Expand your advertising audience and target people who act like your best customers

Targeting 101: Look-alike Modeling

Targeting 101: Look-alike Modeling

Targeting 101: Look-alike ModelingTargeting 101: Look-alike Modeling

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These are your customers.

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And this is everybody else.

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The gazillion-dollar marketing question is:

How do you find the people over there who are the most like the ones over here?

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The old way. “Let’s target this demographic of buyer based on the customer persona we came up with.”

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This works up to a point, but targeting accuracy isn’t always great.

You’re held back by:

Lack of data richness – audience segmentation is based on a limited range of attributes.

Lack of identity resolution – owned data was siloed from third-party data, inhibiting enrichment and scale.

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A better way. “We know a lot about our high-value customers and how they behave. Let’s go after people who look and behave like that.”

Targeting 101: Look-alike Modeling XTargeting 101: Look-alike Modeling

This is look-alike modeling:the people-based method of targeting prospects who are the most like your best customers.

Targeting 101: Look-alike Modeling

If you’ve struggled to

grow your marketing audience intelligently,

this could be for you.

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Instead of stopping at basic demographic data like age and gender, you get a more complete customer profile by mixing in things like mobile or location data, online search, and behavioral data.

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Your small-but-smart segments can then be scaled up to build large-but-relevant audiences of resolved identities for your multi-channel marketing campaigns.You target people who are the most likely to turn into customers – only now you reach a lot more of them.

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And you save money by not targeting the people who are unlikely to buy.

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Identity resolution makes it all possible – so that marketers can use privacy-safe data to make sure your customer data is never at risk.Here’s how you do it.

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Start with your own data, whether it’s o�ine CRM or online behavioral data – whatever you have that no one else does.

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Use this to create your seed segment. It might be people who make high-value purchases, or a particular group that has been a rich source of subscriptions to your newsletter.

(Only begin when you know exactly what your end goal is, so you can design, manage and measure your campaigns more e�ectively.)

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Then it’s time

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Then it’s time

to onboard the data

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Work with a data provider or DMP's data to enrich your seed segment with added attributes.This data is analysed against the data provider’s total audience to identify a larger number of people who ‘look like’ your seed audience. All the data is tied back to a real person in an anonymized, privacy-safe way.

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Your look-alike segments can then be onboarded across all of your marketing channels: display, social ads, video, mobile…wherever you engage with audiences.But remember, look-alike modeling isn’t a one-and-done job. Make sure your models stay accurate by refreshing the data regularly.

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Listen to what the data’s telling you. If campaign performance dips, test new channels and creative until you hit the mark – and never stop measuring.

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When you do it right

look-alike modeling

is a powerful marketing tactic

It “results in double or even triple the results of standard targeting, according to the 30% of advertisers and more than half of agencies who reported using the tactic.”[1]

[1] eXelate State of the Industry 2014

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One bank used look-alike modeling to improve its online ad targeting and measure the impact of digital marketing on o�ine conversions. It combined its top customer data with third-party financial data to create a look-alike segment.

The ads served to this audience resulted in a 150% better response rate and 40% higher ROI than the control group.

You’ve got great customers—but there are so many more people just like them out there, beyond your CRM system.

Look-alike modeling could help you reach them.

Data connectivity is your first step to people-based marketing. Find out more.

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