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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
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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?
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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?
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Researched and purchased
Online Shoppers – Large Percentage of the Online Population
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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
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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
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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
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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
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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
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Identify Segments of Best Customers
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Who Is a Stock Trader?
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Audience Insight
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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
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• 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
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• 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
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The “Cookie” Monster
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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
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• 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 YouVisit
www.onlinemarketingsummit.com
for more information
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