SAP SE (NYSE: SAP) is entering the digital advertising market with the SAP Exchange Media (SAP XM) platform, an integrated online media network that directly connects advertisers and publishers in the cloud, based on the SAP HANA platform.
SAP XM is designed to maximize an advertiser’s return on media investment through an online media network that relies upon real-time technology. Advertisers will be able to gain:
- Full transparency and control with end-to-end advertising ROI analytics and campaign management capabilities in real time throughout the consumer journey
- Increased conversion rates through hyper-targeted advertising along the consumer journey by getting the right message to the right audience and on the right channel through superior targeting and profile-matching capabilities optimized through real-time leveraging of first-, second-,and third-party data
- Increases in overall efficiency by facilitating a unique direct real-time interoperation between advertiser and publisher, while eliminating fraud through direct connection to publisher inventory
- Simplified processes through a best-in-class user experience that is highly intuitive and easy to use
“With SAP XM, SAP will alter the way businesses run marketing in the digital era,” said Dr. Wolfgang Faisst, cofounder and head of SAP XM. “SAP XM creates greater efficiency, transparency and control by connecting buyers (advertisers) and sellers (publishers) directly through an integrated suite of products.”
SAP XM has been designed to simplify today’s complex digital ad-buying process by ensuring that connectivity becomes a key part of the media business — whether it’s linking brands and retail, ad budgets and inventory, or billing and collection. In addition, advertising technology combined with marketing technology can work together to achieve business goals. SAP XM will unlock the full potential of an advertiser’s media buy across the digital advertising ecosystem through disruptive, end-to-end technology in real time. This will shorten the traditional media buying process by bridging direct relationships between advertisers and publishers.
“Disruptive technology is a buzz word today, but many technologies that we see are either too niche or do not have the fiscal and technical support to make a truly large-scale impact,” said Johann C. Freilinger, cofounder and head of Marketing at SAP XM. “With a current client base among leading Fortune 500 companies and the power of our very own SAP HANA platform, SAP XM has the potential to be significantly transformative.”
According to a study by Forrester Consulting on behalf of SAP XM, 90 percent of advertisers and media companies surveyed saw value in a new digital ad buying model that connects buyers and sellers directly, while reducing the role of intermediaries by utilizing an integrated software solution. Not only does this increase transparency, but it also drives efficiency, according to the study.*
SAP has recognized the need to integrate programmatic ad buying into all aspects of business to increase brand value and achieve better overall results. With the belief that it could solve problems identified by their clients, SAP XM entered into “co-innovation partnerships” with selected customers and partners to gain insights from existing obstacles and work together to make this new system of buying more effective.
Pilot campaigns and tests are already in place with some of the world’s largest companies including Beiersdorf (NIVEA), Deutsche Post DHL Group (SIMSme) and the EY organization. Media and technology companies and publishers joining the “co-innovation partnership” include PubMatic, FLIO — the global airport app — and Tank & Rast. Leading digital and creative agency partners include vertic, Jung von Matt and SinnerSchrader.
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable approximately 310,000 business and public sector customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.