ADTELLIGENCE_ White Paper_Monetization of Social Networks_Chapter4

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  • 1. ADTELLIGENCE GmbH Mannheim, Germany www.adtelligence.de info@adtelligence.de “Cashing in” on Connections – Monetizing Today‟s Social Networks White Paper (2009) Chapter 4 – Targeting Technologies for Social Networks
  • 2. Contents 4. Targeting Technologies for Social Networks 4.1 Marketing Channels: Social networks and Web2.0 sites in 2009 4.2 Data privacy is the critical basis of targeting 4.3 Overview of first generation Targeting Technologies 4.4 Targeting for Social Networks and Web 2.0 sites 4.5 Outlook on the trends of the next generation www.adtelligence.de 2
  • 3. Approaching the User in the Wide World of Web2.0  With the transition to Web 2.0, Web 1.0 Editorial Content have publishing models on the Internet completely changed? Web 2.0 Additional User Generated Content  The idea of user-generated Most Import Source of Revenue content was introduced on many websites and led to new records in traffic on the Internet Advertising  Still, the main revenue source for many sites continued to stem from advertising  This raised the question of whether the same approach But: Should be used the should be used in this “new” Internet world of Web 2.0 same approach today? www.adtelligence.de 3
  • 4. Web 2.0 Marketing Toolbox Buzzwords that really help? Web 2.0 Marketing  New online marketing techniques for Web 2.0 are Toolbox often of a very creative nature Viral Marketing  Most of the new tools are used to present the same old methods of advertising: PR and news over Early Adopter Marketing blogs or Twitter Buzz and Guerilla Marketing  The focus of interest within advertising has moved Blogging and Twittering to viral marketing - network-based campaigns that spread a message via “virtual” word-of-mouth – or Brand Page “word-of-mouse” “Become a Fan” of a Brand - Facebook Fan Pages  Despite the success stories of these creative campaigns, their overall efficiency can not be Online Events/Webinar estimated beforehand, and the campaigns remain singular; they don’t repeat very well, nor are they YouTube Video PR scalable Company Radio & TV www.adtelligence.de 4
  • 5. Contents 4. Targeting Technologies for Social Networks 4.1 Marketing Channels: Social networks and Web 2.0 sites in 2009 4.2 Data privacy is the critical basis of targeting 4.3 Overview of first generation Targeting Technologies 4.4 Targeting for Social Networks and Web 2.0 sites 4.5 Outlook on the trends of the next generation www.adtelligence.de 5
  • 6. The Need for new Forms of Online Advertising The old and new terminology of online marketing Performance Affiliate Display Ads Suitable for sites Marketing Marketing with user- generated content? in Video Semantic Behavioral Ads Targeting Targeting For Social Networks, the starting point is no longer the static page for online marketing, but the entire site itself is dynamic and interactive  New forms of advertising are necessary! www.adtelligence.de 6
  • 7. Traditional Targeting Technologies don‟t meet the expectations for Social Networks Previously for advertising technology, there was no difference between static websites such as Spiegel, CNN, or FTD.de and dynamic Social Networks HOWEVER: There was the assumption that current targeting technologies could work for Social Networks – but were not likely to meet revenue expectations NOW: In today’s Social Networks there is no central topic, nor is there any edited, professional content People are now in the and center of the their interests equation www.adtelligence.de 7
  • 8. What advertisers need to learn about Web2.0 Users of a Social Network What are the needs of these users? Passive users become active consumers, shareholders, make comments and PR on the brands that make them feel good and the ones with which they closely identify Advertisers need to learn to address these specific users according to their interests! www.adtelligence.de 8
  • 9. Targeting makes it possible to reach every user systematically Today’s social media approaches Social Networks Is every user ? Become a fan of my Comment on my brand! blog! interested in listening to this? Send a Beck’s Beer to Come to an online Can you monetize a friend! event! a social network this way? How would you rate Install our song on this advertisement? your site! Each user needs to be targeted according to their interests in order to maximize the advertising impact - targeting makes it possible, and complies with data protection www.adtelligence.de 9
  • 10. Contents 4. Targeting Technologies for Social Networks 4.1 Marketing Channels: Social networks and Web 2.0 sites in 2009 4.2 Data privacy is the critical basis of targeting 4.3 Overview of first generation Targeting Technologies 4.4 Targeting for Social Networks and Web 2.0 sites 4.5 Outlook on the trends of the next generation www.adtelligence.de 10
  • 11. Areas of Conflict Data in legal and emotional contexts Legal Contexts User Sensitivity  Today, data protection laws stipulate  Privacy is one of the critical success that Social Networks can only use factors on the Internet - regardless of personal data if the users grant them the legal situation the right to do so (using “opt-in” clause)  Some users tend to gladly and  The re-use of their personal data has willingly expose personal information serious legal consequences if any – however, if they feel their data has violations of their personal rights have been unwarrantedly reused and their been breached personal privacy and legal safety are in danger, they will most likely take legal action  It is expected that laws will become increasingly more strict as we move forward into the future  In the case of semantic advertising with GMAIL there is the continual discussion whether “Google is reading emails” www.adtelligence.de 11
  • 12. Using user data today and tomorrow Today’s users expect clear and open communication ensuring them that none of their personal data will be passed on to third parties Social networks need to clearly communicate that they use advertising data purely for the purpose of market evaluation. Users will accept this when they can be sure no personal data is being used, and they can avoid premium service fees The current laws and sensitivity assessment leads to the fact that advertising data are saved as anonymous Behavioral targeting vendors ensure that private data are not used, placing an anonymizing server between the IP address of the user and the allocation of the advertising delivery system Anonymizing services and providers of “opt-out” services that are in compliance with all regulations continue to be on the increase www.adtelligence.de 12
  • 13. Wer-Kennt-Wen (Germany) Communication for data privacy An excerpt from one of Germany’s largest Social Networks, “Wer-Kennt-Wen” privacy policy: “Section 4.2 The advertisements for Wer-Kennt-Wen are supplied by third parties, for example, by our contract partner, “Google”. The third advertisers place a unique, temporary or permanent cookie in your browser that can be accessed and read. When clicking on a particular advertisement via Wer-Kennt- Wen, information about how many times you have viewed a particular ad, for example, is collected and anonymously passed on to the advertisers. There is NO personally identifiable information, such as your name or address, generated or forwarded on. Nor can you be identified by any of the details of this information.” A typical, open and clear correspondence from a large social network. www.adtelligence.de 13
  • 14. Contents 4. Targeting Technologies for Social Networks 4.1 Marketing Channels: Social Networks and Web 2.0 Sites in 2009 4.2 Data Privacy is the Critical Basis of Targeting 4.3 Overview of First Generation Targeting Technologies 4.4 Targeting for Social Networks and Web 2.0 Sites 4.5 Outlook on the Trends for the Next Generation www.adtelligence.de 14
  • 15. First generation targeting approaches allowing for more focused banner advertisements than ever… • Banner or display advertising, next to search advertising is now the most popular and commonly used form of advertising Traditional Banner • Without targeting, the amount of banners wasted would be enormous – Advertising which is one of the reasons for eroding CPMs, next to "click generators" such as photo albums First Generation Targeting Contextual Targeting SemanticTargeting Behavioral Targeting  Providers scan a page for  The next developed step after  Providers interpret the interest keywords and manage ads on contextual targeting of a user from the pages this basis, mostly display ads  Providers identify main themes they’ve previously visited  Google AdSense is the best and the “meaning” using  According to this type of known example sophisticated technologies targeting, the user is assigned  The most appropriate banner is to a certain target audience also shipped out from here. and delivered relevant advertising www.adtelligence.de 15
  • 16. Contextual Targeting Google AdSense made it famous… Providers of this context-sensitive advertising technology browse a web page automatically by keywords Certain terms are found, picked up, and delivered to the relevant advertisements. For example, Tennis = sports advertising  delivered to an article about Boris Becker Google AdSense is the best known provider of this model Contextual targeting is suitable for high- content Web pages, but its disadvantage lies in the fact that the meanings of the words are not analyzed in their context www.adtelligence.de 16
  • 17. Semantic Targeting Recognizing meanings within Web sites Semantic targeting evolved out of context- sensitive advertising Key concepts are examined in relation to one other by sophisticated database technology, and their significances are analyzed. For example, in an article about Boris Becker and tennis = glamour Semantic targeting is especially suitable for high-content pages - the advantage is that the technology “picks up” or “understands” what the user is reading and delivers related advertisements www.adtelligence.de 17
  • 18. Behavioral Targeting Interpreting users‟ tastes and preferences Behavioral targeting attempts to Simplified Example of Behavioral Targeting draw conclusions about a user's interests and evaluates their target group membership based on the websites they’ve visited User Surfs the Net.... This only works by storing a Website 1 Website2 Website 3 cookie in the web browser of ESPN.COM CNN.com Porsche.de user’s computer Soccer News Automobile The data stored in the cookie is reconciled with the supplier’s ADServer synched ADServer synched ADServer synched database (on the basis of statistical forecasting models) and Cookie Cookie assigned to individual target Cookie saves: saves: saves: Sports Male, Sports, groups evtl. Male Car www.adtelligence.de 18
  • 19. Behavioral Targeting User orientated - including conclusions from the past Advantages/Disadvantages of Behavioral Targeting  Behavioral targeting puts users in the center of focus and not the contents of a particular web page. Thus, allowing it to draw better direct conclusions about the user  However, it tries to draw conclusions from past data (web pages visited) along with the help of statistical data and forecasting models  Behavioral targeting is good when there is no other detailed data available about the user and the visited web pages are well suited for the target groups www.adtelligence.de 19
  • 20. Current Targeting Technologies are gaining importance Banners without Targeting Contextual Targeting  Banner advertising without targeting  Contextual Targeting will be will be less likely asked for in the continually replaced by semantic future targeting in the future  Due to the amount of wasted  Google AdSense, a simple and spending, this approach will be usable application will keep this replaced by modern targeting type of targeting alive in the future technologies Semantic Targeting Behavioral Targeting  As sites increase with mixed  Behavioral targeting also will content and user-generated continue to grow in importance content, semantic targeting will  As users visit more sites more continue to grow in importance quickly, their interests can be  This is especially true if a user is not determined more frequently easily identifiable  This is especially true for pages with editorial content www.adtelligence.de 20
  • 21. For Social Networks these Technologies are still only suitable to a limited extent Social networks are characterized by their content and special user behavior, strongly differing in this way from other pages with editorial content:  User profiles, pictures, forums, and communication are emphasized  Users commonly visit other user profiles. This complicates categorizing the interests of a single user based on their surfing behavior. Social networking sites are subject to continuous changes  This makes the use of semantic and context-based technologies very inefficient.  Even the statistical forecasting methods of behavioral targeting are inefficient for Social Networks  Users spend lots of time in Social Networks, but the simple fact that they visit one is not enough for solid interest categorization  Users can also “drill down” and specify their interests on their profiles - you can then identify the user and evaluate the data with modern targeting technologies  The enormous, intense usage and the amount of time spent on these Social Networks can only be efficiently and successfully examined using today‟s special, most modern targeting technologies and the evaluation of users‟ self descriptions - this will be covered in more detail in the following section www.adtelligence.de 21
  • 22. Contents 4. Targeting Technologies for Social Networks 4.1 Marketing Channels: Social Networks and Web 2.0 Sites in 2009 4.2 Data Privacy is the Critical Basis of Targeting 4.3 Overview of First Generation Targeting Technologies 4.4 Targeting for Social Networks and Web 2.0 Sites 4.5 Outlook on the Trends for the Next Generation www.adtelligence.de 22
  • 23. Social Networks Benefit from End User orientated Marketing Activity ■ For content sites, semantic and behavioral targeting are the best solutions and allow better results than normal banner advertising ■ Soccer and sports are interesting for the user who visits a professional soccer club page, but this information is not sufficient for a precise description of the target group (Is he an “active” or a “passive” soccer player, wealthy or poor?) ■ On Web 2.0 pages and especially on Social Networks, the user creates his profile and adds his interests, what he likes, and describes his attitude. This allows for a systematic approach ■ MySpace and Facebook, as technological newcomers, have realized that the user is focused in the center and content revolves around him. Therefore, the main focus of the marketing strategies must be on the user ■ They allow advertisers to reach interested users right away and make it possible to take out ads efficiently without having to consult imprecise data from traditional surveying methods www.adtelligence.de 23
  • 24. User Profiles Source of Demographic and psychographic information Usage of Self Written Content Typical Content of a User Profile  What has been unthinkable only few years 1. Personal data ago is now reality 2. Demographical data: age, profession, income, etc.  People like to write about themselves, their interests, and their dreams and so provide 3. Interests (music, movies, books, sports or information on the internet things like favorite quotations, etc) 4. Geographical data such as place of residence,  Personal data is displayed: it is no longer a studying or travel destination secret but rather an instrument of communication 5. Friends and social graph 6. Group activities  Hence, user generated content for Social Networks is created voluntarily 7. Wall and comments 8. Photos 9. Specials such as Blogs or Video podcasts www.adtelligence.de 24
  • 25. A complete user profile can be very extensive Example: ■ Here is the profile of the MySpace co-founder Tom Anderson at MySpace ■ He automatically is always the “first” friend/contact after registration at My Space ■ Like most of the other users of a social network, he describes his interests, his tastes in music, the movies he likes, his age, where he lives and much more ■ Therefore his detailed profile is not a unique case ■ The younger the user the more data he gives away (“digital native”) www.adtelligence.de 25
  • 26. Due to data protection Not all data in Social Networks can be used for further processing How to use data in the user profile: NO GO 1. Personal data OK 2. Demographic data: age, profession, income, etc. OK 3. Interests like music, movies, books, sport or quotations OK 4. Geographic data like place of residence, studying, travelling Upon approval by user 5. Friends and Social Graph Upon approval by user 6. Group activities Upon approval by user 7. Wall and Comments Upon approval by user Upon approval by user 8. Photos Ok, if by content (see Gmail) 9. Specials such as Blogs or Videopodcasts  The further use of voluntarily given information in a user profile can only occur according to current legal data protection regulations  Besides data protection, there is also the User and his/her sense of privacy which has to be considered www.adtelligence.de 26
  • 27. Facebook and MySpace The largest and most innovative Social Networks already offer targeting solutions MySpace Hypertargeting Facebook Interest Targeting MySpace refers to targeting of interests in user Facebook has integrated a similar function as “self- profiles as Hypertargeting service” under the name Interest Targeting  No personal data such as name or e-mail address is used  It is more detailed than the one of MySpace and makes it  Yet, the interest targeting of MySpace is not able to possible to choose single fields in the profile, in order to implement the definition of the target group for advertisers, narrow the target group down since its capacity is not sufficient and MySpace is aimed  There are some restrictions to this technology: Only one rather at smaller clients in special niches banner size can be selected, the website is divided into  According to MySpace, hypertargeting enhances the usually general advertising space and advertising with interest low click rate in Social Networks from below 0.5% to a targeting and there is no help in the selection of the interests. minimum of 3 times more, and with sponsorships to more  Therefore, clients do not know if their target groups play than 6 times more (3%). soccer as often as they watch a movie – which makes it  This shows a huge potential, if this method is extended difficult to evaluate the data correctly  Interest targeting provides a very good targeting solution for Social Networks, yet is not sufficient to satisfy the demands of agencies and advertisers, as they only reach half of the target group and cannot define their “view of the world” www.adtelligence.de 27
  • 28. Targeting Approaches Facebook Interest-Targeting www.adtelligence.de 28
  • 29. Targeting Approaches MySpace Hypertargeting Quelle: http://www.slideshare.net/MySpaceDevTeam/myspace-apps-advertising-programs www.adtelligence.de 29
  • 30. New Targeting ideas haven‟t yet been established by German Social Networks Facebook &  Has been adapted to the German market but is not a sufficient solution  Facebook does offer interest targeting, but the possibility of geo targeting or selection of a MySpace certain place such as a specific university is limited Technology on  As shown, the big US networks have already started to offer some targeting solutions the German  With the hyper targeting method of MySpace, an advertiser cannot identify an entire target market? group for his product – corporate clients are reluctant and try - as „Fanta‟ did - to implement viral marketing campaigns which are not scalable What are the  German Social Networks do not yet have a targeting solution  StudiVZ militates against using the interests of the users – they will probably not be able to maintain German Social such hard a line, since the monetization of the platform would be nearly impossible otherwise (they Networks doing? might concentrate on the group memberships of the users)  WKW (‚Wer-Kennt-Wen‘) holds a clause in their data protection regulation which aims at utilizing data for advertisement and market research but so far nothing important seems to have come from it Idea of ADTELLIGENCE: Offer a modern targeting- solution to the German market for targeting in Social Networks www.adtelligence.de 30
  • 31. ADTELLIGENCE ´s Targeting Technology The objective of the ADTELLIGENCE Targeting Technology is to fuse the interest targeting of Facebook and MySpace with the traditional way of defining target groups and to facilitate an integrated approach  the implementation of socio-psychographic targeting  Each advertiser should have the possibility to define his/her own target group in detail individually, without wastage or imprecise statistical projections.  The approach of MySpace has already demonstrated the successful increase of response rates – with the ADTELLIGENCE approach the expected results will be even better  An integration into the value added chain makes it possible to display each campaign only to those who belong 100% to the previously defined target group  No expansions, surveys or statistics will be taken as a basis except by the individual user himself Why isn’t anyone else already applying these possibilities? In August 2009 the startup Rocket-Fuel near Stanford University in the Silicon Valley was launched and partly aims at improving advertisement at Social Networks, too Advertisers are not necessarily active users in Social Networks and therefore must be made familiar with it step by step www.adtelligence.de 31
  • 32. How is it possible to draw a comparison of user profiles with a defined target group? A comparison between user profiles and target groups takes place through high-performance databases Ideal Targeting Possibilities in Social Networks  Due to precise market research, advertisers usually know their target group very well – still, they haven’t yet been able to determine exactly its ways and location in the net  In Social Networks, millions of users do not only give their socio-demographic data voluntarily but also their interests and further information – ADTELLIGENCE provides the possibility to adjust the delivered data to the description of the target group. This is a huge advantage for Social Networks and can be done with all kinds of data (age, favorite movies, hobbies, etc.)  For this, a technical high-performance database has been built which allows millions of page impressions within only few seconds  The adjustment now happens directly without detour via forecast processes But what do other providers of Web 2.0 pages, e.g. music portals or video-pages, do?  For them, targeting can be profitable as well! Today it is possible to draw conclusions on a user‘s lifestyle through knowledge of his/her taste in music: Who is more likely to buy life-insurance? The “Tokyo Hotel” or “Oasis“ listener? … With such minor information, it is possible to define the age and get further information about the listener on music pages like last.fm or Spotify www.adtelligence.de 32
  • 33. Implemention How does ADTELLIGENCE„S Approach “Targeting for Social Networks” work? Targeting with Social Networks No interpretations required – Each user behind the target group can be reached (simplified image)  Only anonymized data such as interests or demographical information are transmitted  NO private contact information or IP-addresses will be retrieved  Only the user whose interests exactly match the target group definition get addressed  wastage in reaching a target group is in now advertising history. From now on, advertisement always precisely fits to the person it is meant for! www.adtelligence.de 33
  • 34. Many advertisers use pre-assembled milieus ADTELLIGENCE supports traditional target- group descriptions How do advertisers of Social Networks benefit from ADTELLIGENCE, if they use it as a standard? • Many advertisers use – apart from their own definitions – pre-defined target groups like the Sinus or Sigma milieus* • ADTELLIGENCE totally supports these widespread descriptions of target groups • Clients do not have to get used to other complicated systems and can easily adapt to the new possibilities of socio- psychographic targeting • In addition, advertisers get feedback from what users are interested in outside of the milieus • Clients are able to select standard milieus directly with a mouse click and then adjust further details • Here you can see a screenshot from the menu: 1) Sinus, Sigma are incorporated brands of Sinus Socio Vision in Heidelberg and the Sigma GmbH in Mannheim 34 www.adtelligence.de
  • 35. Advertisers Define target groups explicitly through the Targeting Engine What are the advantages for advertisers… … if the Targeting Engine is integrated into a Social Network?  Standard milieus are just one possibility. A target group can be freely defined in all details  Every customer can define their own target group from a number of unlimited possibilities Define for example:  from ABBA to Zappa  millions of music titles  from Automobile to Zoo  thousands of interests  from Frankfurt to Shanghai  Geo-Targeting  from Teenager to Businessman  every age, every phase of life and income  from Adventurous to Conservative  every social milieu  age, job, gender…  many more details are easily definable  …as well as more characteristics and interests  only users who match the target 100% are being addressed!  Waste? Absolutely none! Screenshot aus dem Targeting Menü www.adtelligence.de 35
  • 36. ADTELLIGENCE Targeting Engine  user-optimized interface  every imaginable selection can be made Unlimited Targeting Options Recommendations Reporting & Analysis www.adtelligence.de 36
  • 37. Real Time feedback, real time reaction, 100% optimization Plan campaign analyze & ADTELLIGENCE Select tar- optimimize Targeting 2.0 get group Run campaign  A fully automated process allows you to filter and analyze data about the process and client’s feedback in real time even while the campaign is still running  The target group definition which has been developed through market research and surveys, can be checked in real time and optimized  While the campaign is active, feedback about its success can continue to be gathered.  Result: A better approach to marketing. www.adtelligence.de 37
  • 38. Social Networks get better marketability options and become much more profitable How do marketers and operators of Social Networks or Communities benefit... from using this kind of Targeting Technology?  Operators of social networks want to develop their advertising revenue through socio- psychographic targeting  Operators can both gain new clients because of the added value and increase the CPM with already existing clients, as the response-rates will rise considerably (e.g. MySpace)  Commercialization of Social Networks as a whole can be replaced with precisely adjusted target group marketing:  With this method even profitable affiliate models can be leveraged to specific target groups  The disadvantage of having a huge heterogeneous amount of users can be turned into an advantage  Social networks can become a cash-cow in the portfolio of the operator  In addition, marketers and operators can provide their clients with detailed reports about the effect of campaigns in certain target groups www.adtelligence.de 38
  • 39. Media Agencies can benefit by more effectively controlling campaigns How do Media Agencies benefit? By increasing the customer satisfaction and effectiveness of their campaigns  The effectiveness of the campaign can be reviewed in real time and adjusted, if necessary  Extensive reporting-tools are available for clients and media agencies  Readjustments, as well as a sudden change to the target group, are possible in real time, which can have a positive effect on the campaign  Testing campaigns for different target groups as well as scenario models is easy and cost-effective.  In order to accommodate advertising clients with specific preferences, multi-leveled campaigns are made possible to spark their interest www.adtelligence.de 39
  • 40. Social Networks benefit from adequate and interesting advertisements How can Social Networks benefit? Less spam and a higher relevance of effective advertisements  The use of data constitutes a problem, not only in terms of data protection in the legal sense (more on that later) but also in a personal emotional sense – when “Facebook Beacon” wanted to give user data to third-party supplier, the users rebelled  User acceptance can be gained through open communication about exactly what data is being used and how, and by pointing out the advantages for the user  Through a targeted drive, every user receives less and more specific advertisement  Systematic advertisement is important and interesting for every user  Relevant advertisement is happily accepted by every user – overall media surveys have shown the same results again and again www.adtelligence.de 40
  • 41. ADTELLIGENCE A targeting solution completely based on commission Social Clients only pay for their Network benefit! It’s a real commission AD Server model as everyone in the & Social Advertiser Agency Marketer Networks Network value-chain can use the advantages from targeting, reporting & market intelligence and Social Network recommendations To build and Campaign scan target Mgmt Real time groups To control Reporting campaigns & Mafo ADTELLIGENCE Targeting Engine This produces a win- On-Demand win situation in the Business model value –chain for all parties concerned! www.adtelligence.de 41
  • 42. Easy technical integration for Web site operators The technical integration into the existing system Technology landscape is a walk in the park! Highlights of the next generation today: 1. Software as a Service/on-demand model ■ Performance through Cloud Computing with Load-Balancing & AutoScaling ■ Extremely high data security – on demand System on decided servers ■ Service oriented architecture allows an easy and flexible integration ■ Support from standardized APIs and WebServices for an easy integration into existing landscapes such as AdServer or Campaign-Mgmt 2. Clients don’t have to purchase new systems ■ The technique is fully integrable at different positions of the chain: Marketer, Social Networks or AdNetworks can attach directly per APIs and a White Label Solution makes it possible to directly integrate the targeting into your system ■ Optionally: a total integration into the Campaign-Mgmt or supply of a distinct system is possible www.adtelligence.de 42
  • 43. Benefits for Operators, advertisers and users  Social networks, marketers, media-agencies, advertisers and users can benefit heavily from the new possibilities of targeting  Thanks to the new targeting technology of ADTELLIGENCE, the dilemma of having to address the entire community as a whole, which agencies and marketers in Social Networks had to face up until now, has come to an end,  The heterogeneous target group of a social network becomes a huge advantage and unique feature and enables operators to…  …gain higher response rates & CPMs  …maximize the efficiency of campaigns and minimize wastage  …receive an optimized campaign, reporting & market analysis in real time  …reach people in Social Networks with actually relevant advertisements  …increase revenue for the operator  Alternatively, a combination with previous technologies such as semantic or behavioral targeting is possible, but only in consideration of data security www.adtelligence.de 43
  • 44. Identify valuable Early Adopters of a Network  The social graph describes the network of friends in a social network, it can also be used to analyze and optimize advertisement (if the user agrees) – through which the especially interesting Early Adopters/Influencers can be identified  Advertisers can easily achieve network effects with two Early Adopters:  Social Hub (which has particularly many contacts): can be used to spread the advertising message  Expert Hub (which is the expert in his field): can be used to implement new technologies and solutions (e.g.: iphone, VDSL, etc) The identification and address of these Early Adopters is possible with the technology of ADTELLIGENCE Social Hub Expert Hub Spreads the message faster, as they have many contacts– Expert in his field. Gives recommendations based on experience and excellent for consumer products knowledge – very good for experience- and search customer www.adtelligence.de 44
  • 45. Market Research Data Gained and adjusted to the target group during the campaign What kind of music does Do all Mercedes drivers like Clients who like soccer also someone who buys an sailing or do they go out with like beer. But how many of insurance listen to? Tokyo friends? them actually play soccer? Hotel? ■ You can find out what clients are really interested in and what they wish to possess  Amazon recommends products which match the users’ choice of books. This kind of recommendation is also useful for market research and campaigns ■ ADTELLIGENCE offers the possibility to gain and process new data while the campaign is still active ■ This helps to control the target group and offers an enormous advantage for market research ■ Insight into the desires of the clients and target groups is possible and there is no need for expensive and time-consuming market research data ■ Additionally, you get the opportunity to receive a matched analysis to arrange further campaigns and use cross-over effects more efficiently – you gain lots of new information about the client: ADTELLIGENCE calls it “New Market Intelligence” www.adtelligence.de 45
  • 46. Contents 4. Targeting Technologies for Social Networks 4.1 Marketing Channels: Social Networks and Web2 .0 sites in 2009 4.2 Data Privacy is the Critical Basis of Targeting 4.3 Overview of First Generation Targeting Technologies 4.4 Targeting for Social Networks and Web 2.0 Sites 4.5 Outlook on the Trends for the Next Generation www.adtelligence.de www.adtelligence.de 46
  • 47. Better understanding of the individual users within Social Networks In the future, it will become increasingly important for businesses to know what has been written about them on the Internet and how advertisements can be effectively implemented in order to obtain viral effects and authenticity Social networks qualify for an analysis of how people cope with new products and how they define themselves in their social environment Tools have already been developed to help understand people in Social Networks and evaluate their interests Analyze Toolset Collaborative Recomm- Social Early Filtering endation Engine Graph Adopter Analyzer Identifier … www.adtelligence.de 47
  • 48. New Market Intelligence A mixture of quantitative and qualitative collected data The next generation of market research collects a combination of statistics from quantitative data and qualitative evaluation in order to draw conclusions such as: “How do people living in NYC judge my campaign compared to those living in Tokyo?” Users already express themselves in the Net. Increasing interrogation is not necessary, instead what are needed are better analytical tools which are linked to the product, and marketing strategy in real time Analytics Recommendations Reporting Did you know that your target group also likes… Soccer Cinema ABBA Social Graph Analysis Social Network Trends Analysis Blog Opinion Tracking Twitter Buzz Monitoring www.adtelligence.de 48
  • 49. Customer relationships will direct the future of targeting and integrate customer feedback into sales Traditional Customer Relationship Management moves more and more toward the customer. They update their own data in the C2C network which is linked to CRM People will become directly integrated into the Production & Development Process. Undesirable development of products can therefore be minimized. Social networks are the interface to the client User Generated Shoes? …will supposedly be on the fringes since not everyone is a designer. But: The user possesses an opinion that should be listened to, since no one wants to be just a number in a survey Super Distribution It will become much easier to interact and communicate with the customer via Social Networks and to respond to their wishes. If a client then recommends something to someone else, he should get a bonus or commission Promoter Relationship Management = CRM 2.0? Suppliers like Earthfaves.com offer solutions for clients who want to bind faithful clients and reward them. To automize and evaluate this kind of customer loyalty is becoming more and more important. It could be the prototype of a new sort of management software that could also be implemented in other areas  The new targeting solutions approach the individual user within a network – Social Networks can increase their competitiveness if their clients are satisfied www.adtelligence.de 49