1. How Big Data is Reshaping the Digital Advertising Industry
An Entravision Company
TDWI EXECUTIVE SUMMIT 2015
How Big Data is Reshaping the Digital Advertising Industry
Oscar E. Padilla
Senior Vice President, Digital Media & Insights
September 23, 2015
© 2015 Pulpo is a fully owned Entravision company

2. Key areas we’ll cover today
Who we are
State of the digital advertising industry
The ad tech ecosystm
Programmatic 101 and key trends
The role of data in programmatic advertising
Automotive industry case study
Closing remarks

3. Who is Pulpo: Uniquely positioned to serve the Hispanic market.
140M Individual consumers
30M Hispanic Individuals
8B Transactional records
30TBs Monthly Data Refresh1
1,800 Data Sources
200+ Data Attributes
True Hadoop Platform
The only holistic ad network that reaches Hispanics across acculturation levels and digital devices.
Exclusively focused on (i)Hispanics
Data–driven platform
(i)Hispanic acculturation model
#1 comScore–ranked digital platform for delivering and reaching the (i)Hispanic market.
56 TV Stations
49 Radio Stations
76 Station Websites
300 Radio Network Stations
2M Monthly Mobile Connections
641K Social Media Connections
100+ Local Events

4. So How did we evolve into a media and Insights company?
We brought together two core business units that compliment and help deliver a holistic ad experience
PRECISE ONLINE TARGETING
Leverage in-depth & actionable consumer insights, and hyper-targeted segmentation, based on acculturation, to improve ROI
BEHAVIORAL INSIGHTS
Leverage transactional data to improve KPIs, derive business value, and accelerate growth by uncovering new business opportunities
DATA DRIVEN INSIGHTS

5. U.S. Total Media Ad spending by media ($billions)
Source: eMarketer, Sept 2015

6. US Digital ad Market is projected to reach nearly $100Bil. By 2019
US Digital AD Spending, ($Bil.)
% Change and % of total media ad spending

7. Hispanic Targeted Ad Spend Increased by 63% since 2010
Over the past five years, the top 500 advertisers boosted their spending in Hispanic targeted media by 63% or $2.7 billion from $4.3 billion in 2010 to $7.1 billion in 2014
US Hispanic media ad spending increased 12.0% in 2014
Expenditure on digital formats, network TV and cable TV is driving growth
The top 500 US marketers increased their share of US Hispanic advertising to 8.4% in 2014 from 5.5% in 2010

8. Digital Display Ecosystem 101
At its very core, the ad tech world is very simply. It’s comprised of a two party partnership between Advertisers (buyer) and Publishers (sellers)
Two Party Partnership
Advertiser
(Buyer)
Publisher
(Seller)

9. Understand Demand Side and Supply side PLayers
Publishers
Audience
Ad Networks
Publishers
Audience
Agencies &
Media Buyers
Publishers
Audience
Advertisers / Customers
Demand Side
Platform
Real-Time
Bidding (RTB)
Publishers
Audience
Data Mgmt.
Platform (DMP)
Third-Party
Data Supplier
Ad Networks
Publishers
Audience
Demand side (DSP)
Buyer
Supply side (SSP)
Seller

10. ‪IAB: The Evolution of Online Display Advertising: ‬

12. Demand Side Platforms = Programmatic
With programmatic advertising, brands and agencies can buy ad inventory in an automated way. You can anonymously target individuals with ads that are relevant to their needs and interests, regardless of the website the ads are shown on. This practice of mining data to serve more relevant ads in an automated way is called programmatic advertising.

13. What is Programmatic? It’s the Automation of Buying and Selling Advertising Using Technology
Programmatic approaches have primarily been deployed in scale in digital media while TV and Radio are still at the early stages, and rapidly growing
Media Programmatic
Tools to trade media using business logic to buy inventory. Vendor aggregates inventory from multiple sources.
Programmatic & Real Time Bidding
Real-Time-Bidding is a method of buy/selling in real-time. This approach in programmatic broadcast is still at its early stages
Data Programmatic
Data is used to hyper-target audience. Targeting is based on behavioral targeting through either first-party or third party sources

14. Why is programmatic so important to advertisers?
Source: Forrester Research 2014

17. Less than One-Quarter of Marketers “Get it”
Pick the statement which best describes your level of understanding of programmatic buying
I understand it and use it to execute campaigns
23%
Source: AOL Platforms, “7 Things You Need to Know About Programmatic Right Now. August 2014

18. 1900 2000 2014 Traditional Digital Data Driven
Marketing Complexity
1900
2000
2014
Traditional
Digital
Data Driven
Print, Catalog, Direct Mail, Radio, TV, Telemarketing
, Website, Search, Display, Affiliates, Video, Mobile, Social
Addressable TV,
Cross-Device,
Personalization,
Programmatic
Data is critical in supporting programmatic initiatives; it drives personalization, targeting and achieving more precise and relevant targeting.

19. Data “onboarding” Overview
It’s the process of matching offline data with an online
data source and creating a targetable cookie pool

20. How the process works
Source: LiveRamp data onboarding process

21. Finding an anonymous record match online
Source: LiveRamp data onboarding process

22. Automotive Business Use Case
Leveraging first-party data to develop lookalike models

23. Automotive online advertising is projected to grow to over $12 billion by 2019
U.S. Automotive Industry Digital
Ad Spending ($ Billions)
$7.8
billion
Source: eMarketer, March 2015

24. Display and video advertising are the most effective digital tools for shaping purchase decisions
Online ad platforms that most influence automotive purchase decisions of US internet users (% respondents)
Source: Television Bureau of Advertising and the Fugures Company Q3 2014

25. But precisely targeting audiences that matter most continues to be a challenge

26. Client First Party Data Luminar Consumer Behavior Data
Approach: develop look-alike models based on best customer and through data enrichment
Client First Party Data
Luminar Consumer Behavior Data
How we do it: Luminar integrated client first party data with Luminar’s transactional data to enrich client guest file, identify known Hispanics, and build a richer behavioral consumer profile.

27. Building high-value prospect from media conversion data
We leverage client’s media conversion data to generate greater consumer intelligence and deliver robust targeting solutions for both online and offline channels 1
Ingest Customer
Frist Party Data * 2
Luminar Data
Enrichment 3
Custom
Modeling 4
Identify High-Value
Prospects
Ingest conversion data from digital campaigns and other past campaign conversion data assets
140 Million Households
30+ Millions Hispanics
1,200 Data Sources
Formulate appropriate models based on your needs
Score Luminar data sources with
custom client models
Customized Audience Reach
High Value Prospects After Scoring
Propensity media output can be over layered with Pulpo for precise targeting online
CPM reach program
Drive audience either through dedicated landing page or Automotive main page
Pulpo delivers audience media reach
Integrate Chevy’s automotive KPI objectives

28. Data Matching three-step process1 2 3
SECURE UPLOAD
MATCHING
DISTRIBUTION
Custome r Records
Online Devices
PII
Removed
Securely uploaded enriched data set ready for modeling
Anonymous matching of segmented data
Data activated for use in marketing applications

29. Results
We leveraged customer data as first party data to develop appropriate models
Ingesting conversion data and modeled offline providing a scalable approach to build a more robust predictive analysis, then onboard the final prospect list
Keep in mind that the average anonymous cookie has fewer than 25 different pieces of targeting data associated with their profile
The predictive models helped find new prospect to target online who were in the path to purchase but not yet in market
We were able to produce “custom audiences” of customers to target across channels and devices

30. Five Key Take aways…
By the end of 2015, programmatic will account for 55% of all U.S. digital display ads ($14.8Bil.) 1
Demystifying the programmatic landscape is critical to reach its full potential, only a small percentage of marketers fully understand programmatic advertising 2
Data is essential to a programmatic strategy 3
Marketers are turning to their first-party data to drive the greatest value (i.e. CRM, transactional data) 4 5
Programmatic is beginning rapidly propagate outside digital and into non-digital media (TV, Radio)

31. Thank you! Oscar Padilla, Pulpo
Senior VP Marketing, Digital Media & Insights