The seismic shift to an all-digital world makes reaching and engaging the connected consumer complex and challenging. See how DataXu's new breed of advertising technology can cost-effectively discover large volumes of new qualified consumers at scale.
The online media-buying world has evolved quickly and dramatically over the last 12 years. Once upon a time, ad networks represented a revolution in media-buying efficiency. A mere seven years later, ad exchanges emerged on the scene, automating the buying process in an auction environment. And over the last 18 months, the playing field has shifted again. This time, the future of online media is being driven by demand-side platforms (DSPs).
During a Spotlight presentation at the iMedia Brand Summit in Austin, Texas, Chris Lobdell, director of sales, central region, for DataXu, said that although DSPs have been on the scene for more than a year and a half -- and a topic of much discussion over the last six months -- many marketers still don't understand where they fit in the online media environment. Essentially, Lobdell said, DSPs represent a significant leap forward in the automation of the buying process from the advertiser's side.
Jesse Cozart, director of strategic accounts for DataXu, noted that real-time bidding through DSPs provides opportunities for advertisers in all areas of the purchase funnel, from high-level brand lift to customer retargeting. But it's in the middle of the funnel -- audience discovery -- that many brands are finding new and significant value.
Buying audience segments is only part of the solution in online media, Cozart said. After all, audience buying tends to be expensive and does not scale. However, DSPs offer the ability for brands to find new audiences that are interested in their products -- ones that were previously undiscoverable through other buying processes. By leveraging the DataXu learning system, brands can tap into data analysis that cost efficiently discovers large volumes of qualified consumers at scale to drive better returns on ad spend and consumer insights that deliver competitive advantage. These new audiences are delivered in the form of online users who look and behave similarly to those who have responded positively to brand messages, as gauged by in-banner surveys.
As testament to the power of audience discovery through the DSP model, Ford ran a test with DataXu in which it compared buying segments through third-party data providers and discovering new audiences through the DataXu engine. And indeed, while the third-party data providers provided opportunities in achieving cost efficiencies, the brand found much greater scalability through audience discovery, said John Gray, SVP and director of interactive media for Team Detroit. Not only was Ford able to continuously optimize its media buying in real time, it was also able to take away valuable learnings in terms of performance that could be applied to future campaigns.
In short, brands can't afford to stay on the sidelines anymore. A new breed of advertising technology has arrived, and with it comes a new level of scale and efficiency.
Lori Luechtefeld is editor of iMedia Connection.
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