Jonathan Beeston (@searchbeest) is European Client Services Director at Efficient Frontier (@efrontier)
There has been some really interesting debate of late about the convergence of display and search. So much so, in fact, that next week’s London SES is devoting a panel session addressing this very development. There is a consensus among search marketing execs that massive opportunity exists in display. One of the big European search firms looking to leverage its expertise in biddable platfroms is Efficient Frontier. It has recently rolled out its own proprietary DSP, and is now starting to run – wait for it – display campaigns across European exchanges and other inventory sources. Are search firms about to blind-side the big holding agencies again?
Jonathan Beeston, European Client Services Director at Efficient Frontier, took time this week to speak to ExchangeWire about the company’s new display-buying strategy, its in-house DSP technology, and why search firms can deliver better campaign performance in display:
Can you provide an overview of the Efficient Frontier DSP?
JB: Efficient Frontier's platform expanded into Display advertising in order to meet the ever increasing needs of our clients to optimise their performance media channels. We were able to utilise our core predictive modelling capabilities in the emerging ad exchange market that had facilitated our success in search engine marketing. We worked hard to integrate with the leading display ad exchanges and we have built out the infrastructure to buy, deliver, track, and optimise display campaigns on behalf of our advertiser clients. In most cases, the initial campaigns exceeded our incremental reach and performance expectations.
What differentiates your DSP from other similar platforms in the European market?
JB: Efficient Frontier offers a cross channel marketing optimisation platform rather than simply being a DSP. While Efficient Frontier is certainly buying, aggregating, and valuing display impressions on ad exchanges, we think we are in a unique position by leveraging predictive modelling and algorithmic optimisation. We are able to utilise client specific Search performance and conversion data to inform their display buys which will allow for increased audience definition, bidding, optimisation and budget distribution within and across media channels.
Our recent platform release provides not only access to display campaign performance data in the same dashboard as SEM, but it also provides cross channel conversion attribution insights that can be used to influence optimisation of both Search and Display. In subsequent releases, we will be integrating with additional inventory sources and third party data providers. Additionally, we will continue to enhance our reports and analytics to provide clients with the cross channel view that we all strive to achieve. Our core optimisation algorithms will continue to be tuned as we learn more about audience behaviour across Search and Display.
How will this new platform benefit advertisers?
JB: Advertisers are crying out for the same kind of insight and execution for their display campaigns that they enjoy in search. Our platform brings that strategic control to both channels so that advertisers can dynamically optimise their media investments.
Can search performance and conversion data help to improve display campaign performance?
JB: True cross-channel optimisation has long been the mission of digital marketers. We know that search and display advertising complemented each other, but advertisers did not have the tools to track, report and optimise across channels. Cross-channel optimisation is coming to fruition now that platforms like Efficient Frontier's are available. All of these changes in the industry have put more focus on performance based display advertising.
Can search firms really be successful in the display space?
JB: Search Engine Marketing firms such as Efficient Frontier, helps those advertisers evaluate market data to determine when and where to show their ads, and at what price. This new world sits perfectly within our sweet spot. It is important to add here that only those search agencies with proven technology, that specialise in operating with an algorithmic approach to bidding will find real advantage in this market. Search agencies that run search engine marketing campaigns manually on behalf of their clients, will find it just as hard as those moving from the traditional display world. The key to success will be the right technology platform that can handle the enormous amount of data available and use it to deliver higher returns through automated execution.
Do you see a convergence now happening between search and display?
JB: There’s definitely a convergence in the buying models. Search has been the definitive test case that shows how well automated auction models can work for online media trading. It would be unimaginable without this approach. The inefficient buying model of traditional online display trading where there are no APIs, no automation , and not even an interface to set prices by hand will learn from the efficient auction marketplaces of search. No longer will every buy need to be negotiated one-by-one, over the phone or in person. Display and search will be optimised together and convergence and tradeoffs between each other will be a huge benefit to advertisers.
What, in your view, are the key drivers of this convergence?
JB: Quite simply, advertisers will want the option that gives them the best ROI across channels. Advertisers will demand more transparency in display advertising and will work with platforms that can optimise across both search and display. There will be more focus on performance based display advertising and an emphasis on mobile advertising.
Will this ultimately help search firms, like Efficient Frontier, win more display budget?
JB: Absolutely. Clients want companies and technologies that provide maximum return across multiple channels to maximise profits. However, there will still be market for premium display which will not be sold via exchanges. Display is getting closer to the measurable effectiveness of search marketing. But some in the industry would argue that it remains a unique marketing channel, requiring a different skills and experience. How would you counter such an argument?
Clearly, display is not the same as Search Engine Marketing and there are practices that need to be adopted but it is the core trading element that will be the key to success on the exchanges.
SEM has a dynamic ecosystem of biddable marketplaces that advertisers can value and buy media. Technology capabilities such as Efficient Frontier’s platform helps advertisers evaluate market data to determine when and where to show their ads, and at what price. The time has come for this remarkable system of decision-making and trading to come to the biddable display market.
Do you think there is an opportunity for search firms to help clients improve display campaign performance?
JB: Search Engine Marketing brings a rigour and process to campaign management that is just as significant to display advertising. It will be the combination of technology and data analysis that search firms bring to the table that will be vital to display campaign improvement. The real value will be the cross optimisation between search and display.
Will the integration of Teracent’s technology into the DoubleClick Exchange effectively level the playing field
for search marketers, and make it easier for them to run more successful display campaigns?
JB: Any technology that decreases the cost of creative production is more than welcome in the space.
Are there any examples of successful ad exchange display buys here in Europe?
JB: To date, the market is still very new. However, we hope to have many great client examples to share in the future.
How do you see the exchange space developing in Europe over the coming year? Will more search firms look to trade on the exchanges over the coming months?
JB: The nascent ad exchange landscape feels much like search did back in the early days. Now is the time for marketers to get ahead of their competitors by testing the new biddable way to buy display. Currently, most of the innovation seems to be coming from U.S. and only time will tell if there are any home grown gems that prosper in the space.
Those that follow innovation quickly will be sure to have a head start but it is only those search firms grounded in proven technology that will stand a chance. It is the algorithmic bidding and predictive modelling that is key to the new auction based display market and traditional search consultancies that rely on manual processes will not have the right arsenal for the job.