Tech Talk with Quantcast: Meeting the Demands of Brands

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As brand budgets transition from TV to digital, audience guarantees and validation are becoming more commonplace. In a world where brands are seeking greater accountability, publishers must deliver in-target audiences with great efficiency and accuracy – using fewer impressions to reach a brand's target means overall inventory can be better monetized. With the availability of data and innovations in targeting, publishers now have a wealth of options to meet campaign needs. In this session we'll explore the ways in which publishers can take advantage of audience data to help meet guarantees and garner exceptional yield.

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  • Brands want to buy digital audiences the way they buy TV audiences.On TV, brands use GRPs and guaranteed audience demographic buyingBrand are turning to these same types of buys in an attempt to compare TV and digital using the same metricsNielsen Online Campaign Ratings is helping make this possible by lining up TV and digital audience measurement
  • Third-party audience validation services (e.g. Nielsen OCR, comScore vCE) are helping advertisers understand how many of their campaign impressions were delivered to the intended target audience.With audience validation services, publishers are held accountable for delivering every campaign impression to the advertiser’s target audience.Audience validation lets brands:Verify whether the ad was delivered “in target”Understand reach, frequency and GRPs for their campaignBuy audiences on a guaranteed basis
  • So we’d like to share with you a few things that we’ve learned about tactics that don’t work, and tactics that doQuantcast’s real-time advertising solutions have powered many brand campaignsAnd we’ve had the opportunity to measure campaign audiences using Nielsen Online Campaign RatingsTM.As a result, we’ve made some interesting observations on how data and technology can impact campaign performance in light of audience guarantees.Since it wouldn’t be a digital media conference without someone bashing the click, we’ll talk about the relationship between CTR and in-target deliveryAnd we’ll also talk about ways data can be used to improve accuracy, and the financial case for doing so
  • But we’re not just saying that, we’re going to prove itThese are demographic profiles from real Quantcast Advertise campaigns – one for an Online Retailer and another for an Insurance company.For these campaigns, we measured the demographic profiles of two groupsThe first group were people who clicked on the ads we servedThe second group were people who bought the products reflected in the ads after viewing the ads – regardless of clickI’m not going to walk through all of the numbers in detail – the shapes of these graphs speak for themselvesIt’s obvious that the online retailer’s primary audience are adults aged 25-44And it’s obvious that the most active clickers were aged 18-24 and over 65I’m really not sure how much more evidence we need
  • But because I feel like kicking the click when it’s down, we’ll keep goingRecently a Quantcast partner ran a brand-focused campaign targeted at Females 18-34That’s what the brand wantedAnd initially the results were great – 59% on-target delivery which is almost 5x the internet average for that demoBut then one day the agency called up and said they needed more clicksI see lots of shock and confusion on the faces in this crowd – I’m sure none of you have ever gotten that callAfter optimizing for CTR, we saw a result that was surprising to some, and not to othersIn target delivery dropped over a third – from 59% to only 38%So the brand reached significantly fewer people who were likely to buy from themAnd replaced them with people who click on ads all day long, but never buy a thing
  • Now let’s talk about an approach that does work – data.We’ll show you how that same Quantcast partner achieved that 59% result in the first placeFirst let’s look at some statistics about the target audience, Females 18-34According to Nielsen OCR, that’s about 12% of the US online universeAnd of all the campaigns Nielsen measured in 2012, the average on-target percentage was 33%Let’s say that differently – if you’re an advertiser targeting Females 18-34, in 2012, on average 2/3 of your impressions missed their targetThe Quantcast partner in this case study is a women’s lifestyle network, so they already over index in the target – 35%But using their female-focused content in combination with Quantcast’s Female 18-34 segment…They got 59% on target. That’s 69% higher than their non-targeted campaigns, and almost twice the average of all 2012 campaigns
  • Now, greater accuracy is nice, but it’s even better if it translates into meaningful revenueMany of the publishers and partners who work with us today are using our data with their instream video inventoryThat’s a high priced and scarce type of inventory – eMarketer says the average instream unit sells for $25 CPMSo here’s a scenario that’s pretty realistic – a 10 million impression campaign priced at $25Using the numbers from the case study we just showed you – without targeting, in order to deliver 10 million impressions in target:At 35% accuracy, that means delivering another 18.5 million impressions outside of the targetThat’s an extra $464K worth of inventoryMany publishers will try to raise the price in the face of these economicsBut using Quantcast targeting, in order to deliver 10 million impressions in target:At 59% accuracy, that reduces the extra impressions to a little under 7 millionThat reclaims $290K worth of inventory that can be sold to someone elseThese aren’t digital nickels and dimes. We’re talking about millions of dollars a year in efficiencies.
  • Those aren’t one-time results. We run these tests time and time again.When you’re trying to manage yield, you need the results to be repeatable, stable, and scalableAnd when measured against Nielsen OCR, Quantcast data is all of those thingsOur partners are using our demographic data to the tune of hundreds of millions of impressions per monthWithout sacrificing accuracy
  • Our demographic segments have an unmatched combination of scale and accuracy because of our unique web-wide visibility and powerful modeling capabilitiesHere’s how we put that data to workWe start with consumer examples from premium and known data sources – and we measure those consumers to understand what makes them uniqueWe compare those consumers against every single US internet user to draw meaningful, actionable insightsThose insights come together as our audience model, which we use to find many more people who are just like those example consumersAnd our technology works non-stop, dynamically updating audience segments to ensure they’re capturing the most up-to-date nuances of online audiencesFinally – we send that audience segment data to our publisher partner ad servers for targeting and forecasting
  • Tech Talk with Quantcast: Meeting the Demands of Brands

    1. 1. Quantcast Meeting the Demands of Brands - How To Make The Best Use of Data to Fulfill Audience Guarantees Presented by Matt Clark, Head of Global Publisher Development Quantcast
    2. 2. Brand Advertisers Want to Buy Digital the Way They Buy TV With TV, brands use GRPs and guaranteed audience buying to ensure reach against their target audience. DPS Miami 2013 As digital mediums take share from TV ad spend, brands are focusing on audience guarantees to ensure they’ve reached their target audience online. © Quantcast 2013
    3. 3. Now Trending: Audience Guarantees Audience guarantees let brands buy digital audiences the same way they buy TV audiences. Third-party audience validation services are making this possible. – Nielsen Online Campaign RatingsTM – comScore Validated Campaign EssentialsTM DPS Miami 2013 © Quantcast 2013
    4. 4. Lessons from the Data & Technology Deck As a result of the increased focus on accountability, data and targeting technology are playing a hugely important role for publishers. Observations from Quantcast brand campaigns measured by Nielsen Online Campaign RatingsTM: 1 Brands shouldn't focus on CTR 2 Accuracy = Revenue DPS Miami 2013 © Quantcast 2013
    5. 5. 1a. Clickers Have a Distinct Profile Insurance Online Retailer Clickers Converters Clickers Converters Source: Quantcast internal data © Quantcast 2013
    6. 6. 1b. CTR Optimization Doesn’t Work Audience Composition: F18-34* BEFORE CTR OPTIMIZATION AFTER CTR OPTIMIZATION 59% 38% Stellar results. Overall 69% lift in audience composition for F18-34. Composition of F18-34 drops. More impressions are served to Clickers. 36% decline in audience composition **Source: Nielsen Online Campaign Ratings, April 2013 © Quantcast 2013
    7. 7. 2. High Accuracy, Higher Audience Composition Audience Composition: F18-34* U.S. Online Universe Averages* On Women’s Lifestyle Network** U.S. online universe Other campaigns targeted to F18-34 Campaign with NO targeting Campaign with Quantcast F1834 segment 12% 33% 35% 59% 69% lift in audience composition 79% higher audience comp. vs. the average of other targeted campaigns * Source: Nielsen Online Campaign Ratings Benchmarks, 2012 ** Source: Nielsen Online Campaign Ratings, April 2013 © Quantcast 2013
    8. 8. 2b. Why Data & Targeting Accuracy Matter No Targeting With Targeting Monthly Campaign Impressions 10,000,000 10,000,000 Campaign Budget at $25 CPM $250,000 $250,000 Audience Composition: F18-34 35% 59% Impressions Needed to Meet Audience Guarantee 28,571,429 16,949,153 Impressions Wasted (not in-target) 18,571,429 6,949,153 Market Value of Wasted Impressions at $25 CPM Greater accuracy = more revenue for publishers. $464,286 $173,729 Impressions Saved 11,622,276 Market Value of Saved Impressions at $25 CPM $290,557 All figures are estimated. DPS Miami 2013 © Quantcast 2013
    9. 9. Consistent Results Across Inventory Sources Mass Media Publisher1 Leading Ad Network2 RTB4 F18-34 – Control (no targeting): 2% – Quantcast targeting: 23% – Uplift: 1050% M25-54 – Control (no targeting): 15% – Quantcast targeting: 43% – Uplift: 187% F18-24 – Control (no targeting): 8% – Quantcast targeting: 39% – Uplift: 388% M18-34 – Control (no targeting): 15% – Quantcast targeting: 39% – Uplift: 160% F35-54 – Control (no targeting): 7% – Quantcast targeting: 22% – Uplift: 214% F25-54 – Control (no targeting): 6% – Quantcast targeting: 45% – Uplift: 650% Sports News Publisher3 P18-34 – Control (no targeting): 41% – Quantcast targeting: 66% – Uplift: 61% M18-24 – Control (no targeting): 8% – Quantcast targeting: 37% – Uplift: 363% F25-54 – Control (no targeting): 25% – Quantcast targeting: 45% – Uplift: 80% M25-54 – Control (no targeting): 21% – Quantcast targeting: 48% – Uplift: 129% Sources: Nielsen Online Campaign Ratings,: 1) July 2013; 2) August 2013; 3) May 2013; 4) August 2013 DPS Miami 2013 © Quantcast 2013
    10. 10. Quantcast’s Approach to Delivering Accuracy High-value data assets Modeling of actual consumers against every single Internet user Data sent to publisher ad server for forecasting and targeting Detailed Demographics Offline Spend Data Advertiser Conversion Event DPS Miami 2013 © Quantcast 2013
    11. 11. Summary In a world where Publishers are accountable for intarget delivery and TV-like pricing structures are becoming more common, Publishers must: Use fewer impressions to deliver the desired target and increase yield, maintain revenue and meet audience guarantees. Choose partners with the right data and processing firepower to deliver accurate targeting for brand advertisers. Educate brands on how optimizing for clicks means reaching the wrong audience. DPS Miami 2013 © Quantcast 2013
    12. 12. Thank You Matt Clark Head of Global Publisher Development mclark@quantcast.com San Francisco 201 Third Street San Francisco, CA 94103 New York 432 Park Avenue South New York, NY 10016 London Ariel House 74 Charlotte Street London, W1T 4QJ Dublin Glandore Business Centres Fitzwilliam Hall Fitzwilliam Place Dublin 2 DPS Miami 2013 © Quantcast 2012

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