We’re excited to introduce the next segment in our Q&A series, Ask the Expert! Ask the Expert features a series of conversations with product experts where we dive into the areas you care most about like identity resolution, targeting, attribution, and more. Our next segment features a conversation about sell-side targeting.
Mike Chowla, SVP of Product at OpenX joins us to chat with Experian’s SVP of Sales & Partnerships, Chris Feo. OpenX is the world’s leading sell-side platform for audience, data, and identity targeting. In their conversation, Mike and Chris review:
- The shift to targeting on the sell-side
- How first- and third-party data are being used on the sell-side
- How OpenX is thinking about alternative IDs
What is sell-side targeting?
Sell-side targeting optimizes the way buyers and supply-side platforms (SSPs) work together. This approach moves the responsibility of inventory and audience targeting from the demand-side platform (DSP) into the SSP, providing advertisers with increased reach and better performance.
With sell-side targeting, locating your target audience becomes easier as you have a more direct connection with publishers. This increases your ability to scale against a target audience. Specifically, the SSP directly matches the buyer’s audience or data segment to the publisher inventory and audience and automatically sends the impression to the buyer’s DSP of choice via a deal ID, providing advertisers with improved reach and performance metrics as well as control over their inventory. With more direct access, your budget can likely go further, and you can decrease your effective cost per mille (eCPM) and get more working media.
“Supply-side targeting is the next phase of how supply path optimization (SPO) and buyers will need to work more closely with SSPs.” – Mike Chowla, SVP, Product, OpenX
Buying on the sell-side vs. open exchange
When buying on the open exchange, you have access to a vast number of impressions. With sell-side targeting, you can apply your campaign targeting directly on the supply-side and activate those impressions through a deal ID. Sell-side targeting works across various formats including web display, mobile, in-app, and connected TV (CTV) for a seamless advertising experience.
OpenX offers the unique capability to match users using their device graph within their SSP. This means you can target users from traditional data sources such as cookies or mobile ad IDs (MAIDs) and reach them in CTV or app environments. This gives you even more reach and precision in your advertising efforts.
The role of first- and third-party data on the sell-side
Buyers are showing a keen interest in bringing their own first-party data into the process of sell-side targeting. Meanwhile, certain agencies have been actively involved in working with identity and data. OpenX is currently collaborating with several agency ID solutions such as Choreograph, Merkel, and Horizon.
Buyers are also purchasing third-party data and data segments from various providers through OpenX’s platform for sell-side targeting purposes. By utilizing this data on the supply side, buyers are able to increase the match rate against their first- and third-party data segments in all environments. This ultimately maximizes scale against these audiences and drives a more efficient CPM due to eliminating waste.
Measurement and attribution on the sell-side
In the current state of SSP advertising, there is more of an emphasis on targeting capabilities than measurement and attribution. That said, SSPs can provide granular log level reports that can be utilized for multi-touch attribution (MTA) or mixed media models (MMM). These granular insights not only inform measurement and attribution models, but they also provide valuable optimization insights such as clearing price.
Additionally, advertisers have all of the same reporting options that they’re used to getting through their DSP because their buys are activated via deal ID in the DSP of their choice.
What to consider when transitioning to sell-side targeting
There are two primary items you should consider when transitioning to sell-side targeting:
- Supply
- Reach
Reach
Collaborating with partners who have the right capabilities can greatly improve reach and audience extension across different devices. For instance, if you bring your first-party audience or a third-party audience and are identifying that consumer via a cookie or MAID, being able to extend that targeting segment to other devices and platforms can be highly beneficial.
Supply
It’s crucial to collaborate with partners who have the right access to supply and direct connections with publishers. While targeting is essential, it’s equally important to have high-quality supply to drive performance.
Reaching consumers in a cookieless future
Whether you’re targeting on the demand or sell-side, it always starts with the consumer and who you’re trying to reach.
Significant changes in the consumer privacy landscape are impacting advertisers’ ability to access various signals emitted by consumers through their devices and browsers. Recent developments from Apple and Google have further amplified this situation.
Alternative IDs as a solution to signal loss
In response, we’re seeing the emergence of alternative IDs like UID2, Ramp ID, and ID5. OpenX supports these types of IDs and considers them crucial for audience buying in a privacy-centric cookie-less future.
We are still in the early stages of this evolution. While some of the IDs have good coverage, cookies will continue to be the primary targeting method as long as they remain available.
Nevertheless, we see alternative IDs as one of several solutions that will become increasingly important as third-party cookies disappear. Contextual buying will also emerge, and a set of solutions will come together to enable advertisers to keep finding their audience in a cookie-less world.
Overcoming signal loss with identity resolution
Looking ahead, as we continue to lose signals due to the evolving consumer privacy landscape, we will witness two things:
- Continued fragmentation
- A wide variety of identifiers
Content will continue to be available on various devices. We’re currently experiencing the emergence of connected TV, but who knows what other devices will surface over the next five to ten years. As cookies disappear, which have been the primary identifier, and alternative IDs are introduced, the wide variety of identifiers will create further fragmentation. This highlights the need for identity in the future.
Identity resolution at Experian matches fragmented identifiers to a single profile to create a unified, cross-channel view of your consumers. Our identity resolution solutions can help future-proof your marketing strategies.
How Experian and OpenX work together
Experian is a key player in OpenX’s OpenAudience solution and helps to power many of their data segments as well as their identity graph. While OpenX collaborates with a variety of providers and operates a fully interoperable platform, Experian remains valuable to the core technology within OpenX’s SSP.
“Experian powers a lot of the data segments and identity graph that OpenX has in our OpenAudience capabilities as part of our SSP.” – Mike Chowla, SVP, Product, OpenX
Watch the full Q&A
Visit our Ask the Expert content hub to watch Mike and Chris’s full conversation on sell-side targeting. In the Q&A, Mike and Chris also share their thoughts on the impact artificial intelligence (AI) will have on the AdTech industry and their go-to sources for staying up to date on all things AdTech.
About our experts
Mike Chowla, SVP, Product, OpenX
Mike Chowla is the SVP of Product at OpenX where he leads product development and innovation, from customer discovery and user research to the development, delivery, and support of a market-leading product suite. Chowla holds a BS in Engineering from the University of Southern California, and an MBA from The University of Pennsylvania.
Chris Feo, Chief Business Officer, Experian
As SVP of Sales & Partnerships, Chris has over a decade of experience across identity, data, and programmatic. Chris joined Experian during the Tapad acquisition in November 2020. He joined Tapad with less than 10 employees and has been part of the executive team through both the Telenor and Experian acquisitions. He’s an active advisor, board member, and investor within the AdTech ecosystem. Outside of work, he’s a die-hard golfer, frequent traveler, and husband to his wife, two dogs, and two goats!
Latest posts
2013 has been a milestone year for those lobbying on behalf of expanded rights of Lesbian, Gay, Bisexual and Transgendered (LGBT) Americans. With 12 states and the District of Columbia now formally recognizing same sex marriages and two highly anticipated rulings from the U.S. Supreme Court expected shortly, the momentum is currently on the side of those seeking greater recognition and support of LGBT-related issues. The speed with which public attitudes have shifted towards greater acceptance of LGBT individuals and their causes has left many marketers scrambling to devise plans that are not only inclusive of LGBT consumers, but in many instances, designed to overtly and publically court this influential and growing consumer segment. The 2013 LGBT consumer report out from Experian Marketing Services delivers insights marketers need to better understand the market that is on everyone’s radar. In this first of a series of blog posts, we’ll highlight key data from the report. Readers can download the full report at any time here. Living out Loud In 2006, when Experian Marketing Services first began measuring sexual orientation among respondents to our Simmons® National Consumer Study, we found that 3.4% of all non-Hispanic adults self-identified as either lesbian, gay, bisexual or transgendered (LGBT), a figure consistent with what leading LGBT researchers predicted at the time. However today, 4.3% of the non-Hispanic adult population self-identifies as LGBT, a figure that has risen slowly but steadily year-after-year. Younger adults have consistently been more likely to identify as LGBT, and in fact today, 5.8 percent of 18 to 34 year olds say they are lesbian, gay, bisexual or transgendered. As a result, the adult LGBT population predictably skews towards the younger age cohorts. Specifically, 36% of LGBT adults today are aged 18 to 34 versus 26% of the heterosexual population in that age range. Likewise, while 20% of heterosexual adults are age 65 and older, just 16% of LGBT adults are in this age range, though our data shows that the share of adults age 65 and older identifying as LGBT has also risen. Home and Family As a growing number of U.S. states pass laws recognizing same-sex marriages and civil unions, we see an increasing percentage of gay and lesbian Americans reporting that they are married. In 2007, for example, when only Massachusetts allowed same-sex marriage, 8% of gay men and 14% of lesbian women said they were married. Today, 17% of gay men and 16% of lesbian women are married. Marriage rates among lesbian and gay adults still lag well behind those of heterosexuals, but the gap is closing from both sides. In fact, while marriage rates are rising among lesbians and gays, they’re falling among heterosexuals. Today, 58% of heterosexual men and 53% of heterosexual women are married, compared to 60% of heterosexual men and 55% of heterosexual women who were married in 2007. The Pink Dollar Income levels are important to consider when targeting consumers, but more important is determining the amount of money left over for non-essentials after the other bills are paid. Despite earning nearly identical salaries, gay men have lower annual household discretionary expenditures than heterosexual men. Likewise, lesbian households have fewer dollars than those of heterosexual women to spend on non-essentials. This is mostly likely due to the fact that both lesbian and gay adults tend to reside in larger cities where the cost of living can be considerably higher than average. Interestingly, when household size is brought into the equation, we see that gay males actually have higher discretionary spending per capita than heterosexual men. In fact, gay men live in households that devote $6,794 per capita annually to non-essentials, which is $753 more than what heterosexual men spend. Forthcoming posts from this series will include insights into the automotive and food vertical markets; the mobile habits of LGBT consumers; and an examination of online visitors to LGBT content sites. Don’t want to wait? Download the full report now. Also, learn more about the Simmons LGBT Consumer Study, the only syndicated, national probability sample survey that measures the lifestyles, attitudes, media habits and brand preferences of the LGBT population giving marketers actionable insights into this powerful consumer segment that can be directly compared with those of heterosexuals.
The importance of affiliate marketing as a marketing channel is evident; it ranks as one of the most effective marketing channels for retailers, along with paid search and e-mail. While effective affiliate marketing relies on two groups, the publishers (affiliates) who display advertisements online and the advertisers (merchants) who aim to increase sales for their online shop, incorporating insights from Experian Marketing Services’ Hitwise can strengthen affiliate programs. I recently worked with Rakuten LinkShare on a webinar which highlights how their affiliate marketing services partnered with Hitwise create a proven package for success by providing valuable and actionable insights to affiliate marketers in understanding and targeting key consumer segments. Identify sites sending traffic to your category For our case study, we examined a custom category of Rakuten LinkShare department store clients and compared them with a category of department store non-clients. Using Hitwise, we examined which publisher sites sent traffic to each of the categories in order to identify the best affiliates to partner with. Among the top 20 publisher websites, a number of fashion and style content websites were sources of traffic to LinkShare Department store clients. Fashion and trend focused affiliate sites, namely ShopStyle and Polyvore, pointed to clear fashion editorial interest amongst those who visited LinkShare department store clients. Consider search terms used to capture consumer interest and intent Next, we looked at generic terms that sent traffic to affiliate site ShopStyle. Terms included searches for products sold in department stores such as variations of “heels” and “dresses”. The data indicates that ShopStyle is a good candidate to partner with because it attracted visits from those who are interested in fashion, looking for a deal, and who are likely in-market for specific products. Monitor effectiveness of affiliate programs and make timely decisions Hitwise can also be used by marketers to evaluate the effectiveness of their affiliate partnerships. For this example, we were able to show that Rakuten LinkShare affiliates sent a larger share of traffic to department store clients versus non-clients, pointing to a clear benefit from affiliate partnerships. As affiliate marketing is an increasingly critical channel for marketers, the importance of selecting the best and most relevant publishers is clear. When used in conjunction with affiliate marketing programs, Hitwise enables marketers to understand competitors’ online distribution and sources of traffic, select the best affiliates to partner with, and quantify the return on investment from partnerships.
New data from Experian Marketing Services’ Simmons® ConnectSM mobile and digital panel sheds light on the way smartphone users spend time using their phone, with the average adult clocking 58 minutes daily on their device. On average, smartphone owners devote 26% of the time they spend on their phone talking and another 20% texting. Social networking eats up 16% of smartphone time while browsing the mobile web accounts for 14% of time spent. Emailing and playing games account for roughly 9% and 8% of daily smartphone time, respectively, while use of the phone’s camera and GPS each take up another 2% of our smartphone day. *Activities include use of a smartphone’s native features dedicated to each activity as well as downloaded apps whose primary function falls under the given activity. For instance, “watch video” includes the act of watching video on the smartphone’s native video player as well as use of video apps such as YouTube, Netflix, etc. iPhone versus Android users Smartphone users may constantly debate which operating system is supreme, but we see clear differences between the ways consumers use their phone depending on the operating system that runs it. For starters, iPhone users spend an hour and fifteen minutes using their phones per day, a full 26 minutes more than the typical Android phone owner. Additionally, iPhone and Android smartphone owners use their phones in markedly different ways. For instance, 28% of the time that Android users spend using their phones is dedicated to talking, whereas iPhone users spend only 22% of their smartphone time talking on the device. Android owners also devote a greater share of time visiting websites on their phone than iPhone owners. On the other hand, iPhone owners spend a disproportionately greater share of smartphone time than Android owners texting, emailing, using the camera and social networking. Note on time spent It may surprise some to read that an activity like watching video accounts for such a small share (less than 1%) of the typical adult’s daily smartphone use. However, for the charts above to sum to a single daily total it was necessary to calculate individual activity contribution using a base of all smartphone owners, including those who don’t spend any time engaging in a given activity during a typical day. The chart below provides additional insights into the time spent engaging in the major smartphone activities examining only those individuals who engaged in each activity during a 24-hour period. I’ve also added into the chart a reach and frequency metric to indicate the popularity of each activity and the number of times per day that individuals engage in them. In the chart, the activities with the largest bubbles are those in which the greatest share of smartphone owners engage during a typical day and include the usual suspects: talking (79%), texting (76%), visiting websites (62%), emailing (61%) and social networking (52%). Activities with the fewest daily participants are: watching video, which 2.3% of smartphone owners do during a typical day, and reading, which just 0.5% of smartphone owners do daily. Given that nearly 98% of smartphone users don’t watch videos on their phone during a typical day, it’s easier to understand why video comprises such a low share of the average adult’s daily smartphone use. However, the chart above reveals that those who do watch video on their phone spend, on average, 5 minutes a day watching videos spread out over 4.2 different viewing sessions. For more information on consumers’ usage of smartphones, digital tablets, computers and other traditional and digital media platforms, check out Simmons Connect.