Understand that programmatic advertising is the biggest change since TV. It drives marketers into data driven marketing and researchers into real time systems.

1. Why programmatic marketing changes
everything (and, what it means for
researchers)
Joel Rubinson, President
Rubinson Partners, Inc.
joel@rubinsonpartners.com
Blog.joelrubinson.net
Twitter: @joelrubinson
October, 2015

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Traditional media buying
Media accumulates an audience Marketers seek consumers
Nielsen ratings Overall, within
demo
Profiles of who watches
Cost for a 30” spot
Who does Unilever want to
reach with their message
 Audience accumulated by media
 Media company responsible for knowledge about the audience
 Indexing
 Intuitive matching of audience profiles and marketer segments, aided by optimization
software
 Direct deals with commitments

3. Property of Rubinson Partners. Not to be shared without permission
Traditional media buying
Media accumulates an audience Marketers seek consumers
Nielsen ratings Overall, within
demo
Profiles of who watches
Cost for a 30” spot
Who does Unilever want to
reach with their message
 Audience accumulated by media
 Media company responsible for knowledge about the audience
 Indexing
 Intuitive matching of audience profiles and marketer segments, aided by optimization
software
 Direct deals with commitments
All of this changes in a
All of this changes in a
programmatic advertising world
programmatic advertising world

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Quintessential programmatic…real time
bidding (RTB), open exchange
1. A user requests a webpage which generates an ad
impression serving opportunity
2. Publisher decides to put this impression up for bid via
RTB
3. If the advertiser knows something about this user and
they are valuable to them, they bid for the right to serve
an impression
4. The winning bid serves the creative asset of their
choosing

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Programmatic marketing is a big deal
 eMarketer pegs programmatic at $15 Billion this
year, having grown 50%
 Carat reports that, in the US, programmatic
transactions will account for 52% of non-search
digital advertising spend.
 The marketer’s dream…serve the right message
to the right user at the right time on the right
screen.

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Programmatic is like picking the
cashews out of the bowl of mixed nuts*!
Advertisers can pick the audience
they want to serve impressions
*Metaphor courtesy of Josh Chasin, Chief Research Officer at comScore

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Programmatic is a sea
change in the way
marketing works
1. The advertiser amasses the audience based on their own ad
serving rules…bottom up approach
2. It is now the advertiser’s responsibility to know each
audience member
3. All of this is driven by data, the new competitive fuel
4. Better fuel = better performance, making data its own
imperative.
a. Boosts the value of first party data.
b. Drives marketers to connect the screens using a persistent ID
c. Makes content marketing and “always on” marketing strategies
much more important.
d. Drives media practices to embrace programmatic everywhere

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The power of data…hypothetical
 A browser who, in reality, is a male millennial who buys
tooth whitening products, visits Huffington Post, and the
instance is put out for bid.
 Procter: has this user in their DMP because they visited
their web properties and they signed up for e-mails
(registration gives accurate demos—first party data.)
Working with Datalogix, they know this “browser” buys
tooth whitening toothpaste via frequent shopper data.
 Colgate: Working with a DMP and data aggregator, they
believe this is a male aged 35-44.
 Result: Procter will win this bid because what they know
about the user makes them more valuable. Marketing
efficiency comes purely from the power of data.
 If this is repeated over and over, Procter will have a huge
marketing efficiency advantage over Colgate, over and above
any issues regarding the strength of Crest vs. Colgate

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There is only one way this can go…

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Programmatic change table
Traditional Programmatic
Media owns audience…top down process Advertiser accumulates audience…bottom
up process
Media must know audience Advertiser must know something about
each user
Buys are pre-established and advertising is
scheduled
Advertising can be adjusted in real time by
changing bidding and ad serving rules
Buying on context Buying on user characteristics
Decisions based on generalizations Decisions based on tactical user data
Does NOT require data driven marketing DOES require data-driven marketing
Traditional research can guide this Traditional research disconnected from this
process
Analytics are retrospective and descriptive Analytics are predictive

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Programmatic implications for
marketing research
Traditional Programmatic
Media owns audience…top down Advertiser accumulates audience…bottom
up
Media must know audience Advertiser must know something about
each user
Buys are pre-established and advertising is
scheduled
Advertising can be adjusted in real time by
changing bidding and ad serving rules
Buying on context Buying on user characteristics
Decisions based on generalizations Decisions based on tactical user data
Does NOT require data driven marketing DOES require data-driven marketing
Traditional research can guide this Traditional research disconnected from this
process
Analytics are retrospective and descriptive Analytics are predictive

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In a programmatic world, Marketing research’s
role is to keep marketing strategic, productive,
and centered on the human
 “I believe in the power of connected ideas”
Christian Kugel, Director Marketing Research
and Consumer Analytics, AOL
 But marketing research must also be
actionable at optimizing tactical action
Otherwise, it will be dismissed as irrelevant

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Segmentation:
Are your segments
“findable”?
Can you build
good lookalike
models?

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Brand equity:
Can you create predictive models
using profiling attributes?

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Brand equity modeling must include
response modeling
 BEijt= f(Aijkt)
Predicting brand equity as a function of
attribute ratings
 R0,1=f(DPi,T,S,…)
Predicting response…clicks or brand equity…
from digital profiling, time of ad serving,
screen, etc.

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So what’s missing?

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Top priority 1: integrate survey and digital
data
 We must learn how to integrate digital and survey data together, or what I
think of as, “Going beyond the survey”

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Enriching survey data
Lightspeed and GMI offer the
ability to survey people who can
be matched to digital data
profiles
You can survey people whose
digital behaviors are known

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LiveRamp

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Top-priority 2: Real-time data systems
 By integrating digital profiling
information, marketing
research can improve media
agency bidding and targeting
rules while in-flight
 This can improve marketing
productivity by 10-20%

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Top-priority 3: connect the screens
 Increasingly, the consumer media
day includes use of multiple screens.
 To fully understand the consumer
journey, research must connect use
across screens in a consumer-
centered way

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Top-priority 4: adopt a predictive
mindset
 Integrate digital and social data metrics
that can have predictive value and then
build these linkages
 Think t+1, not t-1.
 Foresight…see what is coming next

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A predictive mindset
Traditional marketing research:
questions about the past
Data science: questions about the future
Campaign assessment Campaign optimization
What is the profile of our current customers? How do we identify lookalikes for our current
customers for ad targeting purposes?
What brand attributes define our positioning? What targetable behaviors, preferences and
conversations in social and digital data identify
those most likely to respond to our advertising?
What media expenditures most correlate to
sales?
What message delivered on what screen, in what
context, to which user is most likely to generate
positive response?
What is the mix of products people buy on given
shopping trips?
What should the retailer overstock for the
upcoming storm?
What is our trial forecast? How do we target likely triers?

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And what might be coming next?
 Programmatic TV is here…it affects a small
percent of inventory TODAY, but it is coming so
get ready for the avalanche
 IoT use case: digitalizing the home
replenishment process

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An amazing opportunity to create
disruptive offerings
http://blog.joelrubinson.net/2015/07/what-
marketing-research-must-do-differently-in-
a-data-driven-age/

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 Joel@rubinsonpartners.com
 Blog.joelrubinson.net
 Twitter: @joelrubinson
Thank you!