Artificial Intelligence: Putting the Humanity in Programmatic Buying

For decades, science fiction writers and Hollywood have delivered tall tales about artificial intelligence originally designed to take over the mundane tasks for humans eventually launching attempts – sometimes successfully – to take things over. And through it all, the hero of the story must rediscover the humanity inside him or herself in order to prevail.

In the programmatic advertising space, we’re in the expositional flashback phase of that tale, where the technology is developing, and the humans involved haven’t yet fully realized the true potential – or calamity – in what lies ahead. I realized this while speaking on a Client and Agency Panel at Conversant’s Annual Sales Conference (who should be commended for bringing client and ageny-side people on board to give our point of view). Programmatic buying is at it’s tipping point, where it’s about to become mainstream (even print is getting in on the action) and deliver on it’s promise of automating much of what used to be solely a human decision: when and where to insert an ad in front of an audience.

But as powerful of an automation tool as it is, there are still three essential human elements that need to remain well, human, for programmatic to be truly game changing:

Goals are intrinsically human, and should be communicated by them

In the movies, the robots always have the simple goal of eliminating the humans (which is a bit preposterous when you think about it, because what will they do once they win?). But we as marketers have much more complex – and often conflicting – objectives. And whether you’re working with an agency trading desk or a managed partner solution, those need to be effectively communicated to the team managing the buy. You need to clearly prioritize goals, and provide or agree upon KPI’s by which you’ll measure those goals. And in speaking with many people on all sides of the programmatic buying landscape, the best way to do that is through human interaction: in-person meetings to define goals, memoralized in writing with a brief, RFP, or plan that acts as the guidelines for your campaign. The computers can’t achieve your goals until you tell them what they are, and how to prioritize. And if everyone on your team isn’t in lock step, the computers will be confused.

Machines make choices. Humans make decisions.

Machines understand the if-then logic of rules, and choose whether or not to bid on a specific user far faster than any human can. But they can’t make decisions unless you provide them with the logic to guide those decisions. You need a smart human to set the rules of the bidding structure based on the objectives, with very clear logic to prioritize multiple KPI’s. As the data accumulates, and the algorithms adjust their bids to hit your goals, you’ll need a human to review the data to look for patterns and set up new rules, and new logic, to enable the machines to make better choices over time. Many platforms are set up to learn over time and create their own new rules, but they need humans to review to decide fi those new rules are achieving the right objectives.

­Don’t forget the creative side

Most people involved in programmatic buying are probably left-brain brain people, crunching numbers to see patterns and using logic and reasoning to come to conclusions. But don’t forget that the consumer you’re reaching is human, and will most likely act based on an emotional trigger that happens to be very well-timed by your programmatic buy. So as you adjust the rules of your bids – the timing, the segment targeting, the sequences – make sure you’re working side-by-side with the right-brained people – your creative – to make sure the messaging speaks directly to that moment in the consumer’s path to purchase. Computers can optimize our buys, but they can’t write copy to appeal to our emotions.

 

Which brings us back to our science fiction story. During the climax, when the audience is sure the machines are going to take over (which by many media prognostications, programmatic should take over soon), some emotional tie to humanity – a love interest, the future legacy of a family, etc. – inevitably gives the main character the motivation or the knowledge to defeat the onslaught, and go on to rebuild and live happily ever after. Programmatic buying fits snugly into this fairy tale: if we fully realize the importance of the human side to it now, we can harness it to produce some pretty amazing results, and truly revolutionize the way we plan and buy media – both digital and traditional. And the machines will work for us, not the other way around.

Politics and marketing make strange bedfellows

If you talk to any good creative they will tell you politics and good marketing don’t go together. They will tell you that there are too many formulas for political advertising … and that it is tough to be really creative. I have seen both sides. Some really creative political work; lots of formula work; and some really bad work (especially in the last election). And in my career, I have done all three. In the new movie NO, a desperate situation leads to creative marketing with almost a Pepsi-like political campaign. When Chile is faced with the daunting task of ousting its longtime leader, the powers that be decide they have to take risks. So, they do. And, surprise, it works. By taking risks, I mean treating the candidate or party like an agency would treat an actual brand. It doesn’t happen very often. Political marketing people think they are building a brand but, for the most part, they are just using formulas, like putting him or her with the family, showing them with the right peeps and reacting to what the other candidate or party does. And, of course, counting the lies. That is pretty much a proven route to at least a reasonably close campaign.

Obama did it right in his first election by creating the CHANGE brand. His platform was as intriguing as he was. The second time around, his brand was basically, I AM NOT ROMNEY. Which worked also because he was on the right side and he had very sophisticated polling methods. Sometimes that’s all you need. Well, that and a talking horse. You really can’t go wrong with a wealthy talking horse ad.

Ad So what about when brands pick sides? We just did a piece for our client (the Las Vegas Convention and Visitors Authority) that played off of the NSA controversy. The ad is featured here and did pretty well, garnering more than 10 times its cost in earned media. That is media earned from the publicity – not from paying to have something placed in media. Afterward, I listened to an interview with Stuart Elliott from The New York Times where he intimated that as long as it’s a one-time thing and Las Vegas doesn’t pick sides … it’s cute and fun. I may be putting words in his mouth, but he seemed to be saying that brands like Vegas can have fun with current events but not become an active part in them – at least a brand like Vegas.

At R&R, we pride ourselves on Building and Protecting the brands we work for. And there are no other agencies in the country that have a marketing arm and a political arm that are both successful in what they do to the level we are. But even around here, it’s an interesting argument. Can a brand pick a side on a public issue and ride with it … or is politics too serious and a brand like Vegas too fun? Will some of that serious issue taint the brand or will the issue turn and the brand suffer? Or are big issues just to negative and a brand like Vegas too positive? It usually makes for a really long meeting.

It’s a tough one. The truth of the Vegas brand is Adult Freedom. That is what led to What happens here, stays here® and most of what happens with the brand. That puts Vegas clearly on the side of privacy and all the freedoms that allows. Vegas is a place where you can do and be what you can’t at home – and no one will judge you. Seems pretty clear that Vegas is on the side against the NSA, whether it’s done in a fun way or a more serious way. Of course, the NSA has its own WHHSH aspects. I recently read a piece where a man tries to get a record of the information the NSA has on him through the FREEDOM OF INFORMATION ACT. The NSA responded by telling him that they can’t send him that information because they can’t reveal that they have it. That would be a risk to national security. Vegas is kind of the same way … if you tell on one person, everyone is in danger.

Comedians don’t stop until it’s not funny anymore. I use The Daily Show and The Colbert Report as a measure of what still has play and what doesn’t. But you could really use any late night talk show. Or you could just do a Google search, watch the chatter on Twitter. There are a million ways to see if something is still a story. Later this month, the head of the NSA is speaking here … so really the story is just building and building. So there is still play in the NSA.

whathapOne of the tweets I continue to see on Twitter is “What happens in Vegas, stays in an NSA database.” This is being passed around continually. It might actually be gaining momentum as a tweet meme. And some would argue a tweet like that is dangerous to the LVCVA brand. Whether you like it or not, social media erodes What happens here, stays here. That’s why we came up with the #knowthecode campaign in the first place. With so much being shared online, the whole WHHSH claim seems suspect. Las Vegas has to protect that … R&R has to protect that. But is there a cost to going too far in the real world versus the marketing world? Or is there any difference anymore? Has the social media world brought the two so close together that there are fewer lines between them? And is there a danger of a brand looking like it is taking itself too seriously

This isn’t really new. We have done this sort of thing before. When Biden said something he shouldn’t have, we commented. When Obama said something detrimental about Vegas, we shot back. We defended Prince Harry. But we didn’t go too far. We stayed in the brand’s voice and made it a short blast and not a continued effort. And we aren’t the only people doing it. A lingerie brand played off the NSA thing with a message to Snowden … again, pretty much a one-time shot. And a number of brands are defending the LGBT issues in this country … Oreo has done a fantastic job of this.

And in Brazil, protesters are picking and choosing brands to use against the government by their slogans. “Come to the street,” a Fiat slogan used to celebrate the Confederations Cup soccer championship, and “The Giant woke up,” a slogan for Johnnie Walker in Brazil, have both been seen on signs and on Twitter.

What if we do go too far? I guess there is always the danger of going so far that we are all arrested and put in a very dark cell where no one will ever find us. It would be hard to put the whole city of Vegas in such a cell, but certain R&R folk could disappear and no one would be the wiser. I am always looking over my shoulder. Then there is the danger of Vegas seeming un-American. What is more American than total self-gratification for a weekend? Nothing. I know this from personal experience as an American who does a lot of selfing. And there is the risk of losing U.S. government conventions and meetings that are held here. Nah … politicians enjoy selfing way too much.

I would love your opinion on this. Are brands separate from the issues of the people? Is there a responsibility to become part of the conversation? Is it dangerous for a brand to speak too loudly on an issue even if it fits the truth of that brand? Let me know … I am listening.

This message was brought to you by THE COMMITTEE FOR A FREE LAS VEGAS.

Unique Utilizations of Print

Print is one of the oldest forms of marketing, but it still has many useful aspects that keep it a valuable source of advertisement.

Print is often overshadowed by high-tech forms of media, such as broadcast and the Internet.  These outlets are constrained by the availability of computers and televisions, which in some parts of the world may be limited. In areas where broadcasting or digital media is unavailable, print becomes valuable in marketing.

Print also allows marketers to relay more information than broadcasting. For example, Gatorade utilizes plans to uzilize print in the 2nd Qtr to market its G Series line which features pre-workout and recovery drinks.  With more products in its G Series line, a television spot  limits Gatorade from explaining each product in the line and its importance to athletes.  Gatorade plans to use print ads for the 2nd Qtr which allows for more space to convey all the information they want to provide. Gatorade plans to reach more athletes by distributing the ads in locker rooms, at summer camps, and in sideline programs.

Print ads are good for brands who want to display more information to a targeted audience. For example, a prescription ad on television must fill its short allotted spot with legal disclaimers and only brief highlights of its product.  However, with print, the company can list much more information about a drug as well as distribute it to specific print outlets so it reaches its targeted population. For example, a heart medication could be placed in Men’s Health and educate its potential users.

Print is also a valuable medium for controversial ads that might oppose a bigger market. While an ad may be pulled instantly from broadcast, a print ad is much harder to regulate. For instance, UK’s SodaStream television spot was banned for “denigrating the soft drinks industry.” To get their message out, they resorted to print ads in major UK newspapers, which allowed them to convey the message that television wouldn’t allow.  In the UK advertising regulatory system, print ads take much longer to ban since complaints must be made to the Advertising Standards and the entire decision process goes through after the campaign is complete.  SodaStream’s print ad campaign was effective against the soft-drink industry and even pointed out Clearcast’s role in favoring bigger marketers.  Print’s slower regulation and censorship process allows for print media to be more effective for controversial topics, allowing for campaigns to make a stronger impact.

Print media will continue to have a prominent role in advertising globally as it overcomes the limitations faced by other forms of media.

Millet Pezzi, Crystal Krummel, Sean Good contributed to this article.

Did 2012 live up the political hype? Yes!

As we are currently in the first political window of 2013 in Las Vegas and dealing with make-goods and LUR’s (lowest unit rate)….let’s review 2012.  We were all warned going into 2012 that it was going to be a strong year politically, with record breaking spend, etc.  Did it live up to the hype?

Short answer: Yes.  Additionally, both presidential campaigns spent heavily on advertising in Nevada and Colorado with Las Vegas and Denver media markets seeing the most presidential political advertising. According to the Washington Post and Kantar Media, Nevada as a whole saw $55 million in total TV political ad spend with Las Vegas (ranked #40 Nielsen TV market) accounting for $46 million. Colorado reached $73 million total TV ad dollars, with Denver (ranked #17) racking up $59 million of that take. See political TV advertising spend broken down by state and by candidate for the 2012 election with this interactive map!

The Wesleyan Media Project reports that in 2012, TV viewers were bombarded with more than 3 million ads related to the presidential and congressional elections.  Overall, there was a 33% increase in the number of ads and 81% increase in spend compared to the 2008 election.  While local news is always impacted heavily by political advertising and is the main focus, the Obama campaign also focused on talk and reality shows and niche cable networks more so than the Romney campaign. This explains why the Obama campaign was able to spend $4 million less in TV ad dollars in the Las Vegas market than his counterpart Romney, yet receive five thousand more total ads. This could very well have proved a critical strategy in Obama’s win of the crucial swing state of Nevada.

The TVB reports that local TV stations captured over 80% of total television spending in the political category during the 2012 season.  “Television stations total political revenue, in the face of increased competition, from new and social media, continues to boast a high growth rate: $1.5 billion in 2008, $2.1 billion in 2010 (+35%) and $2.9 billion in 2012 (+38%).”

Obama spent more on social campaigning than his counterpart by 10 to 1.  Obama spent a whopping 47 million dollars to target key constituents nationwide.

It was clear that the focus was much more important for the Obama campaign for driving voters to influence and create actions. Building this community proved vital as President Obama had more Facebook fans, more Twitter followers and more YouTube views than Romney.

So it appears that in the political TV and new/social media advertising game during the 2012 election, the Obama Campaign clearly had the smarter strategies. However both party lines continue to show the same trend with increasing their advertising spend each election year.

Pamela Payne and Cameron Partridge contributed to this article.

GLBT to LGBT to GSD?

Not long ago, the LGBT community was referred to as the GLBT community.  And if a London-based advocacy group gets their way, it will soon be the GSD (Gender and Sexual Diversities) community.  The group believes that the term LGBT still excludes “a whole batch of people who didn’t feel able to go to mainstream counseling organizations and also wouldn’t be welcome at LGBT counseling organizations.”  This group could include asexual individuals, swingers and any other “non-traditional” sexual preference.

Read more here at Huffington Post.

Urging CNN to Increase their Diversity

While CNN has been criticized for its lack of diversity among its news anchors in the past by the NAACP, the National Association of Hispanic Journalists is now joining the cause. The NAHJ is challenging CNN to be more reflective of its viewing audience by diversifying its broadcast team since the current roster includes only one Latino. The NAHJ President does admit that, “Diversity is not an issue that is unique to CNN. It’s an issue that is the same for many media companies.” CNN President Jeff Zucker is now scheduled to appear at the NAHJ conference this weekend.

More available on Huffington Post and HispanicBusiness.

Contact, Content and the Consumer

According to a recent BtoB Magazine research study, in 2013, B2B marketers will likely spend on the channels they think are effective in getting content in front of prospects.  Of those surveyed by B2B Magazine, 93% said they would be updating their website as this was their highest source of information sharing.

The New YorkerBut no matter what, a flashy website will only work for so long.   And as cliché as it sounds, content is King.  And The New Yorker is continuing to build its empire.  Over the past several years, The New Yorker has launched numerous new Web channels and looks to continue the trend in the next couple of months with the launch of a Science and Technology channel as well as a Business channel.  The Science and Tech channel will expand the number of blog posts from writers such as Ken Auletta, Gary Marcus and Tim Wu.  While the Business hub will feature more infographics and video content and will feature the magazines most popular writers such as Malcolm Gladwell.

Another established brand looking to reinvigorate itself is NPR.  With the birth of digital radio, the organization is launching its first advertising campaign in four markets to push its digital radio assets this month in four markets: Dallas, Indianapolis, Orlando and San Diego.  The campaign will run for three months and include TV, billboards, transit, print and digital advertising and will be funded by a grant from the Ford Foundation.  While it doesn’t rely on advertising for support, NPR understands the importance of maintaining relevancy to its current audience and the need to expand its digital offerings to complete with the number of digital radio formats now available.

The Season

Powerful ads during the Big Game were remembered by some, but just a little more than a week after the game, most of us have forgotten most of the ads. Even with the power of social media and the YouTube Ad Blitz after the game, some brands scored bigger than others. Which poses the question: Is the game a platform for brands to kick off a campaign or a platform for one-offs.

The most forgotten spot is Audi’s Prom. It’s also one of the most conceptually sound spots in the Big Game. Who hasn’t thought back to that prom or dance where they did or didn’t grab that moment? The brand that lost its way was Coke. Coke is supposed to bring happiness to everyone. Making happiness a dog-eat-showgirl competition is not their brand. The best ads were Mercedes Benz Soul and Miracle Stain. They both had everything I need for a great commercial … a great epic story line, fantastic performances, and a communication at the end that seals an emotional tie to the message and the brand. Still, with all that money and talent, a tweet got the most play.

One note … even the worst advertisers during the Super Bowl reap the benefits. For many brands, awareness is a win-win, even if the ad is being touted as a disaster. Century 21 gets talked about for two weeks before the game and gets Web and customer traffic to make just being in the broadcast worth it even though the ads end up at the bottom of most lists. There are many other brands that feel the same way. Look at Audi. They had a pretty good ad and believe that a TV buy in the Super Bowl is the best way to go year after year … because it works.

It seems that, unlike the game itself, for most brands, the Super Bowl ad competition doesn’t end at the final whistle. Brands are clearly hopeful that their campaign kickoffs lead to long returns with their consumers.

Online advertising predictions for 2013

As we ring in the new year, advertising trends will continue to change and progress. In 2013, online advertising is expected to be even more innovative and dominating than in past years.

  1. Mobile traffic will continue to rise. It is expected that by the end of 2013, one in three paid clicks could come from a tablet or smartphone. With this drastic increase in mobile usage, in-app advertising spend is expected to skyrocket as well.
  2. Cross-channel and cross-device advertising and measurement will explode! Where customers used to simply click on an online ad and purchase, the lines between online and offline worlds are becoming blurred as customers utilize mobile devices to conduct more product research than ever.
  3. Owned and earned media will become the rule, not the exception. Advertisers will leverage their owned media as marketing tools even more so than in years past, taking advantage of the cost efficient control that they have to reach niche audiences. In a year where word-of-mouth marketing will continue to grow, earned media will be that much more vital as the customer becomes the channel.
  4. Online advertisers are going to finally realize the true value in social media. The fact is, we no longer live in a world powered solely by direct response marketers. It is now all about building relationships with customers and gaining access to larger audiences. A new year is just going to continue to enforce the importance of utilizing social media, and even provide deeper data to support it.
  5. Online marketing will become even more targeted. Facebook has already taken the plunge moving far beyond basic demographic targeting. With custom audiences where sponsored stories or ads can be used to target a specific set of users, what’s to come next?
  6. Real-time optimization will be the norm.  Advertisers have now moved beyond the click and require insight into the brand impact of their online activity alongside their click data. We are moving towards a time in which advertisers will be able to track all of their campaigns against key metrics, and utilize online dashboards to adjust creative, frequency and more to optimize campaigns in real-time.
  7. Online display formats and units will continue to evolve. With digital infographics becoming vital in telling an advertisers’ story in 2012, the new year will only further enhance the need for online marketers to utilize different online formats to more effectively deliver their messages. Newer, larger and more customizable online units will continue to be developed in 2013, offering advertisers more innovative ways to build their brands.

Read more about 2013 trends and predictions:

http://www.adexchanger.com/data-driven-thinking/online-marketing-top-trends-for-2013/

http://www.millwardbrown.com/ChangingChannels/2012/Predictions/

http://www.mediapost.com/publications/article/190026/2013-predictions-from-online-ad-marketing-experts.html#axzz2H1lAuGAx

Jimmy Kimmel is ready to rumble

This week, Jimmy Kimmel is moving from his midnight time slot to 11:35 pm, entering the ring with the late-night heavy-hitters of Letterman and Leno. ABC is hoping that the 25 minute difference will help boost their ratings, because simply put, many people decide to go to bed around midnight. There are a lot more people still watching TV at 11:35 pm than at midnight. This shift is historic because it will be this first time that all three of the major broadcast networks will have late-night talk shows all competing at 11:35 pm.

Jimmy KimmelThe arrival of Kimmel in the 11:35 time slot means a younger generation is starting to plant its flag there. At 44, Kimmel is younger and edgier than Leno and Letterman, both in their 60s, and brings the highly coveted 18-49 demographic. Kimmel will also have a head start on Jimmy Fallon, who has been rumored to be the heir apparent for Leno at NBC.

It’s no coincidence that the time shift comes at a time when Kimmel’s audience is steadily growing, while his rivals’ ratings are slipping. This past year, Kimmel was well-received hosting the White House Correspondents’ Dinner, and hosting the Emmy Awards.  Jimmy Kimmel Live! is also coming off its most-watched season in five years, growing 3 percent in total viewers and proving the only broadcast late night show to register an uptick this year according to ABC.

Although the Kimmel show still lags far behind Jay and Dave in the ratings, with a viewership of only 1.9 million, compared to Leno’s and Letterman’s viewership of around 3 million each, Kimmel is a legitimate threat to the current late-night landscape and should prove to be a solid move for ABC.

This Week in Travel & Tourism — 11/19/2012

INTERNATIONAL

Travel summit notes rise in demand for exotic destinations

Travel agents and tour operators who attended Ensemble Travel Group’s recent Las Vegas conference report that travelers are increasingly being drawn to exotic and off-the-beaten-track destinations. “The hot destinations are Ecuador, the Galapagos, Burma, Cambodia, Vietnam, African safaris. People are going for big-ticket items. It’s like they want to spend money now because they don’t know how things will be later on,” said Judy Ruffini, a regional sales manager at General Tours.

Airlift problems hamper tourism in the Caribbean

Air travel between Caribbean islands usually consists of multileg flights that take several hours. This lack of convenient flight options could be one reason that tourism in the region is not growing as rapidly as hoped, tourism experts say. “Intra-Caribbean tourism is down by 40% in the last five years. Make air travel more accessible — get rid of the visa regulations, make it cheaper — and more people will travel. It changes the equation,” said Richard Doumeng, president of the Caribbean Hotel & Tourism Association.

Luxury travel is leaning toward uniqueness, customization

Luxury travelers are increasingly demanding customized trips heavy in out-of-the-ordinary experiences, experts said during Signature Travel Network’s Sales Meeting and Trade Show in Las Vegas this week. “We have arranged white-linen banquets on the Great Wall and trips down a tributary of the Li River (Guilin) in bamboo rafts. We take clients to studios of major artists and fashion designers. In Beijing, there’s a private $300 million art collection, which people can see, and be taught by the owner how to understand Chinese art,” said Margot Kong, a vice president with Imperial Tours in San Francisco.

DOMESTIC

Survey: Holiday travel spending will rise 12% this year

An annual survey by Allianz Global Assistance USA indicates that holiday travel spending this year will reach $72.9 billion — up about 12% over 2011. Forty-five percent of respondents said they are “very confident” that they will take a holiday vacation this year, compared with 42% in the previous year.

Business travel could benefit from U.S. “fiscal cliff,” group says

The impending “fiscal cliff” of expiring tax cuts and reduced federal spending could benefit business travel over the long term, the Global Business Travel Association says in a report. “The elimination of tax cuts and reductions in federal spending would lead to reduced deficits and lower interest rates over the long run, resulting in business travel spending and an overall economy that grows more quickly after absorbing the shock of the fiscal cliff,” the GBTA said. However, the U.S. economy stands to lose $20 billion in business-travel spending over nine quarters if the economy goes over the so-called cliff, the group says.

U.S. Travel Association grass-roots program will focus on Congress

The U.S. Travel Association has unveiled plans for a grass-roots initiative that aims to cultivate industry advocates in Congress. “Every congressional district in America can thank travel for jobs and economic activity, so we’ve designed a program to build our bench of champions in Congress, those members who will stand with us and play offense on policies to protect and stimulate increased travel,” said U.S. Travel President and CEO Roger Dow. The Travel Blitz program is set to launch next year.

CRUISE

Norwegian overcomes hurdles to become successful in Hawaii

Norwegian Cruise Line’s 10% price increase on Hawaii cruises next year is a big improvement from several years ago, when the line’s 2,138-passenger Pride of America was struggling.

AIRLINE

Virgin Atlantic gains short-haul slots at Heathrow

Virgin Atlantic said it has been offered all of the Heathrow short-haul slots available following International Airline Group’s acquisition of BMI. International Airline Group is the parent of British Airways.

DOT approves Delta’s route to Tokyo from Seattle

The Department of Transportation has approved the request from Delta Air Lines to transfer service from one of its two routes between Detroit and Haneda Airport in Tokyo to Seattle. The switch will “open Haneda access to a new region of the country,” the DOT said.