eMarketer Webinar: Reaching the Right Audience—Ad Targeting Trends
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eMarketer Webinar: Reaching the Right Audience—Ad Targeting Trends

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Join eMarketer Principal Analyst David Hallerman as he explains how getting through to those interested in a marketer’s pitch demands a blend of the right audience, the right medium and the right ...

Join eMarketer Principal Analyst David Hallerman as he explains how getting through to those interested in a marketer’s pitch demands a blend of the right audience, the right medium and the right message.

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    eMarketer Webinar: Reaching the Right Audience—Ad Targeting Trends eMarketer Webinar: Reaching the Right Audience—Ad Targeting Trends Presentation Transcript

    • David Hallerman Principal Analyst O C T O B E R 1 3, 2 0 1 1 Reaching the Right Audience—Ad Targeting Trends Sponsored by:
    • What we’ll look at today…
      • Primary and secondary goals: today’s display advertising market, and how that affects a marketer’s goals and approach
      • Targeting’s place in the scheme of things: how it helps greatly and reasons not to rely on it entirely
      • Choices for targeting tactics: at least 16 ways to target, and how they might fit into your marketing goals
      • Data types and sources: several pros and cons for getting and using data
      • Testing and measuring: ways to build targeted display campaigns interactively
      • Audience attitudes: how they influence data collection and advertising’s relevancy
      Twitter – #eMwebinar
    • Marketing Goals, Targeting’s Purpose (hint: the goal isn’t targeting)
    • Display ad spending includes: • banners • rich media • sponsorship • video
    • Over one-third of marketers cited improving segmentation and ad targeting among their leading priorities
    • Relevancy is key when marketers look to influence an engaged , if often diverse, audience
    • Publishers sell slightly more targeted ads for branding than for direct response
    • Jacob Shin, director of online marketing, Savings.com “ Our primary goal is, like most companies, twofold. One is create brand awareness and then, secondly, is to drive conversion.” Twitter – #eMwebinar
    • Data supports targeting, which supports strategic goals, which supports ROI Data Targeting Goals $$$
    • But to get to a company’s real goals means building the pyramid top down $$$ Goals Targeting Data
    • Let’s look more deeply at the concept of targeting and several of its implications
    • Shawn Riegsecker, president, Centro “ When it comes to audience targeting, close enough is all you need.”
    • The holes in various targeting concepts are due to technology and its usage
    • Targeting Types (and ways to blend them)
    • Top level: About 30% of advertisers cite content targeting as most important vs. the 70% who favor audience targeting
    • Shawn Riegsecker, president, Centro “ For brands, content as a proxy for audience and making sure their brand is shown in the right environment is critically important. To lower-tier, direct-response-only types of clients, content is meaningless .”
    • Content targeting is a time-honored method that has key benefits
      • Content targeting elements:
      • Most traditional type: matches the content on the page with the expected audience for such content; think sports content, males 18 to 35 and beer
      • Often high-end online: the bulk of premium display ad space is bought with content targeting in mind
      • Appeals to: brand marketers are accustomed to using content as proxy for the audience they’re trying to reach
      • When it’s effective: supports the brand marketer’s desire to be associated with high-quality websites and trusted content
      • Caveat: some believe that content as a stand-in for the actual audience is an inexact form of targeting
      Twitter – #eMwebinar
    • Both content and audience are equally important for online brand campaigns
    • There are at least 16 different types of ad targeting, often used in tandem
    • Audience-focused ad targeting depends most highly on these methods
    • Content-oriented ad targeting depends more so on these methods
    • Used the most: three basic targeting techniques
    • Another study: demographic and behavioral targeting most important
    • Demographic data supports most forms of audience segmentation
      • Demographic targeting elements:
      • Timeless: slices up the audience by elements such as gender, age, income and education
      • Flexible: also includes categories such as moms or dads, race and ethnicity
      • Easily obtained: among the most freely given data types
      • When it’s effective: enhances nearly all other types of targeting by better identifying the audience
      • Caveat: still a proxy method, because all the people of any group rarely have similar desires
      • Also: following demographic cues can cause marketers to miss out on other groups that would be open to their pitch
      Twitter – #eMwebinar
    • However, US mobile advertising , still emergent, leans toward demographic and geographic targeting, less so behavioral
    • Targeting by behavior is a wide-ranging way to reach the audience
      • Behavorial targeting elements:
      • Profiles audience segments: marketers identify the segments of people they’re looking to reach based on what groups of users have done recently
      • Behavior broadly defined: based on some kind of activity, including content viewed, forms filled out and search queries
      • When it’s effective: turns generic or remnant display inventory into something akin to good contextual placements
      • Also: many large publishers offer premium inventory on their sites for targeting by audience behaviors
      • Caveat: a portion of the inventory sold for behavioral targeting is not brand-safe, since the context cannot be fully vetted
      Twitter – #eMwebinar
    • About one-third of marketers cite data-driven behavioral targeting as a main focus of their entire digital strategy
    • While behavioral most cited for video ad targeting, contextual strong too
    • Targeting by context can help find an engaged audience
      • Contextual targeting elements:
      • Also called keyword targeting: uses text or other content data, such as page meaning, to automatically place display ads (other types of ads, too)
      • Cost-effective: a useful way for both brand and direct response marketers to reach an audience that indicates interest in a related topic
      • When it’s effective: gives marketers some of the benefits of content targeting but with the speed of programmatic buying
      • Caveat: just as with content targeting, contextual is often considered a proxy for finding specific, interested audiences
      • Also: the technology sometimes fails in discerning the exact context and gives poor, sometimes embarrassing, placement
      Twitter – #eMwebinar
    • Holly Dunn, vice president of digital, Draftfcb “ We use look-alike modeling. It’s basically saying that we know that our target responders happen to look like this and, therefore, we can target other people who look like that.”
    • Look-alike targeting creates new segments from new data gathered
      • Look-alike elements:
      • Interactive: builds new segments that are similar to what marketers have discovered from previous target responders
      • Data source: generates statistical models based on first-party advertiser data, e.g., website visitors or offline purchasers
      • Expands: can also segment based on psychographics —groups based on qualities such as personality, locale, values, spending patterns, attitudes, interests and lifestyles
      • When it’s effective: highly useful for finding audience groups that are liable to find display ads relevant
      • Caveat: problems with scale can arise, especially for niche offerings where the look-alike pool can be small
      Twitter – #eMwebinar
    • Look-alike targeting seems to promise exact and happy matches
    • Actual look-alikes are close, same group, but not exact (really another proxy)
    • Retargeting used more and more to find an engaged audience
      • Retargeting elements:
      • Intent shown: serves display ads to an audience that has already indicated interest in the marketer’s offerings
      • Useful for multiple goals: can be highly effective for direct-response goals—and even some brand messaging
      • Search retargeting: marketers target the audience with display ads, typically banners, using search keyword data
      • When it’s effective: highly effective at conversions; can also give additional reach for brands using video advertising
      • Also: search retargeting works best with marketers’ own data
      • Caveat: can waste spending if the audience would have converted anyway without the display ad
      Twitter – #eMwebinar
    • Most publishers offer marketers some form of retargeting
    • Accurate retargeting a prime reason for audience response
    • Genny Drennen, media director, Fraser Communications “ We may do display retargeting off of a pre-roll video view in order to get additional frequency.”
    • Retargeting for video, for branding , a common and growing niche technique
    • Increasingly, marketers see the most effective ad targeting blends methods
    • Increasingly, marketers see the most effective ad targeting blends methods
    • Gathering and Using Data (gold, silver, bronze)
    • Data is the gold standard , the new black, etc., for online marketing
    • Four basic data types
      • First-party (shared): information that visitors provide directly to the site; often seen as the most valuable form of data
      • First-party (server): information gathered about visitor activities using cookies and web analytic tools
      • Second-party: information obtained through partner companies, such as registration data
      • Third-party: information that vendors develop through each company’s proprietary blend of offline and first-party data
      Twitter – #eMwebinar
    • Most of the types of data used to improve marketing also help perfect targeting
    • One way to obtain high-quality first-party data is by asking and giving , making the trade-off clear
    • Some of the most important data for behavioral targeting also needs to tie into a company’s systems
    • 65% of marketers say data about visitor behavior is only somewhat effective
    • Jaffer Ali, chief executive officer, Vidsense “ If you are a marketer, you must understand the limitations of historical data .”
    • Three streams, mainly from FB and Twitter, flow into the social data pool
      • The social graph: shows who is connected with whom and their various activities; can be especially useful for behavioral-type audience targeting
      • Brand followers: similar to registration data on media, brand or retail websites, in that it’s detailed information voluntarily given
      • Real-time data: gives marketers insight into trends and attitudes about products, places and people; more helpful for creating content and contextual ad targeting models than directly for audience targeting
      Twitter – #eMwebinar
    • Emily Iverson, director of display, Booyah Online Advertising “ We look at a user’s social circle…to find their friends and family and people who look like them out in the social world and then go ahead and target them.”
    • Giving value to audience for their data is highlighted in the social space
    • At its most effective, social data lets marketers connect the dots in their target audience
    • Social-site data marketers get from fans may not always work well for targeting
    • As marketers gather data, they can use it in two main ways
      • Traditional approach: use based on how marketers categorize their target audience prior to running the ad campaign
      • Interactive approach: use based on an ongoing analysis of who responds in some way after the ads have run
      Twitter – #eMwebinar
    • Carl Fremont, global media director, Digitas “ Most audience modeling is done up front , and then you’re just refining it with further insight.”
    • John Shea, vice president of strategy, Rimm-Kaufman Group “ Overall we do an array of targeting and just let the data guide us to what works best.”
    • 57% of advertisers and 53% of agencies said 2 or 3 targeting segments are optimal
    • Testing and Measuring (creating better results)
    • Nearly every detail involved in display advertising is ripe for testing
      • what segments to target
      • what targeting techniques to use
      • where and how to obtain data
      • what types of data work best
      • which display ad format(s) to use, and where
      • through what channel to buy ad inventory
      • what elements to put into the ad creative
      • what call to action is most effective
      Twitter – #eMwebinar
    • Holly Dunn, vice president of digital, Draftfcb “ We test a lot when we begin all of our campaigns. So we have a two- to three-week test-and-learn period where we validate our target , the message, and the environment that we’re running in.”
    • Only a minority of companies say that testing tactics are very effective
    • Measuring a tested campaign makes the next round of advertising more effective
    • Measured results from prior campaigns are a top source for improved targeting
    • What Gets the Audience’s Attention (and what loses it)
    • More targeting has produced more relevancy, but still more is needed
    • The audience tends to drop out or tune out if ads aren’t relevant
    • Internet users regularly contradict themselves about their desire for advertising relevance
    • User attitudes about tracking create significant limits for targeting
    • Most people simply do not want to be tracked, to have their data collected, or to be targeted ( perhaps it’s the language )
    • Giving users opt-out control is not unlike value exchange for prime data
    • Conclusions
      • Starting with secondary goals can lead to targeting choices.
      • Consider the importance of reach vs. deeper engagement .
      • Where do you want to be in the marketing funnel ?
      • A blend of targeting techniques creates more accurate segments.
      • Targeting gives marketers only so much audience information.
      • Better, more accurate data tends to cost more (caveat emptor).
      • Data from social sites offers useful segments, but might be overrated.
      • Testing gives marketers a broader array of measurable results.
      • Relevancy is the audience bottom line.
      • But audience resistance to being tracked or having their data collected can reduce targeting’s effectiveness.
      Conclusions: Targeting helps reach the right audience
    • Online Data Targeting
    • Optimizing Media Drives Higher CTR Media Optimization Percentage of Campaigns that Performed Above Baseline 34% 80% Audience Optimization
    • Content is (Still) King Improving CPA with Media Optimization Cost-Per-Action
    • Applying Targeting & Optimization Goals Establish and Communicate Campaign Goals Leverage Historical Performance & Targeting Data Deliver Campaign and Generate Reporting Monitor Performance & Adjust Targeting Techniques
    • Thank You Jared M. Skolnick VP, Product Marketing [email_address]
    • Reaching the Right Audience—Ad Targeting Trends Questions & Answers Registrants will receive an email tomorrow that includes a link to view the deck and webinar recording. For more discussion, please join us after the webinar on LinkedIn. Search for the eMarketer Group and click on Discussions. To learn about eMarketer Total Access please visit www.emarketer.com/products or contact us: (800) 405-0844 or [email_address] Twitter Hashtag: #eMwebinar Sponsored by : Presented by: David Hallerman Principal Analyst, eMarketer, Inc.