Operative Blog

In this afternoon session, Product Manager Andrew Sullivan explores the concept of multi-dimensional inventory for digital publishers.  Decrementing inventory, segmenting audiences, packaging products…..these challenges affect the entire organization and most specifically, the ability to optimize revenue.

What business goals are impacted by your ability/inability to perform multidimensional inventory?

- Selling out of one area of inventory impacts other areas of inventory: this is a tough message to convey to Sales

- Illustrating to sales the full spectrum of inventory they are selling; and reasoning behind why certain pieces of inventory have a higher rate than others

- Ability for sales to communicate the value of their audience to the advertiser/agency

- Packaging strategies…looking at what you can encourage sales to lead with while making good use of the inventory

What systems are you using today to capture and aggregate the inventory?

- Ad server logs

- Excel Sheets

- Rapt

Who interacts with inventory in your organization? What are some of the typical roles?

- Ad Ops Team

- Finance Team

- Analytics Department

- The Exec Team

- The “Ad Product Team”- they focus on product analysis and performance

- Delivery Managers

- Sales reps and Sales planners

- Analytics Teams

What is CRITICAL to your business when solving for MD inventory?

- Compatible with MULTIPLE ad servers

- One data set to have transparency into all the inventory sources

- Quick and easy way to pull the data, aggregate it, and help the product, sales, marketing and ops team make sense of it

- Ability to generate accurate inventory reports

- Flexible rates, packaging

- Not using Excel anymore! It’s too manual and publishers need to move faster!

When you consider their importance, it seems surprising that ad tags aren’t shown more love by publishers.  They should be. If a site is properly tagged, it can generate far more revenue than it otherwise would.   Simply put, every subpar ad tag causes a publisher to lose potential revenue.  Here’s why:

Communication between a website and an ad server

Ads that command the highest CPM are those that are best targeted to an audience.  I’m sure Nike, Vonage or any other advertiser will pay more for a campaign that delivers results in the form of clicks and actions and then conversion. The best way for a publisher to ensure that its audience is attracted to the ads being displayed is to use the site content to gauge the interest of each visitor. For sites that require user registration, additional information, such as age and gender, may also be available.

All of this valuable information is useless, however, if it doesn’t make it into the ad server.  Building an advanced ad tag that passes along all relevant information allows the ad server to present the most appropriate ad to the user. Considering that the ad tag is the main source of communication between a website and an ad server, it makes sense that a suitable ad tag is needed in order for the server to perform most effectively.

My content is the best

We all know that not all content is created equal.  What is truly helpful is to be able to identify which content performs best. Knowing the patterns of visitors on a website allows sales teams to best match campaigns to content. For example, ads that appear on pages featuring content that engrosses visitors, such as news articles and movie clips, may not receive as many clicks as those on pages whose content is of a more general nature. The performance of low-click content makes it unsuitable for CPC campaigns.  When the content type is included in the site tag (ex: sect=news or sect=video), the publisher can then decide to exclude these sections from CPC campaigns and utilize them for branding campaigns, which do not require high click rates.  Rather than let the low click-through rate of those sections drag down the average performance of the site, the publisher is able to separate them out and sell the high-click content at a premium.  In this way, the publisher is able to best match content to advertisers and maximize revenue.

Trying to sell – Bump up the appeal

When a website is outfitted with site tags that take into account useful information – such as user details, page position, and site content – the sales team is able to sell more targeted campaigns at higher rates.  Being able to differentiate content allows for more flexibility when selling inventory.

Reports, Reports and more Reports!

Even after an ad serves, an ad tag’s job is not done.  Detailed ad tags are able to enhance reporting capabilities and make delivery reports more robust.  The information contained in the reports is useful to both advertisers and publishers.

Advertisers love detailed reports because they provide the advertiser with the ability to more effectively optimize a campaign.  Many long term campaigns rely on optimization to attain the results that an advertiser is seeking.  Publishers that offer detailed reporting are attractive to advertisers because they are more in control of how their money is being spent.

Consider this scenario:  A publisher  MYSAMPLETAG.COM (fake name) with advanced ad tags is able to target certain ads to a website that features several sections, each with different user demographics.  When the advertiser (lets say  TOYSRUS) examines the detailed delivery report, they notice that creative featuring a puppy performed particularly well on a section of children’s content whose visitors are between the ages of 6 and 11. Armed with this information, the TOYSRUS chooses to run the puppy creative at a higher rotation in that section, increasing the click rate of the campaign. The robust reporting that sophisticated ad tags can offer allows for greater campaign optimization and can enhance the performance of the website.

Let me tell you …

A very good example of the company  that certainly knows the value of an ad tag is NBC Universal’s Local Integrated Media.  Their websites span many different domains and markets and they cater to the tastes of many different audiences. Through their systematic and organized site tags, they are able to provide detailed information which enables them to make the most of the content that they produce.   Their careful attention to their ad tags has helped them make their complex network manageable.

Net-Net

Properly tagging a website is an investment that is well worth making. The returns to be gained from targeted selling and advanced reporting are significant for publishers and should not be overlooked. Targeted selling allows publishers to properly match advertisers to content, ensuring high performance that is valuable to advertisers.  Additionally, advanced reporting allows for improved campaign optimization and boosts performance even more. Every site that is not adequately tagged is not living up to its full potential.

**If you are interested in retagging your web site, or would like to learn more about working with an Operative re-tagging strategy consultant, please contact Greg Carr at 212.206.4762 or gcarr@operative.com.

So how are the explosion of alternate platforms changing the landscape of digital media and what impact is this having on the underlying data? Is there a sea-change going on that is altering the face of online marketing or are platforms evolving independently of each other? These were some of the questions our panel sought to explore in
Advertising Analytics and Contextual Media: Social Media, Mobile, Search, Video Search and HyperTargeting. Couple of people couldn’t make it – we ended up:

• Michael Boland, senior analyst and program director, The Kelsey Group, Moderator
• Paul Edmondson, CEO, YieldBuild
• Dan Halyburton, President, Radio Time
• Dr. A.K. Pradeep, CEO/Founder, NeuroFocus
• Benjamin Reid, VP, Sales Engineering, Operative

We had a number of interesting perspectives from the high tech (NeuroFocus) to traditional media (RadioTime) to networks (YieldBuild) to process and infrastructure (Operative).

And now for something completely different – no fun following Dr. Pradeep. We were treated to a demonstration of the NeuroFocus technology which measures brainwave activity of a test subject viewing advertising. The test person put on a ski hat with 22 electrodes connected to their brain and watched a Mountain Dew commercial. The audience observed in real-time when the user was highly engaged with the creative and when attention fell off. Unclear how this is used in the digital marketing space but certainly an entertaining demonstration.

A lot of conversation revolved around the relatively recent phenomenon of having more data than we collectively know how to manage. This can range from the buy side having multiple exposure, engagement, performance, brand, interaction, conversion, loyalty metrics all captured in a single campaign, to the sell side managing inventory, sales effectiveness, discount management, sell-through, campaign status, discrepancies, page and slot effectiveness, invoicing etc. How do we make sense of it. We all agreed that building better bridges between buyer and seller are important as well as agreeing on shared success metrics. We focused on different routes though – YieldBuild took a network and efficiency-centric view, while RadioTime focused more on organizing an audience to the marketplace. Operative looks at these challenges through the lens of open platforms that foster collaboration and clearly defined processes. We also spent some time on how the offline and online worlds are converging. There are clearly hurdles to be overcome in the internal structure of many org on both buy and sell side but equally important is the fact that the currency and processes each platform employs are dramatically different. As an industry, we will need to either harmonize the metrics and protocols of media sales or build bridges that will span both worlds to facilitate the process for all parties internal and external.

Another great panel I caught was the Advertising Innovation! Broadband, Mobile, In-Video, In-Game, Social Networks, Blogs and Podcasts http://www.digitalhollywood.com/09DHSpring/DH09Sp-Thurs6.html

• Jon Aizen, founder and COO, Dapper
• Matt Britton, founder and CEO, Mr Youth
• Chris Colinsky, Executive Creative Director, WhittmanHart
• Marissa Gluck, founder, Radar Research, Moderator
• John Montgomery, Executive Creative Director, Threshold Interactive
• Pete Vlastelica, founder and CEO, Yardbarker

This was an agency-heavy panel rounded out with some publisher and network representation. The focus was on where and if advertising works in a social network environment. The first consensus is that it’s not about performance, it’s about interaction. This is kind of a new bucket since we’re not really talking about transacting in volume (people are on SN for the connection and tend to stay with the content) or a large branding opportunity. But there are conversations happening between brands and end users. Couple of great takeaways:

Q: Who controls brands? Consumers? Marketers?

A: John Montgomery – Companies create brands. Consumers help SHAPE brands. The process is usually started with some internal ingenuity. Consumers create trends, not brands.

Q – How can publishers position their audiences differently to be part of the conversation?

A: John Montgomery – The better agencies know what’s coming down the pike the better they can plan against it
Matt Britton – more brands are thinking about becoming publishers. No one knows their audience better than publishers. Work with agencies to understand what makes your audience unique

From where I sit, this is just another reason that Ops should be sitting at the table with Sales/Planning and Product on regular basis, helping shape the innovation that can capture new campaigns in a highly competitive marketplace. Ad networks are definitely a key part of the revenue mix but ensuring that your company is driving new ideas that can be executed against flawlessly can make all the difference at the end of the quarter.