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Picking Up Signals: The March of Programmatic is Revolutionising TV and OOH Media

Programmatic has revolutionised online display advertising, and now it’s moving into other channels, with TV and outdoor advertising soon to be traded programmatically. Harriet Kingaby explores why this new means of buying and selling media means turning old models on their head.
As the digitisation of the out of home (OOH) sector continues, TV consumption patterns change and improvement in TV hardware allow for better data collection, programmatic media trading continues its revolutionary march across all sectors of the industry.
Last year, the Internet Advertising Bureau (IAB) reported that 28 per cent (circa £500m) of the UK digital display market was traded programmatically, and it predicts this will rise to between 60 per cent and 75 per cent by 2017. Although display is the most mature market, programmatic trading across most other sectors is also increasing, and TV and OOH are the next mediums to be talked about.
Importantly though, the characteristics and benefits of programmatic trading will look and feel very different to display.
‘Programmatic TV’ looks set to become an industry buzzword. The revolution in this sector will flip the traditional TV model on its head; instead of using programming data to find advertising placements, marketers will be able to use audience data gathered from set top boxes to find them. Unlike digital out of home (DOOH) and display advertising however, it is not a real-time ad buying technology, but a tool that enables better ad targeting to increase efficiency.
Digitisation of the OOH sector has been rapid and, according to PWC, looks to be revitalising it. According to Warc, DOOH accounted for 21.6 per cent of OOH spend in 2013 and can look forward to a seven per cent growth in 2015. The big opportunity for programmatic trading of DOOH is the ability to compare it with mobile and situational data. This allows identification of audience trends and therefore opens up creative opportunities for adverts to be rapidly placed and adapted depending on factors such as weather, individual flight arrivals and nearby sporting events.
Although much excitement surrounds the digitisation and programmatic trading of space in both industries, there are barriers to scaling both.
Scaling up TV in 2015
When discussing programmatic TV, it is important to distinguish what type of inventory you are referring to. Due to lack of industry faith in data and the high yields obtained by publishers when selling it, premium inventory on linear TV, such as an X Factor advertising slot, are unlikely to be traded programmatically any time soon. However, lower value inventory and video on demand (VOD) are seeing much greater interest.
The reason for this is simple. The existing system of up-front buying allows major networks to obtain high prices for premium inventory, creating little incentive for them to experiment with new ways of selling. Many cite the lack of quality of data available and ad fraud as reasons for continuing with the existing system. Understandably, they’re not keen to change a formula that works for them and advertisers fear losing exposure through experimentation, even if it would allow them to tailor, and therefore increase engagement with, their adverts.
Doug Ray, global president of Carat, puts it succinctly: “It’s about supply and demand; as long as demand is bigger than supply, there will be no systemic shift in linear TV.”
However, despite the spend and power it commands, linear TV isn’t the only inventory for sale. There’s also VOD and catch-up TV, where user sign ins and publisher collected data make targeting easier and give publishers more reassurance and control. Indeed, according to Warc, after mobile advertising, broadcast video on demand grew most of all the advertising sectors in 2014. Channel 4, for example, has recently set up its own exchange for VOD and, says Rupert Staines, European managing director of RadiumOne: “This is a trend that will increase over time as consumers move their video consumption over to mobile devices… programmatic is all about driving efficiency and effectiveness requires data and intelligence.”
Stuart Smith, the vice-president of client service at MediaOcean, cites Sky’s Adsmart as an industry leader: “Sky is in a unique position as it has the platform Sky box, and creates content and programmes too. That means it’s in a position to serve different people with different ads during the same programme. Compared to a Barb panel with half a million viewers, Sky can pull data from something like 11 million. However, of course, you’re still targeting households rather than individuals, so there will still be wastage.”
Simon Daglish, group commercial director at ITV, has notably been critical in the past of the use of secondary data to place programmatic ads. However, he is hopeful for the collection and use of this first-party data in providing a better all round experience for ITV viewers.
“We absolutely see the value of first party, permission based data, hence why we’re busy collecting it from our viewers with over seven million registered users of ITV Player already and growing fast. But that data is part of a willing value exchange between us and our viewers,” he says.
However, for the time being, for most, ‘dumb’ set top boxes do look to be a limiting factor in gathering data and placing advertisements.
Nicolas Bidon, managing director of Xaxis UK, describes the real winners in the short-term: “As the infrastructure continues to evolve and publishers begin to embrace the technology following demand from the advertisers, daytime TV and less valuable programmes will see more and more programmatic buying coming to the fore.”
Carat’s Ray also sees potential in niche cable networks collaborating with data services, saying: “Where we will see real growth is in the long tail low rated inventory, which today is undervalued and often bundled together with high demand inventory in order for the network to monetise it.
“The problem is that traditional ways of measuring TV ratings are survey based and when you get down to tiny audiences, the volatility of ratings and their ability to create a rating point falls off dramatically. With small niche cable networks, and particularly when you get to the daytime TV segments, audiences are so small that in traditional negotiations, we as humans can’t value it.”
Ray also predicts companies such as ABC working with Adap.TV and AOL to gather better data from new generation set top boxes to monetise these audiences.
Scaling DOOH in 2015
The digitisation of the OOH sector has transformed it. Digital screens allow much more flexibility than traditional posters and, when cross referenced with mobile phone data, can be tailored to their environment and audience in creative ways.
As James Davies, chief strategy officer UK and USA, Posterscope explains: “All those screens are interconnected and playable, so the capability that gives advertisers is significantly better than posters. They allow you to run real-time, dynamic creative and activate campaigns much more quickly. So you have all this new capability that comes with this connected medium.”
One example of this is the Stella Artois ‘Cidre’ campaign. Based on the insight that people are more likely to switch to cider when the weather is two degrees warmer than average, advertising space was only bought when the weather criteria was met.
However, Posterscope’s Davies describes how this is the exception, not the rule: “The industry needs to be able to accommodate lots of those campaigns running at same time. We need some pretty robust technology to allow us to do this, like they have in the online world, such as DSPs and teams in agencies to operate them.”
This is being addressed, but progress is slow. Gill Reid, head of out of home at MediaCom, describes how its recent VUKUNET programmatic direct platform trial was an exercise in streamlining the “end-to-end campaign buying and delivery process through an intuitive online interface, sending creative directly to digital screens, eliminating multiple manual processes and allowing clients and agencies to report on and optimise their campaigns in real-time”. Developing the platform would make the buying process more efficient, but more advanced platforms based on real-time bidding and auction models, such as ‘Vistar’ in the US, do exist outside of the UK.
In addition to the lack of robust DSPs, the availability of digitised real estate for programmatic trading poses the main barrier to growth. Markets such as Australia and Asia are advanced, but availability of this space in the UK outside London is limited. As advertisers seek to move with their consumers across multiple screens, trading systems improve and availability increases, it is clear that DOOH is an industry with enormous potential. Although these issues mean it unlikely to be the UK industry success story of 2015.
The scaling of programmatic trading of TV and DOOH require industry collaboration to improve data gathering and infrastructure. Advertisers, publishers and media agencies need work together to make more inventory available. Media and creative agencies must cooperate and broaden their skills sets to embrace a model of audience, rather than media trading. Indeed, considering advertising sectors in isolation seems dated, as consumers increasingly and indiscriminately consume media across multiple screens.
As RadiumOne’s Staines puts it: “We need to start and finish with trying to understand the consumer. They are constantly connected by multiple devices. The only way this industry will genuinely leap forward in terms of innovation, will be when we realise we have to operate as a system, not siloes. It’ll take time. All media will be, in some way, programmatically traded digitally because the fundamental part of the puzzle is the consumer, who is way ahead of the game.”
Via: The Drum
 

Media Playground: Is Mobile Data the Fuel for Digital OOH?

Ged Weston, sales director at Eye Airports, discusses Media Playground’s mobile session. 
I found the interplay at this year’s Media Playground session on mobile fascinating. Tom Pearman, director of brand and business development at Weve, successfully framed that mobile’s greatest opportunity is location based – and demonstrated the parallels to out of home (OOH).
Everyone knows there is a perfect fit of mobile and OOH working together – the challenge is realising this in a way that genuinely works for clients.
We are all aware that you can overlay an OOH campaign with push messaging through geofencing/beacons delivered by SMS, apps and display – and that OOH can pull consumers to mobile through NFC/QR codes. This is still early days with revenue and brand counts in their infancy.
This is common sense and consequently clients will eventually view both through the same lens. Nigel Clarkson, Weve’s commercial director, and James Davies, Posterscope’s CSO, debated at length where this budget should come from. My view is once we prove that this works clients will automatically find the budget.
The real exciting play for me is how clients tap into mobile data, to fuel what consumers see outside of their mobile phones.
An enclosed environment like an airport or shopping mall with a huge retail footprint and a unique mindset seems like the perfect opportunity: you want to – and can – buy! The digital infrastructure to deliver this content already exists through digital OOH, but is still under-utilised by clients.
So my question is how do we collectively help advertisers do this?
Imagine a campaign fuelled by knowing in real-time who the audience is, what they have done before they arrived, where they are going afterwards and what they are actually doing in real-time?
Then put this on steroids playing out to the scale and impact of OOH – not to mention the benefit that established trust in the medium delivers. This happening at the same time as mobile/OOH as a location based opportunity has to be the sweet spot for clients.

Data feeding the OOH campaign – OOH campaign feeding Data – Data feeding the OOH campaign…

Location based and data fuelled mobile and OOH – now that is game changer where clients wouldn’t quibble over the budget.
Via: Media Tel

Media Playground Returns Next Week

On 3 November senior executives from across the industry will gather to debate some of the biggest issues facing digital media. Cutting through the hype to offer real thought leadership, MediaTel has gathered some of the best minds in the sector to help delegates understand the transformative and disruptive media shaping the future.
The line-up is impressive; including senior industry figures such as Jon Wilkins, chairman of Karmarama, Ashley Highfield, CEO of Johnston Press and Simon Daglish, group commercial director at ITV, to start-up companies including Future Ad Labs and Flocker.
The client world is represented by Merlin’s Jason Wills and Freestyle’s Rob Rees.
They will be joining a host of other top quality panellists, including Posterscope’s Chief Strategy Officer, James Davies, who will be talking about mobile and location. Chairing duties will be split throughout the full-day event between regular Newsline columnists Dominic Mills and Torin Douglas.
The agenda is far-reaching and includes:
– Disruptive TV – Where next?
– TV is going to be traded just like VOD…isn’t it ?
– Clients, agencies and media owners on the mobile and social challenge
– Innovation – the brightest new start-ups give us their pitches
– Keynote interview: Ashley Highfield, CEO, Johnston Press
– The new content world: Native, branded and social.
– Mobile – Location, location, location
– Understanding changing consumer behaviours

Event partners include: Decipher, VisualDNA, Experian, Livefyre, Lumen, The Bakery, Adap.tv and Weve – alongside Posterscope, Johnston Press, MediaCom, EE, Appflare, The Sharp End, Reload Digital, Freestyle Ltd, Merlin, Karmarama, Freesat, ITV, MobiTV, Yossarian, Race Yourself, Future Ad Labs and Flocker.

Tickets cost £250, with only the last few remaining.
Full line-up, agenda and booking details can be found on MediaTel’s events website.
Via: MediaTel

Tapping in to better insights from big data

James Davies, CSO Posterscope,  appeared in EE feature  ‘Tapping in to better insights from big data’ in the Daily Telegraph Business section.  Davies discussed how Posterscope and EE are using mobile data for location-based OOH advertising.  The article, written by Chris Price, can be read below or accessed online.
” Why Surbiton station is a massive fashion hotspot” 

It may not be a name you are familiar with, but chances are that you will have seen one of Posterscope’s ads on your way to work this morning.
Bus stops, tube stations, even petrol pumps and shopping trolleys are just some of the locations where Posterscope buys advertising space on behalf of its clients, which include ZenithOptimedia, and brands such as KFC and Coca-Cola.
The company was behind the recent campaign to turn the iconic red London bus black, on behalf of Adidas. “It’s one of the few times where you can be walking down the street and you will overhear someone saying ‘look at that bus’,” says James Davies, Posterscope’s chief strategy officer.
The company claims to have around a 30pc share of the out-of-home (OOH) advertising market. With such a vast selection of OOH places to advertise, a large part of Posterscope’s job is to provide intelligence to clients.
“As a client you need specialist businesses to guide you because there are so many options,” explains Mr Davies. “Should I be on petrol pump nozzles or on the side of a bus? Once you’ve decided on the medium, you need to pick the location because with thousands of bus stops out there, you’re not going to choose all of them.”
Traditionally, when planning campaigns Posterscope has relied on proprietary research and industry level data to give some demographic information about a poster site. However, it has now gone one step further and added a “third level” — that of mobile data (mData) in partnership with EE.
Here insights based on anonymised and aggregated mobile network usage data is shared by EE to Posterscope to provide more accurate locationbased information for planning advertising campaigns on behalf of a client.
“mData allows you to go one step further than demographics so you can tell what groups of people are actually doing on their phones at a particular location,” says Mr Davies.
In a recent campaign for computer/tablet manufacturer Lenovo, for example, Posterscope was able to select sites where it knew people were more likely to be looking at technology websites. “As a result, people’s awareness of the campaign was twice as high in these hotspots,” says Mr Davies.
Since it started the mData partnership with EE last October, Posterscope has also used mobile research to uncover a few surprises. Says Mr Davies: “We were looking at places to advertise for one fashion client and were researching where people were looking at ASOS and Very’s websites on their mobile. We discovered that Surbiton station is a massive fashion hotspot.”
 
Source: The Daily Telegraph 

Location Tech and Mobile Map Out Way to Better Business

Surbiton would not normally be thought of as a centre of fashion.
But it is, according to location data analysts at least.

This south west London suburb, home to BBC TV’s fictional Stella Street celebrities, is where young people are more likely to check out fashion sites and apps on their smartphones than almost anywhere else in the UK.

The surprising insight comes from mobile phone network EE, which has collated terabytes of anonymised and aggregated data on more than 20 million UK customers – data that is proving increasingly valuable to retailers and advertisers.
The internet has been a godsend for marketers – enabling them to track our online behaviour to the nth degree.
Now location data from mobiles and other sources has added a whole new layer of detail to the picture – a step-change analogous to the move from videotape to DVD.
“Location analytics are becoming integral to every business strategy,” says David Brussin, chief executive of Monetate, a digital marketing company.
Poster boys and girls
US marketing pioneer John Wanamaker once famously said: “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.”
Location analytics is helping to solve that conundrum.
Out-of-home (OOH) advertisers and agencies – those responsible for ads on billboards, bus stops and other physical locations – now know what type of person is passing a specific location at any one time, and what they are doing online.
They can then target their ads accordingly.
“Thanks to location data we now understand the relevance and value of a particular advertising position compared with another,” says James Davies, chief strategy officer at OOH agency Posterscope.
“For instance, commuters at one station may tend to look at financial apps on their phones, whereas people travelling from another station may prefer fashion apps,” he says.
“Knowing this helps advertisers ensure their ads are relevant, which saves money and improves effectiveness.”
With brands spending nearly £1bn a year on outdoor advertising in the UK, relevance is key to getting more bang for your marketing buck.
Posterscope says its partnership with EE has seen advertising effectiveness triple for some of its clients, who include Lenovo, Nationwide and British Gas.
“We now know which bus stop is better than another on the same street,” says Mr Davies.
Music for you
The mobile phone is not only an excellent tool for locating consumers, it is also an increasingly effective way for brands to interact with them.
When people move into a particular zone – crossing a geo-fence as the jargon has it – marketers can send highly targeted offers to their phones – ads relevant to their age, interests and purchasing histories.
For example, during last year’s Proms music festival, which centred around South Kensington’s Royal Albert Hall, Decca Records sent text messages to classical music lovers in the locality offering them free track downloads of artists featured in that night’s programme.
At first, the campaign looked liked proving a damp squib – the geo-fenced area was too narrowly focused around the venue.
But as soon as this was widened to include nearby tube stations, the response rate improved dramatically, the company says.
The campaign illustrated how location analytics could help reach an older demographic that is normally hard to engage, argues Sean O’Connell, director of product and technology at Weve, a joint venture between mobile phone networks Telefonica, Vodafone and EE.
Weve provided Decca’s location-based customer data and helps many other businesses with their marketing campaigns. About 60% of its campaigns in 2013 “included a location element”, says Mr O’Connell.
“The Decca campaign shows how specific and bespoke your marketing can be. And you get much more engagement with this type of marketing – click metrics improve three or four times,” says Mr O’Connell.
Personalised offers
“Location and context aware offers are going to change the world,” says John Bates, chief marketing strategy officer of big data specialist Software AG.
“Say you’re walking past a designer shoe store, you could receive a mobile ad offering a 30% discount off Jimmy Choos if you come in within the next 30 minutes and use a particular credit card.

“This is how the High Street can fight back against Amazon,” he adds. “The real world is fighting back against the virtual world – it’s personalisation on a massive scale.”

Monetate’s David Brussin agrees, saying: “A retailer can offer customers a promotion online, via email or on mobile, which changes dynamically based on their location, highlighting the shop physically closest to them and directing them to visit, and ultimately buy.”
But this kind of highly personalised marketing will only work if consumers are happy to trade some privacy in return for the benefits, Mr O’Connell believes.
“All such services are opt-in,” he says. “Customers give their permission to be indentified. With location technologies, being able to say no is of paramount importance.”
Smart maps
Location data can also help businesses map out ways to improve – literally.
For example, Esri, a specialist in location data mapping, mashes together all sorts of data – censuses, social media streams, weather, land surveys – then adds in location data gleaned from wi-fi, phone masts, GPS, and card transactions.
“Static data is being enhanced by real-time data, and this is making maps dynamic,” says Sharon Grufferty, head of software-as-a-service product management for Esri UK.
“Companies can locate hotspots of Twitter sentiment on a map, for example, and pinpoint where a problem exists, enabling them to tackle it quickly,” she adds.
Such analysis is helping insurers assess household risk far more accurately, energy companies pick the ideal place for a wind farm, and retailers plan their stores, says Ms Grufferty.
For example, retailer Argos, part of Home Retail Group, used Esri’s location mapping expertise to help it decide the best locations for its “click-and-collect” centres, based on in-depth analysis of online and in-store customer behaviour and geo-demographics.
The underperforming, badly located stores were jettisoned, while new and existing stores were stocked more efficiently to suit the local clientele.
“Home Retail Group have been long-term users of mapping software and insight,” says Andrew Stringer, the company’s customer and market insight controller.
“It helps to identify more areas where we can offer great convenience to our customers.”
These days, the old adage “location, location, location” seems to apply as much to business as it does to property investment.
Via: BBC News

My Media Week: James Davies

This week, James Davies, chief strategy officer, Posterscope, parties with the mobile community hipsters in NYC (absinthe cupcake, anyone?), prints a new shirt button (duh…3D printers) and affirms his philosophy of always hiring people smarter than yourself.

Monday

This week I’m in NYC as I dedicate a portion of my time to helping advance our US operation. My focus is to help export some of the science and innovation in planning from the UK and bring back the latest in ad-tech and mobile from the US.
I’m up at 4.45 am and check the weather forecast for New York. It’s minus 16. Great. Double check I’ve packed a selection of hats, given my follicular challenges.
A trip to the airport via Cromwell Road where ‘The Lego Movie’ and Land Rover are battling it out, having chosen their respective weapons of Clear Channel backlights and JCDecaux digital screens. In my humble opinion, Lego lost that round, having missed the obvious but surely brilliant opportunity to build giant 3D Lego characters climbing all over their posters. I’d have thought that would have been the easiest creative media sell ever.
My daily news routine consists of the email digest of global business news from Quartz on my mobile and Twitter via Flipboard on my iPad. My Top twitter picks include @Paul_Framp, @thenextweb and @lifehacker.
Make it to Heathrow with time to spare. I always love using BA’s boarding pass app, especially when followed by someone who has obviously never seen this happen before. Deriving pleasure from this probably makes me a bit of an idiot.
After an incredibly productive seven-hour flight, I arrive at our mid-town (isn’t that what they are trying to call Holborn now?) offices in time for my second lunch of the day. This is followed by meetings that include a session at CBS Outdoor USA (they are not part of the new Exterion operation) at which CEO Jeremy Male makes a pleasant surprise appearance. The meeting goes well, which distracts me from the fact that my body clock says its 10.30pm.
It’s hard not to feel energised here and the combination of jet lag and trying to cram in as much as possible means it’s always the city that never sleeps for me.

Tuesday

I’ve chosen convenience over cool for this trip, so I only have a 10-minute walk to work from my hotel.
On the way to work, I use mobile augmented reality to find the Starbucks opposite our office, buy a holiday from a nearby NFC enabled poster and get pinged by an i-beacon, which reminds me to buy breakfast. I also pop into Best Buy to spend $75 on an ink cartridge for the 3D printer so that I can print a new shirt button. I consider watching the Lego movie trailer on my phone after seeing an ad in the newspaper, but I don’t bother as it didn’t feature a QR code – an opportunity missed.
Today is mostly about internal meetings – and I run a training session on real time digital OOH.

Wednesday

Things have warmed up a bit versus the forecast, so it’s only minus 10 degrees on the way to work today.
My over-scheduled diary causes inevitable chaos and my assistant and I have to rearrange the whole remainder of the week. She thinks it’s hilarious. I think she should probably hit me.
Drinks with our senior leadership team in the innovative Pod 51 hotel. Innovative means tiny rooms in this case, but fortunately the bar selection is far from Lilliputian and we have a great time. Apparently they have a really good rooftop garden bar, which we decide not to check out.
The snow hits New York. The snow also hits Atlanta, where it apparently doesn’t snow. The TV news teams jump on this opportunity to be extra American and deploy ‘Snow Team 4’ to the streets of Manhattan.
I get to check out an hour of TV, to which US marketers are still enormously wedded. It accounts for around 40% of adspend, but watching tonight it’s hard to see why – it’s not all ‘Breaking Bad’ and ‘Modern Family’. The majority is low-rent reality TV, poorly attended live sport and not-funny comedy, plus the local ads are appallingly cheesy.

Thursday

Today’s selection of meetings, web-exs, conference calls and Skypes include an update with the UK team on our data partnership with EE. Our pilot, whereby we are using mobile website and app data to optimise OOH location selections, is going brilliantly.
The team has been busy uploading batches of m-commerce data into our new proprietary planning application and using its algorithm to work out the most effective applications of the data. Someone once told me to always hire people who are smarter than you and today’s conversation confirms my success in this area.
Drinks with our mobile display partners, xAd, tonight. They have built an amazing business in the US through their location-targeting accuracy, self-optimising geofences that shapeshift throughout the campaign, and a measurement panel that assesses real-world actions resulting from mobile and OOH exposures. We’ve recently extended our partnership to cover the UK too.
The party in the basement of Chelsea Market populated by NYC’s mobile community is definitely Super-Hipster. Fortunately, I’m wearing my trainers. I get asked for ID on the door, which must be a ploy to make people like me feel good. I vow to avoid the shots, gin lollipops and absinthe cupcakes. I eat an absinthe cupcake. It’s actually very nice.
I call a cab using the Uber app and it turns out to be an Escalade, which makes me feel very gangsta rapper.
Back at the hotel, I realize I’ve forgotten to eat anything apart from the cupcake and there’s no food in the minibar, so I have a packet of Rolos for dinner and fall into bed.
More snow.

Friday

It’s a half day in the office before I head back to London. I think I’ll take my kids to see ‘The Lego Movie’ tomorrow…all because of that poster on the Cromwell Road of course.
Age: 39
Favourite media: Rap music (it’s full of ads which I guess is called earned media)
Biggest inspiration: The constant flow of tech entrepreneurs that I get to engage with.
Dream job: Judge on the ‘X-Factor Hip Hop’
Not a lot of people know this about me… I used to be a pirate radio DJ
Via: MediaWeek