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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… <ul><li>Primary and secondary goals:  today’s display advertising market, and how that affects a...
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...
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 i...
Content  targeting is a time-honored method that has key benefits <ul><li>Content targeting elements: </li></ul><ul><li>Mo...
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 <ul><li>Demographic targeting elements: </li></ul><ul><li>T...
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 <ul><li>Behavorial targeting elements: </li></ul><ul><...
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 <ul><li>Contextual targeting elements: </li></ul><ul><li>Also cal...
Holly Dunn, vice president of digital, Draftfcb “ We use look-alike modeling. It’s basically saying that  we know that our...
Look-alike  targeting creates new segments from new data gathered <ul><li>Look-alike elements: </li></ul><ul><li>Interacti...
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 <ul><li>Retargeting elements: </li></ul><ul><li>Intent shown: ...
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 ord...
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 <ul><li>First-party (shared):  information that visitors provide directly to the site; often seen a...
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 ...
Three streams, mainly from FB and Twitter, flow into the  social data  pool <ul><li>The social graph:  shows who is connec...
Emily Iverson, director of display, Booyah Online Advertising “ We look at a user’s social circle…to find their friends an...
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 <ul><li>Traditional approach:  use based on how marketers cat...
Carl Fremont, global media director, Digitas “ Most audience  modeling is done up front , and then you’re just refining it...
John Shea, vice president of strategy, Rimm-Kaufman Group “ Overall we do an array of targeting and just  let the data gui...
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 <ul><li>what  segments  to target </li></ul><ul>...
Holly Dunn, vice president of digital, Draftfcb “ We test a lot when we begin all of our campaigns. So we have a  two- to ...
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 languag...
Giving users  opt-out control  is not unlike value exchange for prime data
Conclusions
<ul><li>Starting with secondary  goals  can lead to targeting choices. </li></ul><ul><li>Consider the importance of  reach...
Online Data Targeting
Optimizing Media Drives Higher CTR Media Optimization Percentage of Campaigns that Performed Above Baseline 34% 80% Audien...
Content is (Still) King Improving CPA with Media Optimization Cost-Per-Action
Applying Targeting & Optimization Goals Establish and Communicate Campaign Goals Leverage Historical Performance & Targeti...
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 includ...
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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 message.

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

  1. 1. 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:
  2. 2. What we’ll look at today… <ul><li>Primary and secondary goals: today’s display advertising market, and how that affects a marketer’s goals and approach </li></ul><ul><li>Targeting’s place in the scheme of things: how it helps greatly and reasons not to rely on it entirely </li></ul><ul><li>Choices for targeting tactics: at least 16 ways to target, and how they might fit into your marketing goals </li></ul><ul><li>Data types and sources: several pros and cons for getting and using data </li></ul><ul><li>Testing and measuring: ways to build targeted display campaigns interactively </li></ul><ul><li>Audience attitudes: how they influence data collection and advertising’s relevancy </li></ul>Twitter – #eMwebinar
  3. 3. Marketing Goals, Targeting’s Purpose (hint: the goal isn’t targeting)
  4. 4. Display ad spending includes: • banners • rich media • sponsorship • video
  5. 5. Over one-third of marketers cited improving segmentation and ad targeting among their leading priorities
  6. 6. Relevancy is key when marketers look to influence an engaged , if often diverse, audience
  7. 7. Publishers sell slightly more targeted ads for branding than for direct response
  8. 8. 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
  9. 9. Data supports targeting, which supports strategic goals, which supports ROI Data Targeting Goals $$$
  10. 10. But to get to a company’s real goals means building the pyramid top down $$$ Goals Targeting Data
  11. 11. Let’s look more deeply at the concept of targeting and several of its implications
  12. 12. Shawn Riegsecker, president, Centro “ When it comes to audience targeting, close enough is all you need.”
  13. 13. The holes in various targeting concepts are due to technology and its usage
  14. 14. Targeting Types (and ways to blend them)
  15. 15. Top level: About 30% of advertisers cite content targeting as most important vs. the 70% who favor audience targeting
  16. 16. 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 .”
  17. 17. Content targeting is a time-honored method that has key benefits <ul><li>Content targeting elements: </li></ul><ul><li>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 </li></ul><ul><li>Often high-end online: the bulk of premium display ad space is bought with content targeting in mind </li></ul><ul><li>Appeals to: brand marketers are accustomed to using content as proxy for the audience they’re trying to reach </li></ul><ul><li>When it’s effective: supports the brand marketer’s desire to be associated with high-quality websites and trusted content </li></ul><ul><li>Caveat: some believe that content as a stand-in for the actual audience is an inexact form of targeting </li></ul>Twitter – #eMwebinar
  18. 18. Both content and audience are equally important for online brand campaigns
  19. 19. There are at least 16 different types of ad targeting, often used in tandem
  20. 20. Audience-focused ad targeting depends most highly on these methods
  21. 21. Content-oriented ad targeting depends more so on these methods
  22. 22. Used the most: three basic targeting techniques
  23. 23. Another study: demographic and behavioral targeting most important
  24. 24. Demographic data supports most forms of audience segmentation <ul><li>Demographic targeting elements: </li></ul><ul><li>Timeless: slices up the audience by elements such as gender, age, income and education </li></ul><ul><li>Flexible: also includes categories such as moms or dads, race and ethnicity </li></ul><ul><li>Easily obtained: among the most freely given data types </li></ul><ul><li>When it’s effective: enhances nearly all other types of targeting by better identifying the audience </li></ul><ul><li>Caveat: still a proxy method, because all the people of any group rarely have similar desires </li></ul><ul><li>Also: following demographic cues can cause marketers to miss out on other groups that would be open to their pitch </li></ul>Twitter – #eMwebinar
  25. 25. However, US mobile advertising , still emergent, leans toward demographic and geographic targeting, less so behavioral
  26. 26. Targeting by behavior is a wide-ranging way to reach the audience <ul><li>Behavorial targeting elements: </li></ul><ul><li>Profiles audience segments: marketers identify the segments of people they’re looking to reach based on what groups of users have done recently </li></ul><ul><li>Behavior broadly defined: based on some kind of activity, including content viewed, forms filled out and search queries </li></ul><ul><li>When it’s effective: turns generic or remnant display inventory into something akin to good contextual placements </li></ul><ul><li>Also: many large publishers offer premium inventory on their sites for targeting by audience behaviors </li></ul><ul><li>Caveat: a portion of the inventory sold for behavioral targeting is not brand-safe, since the context cannot be fully vetted </li></ul>Twitter – #eMwebinar
  27. 27. About one-third of marketers cite data-driven behavioral targeting as a main focus of their entire digital strategy
  28. 28. While behavioral most cited for video ad targeting, contextual strong too
  29. 29. Targeting by context can help find an engaged audience <ul><li>Contextual targeting elements: </li></ul><ul><li>Also called keyword targeting: uses text or other content data, such as page meaning, to automatically place display ads (other types of ads, too) </li></ul><ul><li>Cost-effective: a useful way for both brand and direct response marketers to reach an audience that indicates interest in a related topic </li></ul><ul><li>When it’s effective: gives marketers some of the benefits of content targeting but with the speed of programmatic buying </li></ul><ul><li>Caveat: just as with content targeting, contextual is often considered a proxy for finding specific, interested audiences </li></ul><ul><li>Also: the technology sometimes fails in discerning the exact context and gives poor, sometimes embarrassing, placement </li></ul>Twitter – #eMwebinar
  30. 30. 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.”
  31. 31. Look-alike targeting creates new segments from new data gathered <ul><li>Look-alike elements: </li></ul><ul><li>Interactive: builds new segments that are similar to what marketers have discovered from previous target responders </li></ul><ul><li>Data source: generates statistical models based on first-party advertiser data, e.g., website visitors or offline purchasers </li></ul><ul><li>Expands: can also segment based on psychographics —groups based on qualities such as personality, locale, values, spending patterns, attitudes, interests and lifestyles </li></ul><ul><li>When it’s effective: highly useful for finding audience groups that are liable to find display ads relevant </li></ul><ul><li>Caveat: problems with scale can arise, especially for niche offerings where the look-alike pool can be small </li></ul>Twitter – #eMwebinar
  32. 32. Look-alike targeting seems to promise exact and happy matches
  33. 33. Actual look-alikes are close, same group, but not exact (really another proxy)
  34. 34. Retargeting used more and more to find an engaged audience <ul><li>Retargeting elements: </li></ul><ul><li>Intent shown: serves display ads to an audience that has already indicated interest in the marketer’s offerings </li></ul><ul><li>Useful for multiple goals: can be highly effective for direct-response goals—and even some brand messaging </li></ul><ul><li>Search retargeting: marketers target the audience with display ads, typically banners, using search keyword data </li></ul><ul><li>When it’s effective: highly effective at conversions; can also give additional reach for brands using video advertising </li></ul><ul><li>Also: search retargeting works best with marketers’ own data </li></ul><ul><li>Caveat: can waste spending if the audience would have converted anyway without the display ad </li></ul>Twitter – #eMwebinar
  35. 35. Most publishers offer marketers some form of retargeting
  36. 36. Accurate retargeting a prime reason for audience response
  37. 37. Genny Drennen, media director, Fraser Communications “ We may do display retargeting off of a pre-roll video view in order to get additional frequency.”
  38. 38. Retargeting for video, for branding , a common and growing niche technique
  39. 39. Increasingly, marketers see the most effective ad targeting blends methods
  40. 40. Increasingly, marketers see the most effective ad targeting blends methods
  41. 41. Gathering and Using Data (gold, silver, bronze)
  42. 42. Data is the gold standard , the new black, etc., for online marketing
  43. 43. Four basic data types <ul><li>First-party (shared): information that visitors provide directly to the site; often seen as the most valuable form of data </li></ul><ul><li>First-party (server): information gathered about visitor activities using cookies and web analytic tools </li></ul><ul><li>Second-party: information obtained through partner companies, such as registration data </li></ul><ul><li>Third-party: information that vendors develop through each company’s proprietary blend of offline and first-party data </li></ul>Twitter – #eMwebinar
  44. 44. Most of the types of data used to improve marketing also help perfect targeting
  45. 45. One way to obtain high-quality first-party data is by asking and giving , making the trade-off clear
  46. 46. Some of the most important data for behavioral targeting also needs to tie into a company’s systems
  47. 47. 65% of marketers say data about visitor behavior is only somewhat effective
  48. 48. Jaffer Ali, chief executive officer, Vidsense “ If you are a marketer, you must understand the limitations of historical data .”
  49. 49. Three streams, mainly from FB and Twitter, flow into the social data pool <ul><li>The social graph: shows who is connected with whom and their various activities; can be especially useful for behavioral-type audience targeting </li></ul><ul><li>Brand followers: similar to registration data on media, brand or retail websites, in that it’s detailed information voluntarily given </li></ul><ul><li>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 </li></ul>Twitter – #eMwebinar
  50. 50. 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.”
  51. 51. Giving value to audience for their data is highlighted in the social space
  52. 52. At its most effective, social data lets marketers connect the dots in their target audience
  53. 53. Social-site data marketers get from fans may not always work well for targeting
  54. 54. As marketers gather data, they can use it in two main ways <ul><li>Traditional approach: use based on how marketers categorize their target audience prior to running the ad campaign </li></ul><ul><li>Interactive approach: use based on an ongoing analysis of who responds in some way after the ads have run </li></ul>Twitter – #eMwebinar
  55. 55. Carl Fremont, global media director, Digitas “ Most audience modeling is done up front , and then you’re just refining it with further insight.”
  56. 56. 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. 57. 57% of advertisers and 53% of agencies said 2 or 3 targeting segments are optimal
  58. 58. Testing and Measuring (creating better results)
  59. 59. Nearly every detail involved in display advertising is ripe for testing <ul><li>what segments to target </li></ul><ul><li>what targeting techniques to use </li></ul><ul><li>where and how to obtain data </li></ul><ul><li>what types of data work best </li></ul><ul><li>which display ad format(s) to use, and where </li></ul><ul><li>through what channel to buy ad inventory </li></ul><ul><li>what elements to put into the ad creative </li></ul><ul><li>what call to action is most effective </li></ul>Twitter – #eMwebinar
  60. 60. 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.”
  61. 61. Only a minority of companies say that testing tactics are very effective
  62. 62. Measuring a tested campaign makes the next round of advertising more effective
  63. 63. Measured results from prior campaigns are a top source for improved targeting
  64. 64. What Gets the Audience’s Attention (and what loses it)
  65. 65. More targeting has produced more relevancy, but still more is needed
  66. 66. The audience tends to drop out or tune out if ads aren’t relevant
  67. 67. Internet users regularly contradict themselves about their desire for advertising relevance
  68. 68. User attitudes about tracking create significant limits for targeting
  69. 69. Most people simply do not want to be tracked, to have their data collected, or to be targeted ( perhaps it’s the language )
  70. 70. Giving users opt-out control is not unlike value exchange for prime data
  71. 71. Conclusions
  72. 72. <ul><li>Starting with secondary goals can lead to targeting choices. </li></ul><ul><li>Consider the importance of reach vs. deeper engagement . </li></ul><ul><li>Where do you want to be in the marketing funnel ? </li></ul><ul><li>A blend of targeting techniques creates more accurate segments. </li></ul><ul><li>Targeting gives marketers only so much audience information. </li></ul><ul><li>Better, more accurate data tends to cost more (caveat emptor). </li></ul><ul><li>Data from social sites offers useful segments, but might be overrated. </li></ul><ul><li>Testing gives marketers a broader array of measurable results. </li></ul><ul><li>Relevancy is the audience bottom line. </li></ul><ul><li>But audience resistance to being tracked or having their data collected can reduce targeting’s effectiveness. </li></ul>Conclusions: Targeting helps reach the right audience
  73. 73. Online Data Targeting
  74. 74. Optimizing Media Drives Higher CTR Media Optimization Percentage of Campaigns that Performed Above Baseline 34% 80% Audience Optimization
  75. 75. Content is (Still) King Improving CPA with Media Optimization Cost-Per-Action
  76. 76. Applying Targeting & Optimization Goals Establish and Communicate Campaign Goals Leverage Historical Performance & Targeting Data Deliver Campaign and Generate Reporting Monitor Performance & Adjust Targeting Techniques
  77. 77. Thank You Jared M. Skolnick VP, Product Marketing [email_address]
  78. 78. 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.
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