Upload
e-dialog-gmbh
View
216
Download
1
Embed Size (px)
Citation preview
BEYOND PROGRAMMATIC –DER WANDEL BEGINNT ERST
CONFIDENTIAL
Wien, 29. September 2016
Dr. Wolfgang Faisst, Head of SAP Exchange Media
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 2
This presentation outlines our general product direction and should not be relied on in making a purchase decision.
This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation.
This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice.
This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent.
Disclaimer
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 3
Let’s talk about the world of digital media today…
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 4
Global Marketing Spending
$522B(52%)
$984B billion
$400B
$50B $12B (1%)
Adver-tising
Marketing Services & Agencies
Data & Intelli-gence
Direct ITSpending
52% of CMO external spending is for advertising Advertising is shifting to digital media channels
Advertising is most important spending topic for a CMO
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 5
*eMarketer forecast
! Programmatic / algorithmic trading is the use of electronic platforms for entering trading orders with an algorithm which executes pre-programmed trading instructions whose variables may include timing, price, or quantity of the order, or in many cases initiating the order by a "robot", without human intervention.
! Widely used in financial services industry by investment banks, pension funds, mutual funds, and other buy-side (investor-driven) institutional traders, to divide large trades into several smaller trades to manage market impact and risk.
Population GDP Ad Spend Digital Spend Display Programmatic
0.7% 2.8% 4.6%
14.0%
21.4%
48.9%The programmatic market exploded in 2014. Growth forecast is $22 bn in programmatic in 2016.*
Digital Advertising - Point of Departure Programmatic advertising outpacing global trends
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 6
Source: Irene Aldridge (http://www.ablealpha.com), wikipedia.org
Digital Advertising - Point of Departure Adoption of electronic trading in finance as proxy for media
Adoption of electronic trading in finance 2001-2010
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 7
Challenges Description
Inefficient Value Chain
! Various middle men absorbing a significant portion of the media budget (50-70%)
! Advertiser‘s media departments under-staffed compared! Often loose control of the outsourcing service providers
Fraud & Viewability! Software bots creating significant traffic (25-40%)! Additionally, click shops hired to fake audiences! Viewability often not guaranteed, but reported & paid
Complex Processes! Large amount of manual and non-value creating activities! Long lead times to prepare advertising campaigns! Compliance issues in buying and payment
FragmentedTechnology Integration
! „Zoo“ of isolated tools per media channel & adformats ! Lack of integration between corporate systems
(in particular marketing system) and advertising systems! Batch reporting and no real-time optimization capabilities
1
2
3
4
Digital Advertising - Point of Departure Advertisers & agencies faced with four challenges
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 8
Source: WFA Guide Programmatic Media, 2014
AOR= Agency of Record ATD = Agency Trading DeskDSP = Demand Side PlatformValue Adds: i.e. Data Enrichment,Targeting, Reporting, Verification.
*
1Digital Advertising - Point of Departure Inefficient value chain with 60% absorption of ad budget
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 9
Source:Stats of Digital Ad Fraud Q1 2015, Dr. Augustine Fou
2Digital Advertising - Point of Departure Fraud & View ability creating an additional loss of 25-40%
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 10
Source: BCG Analysis
Need for a re-engineering of processes within the advertiser and with agencies
3Digital Advertising - Point of Departure Advertisers & agencies: Complex processes
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 11
“Ad Tech will become a natural part of an integrated enterprise landscape.”
Source: LUMA Partners
4Digital Advertising - Point of Departure Fragmented technology landscape
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 12
Digital Advertising - Point of ArrivalAdvantages for a direct model procurement and consolidated E2E solution stack
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 13
Today (2016) Beyond Programmatic (2016-2018)
Value Chain Fragmented & complex Streamlined value chain; more direct connections
Control Outsourcing & delay in reports 100% transparency & control
Process Cumbersome processes Re-engineered and streamlined processes
Systems 20+ sited tools, no connection to corporate systems
One system for Adtech , integrated with corporate systems (complete Adtech & Martech integration)
Metrics Inconsistent measurements Measurable business KPI´s (purchases)
Targeting High media waste (reach) Personalized & context-aware (relevance)
Consumer Huge ad-blocker interest Advertising perceived as value-add information
Return on media Non-Measurable Measurable & Manageable
Digital Advertising - Point of Arrival The Transformation: Beyond Programmatic
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 14
Media Procurement
Agency controls and operates entire media
lifecycle
Advertiser accesses agency platforms for
analysis
Advertiser controls media platforms, agency
executes
Advertiser operates everything except
trafficking & creatives
Advertiser controls and operates all media platforms
Low level Full potential
Empowerment of Marketing
Reporting documents days/weeks after
campaign end
Reporting documents and optimization during
campaign
Online reporting access for Marketing and
optimization
Online reporting access for Marketing; real-time
data, optimization
Real-time data and optimization, most usable
user interface
Data, intelligence & insight
No leverage of customer-internal
data (CRM, …)
Initial leverage of customer-internal data
(manual)
Manual processing of CRM data & leverage for
advertising
Automated leverage of customer data with
selected sources
Golden customer record (all sources) + automated
leverage
Process AutomationHighly manual, partially
non-digital processes between parties
First (automated) digital workflows – advertiser
internal
First (automated) digital workflows – advertiser /
agency
Automated digital workflows – advertiser /
agency
Seamless digital processes between all parties (automated,
integrated)
Technology Integration
Fragmented landscape (siloed Adtech, many ad
platforms)
First integration AdTech / MarTech (workflow)
+ Consolidated AdTech platform
+ Further integrations (e.g. SRM / Ariba)
1 AdTech platform, fully integrated with corporate
systems
E2E Measurement Only costs, clicks & impressions
+ Actions/ conversions (downloads, purchases)
+ (Store) visits (online, offline) and activities ?
+ Confirmed transactions (online, offline)
+ Incremental transactions (+ related
margins)
Digital Maturity
Digital Advertising - From Today to the Full PotentialAssess your Status
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 15
Digital Advertising - Point of Arrival Key value levers to transform digital advertising
! Advertising efficiency via premium private marketplace with most transparent brokerage
! Advertising effectiveness: E2E process excellence from planning to measurement to real-time optimization
! Empowerment for people via simplification of user interface! Assistance functions & automation powered real-time analytics & optimization capabilities
! Seamless integration: Connecting corporate systems & advertising technology (in particular MarTech & AdTech) and
! One platform for all media channels
! Leveraging 360° data (internal and external) to drive customer relevancy! Aggregation of first party, second party and third party data to „golden customer record“
! Attribution of incremental purchases (POS, eCommerce) to digital advertising campaigns! Measurement and optimization of „Return on Media“
Media Procurement
Empowerment of Marketing
Data, intelligence & insight
Process Automation
Technology Integration
E2E Measurement
1
2
3
4
5
6
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 16
Programmatic Media Buying Value Chain – “old world” SAP XM media buying value chain – “new world”
Lack of transparency and loss of budget due to ‘middle-man’ economy (intermediaries)
Increased ROI by connecting advertisers & publishers directly through e-2-e integrated online media network
Media procurementPremium private marketplace with brokerage model
1
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 17
Empowerment for marketing & agency
people: Simplification, Assistance & Automation
2
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 18
Empowerment for marketing peopleMedia mix optimization powered by algorithms & big data
Source: Harvard Business Review: “Advertising Analytics” (March 2013)
Define the optimal mix!
Siloedconsideration of channels
(“swim lane”)
Assistedconsideration of channels
2
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 19
Speedup = 500/30 = 17
10
~0
10
10
~0.......
~0 ~0.......
Duration parallel = 30
10
100
10
100
10
Duration sequential = 500
Duration
Process to be paral-lelized
Main memory 125.000 faster than disk Parallelization via multi-core processors
Main Memory
Disk
CPU
Core Core
L1 Cache
L1 Cache
L2 Cache
L2 Cache
L3 Cache
1 NS
3 NS
8 NS
80 NS
SSD: 100 K NSHD: 10 M NS
In-memory computingSpeed-up of >125K times possible with in-memory vs. disk2
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 20
Supports any Device
Any AppsAny App Server
SAP S/4 HANAand BW/4 HANA
JSONR Open ConnectivityMDXSQL
Other AppsLocationsReal-timeBig dataMachineUnstructuredTransaction
SAP HANA Platform
SQL, SQLScript, JavaScript, HTML5, SAP River
Replication, Streaming and ETL Integration Services
Search
Application Function Library
Data Virtualization Text Analysis &Mining
Spatial DatabaseServices
Stored Procedure & Data Models
Predictive & Planning Engine Business Rules
Application & UI Services
SAP HANA Platform Converges Database, Data Processing and Application Platform Capabilities & Provides Libraries for Predictive, Planning, Text, Spatial, and Business
Analytics to enable business to operate in real-time.
SAP HANA: In-memory platform leveraging libraries for predictive, planning, text analysis, spatial & analytics2
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 21
Billing Systems & other
Infrastructuree.g., invoices, call-by-call, payment history)
Billing Systems & other
Infrastructuree.g., invoices, call-by-call, payment history)
(e. g., customer service, shop requests,
complaints, inquiries, emails, talk recordings)
(e. g., customer service, shop requests,
complaints, inquiries, emails, talk recordings)
ERP (e. g., customer data,
transactions)
ERP (e. g., customer data,
transactions)
360!!Customer View
Market Research e. g., Nielsen, GFK
Social Media e. g., Facebook, Twitter, Youtube, Blogs forums,
ERPe.g., refine & improve
brand experience, reduce mark-downs & stock-outs, payment history
CRM+e. g., customer service, complaints, inquiries, emails, talk recordings
Internal sourcesExternal sources
Mobile Appse. g. consumer tracking
Website(e. g., clickstream, requests)
External Websites e. g., retail channel
In focus with Big Data
Text and voice information
Data, intelligence & insight360° customer view (internal and external)
Wholesale & Retail (POS)
e. g., purchases, coupon redemption
POS tracking information via beacons & sensors
3
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 22
Marketing Planning
Create digital ad campaign (incl. brief document)
Create campaign (automatically) + receive task for completion
Monitor marketing campaign progress
Marketing Expert Media Expert
Bus
ines
s Pro
cess
Setup ad campaign and settings (tactics, inventory, targeting). Send for approval.
Activation of ad campaign
Execution and (auto-) optimize ad campaign
Marketing Suite
Procurement Expert
Create shopping cart w/ insertion order
Review and approveConsolidated Mgmt. Reporting
Process AutomationMarketing, media and procurement in one workflow
Supplier Relationship Management
4
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 23
MarTech AdTech MarTech
! Comprehensive planning within advertiser‘s system
! Campaign definition! Data management
1. Plan 2. Execute 3. Measure
! E2E reporting! Steering in real-time
! E2E advertising ! Execution across all digital cha
nnels! Procurement optimization via
bidding engine
Media Mix Optimization.
AttributionD
igita
l / O
nlin
eO
wn
Ch.
Search (e.g. Google)
Video
Smart TV / Digital Radio
Social (e.g. Facebook)
DooH / IoT
Mobile
Web
TV
RadioOff
line
Email / SMS
Social
Apps
Web
Marketing Suite
Marketing Mix Optimization
Consumer
Technology integrationOne simple platform for all customer channels5
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 24
Technology integration Connecting all media channels to enable advertising along the customer journey
In 500 m you reachStarbucks
Early Bird Coffee! 5
Coke to goat just ! 0.50!
Stop at the next gas station
in 5 km
5
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 25
Balance Check Smart TV App
Thanks for visiting!Hope you enjoyed
our services
Earned Savings Points
Mobile payment Office
Shopping
Driving home
End Office
Technology integration Connecting all media channels to enable advertising along the customer journey
5
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 26
6E2E measurementClosed loop from planning to buying and optimization
SAP XM
Partner Solution
Other SAP Solutions
1st Party Data
3rd Party DMP
Media Planning & Mgmt Execution Publisher Corporate Systems
Med
ia M
ix P
lann
ing
&
Opt
imiz
atio
n
Desktop
Mobile
Video
Social
DooH
Search
Procurement
Desktop
Mobile
Video
Social
DooH
Search
SAP XM
ERP
CRM
eCommerce
Website, apps
E2E measurement and feedback loop
Marketing mgmt
Direct marketing
Handover to compliant approval
© 2016 SAP SE or an SAP affiliate company. All rights reserved CUSTOMER 27
Digital Advertising - Point of ArrivalMaking “Return on Media” measurable & manageable
Return on Media
RETURN
Current Return (Campaign)
Incremental revenue
Price Gross PriceDiscounts
Volume
Reach
Conversion
Impressions
Clicks
Action
…
Future Return (Brand Value)
…
…
Investment
MEDIABUDGET
Earned
Owned
Paid
TRADITIONAL
TVPrintRadio
…
DIGITAL
DesktopMobileSocialDooH
…INTERNAL COSTS
PROCESS/PEOPLETime
Costs
IT SYSTEMSTime
Costs
price x volume
+ fees & commissions
price x volume
+ fees & commissions
DIVISION
MULTIPLICATION
MULTIPLICATIONADDITION
ADDITION
THANK YOU!
Dr. Wolfgang Faisst
STRICTLY CONFIDENTIAL
+49 160 90432577
www.sapexchange.media