Data Leakage: How To Stop The Waste

Victor Wong CEO Thunder CMPThis article originally appeared on CMO.com.

While DMPs, social networks, and advertising giants like Facebook and Google struggle to combat data leakage with the unauthorized transfer of their data to the outside world, a more insidious type of leakage is draining ad dollars largely unchecked.

Advertisers and agencies are investing a great deal in targeting technologies like DSPs and DMPs, which account for about 30 percent of the $20 billion being spent globally in programmatic. Even so, only a small percentage of programmatic campaigns have creatives that completely match each targeted audience. In fact, up to 97 percent of programmatic campaigns lack a targeted creative for each audience segment, according to research by AppNexus.

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5 Minute Webinar: Programmatic Creative Explained

This year, $6.1 billion will be spent on DSPs and DMPs. But over 90% of the resulting targeted ads won’t have matching creative.

That means that despite the all the money spent on data and targeting, generic or generalized creatives are being used in the vast majority of programmatic campaigns. Programmatic creative solves the problem—adapting brand storytelling to become tailored to the viewer. It’s an exciting moment. Through technology, creativity and data can finally dance.

This is the subject of the eBook The Essential Guide to Programmatic Creative Technologies. This webinar summarizes the 35-page eBook in just 5 minutes.

Want the full eBook? Download it here: The Essential Guide to Programmatic Creative Technologies

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Activating $6 Billion in Wasted Programmatic Data

Cost of wasted DSP and DMP investments without programmatic creative

Having already overtaken the majority of digital ad spend, programmatic buying continues its rapid rise.

In the US, programmatic already accounts for over two-thirds of all display media. Magna Global forecasts programmatic-driven ad spend in 2015 to hit $20.5 Bn worldwide. Growth for years ahead is projected to remain steady.

To deliver the right message to the right audience, advertisers and agencies have put about 30% of their programmatic spend, $6 Bn, into targeting technologies like DSPs and DMPs.

And yet despite spending billions, the promise of delivering the right message still hasn’t been realized.

Research by AppNexus shows that 97% of programmatic campaigns lack a targeted creative for each audience segment. That means the vast majority of programmatic campaigns use generalized or generic creatives, a factor that has lead to heavy concerns from marketers about driving ROI from big data.

It’s not all wasted data, however. Many companies have figured out how to make creative work in the programmatic era, and they are reaping the rewards:

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[eBook] The Essential Guide to Programmatic Creative Technologies

Thunder Essential Guide to Programmatic Creative Technologies

This year, $6.1 billion will be spent on DSPs and DMPs. But over 90% of the resulting targeted ads won’t have matching creative. Programmatic creative solves the problem—adapting brand storytelling to become tailored to the viewer.

It’s an exciting moment. Through technology, creativity and data can finally dance.

To help you capture this moment, we’re excited to release a free, comprehensive, 35-page eBook. The information on these pages will help you understand the quickly-evolving world of programmatic creative by covering:

  • The two main technologies used for programmatic creative
  • Example programmatic creative ad units
  • A detailed workflow comparison
  • Answers to the questions you need to know before undertaking programmatic creative
  • A programmatic creative case study: How an agency boosted sales by 565% for their client

If you are ready to explore the technologies that will transform programmatic marketing at your organization, this is the ultimate eBook to kickstart your journey.

Download your free copy today.

 

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Can Optimized Ad Creative Make Programmatic Perform 30-50% Better? These 5 Studies Say ‘Yes’

Performance lift from Thunder ad creative

Lately, there has been a lot of talk about the burgeoning relationship between programmatic media and ad creative. Most of the discourse has been about how optimal creative can significantly impact the performance of the media in theory. The purpose of this article is to look at the data behind what those gains might be in practice.

Creative optimization is the act of customizing and testing advertisement artwork and messaging to be more resonant with audiences. Since programmatic allows advertisers to precisely target specific audiences, these technologies have inspired advertisers to leverage creative variations for greater media effectiveness.

The dominant tactics include:

  1. Customizing ad creative to what matters to specific audience groups
  2. A/B testing messaging
  3. Sequencing or updating messaging over time

The expectation of gains from these tactics comes from an already established success in creative relevancy and testing in email, social, search and website content. Armed with programmatic buying, big data and algorithmic optimization, advertisers hope to translate similar gains into display ads, native ads and video.

The strategies here seem sound, but what data is there to back it up?

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Revising the Display Creative Process: Democratizing Design and Connecting Teams

Thunder creative management platform - display advertising

When it comes to design, $51.8 billion buys surprisingly little love.

What I mean is that despite display being a $51.8 billion market annually, the creative part of display advertising takes a far back seat to media planning and buying.

At the core of it, this lack of love stems from the high costs of creative production, particularly because marketers and media folks aren’t able to produce enough creatives to match the scope of what could be done.

In my experience, there’s no shortage of copy or concepts to run epic display ad campaigns. Marketers would like to use a test and learn mentality with display, but due to the costs and time involved in creative production, only a single or a few campaign concepts can actually get created. It’s online advertising in 2014 and we’re stuck in a plan and execute mode.

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