Hi, everyone.
Today, I want to talk to you about why people, and not proxies, are the next frontier in
marketing as a whole.
And to start with, I have a quick question – and there's a wonderful prize.
We have some dulce de leche truffles, from a supermarket brand that sounds like Dark's
& Tenser, and the question...Please, shout out.
The question is: who can tell me what this is?
Speaker 2: Newspaper Speaker 1: Yes, correct, it's a newspaper
clipping, but, why is it so special?
Speaker 3: First French newspaper.
Speaker 1: Nope.
Nope.
Good shout.
Come on.
Speaker 4: War starting?
Speaker 3: First newspaper with photos in it?
Speaker 1: What do we do?
Why would I be up here talking about something?
Speaker 2: First adverts!
Speaker 1: Charlotte, well done.
Advertisers used to buy entire audiences This is so special because it's the first
ever publication that carried paid for advertising.
And in the 160 years since the publication of this, advertisers have happily planned,
in terms of campaigning around media selection.
So, they used media, or did do for a hundred and sixty years, as a proxy for their audience.
Selecting media partners where they felt their audience, whether it be viewers, readers,
watchers, etc. what aligned to their target audience.
They accepted that when they bought an advert in something like a newspaper that they were
buying the entire audience, meaning that they knew that a great deal of that audience were
not necessarily their target audience, and there was wastage involved in their investment.
That state of play existed from this moment here for 160 years, and it did so until the
event of digital media.
Digital allowed advertisers to refine their targeting
Digital media changed everything, and we're still dealing with the ramifications of it
today.
In our industry right now across the whole supply chain, from clients, brands, agencies,
and media owners, we're experiencing the greatest disruption we have ever seen in our industry.
And that's because digital media enabled advertisers to target audiences at such a precise level.
Even in the early days, you could target people based upon the intent of the keyword they
were using in their search query.
And you could do this at quite some scale.
If you combine that with the accountability that digital put on the table, you can see
why the rise, and the rise of digital took place, to its current position today, where
it takes the lion share of the media budget.
Media buying needs to be audience-based Now, gone are the days when clients are happy
to buy a piece of media and buy all of the audience associated with it.
And that's why we, in digital, are sharpening our approach; enabling the industry to move
away from a place of proxies and towards a place of audience or people-based planning.
When we talk about digital marketing, our preferred proxy is undoubtedly the cookie,
so let's have a look at how we use that in our marketing.
How we use cookies On the advertiser side, you have a data management
platform.
Now, I accept that obviously the DMP can handle vast amounts of unstructured data, like CRM
and analytics, making great sense of it but for the purpose of this talk, I'm purely talking
about cookies.
The DMP can handle a lot of first-party cookies – people who have visited the advertiser
website – and it can start to segment them based upon the propensity of that cookie to
do business with them, the potential value of them informing their bidding strategy.
Out in the marketplace, you have a universe of potential customers, browsing the web,
some of whom will visit media owned websites, where in relevance to the advertiser, a third-party
cookie is generated.
This is the moment when that third-party cookie is up for grabs, it's out in the market, and
you can buy that impression, you can advertise to them.
So, the advertiser assesses that cookie, understands the value of it, plugs it into third-party
data providers, takes great learnings from it, builds out this big picture – “should
I bid for this impression and by how much?” – and then potentially a bid is placed,
and an advert is shown.
The problem with cookies Now, if you contrast this approach to that
of buying an advert in a newspaper, and advertising to the entire audience, this is highly, highly
sophisticated, but actually the use of cookies alone is really quite a blunt approach.
I'm going give you a few reasons as to why: • We all clear our cookies.
We all buy new hardware, from time to time.
That puts a complete road block on the data that you're able to collect and base your
planning decisions around.
• Users share machines.
We're using Adam's laptop at the moment, this evening his girlfriend may use it.
Her behaviour online will be distinctly different, so she's creating a different pattern of behaviour
that we'll be basing decisions upon.
Advertisers may choose to advertise to Adam's girlfriend, thinking that it's him, so that's
not very smart.
• They're also not future-proof.
We've seen recently, with the latest update from Safari, they are auto-blocking third-party
cookies.
With GDPR on the horizon early next year, we're going to see a dilution in the volume
of data that we can base decisions upon.
• And finally, very importantly, cookies create a duplication of reach.
This is something I really want to dig into and explain to you.
I'm one person.
I have a smartphone, I have a tablet, I have a desktop, I have a laptop; I have multiple
browsers on those machines as well.
Every time I do that I'm creating another cookie.
Now, that, that creates a real problem if you're just using cookies, because you may
think this one person – me – is several people, and that's going to make you draw
down some of the wrong conclusions in your planning.
Most notably, we have duplicated reach.
So, an advertiser may look at their audience thinking I have a bigger audience than actually
I do, and they can't distinguish the fact that this is one person.
If they think they have a bigger audience, and if they advertise to everybody in it,
you have inflated costs, at which point, you have a sub-optimal return upon investment.
And, just from a consumer experience with a brand, if you don't understand that this
is me on different devices at different times, you're going to potentially spam me, giving
me a poor overall experience of your brand.
Moving from cookies to people That's why we, in digital, are moving from
an audience of cookies to an audience of people.
If you simply add a richer data set to that of cookies, you can correctly predict who
you're targeting eight out of 10 times.
And this is how it's done.
Using a partner, like we're investigating working with Ignition AI, you can collect
data around IP addresses, device models, screen resolutions, user agents, at which point you're
building a far, far broader picture.
Becoming laser-like in your targeting and you're understanding through all devices.
And even if you remove cookies from this portfolio, that you can see here of data, you will still
correctly identify that user seven out of 10 times.
This is so, so meaningful to advertisers.
Let me show you how this works when you go back to my example of duplicated reach.
Me as one person creating multiple cookies.
Using that technology, deploying it well, you'll start to understand this is not for
people, this is one person.
You'll get a view through all devices, all of my behaviour, you'll know it's me, and
at that point you can start to be really smart.
You can know I'm the right person, base your bidding strategy around it, and target me
at an optimal moment, regardless of device, regardless of media.
This enables personalization, which we all know enriches the experience a consumer has
with a brand.
And from there, because we've got...we've de-duped the overall cookie portfolio, we're
now decreasing the overall volume of waste, improving the return on investment, and we're
helping future-proof this, because we're relying on a vast data set, not simply cookies.
And this, this is what brands want from their marketing, it's targeted, it's personalised,
and it's effective.
The change in purchasing TV audiences That's why other channels are now following
the suite of digital, in enabling advertisers to target their audiences on a nano basis.
And the one notable medium that's making great strides in this is television.
TV is moving from a place where advertisers planned campaigns based around programming.
They used programming as their proxy to the audience, predicting who was likely to watch
that and buying the entire audience behind that programme, accepting the wastage.
TV is moving from that world to a place where it enables advertisers to advertise on a household-by-household
basis, in what we call addressable television.
Now this is, this is television's play to take share from digital.
And it's specifically their play to challenge the duopoly of Google and of Facebook.
Now there are limitations within this, just simply around the inventory available to us
to advertise in at the moment, it's not big enough.
But, if you read the Mind Share Report, Video Eats the World, they predict by 2022 one-third
of all television inventory will be addressable.
So, its en route, and for me this is so potent.
Think about what it combines, the emotive creative that you can execute on television,
so powerful; the targeting of digital, and the sophistication of the technology that
you can deploy; and, finally, the reach of direct marketing.
So, for me, this is a weapon that every marketer is going to want in their arsenal over time.
Digital’s influence is spreading What this is doing is it's allowing us to
use the skills we've honed in digital around data-driven performance marketing to enable
brands to activate campaigns based around data, and anchored very much in people-based
planning, and audience based planning and not proxies.
Thank you very much.