At Xaxis we harness technology, data, and bundle products and services together to offer outcome-driven products. We’re also becoming experts at educating our clients in some of the dynamics involved in achieving sustainable, scalable and successful long-term outcome-driven partnerships.
Some key tenets have created these products:
1. Don't just offer outcome guarantees, offer new trading currencies
It is obvious to continue to trade on CPM, offering a guaranteed number of views, video completions, clicks or lands. However, for anyone in digital media, we know that ultimately equates to a cost per view (CPV), cost per completed view (CPCV), cost per click (CPC), or cost per land (CPL). So why not change the trading currency, lead the market and actually sell on these new currencies?
2. Focusing on things we can control
I have previously mentioned the difficulties in committing to outcomes where many variables out of our control could limit success. As you move towards the performance end of the purchase funnel, CPA or performance outcomes that lie offline—such as footfall—become increasingly difficult to predict.
Our intention is to offer media outcomes right across the purchase funnel, from awareness to performance, but we will focus on media exposure outcomes first. These operate at the top end of the purchase funnel with metrics like viewability, video completions, or target audience reach.
3. Put the buyer in control of optimization
Many larger clients are moving towards managing their own programmatic execution through teams of in-house traders. They wish to maintain tight control of the media selection, data utilisation and campaign optimisation. To ensure they have the ability to buy guaranteed outcome products from Xaxis, we offer our outcome products as inventory packages within the DSP’s of their choice.
Traders simply select that they wish to buy from Xaxis Marketplace, then select the trading currency (the outcome), like CPV or CPCV, that they wish to buy. They can then optimise to additional metrics.
4. Allow the buyer to set pricing
Setting fixed prices or even stating bid ranges leads to comparison or protracted negotiations no matter what the trading currency is. So we put the buyer in control of setting pricing across the buying currency of choice. As with all biddable media, this pricing will determine auctions won and the scale of media delivered. Traders can then alter bids accordingly.
5. Always offer third-party measurement
If outcomes are being offered you cannot mark your own results. Expect accusations that your measurement methodology favours your own profits. We have seen how Facebook has had to answer this issue, although their measurement blunders were not around the currency actually traded upon. When a buyer selects a Xaxis outcome product and a currency, they will also be able to select the measurement source like MOAT, IAS, DV, Nielsen, or Comscore, to name a few.
6. Add new outcomes for more complex objectives
Once we have begun to achieve success in basic outcomes like viewable ads, completed video views, clicks, lands or even leads we begin to layer on additional outcome metrics to move closer to the point of real client desire. For example, we offer clients viewable, completed, in-target video views. We call these ‘multidimensional media outcomes’ and they allow clients to reduce risk while achieving media goals.
There is no doubt that moving towards an outcome-based model is one of the most strategic shifts a company can make. It requires a fresh mindset and operational changes. But to be the first, to alter business orientation by offering new market-leading, multi-outcome currencies, will set you apart from the competition.
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|Richard Pollin is vice-president of client development, APAC at Xaxis|