Correlating quality and cost
to drive efficiencies
The TrueKPI Framework allows marketers to optimize working media and overall ad spend productivity by +20%, by better pricing impressions based on quality and comparing CPM with TrueCPM. This was validated by TAG TrustNet in the context of the ANA Programmatic Transparency Study and is confirmed by this case study.
What is the the True KPI Framework?
The TrueKPI Framework builds on the matching of impression log-level data to inform bidding decisions for ad impressions matching a range of pre-defined quality requirements. The creation of value is measured by comparing CPM to TrueCPM.
TrueImpressions are Impressions that meet the set of quality requirements. The default values for a TrueImpression is that it must have matched data from the DSP and ad verification provider; and be non-IVT, measurable, and viewable according to MRC standards.
TrueAdSpend is ad spend that is spent on impressions that meet the criteria for being TrueImpressions.
TrueCPM is the cost paid per a thousand impressions for total ad spend (total ad spend divided by TrueImpressions x 1000).
How to calculate TrueCPM?
Marketers can define their own custom metric, myTrueImpressions, which can include a range of quality requirements. They may choose to exclude non-brand-suitable impressions, impressions served on MFA websites, and impressions with unnecessary intermediary hops in the supply path (multi-hop reselling). This enables marketers to measure and optimize their ad spend success in a way that aligns with their specific objectives.
The TrueCPM is calculated by dividing the total ad spend ($50,000 in the example) by the TrueImpressions (7M), matching the quality requirements of myTrueImpressions, multiplied by 1000. The difference between the Total CPM ($5.0) and the TrueCPM ($7.14) provides the total optimization opportunity ($2.14 or a 30% decrease in TrueCPM).
Defining an optimization strategy using the True KPI Framework
In the scenario above the goal of the optimization strategy could be to bring the $7.14 TrueCPM closer to the $5.00 CPM, with 90% of impressions matching the myTrueImpression quality requirements at a $5.00 CPM. Achieving this goal would increase TrueImpressions from 7 to 9M and TrueAdSpend from $30,000 to $45,000, representing a 29% media productivity gain.
Increasing TrueImpressions by 38.72% within 5 months
The TrueKPI framework was successfully implemented by a major CPG company together with IPG, its programmatic agency. Within 5 months the company achieved a 38.72% increase in TrueImpressions, bringing the TrueCPM down by 27.91% with a minimal increase in CPMs. More information on the Case Study.
Benefits for marketers and for quality publishers
Beyond the direct benefits to marketers, the TrueKPI Framework also has longer-term industry benefits. By making informed decisions on quality and price advertisers favour higher quality publishers, creating the right incentives for publishers to provide more quality inventory. This is both a win for the ecosystem and a better consumer experience.
The TrueKPI Framework allows to define, implement and measure optimization strategies delivering optimal value at all times
Playbook to Implement the TrueKPI Framework
1. Get LLD Access Rights
Get legal access rights to log-level data from DSPs, ad verification
providers, and SSPs.
2. Match LLD Data
Connect, harmonise and automate the matching of log-level data feeds over the TAG TrustNet platform.
3. Define myTrueImpressions
Set a definition for myTrueImpression. Look at the different inventory types you buy (display, video, CTV, audio, etc.) and define what ad quality is for each using the TAG TrustNet decision tree. The decision tree allows to define a value for each quality metric and the sequence in which they get applied to filter impressions.
4. Optimize TrueCPM
Define goals and implement optimization strategies using TrueCPM as the main KPI to align quality and price. This can be automated by making the data actionnable over the TAG TrustNet Platform (requires an enterprise license), or can be achieved manually by evaluating opportunities and measuring progress using the insights of the Transparency Benchmark reports.
myTrueImpressions decision tree
defining a value for a range of quality metric and the sequence in which they get applied to filter TrueImpressions
optimize your programmatic investments
by implementing the TrueKPI Framework
Find out more about how impression log-level data, connected through TAG TrustNet can help you implement the TrueKPI Framework and optimize your programmatic supply chain productivity by using TrueCPM as a single performance metric combining quality and price, or get in touch using the form at the bottom of the page.