hdtMEDIA William Gu: Data + Insight+ Delivery=Three-in-One Programmatic Buying

On Nov 20, the yearly Mexpo 2014 raised its curtain in Shanghai. Themed by ¡°technology-driven marketing¡±, Mexpo brought together industry leading players and personalities, aiming to showcase the evolution and progress of the communications industry to publishers, marketing service providers and advertisers. William Gu, hdtMEDIA Vice President of Research, delivered an inspiring speech over the topic of ¡°Three-in-One Programmatic Buying¡± and had in-depth discussion with the audience around the heated ¡°programmatic buying¡±.

Gu started the speech by showing the AD tech ecosystem of American display, search, mobile and social ads. To quote him, display and search advertizing market is already mature. The ecology of search advertizing is relatively simple due to few intermediate links; In display advertizing, advertisers can access to over eleven purchase channel portfolios/combinations; Mobile and social advertizing markets are still in the stage of development and are not yet monopolized with numerous competitors blossoming.   

According to Gu, programmatic buying represents the purchase of advertizing resources via intelligent software platforms. Purchase sources mainly include Ad Exchange, Ad Network and Publishers. Gu likens Ad Exchange to Taobao where the same product is sold at different prices by different sellers, Ad Network to such supermarkets as Carrefour where the same product is labeled the same price, and publishers to manufacturer direct sales. As for the features of programmatic buying platforms, Gu summarizes down as in three folds: the replacement of people purchase to publisher purchase; the accumulation of enormous media resources; the highlight of the significance of big data. 

Programmatic buying is currently undergoing a skyrocketed growth. According to the 2013 eMarketer data, the American market share of programmatic buying will soar from 20% in 2011 to 80% in 2017. Given this trend, Gu puts forward the concept of ¡°three-in-one¡± programmatic marketing system. ¡°Three¡± stands for data, insight and delivery. After data being obtained, how should them be utilized to predict consumer trends and patterns? And how should ads be delivered accordingly? The above questions lead to the conclusion that the three aspects, being complementary in nature, shall be combined to form a holistic system. The concept of ¡°three-in-one¡± marketing system aims to realize a new type of people-oriented marketing philosophy. That is, programmatic buying manages to shift publisher purchase to population purchase and then to tailored delivery, which will lead to the master status of tailored ads. In every next phase of the shift, a larger amount of data will be needed. The gravity of big data is more than self-evident.  

At last, Gu summarized the key points in programmatic buying. He pointed out that big data don¡¯t equal a huge amount of data. Data processing shall follow the SMART principle, and requires constant testing and adjustment. Facing the future trend, Gu reckons that one of the top challenges is to materialize whole course tracing of users and associate their mobile end contents with the Internet. A sound platform in the future should be multi-channel marketing one that offers search, display and social functions.  

¡¾Event Photos¡¿

Gu sharing his brilliant idea


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