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Addressable display advertising

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The range of media by which consumers can be addressed directly has gradually evolved over recent years. The latest arrival – addressable display advertising – is possibly the most revolutionary of …

The range of media by which consumers can be addressed directly has gradually evolved over recent years. The latest arrival – addressable display advertising – is possibly the most revolutionary of all.
• What new audience targeting options are now available?
• What are the implications for influencing mixed mode channel switching behaviours by tracking behaviours across channels?

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  • 1. The next revolution inmulti-channel marketing?Briefing PaperAddressable Display AdvertisingBriefing Paper by Paul Kennedy at Callcredit Marketing Solutions
  • 2. // Briefing Paper// 01 // www.callcredit.co.ukPaul has been working in the marketingindustry for 15 years+. Since joining Callcreditin 2006, he has been instrumental indeveloping Callcredit’s planning, digital andsocial marketing capabilities and deliveringit with clients across a number of sectorsincluding leisure, media, retail, financialservices and utilities.Paul is a frequent speaker within the industryand has published a number of white papersrecently covering social and digital marketing.IdeasVisionSuccessDevelopmentPragmatic
  • 3. © 2013 Callcredit Information Group Ltd. All rights reserved// www.callcredit.co.uk // Briefing Paper // 02
  • 4. The range of media by which consumerscan be addressed directly has graduallyevolved over recent years. The latestarrival – addressable display advertising –is possibly the most revolutionary of all.• What new audience targeting options are now available?• What are the implications for influencing mixed mode channel switching behaviours by tracking behaviours across channels?This paper looks at opportunities nowcreated for brands in the UK.Most companies are attempting anintegrated approach to marketing acrossowned websites, email, paid advertising,SEO and social, with email and web beingthe easiest and therefore most commonlyintegrated channels. The recent arrival ofaudience targeting technologies such asreal time bidding platforms means thatsignificant new opportunities are availablefor marketers to boost the performanceof existing marketing campaigns byadding a new direct channel – displayadvertising.Over the last 20 years we have seena steady proliferation of marketingchannels. The introduction of this latestone is not the end but rather a signof things to come digitally. This paperconsiders a planning approach that can beused to create multi-channel campaigns– now or in the future. The recognitionof data’s role in marketing is now firmlyestablished (some1even describe it as “…the Sexiest Job of the 21st Century…”)so the addition of another data drivenchannel into the marketing mix is goodnews for marketers.Whilst the opportunity to use data to drivebetter multi-channel marketing is clearlythere, Callcredit research has shown thatonly a minority of respondents describetheir marketing as integrated acrosschannels. Equally, Econsultancy researchfound that over two thirds of clients haveonly an ‘okay’ or ‘poor’ understandingabout the potential of digital channels(email, search, social media, etc.) to helpgrow their business. To make mattersworse, channel budgets are often held asseparate entities, eg one person owningthe display budget and another email.© 2013 Callcredit Information Group Ltd. All rights reservedAddressable Display Advertising:The next revolution in multi-channel marketing?// Briefing Paper// 03 // www.callcredit.co.ukRequest the White Paper -Coordinating Customer Channels:http://www.callcredit.co.uk/coordinating-customer-channels
  • 5. The audience targeting industry hasquickly evolvedDisplay advertising first enjoyed successduring the late 1990s at the height ofthe dot com boom. Along came keywordbased advertising and by 2005, focusshifted from display to PPC, whichmarketers felt gave control over whereads were displayed. The emergence of theAd exchange over the following five yearswas a sign that display was reinventingitself by giving advertisers better accessto advertising inventory. Over thefollowing years, some of these exchanges(such as Turn and Google’s DoubleclickAd Exchange and the later purchase ofInviteMedia also by Google) evolved into‘demand side platforms’ (DSPs) givingbrands the ability to target messages tospecific audiences.// www.callcredit.co.uk // Briefing Paper // 04© 2013 Callcredit Information Group Ltd. All rights reserved
  • 6. // Briefing Paper// 05 // www.callcredit.co.ukIn the last couple of years we have seenthe emergence of a cottage industry ofintermediaries across the advertiser-consumer value chain: a far cry from thesimple advertiser-ad exchange-publishermodel. The result of this is that acomplicated array of moving parts have towork in close unison to deliver marketingmessages to consumers.To further complicate matters, we arenow seeing the emergence of privateexchanges (such as eBay’s UK exchange2and Facebook Ad Exchange) as majorpublishers attempt to take back someof the control from advertisers, allowingonly specified advertisers to purchaseinventory using pricing structuresdepending on the advertiser in return forknown quality, brand safe environments.Traditionally, display advertising could onlybe targeted using high level consumersegments. Whilst context and behaviouraltargeting techniques have a role to play(eg for retargeting unconverted sitevisitors), the emergence of Real TimeBidding (RTB) and Data ManagementPlatforms (DMP) now offer marketers achance to implement audience-basedmarketing programs i.e. to whom. Opaqueand sluggish ad networks are beingreplaced with programmatic enabledmedia buying that includes transparent,real-time biddable media and precisionaudience targeting.These techniques are really catching on;according to Forrester, impressions, willshift toward programmatic exchange-based trading at a rate of 43% annuallybetween 2012 and 2017, comprising30% of total display spending by 2017.Many attribute this to high conversationrates, competitive pricing and easeof incorporation into multi-channelcampaigns. We’re already seeing somesurprising trends. Just look at whathappened3on the last Black Friday inthe USA - spend on ‘Real Time Bidding’advertising (ads bought and served on thefly) was driven not by online retailers butrather by brands looking to drive bricksand mortar awareness. Impressions werecommanding four bids per ad compared toa comparable average of about half that.Everyone wanted the right audience atthat exact time to maximise the numbertransacting on the target day.RTB technology allowsthe publisher to decidewhich ad to serve to anyuser. Advertisers bid forimpressions and the highestbidder gets the placement.Advertisers decide whichusers to buy using targetingdata – such as the Premiumdata available fromCallcredit/VisualDNA - builton behavioural, inferred, selfclaimed and real world data.© 2013 Callcredit Information Group Ltd. All rights reserved
  • 7. // www.callcredit.co.uk // Briefing Paper // 06© 2013 Callcredit Information Group Ltd. All rights reserved
  • 8. // Briefing Paper// 07 // www.callcredit.co.uk// Briefing Paper// 07 // www.callcredit.co.ukNew opportunities for findingcustomers have become availableUsing targeting data in online marketingis nothing short of a game changer.The benefits of segmentation are wellunderstood in the offline world but till nowhave not really touched digital advertising.The very rapid growth of real time biddingnow offers interactive marketers a chanceto implement audience based marketing:they can identify the audience they areabout to serve an ad to before it is bought.Callcredit has recognised this and createda new service to deliver this for clients.Addressable marketing identifies individualsand delivers messages to them based ontheir individual characteristics. For example,it would be inappropriate to display advertsfor a credit based product to someone whois unlikely to be accepted for the product bythe lender – our new generation of displayadvertising can address such issues.This new multi-channel advertisingecosystem allows a sophisticated mix ofcost effective messaging across digitalchannels designed to maximise conversions.A contact strategy can be created toorchestrate customer engagementsto enable brand experiences that areconsistent yet customisable acrosschannels – see below example use cases.Marketing Service Providers (MSPs) suchas Callcredit who have a long history increating, managing and modellingconsumer datasets in the offline spaceare now offering clients the same valuabletargeting capabilities online. By partneringwith appropriate technology platformsthey can plug in to the online ecosystemand provide an end to end solution. Manyclients are choosing to work with MSPsrather than having to build additionalrelationships with a fragmented range ofindependent platforms and suppliers.General audiencesNon guaranteed mediaFixed prices for all usersPrecision targetingReal time biddable supplyCompetitive pricesAddressable Display AdvertisingTraditional Display Advertising© 2013 Callcredit Information Group Ltd. All rights reserved
  • 9. We know:Female, 35,low credit risk,high affluenceResult:they get an adserved based ontheir individual dataPerson A browses the internet Person B browses the internetPerson A then goes to FacebookWe knowMale, 25,med credit risk,low affluenceCallcredit’s Personalised Digital Advertising PlatformClient targeting criteria / modelResult:they get an adserved based ontheir individual dataWe know:Female, 35,low credit risk,high affluencePerson A receives an email from BRANDWe knowFemale, 35,low credit risk,high affluenceCallcredit’s Personalised Digital Advertising PlatformResult:they get an adserved based ontheir individual data// www.callcredit.co.uk // Briefing Paper // 08Person A and Person B get a different advert as a resultof their different demographic attributesPerson A receives an email from the brand and when they nextlog on to Facebook they see the same advert from the brand© 2013 Callcredit Information Group Ltd. All rights reserved
  • 10. // Briefing Paper// 09 // www.callcredit.co.ukSo what can be done targeting wise? Wellpretty much most things you would expectoffline – and a bit more. Online data is onlypart of the jigsaw – the variables traditionallyavailable to target display advertising arelimited to context, some online behavioursor very limited attributes. What reallymakes data driven marketing interestingis the ability to combine offline data withother characteristics gathered online thengenerate the advertising with other directmarketing channels such as email, mobileor social. So now you can buy audienceswherever they pop up on the internet ratherthan buying particular ‘slots’ and hope theright people turn up. The use of third partydata within this process allows brands tobetter reach target audiences who may bein play for particular products or services.Marketers can now create campaignsand ongoing programmes with prospectto customer journeys mapped out acrossaddressable display, email, and ownedwebsites as well as even post or phone.Callcredit has created a number of multi-channel templates which can be configuredfor specific verticals and propositions.Callcredit and VisualDNAhas built the UK’s largestuniverse of online targetingdata of its kind whichis built around offlinevariables including over50 of Callcredit’s mostpredictive characteristicswhich have been usedby blue chip brandsfor many years. It alsoincludes self-claimed data,behavioural and inferredtraits and attributes. Wehave the UK’s largest poolof digital channel enabledconsumers.Media planningFocus on contextMany single channelsAudience planningFocus on individualCoordinated channelsAddressable Display AdvertisingTraditional Display Advertising© 2013 Callcredit Information Group Ltd. All rights reserved
  • 11. // www.callcredit.co.uk // Briefing Paper // 10© 2013 Callcredit Information Group Ltd. All rights reserved
  • 12. // Briefing Paper// 11 // www.callcredit.co.uk// Briefing Paper // www.callcredit.co.ukWhilst display advertising has relatively lowclick through rates, it allows us to quicklyreach large audiences. Email and SMS hasthe advantage of higher open and clickthrough rates (One source quotes SMS openrates as being more than 99%). Callcredithas access to over 24m marketable emailaddresses and 15m mobile numbers whichcan be used as part of an addressabledisplay campaign.Even though the unit costs for email anddisplay are low, they are not always the mosteffective choice in isolation, direct mail canbe 10 to 30 times more effective accordingto Adage.com4.Traditional channels such as mail and phoneshow the highest response rates, yet onlinechannels attract a greater percentage ofmarketing pounds because they generate afar better return on investment. The answerto this lies in finding the right combination oftechniques for each offering, customer typeand brand and whether we’re talking aboutacquisition or existing customer marketing.So, what targeting data is available for youruse? It takes into account both rational/fact based as well as emotional responsesto optimise the engagement with theconsumer by the brand across the decisionjourney. This can be enacted across oneor a number of channels and can relateeither to acquisition of new customers orengagement with existing ones.This table summarises the strengths and weaknesses of many of the main channelsand as such will have a bearing on what is right for any specific campaign.CHANNEL STRENGTH WEAKNESSOrganic search • Timely• Low cost• At the mercy of search engine algorithm• Takes time to build strengthPaid search • Timely• Low unit cost• Can build traffic quickly• Requires ongoing optimisation• Can attract organic (free) clicks• Competitive categories are costlyDisplay non-RTB • Wide range of formats• Many networks• Low click through rates• Costs fixed regardless of audience• Limited targetingDisplay RTB • Timely• Flexible costs for audiences• Can target using offline / real data / models• New therefore not widely used yet• Requires more consideration for audienceselection and targeting dataFacebook Exchange* (FBX) • Access to highly engaged audience• Good UK reach for response ads• Can use offline data to target• Low click through rates• Restricted commercial termsSocial posts/ pages • Viral characteristics• High user engagement possible• Posts can be demoted by socialnetwork algorithmsEmail • Highly targetable• Customisable content• Can buy email contacts• Medium open rates• Deliverability issuesSMS • High open rates• Highly targetable• Use of location• Restricted format• Limited ability to shareTraditional channels suchas mail and phone showthe highest response rates,yet online channels attracta greater percentage ofmarketing pounds becausethey generate a far betterreturn on investment.© 2013 Callcredit Information Group Ltd. All rights reserved
  • 13. // www.callcredit.co.uk // Briefing Paper // 12nGaugeAffordability RiskDemographicsFinancialVariablesPropertyVariablesPeople inPlay LeadGenerationTransactionalGeo-Demographic TargetingCAMEOTargeting Segments built usingoffline sourced dataFinance Types, Household Income,Household LifestyleLifestyleInterestsOpinions EmotionsAttitudeMotivations GoalsBrandPreferencesPurchaseIntentTargeting Segments built usingonline sourced data450 groups created specifically for ad targetingDESIREDACTIONTAKEN BYCONSUMERAWARENESSBUYINGRESEARCH COMPARISON© 2013 Callcredit Information Group Ltd. All rights reserved
  • 14. // Briefing Paper// 13 // www.callcredit.co.ukMake sure your contact strategyis planned to include the rightcombination of channelsWith so many direct channels nowavailable, how should you choose the rightcombination to hit your objectives? Theprocess for creating a multi-channelcampaign including addressable media isnot that dramatically different to thatwhich might be used for digital ortraditional campaigns in isolation. Thefollowing diagram highlights some of thekey steps you might consider.Our partnership with VisualDNA allowsus to enhance our consumer data withadditional emotive and personality-basedsegments. These additional data pointsallow us to provide superior targetingcapabilities and therefore deliver betterperformance for brand and responsecampaigns and best in class audienceinsight.Callcredit incorporating Latitude can cutthrough the complexity of all of thesechannels for clients. We are uniqueamongst agencies – having media agency,trading desk, planning and displaycapabilities as well as being a primarydata owner. Our trading desk has accessto a wide range of Callcredit, VisualDNAand other third party data and our multi-channel planning team has the experienceto help you design and execute highperforming marketing campaigns.1-Understandingbuying behavioursand defining audiences2-Designing the campaign 3-Building the campaign,channel by channelOrganicSearch“… I need to find a betterinsurance policy….”CONSUMERPLANNERPRODUCTSPECIALISTPLANNERSEOSPECIALISTEMAILDESIGNERDISPLAYSPECIALISTKeywordsProfilesDirectReferralPaid SearchSocial (100 more pages)8.55k/contact-us/contact-us-enquiries/products/products/consumer-s...4-Deployment andevaluationHow do audiencesresearch and buy ourservice? What journeys aretaken by customers? Whatcustomer data and insightsources are available?Which offers are right foreach audience? Whatsequences of channelinteractions do we want tosuggest? How much reachdo we need to achieve andwhat budget will berequired?What creative elementswill be needed? Do I haveall of the data attributes Ineed to implementselection criteria? Whatdata gaps do I need to fill?Who will build thecampaign – in house oroutsourced?What testing do I need toput in place?What measures should Ifocus on and what willreporting look like? Whattracking do I need to put inplace?© 2013 Callcredit Information Group Ltd. All rights reserved
  • 15. // www.callcredit.co.uk // Briefing Paper // 14© 2012 Callcredit Information Group Ltd. All rights reserved© 2013 Callcredit Information Group Ltd. All rights reserved
  • 16. 1http://hbr.org/2012/10/data-scientist-the-sexiest-job-of-the-21st-century/ar/12http://mandmglobal.com/news/06-09-12/ebay-launches-private-ad-exchange-in-uk.aspx3http://www.adweek.com/news/technology/black-friday-drives-rtb-funnel-1455324http://adage.com/article/media/dma-snail-mail-phone-beat-digital-response-rates/235364/Callcredit Information GroupHelping you make Smarter DecisionsTo find out more about Callcredit’s Marketing Solutionsemail info@callcreditmarketing.com call 0845 60 60 609or visit www.callcredit.co.uk© 2013 Callcredit Information Group Ltd. All rights reservedAbout Callcredit Information GroupCallcredit Information Group has a leading edge approach to using consumer informationin credit referencing, marketing services, interactive solutions and consultative analytics.This enables our clients to cost-effectively identify, engage and convert more newcustomers and optimise existing customer revenues.Callcredit Marketing Solutions can help develop an integrated channel strategy withthe following services:• Appending emails, mobile numbers and landlines to terrestrial data• Reverse matching of email addresses• Profiling of online enquirers and customers• Finding e-lookalikes• Helping to build engagement with invisible offline customers• Joining online intents and behaviours with offline data and activities• Presenting unified content, including offers and messages to customers based on allchannel interactions

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