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Another day in San Francisco, and thousands more people descended upon #adtechSF. If day one was about the big thematic discussions around what brands are doing in marketing, day two was an in-the-weeds, meat-and-potato discussion on all things programmatic.
While a lot was discussed, there were 3 major themes that emerged.
The adtech industry has been talking about the mobile space for a long time, but this year at #adtechSF the conversation felt like it has finally gone mainstream. And the mobile conversation is now touching every major advertising discussion: Consumer purchase journeys; click attribution; device IDs; smartphone adoption; social media usage; and even a rally cry for a new industry metric called “cost per human.” Everything was about mobile.
Some impressive numbers are being dropped too.
InterContinental Hotels Group went from $2 million in mobile booking revenue to just under $1 billion over the last five years, AdExchanger reported.
Google has seen an increase:
Google has seen a 34x increase in "near me" searches. #adtechsf #mobile
— Overit (@overit) May 21, 2015
In the retail space, Macy’s said consumers are twice as likely to convert on a smartphone as desktop. And a key takeaway for mobile marketers: Conversion is not a linear path.
INSIGHT ★ #Mobile now plays a role through every stage of the consumer journey. #adtechSF pic.twitter.com/3XBNqPaqsP — Centro (@Centro) May 21, 2015
“I don’t understand this space and feel really anxious and nervous that I’m not keeping up,” said nobody, ever. At least not publicly. The good news is, if you feel behind in adtech but don’t like to admit it, you’re not alone.
A trend we saw at #adtechSF was an overall feeling that people have a hard time with adtech jargon. They feel like the changing pace of technology is overwhelming and not everyone is at the same point in their adtech learning curve. A number of people told us they struggle with the basics. Some of the questions we received at our booth and during our presentations highlighted that education is still an important part of the adtech ecosystem. So we put together a few things to help:
FAQ: What is #hyperlocal targeting? ► http://t.co/0yVf9W4rFp #adtechSF pic.twitter.com/ZuX52WOQqA
— Centro (@Centro) May 21, 2015
FAQ: What is viewability? ► http://t.co/qTQWqz4jfb #adtechSF pic.twitter.com/OHJBJIatU0 — Centro (@Centro) May 21, 2015
FAQ: What is a demand side platform (DSP)? ► http://t.co/tsvbbBR3sO #adtechSF pic.twitter.com/kp47zDLKBd
— Centro (@Centro) May 21, 2015
FAQ: What's the difference between #programmatic & #RTB? ► http://t.co/ZQ5XV1H7U4 #adtechSF pic.twitter.com/GBOdvfK8jt — Centro (@Centro) May 21, 2015
FAQ: What is Centro DSP? ► http://t.co/BNxxwVZh22 #adtechSF pic.twitter.com/C2o50fBaAb
— Centro (@Centro) May 21, 2015
For those who do know programmatic well, the #adtechSF conversation centered around viewability, fraud, transparency, and hyperlocal. Some of our notable takeaways:
GPS coordinates open up new ways to reach custom audiences #adtechSF #mobile pic.twitter.com/s4SfxFzM8n
— Centro (@Centro) May 21, 2015
Click/Ad Fraud is a perfect storm for Marketing to become Marketing Technologists #FutureOfMarketing #AdTechSF #keynote
— Sam Khandelwal (@subtletea) May 21, 2015
#Hyperlocal campaigns work by using precise geo-targeting. Proximity turns into engagement #adtechSF pic.twitter.com/ztfvtsk8pR
— Centro (@Centro) May 21, 2015
Go ahead and ask about data transparency. cc: @nickyIV #adtechSF pic.twitter.com/NY8pasqBi6
— Centro (@Centro) May 21, 2015
Transparency was a discussion that moved through social media as well as foot traffic at our booth. For those inquiring about the new Centro DSP in person, the levels of reporting were the most (delightfully) surprising. Many attendees commented about being impressed that reporting can be broken down to a very granular level: campaign level details, to site-level reporting, to placement-level stats, to conversion and ad-level stats.
Everyone is asking for better tools in adtech and we were happy to showcase a new approach with the Centro DSP.
The famous author Anne Wilson Schaef once said, “Good health is not something we can buy. However, it can be an extremely valuable savings account.” Personal well-being is important, but how about the well-being of your digital dollars? An investment into a well-rounded media plan – one with a variety of buys, on a variety of platforms – that touches the right audience at the right time, will reap business benefits and advertising success. This was apparent with one of our clients, a national healthcare network.
Comprised of over 80 hospitals and 110 urgent care clinics nationwide, this healthcare network was looking to centralize its digital efforts across all hospitals and clinics in order to gain more insight into its various regions and service lines. In the past, there were services in place that allowed consumers to hold a timeslot at an ER or clinic – similar to a regular doctor’s appointment – at an in-network hospital. They could also complete the necessary forms online and later arrive for the slotted appointment time.
Historically, each hospital and care center acted independently to help clients schedule appointments for both routine and emergency care. Unfortunately, this method caused a tremendous amount of extra work and limited cross functional learning and insight into how the process could be streamlined and made more efficient. The healthcare network needed to find a way to drive consumers to its single-service portal instead of keeping its process separated.
The Centro team sprang into action like a digital triage unit. Due to Centro’s vast digital experience, we were able to help the healthcare network become more formally acquainted with the industry, as well as offer best practices for successful digital campaigns. The overall solution? Centro’s audience buying team purchased audiences primarily through Pandora and YouTube, targeting based on demographic, behavior, and interesting and relevant information, particularly targeted towards insured woman. Using hyperlocal targeting tactics available on Centro DSP, the team established geo-targeting parameters of ten mile ranges around each of the network’s participating hospitals. These focused on mobile and desktop devices that frequently used sites and apps for music, display, and video streaming.
The results were impressive. Over the flight time of the campaign, over 140 million impressions were delivered, accompanied by over 418,000 clicks – an impressive CTR of 3%. Overall, the campaign was a success, contributing to over 1,000 booked online appointments at the various participating hospital locations. The healthcare network also learned how to create a repeatable, scalable, and streamlined process for the planning and execution of its media campaigns and is excited to partner on more digital campaigns in the future.
At Centro, we offer a modern approach to digital media. With over 13 years and 100,000 campaigns to our name, we leverage advanced technology, proven tactics, and industry expertise to build campaigns around the channels and platforms that drive the greatest results for our client’s specific business needs. People and technology are at the heart of Centro, and are the essential parts in every #CentroInAction story.
"... suppliers who are succeeding most are the ones that are not making things more complicated, but making it easier for people to buy, sell and trade media more efficiently and based more on the outcomes they are trying to achieve. One of them is Centro, a scrappy tech supplier servicing the mid-tail of the media buying world -- the smaller, regional and mid-size agencies not affiliated with Madison Avenue’s big agency holding companies that always seem to command so much of the industry’s attention."
When you fill the Moscone Center in San Francisco with dozens of startups, a couple best-selling authors, and digital marketers it’s inevitable that you’ll see your event hashtag trend on Twitter in less than 20 minutes.
And that’s exactly what happened today at ad:tech San Francisco where nearly 5,000 people from marketing, technology and media communities came together to share innovative ideas, build partnerships and develop strategies to attack the always-changing world of advertising.
While the conversation focused on many topics, a few key themes emerged as primary discussions both in the expo hall as well as across social media channels.
The morning keynotes—including Rohit Bhargava and Chris Guillebeau—shared insights about entrepreneurship and branding. Later on, the massive conversation around programmatic broke out into several sub-discussions.
Here are the takeaways:
Brands & their relationships with audiences are changing
Keynote speaker Rohit Bhargava encouraged brands to really think about how they talk to audiences. He urged marketers and companies to treat customers like superstars by giving them exceptional and non-obvious experiences.
Looking for the secret to happiness? @rohitbhargava has some advice for you #adtechSFpic.twitter.com/sgD8IM0tIU
— Centro (@Centro) May 20, 2015
Four trends that Bhargava noted included:
Bhargava’s encouragements resonated with the audience
#adtechSF My favorite moment was @rohitbhargava saying an imperfect product can help w/product marketing #Keynote #marketing #adviceoftheday
— Kym McNicholas (@kymbee) May 20, 2015
Enjoyed the presentation @rohitbhargava. Looking toward to reading up on the remaining trends. #adtechSFpic.twitter.com/FKNE7Eupwq
— Sheena Dougher (@SheenaSanDiego) May 20, 2015
Entrepreneurial values matter for more than startups
After New York Times best-selling Author Chris Guillebeau took the stage at #adtechSF, the conversation exploded around startups and entrepreneurship.
But it wasn’t the typical startups-to-riches conversation that drove the spike. Guillebeau urged audiences to approach their work with mission and purpose as strongly as they focus on dollars and cents.
To be happy and successful, find a balance between independence and accountability, says @chrisguillebeau#adtechSFpic.twitter.com/VYccSkZ1Ms— Centro (@Centro) May 20, 2015
How you work is just as important as the work you do Guillebeau told the crowd. If you find you face roadblocks, overcome your decision paralysis by using a decision-making matrix or just flipping a coin. Focus on delivering value. And do multiple things to keep you inspired.
"Start a side project, even if you prefer to remain in a traditional job." - @chrisguillebeau at @adtech #adtechSF pic.twitter.com/EuZbhMsdLY
— Sewon Chung (@collectingmaps) May 20, 2015
.@chrisguillebeau at #adtechSF: Think like a janitor instead of a CEO. Janitors go everywhere and talk to everyone #FutureOfWork
— Citrix GoToWebinar (@gotowebinar) May 20, 2015
In #marketing, many focus on #innovation while overlooking being helpful. Be helpful, says @chrisguillebeau#adtechSFpic.twitter.com/XCUVzgJAoT — Centro (@Centro) May 20, 2015
Mobile is evolving based on a few key trends
Speaking at the think:tech session in the afternoon, Centro VP of product marketing Tom Burg captured one of the major audience insights that is pushing programmatic:
Why is #hyperlocal targeting for #mobile so important? @tomburg explains at #adtechSFpic.twitter.com/LRraz3Fd3k — Centro (@Centro) May 20, 2015
The audience that has moved to being mostly mobile are spending their time on smartphones and tablets. And the dollars are flowing in that direction, with spend climbing from $1.3 billion in 2013 to more than $14 billion by next year, says Burg. In addition, marketers are looking for hyperlocal targeting within the mobile space. It’s not about cookies, it’s about device IDs where proximity turns into engagement. Mobile is no longer in a silo.
"#Mobile is finally becoming part of the cross-channel family," says @tomburg at #adtechSF pic.twitter.com/wRALlbnqxo
— Centro (@Centro) May 20, 2015
Burg says companies should offer value and relevancy for location-based advertising, and ads need to be timely and relevant in order to work.
Overall, the digital advertising industry has evolved in the last two years and a new-school approach has become the new norm; in the past it was all about eyeballs everywhere, but today it’s about being precise. And it’s more than IP-targeting, with GPS coordinates opening up new ways to reach custom audiences.
"When it comes to location targeting, think scalpel, not hammer,” Burg says.
CHICAGO – May 20, 2015 – Centro (centro.net), a provider of enterprise-class software for digital advertising, today announced a $30 million Series B investment by Neuberger Berman Private Equity Funds. Neuberger Berman Private Equity Funds have invested in Centro as its first direct private stake in an advertising technology company. It joins Centro’s existing investor FTV Capital, which led the company’s 2010 Series A round of $22.5 million.
Centro’s Series A investment has fueled its rise as one of the few companies in ad tech to achieve large scale, high growth and profitability on an adjusted EBITDA basis. Centro differentiated itself in the market by pioneering automated guaranteed ad buying on digital media, and then expanded with real-time bidding technology. Its platform is projected to manage more than $400 million in digital ad spend this year and is used by 2,500 customers to automate nearly 200,000 campaigns. With more than 600 employees in 32 offices across North America, Centro is delivering a platform that centralizes, organizes and automates all digital media buying on all devices, channels and inventory.
“Centro presented us with a unique opportunity to be part of market transformation through a truly differentiated advertising technology solution that already has enormous scale in the sector,” said Michael Kramer, Managing Director at Neuberger Berman. “Centro’s vision in digital media, combined with its track record and disciplined business model led us to make a sizable private investment in the marketing technology industry.”
The new investment from Neuberger Berman Private Equity Funds will help Centro:
For the past 14 years, Centro’s software platform has established it as the partner of choice for automating guaranteed media-buying. Recently, it launched a cross-channel programmatic ad buying platform with capabilities for precise mobile targeting. It also operates a private exchange for premium publishers.
“Neuberger Berman Private Equity Funds’ investment supports Centro’s vision of unifying the complex and disparate advertising technology landscape,” said Shawn Riegsecker, CEO and founder of Centro. “We’ve been one of the most competitive ad technology providers in the industry, and we are now in a more formidable position to continue to consolidate and simplify digital advertising technology.”
About Centro
Centro (centro.net) is creating a platform to make digital advertising easier. Its enterprise-class software centralizes, organizes and automates all digital media campaigns across all channels, accessing both guaranteed and biddable inventory, to achieve any objective. Our holistic approach gives marketers a single system of record to fulfill their research, planning, buying, optimization, reporting and reconciliation needs. Since 2001, Centro has successfully planned and executed nearly 200,000 campaigns across all digital display platforms and ad format types. Headquartered in Chicago with 32 offices in North America, Centro has received numerous accolades for its commitment to employees and workplace culture.
About Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages equities, fixed income, private equity and hedge fund portfolios for institutions and advisors worldwide. With offices in 18 countries, Neuberger Berman’s team is more than 2,100 professionals and the company was named by Pensions & Investments as a 2013 and 2014 Best Place to Work in Money Management. Tenured, stable and long-term in focus, the firm fosters an investment culture of fundamental research and independent thinking. It manages $251 billion in client assets as of March 31, 2015. For more information, please visit Neuberger Berman’s website at www.nb.com.
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Contact:
Anthony Loredo
646-462-4888
"Riegsecker sees this investment as a way to continue Centro’s push towards becoming a centralized ad tech platform that can combine the more operational business automation with the programmatic RTB exchanges. “We believe the race is on to become the software provider of a single sign-on platform that automates 100% of your digital spending,” he said."
"Advertising-technology company Centro has landed another $30 million from a Wall Street money manager to continue its fast growth. It's the second round of venture funding for the 14-year-old Chicago company, seen as an IPO candidate. It's one of the largest venture investments in a Chicago company this year."
"Centro has launched a new programmatic demand-side platform called Centro DSP, targeting independent agencies and mid-size brands that want to take media buying in-house.
The company says Centro DSP is geared towards mobile and hyperlocal programmatic buying, and unlike the self-serve SiteScout buying platform that Centro also operates, Centro DSP will offer a flexible range of service levels that help independents build up internal expertise, at a price point they can afford."
Read More on Marketing Magazine
Centro's advertising platform is used by advertising agencies to manage the workflow of their digital campaigns. Centro claims to have 2,500 customers and sources tell us the company is looking to raise more funding this year.