Internet Retailer: Get with the program

| 05 Jun, 2015

James Bourner, Head of Display at Jellyfish, has contributed this week to an interesting article on Internet Retailer about the shift towards programmatic display.

The article, written by Autumn Cafiero Giusti, uses a number of case studies including the recent activity Jellyfish have managed for Nestl’e's Nescaf’e Dolce Gusto.

The article opens with a look at the current state of play with programmatic display in the e-retailer market as well as some distinction on what it actually means for computers to be placing media, rather than humans.

Some highlights from the article are below:

"E-retailers are buying targeted, data-drivenŠ—”and often cheapŠ—”ad placements using programmatic platforms.

E-retailers increasingly are choosing computers over humans to place their online ads, trusting that softwareŠ—”which can access thousands of data points to target ads to shoppers in real timeŠ—”can do a better job placing digital ads where and when they will be most effective.

The automated, or programmatic, advertising revolution is under way, and retailers are partially responsible for the shift, given that they accounted for 21% of total U.S. online ad spending, as measured in the first half of 2014 by the Interactive Advertising Bureau trade group. And retailers are devoting a sizeable chunk of their ad spending to programmatic ad buys. 85% advertisers in a 2013 survey said they deploy automated real-time bidding practices and 64% said they "aggressively" do so, according to research by the consultancy Winterberry Group, LLC.

James Bourner references the recent programmatic display campaign Jellyfish has run for Nestl’e.

"With a lot of data analysis, you can get this Holy Grail where you have different targeted messaging for very granular pockets of your user base," says James Bourner, head of display for digital agency Jellyfish Online Marketing, which handles some of Nestl’e S.A.'s programmatic buys.

Jellyfish's pricing structure is based on a percentage of the client's media spend, as opposed to a fixed cost per impression.

Nestl’e employs a programmatic strategy to serve highly targeted ads within various shopping apps for mobile devices, says Gawain Owen, digital lead for Nestl’e U.K. and Ireland. The food company recently ran a campaign in the United Kingdom targeting consumers in northern England, an area where Nescaf’e coffee, a Nestl’e brand, is popular. One of the grocery stores there met the demographics of a typical Nescaf’e drinker. By splicing mobile phone location data with consumer and grocery store data, Nestl’e was able to deliver targeted Nescaf’e mobile ads to certain shoppers who frequented that particular grocery store. "If someone is on his cell phone, I can buy inventory against that person," Owen says.

A value of programmatically bought advertising is that a retailer can hone in on an audience segment based on users' website behaviors, Bourner says. For example, if analytics reveal that consumers who buy Brand X deodorant typically go on to buy six or seven more products than those who buy Brand Y, the retailer would want to target Brand X users with more ads."

To read the full article click here.


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