online marketing summit 061810 monica seebohm

Online Marketing SummitLong Beach, CA | June 21, 2010

Behavioral Targeting Across

Online Advertising Channels Monica Seebohm

Director Audience Targeting, West

AudienceScience

WHAT IS AUDIENCE TARGETING

3

Audience targeting can identify the best consumers for a specific ador campaign and can be used to

effectively reach sales, acquisition, and branding goals

4

“Old” Media: Demographics

5

The Target Market: Men Age 25-55

6

T.V. Show for this Demographic

7

Show’s Actual Audience

8

Digital Audience Targeting

WHY AUDIENCE TARGETING

• Advertisers efficiently reach the right audience with the right message at the right time

• Publishers monetize the value of their audience and make more money from undersold ad inventory

• Consumers get a more relevant experience

Everybody Wins

10

04/10/2023 11

Simple Behavioral

Based on simple observations of an audience behavior

• Creative retargeting• Site retargeting• Click retargeting• Search retargeting

Traditional Targeting

Based on overall nature of a media property or facts about its audience

• Contextual• Demographic• Geographic• Day-part

Audience Targeting

Based on complex models of audience behavior

• Boolean logic• Contextual

Extension• Dynamic Targeting

Targeting EvolutionTargeting Evolution

What Makes up Targeting?

12

Audience data comes from many places…

Online behavior

Workplaceattributes

Ad views

Transactions

Registration

Searches

Geo/DMA

3rd party partners

Offline data No personally identifiable information is used

Where Are Consumers SpendingTheir Time Online?

13

Researched and purchased

Online Shoppers – Large Percentage of the Online Population

14

Researched not purchased

Purchased not researched

Neither researched nor purchased

Q: Which statement best describes your experience shopping online in the past 12 months?

Source: Jupiter Research/AudienceScience Consumer Survey 2009

0% 20% 40% 60% 80% 100%Percentage of Online Users

You Have 3 Opportunities to Connect With Online Users

15

Percentage of Online Researchers

0% 20% 40% 60% 80% 100%

Q: How many separate times would you say you connected to the Internet in order to find information related to your most recent purchase decision?

Source: Jupiter Research/AudienceScience Consumer Survey 2009

Three times

5 times

5+ times

Twice

Four times

Once

Shoppers More Receptive to AT Ads

16

Q: Please Indicate to what extent each statement describes your attitudes: I pay more attention to online ads directly related to my online activity (Contextual); I pay more attention to online ads that fit my specific interests (Behavioral)

Source: Jupiter Research/AudienceScience Consumer Survey 2009

Percentage of Online Shoppers

0% 20% 40% 60% 80% 100%

Contextually targeted ads

Behaviorally targeted ads

An online user sees more than 1,800 online ads per day, which

is an increase of more than 250% since 2004

Forrester Research 2009

It’s a Cluttered World

17

CREATING AN AUDIENCE-BASED MEDIA STRATEGY BY LEVERAGING YOUR DATA ASSETS

Buying Process Used to Be SimpleCrowded and Complicated Landscape

19

Advertisers

AgenciesData Providers

Ad Exchanges

Ad Networks

DSPs

Data ExchangesAd Servers

Media Buying Platforms

Publishers

Understanding Consumers Drives the Funnel

20

Commoditized and conversion data is simple and easy

to access

Brand awareness, recognition, and recall are driven by sophisticated consumer insight

Brands mustdrive consumers

through the funnel, from

awareness to action

Collect Data from Multiple Sources

3rd-Party Data Sources

AudienceScienceSegments

3rd-PartyPartners’ Sites

AdvertiserData

• Web site traffic

• Registration• Commerce• Offline Data• E-mails

• Website partners

• Affiliated sites• Offline

database• Social media

fan pages

• Datalogix• Targus• Nielsen• Others

• Pre-existing or customized audience segments

Connecting the Data Dots

22

In one unified system

AdInteraction

Searches & 3rd-Party Partners

Registrations & Transactions

Offline Data

Geo/DMA

WorkplaceAttribute

Online Behavior &

IP AttributesAdInteraction

Searches & 3rd-Party Partners

Registrations & Transactions

Offline Data

Geo/DMA

WorkplaceAttribute

Online Behavior &

IP Attributes

In data silos

Impossible to build advanced audiences

AdInteraction

Online Behavior &

IP Attributes

Geo/DMA

WorkplaceAttribute Offline

Data

Registrations & Transactions

Searches & 3rd-Party Partners

AdInteraction

Online Behavior &

IP Attributes

Geo/DMA

WorkplaceAttribute Offline

Data

Registrations & Transactions

Searches & 3rd-Party Partners

Single View of the Consumer

An Integrated Audience Platform

23

HOW AUDIENCE TARGETING CAN WORK FOR YOU

Audience Data

What people are looking for Search

Interests Content of articles viewed

Where they go Pages, Sections, Sites

What they say about themselves

Non-PII: Income ranges, Gender, Zip

Tools they use Calculators, Configurations, Comparisons

Offline data Transactional, Affinity, Psychographics

The Ingredients

25

Advertisers can use simple data to produce

basic audience segments

With an integrated audience platform, a wider variety of data results in larger,

more targeted audiences

26

Identify Segments of Best Customers

27

Who Is a Stock Trader?

28

Audience Insight

29

Audience Example – Dog Lovers

Offline Registration Data – Dog OwnersOffline Registration Data – Dog Owners

Online Dog Shopping BehaviorOnline Dog Shopping Behavior

Dog EnthusiastsSample: People who read about dogs, searched for information on dog

health, used tools to find the best dog breeds

Dog EnthusiastsSample: People who read about dogs, searched for information on dog

health, used tools to find the best dog breeds

Verified by Third Party Research

Shopping Sites

Enthusiast Sites

Offline Purchase Propensity – Pet ProductsOffline Purchase Propensity – Pet Products

CataloguesNewsletters

Pet Retailers

Segmenting Capabilities

Dynamic Ads

31

• Personalized ads created “on the fly”

• Leverage multiple data sources

• Different elements of ads optimized based on data and performance

• More relevant, better performing advertising

Success Story – Retail

32

• Behavioral and demographic targeting from helped SKECHERS identify qualified prospects on their site, gauge their interest and intent, and then group these users into segments. Retargeted relevant skechers.com shoe ads were delivered to these consumers

Solution

• Return on ad spend was 827% over the course of the campaign Brand Metrics (Behavioral targeting over ROS)

• Analyzed impression volume vs. click-through rate to ensure qualified traffic through the Run of Network impressions, and conversion rate vs. eCPA for retargeted SKECHERS visitors (90% retargeting vs. 10% RON)

• SKECHERS was able to continually refine its creative for maximum results

Results

Goals• Maximize return on advertising spend for their retail website• Increase sales on skechers.com and return on ad spend

• Behavioral allows you get a larger reach into your target consumer than running on context alone

• If you choose a micro target it should be because you have a very specific creative message for them

• Targeting that costs more than your increased rate of results isn’t worth it

In Order to Move Share, You Need Scale

33

THE MEDIA LANDSCAPE

The Upside Is Way Up. . .

35

Media Consumption vs. Ad Spend, 2009

Note: As a percentage of ad spending on the media channels indicated above only: TV, Newspaper, Radio, Magazines and Online

Source: Wall Street research, 2010

. . .With Many Categories Poised to Transfer

36

Source: IAB Internet Advertising Revenue Report, 2009

Category Share of Total Internet Advertising Spending

21%

15%

13%12%

10%

7%6%

4% 4%3%

20%

16%

12%11%

10%

6% 6%

4% 4% 4%

0%

10%

20%

Retail Telecom(including ISPs)

FinancialServices

Automotive Computing ConsumerPackaged

Goods

Leisure Travel Entertainment Pharma &Healthcare

Media

2008 First Six-Months 2009 First Six-Months

Leveraging Targeting across All Marketing Channels

37

It is only the beginning…

PRIVACY AND THE NEXT GENERATION OF TARGETING

Navigating the Privacy Waters

39

The “Cookie” Monster

41

Cookies: small files placed by a website on your computer that serve as an identifier

Cookies simplify and improve the Internet experience

• Give the Internet “memory” • Enable shopping carts• Remembered login information

Cookies aren’t static – sites modify them all the time as you do different things within their domains

Allow frequency capping and other targeting, including behavioral

They are not scary• Easily removable• Managed by user

Cookies not bad,

Cookies GOOD

• Work with sites and networks that give consumers notice and let them opt out

• Be aware of restrictions (rules) around collection and use of:

– Personally Identifiable Information (PII)

– Sensitive Information – such as sensitive health and financial data

Respect Consumers’ Privacy

42

Industry Support for Privacy

43

• Provide consumers with Notice about collection and use of data for behavioral advertising• Privacy Policy• Notice near targeted ads (enhanced notice)

• Enable consumers to opt-out (opt-out page)• Use only non-personally identifiable information (non-PII)• Do not use “sensitive” information (health, financial, etc.)• Broad industry support for these initiatives

Enhanced Notice Example

44

• More prominent notice to consumers of online behavioral advertising

• Text/Icon displayed for all OBA ads

• Clicking on the notice provides consumers with more information about OBA and the ad itself

• Link to opt out

Audience Targeting- the Here and Now

45

Display Advertising Spend 77% of Marketers Currently Use or Plan to Use Audience Targeting for Online Advertising

Source: Forrester’s Online Advertising And Classifieds Model; “US Interactive Marketing Forecast, 2009 To 2014,” Forrester Research Inc., July 6, 2009

Total $7,829 $8,395 $9,846 $11,732 $14,339 $16,900

Contextual ads

Static image

Rich media (excluding video)

Online video

$0

$3,000

$6,000

$9,000

$12,000

$15,000

$18,000

2009 2010 2011 2012 2013 2014

Source: A commissioned study conducted by Forrester Consulting on behalf of AudienceScience, January 2010

Does your organization use Audience Targeting for your online media campaigns?

Base: 156 marketers

Currently using

Planningto use

Previously used, but stopped

Not interested

in using

Don’t know

11%

56%

4%

21%

7%

Even the President Realizes the Value of Behavioral Targeting

46

“Both campaigns also used

something called online

behavioral targeting, but

Obama's team proved better

at leveraging its effectiveness.

Before, candidates had to rely

on stereotyping large swaths

of voters and making TV

spots to suit; this year they've

been able to literally formulate

an ad campaign for each

individual voter. “

“Both candidates used the Internet to reach voters. But Team Obama mastered the medium early and exploited it to the hilt. Along the way, it changed politics -- and perhaps government -- forever.”

How Obama Won It With the WebBy: Chris Dannen

- Fast Company

Source: http://www.fastcompany.com/articles/2008/11/how-obama-won-it-with-the-web.html

Questions?

47

• Interactive marketing is growing significantly• We are experiencing a transformation of media

buying across channels• This transformation means a shift to more

dynamic, data driven audience targeting and media buying

• Online advertising industry working to protect consumer privacy while delivering relevant services and content

Summary

48

Thank You

www.audiencescience.com

Twitter: @audiencescience

49

Thank YouVisit

www.onlinemarketingsummit.com

for more information

Follow us @OMSummit