MediaMath has made its 8th annual visit to the south of France for Cannes Lions 2019. We are still reminiscing about our truly inspiring week on the beach discussing the most cutting-edge advancements in the advertising industry. Relive some of those memories with us by watching our new recap video to see how we are leading the industry to an accountable and addressable media supply chain and learn more about our new strategic partnerships announced during the festival.
Top online luxury fashion retailer Luisa Via Roma had a goal to build a transparent, global, full-funnel programmatic strategy, including branding and performance strategies.
To date, their display advertising strategy had consisted of direct buys managed on an IO basis. These campaigns were predominantly measured on CTRs, percentage of new customers and time spent on site, leading to a restricted view on performance. Although Return on Ad Spend performed well overall, the brand lacked a truly transparent solution that allowed them to learn in detail about the effectiveness of their targeting and messaging. LVR wasn’t able to develop any expectations in terms of measurable sales performance, which kept them from scaling their marketing investments.
LVR began engaging with MediaMath in Q1 2016, kicking off a full-funnel programmatic campaign including a PMP with one of the most prestigious fashion publisher houses. The brand relied heavily on MediaMath’s consulting services, which consisted of education, consolidation of the tech stack, reporting and the creation of a joint data and media strategy. Together, we developed an integrated DMP + DSP strategy that drove up to 11.7 times higher ROAS/ROI. To learn more about the full solution and results, read the case study here.
By the end of this year, mobile advertising will overtake desktop and make up 50.2 percent of all internet advertising according to ZenithOptimedia. In the US, mobile spend in 2018 will be larger than all other media except for TV. As we’ve discussed on our blog before, there is sometimes a disconnect between the budget marketers put towards mobile and the results they get. Some trends and emerging technology in 2017 might make it easier to get mobile strategy and execution right to drive the best outcomes. Mobile Marketer shared some of its predictions for mobile marketing in 2017 via Ritesh Bhavnani, president of Snipp Interactive.
- Smartphone as the hub for your life
Our mobile devices are becoming the remote for all of our connected devices thanks to the Internet of Things (literally, as you can now use your smartphone to change your TV channels). This trend gives marketers a clear focus—keep your eye on the smartphone prize, because it will be your window into all other new and emerging devices such as smart watches.
- Mobile bridges the real world
Online to offline connections will become easier with more location-based services in retail, such as beacons, AR developments such as Pokemon Go and shopper marketing that enables in-store shoppers to activate coupons sent to their phones among other things.
- Many channels, many devices, one customer
Marketers are going to get better at leveraging identity to tie a user to all of the devices he or she uses (latest average is five, according to the DMA) in addition to the different loyalty programs for which they are signed up offline. Technology will continue to emerge to give marketers a unified view of their customers across all channels and devices.
Read the rest of the predictions here.
This article originally appeared in Italian on Programmatic Italia.
What are the programmatic market trends in Italy for 2017?
According to Giovanni Tricarico, Manager, Platform Solutions EMEA, for MediaMath, the industry this year will face two major issues: the redefinition of access to supply through automated buying advantages and increased brand awareness of programmatic.
“Since programmatic is becoming an increasingly standardized solution in every media plan and an ever-increasing portion of the budget is being moved to this buying solution, the access to available inventory is expected to become increasingly complex and competitive,” according to Tricarico.
“As has already happened in more mature markets, the Italian panorama of programmatic is becoming increasingly crowded, so we will start to see big operators redouble their efforts to ensure access to more premium and customized inventory for their customers. To accelerate this trend, we will see a greater adoption of innovative solutions proposed by the SSPs (header bidding, direct integrations, management of direct buys programmatically, etc.). So for media buyers, it will be just as imperative to assess the purchasing platforms (DSP) through their ability to support this transformational change.”
Another trend, according to Tricarico, is instead related to a growing awareness on the part of the brand of adtech advantages. “Automated purchasing gives marketers important tools in terms of attribution and targeting specific KPIs and measurement of audiences otherwise not available through standard channels. As the benefits of programmatic emerge with greater clarity, knowledge and expectations naturally evolve. The year 2017 will, therefore, represent a breakthrough in terms of Italian CMO awareness of the purchase options at their disposal in terms of programmatic media. While this growing demand in terms of transparency, expectations and standards will force the business model of the agencies in Italy to evolve, on the other hand, it will also represent a great opportunity for agencies to be able to gain a competitive advantage using specific skills, investing in internal training and offering tailored solutions.”
Latin America is a dynamic programmatic region, as we reported in our study last year with comScore, The State of Programmatic Buying in Latin America. Despite lower spend relative to other markets, programmatic buying in LATAM is expected to increase four-fold by 2019. Catherine Archer, our head of marketing for the region, recently spoke with ExchangeWire about trends in the programmatic market for 2017. Here’s what she had to say.
“MediaMath have been in Brazil since 2014. We were one of the first companies to put our cards in the local programmatic market. Two years later, we ended 2016 with great progress.
“Not only did we see our revenues increase by 200%, but also our team grew, our headquarters are new, and the market matured. We know that the topic still brings doubt to a lot of professionals, but we’ve seen an evolution, so far, and we were part of it.
“We brought the New Marketing Institute to Brazil, presenting the most innovative practices in the global market, and prepared a market study in Latin America. In 2017, we are very optimistic. Programmatic media should conquer more space. I don’t mean only our growth, but the whole sector and opportunities for the next years.”
For more data on how the LATAM region will evolve in 2017 and beyond, check out our programmatic trends infographic.
This post originally appeared on IBM’s THINK Marketing blog.
Fact: CMOs are increasingly making enterprise-level technology decisions. They are expected to outspend CIOs for the first time ever by 2017, according to Gartner. And with the research firm’s latest CMO Spend Survey, conducted with 377 marketers at from North America and the U.K., we have a clearer idea of where exactly marketing leaders plan to make their investments. A few highlights from the survey, released in October:
- Web, digital commerce and digital advertising were the top three categories for marketing spend in 2016
- Two-thirds plan to up spending on digital advertising next year
- In 30 percent or more companies, certain IT, sales and customer experience functions now report into marketing
- Only a quarter of IT organizations have maintained control over martech capital investments
Even though marketing is controlling more of the technology budget, getting these investments right is not a walk in the park. The zenith is addressable, real-time, outcomes-oriented marketing, and not all platforms are up to the task. With all the technology choices in the ecosystem today, it’s important for CMOs to look for two critical components in their platforms to ensure they are making smart technology investments and can tie marketing efforts back to business outcomes.
1) An open, extensible platform: A single, open platform that can be integrated allows for a streamlined workflow through one UI. It should have a few key features:
- Customer-centricity, rather than channel-centricity, so marketers can make decisions in alignment with customer needs across channels. This requires deep supply reach, omnichannel execution and the ability to manage a holistic media plan within a single UI that provides integrated and normalized workflows, execution and reporting for a united view of the customer across channels to allow optimizing back to the marketers’ true business outcomes.
- Real-time capability to react to consumers as they shop, browse and consume content and enable integrated audience management and omnichannel execution at scale. This ideally allows the ability to identify users across devices and adapt to their changing behaviors in real time, with an intelligence engine that ensures what happens in audience informs what happens in media and vice-versa.
- Flexibility so marketers can use other software systems or solutions, often through APIs that allow integration. Customers can use these APIs for themselves or make them available to the broader ecosystem. This unprecedented level of customization gives clients the ability to create the right tech stack for their needs.
2) Connecting adtech and martech: The breakdown of silos across paid and owned media has become possible thanks to the interconnection of automated systems on both sides, to orchestrate the very seamless, relevant consumer experiences marketers are trying to effect. CMOs will increasingly be able to broker these connections to drive competitive advantage and boost ROI across both paid and owned media. A few things to keep in mind:
- Get executive support for your martech and adtech strategy and start connecting your paid media and owned media teams.
- Look for connections that are easier to implement. Think marketing technology platforms with built-in functionality to allow digital marketers to extend email campaigns to paid media through a single UI.
- Adopt an identity management solution so you know who your consumers are across devices. Your conversations will get smarter as a result because you’ll know their shopping and content consumption behavior across all the devices, whether you engage with them first in email and continue in display or hit them on mobile first. You’ll also improve measurement and optimization of spend across channels.
Will 2017 be the Year of Attribution? Our Founder and CEO Joe Zawadzki thinks it could be. He recently contributed his thoughts to AdWeek’s SocialTimes’ 10 Digital Media and Marketing Predictions for 2017 piece.
Marketers are signing up for outcomes, not inputs, inside of their own organizations, and they are increasingly asking the question of who watches the watchers, who grades the homework of a dynamic and diverse supply chain? Programmatic done right is attributed based on impact on true business goals, and it lets marketers see through channels and partners to the consumer behind all of those screens.
To read more about our thoughts on how marketers can utilize attribution, take a look at the below posts:
- Four Fatal Flaws of Digital Attribution and How to Address Them: Part I
- Four Fatal Flaws of Digital Attribution and How to Address Them: Part II
- Four Fatal Flaws of Digital Attribution and How to Address Them: Part III
- Four Fatal Flaws of Digital Attribution and How to Address Them: Part IV
- eMarketer Interview—Cracking the Cross-Device Dilemma: A Must for Cross-Platform Attribution
Dave Reed talked with Bill Fisher from eMarketer for the publication’s State of the UK digital ad market report. The below are some insights from their interview.
“I think the best anecdote to perceived ills in the market is doubling down on quality. The UK has lots of examples where it’s leading on that. Quality means using first-party consumer data and modelling off it, or using high-quality third-party data to target consumers in a better way. This means leveraging programmatic not just for long-tail, relatively low-CPM buying…maybe doing it at a lower frequency, having a meaningful message.”
“It also means coordination of consumer experience not just in paid media but also across paid, owned and earned experiences as well. Across all these things, I’m excited and optimistic that some of these issues—fraud, viewability, ad blocking—are immediately compatible by focusing on common sense, consumer-first principles.”
Inventory quality will continue to be a focus into 2017 in EMEA.
“I think the UK has a leg up on that in the sense that private marketplaces or some kind of prearranged deal that’s executed in an automated way are fairly standard here—50 to 60 percent of things classed as programmatic are also classified as some sort of direct/private marketplace deal.”
“We’ve moved into a world where a marketer will try to get reach against tens of thousands of opportunities a day across TV/print/OOH/radio etc. to a world of connected devices and multiple screens—literally hundreds of opportunities to get possible touch points with the consumer.”
Regarding the growth of new formats: “Some are new, some are held as new,” Reed said. “Out-stream, ad units that can be different lengths on video but with the same content, are getting some help from the supply chain. Video on both desktop and mobile will continue to take the lion’s share of growth…seeing some interesting growth in format, native and non-paid channels that we think programmatic can inform.”
“There’ll be continued growth for marketers in complementary verticals sharing data (data collaboration), and publishers who increasingly expand into partnerships that are data-driven. We’ve seen a lot of retail space clients branch into partnership with brands they sell, or developing media propositions.”
“There’s one general effect of measurement in marketing, and that’s revenue. The closer you can get to being able to tie marketing activity to revenue, either in the short term like a purchase, or in the long term in something like lifetime value or complete brand loyalist metrics, the closer you can get to that, and the better off you are. If you start there, you’ll tend to shy away from things that don’t actually show ads to people, unless you think unseen ads drive real revenue. Often marketers are left with an imperfect link between brand loyalty, short-term revenue or long-term customer value, and then it can be useful to introduce a number of inner media metrics. Viewability can be one of those but it shouldn’t be the effective function of your marketing to show viewable impressions—it should be to drive business outcomes.
A version of this prediction appeared on Forbes.
What will 2017 bring for the realm of programmatic marketing? MediaMath’s CMO Joanna O’Connell weighs in.
“Programmatic is moving into new territories—TV, audio, print, native. The true ‘programmatic future’ is taking all forms of media and making them addressable and connected at a consumer level. User data is what powers the marketing that allows brands to reach and engage with consumers on a one-to-one level across channels, formats and devices throughout the customer lifecycle. But there’s need for technical convergence and message coherence across channels as viewed from a consumer perspective. Consumers, after all, don’t care what channel they’re in; they just notice when offers are off, mis-targeted or annoying due to over-frequency of delivery. And then they block ads.
Without alignment of channels, it’s tough to sell marketers a real consumer journey story, much less create one for consumers. Omnichannel execution, combined with smart management, analysis and activation of first-, second- and third-party data sources, will be the way forward in 2017, with more and more brands realizing the benefit of unifying data across all addressable channels so they have a single identity of a user that drives one seamless conversational thread and, as a consequence, better user experience. We call this ‘programmatic marketing.'”
If 2015 was the year of adolescence for MediaMath, 2016 was accelerated maturity into the responsibilities of young adulthood.
This year, we evolved from an adtech company to an enterprise software and services provider, because the latter is what the market is demanding. Marketers are more sophisticated than ever. We are entering a “post-channel era” where CEOs, CMOs and CFOs are as obsessed as we are with data and outcomes.
With technology at their fingertips to enable 1:1 marketing at scale, with real-time execution, direct connection to consumers and the ability to measure business results over publisher inputs, marketers are increasingly motivated to “make it so.”
Those are our clients. MediaMath’s customers index toward the more sophisticated, and we’ve built our business to cater to them. This drive to move programmatic out of test budgets or a portion of their media investments sometimes requires new business models or team configurations to do so— our work with Coke and MediaCom out of Mexico is a great example of how this can be done with success. Marketers like the folks at MediaCrossing have moved from siloed channel approaches to true single platform allowing omnichannel execution. And with the pipes to hook together paid and owned media systems through great partners like IBM and Oracle, marketers are extending conversations they start with known customers in email across channels and the marketing funnel. From our founding, MediaMath has partnered with these most sophisticated marketers to push the boundaries of programmatic marketing. We want to continue to be seen as a leading “Visionary,” the category in which we were recognized in Gartner’s Magic Quadrant for Digital Marketing Hubs in January.
In the context of this growing client and market maturity, we made some changes internally that were both exciting and daunting.
Early in the year, we unveiled a new product business unit structure around our data, media and intelligence products, bringing our product teams closer to the client. Our data team, which successfully launched our proprietary data business, formerly known as Adroit, then Helix and now as part of MediaMath Audiences, in January and released into general availability our real-time DMP capabilities Adaptive Segments and IQ in November, is helping marketers leverage more of their first-, second- and third-party data sources (including deepened and new partnerships with data providers like Acxiom, PushSpring and Cuebiq) and shape the analytics around them.
Over top these new product business units, we’ve ramped up our professional services capabilities to enable clients to unlock the full potential of programmatic with talent and expertise. Our New Marketing Institute, which is now officially in all regions with its expansion into APAC earlier this year, continues to help clients close education and talent gaps through their certification and training offerings and the Marketing Engineer Program. We also revamped our technology organization, appointing Wilfried Schobeiri as Chief Technology Officer (CTO) and Steve Steir as our new SVP of Engineering. Wil will drive our technical vision, ensure scalable growth of our systems and push the productization of our API and technology platform while evangelizing our technology both inside the company and externally to the market. Steve will make sure our global engineering team is aligned on the goal of continuously improving people and products.
Coming out of this new product structure, we have the right people in key roles across teams to move the company and mission forward. And there’s a renewed commitment to ongoing evolution and mobility that should smooth the migration of people and resources to the focused set of initiatives that need them at various time periods, varied as needed across geographies. We continue to strive to be a place where people at all stages of their careers want to work, and also encourage those individuals to give back in meaningful ways through the launch of our philanthropic arm MediaMath.org.
From a financial health perspective, our enterprise business grew just over 20 percent in our most mature market of North America and to over 100 percent in LATAM, along with (a return to) overall profitability. And we did that while taking something really good—a fast-growing and high-contribution business unit in Adroit—and blowing it up to free up the amazing talent and differentiated data assets inside to accrue to the benefit of all of our clients, globally, to become something great. Even more intestinal fortitude was required to shift our buy strategy for “batch supply”—Upcast—to build, in order to position it to grow by triple digits in 2017 as mobile and video did this year.
What else is to come in 2017? Here’s what I know: the market for what we are doing is getting bigger and the number of credible competitors is getting smaller. Smaller point solutions—from channels like video to standalone DMPs—are getting bought, validating the need for the integrated, transparent enterprise solution that we have been building for close to a decade. Audiences addressable through all forms of media, the centrality of machine learning—these ideas are being embraced after 10+ years to move from fringe notion to “obvious.” We are in the business of transforming marketing through tech and math, and we know where the market is going and are increasingly able to shape its direction.
And yet we will do more. The need for supply chain hygiene will cause some to call for a return to the halcyon days of advertiser, agency and publisher in the same way that the challenge of attribution had many retrench to engagement or reach metrics alone. Thankfully, we have truth on our side. In 2017, we as a company and as a catalyst for the cause must focus on belief and proof, and show it in the data and the results.
To do that, we will continue to invest in innovation and even more in scaled operations and infrastructure, partnering with the most sophisticated marketers and the diverse ecosystem that supports them. We have an amazing team and the industry’s most powerful platform—the table is set. Now it’s up to us.