Introduction to Behavioural Marketing & Advertising

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

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

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

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

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

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

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

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

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

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Introduction to Behavioural Marketing & Advertising

by Web Liquid on Feb 06, 2008

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Introduction to Behavioural Marketing & Advertising — Presentation Transcript