Marketing Analytics Notes
Marketing Analytics Notes
Data
Data is ubiquitous. It’s collected at every purchase made, flight taken, ad clicked, and social
media post liked—which means it’s never been more accessible to organizations.
Yet, access to data isn’t all it takes to set a business on the path to success; it also takes
employees who understand and know how to leverage data.
There’s now an increased demand for data-literate business professionals who can
handle, analyze, and interpret data to drive decision-making.
“In this world of big data, basic data literacy—the ability to analyze, interpret, and even
question data—is an increasingly valuable skill,”
With the right skills, data can allow you to gain and act on customer insights, predict future
financial and market trends, and enact systemic change for social good.
Marketing Analytics
• Your client has invited you to a meeting on 29 th of December, January 5th , Feb 2nd
• Is there a pattern here?
• Marketing Analytics is a discipline that uses Statistics and Machine Learning models and
visualizations to provide data-driven inference for marketing decisions.
• Marketing analytics can help increase return on investment (ROI) and create better customer
experiences.
• here are different types of marketing analytics tools and models that you can use to collect, analyze,
and interpret your marketing data. Some of the common tools are web analytics, email analytics,
social media analytics, mobile analytics, and lead generation analytics.
• Some of the common models are descriptive, predictive, and prescriptive analytics. Each of these
tools and models can help you answer different questions and achieve different goals.
• For example, if you want to know how many people visited your website, how long they stayed, and
what pages they viewed, you can use web analytics tools like Google Analytics.
3
How Data helps
Data science is the process of building, cleaning, and structuring
datasets to analyze and extract meaning.
If your dataset isn’t structured, cleaned, and wrangled, how will you be
able to draw accurate, insightful conclusions?
How data helps
• Gain customer insights: Data about your customers can reveal details about
their habits, demographics, preferences, and aspirations.
• Increase security: You can also use data science to increase your business’s
security and protect sensitive information. For example, machine-learning
algorithms can detect bank fraud faster and with greater accuracy than humans,
simply because of the sheer volume of data generated every day.
• Inform internal finances: Your organization’s financial team can utilize data
science to create reports, generate forecasts, and analyze financial trends. Data
on a company’s cash flows, assets, and debts is constantly gathered, which
financial analysts use to manually or algorithmically detect trends in financial
growth or decline.
How data helps
• Streamline manufacturing/Services : Manufacturing machines gather data
from production processes at high volumes. In cases where the volume of data
collected is too
• Predict future market trends: Collecting and analyzing data on a larger scale
can enable you to identify emerging trends in your market. By staying up to date
on the behaviors of your target market, you can make business decisions that
allow you to get ahead of the curve.
Segmentation
• Process of systematically grouping sets of consumers into groups based on similar
characteristics.
• Segments can be based on demography, Psychographic, geography, category or brand related
attitude and behaviors.
• The process of subdividing a market into distinct subsets of customers that behave in the same
way or have similar needs. Each subset may conceivably be chosen as a market target to be
reached with a different marketing strategy.
• A target market is a group of customers a business has decided to aim its marketing efforts
and ultimately its merchandise towards. A well-defined target market is the first element of a
marketing strategy.
• Uses in advertising :
• Help in defining Target groups.
• Consumers can be segmented by usage or income.
Creating target groups
• Demographics
• It is a way of describing audience based on measurable and quantifiable
factors such as
• -gender
• age
• income level
• marital status
• education
• race
• religion
Creating target groups
• Psychographic Segmentation
• Psychographic segmentation divides the target market based on socio-
economic class, personality, or lifestyle preferences.
- attitudes
- aspirations
- habits including media & product consumption
Creating target groups
• Web analytics
• Techniques used to assess and improve the contribution of digital marketing to
a business reviewing traffic volume, clickstreams, online reach data, customer
satisfaction surveys, leads and sales
• https://www.smartinsights.com/
• https://www.digitalanalyticsassociation.org/
Key tools for digital advertising measurement
• https://marketingplatform.google.com/about/analytics/
• Google Analytics is the most-used tool for web analytics on the internet
• https://www.youtube.com/user/googleanalytics
• https://www.hubspot.com/
• -It's a one in all solution that provides plenty of feedback and support for analysis and evaluation.
• https://hootsuite.com/en-gb/
• - Manages multiple social platforms
• https://mixpanel.com/
• Mixpanel is a tool for mobile, allowing you to measure the ways people are using app or site, whether
they're coming back and using them again after their first visit
• https://www.megalytic.com/
• Megalytic lets you pull in data directly from a number of different sources such as Google Analytics or
Adwords , can be used to create integrated reports
• https://www.salesforce.com
• https://www.salesforce.com/products/einstein-analytics/overview/
• The platform features analytics tools called Einstien Analytics that can help you build up a clear picture of
how your marketing activity is impacting sales
Overview of Marketing Analytics
• 1.Marketing analytics can be termed as a discipline that uses appropriate statistical, machine learning models, and
visualizations to inform about key marketing decisions.
• 2. Marketing analytics possibilities start with availability, depth of data. Data can be from firm’s internal sources or
can be bought from market research.
• 3. Marketing analytics use case begins with exploratory data analysis (EDA) – this typically involves checking
data sanctity, useful variations and the applicable variance in data.
• Exploratory Data Analysis (EDA) is a process used by data scientists to analyze and investigate data sets and
summarize their main characteristics, often employing data visualization methods. It involves a variety of
techniques to:
• Discover patterns
• Spot anomalies
• Test hypotheses
• Check assumptions
• 4. Descriptive analysis involves checking variation in each variable using
mean, variance, and covariance (or correlations) – usually descriptive analysis is
done as part of EDA.
eMail
Mobile Messaging including whatsapp
Social Media – Facebook
Mobile Apps
Tele calling
Make customer ‘Subscribe’
Ask for referrals and reward for references
WHY IS MARKETING ANALYTICS IMPORTANT?
• 1. Improve the User Experience
• Collecting and analyzing your users’ first-party data can reveal how they feel about
their interactions with your product and website.
• Whether their feelings are explicitly stated (for instance, in a survey) or implicit in
their behaviors(for instance, leaving the website shortly after loading the page), having
this qualitative and quantitative information can allow any organization to make
changes that address their needs and increase the potential for leads to become
customers.
• By analyzing marketing data, a company can discover what’s working, what hasn’t
worked, and how your customers feel about their experiences with your product and
website. You can also get a full picture of the impact that marketing efforts are having on
your company.
• With that information, you can plan. What should you do more of to reach your
quantitative goals? Which effort failed to generate new leads and should be dropped from
future plans? Data analytics helps you strategize and answer these kinds of questions.
Importance of Marketing analytics
• https://www.salesforce.com/products/marketing-intelligence/
Key tools for digital advertising measurement
• https://marketingplatform.google.com/about/analytics/
• Google Analytics is the most-used tool for web analytics on the internet
• https://www.youtube.com/user/googleanalytics
• https://www.hubspot.com/
• -It's a one in all solution that provides plenty of feedback and support for analysis and evaluation.
• https://hootsuite.com/en-gb/
• - Manages multiple social platforms
• https://mixpanel.com/
• Mixpanel is a tool for mobile, allowing you to measure the ways people are using app or site, whether
they're coming back and using them again after their first visit
• https://www.megalytic.com/
• Megalytic lets you pull in data directly from a number of different sources such as Google Analytics or
Adwords , can be used to create integrated reports
• https://www.salesforce.com
• https://www.salesforce.com/products/einstein-analytics/overview/
• The platform features analytics tools called Einstien Analytics that can help you build up a clear picture of
how your marketing activity is impacting sales
Marketing Analytics Process
Marketing research
MR is the function that links the consumer, customer, and public to the
marketer through information–information used to identify and define
marketing opportunities and problems; generate, refine, and evaluate marketing
actions; monitor marketing performance; and improve understanding of
marketing as a process.
Marketing research specifies the information required to address these issues,
designs the method for collecting information, manages and implements the
data collection process, analyzes the results, and communicates the findings and
their implications.”
• AMA.
Content analysis
• Research tool used to determine the presence of certain words or concepts within texts or
sets of texts and make inferences from it.
• Text can be defined from books, magazines, articles, speeches, conversations.
• It is a systematic, objective and quantitative analysis of advertising.
• Content is analyzed to understand the meaning it conveys to the audience.
• Uses of Content Analysis ;
• Reveal international differences in communication content
• Detect the existence of propaganda
• Identify intention focus or trends in an individual, group or institution
• Describe attitudinal and behavioral responses to communications
• Determine Psychological or emotional state of persons or groups
Methodologies of marketing research
• Content Analysis
• Perceptual Mapping
• Segmentation
• Experimental Design
• Concept and Benefit testing
• Copy Testing
• Audience Measurement
Perceptual mapping
• Perceptual mapping is used to compare products and brands based on the
consumer perceptions.
• The purpose of a perceptual map is to identify the images that consumers have
and their reactions to brands, products, services and other market offerings.
• USE : It graphically represents what consumers think about their brands and their
position relative to competition
• Main aspects/USES
• Pictorial representation of tabulated data
• Via correspondence analysis, biplot or multidimensional scaling
• Plots brands, products or companies against multiple attributes, even
demographics
• Useful for identifying gaps in a market and competitor strengths/weaknesses
• Can see the shift in perceptions brought about by a new entry into the market
• Has visual impact
Types of perceptual maps
• Concept tests provide the direction and guidance necessary to identify and communicate key
product and service benefits and uses, as well as product specific implementations such as
packaging, advertising, sales approaches, product information, distribution, and pricing.
• Concept tests identify the perceptions, wants, and needs of the product and service users and
decision makers. You can integrate each of these dimensions into a concept test survey.
• A variety of concept testing survey formats are available to implement. Each helps to
minimize risk and maximize revenue when introducing all types of goods and services to the
market.
Why concept testing matters
• Concept tests reshape and refine ideas so they have greater
potential for market acceptance. Specifically, concept tests:
• Indicate concentrated segments of the population to which the
product appeals.
• Assess the relative appeal of alternative product
ideas/configurations/positions. Features desirable to the targeted
market segments are highlighted.
• Provides necessary information for developing the product and its
promotion, distribution, and pricing.
Types of concept tests
• A variety of concept test approaches exist. Each has a different
objective and can provide a variety of benefits. Here are the
most important of these approaches.
• New Product Concept Tests
Identify the benefits most important to customers and the
features that are most likely to lead to the fulfillment of that
promise. Features can be categorized into “need to haves” and
“nice to haves.”
• Customer needs must be identified and prioritized for product
development and communicating to the market. This type of
concept test can also test customer initial reactions to the
concept (Reaction and Adoption Test ).
Types of concept tests
• Product Modification-upgrade Tests
Reformulations, modifications, and upgrades can add
new life to existing products and services. Here,
identifying the optimal bundle of features is a priority.
• Differentiating and timing the release of new features
that are “need to haves” vs. “nice to haves” is critical in
creating products and services that are truly “New and
Improved” and are “New Release” and “Upgrade”
worthy.
Various analysis techniques
• Statistical analyses of data using algorithms and data analysis tools
like BARC software or IRS software, wherein desired variables are
entered in the software to generate data.
• Statistical tools :
• 1. Multiple Regression techniques – to evaluate how a value of a
dependent variable changes with respect of any independent variable
e.g. impact of advertising on sales.
• 2. Discrimination analysis- classifying an object in two or more
categories e.g. a retail chain can classify stores as successful or
unsuccessful based on footfall data
• 3. Factor Analysis –Technique used to determine few underlying
dimensions of a larger set of interconnected variables e.g. a TV channel
can classify different types of TV shows based on broadly defined
genre.
• 4. cluster analysis – Techniques used to separate objects into a
specified number of mutually exclusive groups e.g. Metro and Mini
Metro cities.
• 5. Conjoint analysis – A technique to evaluate response to different
offers and inferring the overall utility. E.g.. An airline can determine
the total utility delivered by different combinations of passenger
services
• 6. Multi dimensional scaling – A variety of techniques for
producing perceptual maps of competitive products or brands e.g.
A computer manufacturer wants to see where his brand is
positioned in relation to competition.
Sampling
• Population-total number of people present in a group/market/ demographic
segment
• Sample-smaller representation of a large whole.
• Sampling- is a process of selecting a subset of randomised number of the
members of the population of a study.
• The principle of sampling is to remove bias as far as possible so that the
sample selected is as representative of the population as possible.
• The point to remember is that a lot of valuable social research is based on the
law of statistical regularity, which states that a small group chosen at random
from a large group will share much the same characteristics. This is an
important principle.
Samples and Censuses
• Census :
• ‘Census’ is the process of obtaining responses from/about each of the members of the
population.
• Sometimes it is necessary to contact everyone and not to sample. Most countries have
censuses of their entire populations. Many countries have a census every 10 years. The
main reason for a comprehensive count of everyone within a defined geographical area
is to record reliable information on a given date.
• Selecting a Representative Sample
• A representative sample is a small quantity of something that accurately reflects the
larger entity.
• sampling frame
• is a list of all the units of the population of interest. You can only apply your research
findings to the population defined by the sampling frame.
• Sample design / sample plan-
• is a definite plan for obtaining a sample from a given population.
• Sampling unit-is a geographical one (state,district)
• Sample size-number of items selected for the study
• Sampling Error-is the difference between population value and sample value.
• Sampling distribution-is the relative frequency distribution of samples.
Advantage of sampling
• Saves lot of time
• Provides accuracy
• Reduces cost
• Gives greater speed /helps to complete in stipulated time
• Convenient.
• Helps in wider coverage of population segments
Principles of sampling
• In this method of sampling, each unit of the population has the equal probability of
being selected as an unit of the sample.
• Thus if a frame has a population N = 100 then each member of the population has a
1/100 chance of being part of the sample = 1% or 0.1
• Systematic sampling
• This is a special kind of random sampling in which the selection of the first unit of the
sample from the population is based on randomization. The remaining units of the
sample are selected from the population at a fixed interval of the sample size
(represented by n)
• For example, if N = 800 and n = 40 then sample size I = N/n = 800/40 = 20 . Now we
can number the population from 1 to 800; select a random sample from 1-20; 20-40
and so on .
• The advantage of this sampling method is that, once the first unit of the sample is
randomly determined all the sampling units can be easily obtained.
Stratified sampling
• Stratified sampling is an improvised sampling over simple random sampling and systematic sampling.
This sampling will have more statistical efficiency. In this sampling method, the population is divided
into a specified set of strata such that the members within each stratum have similar attributes but the
members of different strata have dissimilar attributes. This means that each stratum is homogeneous
when compared to the population.
• If we have a population N = 200 of people living in Three different localities of Goregaon =50,
Borivali 20, and Virar =130 and we wish to target a sample size of 10% that is 20 how do we select
sample from each segment.?
• We divide sample size n(20)/population (200) = 0.1 or 10% , now when we multiply each sub
segment with 0.1 we can get the proportionate sample size.
• So Goregaon 50 x 0.1= 5
• Borivali 20 x 0.1 = 2
• Virar 130 x 0.1 = 13
• Total - 20
Cluster sampling
• Cluster sampling Cluster sampling is a sampling technique in which the population is
divided into different clusters such that the members within each cluster are dissimilar
(heterogeneous) in terms of their attributes, but different clusters are similar to each
other.
• This leads to the inference that each cluster can be treated as a small population which
possess all the attributes of the population. Hence, in cluster sampling, any one of the
clusters is randomly selected and all the units of that cluster are selected (sampled) to
arrive at inference about the population.
• For example segmenting population by cities, like Mumbai, Delhi
• The main difference between cluster sampling and stratified sampling lies with the
inclusion of the cluster or strata.
• In stratified random sampling, all the strata of the population is sampled while in
cluster sampling, the researcher only randomly selects a number of clusters from the
collection of clusters of the entire population.
Multi-stage sampling
• The multi-stage sampling employs more than one stage to sample the population
depending upon the reality. The combination of the types of sampling techniques to be
used in the specified number of stages is unique to the reality.
• Stage 1: In the first stage, the different states of the country are sampled from each
region using stratified sampling. The country can be divided into different regions
(strata), viz., east, west, north,South.
• Stage 2: After selecting some states from each region in stage-1 based on the
particulars of the stratified sampling, again one can use cluster sampling to identify a
district from each selected state by assuming different districts of each state as its
clusters.
• Stage 3: In each selected district, a random sampling may be used to select the
proportionate number of target groups (sampling units) from it.
Non-Probability sampling technique
• Non-probability sampling relies on the personal judgement of the researcher rather than
on chance to select sample elements.
• The researcher can arbitrarily or consciously decide which elements to include in the
sample.
• Non-probability samples may yield good estimates of the population characteristics, but
they do not allow for objective evaluation of the precision of the sample results.
• Because there is no way of determining the probability of selecting any particular
element for inclusion in the sample, the estimates obtained are not statistically
projectable to the population.
• Commonly used non-probability sampling techniques include convenience sampling,
judgemental sampling, quota sampling and snowball sampling.
Convenience sampling
• Convenience sampling A non-probability sampling technique that attempts to obtain a
sample of convenient elements. The selection of sampling units is left primarily to the
interviewer.
• Often, participants are selected because they happen to be in the right place at the right
time. Examples of convenience sampling include: (1) use of students, religious groups
and members of social organizations;
• Convenience sampling is the least expensive and least time-consuming of all sampling
techniques. The sampling units are accessible, easy to measure and cooperative. Despite
these advantages, this form of sampling has serious limitations.
• . Convenience samples are not representative of any definable population. Hence, it is
not theoretically meaningful to generalise any population from a convenience sample,
and convenience samples are not appropriate for marketing research projects involving
population inferences.
Judgmental sampling
• A form of convenience sampling in which the population elements are
purposely selected based on the judgement of the researcher.
• The researcher, exercising judgement or expertise, chooses the elements to be
included in the sample because it is believed that they are representative of the
population of interest, or are otherwise appropriate,
• For example a researcher may choose a test markets selected to determine the
potential of a new product on judgement basis convenience rather than
randomizing.
• Judgmental sampling is inexpensive, convenient and quick, but will have
challenges because the population is not defined explicitly.
Quota sampling
• A non-probability sampling technique that is a two-stage restricted judgmental sampling.
The first stage consists of developing control categories or quotas of population elements.
In the second stage, sample elements are selected based on convenience or judgement.
• Quota sampling may be viewed as two-stage restricted judgmental sampling that has
traditionally been associated with street interviewing. It is now used extensively, and with
much debate, in drawing samples from access panels.
• The first stage consists of developing control characteristics, or quotas, of population
elements such as age or gender. To develop these quotas, the researcher lists relevant
control characteristics and determines the distribution of these characteristics in the target
population, such as Males 48%, Females 52% (resulting in 480 men and 520 women
being selected in a sample of 1,000 participants).
• In the second stage, sample elements are selected based on convenience or judgement.
Once the quotas have been assigned, there is considerable freedom in selecting the
elements to be included in the sample. The only requirement is that the elements selected
fit the control characteristics.
Snowball sampling
• A non-probability sampling technique in which an initial group of participants is
selected randomly. Subsequent participants are selected based on the referrals or
information provided by the initial participants. By obtaining referrals from referrals,
this process may be carried out in waves.
• In snowball sampling, an initial group of participants is selected, sometimes on a
random basis but more typically targeted at a few individuals who are known to possess
the desired characteristics of the target population. After being interviewed, these
participants are asked to identify others who also belong to the target population of
interest. Subsequent participants are selected based on the referrals. By obtaining
referrals from referrals, this process may be carried out in waves, thus leading to a
snowballing effect.
• Even though probability sampling can be used to select the initial participants, the final
sample is a non-probability sample.
• Although this system is advantageous and cost effective but the researcher is dependent
on the judgement of the sample.
Experiments in Marketing
• Experiments are quite widely used in marketing. For example, experiments may be used by
advertisers in order to check the specific version of the advertisement that is likely to give
the best results.
• Say a marketer of a car brand wishes to decide on the version of the advertisement on TV
that will result in making people visit dealerships for undertaking test drive on a newly-
launched model of the car brand.
• To decide on the version of the advertisement to air on TV, the advertiser may develop four
versions of the advertisement – each of the four versions is a separate ‘treatment’.
• Each of these versions is shown to a set of potential consumers, and they are asked to
indicate whether they would undertake a test-drive of the newly-launched car.
• The four sets of responses obtained from each treatment are compared to determine which
version of the advertisement yields the highest rate of test-drive.
A/B testing
• A/B testing is a randomized experiment carried out in the online context.
• A/B testing is a way to compare two versions of something to figure out which performs
better.
• While it’s most often associated with websites and apps, but the method is almost 100
years old.
• How Does A/B Testing Work?
• The researcher divides the two sets of samples in group A and Group B. Now both sets are
shown two versions of the same attribute, like content to answer a basic question which
attribute is better?
• For example a website wants to decide how big should be the subscribe button?
• One set is shown a page which has a smaller size and another set is shown a different size.
The experiment can further be done on colour, dimensions and other attributes.
• The researcher must estimate the sample size you need to achieve a statistical significance,
which will help them get the right amount of data to take a decision
Benefits of A/B testing
• Multiple groups could be used to test multiple attributes for example how big
should be the buy button.
• What colour should it have Blue, Red? Which font should be use?
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CLV
• Customer lifetime value (CLV) is a prediction of the net value or the total
worth attributed to the entire future relationship with a customer.
• CLV is one of the key metrics that needs to be tracked as part of a customer
relationship management program.
• 3. BI Tools Business Intelligence tools like Qlik Sense, IBM Cognos, and
Tableau are also used for effective EDA.
What are R and Python
•R is a language and environment for statistical programming which includes statistical
computing and graphics. t was designed by Ross Ihaka and Robert Gentleman in 1993.
•R is mainly used for statistical analysis and representation. It has many features which
are useful for statistical analysis and representation. It has many easy-to-use packages
for performing tasks.
•
•Python, is a general-purpose, high-level programming language. It was created by
Guido van Rossum in 1991 and further developed by the Python Software Foundation.
•It was designed with an emphasis on code readability, and its syntax allows
programmers to express their concepts in fewer lines of code¹.
•Python is widely used in various software domains, including data science, web
development, and gaming.
•t is backed by a vast community of users and developers who ensure the smooth
growth and improvement of the language, as well as the continuous release of new
libraries designed for all kinds of purposes².
EDA VS DATA MINING
• Exploratory Data Analysis (EDA) is a technique used to understand the main
characteristics of a dataset, discover patterns, find outliers, and identify
relationships between variables. It’s typically used when there are no complete
expectations about the nature of those relations.
• Data Mining, on the other hand, is the process of extracting valuable
information from a large dataset. It uses sophisticated data search capabilities
and statistical algorithms to discover patterns and correlations in large
databases. The goal is to extract patterns and knowledge, not the data itself.
• In short, EDA is for understanding and exploring data, while data mining is for
extracting valuable insights and patterns from large datasets. Both are crucial
in the data analysis process.
EDA tools in advertising
•1.Google Analytics A platform that collects data from your websites and apps to create
reports that provide insights into your business.
•2. MixPanel An analytics tool that captures data on how users interact with your digital
product. It allows you to analyze this data with simple, interactive reports.
•3. Whatagraph An all-in-one intuitive marketing data platform that takes manual tasks
and hassle away from your marketing data management process.
•4. AdWords Performance Grader A tool that automates spending analysis and offers a
quick sanity check by comparing accounts to others in their “weight range” based on
monthly spending.
•5. Heap Analytics: A web analytics platform that automatically captures and organizes
every customer touchpoint to help in making faster
EDA tools in advertising
•6. Cyfe A business dashboard software that uses dashboards to monitor and analyze
data coming from websites, multiple departments, and other locations.
•7. Klipfolio: A cloud-based web app that helps you understand, visualize, and track
the KPIs and metrics that matter most. It allows you to gather, share, display, and
learn from your data in real-time
•8. Optimizely A digital experience platform that helps enterprises deliver engaging
web experiences and success through data-driven decisions, continuous
experimentation, and constant innovation
Xl for eda
Dataset Creation: You can manually input data or import it from external
sources.
Missing Values Identification: Excel can help identify and count missing
values in your dataset.
Marketing Analytics and KPI
• KPIs play a crucial role in your digital marketing strategy. They serve as quantifiable
measures for evaluating whether you meet your marketing objectives. By setting clear KPIs,
you can assess progress toward specific goals.
• (KPIs) are used to check you are on track. KPIs are specific metrics that are used to track
performance to make sure you are on track to meet specific objectives. They are sometimes
known as performance drivers or critical success factors (CSFs) for this reason.
• Key performance indicators (KPIs) Metrics used to assess the performance of a process
and/or whether goals set are achieved.
• Finally, they click an email link and make a purchase (last touch).
Programmatic buying today provides an opportunity where the advertiser can not only attach
different value to each ad-impression based on 100+ parameters but also optimize for the media
buying on a real-time basis (RTB). The benefits of RTB vary based on audience segments as well
as the intelligence of the algorithm optimizing for the bidding and creative based on it but can be
huge when done right.
Display Lumascape(ecosystem).www.lumpapartners.com
Definition:
Ad Networks
• SSPs allow publishers to jump into ad exchanges via DSPs to make their inventory
available and optimize selling of their online media space. Through SSPs, publishers
can gain the highest eCPM for their inventory rather than selling remnant space at
lower costs.
Ad Exchanges
Display space that’s unsold by either sites or networks is usually collected by an ad exchange, where it is
auctioned off to the highest bidder among advertisers, networks and agencies. It’s a very simple way to buy ad
space, and for publishers to squeeze value from their unused inventory. Exchanges let buyers purchase very
specific audiences, especially when using real-time bidding technology. Advertisers and agencies typically
use DSPs to buy display
DSP: Demand Side Platform
A demand side platform (DSP) is a system that allows digital advertisers to manage multiple ad
exchange and data exchange accounts through one interface. Real time bidding for display online
ads takes place within the ad exchanges, and by utilizing a DSP, marketers can manage their bids
for the banners and the pricing for the data that they are layering on to target their audiences.
DSPs, Exchanges and SSPs Together
• DSPs are used by marketers to buy ad impressions from exchanges as cheaply and as
efficiently as possible, SSPs are designed by publishers to do the opposite: to maximize
the prices their impressions sell at.
• SSPs allow publishers to connect their inventory to multiple ad exchanges, DSPs, and
networks at once. This in turn allows a huge range of potential buyers to purchase ad
space and for publishers to get the highest possible rates.
• When an SSP throws impressions into ad exchanges, DSPs analyze and purchase them
on behalf of marketers depending on certain attributes such as where they’re served,
and which specific users they’re being served to. By opening up impressions to as many
potential buyers as possible via real-time auctions, publishers can maximize the
revenues they receive for their inventory.
• A data management platform (DMP) is a centralized data management platform that allows advertisers to create target
audiences based on a combination of in-depth first-party and third-party audience data. DMPs enable advertisers to
consolidate online and offline customer data from various sources into a single location, then use it to create demographic
and behavioral segments that can be used to target online advertising. Performance data from each campaign is then fed back
into the DMP, creating a feedback loop that improves optimization efforts and can be used for related reporting and analysis
• Companies use DMPs to collect and analyze huge amounts of data from many different sources. DMPs are now so powerful
that companies can track users and customers who visit from banners, Facebook pages, Tweets, mobile, video and even
offline applications. They collect and analyze data from cookies, small files that keep website settings and also record user
behavior. For example, DMPs can allow e-commerce sites, publishers and advertisers to find out how many users who
bought a big screen TV online also searched for high-end digital cameras in the past week .
DSPs and DMPs Together
• DMPs can be used to store and manage any form of information, but for
marketers, they’re most often used to manage cookie IDs and to
generate audience segments, which are subsequently used to target
specific users with online ads.
• Advertisers buy media across a huge range of different sites and through
various middlemen, including DSPs, ad networks and exchanges as you
read. DMPs tie all this activity together in one, centralized location and
use it to help optimize future media buys and ad creative.
• So in summary, a DMP is used to store and analyze data, while a DSP
is used to actually buy advertising based on that information.
RTB: Real Time Bidding
• Real-time bidding (RTB) is a
digital ad buying process that
allows advertisers to evaluate and
bid on individual impressions.
• Component of a DSP, ad exchange
or network, RTB lets buyers use
their own data and targeting
options to bid for each ad
impression.
Thanks to real-time bidding, ad buyers no longer need to work
directly with publishers or ad networks to negotiate ad prices and to • Advertisers can take factors such
traffic ads. Using exchanges and other ad tech, they can access a as site, placement, price, and user
huge range of inventory across a wide range of sites and cherry-pick data into account when bidding on
only the impressions they deem most valuable to them. That cuts each impression. The winning
down the number of impressions wasted on the wrong users.
bidder gets to serve the ad, which
is often customized on the fly to
better tailor the message to the
audience. The entire bidding
process for each impression takes
less than 25 milliseconds
How Bidding Works
• The actual bidding process which takes less than 100 milliseconds looks
like this:
• 1. The Exchange makes a call to the DSP with an available impression.
2. DSP checks to see if they want this impression – it could be someone in
their retargeting pool, or in a desired audience segment according to a third
party data vendor. If yes …
3. DSP makes a bid for it based on how much they think it’s worth or can
afford to pay
4. Exchange sells the impression to the highest bidder.
5. Ad is delivered by the winning bidder.
Goals of Online Display Advertising
• There are two primary goals of Display Advertising
• first, using display adverts as a form of marketing communication used to raise brand awareness; second, as
a direct response medium focused on generating a response.
• Additional Goals of Online Display Adverts are as under :
• Delivering content. This is the typical case where a click-through on a banner advertisement leads to a
destination site giving more detailed information on an offer. This is where a direct response is sought.
Today ads often embed videos or whitepapers to deliver content directly within the ad.
• ● Enabling transaction. If a click-through leads to a merchant such as a travel site or an online bookstore
this may lead directly to a sale. A direct response is also sought here.
• ● Shaping attitudes. An advertisement that is consistent with a company brand can help build brand
awareness.
• ● Soliciting response. An advertisement may be intended to identify new leads or as a start for two-way
communication. In these cases an interactive advertisement may encourage a user to type in an email
address or other information.
• ● Encouraging retention. The advertisement may be placed as a reminder about the company and its service
and may link through to on-site sales promotions such as a prize draw.
Measurement of display effectiveness
• Different terms are used for measuring banner ad effectiveness. Each time an advertisement is viewed is referred
to as an advertisement or ad impression – also known as page impressions (page views).
• Since some people may view the advertisement more than once, marketers are also interested in the reach, which
is the number of unique individuals who view the advertisement.
• This will naturally be a smaller figure than that for ad impressions.
• Cost of ads is typically based on CPM or cost-per-thousand (mille) ad impressions as with other media.
However, the popularity of CPC search advertising and CPA affiliate deals mean that these are options too.
• As with other digital media, direct response to ads is measured through click-through rate.
• Interaction rate (IR) is a form of measurement that is unique to display ads. It refers to the many ads which
encourage the site visitor to interact through a prompt to ‘rollover’ and another Flash creative will be loaded
which may offer a clear brand message rendered in large font, a response form such as an insurance quote or a
request to obtain a SIM or a game or poll.
• When a user clicks on the advertisement, he or she will normally be directed to further information, viewing of
which will result in a marketing outcome. Usually the user will be directed through to part of the corporate
website that will have been set up especially to deal with the response from the advertisement. When a user
clicks on an advertisement immediately this is known as a click-through, but adserving systems (using cookies)
also measure view-through, which indicates when a user views an ad and subsequently visits a website within a
defined period.
Programmatic advertising
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Programmatic Advertising with AWS
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• Scale bidding and auctions across the cloud.
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supply path, and improve ad serving with millisecond latency, agility and
scalability at low cost.
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