rtb update 2: richard foster, krux

© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution

How can Publishers and Advertisers work with data and DMP's

Danish RTB Update Copenhagen, August 28 2013

© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital2

Discussion topics

Krux approach to Big Data What can Krux do for Publishers What can Krux do for Advertisers How does Krux integrate with SSP’s & DSP’s Thoughts on Data Ownership

Krux approach to Big Data


Audience buying is mainstream – marketers now prioritize audience above placement, price, and inventory guarantees

Source: Forrester June 2011


The market’s shift to audience-based advertising is also catalyzing spend shift to ‘programmatic’ RTB channels

Source: IDC, October 2012

RTB spend is going from zero to $5B in less than five years. RTB-direct is on pace to hit $1B in 2016, 13% of RTB activity overall. Through private exchanges (e.g., NBC UAP, WSJ AudEx), publishers are

increasingly using programmatic channels for direct sales.

© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution follow Krux on Twitter: @kruxdigital

Krux brings to bear the background, focus, and technology required to help our clients thrive in a data-driven world

Pioneers in digital media technology and monetization

Unmatched experience with digital media leaders

Unparalleled platform breadth and flexibility

Monetize

Manage Protect


Krux’s cloud-based DMP helps companies deliver more relevant, more valuable advertising, content, and commerce

Protect: We help detect and prevent theft of consumer cookie data

Manage: We help make audience data actionable, web pages faster, and website management more efficient

Monetize: We help clients representing >720M users worldwide create:

- more valuable advertising

- more relevant content

- more effective commerce

What can Krux do for Publishers?


Media owners are feeling pressure from all sides as the entire market becomes data-driven and audience-aware

Enabling arbitrage & eroding value

Networks, Platforms, Exchanges

Bypassing direct sales channels

Agencies, Marketers, DSPs

Increasing focus on privacy

Regulators, Industry Groups

Differentiated products

Competing Publishers


Given fundamental market shifts, leading sites must harness audience data to remain competitive and grow their business

InsightMitigate data & revenue risks

AnalysisRefine product & sales strategy

ActionPursue new market opportunities

Investment in data protection solutions

Protectionist approach to partner Ts & Cs

Aligning business practice with privacy policy

DMP investmentOrganize/activate 1st, 2nd

and 3rd party data assetsPursue audience-aware

product and sales strategy

Programmatic direct salesRTB ‘reach extension’Private marketplaces Data-only salesContent targeting


Media owners have an enormous amount of largely untapped consumer insight at their fingertips

Users’ content affinity, interests, and intent.

Select 3rd-party data sources to enrich 1st-party insights

Referral URL and keyword, exposing where users came from and why

Subscription and registration information

Interactions and engagement with ads and content

Social insights – likes and shares


Harnessing the power of that data leads to improved pricing, increased sell-through, and revenue growth

EXTEND your audience reach across the web

GROW your audience & deepen engagement

Use data to ENHANCE existing products

EXPOSE actionable insights about your audience

Use data to CREATE new products and packages


Publisher benefits from using a DMP

Improve CPMs on your direct sold inventory

Create additional ad inventory with audience extension

Increase CPMs on programmatic-sold inventory

Create smarter ad products: include re-targeting, engagement

Grow e-commerce revenues


Impact

Example: A social content publisher uses Krux to open new spend categories and deliver more valuable advertising experiences

Situation No reliable, efficient process for audience

discovery and segmentation No holistic data and targeting strategy

- Discouraged sales team adoption of targeting - Limited data-driven revenue opportunity

728x90 300x250 300x600Baseline eCPM eCPM with Krux

220% lift

269% lift

93% lift

Response Consolidated 1st party data and

energized audience assets with 3rd party data sources

Created ‘audience-aware’ product strategy- Smarter, better performing products - New products to open non-endemic ad spend - Stronger user experieinces


Example: A large magazine publisher uses Krux to extend a key audience segment across the rest of their inventory

Situation A multi-site publisher has a valuable 1st party segment that always sells outResponse Krux DMP used for segmentation and targeting to access on other sites in their

networkImpactSmarter, better performing products – decreasing the publishers’ reliance on

remnant channelsNew offerings grew previously limited inventory base


Example: A woman’s health & beauty site uses Krux to extend a key audience segment across off-site exchange inventory

Situation Publisher has valuable 1st party audience that sells out on the originating siteResponse Krux DMP used for segmentation/targeting to access this audience elsewhere Krux identified & targeted those users as they traveled across other quality sitesImpact The publisher has created an ‘audience-aware’ product strategy- Increasing the publisher’s available inventory of hair care users- New offerings grew a previously limited inventory base

What can Krux do for Advertisers


Many Publishers are Advertisers

Many Krux clients operate branding and direct response campaigns- Prospecting: attract new subscribers to paywall products

- Retention: to target renewing or lapsed subscribers

- Re-target users abandoning shopping baskets on e-commerce areas of site

Previously, these campaigns may have been outsourced- Internal marketing teams starting to use DMP capability to combine

customer data sets with precise audience targeting

- On-site and increasingly, across Ad Exchanges

- Krux can create safe-site lists for targeting using the clients own audiences browsing habits


Advertiser benefits of using a DMP

Increased insight into the audiences consuming your sites

Integrate all data sources to build a cohesive consumer experience

Re-targeting high value audiences with audience extension

Retain control over data assets and share only the data you want

Optimise site content, manage latency issues and compliance programs


Action

The more an Advertiser knows about how users interact with its brands the better positioned they are for product line growth

Better understand their usage of your brands across mediums

So you can…

Tailor campaign advertisements to each segment of users

More specifically target offers for renewals, heavy site users, cross brand promotions etc…

Expand known data points about registered users/subscribers

Customize your product offerings based on your most loyal users actions

Merge users’ mobile and online behavior with their offline database record


First-party consumer and third party relationships provide many sources of, and uses for, audience data

Third-Party Data Providers

Privacy Tools

Privacy Settings

Registration & Purchase

Web & Mobile Activity

Site Analytics/

MVT

Data Elements

Publishers, Partners

CRM/Loyalty programs

Re-Targeting solutions

DSP’s/Trading Desks

Content Targeting

Actionable Segments

CMS

How does Krux integrate with SSP’s and DSP’s


The Krux platform allows a web-site operator to capture, control, and connect 1st, 2nd, and 3rd party data to create audience value

ConsumersKrux Platform

Audience Data Elements

Web Analytics

3rd partyData

AgencyData

Content and Ad Servers

Offline/CRM

Registration Data

Data Transfer Files

Segments in Key Value Pairs

Ad Selection

Audience Data Elements

Page and user data

ClientWeb Site


Interchange Extension

Interchange O&O

Interchange Marketing

Krux Interchange – flexible market access to match to clients’ business practices, revenue goals, and privacy policy

Interchange Connect

Sharing data with trusted partners

Targeting first-party media

Targeting first-party commerce and marketing

Exchange-based media buying

CMSCRMSubs/Reg


Integration Use Cases

There are 2 ways in which the Krux DMP can integrate the audience segments managed in Krux into an SSP or DSP:

Client-side: in this mode of integration, the SSP/DSP provides Krux with a datasync pixel using Krux SuperTag

Server-to-Server: in this mode of integration, Krux and SSP match users using a Cookie-Matching process and then Krux provides a data file via SFTP or Amazon S3

Bi-directional relationship: Krux ingests ‘raw’ ad server impression log files via API


Example SSP integration: passing user segment information to Rubicon and ad serving logs to Krux

26

Users

Krux Platform

Partner Sites(no Krux

Control Tag)

Ad Serving Logs for Yield Analytics

Ad Selection

Page and user data

Partner Sites(with Krux

Control Tag) Page and user data

Krux Control Tag fires on site Reads/assigns cookie Loads core code Fires SuperTag tags Collects data Reads context information Assigns context categories

Krux pixel fires to send data to Platform

Segment Membership,

User ID

Ad Selection

Network tag fires in partner ad server

Krux Control Tag fires from network tag Reads/assigns cookie Loads core code Fires SuperTag tags Collects data Reads context information Assigns context categories

Krux pixel fires to send data to Platform

Thoughts on Data Ownership


Who owns the data

There is no single, simple answer- A possible definition: ‘Ownership’ can be attributed

based on how the data is being used- Qualifying statement: the ability to use that data does

not necessarily imply ownership!

Example 1: Advertiser re-targeting: - Advertiser-owned data- Media owner is only providing inventory/safe

environment for campaign delivery


Who owns the data

Example 2: Publisher trading data in private marketplace- Publisher first party data being bundled with ad

inventory and sold in a direct deal- Agency can use the data (possibly lots of times!)- Publisher needs to have the right DMP in place to

retain control- And, the Publishers needs to have a data strategy:

Segments with built in expiry date (e.g. in market for credit card)


Who owns the data

Example 3: Third-party data provider- Aggregated first party data- Value is created in the aggregation so the Data

Provider is the owner

Looking forward: the adoption of DMP’s by media owners and advertisers may level the playing field for illicit data collection/harvesting- Uses cases/strategy will be key to defining value &

ownership

Thank you for listening

31

© 2013, all rights reserved | Proprietary & Confidential, Krux Digital Inc. | Not for distribution

Any questions?

Richard [email protected]@richardpfoster

Skype: richardpfoster

mailto:[email protected]


Krux’s distinguishes itself from the competition in six key ways

Flexibility

Synthesis

Real-time

Big Data

Big Analytics

Security

Highest degree of flexibility in defining and operationalizing consumer segments Client-driven taxonomies and event-based framework for measuring engagement

Extract-Once, Load-Everywhere model brings catacombed datasets online in days Schema-on-read approach ingests data in its preexisting structure (or lack thereof)

Only provider with real-time execution, segmenting users in-session in <75 ms True real-time decisioning informed by client-specific business rules and use cases

Ground-up integration of Big Data technologies (Hadoop, Cassandra, Hive, Redis) Architected to support data volume/velocity/variety for the emerging consumer web

Classification/clustering/discovery to deliver right time/right place insight and action Exposing what consumers want even when clients don’t know what questions to ask

Only provider to deliver first-party web data security (and a pioneer in the field) Only provider to encrypt via dynamic, transient, symmetric public-private keys Only provider with security model premised on data segregation not data merger

rtb update 2: richard foster, krux

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