create strong, tactical real time bidding campaigns

 Eliminate audience buying inefficiencies

 Establish the value of branding exercises

 Appreciate performance from top
to bottom of the funnel

 Segment & target audiences based
on ad, campaign, media exposures,
etc.
16
Rejoining Media Disciplines
The Media Agency Approach is Broken

 Media buying is no longer the sole purview of media agencies, and clients have many more
 choices when selecting partners for optimized digital media management.
 (…)
 Agencies talk the talk, but most don’t walk the walk. Most agencies are still reliant on
 outmoded business models *…+ and practices such as hiring inexpensive, inexperienced media
 buyers rather than high-cost analytics and optimization gurus.
 (…)
 And since many agency pitches are starting to sound the same, it shouldn’t surprise anyone that
 marketers often defer to procurement departments to drive down agency compensation to the
 lowest possible rate. And similarly, marketers shouldn’t be shocked to receive the lowest common
 denominator of service, and results, in return.



                 Forrester Report, Selecting Digital Media Buying Partners, June 2012
Clients want Integration of Creative, Media and
Technology
Who are the Media Innovation Group?

  • Challenges facing agencies
  • Pressures to provide more due to economic situation

  • Over 15 years old with $100m technology investment
  • Wholly owned division of 24/7 Media
  • WPP owned company
  • Proprietary technology for all digital data solutions
  • Expertise in media technology, buying and optimisation
  • Working with ad agencies, creative agencies and clients
  direct on a local and global basis
MIG Global




                            London
                              Paris
                                                Beijing
Los Angeles      New York

                                      Mumbai



                                           Singapore



                       Sao Paulo
MIG Europe


  • Main EU office in London
  •35 staff in the EU with full time support on a global level
  • 60% of our business is European
  • Currently serving ads in most EU countries
  • Working closely with regulatory services on cookie laws
Some of our European Clients
MIG Technology

                   INTEGRATED ANALYTICS
                      AND REPORTING
         Verification      3rd Party Data      3rd Party Research   Creative Optimization




       Display             RTB              Search         Social         Video             Mobile



                        3rd Party Ad Serving    CRM Data      Network Aggregation




          DATA MANAGEMENT PLATFORM
                 240 BILLION EVENTS TRACKED IN 2011
Digital Marketing Landscape Today                                               :
Too Much of a Good Thing?
                             Ad Networks                   Data Aggregators & Suppliers




     Ad Exchanges and SSPs                    Ad Servers                                  DSPs




                      Creative Optimization                 Ad Verification and Privacy




25
Media Innovation Group Solutions
Mastering Digital Markets for Marketers


                      Single Point of Access



                   One-Team Approach



                  Analytics-Driven Consulting



                       Technology



27
Reporting and analytics

                                     Data Management Platform




Attribution Reports                    Audience Reporting         Look-alike Reporting
Who did what, when and how             3rd party data profiling   How do we scale campaigns?
(horizontal vs vertical solutions)
Temporal Effects // Day of the Week

                                 Impressions and Conversion Rate Index by Day of Week
                    70,000,000                                                                                                    140
                                                        Impressions          Conversion Rate Index
                    60,000,000
                                     A.M.                                                             P.M.                        120




                                                                                                                                         Conversion Rate Index
Impressions




                    50,000,000                                                                                                    100


                    40,000,000                                                                                                    80


                    30,000,000                                                                                                    60
              100
                    20,000,000                                                                                                    40


                    10,000,000                                                                                                    20


                            0                                                                                                     0
               0                  Sunday     Monday      Tuesday        Wednesday     Thursday       Friday       Saturday

                                                                   Day of the Week
                                                                                                              *Unique Conversions Only
Temporal Effects // Hour of the Day

                              Impressions and Conversion Rate Index by Hour of Day
              30,000,000                                                                         160
                                                 Impressions

                                                 Conversion Rate Index                           140




                                                                                                        Conversion Rate Index
              25,000,000
                                A.M.                                      P.M.
                                                                                                 120
Impressions




              20,000,000
                                                                                                 100

              15,000,000                                                                         80

                                                                                                 60
              10,000,000
        100                                                                                      40
                  5,000,000
                                                                                                 20

                         0                                                                       0


              0

                                                    Hour of the Day                 *Greenwich Mean Time
                                                                                 *Unique Conversions Only
Combine all Digital Technology into one Buying
Point for Agencies and Advertisers

                                                Display & RTB


                                    Control          Social
 Advertiser                       Targeting
                                                     Video
                               Optimization
     Agency                  Media Strategy
                                                    Mobile
                              Transparency
                                                 3rd Party Data


                                              3rd Party Technology




31
Path to Conversion
              The longer view-through path, the better conversion rate
Exposure 5                    Exposure 4      Exposure 3    Exposure 2   Exposure 1   Total Path   Total Conversions       Conversion Rate

                                                                         Impression   31,588,328        16,635                   0.0527%

                                                            Impression   Impression   8,980,080         9,045                    0.1007%
                                       A.M.                                                             P.M.
                                              Search term   Impression   Impression   4,784,100         5,952                    0.1244%

                              Impression      Search term   Impression   Impression   3,008,502         4,176                    0.1388%

Impression                    Impression      Search term   Impression   Impression   12,329,577        31,507                   0.2555%


                                                     Conversion Rate per View-Through Path
       100 0.30%
Conversion Rate




                      0.25%
                      0.20%
                      0.15%
                      0.10%
                      0.05%
                  0
                      0.00%
                                       1                     2                    3                 4                        5
                                                                 Number of Impressions in Path
                                                                                                                  *Unique Conversions Only
Italian Food Company
Objectives  Drive online traffic to the client’s website      Results    Over a six week period the number of
                 and get them to sign up for product                       unique users had increased by 15% with the
                 promotions                                                unique frequency cap
               Target users that had not been to the client              The cost per lead of consumers signing up
                website before                                             for registration reduced by 38% over the
                                                                           campaign period
Approach       Targeting consumers from online cooking
                websites to create brand awareness
               Limit the campaign to late afternoons only
                during purchase consideration period
               Retargeting of those who had been to the
                site but not signed up for promotions
Pan European Consumer Electronic Company
Objectives  Drive online sales of laptops and electronic     Results    Cost of sale was reduced by 36% over the
                 accessories in various markets                           campaign period
               Maximise reach in 6 EU countries to ensure               Each market saw significant reductions over
                brand awareness is high                                   the campaign 6 week lifetime

Approach       A combination approach was taken to use
                network aggregation and our proprietary
                RTB platform to ensure maximum cost
                efficient reach
               Reallocate media budgets accordingly to the
                most optimum performing websites
               Apply daypart targeting based on product
                promotion periods
Summary and conclusions
Summary and conclusion

• The world is continuing to digitise at an exponential rate
• Data is being generated by everyone
• Media can no longer be viewed as individual vertical channels
• Marketers need to centralise this data to be able to make
targeted decisions in a fragmented digital world
• A data management platform is essential to make this happen
• The media model is evolving to address this
“You can have data without information, but
     you cannot have information without data.”
                                   - Daniel Keys Moran




37 Source: McKinsey; Winterberry
info@themig.com
+44 (0) 207 563 3800

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Media Innovation Group - Digital Ecosystem Overview

  • 1. Coming Out on Top of the Digital Marketing Ecosystem Mark Connolly MD, Europe eShow Lisbon, October 10th 2012
  • 2. The World Continues to Digitise…
  • 10. “The next frontier for innovation, competition, and productivity is data.” - McKinsey 10 Source: McKinsey; Winterberry
  • 11. The Importance of Intelligent Data
  • 12. What is a DMP? Display RTB Search Social Video Mobile Data Management Platform
  • 13. Data Management Platform Defined Data Management Platform What It Is What It Does Unified data platform for Creates a new knowledge digital marketing ecosystem  Data – integration, storage  Optimization – greater control and management over results  Insight – across all  Market Making – right ad to performance drivers right customer  Management – across all  Valuation – linkage to campaign levers business metrics To power new go-to-market models
  • 14. What is a DMP? Data Management Platform
  • 15. Why is this important for marketers? Awareness Social / Display / PR / Gaming/ Home Page Take Overs Research Search / Social Purchase/Trial Search / Display
  • 16. Advantages of a Data Management Platform  Prove the value of cross-channel activity  Understand and enhance a user’s online experience  Create strong, tactical real time bidding campaigns  Eliminate audience buying inefficiencies  Establish the value of branding exercises  Appreciate performance from top to bottom of the funnel  Segment & target audiences based on ad, campaign, media exposures, etc. 16
  • 18. The Media Agency Approach is Broken Media buying is no longer the sole purview of media agencies, and clients have many more choices when selecting partners for optimized digital media management. (…) Agencies talk the talk, but most don’t walk the walk. Most agencies are still reliant on outmoded business models *…+ and practices such as hiring inexpensive, inexperienced media buyers rather than high-cost analytics and optimization gurus. (…) And since many agency pitches are starting to sound the same, it shouldn’t surprise anyone that marketers often defer to procurement departments to drive down agency compensation to the lowest possible rate. And similarly, marketers shouldn’t be shocked to receive the lowest common denominator of service, and results, in return. Forrester Report, Selecting Digital Media Buying Partners, June 2012
  • 19. Clients want Integration of Creative, Media and Technology
  • 20. Who are the Media Innovation Group? • Challenges facing agencies • Pressures to provide more due to economic situation • Over 15 years old with $100m technology investment • Wholly owned division of 24/7 Media • WPP owned company • Proprietary technology for all digital data solutions • Expertise in media technology, buying and optimisation • Working with ad agencies, creative agencies and clients direct on a local and global basis
  • 21. MIG Global London Paris Beijing Los Angeles New York Mumbai Singapore Sao Paulo
  • 22. MIG Europe • Main EU office in London •35 staff in the EU with full time support on a global level • 60% of our business is European • Currently serving ads in most EU countries • Working closely with regulatory services on cookie laws
  • 23. Some of our European Clients
  • 24. MIG Technology INTEGRATED ANALYTICS AND REPORTING Verification 3rd Party Data 3rd Party Research Creative Optimization Display RTB Search Social Video Mobile 3rd Party Ad Serving CRM Data Network Aggregation DATA MANAGEMENT PLATFORM 240 BILLION EVENTS TRACKED IN 2011
  • 25. Digital Marketing Landscape Today : Too Much of a Good Thing? Ad Networks Data Aggregators & Suppliers Ad Exchanges and SSPs Ad Servers DSPs Creative Optimization Ad Verification and Privacy 25
  • 27. Mastering Digital Markets for Marketers Single Point of Access One-Team Approach Analytics-Driven Consulting Technology 27
  • 28. Reporting and analytics Data Management Platform Attribution Reports Audience Reporting Look-alike Reporting Who did what, when and how 3rd party data profiling How do we scale campaigns? (horizontal vs vertical solutions)
  • 29. Temporal Effects // Day of the Week Impressions and Conversion Rate Index by Day of Week 70,000,000 140 Impressions Conversion Rate Index 60,000,000 A.M. P.M. 120 Conversion Rate Index Impressions 50,000,000 100 40,000,000 80 30,000,000 60 100 20,000,000 40 10,000,000 20 0 0 0 Sunday Monday Tuesday Wednesday Thursday Friday Saturday Day of the Week *Unique Conversions Only
  • 30. Temporal Effects // Hour of the Day Impressions and Conversion Rate Index by Hour of Day 30,000,000 160 Impressions Conversion Rate Index 140 Conversion Rate Index 25,000,000 A.M. P.M. 120 Impressions 20,000,000 100 15,000,000 80 60 10,000,000 100 40 5,000,000 20 0 0 0 Hour of the Day *Greenwich Mean Time *Unique Conversions Only
  • 31. Combine all Digital Technology into one Buying Point for Agencies and Advertisers Display & RTB Control Social Advertiser Targeting Video Optimization Agency Media Strategy Mobile Transparency 3rd Party Data 3rd Party Technology 31
  • 32. Path to Conversion  The longer view-through path, the better conversion rate Exposure 5 Exposure 4 Exposure 3 Exposure 2 Exposure 1 Total Path Total Conversions Conversion Rate Impression 31,588,328 16,635 0.0527% Impression Impression 8,980,080 9,045 0.1007% A.M. P.M. Search term Impression Impression 4,784,100 5,952 0.1244% Impression Search term Impression Impression 3,008,502 4,176 0.1388% Impression Impression Search term Impression Impression 12,329,577 31,507 0.2555% Conversion Rate per View-Through Path 100 0.30% Conversion Rate 0.25% 0.20% 0.15% 0.10% 0.05% 0 0.00% 1 2 3 4 5 Number of Impressions in Path *Unique Conversions Only
  • 33. Italian Food Company Objectives  Drive online traffic to the client’s website Results  Over a six week period the number of and get them to sign up for product unique users had increased by 15% with the promotions unique frequency cap  Target users that had not been to the client  The cost per lead of consumers signing up website before for registration reduced by 38% over the campaign period Approach  Targeting consumers from online cooking websites to create brand awareness  Limit the campaign to late afternoons only during purchase consideration period  Retargeting of those who had been to the site but not signed up for promotions
  • 34. Pan European Consumer Electronic Company Objectives  Drive online sales of laptops and electronic Results  Cost of sale was reduced by 36% over the accessories in various markets campaign period  Maximise reach in 6 EU countries to ensure  Each market saw significant reductions over brand awareness is high the campaign 6 week lifetime Approach  A combination approach was taken to use network aggregation and our proprietary RTB platform to ensure maximum cost efficient reach  Reallocate media budgets accordingly to the most optimum performing websites  Apply daypart targeting based on product promotion periods
  • 36. Summary and conclusion • The world is continuing to digitise at an exponential rate • Data is being generated by everyone • Media can no longer be viewed as individual vertical channels • Marketers need to centralise this data to be able to make targeted decisions in a fragmented digital world • A data management platform is essential to make this happen • The media model is evolving to address this
  • 37. “You can have data without information, but you cannot have information without data.” - Daniel Keys Moran 37 Source: McKinsey; Winterberry

Editor's Notes

  1. For less than $600, today you can purchase a disk drive with the capacity to store all of the world’s music.
  2. Who are weWPP/ 247 / GroupMWhy are here todayBackground between us and Grey EMEAChallenges facing creatives in 2012Commercial JV partnershipWe’re not a normal agencyWe are fully conversent with local laws on cookie regulation
  3. Skilled and experienced strategists with a one-team approach closely integrated with agency and advertiser, seamlessly turning creative and strategy into media execution.Offering a single point of access to every digital audience, enabling precision targeting and sophisticated analytics driving ROI.Executing an analytics-driven consulting business model that is truly aligned with intelligent digital media managementLeveraging an industry-leading platform with the technology and trading scale that powers the worlds largest buyer of media, WPP.
  4. Streamline media buying and management across the complex digital marketplace, increase transparency, improve campaign performance and maximize ROI.