Expedia Group's Vision: The evolution of programmatic display advertising with Gianluca Armando & Riccardo Morabito

[00:00:00] Riccardo Morabito: Welcome, everybody. Are you ready to shape the future of programmatic display advertising together? The online event where we'll explore the evolution of programmatic display advertising. The future of the industry, how artificial intelligence and technology are reshaping it. I'm Riccardo Morabito, customer success lead at Tangoo, a programmatic specialist company with active campaigns in more than 50 countries in the world.

And today we are not alone. I share this special space with Gianluca Armando, director of brand and creative partnership at Expedia hi Gianluca

[00:00:47] Gianluca Armando: Hi everyone, and thanks a lot for having me with all of you today.

[00:00:52] Riccardo Morabito: Thank you for your time. Thank you so much. Could you please tell us which kind of responsibility do you have in the company?

[00:01:00] Gianluca Armando: Absolutely. And, as you may already have understood from my name, I am Italian and, I have been, now with Expedia for, almost the 17 years. And so far, it's been an amazing journey. I had the opportunity to work in different departments within Expedia. but mainly I had the opportunity to work in different countries, including Italy, Spain, Australia, Singapore.

And, I am now based in the UK in the London office, and you may be familiar with Expedia, but let me tell you a little bit more about my departments, Expedia media solutions, we are. The digital advertising arm of the group Expedia and, more into the details, I lead the commercial, creative partnerships, and brand integrations team.

So what we do, imagine. Of us as, an in house creative agency for the sales organisation. So we are in charge of really to create more sophisticated campaigns for our partners, starting from, The concept, the ideation of the campaign till the execution and the production of, videos, for example, if, that is the case, you know, like in the brief that we receive, from, the partner.

So, I hope that that explains what's my role within, media Studio within, you know, like the media solutions, team in Expedia.

[00:02:50] Riccardo Morabito: Super. That's cool. I think that's your vision today will be a special gift for our event and for the people that will see this interview. So, thank you so much again for your time.

But, tell us more about Expedia Group's vision in the evolution of programmatic display advertising. You mentioned before that the creative studios are innovating, but Just explain more, please, about this kind of impact in programmatic display at campaigns.

[00:03:22] Gianluca Armando: I, I, I start to say that, I think, you know, like it's an extremely positive moment for, programmatic display advertising.

If, we look a little bit back for, too long, programmatic, advertising has suffered from, A bad reputation often has been seen as a intrusive, low quality or even damaging the user experience in the early days. I think that there were as well, lots of. Publishers that they were too much focused on a short term, revenue strategy.

They didn't consider, really the long term benefits and effects of these, extraordinary, channel, which, ended up unfortunately really to driving actually. Users, a way, I think, you know, like some publishers, they are still doing these today, but I think, you know, like that the industry has changed, dramatically in a, in a, in a positive way.

At the Expedia Group Media Studio, we have always taken a kind of different, different path. Our priority is to deliver messages to travelers in a very engaging way. So we understand who Who is our audience, who is, you know, like, what are the behavior they behaves, you know, like of our audience and mainly what they like.

So as expert in travel, we know what works the best for our partners. So creativity is really our key tool. which help us to bring all the elements together in a very effective way. So when it comes to innovation, we always remain committed to the power of creative ideas. We are always looking for a new way to engage with travelers.

And while the programmatic technology is absolutely crucial for us, It doesn't always lead the way. Instead, it helps us reaching the travelers and deliver the great results for our partner.

[00:05:58] Riccardo Morabito: That's cool. Because thanks to the creativity and technology, you are innovating the market. I mean, like it's incredible because, you have a such a great.

History, but also you always change and you're ready to see new opportunities in the market thanks to technology and creativity I mean that we have something in common, you know Tangoo and it's and we have also this kind of approach This is very cool because we believe in this kind of a path for the future of a programmatic advertising.

but tell us more, how does Expedia approach programmatic display advertising and how does it fit into your overall marketing strategy?

[00:06:40] Gianluca Armando: And, and you're right. I think, you know, like we have a lot of similarities, you know, like in synergies. So I think, you know, like you are really spot on with, with what you say.

And, if we look at our side, I think, you know, like our mission is simple, is very, straightforward if you want, is really. To create and share stories that inspire people, to travel and, by connecting our partners to our brands. So really mainly with Expedia, Berbo and hotels. com, we deliver mutual value and we help audiences to make a meaningful trip.

Travel, decisions and, the path of the purchase is becoming, it's not longer linear, maybe, you know, like as it used to be in, in, in the past is getting, longer and, more and more complex. If you look, for example, at, our path to purchase research that we released in late 20, 23. Yeah.

You can see that actually 40 days before a booking, our, travelers, they have, you know, like more than 141 different touch points where they are looking, you know, like, inspiration for inspiration, really, you know, like they needed those information in order to take a decision and, really to book their, trip.

So our partners, they need. To reach now in market travelers earlier in their decision making process, when they are really looking for that information, where they need that information that will inspire them really to make that booking. And that's why we have shifted a little bit our strategy from just delivering on site placements.

So really focused on. Conversion focused ads to offering a full funnel solution suite, you know, like of products for our partners. And these combines, of course, you know, like on site placements and offsite media with, the creative content designed really, you know, like, Thinking about travelers, thinking about, the users on, our sites.

So we provide what we defined like a connected journey, guiding travelers from the point of inspiration through the consideration, really down to the conversion moment. And, what we define our travel media network is really built on the model that leverages Our media pass through rights. So we use our first party data to offer, to offer partner access to our in market travelers.

So this model relies on co branded creatives that will benefit, of course, both our partners and also EG Media Studio.

[00:10:01] Riccardo Morabito: That's cool also, because I am thinking that all these model Has a key the people I mean, like the team, the roles of the people inside of this process, this path in your opinion, what roles are essential for successful programmatic display campaigns at Expedia and what skills are important.

[00:10:23] Gianluca Armando: You, you, you are absolutely right. You know, like about, we, we always put travelers, you know, like, travelers that they are top of mind for us also, because, as I was saying, you know, like the funnel is not linear anymore, but it is really before we used to describe it like a funnel, but now for me, you know, like I really, we need to rethink about the shape because it is extremely complex and, for us, it's Critical to have a team that really combines from one side, best in class creativity and from the other really top-notch media and, technology.

I think that for too long, you know, like these two areas they have been. Disconnected speaking different languages and really not considering, you know, like not considering, to each other, you know, like in, in a, in a comprehensive way. So our focus is now on, bridging, bridging these gap, you know, like that has been created and really.

Upscaling each group in the other's domain. So we really want the media and tech team to, spot creativity, creativity, opportunities. And from the other side, we want the creative team to understand that really the media and the tech world in order to. Fully understand, you know, like what's possible as I mentioned before, I think, you know, like, the creative team as well.

It needs to be able to have, you know, like that creative idea, but immediately think about, you know, like how that. Can translate, you know, like in all the media opportunities that exist today. So to achieve these actually, you know, like we have, reorganised our team to encourage that, connection, that collaboration, that cross pollination, if you want, you know, like between, the two, the two teams.

And, we, we really want to create an environment of, full collaboration. We need people who can see the big picture and get excited about, new possibilities. Nowadays, there's no room anymore to work in silos. And that's why for us, collaboration is, is, is key in, in our business today. that said, I think.

I think, you know, like we on the media and tech sides that side, I think, you know, like we really need those, experts that are going to be able to demystify and also to simplify complex, complex things, you know, like, in order to really, you know, like to, for them to simplify really, you know, like all the solutions.

It's a short. We can use them in a very creative way.

[00:13:31] Riccardo Morabito: Yeah. Also because it's the best way to change, to change the shape, and to follow the market, to understand the, travelers and to understand the, the changes of, you know, the, of the funnels you said before, and that's super cool because we are doing the same in Tangoo.

So it's like, I'm very excited to hear from you this kind of story, talking about people, you know, we are in a, in a super revolution moment because the big elephant in the room is the artificial intelligence. let me ask you what Is Expedia doing with artificial intelligence to optimise the content, to redefine roles also, and to improve channel performance?

[00:14:20] Gianluca Armando: And you're right. I think, you know, like every five words, you know, like there is always AI included, you know, like, you know, our conversations, you know, like whether we are at work or we are really, you know, like with friends. AI is, is a, is a, is a, not a big elephant in the room, I would say, but really, you know, like that topic that at the moment we are still looking, you know, like we, from one side, eager to learn more, but also curiosity and see, you know, like, what, how we can implement AI.

into our daily life, as you would expect Expedia, has a comprehensive, AI roadmap across the group of focusing, to improve the user experience of our products and delivering, The best result for our media partners. So, many details, of course, you know, like being a big organisation harder confidential, but let me provide you a couple of examples that we haven't released the, already, if you think about in 2023, actually, Expedia was one of the first organisations in order to, you know, Partner with open AI, and we developed a simple chat bot in our app, allowing the Expedia members to have an open ended conversation and get personalised recommendations on places to go, where to stay, how to get around and, what to see and what to do.

So really, you know, like we had, they had, you know, like this kind of, concierge, you know, like it, it would help them to resolve really any problem or challenge that they will have, you know, like, Within, our, environment and, this year at Explore in Vegas, where we have our partner, annual, event, we announced actually big plans, to build on even farther, you know, like with the launch of, which takes ai as I said, you know, like farther to reimagine, the, the traveler experience using, The latest AI advancements are really, you know, like to think about Romie as a concierge or someone that is really helping organising, the conversation that you have had with, with the family and, Really like a Romie is going to be incredible and very complex from, from our perspective.

So media studio, our team, we see AI as a fantastic support to that creativity that we discussed. So, so far, not, not a replacement, but really, you know, like a supporting our day to day. work, at the strategy stage, you know, like when we, we talk with partners, that brief moment is extremely, complex and challenging.

At the same time, you need to be sure that you have the right information in order to execute something, you know, like with the high standards, high quality. So when we are at that strategy stage, we use AI to enhance, you know, like, can speed up the process or the. Gathering, really, you know, like gathering audience and brand insights.

So, by building custom GPT models and using, bespoke AI platforms, really designed for strategists and researchers, we have cut actually, you know, like at the time to get that, ideal brief, you know, like, to our, for our creatives, you know, like I think by us really. And, on the production side as well, it's very similar.

So we use tools from Adobe to assist with the post production and design and build the partnerships to help partners to maximise the content that they have already, produced. We are also experimenting with a dynamic creative optimisation in, in, in programmatic advertising. And while there are bigger opportunities, especially at the bottom of the funnel, we always remain very.

Cautious to ensure, you know, like that our ads feel relevant rather than, I was saying it at the beginning to be intrusive, you know, like for the user. So we really want them to have, you know, like the best possible experience whenever they land, you know, like in, in our sites.

[00:19:14] Riccardo Morabito: Let me say that dynamic creative optimisation is becoming more and more important also for us because, you know, it's something that also is helping us to become a big reality in the, in the programmatic world as Tango.

So, we agree with that, with that, with this position. yeah. So now we are talking about the present of programmatical. So we are start to see the future. What is your opinion about the future of display advertising and programmatic display advertising? And what's innovative strategies are you most excited about for the future?

[00:19:52] Gianluca Armando: I think, you know, like that, I mentioned it at the very beginning about the bad reputation of, programmatic display advertising. And so what really excites me and, and, and my team, and, I think, you know, like, Excites most of these opportunities, you know, like where, the opportunity stands really is, to transform advertising into something that's, really is going to add value for, the audience.

So in our case for, our travelers, so really, you know, like to have a. That added value almost, you know, like that can be delivered to, to travelers, to, to, to consumers, if you want. I think that this can be achieved in a different way. I, and, I touched a little bit, earlier, you know, like, targeting is going to, to be very important.

We need to ensure, you know, like a greater accuracy about it. Optimising the placements is another big one. Like, you were mentioning before, but also how we are going to predict consumer behavior because we want to be relevant in the information that we are delivering to them. And we really want to go there with the.

The right message at the right time into the right channel. So, advanced dynamic, creative optimisation, really is, is allowing us and will allow us, you know, like more and more to go beyond that simple messaging or, creative adaptations and, will help us. Hopefully, you know, like, in a, in a, in a better and better way, to delivering, you know, like, bespoke experiences.

So, then, we, we were discussing, as well, you know, like, how important is going to be, creative, you know, like with media and tech. So that is another thing that really. Makes me, very excited. I think, you know, like that, if we are going to develop that into the right way, that is really where we can have, the biggest opportunity and, yeah, great creatives ideas, you know, like will allow us really to take the lead and, and always make, you know, like the, the biggest, and, most positive impact.

[00:22:29] Riccardo Morabito: Gianluca, what you're doing is fantastic. I mean, like, you know that we are part of the same world or the same field, and, you know that we are the same challenge for the future. so I think that, the future of programmatic will be exciting for all the players that can use technology and creativity, also transparency.

so it will be become more and more full of, big opportunities. Thank you for your time. We are at the end of this conversation. I think that we can talk more and more and more of the future of programmatic, but thank you so much for your time. And thank you so much for the things that you are sharing with us.

Please follow TangooLinkedIn page to stay updated with the next steps of programmatic. And if you want to say something to our people, Over there, Gianluca,

[00:23:26] Gianluca Armando: it's

[00:23:27] Riccardo Morabito: your turn.

[00:23:28] Gianluca Armando: Just maybe, you know, like the last information, if you want to learn more about as well, you know, like, Expedia Advertising, you can find our website at ww.advertising.expedia.Com, and, and nothing is, we, we know each other and, congratulations for, what Tangoo is doing and, and achieving, good luck for everything. And, it has been, Extreme pleasure, really, and I get to be with all of you, today, so have a great summer.

[00:24:02] Riccardo Morabito: Thank you Gianluca.

It will be a fantastic journey together for the future of Programmatic. Thank you so much.

[00:24:08] Gianluca Armando: Thank you.