Just in Time for the Upfront, A+E Guarantees Audience Based Advertising

The folks at A+E Networks understand the value of a careful process. Now, as they announce the launch of their Audience Based Advertising Solutions for both Digital and Linear platforms, all of the critical elements that have taken years to achieve, are now in place. “Seven years ago we started the digital iteration of precision,” noted Peter Olsen, Executive Vice President, Ad Sales and Content Partnerships, “three years ago we added the linear focus. And last year we launched the attribution-based performance system.”

Although the digital and linear marketplaces are very different, the complex integration of data, the streamlining of processes and the ability to customize and then guarantee results places this initiative in a new, higher class of offerings and just in time for the upfront.

Addressing Marketplace Frustrations

Why do all of this? Olsen explained that there are two big frustrations for advertisers. One is the price of entry into the digital and, even more, in linear marketplaces where it is perceived as cost prohibitive. “That is why we launched a new product called Precision One or P1 which is a single network optimization tool intended for clients that want to test in this space or people who aren’t currently big spenders in TV,” he stated.   In this way, smaller clients could participate in television where now, as in digital, they could get rich data and advanced targeting opportunities “as a way to welcome new people in.”

The other frustration, Olsen posited, is the general inability to do cross-platform or multi-platform strategic target optimization. “There is the lack of common currency as well as other measurement issues out there, but we are willing to take a leap and say ‘you give us your target and we will buy the audience wherever it may be.’ Essentially, we need to be able to optimize any target audience wherever they are watching.” 

“These are the new initiatives,” stated Jason DeMarco, Vice President, Programmatic and Audience Solutions, “but the underlying foundation remains, which is to find a solution that is beneficial to all parties involved. We are focused on optimizing the user experience with relevant targeted ads and keeping intact the premium experience of our content.”

Premium Programmatic

How does the team at A+E overcome the nagging but incorrect perception of programmatic as remnant inventory? “I have been fighting that fight for a good seven years,” admitted Olsen. “Programmatic started as a race to the bottom because basically it was a way to sell off distressed inventory.” But the reality is, he added, “No inventory, whether on TV or in digital should be considered distressed when you are applying data sources to it. Each and every impression will be relevant and valuable to someone.”

When it comes to the premium viewing experience, the relevant ads within that experience will have greater resonance as well as brand safety. In addition, there is a wider rotation of ads so viewers will not see the same ads over and over again. “We have identified the ability to increase the frequency of advertisers to have a more well-balanced delivery of ads and creative which helps the consumer on the user experience side,” Olsen noted. On the advertiser side, this method avoids saturation so that, “the premium is maintaining that TV-like environment across all platforms and screens.”

Technology Partnerships

A+E Networks has also partnered with several technology firms to replicate the TV experience on digital platforms. Ethan Heftman, Senior Vice President, Precision and Performance Advertising Sales, explained that, “The SVOD services are taking viewership and therefore impressions away from the ad-supported video market. Where do we turn? Do we go to unsafe, hard to measure spaces that get gets brands really nervous but help on the efficiency? Or do we find ways to explore places in the premium market?” To that end, A+E Networks is placing more of their premium content on Hulu, Roku and Pluto. In this way they can keep the ecosystem “healthy and also retain clients who understand that video works while also making it affordable.”

The ability to blend of all of the different datasets from both the household and individual level is another selling point to this initiative. “This is where we find the best in class partnerships,” noted DeMarco, like LiveRamp, DataPlusMath and iSpot for data, ad serving and tech stack partnerships such as FreeWheel as well as trade desks on the buy side like dataxu. There are a lot of test cases using ingested client data, matching it with viewership data and delivering against targeted audiences with results expected in the next several months. For the upfront, there is the promise that all of these datasets will enable cross-platform measurement and deliverability for advertisers.

“A+E offers the premium content and distribution to deliver audiences. We are partnering with the best in class technology and data to bring together all aspects of cross-platform viewership synchronized, collaborative way,” concluded Olsen, who backs up his beliefs by guaranteeing the buy results.

Next Steps

While the full holistic integration of digital and linear is possible, it is not simple. Heftman summed it up, “We think that the only way to compete and not overpromise and under-deliver, is to have a product that, from a cost perspective, reduces the barriers to entry for new advertisers and move from digital and into a linear television world with reduced complexity.”

The response from advertisers has been encouraging. “We were the first in market with outcome guarantees which created initial demand,” Heftman added. Now bring on the upfront! 

This article first appeared in www.MediaVillage.com

The Secret to Increasing Unduplicated Reach. Interview with Dataxu’s Mike Baker

Nine years ago, a group of data scientists from MIT Labs formed a partnership to more fully explore the use of data science in advertising and marketing. 

From this, dataxu was born. “I think what is interesting about our starting premise was the idea that the world of media, marketing and advertising would benefit from stronger data analytics,” explained Mike Baker, Co-Founder and Chief Executive Officer of dataxu. 

In those early days, it was difficult to get upper management at media companies to think beyond the standard datasets because the business model greatly relied on syndicated data research to track the business. But today the use of data science, algorithms and multi-sourced datasets to track the media business has become, as he noted, “orthodox wisdom.”

Dataxu focuses on the value of advanced television, specifically connected TV, to enable advertisers to more fully and tactically reach their audiences across all platforms. His work with agencies has not only accelerated the formation of true cross platform buying and planning but also helps to herald a new way of thinking among digital-only buyers – that TV still has immense value and is vital to any media plan. 

Baker shared some of his candid thoughts on the subject.

Charlene Weisler: What type of company is leading the charge in advanced TV curiosity and adoption?

Mike Baker: The leaders in using technology are mid-market agencies, many of whom are seizing on connected TV in particular as an opportunity to grow a TV practice that they haven’t had previously. Notably, they are doing so through their own self-serve tool which is a do it yourself processing interface for data analysis. It’s powerful for a smaller agency that doesn’t have a large traditional planning and buying department for TV. Mid-market agencies have gotten on board early with self-serve tools that offer sophisticated data analysis and are currently investing aggressively.

The other leading group is direct-to-consumer companies, many of whom have maxed out on Facebook and Google Search. They are looking for new channels and new opportunities to bring their data-driven planning and buying to the richer palette of video and TV. What they find appealing are the digital characteristics of connected TVs, the ability to immediately understand who is exposed to an ad and connect that to sales and to quickly understand Return on Ad Spend. 

Weisler: What is the TV opportunity at large and what should every agency know, whether they are just getting started or currently immersed in Next Gen TV?

Baker: There is a very dramatic transition happening among viewers of TV as to how they’re choosing to watch TV which is increasingly on-demand, done typically through streaming. We talk about connected TVs which are the large TVs typically in the living room connected to a streaming device. So the first thing to note is that traditional linear TV audiences are declining. Which means that simply doing what you did last year will lead to a worse result for your client. 

We now see video as the fastest growing part of the media and digital marketplace. That growth is occurring through mobile devices for short form video and TVs for long form, high quality content. If you are an agency, more and more turns on your capabilities with data analytics for your point of differentiation and your ability to win new clients and retain valuable business. It’s a great opportunity for agencies to build a practice, get new customers and grow their businesses in an area that is up for grabs because data sits between connected TVs, traditional linear TV and digital teams. I find that larger agencies are having a political stand-off between these groups which gives the innovative agencies a leg up – the opportunity to integrate digital and linear to create more competitive solutions to their clients.

Weisler: For agencies just getting started, what's essential for them to know?

Baker: Most agencies aren’t aware that you can target specific audiences on TV. You can take cookie data or DMP data and translate that into streaming devices to import a digital audience over into dynamic ad insertion in long form TV content. But you need a tool to help you with identity management that is privacy compliant. Dataxu offers one, which has become one of the fastest growing parts of our business. It is now possible to translate traditional digital audiences that have been curated by DMPs into the new world of connected TV. 

Agencies just getting started also need to know that there are many premium programming brands available. The premium inventory on connected TVs - those familiar top tier programming names like NBC, Turner and Fox – is available for purchase programmatically. We at dataxu have created a special private marketplace directly with publishers to insure that the volume is there for advertisers who want to buy on a spot basis. This is incredibly easy to do compared to negotiating with a national network or even local scatter buys.

Weisler: For the most sophisticated agencies, what wins and challenges are they sharing?

Baker: What sophisticated agencies are doing is tackling the next key problem as viewership fragments between the set top box, streaming device and mobile phone. We look across the total viewership of TV audiences and understand, with great precision, how to maximize unduplicated reach of an ad message. TV has traditionally been the greatest vehicle for broad reach that makes consumers aware of new products and services. It’s still very powerful, but its power is winnowing as fewer people choose to watch traditional linear TV. So advanced agencies are using analytics to understand the unduplicated reach that can be brought to an overall TV plan by using connected TV. To do that you need to join linear and digital viewership data - something we do through Dataxu’s One View. The results are powerful. We are working with an agency that has a large automotive client. They were able to predict the growth in unduplicated reach of a new model launch ad by about +20% through a connected TV investment. That investment was shown only to households that hadn’t viewed the ad through a traditional TV connection. 

Weisler: Do you see key differences between agencies in TV implementation?

Baker: Definitely. Agencies that have integrated and trained their digital and traditional TV buying teams seem to be ahead of those who are struggling with siloed teams. In 2019 you’ll increasingly see the TV teams re-formed to bring the digital know-how and the traditional linear expertise together.

Weisler: There's been A LOT of Buzz around LiveRamp's Identity Link launch. Can you explain it and how it empowers digital and TV buyers across brands and agencies?  

Baker: Identity Link enables brands and agencies to target specific consumers in a privacy compliant manner with a high degree of confidence. Dataxu’s partnership with LiveRamp makes us the only demand side platform that can translate those identities and execute them in digital and TV without losing any of the audience size. We are seeing a lot of advertiser interest, especially among Retailers and Financial Services companies who have evolved extensive first party databases. Oftentimes these kind of data-driven firms want to use their CRM files to build media audiences whether that’s a one-to-one basis or as a seed for creating lookalike audiences. For these kind of advertisers, the ability to move from data into action with the LiveRamp/dataxu partnership is unique and powerful. We look forward to seeing this initiative continue to scale.

This article first appeared in www.MediaVillage.com

Using Advanced Technologies in Advanced Television. Interview with dataxu’s Sandro Catanzaro

There is a lot of talk about the introduction of AI and machine learning (ML) to better understand human behavior. Now, as these protocols move into the media industry, we are finding more companies employing AI and ML to better target consumers over time. 

Sandro Catanzaro, Founder and Chief Innovation Officer at dataxu describes himself as a serial entrepreneur. He was one of the co-inventers for dataxu’s real-time optimization algorithm, based on research he did at MIT. Here is an overview of his company, the world of advanced and addressable television and the data work being done in the industry.

Charlene Weisler: What is your definition of advanced TV? Is it the same as addressable?

Sandro Catanzaro: Advanced TV is TV advertising that is purchased on an impression basis using advanced audience data and software automation, creating additional value for both the buy and sell sides of the transaction. Addressable TV is a form of advanced TV where households are targeted on a one-to-one basis via cable and satellite set-top boxes, Smart TVs and OTT devices, but not all advanced TV is necessarily addressable. Other forms of advanced TV may be based solely on automating the purchase process, but still displaying ads on a one-to-many broadcast basis.

Charlene Weisler: What are the challenges in advanced TV?

Sandro Catanzaro: One of the primary challenges in advanced TV right now is the ability to target and provide attribution for OTT campaigns. This form of TV is accessed by the viewer via internet enabled televisions and streamed either live or on-demand. The connected nature of OTT makes it very similar to digital video, but as these ads run on actual TV screens and not traditional digital devices (PCs and mobile phones), the typical digital markers (cookies and mobile IDs) are not available for identification, making advanced targeting difficult.

Charlene Weisler: How can they be overcome?

Sandro Catanzaro: This issue can be overcome through new forms of identity management made possible by cross-device graph technology. A device graph is the unification of several otherwise separate devices, such as a laptop, mobile phone, tablet and smart TV under one unique household. In the real world, these devices don’t exist in a vacuum; they are linked through ownership and usage and can be used to understand the full context of a person’s digital footprint. By including smart TVs and OTT devices in a device graph, marketers are able to leverage advanced audience data, built using legacy digital IDs, to enable addressable targeting on televisions, even though these legacy IDs are not present.

Charlene Weisler: What metrics do you use?

Sandro Catanzaro: Advanced TV is typically purchased on an impression basis as opposed to ratings, but it is possible to provide traditional TV metrics such as GRP. However, we find that marketing professionals are also frequently leveraging more detailed metrics to prove success, such as lift studies which compare conversion rates of exposed populations versus control groups. This is made possible through addressable forms of advanced TV and device graph technology, where specific viewers are directly targeted and others are intentionally excluded, in order to compare their actions across all devices, and in the real world, after having viewed the ad.

Charlene Weisler: What is dataxu?

Sandro Catanzaro: dataxu is a software company that helps marketing and media professionals use data to improve their advertising using AI to optimize ROI on marketing investments. dataxu ingests first-party data (e.g., customer purchase information), matches it up with many other kinds of data across devices and identifiers and creates a customer machine learning classifier for each campaign that invests more budget into what’s driving acquisition and less into what isn’t. We offer three products: TouchPoint™, our demand side platform (DSP); OneView™, our identity and data management platform; and ClearSight™, our advanced analytics and data visualization product.

Charlene Weisler: Where does it reside in the ecosystem? Who are your competitors?

Sandro Catanzaro: Sandro Catanzaro: Some of our products, such as TouchPoint™, compete with other DSPs, including The Trade Desk or MediaMath, but our analytics, cross-device identity management and advanced TV capabilities stand alone.

Charlene Weisler: How will GDPR impact your side of the business?

Sandro Catanzaro: dataxu has always placed the highest value on transparency, quality and privacy. We have had a dedicated task force for GDPR since it was announced. We expect GDPR to have an impact on the entire industry, not just dataxu; however, we know we are prepared and well-positioned to face the challenges coming. We were fully prepared when GDPR came into effect; we are active in industry-wide schemes (such as the IAB Technical Consent Program), are a registered vendor with the IAB Europe and are members of self-regulatory organizations [e.g., Network Advertising Initiative (NAI), Digital Advertising Alliance (DAA) and European Digital Advertising Alliance (EDAA)] to make sure our customers are best placed for success under the new rules.

Charlene Weisler: What does the future of TV buying look like 3-5 years from now?

Sandro Catanzaro: In the next three to five years, we expect more and more people to follow the growing trend of taking their viewership to connected devices, not only leading to more innovation surrounding those devices, but creating a larger pool of inventory for advertising to be served. We expect that in this time period all major TV programmers will have made their content available via connected devices and most will be providing marketers access to this advertising via programmatic channels. The largest portion of TV buying will still operate through legacy methods, such as upfronts, but advanced TV will soon constitute a much larger piece of that pie in the near future.

This article first appeared in www.Mediapost.com