Fueling the Database Engine Presented by Linda Henry and Allen Madoff, Acxiom Corporation &Ann Abernethy, Denver Newspaper Agency March 28, 2006 Copyright 2006 Acxiom Corporation. All Rights Reserved.
Agenda• Introductions and Background• What Is Personicx® – Linda Henry• How Personicx Increases Ad Sales – Ann Abernethy• How to Implement Personicx – Ann Abernethy• What Is Next? New Analytical Tools – Linda Henry• Open Forum Q&A
Business Objectives for Publishers• Maximize advertising revenue and enhance the subscriber experience• Provide advertisers with subscribers who will respond to relevant advertising• Court advertisers whose products will appeal to subscribers
How to Meet Those Objectives• Offer data-driven, go-to-market strategy to assist MAAX users in increasing advertising revenue• Demonstrate how Acxiom’s data can be leveraged to aid in selling print to your advertisers• Success stories and the “how to’s” from Ann• The next generation of data elements – What makes non-payers and easy payers different from your subscriber base – How to leverage this knowledge
Typical Advertising Strategies• Broad-based general reliance on trial and error• Often not very scientific• Often does not consider life stage or lifestyle interests• Primary research – Time consuming – Expensive• Committed to what worked in the past• No integration with online strategy
The Traditional Approach toTargeting Advertisers• Develop portraits of subscriber bases• Develop portraits of available advertisers• Recognize advertisers that match the characteristics, lifestyle interests and behavior of subscriber bases• Approach advertisers that fit the subscriber portrait
Acxiom’s Data-Driven TargetingAlternative• Leverage subscriber insights to match advertiser value• Benefits of using a targeted data strategy – Based on actual life-stage interests and needs, not perceived needs based on traditional, trial-and-error-based demographic research – Enhances user experience by serving relevant advertising – Increases revenue by more effectively matching the subscriber portrait to portraits of typical users of the product placed in the advertisement, thus justifying higher advertising rates – Attracts the best advertisers through definitive statistics that demonstrate target audience size and product propensity
Acxiom’s Data-Driven TargetingAlternative (continued)Recommendations• InfoBase® demographics• Personicx and consumer behavior data from Mediamark Research, Inc. (MRI) and SimmonsTest New Sophisticated Analytic Elements• Ranking Invitation to Apply Approvals (RITAA)• Consumer Prominence Indicator (CPI)• UnderBanked Indicator• Echelon Discretionary Spending Index™ (DSI™)
Personicx®• A household-level consumer segmentation system driven by Acxiom’s InfoBase household data• Personicx sees all U.S. households according to consumers’ different stages of life and related purchasing behavior• Segments the U.S. into 70 individual clusters and 21 life stage groups
Personicx• Built from the actionable marketing universe of InfoBase household data• Optimized to recognize consumer differences between households – not just neighborhoods• Covers 100% of all U.S. households – Typical household match rates between 85–90% – Defaulting algorithm to ZIP + 4®* and ZIP Code™ for 100% coverage• Predicts product purchase propensity• Appends easily to your customer and prospect data• Fully integrated with the broad consumer behaviors in the Simmons and MRI national survey databases• Accurately reflects the current dynamic state of U.S. households and life stages* The following trademarks are owned by the United States Postal Service®: ZIP + 4® , ZIP Code™ and ZIP™.
Personicx A Household-Level Segmentation System Driven by InfoBase Household Data Three Next Door Neighbors – Three Different Life Stages The Palluzzis The Hermans The Guareys Same ZIP + 4, Block Group, Tract and ZIP Different Households with Different Personicx LifeStage Clusters
MRI and Simmons ConsumerNational Survey• Broad surveys of 50,000+ consumer and media behaviors weighted and projected to the U.S.• Uses diaries, telephone and personal interviews to conduct and validate survey MRI Magazine Examples• Personicx portrait categories include: – Consumer Packaged Goods Magazine Types – Attitudes and Opinions Bridal – TV and Radio Health – Magazines Travel – Shopping Women’s – Recreation and Hobbies Parenthood – Travel and Entertainment Magazines Read – Computer Related Bride’s – Apparel House & Garden – Banking, Investments and Insurance Allure – Telephony Town & Country – More Men’s Health
Personicx in Action atDenver Newspaper Agency
Direct Mail Capabilities at DenverNewspaper Agency• Highlight capabilities in creative, printing and distribution• Market analysis – life stage and demographic characterization of existing customer list• Data processing, hygiene, de-duping and address standardization• List selection
Personicx in Action atDenver Newspaper AgencyLearning• Work closely with the Print and Delivery Team• Train them multiple times! Go to weekly / monthly meetings to reiterate capabilitiesActions• Develop standard marketing materials and leave behinds• Develop “creative briefs” for advertisers that illustrate the nature of the subscriber base – More relevant ads mean more effective advertising• Cultivate success stories / case studies from your advertisers
Personicx in Action at DenverNewspaper Agency• Donor / patron recognition – Created demographic portraits of customers, including Personicx cluster rankings• Prospect mailing lists – Look-a-likes for new jewelry store – Three events for the same client required unique lists based on the audience portrait – Radius selections and Personicx maps recognized populations around a new venue – Recognized charitable donors
What Is Next in Fueling theDatabase Engine for Media?
Recognizing the Best and WorstNon-Payer Demographic• Younger• Lower income• 50% more likely to have vehicles worth <$5K• Twice as likely to have net worth <$25K• Twice as likely to be a renter• 176% more likely to have a length of residence <1 year• Typical age <29
Recognizing Best and Worst(continued)Easy Payer Demographic• Higher income• 50% more likely to have net worth $500,000+• Likely to be a homeowner• 30% more likely to have a length of residence 12+ years
RITAARITAA is a model that predicts the likelihood a consumer willmeet a company’s chosen approval standards• RITAA scores are not built RITAA Non-Cumulative Indices using credit data and cannot be 300 Appr to Resp Index Resp to Mailed Index Net Resp (Appr to Mailed) used to determine credit worthiness 250 200 "Average" Index• Score 1 = Most likely to be 150 100 50 approved and least likely to respond 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29• Score 30 = Least likely to be RITAA Ranks approved and most likely to respond
RITAA: Non-Payers vs. Easy Payers Ranking Invitation to Apply Approvals 100% 80% 60% 40% 20% 0% 11 13 15 17 19 21 23 25 27 29 1 3 5 7 9 NON PAYS EASY PAYS • 50% of non-payers had a score of 21+ • 52% of easy payers had a RITAA score of 1–6
Consumer Prominence IndicatorConsumer Prominence Indicator (CPI) is designed torecognize consumer-related records for which the greatest orleast amount of database marketing data is available.
Consumer Prominence Indicator(continued) Consumer Prominence Index 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% st 0 3 5 7 9 t es le al rg Sm La Non-Pays Easy Pays • 50% of non-payers had a CPI score of 0–3 • 57% of easy-payers had a CPI score of 9–10
UnderBanked IndicatorUnderbanked Indicator is a model score that indicates the likelihood aconsumer has no formal banking relationships. Underbanked Indicator UnderBanked Indicator Index to Subscriber Base 400 300 200 100 - ed ed 10 12 14 16 18 2 4 6 8 nk nk ba Ba er Non-Pays Easy Pays nd U • Non-payers were over 3x more likely to be underbanked (score 01–03) • 51% of easy-payers had an UnderBanked score of 17–20
Locate Concentrations ofUnderbanked HouseholdsAtlanta, GA ZIP Codes Ranked by Index of Concentration for Underbanked HHs
UnderBanked at the DenverNewspaper AgencyDenver Newspaper Agency Denver Newspaper Agency UBI By ZIP Code™ In Marketdistribution of UBI scores ZIP Code Quantity 80219 - DENVER, CO 8,011possibly correlated with high 80205 - DENVER, CO 7,515 80204 - DENVER, CO 6,426single copy sales. 80010 - AURORA, CO 5,797 80211 - DENVER, CO 4,405 80239 - DENVER, CO 4,102 80207 - DENVER, CO 3,802 80011 - AURORA, CO 3,635 80022 - COMMERCE CITY, CO 3,574 80214 - DENVER, CO 2,997 80220 - DENVER, CO 2,750 80012 - AURORA, CO 2,622 80216 - DENVER, CO 2,361 80223 - DENVER, CO 2,304 80203 - DENVER, CO 2,156 80221 - DENVER, CO 2,142
Echelon Discretionary SpendingIndex (DSI)DSI is a continuous household-based score of 1–1000 thatmeasures levels of Affluence. The higher a household’sscore, the higher the spending ability or ability to consumeproducts.
DSI: Non-Payers vs. Easy Payers Discretionary Spending Index Index to Subscriber Base 300 200 100 - 0 00 0 0 0 0 0 <5 15 25 40 60 80 10 0- 0- 0- 0- 0- 0- 10 20 30 50 70 90 Non-Pays Easy Pays • Non-payers were twice as likely to have a DSI score of 200 or less • 50% of easy payers had a DSI score of 700+
Conclusions / Recommendations• Maximize advertising revenue and enhance the subscriber experience through Personicx• Train the Print and Delivery Teams early and OFTEN!• Gather case study ammunition• Test new data elements on your base for predicting non- pays and cross selling easy pays
Next Steps• Obtain a free Match Rate Report for: – Personicx – RITAA – CPI – UnderBanked Indicator – Echelon’s DSI• Receive this presentation by giving Allen Madoff your business card