Data Driven by Tom Chavez

Author:Tom Chavez
Language: eng
Format: epub
Publisher: McGraw-Hill Education
Published: 2019-03-17T16:00:00+00:00

OPTIMIZATION: FINDING EFFICIENCY AND EFFECTIVENESS IN ADDRESSABLE MEDIA

Everyone in media loves to quote the old John Wanamaker saw, “Half the money I spend on advertising is wasted—the trouble is, I don’t know which half.”23 Sadly, what was true for this mid- nineteenth-century department store magnate remains true in today’s digital media age. Working media dollars are still wasted, and perhaps in greater quantities than ever.

Although we have the ability to measure all addressable media at the device and channel level, the problem that most marketers face is an inability to measure their performance at the people level. As discussed in the “data-out” section earlier, if a marketer uses ten different addressable channels on a particular campaign (say, two DSPs, three social networks, e-mail, a mobile platform, search, and two direct buys), there are ten different IDs for the same exact user. Yes, you can set frequency controls (or caps) for every channel, but even limiting every partner to 20 impressions per user per month means exposing users to over 200 messages—far too many. A 2016 study by marketing automation provider Hubspot reported that 91 percent of people feel that advertising is even more intrusive than in years past.24 If the vast majority of people feel overexposed to advertising, imagine how much worse we make it when we expose them to the same exact ad hundreds of times!

Kellogg Company was one of the earliest adopters of DMP technology and one of the first to drive a stake in the ground on frequency management. “We knew there were inefficiencies in digital. It was clear that we were over-serving ads to consumers, and it was also evident that much of our advertising spend was not getting enough user frequency to be effective,” says Jon Suarez-Davis. “Although we were highly rigorous in terms of frequency capping our partners and bringing in partners like comScore for measurement, we knew we couldn’t solve the problem without owning an identity infrastructure that could link user IDs together in a way that enabled a highly granular level of control.” JSD brought us in to talk about how we were user-matching with the partners that Kellogg Company depended on, such as Yahoo!’s Brightroll,25 a video advertising platform.

Anheuser-Busch InBev (ABI), another early adopter of data management technology from the CPG space, struggled with the same overages and underages. “One of the biggest challenges for CPG marketers is managing reach and frequency,” says Jonny Silberman, director of digital strategy and innovation at ABI. “We want to reach as many consumers as possible, but at the right frequency of exposure. Too little exposure to our creative and consumers may not remember our brand, but too frequent exposures and we end up annoying them. The reach frequency challenge gets even harder as you enter the fragmented digital ecosystem.”

Without an aerial view of people across the various devices and sites that Kellogg’s and ABI were trying to reach them on, managing ad delivery was impossible. “We couldn’t get a true measure of how many times we were reaching our consumer in the digital environment.

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