Programmatic buying is sometimes a complicated topic, but DR THOMAS OOSTHUIZEN, Global Consulting Director at Acceleration UK, breaks it down into ten easy to follow steps.
The most important issue when dealing with programmatic buying is to be aware of algorithm bias. As data sources and points grow, this problem will decrease. But in most statistical techniques, the most salient data points often dominate and will continue to do so. We have to design to avoid this.
Pure common sense will tell us that as long as some marketers have more resources than others, “average” algorithms will benefit the large and jeopardise the small. This means that, even in algorithms, creative thinking is important. One size will not fit all.
Here are some tips to ensure maximum benefit from data-based algorithmically driven buying:
1. Know your product or service category
We need to understand whether our category is growing fast, maturing or declining? Different conditions and requirements come into being once a category develops from a fast-growing initial phase into a mature condition.
2. Is the market saturated?
In a saturated market we need to look for niche segments that will enable wider expansion? To do so, we need to find out who these consumers are. Once we have done so, we need to understand how to expand the algorithm to enable us to identify and target them.
3. If growing, differentiation is less important.
However, if the segment or category is not growing differentiation is key. We need to discover what are the signals that will enable the algorithm to detect these variations. Without this, our brand will simply fall into the trap of algorithm “same-ness”, where less is, in fact, less.
4. Is our brand a leader or a challenger?
Leading brands can leverage all the economies they can access. However, smaller brands need to work far harder at being different.
5. Is our brand properly differentiated?
If so, how? This may include features, benefits, emotions, personality types, symbols, words, statements, slogans, colours, iconography and communities. It’s clear that a small brand will have a vastly different profile than a smaller one. Hence, using the same algorithms a large brand uses is simply a waste of money. We then need to build in bias our differentiation “bias” so that it becomes a focused tool.
6. Are results declining over time?
If so, why? Can a changed algorithm assist or does the problem lie outside of that? It’s always tempting to constantly adjust algorithms, but we need to be aware that the problem may be something completely unrelated. Keeping an open mind is crucial when working at a granular level.
7. Can we segment algorithm groups?
If so, can we learn more about what separates algorithms that are greater or lesser predictors of sales results? Understanding how they explain a category is very useful, particularly when this is a significant factor in planning exposure.
8. Can we build in “bias”?
Our algorithms need to contain enough granularity that we are able to fine-tune them to match whatever it is that differentiates us. By following trendsetters or up-weighting data from groups that demonstrate differences we can build this necessary “bias” into our algorithms.
9. Can we test different options and assess results?
This is usually resource-dependent. The fewer resources we have, the more we will have to rely on testing to provide the data we need.
10. Can we expand diversity?
If so, will the incrementally deeper and more creative messaging give us an above average return on investment?
This is by no means an exhaustive checklist, but by applying these tips we will be able to apply our programmatic buying algorithms more effectively.
Welcome to world of 2099
The world of 2099 will be unrecognisable from the world of today, but it can be predicted, says one visionary. ARTHUR GOLDSTUCK met him in Singapore.
Futuristic structures tower over the landscape. Giant, alien-looking trees light up with dazzling colours amid the hundreds of plant species that grow up their trunks. Cosmetic stores sell their wares via public touch-screens, with products delivered instantly in drawers below the screens.
This is not a vision of the future. It is a sample of Singapore today. But it is also an inkling of the world we may all experience in the future.
Singapore was the venue, last week, of the World Cities Summit, where engineers, politicians, investors and visionaries rubbed shoulders as they talked about the strategies and policies that would enhance urban living in the future.
As part of the Summit, global payment technologies leader Mastercard hosted a small media briefing by one of Singapore’s leading thinkers about the future, Dr Damian Tan, managing director of Vickers Venture Partners. The company’s slogan “We invest in the extraordinary,” offers a small clue to Tan’s perspective.
“We look as far forward as 2099 because, as a venture capital firm, we invest in the long term,” he tells a group of journalists from Africa and the Middle East. “Companies explode in growth because there is value in the future. If there is no growth, they won’t explode.”
The big question that the Smart Cities Summit and Mastercard are trying to help answer is, what will cities look like in the year 2099? Tan can’t give an exact answer, but he offers a framework that helps one approach the question.
“If you want to look at 81 years into the future, and understand the change that will come, you need to double that amount and look into the past. That takes us to 1856. The difference between then and now is the difference you can expect between now and 2099.”
Click here or on the page link below to read on: Page 2: Soldiers and Health in 2099.
- Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter on @art2gee and on YouTube
Street art goes electric
Kaspersky Lab and British street artist D*Face have unveiled the first-ever “art helmet” design at the Formula E finale for electric cars in New York.
The ‘Save The World’ helmets will be raced by DS Virgin Racing’s drivers, Sam Bird and Alex Lynn, as they traverse the New York street circuit during the final races of the Formula E season.
The announcement signals the first art helmet by a Formula E team, continuing the heritage of art in motorsport and the cybersecurity brand’s commitment to contemporary art, creativity and innovation. D*Face took inspiration from Kaspersky Lab’s tagline, “A Company To Save The World”, and hopes that his colourful work will inspire people to take positive action.
D*Face will announce his first-ever art car design with a custom-made livery for the DS Virgin Racing Team. Its design will be released at the “Art Goes Green” event after Saturday’s race. The helmets and art car are the latest installations in the “Save the World” collection, following a major permanent public mural that was installed in Brooklyn, New York, in May.
D*Face, whose real name is Dean Stockton, said: “It is exciting to work with Kaspersky Lab on this project and create art with a real message of hope for a better future. After all, this is our world and we need to look after it. It will take every one of us to make a real lasting, impactful change. I love the mentality of the DS Virgin Racing Team and that of Formula E by showcasing sport in a way that doesn’t harm the environment, but is still just as exhilarating and fun.
“It is time for us all to stand together and make a change… be that stopping data steals, climate change, plastic waste or using damaging fuels. I want everyone to make a pledge to do one thing that will help make a change.”
As a sponsor of DS Virgin Racing Team, Kaspersky Lab is responsible for protecting the team’s devices against cyber threats. The company sees the technical environment in the global sport of Formula E as the next frontier in furthering its research and development of new technologies to keep vehicles secure in the digital world.
Sylvain Filippi, Managing Director at DS Virgin Racing, said: “The whole team fully supports this great initiative and our thanks got to Kaspersky and D*Face for their collaboration. It’s an honour to have such an innovative artist bring his talents to bear in our team ahead of the season-finale; the car, drivers’ crash helmets and mural all look amazing.”
Aldo Fucelli Pessot del Bo, Head of Global Partnerships and Sponsorships at Kaspersky Lab added: “There is a need for innovation on a global scale, both in contemporary art and in the fast-growing sport of Formula E. Now, for the first time ever, Kaspersky Lab is proudly bringing together the two sectors in an effort to Save the World and unleash creativity, encourage freedom of expression and further innovation.”