GroupM launches Trusted Marketplace at 2016 Digital Momentum

By Yang Lan Source:Global Times Published: 2016/9/18 17:38:39

We are living in a fast-changing digital world. The explosive growth of information technology and a burgeoning Internet economy has ripped the traditional marketplace into pieces, bringing new challenges - and opportunities - to advertisers, marketers and media.

GroupM, the world's leading media investment management group, recently organized the 2016 Digital Momentum Conference, inviting key advertisers, marketers, business managers and media partners to discuss the challenges that they face in the digital era.

Doing business was "simple" in the past, according to Rob Norman, chief digital officer of GroupM Worldwide and chairman of GroupM North America. From 1955 to 2005, when broadcast media dominated the world, big brands could easily target customers and became famous solely by advertising on television and in print magazines. More ambitious brands, however, built their empires by spreading their messages over a variety of media in order to create a competitive long-term advantage.

"What they did was, simply by negotiating year after year at one percent below the marketplace inflation, they created a sustainable advantage that lasted half a century," said Norman.

However, 2005 was a benchmark year for media, when half of the American population shifted to the Internet. The penetration of broad band into the average Western household ushered in the first wave of change. Newspapers went online. Radios started streaming. Out-of-home transformed from a static billboard market to a dynamic digital delivery market, Norman said.

"Many people said that the change was a world that went from broadcast to desktop to mobile. But the real thing was that the world went from channels on television to sites online and then to Apps," Norman said.

Mobile apps will be the next big change in the world, according to Norman. Apps will dominate everything and everywhere: entertainment and audio, hotels and airlines, banks and services and health and fitness. They will also create a new interface, bringing new user experiences that completely change the way people think and interact.

GroupM announces the launch of the GroupM Trusted Marketplace Photo: Courtesy of GroupM

Back to consolidation

"On the planet, there are maybe 20 companies that have managed to disrupt the business models of almost every other company," said Norman. Such companies are beginning to dominate the media and commerce, taking users from peak fragmentation to consolidation.

"So we can focus our attention very clearly on how people live their lives through companies like Alibaba, Tencent, Baidu, Xiaomi and others. We can think about what work we need to do together to create the right connection with consumers and the right positioning for brands within those environments," said Norman.

It is still a complex world, said Norman, but it is becoming simpler, since marketers and advertisers need to understand fewer players. It will take extraordinary effort and long time to understand these players with depth and determine the right actions.

Internet giants mentioned by Norman are changing the digital landscape in China. Like the disruptors of the global market, they are shaping the ways that Chinese consumers think and act.

"China has entered a new era of consumption and communication. Nobody has experienced this before, so no one knows the rules. The pace of this change is also becoming faster and faster, but we need to welcome and incorporate these changes with open minds," said Mark Patterson, CEO of GroupM Asia Pacific & Chairman, GroupM China.

This year, GroupM mobile launched a one-stop solution for mobile marketing GroupM Humming Bird. The platform integrates firsthand data from online and offline sources, using the data to help advertisers understand customer behaviors and assists in developing media and communication strategies. "Data is the starting point of innovation," said Benjamin Wei, managing director of GroupM mobile.

Taking advantage of data

Brian Gleason, Xaxis Global CEO, discussed how to use data to predict consumer behavior and achieve effective marketing. Xaxis is the world's largest programmatic audience company that connects advertisers to audiences across all addressable channels.

Xaxis' new generation audience activation platform Turbine has processed and saved over 250 trillion pieces of data. At every second, Turbine collects and analyzes 200,000 consumer data points. With over 650 partners worldwide, the platform is matching 10 billion pieces of equipment to collect data; the accuracy of Xaxis' prediction is 20 percent higher than other third-party platforms according to comScore.

Traditionally, advertisers tend to look at different media channels such as computers, television and mobile separately. However, Xaxis evaluates user activity through a cross-view of multiple media channels and provides in-depth analysis of consumer behaviors.

Gleason used one of their recent marketing campaigns as an example. The campaign spent 50 percent of its budget on personal computers; the order conversion rate was 84 percent. However, the same budget spent on mobile phones had a much lower order conversion rate, at 16 percent. Looking at the two channels separately, advertisers would arrive at the conclusion that ads on personal computers are much more effective than on mobile phones.

However, this may not be the case. Xaxis' analysis found that half of the consumers who saw the ads on mobile phones actually placed their orders on their PCs. That is to say, mobile phone ads were also effective.

"So, we need to understand how our consumers use different devices. If we look at the data through a cross-view of different media channels, we will understand our consumers better. Programmatic buying will help us interact with consumers, understand their consumption model and habits," said Gleason.

During the forum, GroupM launched "GruopM Trusted Marketplace," which deployed together with the most trusted partners to ensure tailor-made premium inventories and higher rate of viewability for GroupM's clients, as well as increased transparency of transactions, which in turn will improve the integrity of the whole digital supply chain.

"Advertisers are spending more on programmatic buying. Of course, efficiency and performance are key, but advertisers today are just as concerned about the quality of inventories and whether the environment has standardized procedures and is well-regulated and safe," said Patrick Xu, CEO of GroupM China. "Brand owners, agencies, media owners, tech companies and all other players should join hands to ensure the safety of brands and against fraud, as well as the sound development of digital ecosystem. GroupM looks forward to welcoming with open arms more outstanding partners to the GroupM TMP."

Newspaper headline: Forging a competitive edge

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