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X A X I S 1 0 1 S E R I E S PERFORMANCE MARKETING 101 For internal communications and client presentation only. Information or views presented in this post do not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company. IN THE FUTURE, ALL DIGITAL MARKETING WILL BE CLASSIFIED AS “PERFORMANCE” IAB, Defining Performance Marketing in Today’s Digital Landscape 3 WHAT EXACTLY IS PERFORMANCE MARKETING? The intention of the campaign The cause and effect between The buyer can optimize their In many cases payment is is to drive consumer action, the advertising and consumer buy in real or near real-time made based on consumer as opposed to raise action can be clearly based on the measurement action (this is not necessarily awareness measured required if the other three criteria are met) IAB, DEFINING PERFORMANCE MARKETING IN TODAY’S DIGITAL LANDSCAPE 4 TWO TYPES OF PERFORMANCE MARKETING The prerequisite = ability to measure outcomes PERFORMANCE OPTIMIZATION PAY-FOR-PERFORMANCE The ability to adjust the buy in real time, based The ability to measure and optimize with the on the effectiveness of the campaign in driving option to pay only when that performance consumer action that makes it a performance action occurs campaign. IAB, DEFINING PERFORMANCE MARKETING IN TODAY’S DIGITAL LANDSCAPE 5 “Not all performance actions are considered PRE-ROLL VIDEO VIEWS VIEWABLE IMPRESSIONS SOCIAL ENGAGEMENTS equal, The closer the performance action is to the CLICKS NATIVE OR CONTENT ENGAGEMENTS transaction, the more accountable the outcome” SMS LEAD FORMS CALLS EMAIL REGISTRATIONS IN-STORE VISITS TRANSACTION IAB, DEFINING PERFORMANCE MARKETING IN TODAY’S DIGITAL LANDSCAPE BRANDING PERFORMANCE MARKETING MORE VOLUME vCPM (VIEWABLE CPM) CPM (COST PER THOUSAND) CPCV CPC CPL CPA (COST PER COMPLETED VIEW) (COST PER CLICK) (COST PER LEAD) (COST PER ACTION) MORE VALUE • • • • • • • Brand Awareness Unregistered View/Click Unqualified Browsing Implicit Reach • • • • • • • Action/Intention Focused/Download Registered Lead/Purchase Qualified Researching Explicit Targeted PWC and IAB UK, The value of Online Performance Marketing Study 7 FRAUD IN PERFORMANCE MARKETING 52% 11% Of CPA Networks Of publishers do not admit to asking trust affiliate 72% 82% publishers to networks (the lack of) commit fraud TRUST In performance marketing OF MARKETERS THINK FRAUD IS A SERIOUS PROBLEM IN PERFORMANCE MARKETING OF ADVERTISERS SAY THEY HAVE BEEN A VICTIM OF FRAUD 66% Of advertisers do not trust affiliate networks PERFORMANCE MARKETING INSIDER SURVEY, FEBRUARY 2016 49% Of advertisers do not believe in fraud detection program PROGRAMMATIC & PERFORMANCE MARKETING For internal communications and client presentation only. Information or views presented in this post do not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company. WHY? PROGRAMMATIC & PERFORMANCE MARKETING WERE BORN FOR EACH OTHER AUDIENCE & CLOSED LOOP DATA EHANCEMENT 9 OUTCOME HISTORICAL DATA ALGORITHMIC OPTIMIZATION PROGRAMMATIC DMP SCALE LOOKALIKE & RETARGETING IMPRESSION-LEVEL VALIDATION ATTRIBUTION & MEASUREMENT 10 LEVERAGING PROGRAMMATIC FOR OUTCOME BASED MARKETING PERFORMANCE RISK ADVERTISER LIGHT REACTION Your Title Here GUARANTEED AUDIENCE ENGAGEMENT BASED GUARANTEED OUTCOMES AUDIENCE & BRANDING ENGAGEMENT OUTCOME PREMIUM INVENTORY NATIVE & SOCIAL INVENTORY OPEN EXCHANGES INVENTORY FORMATS: STANDARD, RICH MEDIA, DISPLAY, DCO, IN-STREAM, PREROLL, IN-APP/MOBILE WEB, RADIO, DIGITAL OUT OF HOME INSIGHTS FOCUS FORMATS: CONTENT RECOMMENDATION, FORMATS: OUTSTREAM, IN-FEED, IN-IMAGE, STANDARD DISPLAY, VIDEO, SOCIAL AND MOBILE NATIVE MOBILE WEB/APP CAMPAIGN MODEL DELIVERY FOCUS 11 FROM SILO TO CROSS-VIEW CROSS-VIEWING: Leveraging Xaxis propriety audiences across addressable, programmatic channels for cross-device targeting, VIDEO ONLINEVIDEO ONLINE CONNECTED TV CONNECTED TV DEVICE MOBILEDEVICE MOBILE audience journeys and optimal media allocation. TRADITIONAL TRA DITIONA LTV TV PERSONA L COMPUTER COMPUTER PERSONAL measurement and attribution. Offers deep insight into true A SILOED VIEW OF MEDIA CHA NNEL ONL Y A LLOW S A SILOED VIEW OF MEDIA CHANNEL ONLY ALLOWS LINEACONVERSIONS R CONVERSIONS. LINEAR CONVERSION PATH CONVERSION PATH CONVERSIONSTODAY TODAY A ARE CONVERSIONS RE CROSS-PATH CRO SS-PATH AND A ND MULTIPLATFORM. MULTI-PLATFORM. 12 ISOLATED MEDIA CHANNEL VIEW PROVIDES ONE DIMENTIONAL RESULTS LINEAR PERFORMANCE IS COMMODITIZED THE LACK OF CROSS-MEDIA AT ATTRIBUTION TRADIONALLY HANDICAPS DIGITAL MARKETERS TO PLAN BASED ON DEVICE AND NOT USER BEHAVIOR (OR THE ONE TASK, MULTI-DEVICES” NORM ACTUAL CAMPAIGN 48.4% IMPRESSION DESKTOP CHANNEL SEEMS VERY STRONG FROM A LINEAR ATTRIBUTION VIEW (DESKTOP) (DESKTOP) 51.6% 84% CONVERSATION MOBILE CHANNEL IS LIKELY TO GET CUT OR 16% CONVERSATION IMPRESSION REALLOCATED TO DESKTOP (MOBILE) IAB, DEFINING PERFORMANCE MARKETING IN TODAY’S DIGITAL LANDSCAPE (MOBILE) 13 CROSS-VIEWING REVEALS HIDDEN PERFORMANCE SINGLE DEVICE VIEW IS “BLINDING” ALMOST 60% OF CONVERSIONS FROM MOBILE IMMPRESSIONS ACTUALLY OCCURED ON DESKTOP. WITHOUT CROSS-VIEW, THIS ATTRIBUTION WOULD BE LOST! ACTUAL CAMPAIGN 48.4% COMPUTER: 94.13 IMPRESSION (DESKTOP) (DESKTOP) 51.6% 84% CONVERSATION COMPUTER: 59.1% 16% CONVERSATION IMPRESSION (MOBILE) (MOBILE) COMPUTER: 40.9% SOURCE: TURBINE CROSS-VIEW, ACTUAL CAMPAIGN DATA, SEPTEMBER 2015 X A X I S 1 0 1 S E R I E S THANK YOU For internal communications and client presentation only. Information or views presented in this post do not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.