Behavioural Targeting: Audience based Advertising

Introduction What is behavioral targeting (BT)? Anonymously targeting web users based on observed previous behavior Behavioral Targeting is a rule based model - e.g. if user does x, present them with y – based on applying recency and frequency (RF) to consumer data acquired over time Recency: how recently a user has performed an action Frequency: how often a user has performed an action Behavioural Targeting works on the basis of three questions: Where are they? Where they before? What do they do? Behavioral Targeting is not a media buying model but an approach that assimilates technology, media, creative and customer insight to increase

What is behavioral targeting (BT)? Anonymously targeting web users based on observed previous behavior

Behavioral Targeting is a rule based model - e.g. if user does x, present them with y – based on applying recency and frequency (RF) to consumer data acquired over time

Recency: how recently a user has performed an action

Frequency: how often a user has performed an action

Behavioural Targeting works on the basis of three questions:

Where are they?

Where they before?

What do they do?

Behavioral Targeting is not a media buying model but an approach that assimilates technology, media, creative and customer insight to increase

Pro’s and Con’s of Behavioural Targeting Target people, not pages Narrowcasting as opposed to broadcasting Increase relevance of communications by marrying profiling, media and creative Standard model of is driven by c ontent-based advertising - traditional advertising’s obsession with editorial adjacency Extends the long tail of your communication, by shifting the focus from depth of content (e.g. New car section) to the depth of user’s consumption Advertisers currently direct 96 percent of online display adspend to just 30 percent of overall Web traffic Opportunities Challenges Need to distinguish between intent-based and a routine-based behaviors (recency is key) On-going optimization given the constant contraction and expansion of behavioral segments Requires dedicated investment in creative Front end targeting filters need to be matched with back-end creative assets Limited reach across certain industry verticals Only about 33.8% of websites in the US currently offer behavioural targeting * While up-lift in engagement rates will be high (click through) up-lift in conversion moderate Due to last click attribution rule * Source: OMMA Magazine August 2007

Target people, not pages

Narrowcasting as opposed to broadcasting

Increase relevance of communications by marrying profiling, media and creative

Standard model of is driven by c ontent-based advertising - traditional advertising’s obsession with editorial adjacency

Extends the long tail of your communication, by shifting the focus from depth of content (e.g. New car section) to the depth of user’s consumption

Advertisers currently direct 96 percent of online display adspend to just 30 percent of overall Web traffic

Need to distinguish between intent-based and a routine-based behaviors (recency is key)

On-going optimization given the constant contraction and expansion of behavioral segments

Requires dedicated investment in creative

Front end targeting filters need to be matched with back-end creative assets

Limited reach across certain industry verticals

Only about 33.8% of websites in the US currently offer behavioural targeting *

While up-lift in engagement rates will be high (click through) up-lift in conversion moderate

Due to last click attribution rule

Ways of delivering Behavioural Targeting While all forms of behavioural targeting are based on the same principle, there are different ways of delivering behavioural targeting Network e.g. Tacoda Ad Server e.g. Touch Clarity Computer e.g. uTarget Publisher e.g. Guardian

While all forms of behavioural targeting are based on the same principle, there are different ways of delivering behavioural targeting

How Behavioural Works

Publisher Based Individual publishers track and segments based on users 1) surfing behavior and/or 2) registration data Publishers implement third party targeting platforms (decision engine) - Point Dexter, Tacoma, Wunderloop, Revenue Science - into their ad inventory system Increase yield on existing ad inventory by creating custom segments – e.g. Silver Surfer Travel Enthusiasts Create new revenue streams by aggregating multiple streams of data The largest publishers offering behavioral targeting in the UK include: Yahoo, MSN, Lycos, Guardian, FT.com, OAG.com, CondeNast Traveller, Reuters, Associated New Media (travelmail.co.uk), EMAP, Channel 4

Individual publishers track and segments based on users 1) surfing behavior and/or 2) registration data

Publishers implement third party targeting platforms (decision engine) - Point Dexter, Tacoma, Wunderloop, Revenue Science - into their ad inventory system

Increase yield on existing ad inventory by creating custom segments – e.g. Silver Surfer Travel Enthusiasts

Create new revenue streams by aggregating multiple streams of data

The largest publishers offering behavioral targeting in the UK include:

Yahoo, MSN, Lycos, Guardian, FT.com, OAG.com, CondeNast Traveller, Reuters, Associated New Media (travelmail.co.uk), EMAP, Channel 4

Publisher Case Study Guardian unlimited, leveraging Revenue Science targeting platform provides a series of behavioral targeting options including: The content they have read The sections and pages that individuals visit on Guardian Unlimited and for the first time The words that appear on the pages they have read The number of relevant pages the have read How often they read these pages How recently they were reading those pages Registration data Registration data such as job title or seniority Frequency of visit The industry they work in Domain details FTSE 350 status

Guardian unlimited, leveraging Revenue Science targeting

platform provides a series of behavioral targeting options

including:

The content they have read

The sections and pages that individuals visit on Guardian Unlimited and for the first time

The words that appear on the pages they have read

The number of relevant pages the have read

How often they read these pages

How recently they were reading those pages

Registration data

Registration data such as job title or seniority

Frequency of visit

The industry they work in

Domain details

FTSE 350 status

Publisher Case Study Leveraging MSN Passport registration data, keyword search behavior, site visits and overall recency; MSN users are placed in specific travel segments: Hotel seekers Users that have shown an interest or looked for hotels Cruise seekers Users that have shown an interest or looked for cruises Airfare seekers Users that have shown an interest or looked for airfare

Leveraging MSN Passport registration data, keyword

search behavior, site visits and overall recency;

MSN users are placed in specific travel segments:

Hotel seekers

Users that have shown an interest or looked for hotels

Cruise seekers

Users that have shown an interest or looked for cruises

Airfare seekers

Users that have shown an interest or looked for airfare

Network Based Networks track and segments based on users aggregated from different sites based on their surfing behavior and click behavior Networks implement in-house or third party targeting platforms (decision engine) - Point Dexter, Tacoma, Wunderloop, Revenue Science - into their ad inventory system Increase yield or eCPM on brokered ad inventory by creating custom segments – e.g. Silver Surfer Travel Enthusiasts Create new revenue streams by aggregating multiple streams of data The largest networks offering behavioral targeting in the UK include: Tacoma, Drive PM, Adviva, Advertising.com

Networks track and segments based on users aggregated from different sites based on their surfing behavior and click behavior

Networks implement in-house or third party targeting platforms (decision engine) - Point Dexter, Tacoma, Wunderloop, Revenue Science - into their ad inventory system

Increase yield or eCPM on brokered ad inventory by creating custom segments – e.g. Silver Surfer Travel Enthusiasts

Create new revenue streams by aggregating multiple streams of data

The largest networks offering behavioral targeting in the UK include:

Tacoma, Drive PM, Adviva, Advertising.com

Publisher Case Study Tacoda leverages site visitation behavior of its users and sites against 350 behavioral segments (32 sub segments) Cookie is dropped when a user enters the Tacoda network of sites Identify behavior by analyzing the URL string User is profiled based on recent consumption 2 to 4 visits to relevant sites across a 30, 14 or 7 day period The sections and pages that individuals visit on Guardian Unlimited and for the first time Spectrum: run of behavioural network – run across all segments and optimise based on response (£1.50 CPM to £1.85) Audience Point: buy a specific segment or profile (£5 CPM - £10 CPM) – e.g. Business Travelers, Holidays Takers Spectrum + : run of behavioral network being optimized against Tacoda tag on the booking confirmation page

Tacoda leverages site visitation behavior of its users and

sites against 350 behavioral segments (32 sub segments)

Cookie is dropped when a user enters the Tacoda network of sites

Identify behavior by analyzing the URL string

User is profiled based on recent consumption

2 to 4 visits to relevant sites across a 30, 14 or 7 day period

The sections and pages that individuals visit on Guardian Unlimited and for the first time

Spectrum: run of behavioural network – run across all segments and

optimise based on response (£1.50 CPM to £1.85)

Audience Point: buy a specific segment or profile (£5 CPM - £10 CPM)

– e.g. Business Travelers, Holidays Takers

Spectrum + : run of behavioral network being optimized against

Tacoda tag on the booking confirmation page

Computer Based Track and segment users based on site visitation captured by application downloaded by user (opt-in ad software) into access device Application sends data to a server to create a historical profile; and uses this data to target content or advertising Focus is shifting from stand-alone “push” software/desktop applications to “pull” personalization engines Google Toolbar Claria Axon Depth of behavioral targeting is fairly limited – URL typed or search query (serve a standard or rich media pop-under) The largest providers include Zango and uTarget

Track and segment users based on site visitation captured by application downloaded by user (opt-in ad software) into access device

Application sends data to a server to create a historical profile; and uses this data to target content or advertising

Focus is shifting from stand-alone “push” software/desktop applications to “pull” personalization engines

Google Toolbar

Claria Axon

Depth of behavioral targeting is fairly limited – URL typed or search query (serve a standard or rich media pop-under)

The largest providers include Zango and uTarget

Publisher Case Study Utarget provides access to over 650 UK publishers delivering a series of rich media and standard Formats based on a series of criteria, captured through application including: Entry URL Exit URL Keyword searched Opportunity to serve a variety of ad formats based on users URL and search term consumption: Interstitial (between two pages of content) Pop Under (under browser window) Video Pop Under Flash Pop Under Landing Page Pop Under Customized strip on top of browser page

Utarget provides access to over 650 UK publishers

delivering a series of rich media and standard

Formats based on a series of criteria, captured through

application including:

Entry URL

Exit URL

Keyword searched

Opportunity to serve a variety of ad formats based on users

URL and search term consumption:

Interstitial (between two pages of content)

Pop Under (under browser window)

Video Pop Under

Flash Pop Under

Landing Page Pop Under

Customized strip on top of browser page

Ad-Server Segment and target users based on cookie data collected through 1) front-end ad server - e.g. ATLAS or 2) on-site based ad server - e.g. Omniture Ad or site interaction optimization Front-end ad server behavioral: leverage ad-serving platform data to serve inventory based on specific behavioral rules Build segments based on users interaction and serve a specific creative into existing ad inventory (free of charge) Re-targeting messaging Story Board messaging Site-end ad server behavioural: implement optimization engine (Touch Local ) into existing site analytics tool (Omniture) Deliver content and offers to users visiting Avis.co.uk on real-time and determined on their past behaviour

Segment and target users based on cookie data collected through 1) front-end ad server - e.g. ATLAS or 2) on-site based ad server - e.g. Omniture

Ad or site interaction optimization

Front-end ad server behavioral: leverage ad-serving platform data to serve inventory based on specific behavioral rules

Build segments based on users interaction and serve a specific creative into existing ad inventory (free of charge)

Re-targeting messaging

Story Board messaging

Site-end ad server behavioural: implement optimization engine (Touch Local ) into existing site analytics tool (Omniture)

Deliver content and offers to users visiting Avis.co.uk on real-time and determined on their past behaviour

Re-Targeting (Network or Ad Server) User visits bt.com/btvision Clicks on flash panel, with an embedded 1x1 ad-server pixel (used to track conversions and serve ads) Action tag cookies user based on behaviour defined Site B Cookie ID appears within 1) a site part of the media BT Vision plan or 2) ad network Segment criteria identified User served bespoke BT Vision ad relative to their previous declared interest User: 1 st session Same user: new session Site A Site C … .site x Cookied user meets segment criteria e.g. Clicked on Movie panel but did not book Segment 1 Segment 2 Segment 3

User visits bt.com/btvision

Clicks on flash panel, with an embedded 1x1 ad-server pixel (used to track conversions and serve ads)

Action tag cookies user based on behaviour defined

Cookie ID appears within 1) a site part of the media BT Vision plan or 2) ad network

Segment criteria identified

User served bespoke BT Vision ad relative to their previous declared interest