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Programmatic Advertising
Customized for Travel
October 2013

Tanja Sanders
Managing Director Benelux, Nordics, ROW
Real time ad market today

Programmatic advertising
and big data have
disrupted the industry:
Greater campaign efficiencies
Improved ROI
The programmatic opportunity

10x
4x

RTB Spend
Worldwide RTB-based spending will grow from
$2.7 billion in 2012 to $20.8 billion in 2017

Real-Time Bidding in the
United States and Worldwide,
2012-2017 (Sep. 2013)

~2x

Mobile RTB Spend

Video RTB Spend

Mobile RTB spend to quadruple in
2014, to reach $1.9 billion by 2016 (US
only)

Video RTB spend to nearly double in 2014,
to reach $1.7 billion in 2017 (US only)
The programmatic opportunity

New “kids”
on the block

Reportedly
coming next
Real time ad market today

However, it’s
a compromise

Knowledge is not shared with the true owners of the data

Campaign customization is limited
Real time ad market today

Limited campaign

customization
Little ability to customize campaigns to meet
specific business and branding goals
CUSTOMIZING PROGRAMMATIC
ad campaigns in travel

FAMILY
PLANNING
ANNUAL
HOLIDAY

LOYALTY CLUB
MEMBER

UPGRADED
BUSINESS
TRAVELER
Challenges of real time travel advertising

Leveraging BIG data
which is even bigger in travel
Keeping brand top-of-mind during
prolonged decision-making process
Ultra-dynamic verticalNeed for great degree of flexibility
THE LONG JOURNEY OF TRAVEL CONSUMERS

67
DAYS

26.3
SITES

60.4 VISITS

OVER 27.1
SESSIONS

SPENDING TOTAL OF 4 HRS 48 MINUTES PRIOR TO PURCHASE

finding the right ad mix throughout
this journey is a challenge
Source:
Business-driven customization in travel

Adapting programmatic campaigns to fit an
advertiser’s unique business & branding goals

Prospects
Inspiration

Awareness
over time

Customers
Short term
cross-selling

Acquisition

Ancillary
revenue

Long term
repeat purchases
Loyalty club
acquisition

Incremental revenue =
Acquiring new business +
maximizing value of existing business

…and integrating them throughout the entire programmatic ad campaign chain
Business-driven customization in travel

…and integrating them throughout the
entire programmatic ad campaign chain

Customized
business-driven
segments

Customized
creative

Customized
pricing models

Customized
optimization
models
Customized segments

Pinpoint targeting
Consumer journey
Hotels, packages, flights
User activities
Engagement
User value
User geo location
CRM Data
Customized segments
Recommended retargeting segmentation plan in line with business goals
Incremental
revenue

Inspiration
Awareness

Awareness
over time

Acquisition

Acquisition

Acquisition

DEFAULT

PROSPECTS

HIGH VALUE
TRAVELERS

INTERESTED
FAMILIES

MIDWEEK
SHOPPERS

CHRISTMAS HOLIDAYS

ADD SEGMENT

Repeat
purchases

ALL USERS

Incremental
revenue

RESEARCH PHASE
USERS

ALL USERS
LAST MINUTE DEALS

Incremental
revenue

Incremental
revenue
Ongoing

Seasonal
Customized creatives

Non-template, fully customized creative
Segmented retargeting campaigns

Prospects

Segment Price

Interested families

Segment Price

B

A

Personalized products

Midweek shoppers

Segment Price c

Seasonal retargeting

Segment Price D
Customized optimization models

Segment configuration

Man

Segment pricing

Ongoing optimization

Actionable data insights

Fine-tuned micro
segmentation

Dynamic creative
optimization

&
Machine
Highly efficient programmatic
media buying

Lifetime value
optimization
Taking a programmatic travel campaign to the next level

The impact of CRM
data in travel:

Ability to leverage highly valuable data
(e.g. data related to loyalty club & product margins)
Ability to accurately target users based on long term consumer view
The end result
Differentiated programmatic campaigns with unique
pricing, creative, messaging and sequence
For every user segment.
Success Story

0.64%

5.2%

5-6x higher than
standard display

Significantly higher
than site average

CTR

PCCR

Based on over 7 million impressions
“We are very pleased with the solid performance we keep on
seeing with myThings. Coupled with its dedicated account
services, we consider myThings to be an essential tool for
increasing conversions in the travel vertical."

”

Wesley Koolen

Roomport Internet Manager
New approach to display advertising

From

black box
to

glass box
Enhancing transparency

Segment-level audience
transparency

Performance data

Creative performance

Analytics and Insights
Enhancing transparency

Media transparency

Domain-level
performance

Top publishers
per network

RTB
win rates

% of new customers
from each media channel
To summarize

Current state
of real time
ad market:

Programmatic advertising
disrupting industry

Nonetheless, it has created
two key pains: uniformity
and limited visibility

Customizing programmatic
travel campaigns

Taking it to
the next level:

Providing complete visibility
into campaign
About myThings

150+
employees

5 billion
impressions
per month

60+
engineers, PhDs
and data analysis
experts

7 billion
RTB requests
handled per day

100%
proprietary
platform

300+
Partnerships with
premium media
networks & sites
Offices in 15 cities serving 30 markets
AMSTERDAM MILAN
NEW YORK
SCOTTSDALE MADRID

PARIS

LONDON BERLIN
MUNICH

SAO PAULO

STOCKHOLM
WARSAW

TEL AVIV
MOSCOW

TOKYO
Thank you
Email: t a n j a . s a n d e r s @ m y T h i n g s . c o m
Mobile: 06 4 4 - 2 9 5 4 1 1
Twitter: @ t a n j a s a n d e r s

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My things etravelsummit

  • 1. Programmatic Advertising Customized for Travel October 2013 Tanja Sanders Managing Director Benelux, Nordics, ROW
  • 2. Real time ad market today Programmatic advertising and big data have disrupted the industry: Greater campaign efficiencies Improved ROI
  • 3. The programmatic opportunity 10x 4x RTB Spend Worldwide RTB-based spending will grow from $2.7 billion in 2012 to $20.8 billion in 2017 Real-Time Bidding in the United States and Worldwide, 2012-2017 (Sep. 2013) ~2x Mobile RTB Spend Video RTB Spend Mobile RTB spend to quadruple in 2014, to reach $1.9 billion by 2016 (US only) Video RTB spend to nearly double in 2014, to reach $1.7 billion in 2017 (US only)
  • 4. The programmatic opportunity New “kids” on the block Reportedly coming next
  • 5. Real time ad market today However, it’s a compromise Knowledge is not shared with the true owners of the data Campaign customization is limited
  • 6. Real time ad market today Limited campaign customization Little ability to customize campaigns to meet specific business and branding goals
  • 7. CUSTOMIZING PROGRAMMATIC ad campaigns in travel FAMILY PLANNING ANNUAL HOLIDAY LOYALTY CLUB MEMBER UPGRADED BUSINESS TRAVELER
  • 8. Challenges of real time travel advertising Leveraging BIG data which is even bigger in travel Keeping brand top-of-mind during prolonged decision-making process Ultra-dynamic verticalNeed for great degree of flexibility
  • 9. THE LONG JOURNEY OF TRAVEL CONSUMERS 67 DAYS 26.3 SITES 60.4 VISITS OVER 27.1 SESSIONS SPENDING TOTAL OF 4 HRS 48 MINUTES PRIOR TO PURCHASE finding the right ad mix throughout this journey is a challenge Source:
  • 10. Business-driven customization in travel Adapting programmatic campaigns to fit an advertiser’s unique business & branding goals Prospects Inspiration Awareness over time Customers Short term cross-selling Acquisition Ancillary revenue Long term repeat purchases Loyalty club acquisition Incremental revenue = Acquiring new business + maximizing value of existing business …and integrating them throughout the entire programmatic ad campaign chain
  • 11. Business-driven customization in travel …and integrating them throughout the entire programmatic ad campaign chain Customized business-driven segments Customized creative Customized pricing models Customized optimization models
  • 12. Customized segments Pinpoint targeting Consumer journey Hotels, packages, flights User activities Engagement User value User geo location CRM Data
  • 13. Customized segments Recommended retargeting segmentation plan in line with business goals Incremental revenue Inspiration Awareness Awareness over time Acquisition Acquisition Acquisition DEFAULT PROSPECTS HIGH VALUE TRAVELERS INTERESTED FAMILIES MIDWEEK SHOPPERS CHRISTMAS HOLIDAYS ADD SEGMENT Repeat purchases ALL USERS Incremental revenue RESEARCH PHASE USERS ALL USERS LAST MINUTE DEALS Incremental revenue Incremental revenue Ongoing Seasonal
  • 15. Segmented retargeting campaigns Prospects Segment Price Interested families Segment Price B A Personalized products Midweek shoppers Segment Price c Seasonal retargeting Segment Price D
  • 16. Customized optimization models Segment configuration Man Segment pricing Ongoing optimization Actionable data insights Fine-tuned micro segmentation Dynamic creative optimization & Machine Highly efficient programmatic media buying Lifetime value optimization
  • 17. Taking a programmatic travel campaign to the next level The impact of CRM data in travel: Ability to leverage highly valuable data (e.g. data related to loyalty club & product margins) Ability to accurately target users based on long term consumer view
  • 18. The end result Differentiated programmatic campaigns with unique pricing, creative, messaging and sequence For every user segment.
  • 19. Success Story 0.64% 5.2% 5-6x higher than standard display Significantly higher than site average CTR PCCR Based on over 7 million impressions “We are very pleased with the solid performance we keep on seeing with myThings. Coupled with its dedicated account services, we consider myThings to be an essential tool for increasing conversions in the travel vertical." ” Wesley Koolen Roomport Internet Manager
  • 20. New approach to display advertising From black box to glass box
  • 21. Enhancing transparency Segment-level audience transparency Performance data Creative performance Analytics and Insights
  • 22. Enhancing transparency Media transparency Domain-level performance Top publishers per network RTB win rates % of new customers from each media channel
  • 23. To summarize Current state of real time ad market: Programmatic advertising disrupting industry Nonetheless, it has created two key pains: uniformity and limited visibility Customizing programmatic travel campaigns Taking it to the next level: Providing complete visibility into campaign
  • 24. About myThings 150+ employees 5 billion impressions per month 60+ engineers, PhDs and data analysis experts 7 billion RTB requests handled per day 100% proprietary platform 300+ Partnerships with premium media networks & sites
  • 25. Offices in 15 cities serving 30 markets AMSTERDAM MILAN NEW YORK SCOTTSDALE MADRID PARIS LONDON BERLIN MUNICH SAO PAULO STOCKHOLM WARSAW TEL AVIV MOSCOW TOKYO
  • 26. Thank you Email: t a n j a . s a n d e r s @ m y T h i n g s . c o m Mobile: 06 4 4 - 2 9 5 4 1 1 Twitter: @ t a n j a s a n d e r s

Notas del editor

  1. Programmatic advertising has made an important impact on todays adverrtising industry. Programmactic advertising is a proces of media buying an automated way through digital platforms, programmatic buying is the technology that enables us to bid on an induvidual user ba
  2. Growth market. The RTB spendwillbe 10 timesbigger in 2017 -
  3. Revoluzionized advertising in general- greatdevelopment, -great performanceTwitter- Mopa- mobile ead exchangeRTL-Bol.com- programmaticbuying
  4. Specificneeds of specificbrands are lost- youcan’t make brand stand out- slap in the face-
  5. Programmatic ad campaigns are fully automated solutions with little ability to customizeGeneric, non-brand aligned Standardized, template based creativesAudience segmentation limited to place in funnel, categoryLacking ability to deliver the right message to the right audience
  6. There is 3 major challenges: #1 Noy only bigger in size, but also in complexity and making meaningfull connections between silo’s of unconnected data. Imagine site like booking.com, 67 days in order to make a booking#3 Coping w ultra dynamic Ultra dynamic flexibility- flexible pricesSearch limitations: Limited branding, few shopping-related queries, low time spent, expensive key words
  7. Just to remind you about the decision making proces in travel by nielsen. Staying top of mind of that user during that process is crucial and to be able to do that and trigger the user’s mindset during this journey which start with orientation and which end with
  8. http://en.wikipedia.org/wiki/Ancillary_revenueWith today’s tehcnologies: It is possible today to adapt campaigns for fit specific goals. Inspiration- storming weather, going to booking.com- looking to be insired- sunny images- awareness over time, keep the brand top of mind- revenue from non-ticket sales- #1 area where airlines can acutally earn margins.Long-term repeat purchases- after 6 months another ski vacation this winter- loyaly club acqusition- travel is considered a comodity, airlines want to push hard to be a loyaly club. Incremental value- business goals aan d implement them in the campaign
  9. The more targetd the group the more efficient the campaignwillbe-Withtoday’savailableamount of data it is veryobviousthat these data shallbeusedforcampaignoptimizationAnyonelooking at hotes in barcelonal, or anyone look the loyalty club member scetionand a 5* hotelUser attibutes- gender, familiy status, loyalty club member, crm data
  10. Prospects: visited HP or deals section. Open to optionsHigh value travelers: business-related, families with kids, long flights, full packagesResearch users: entered dates NOT in near future
  11. The combination of both human brain and machine learning algoritm make the impact of usch campaigns very powerfullActionable data insights-behavioural pattern- Machine- fine tuned- mirco segmentation- determined 6-7 segements, based on business goals- machine learns that business travellers that book between 2-4 pm are the biggest spenders- machine has finetuned the segmentData over time- future potential- but also past user history.
  12. If user looked at hotel in new york, yo will show him that hotel he looked at but also a hotel that you have a good deal with,
  13. Performance data: Full set of KPIs per segment including revenue, conversions, AOV, impressions, spend, eCPC, clicks, CTR, and ROI and performance comparison across all segments.Creative data: Segment-level creative performance comparisonAnalytics and insights: Traffic source breakdown, geographical distribution, AOVs over time, top selling categories and more
  14. Performance data: Full set of KPIs per segment including revenue, conversions, AOV, impressions, spend, eCPC, clicks, CTR, and ROI and performance comparison across all segments.Creative data: Segment-level creative performance comparisonAnalytics and insights: Traffic source breakdown, geographical distribution, AOVs over time, top selling categories and more
  15. Global leader in programmatic advertising, turning big data in incremental demand.