Demographic Targeting and Business Intelligence Jed Nahum Director of Product Management, Microsoft adCenter SES San Jose August 7, 2006

Demographic Targeting and Demographic Targeting and Business IntelligenceBusiness Intelligence

Jed NahumJed NahumDirector of Product Management, Microsoft Director of Product Management, Microsoft adCenteradCenter

SES San JoseAugust 7, 2006

Page 2 | April 19, 2023

Agenda

• How do we provide BI and demographic targeting?

• How accurate are the data?

• Do targeting and BI enable better returns?

Microsoft adCenter Background• Summer ’05

– Pilots in SG and FR

• October 18, 2005 US pilot

– 400 advertisers

– 25% traffic

• February NYC SES: 70% traffic

• May 4: adCenter US Launch

• Early August: New release

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How Do We Provide BI and Targeting?

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Two Uses of Data for adCenter Marketers

• Business Intelligence

• Targeting & Optimization

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How Accurate are the Data?

• Internal assessment of accuracy using two separate databases, one of which was the registration data for adCenter (CAPRi), the other being MSFT consumer marketing database (CIQ).

• Marketing database integrates data from existing subscription services, consumer packaged goods registrations, direct purchase transactions, key on-line events and external sources of data including demographics.

• Compared US data only

• Identify cases in which the consumers overlap

– Age: 2.2MM consumers

– Gender: 1.9MM consumers

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Gender

Overall match rate: 88%Marketing

Female Male

adCenterFemale 89% 13%

Male 11% 87%

Age Statistics

• 80% of ages match in the two DBs

• Younger consumers tend to have more consistent ages in the two DBs

• Users who are in their 20’s, 30’s and 60’s are slightly more likely to provide age information in Passport than users who are in their 40’s and 50’s

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

0 10 20 30 40 50 60 70 80 90 100

Age

Distribution

CAPRi Data

CIQ Data

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Audience Intelligence Informs

Retail Industry Findings

Reaffirm, Learn & Discover Refine Your Strategy

Keyword Audience Profile Interpretation Actionable Item

Reaffirm what you already

know

tag heuer 46% Male 26-35Traditionally target

Males• Bid boost on male 26-35

purses Largely Female audienceTraditionally target

Females• Bid boost on Female for

"purses"

Learn new facts about

your audience

kitchen appliances

50% Male/Female. BUT: "small kitchen

appliances" - 65% Female

"viking kitchen appliances" - 84% Male

Gender gaps for different types of kitchen

appliances

• Place gender based incremental bids on tail terms.

• Create gender targeted ads for tail terms

Discover intelligence

that changes your strategy

hobo 50% Male/Female

Organic searches are for info about hobos and

commercial searches are for retailers of Hobo

purses.

• Leave out references to hobos

• Target ads to to women. • Buy tail terms (hobo

bags).

diaper 61% M; 48% M < 36Explanation: Males

searching for adult site www.dpf.com.

• Exclude adult references by including references to babies in ads.

• Bid boost for Females

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Entertainment Industry Findings




knowsoap opera

70% Female ages 18 - 50

Consistent with hypotheses

• Advertisers can create female targeted ads with this keyword

• Bid for Females 18 - 50


your audience

movie tickets,

amusement parks

70% Female ages under 50

Large female audience for movie tickets

• Create female targeted ads


rap music [and related

terms]

60% – 95% Femaleages 18 – 35

Larger female audience for Rap

• Target creative to women


casinos [and related

terms]

60% – 90% Maleages 26 to 35

Large male audience for casinos

• Target creative to men

• Bid for Males 26 - 35



elle girl 48% MaleMen searching for Elle

McPherson

• Create Female targeted ads

• Negative match “mcpherson” or “model”

• Pursue related tail terms “elle girl magazine”

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Intelligence on Travel




knowspa resorts Over 65% Female <36

Traditionally target this demographic

• Create Female targeted ads for spa related keywords

• Bid boost Female < 36


your audience

honeymoon / honeymoon packages

honeymoon: 50% M/F; honeymoon packages:

73% Female

Males research honeymoon spots; Females research

honeymoon packages

• Create Female targeted ads for honeymoon packages

• Bid boost for Females

hotel / hotel reservations

hotel: 55% Female; hotel reservations: 75%+

Male 26-50

Large Male population for hotel reservations

• Create Male targeted ads • Bid boost Males 26-50

wine tours 80% Female 18-50 Large Female audience

• Create Female targeted ads

• Bid boost for Females 18-50



safari / African safari

vacation

safari: 50% Male/Female; African safari vacation: 60%+

Female audience

Male searches for "safari" were searching for Apple Computer's Safari RSS. Females

more apt to search for safari vacations.

• Negative match RSS. • Bid boost African safari

related terms. • Target creative to women • Bid boost for Females

Page 10 | April 19, 2023


KeywordAudience

ProfileInterpretation Actionable Item (s)


know

Ferrari and related terms

70% Male <35Traditionally target

Male audience

Create Male targeted ads and incrementally bid boost Males

18-35

Learn new facts about your audience

porsche boxster and

related terms

70%+ Female <51

Searches for "porsche" were split 50% M/F;

searches for "porsche boxster" were predomintaly F

Create Female targeted ads and incrementally bid boost

for Females under 51

pick up trucks

80% Female 18-35

Large Female audienceCreate Female targeted ads and incrementally bid boost

for Females 18-35

ford focus 70%+ FemaleLarge female audience

for ford focus and related models


for Females

hybrid cars60%+ Female; majority under

36

Large younger Female audience for hybrid

cars


for Females < 36

Discover intelligence that

changes your strategy

vans 51% < 35

Paid search for vans, minivans etc; organic

search for Vans sneakers

Negative bid "footware" and "shoes." Incrementally bid for

M/F over 35

Audience Intelligence Informs Intelligence on Automotive

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Why adCenterMeasurable Conversion + Powerful Audience Intelligence

Demographic 50% Male/Female 65% Female

Keyword "Cookware" "Kitchenaid"

Demographic 75% Male 80% Female

Keyword "Clothing" "Isaac Mizrahi"

Demographic 70% Male 80% Female

Keyword "TVs" "Sony TVs"

Audience Targeting

Audience Targeting

1.2%

1.8%

2.0%

0.9%

1.4%

2.3%

1.0%

1.4%

2.8%

0%

1%

2%

3%

Retail Consumer Electronics Travel

MSN Google Yahoo!

Con

vers

ion R

ate

• Compete Inc. ranks MSN first in conversion rates in Retail, Consumer Electronics and Travel categories*

Notes: *Compete defines Conversion as a session where the conversion funnel was completed (purchasing retail item, purchasing travel) MSN scored 3rd in Financial Services, the only other category studied

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Why adCenterWhat’s Working for our Clients

“The ROAS comparison for June for our biggest client, expressed as revenue per ad dollar spent, is $2.85 for AdWords, $5.53 for Yahoo, and $8.13 for Microsoft adCenter. Needless to say, we’re going to increase our investment in Microsoft adCenter right away.”

— David Szetela , President & CEO, Clix Marketing, www.clixmarketing.com

“The efficiency gained from Microsoft adCenter allowed Move.com to be more aggressive with its acquisition strategy, resulting in more conversions across the entire campaign.”

— Frank Lee, VP, Account Management & Partner Relations, The Search Agency

“The campaign has been an overwhelming success. We have seen conversion rates up to two times as high as other major search engines, including Google, all at lower bid prices. At this point, we want to spend as much money with Microsoft adCenter as we can because it simply works as well or better than anything else out there.

— David Rodnitzky, Senior Director of Marketing Adteractive

“ MSN achieved an excellent rate of return on the amount we spent. Register.com looks forward to growing our paid search campaign with MSN as the engine expands.”

— Craig Cooperman, Director, Advertising & Partner Marketing at Register.com.

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Success Story: Home Décor Case Study

Source: Market Forecast, Retail, 2005-2009, JupiterResearch. 2005.

• Campaign results on Microsoft adCenter earned significant ROI, exceeding acquisition cost goals and outperforming Yahoo!

• The addition of Microsoft adCenter to the advertising mix, and its ability to deliver strong ROI has contributed to an increase in HDPI's overall search marketing spend

• With Microsoft adCenter serving 100% of MSN Search traffic, HDPI anticipates gaining even more flexibility to reallocate its search budget to better performing search engines

"Our goal is to maximize ROAS without cannibalizing revenue growth. The acquisition cost on Microsoft adCenter is so low that it allows us to increase our maximum CPA goals on other engines and still remain below our campaign cost threshold.“

- Christal Condon

Director, Online Marketing

"The net result is we are able to drive more volume and convert more visitors at a reduced cost. Microsoft adCenter has greatly enhanced our ROI."

- Christal Condon

Director, Online Marketing

Page 14 | April 19, 2023

Wrap Up

• Learn more:

– Varnished: advertising.msn.com/adcenter

– Unvarnished: www.webmasterworld.com and forums.searchenginewatch.com

– adCenter blog: blogs.msdn.com/adCenter

– Funky, cool stuff: adlab.microsoft.com

• [email protected]

Documents

Demographic Targeting and Business Intelligence Jed Nahum Director of Product Management, Microsoft adCenter SES San Jose August 7, 2006