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While online contextual and behavioral insights abound, an important insight — knowledge that a visitor is, in fact, your intended audience — fails on an epic scale: as much as 80% according to ...

While online contextual and behavioral insights abound, an important insight — knowledge that a visitor is, in fact, your intended audience — fails on an epic scale: as much as 80% according to some estimates1. Considering the global market reached $14 billion in 20092, that’s an $11 billion “fail.”

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Reach With Certainty Document Transcript

  • 1. An Acxiom White Paper Reach with Certainty
  • 2. Acxiom While online contextual and behavioral insights abound, an important insight — knowledge that a visitor is, in fact, your intended audience — fails on an epic scale: as much as 80% according to some estimates1. Considering the global market reached $14 billion in 20092, that’s an $11 billion “fail.” The lack of certainty also causes a more insidious problem. When brands can’t reach with certainty, they overspend on low value customers and prospects, and under spend on high value opportunities. Given the top 30% customers/ prospects are typically five times more profitable3; the lack of certainty costs advertisers huge profits. Finally, most innovation (agency trading desks and demand-side platforms) focus more upon disintermediating existing ad networks rather than solving the audience certainty problem. While good for tech investors, this innovation does little for brands. Advertising is like a box of chocolates: you never know who you’re gonna get Guided by his mother’s famous advice, Forrest Gump took us all on an unpredictable, humorous journey. In online advertising, unfortunately, uncertainty is far from a laughing matter. If brands and direct response marketers could reach with certainty, they would… • Filter out the unintended/undesired, such as promiscuous buyers with little loyalty intent, or those in an unserved geography • Double-down on desirable relationships — those who cross-buy, who stay, who recommend, and who have lower service costs • Version the message to drive engagement/conversion. For the first time, online creative can connect with proprietary brand personas with certainty Reaching with certainty also enables monumental progress in measuring advertising effectiveness. Attributing financial results to advertising/marketing spend is hard, exacerbated by low confidence that an audience was actually reached (let alone positively influenced). Improvements in effectiveness of 10-30% across all media (not just online) via proper mix optimization are realistically achievable. REACH WITH CERTAINTY 1
  • 3. Acxiom “Houston, we have a problem.” Commander James Lovell’s famous words were the call to action for the dramatic Apollo 13 rescue mission. Advertising’s call to action is found in the disturbing variances between branded website traffic and consumers with intent. Said another way, most branded sites are not getting their fair share of high value visitors. Consider the following masked example, comparing consumer lifestages for a major financial services brand, its competitors, and those with intent. Bank #1 Bank #2 Bank #3 UV Index UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments PersonicX Consumer Segments Intent to Purchase Intent to Purchase Intent to Purchase Buy Life Insurance Very Likely Buy Financial Products Very Likely Buy Insurance Very Likely Homeowner or Personal Property UV Index UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments PersonicX Consumer Segments Of course, different brands appeal to different audiences (these three banks show a wide variance). More importantly, like this example, most major brands are over-represented in marginal/low value traffic and under-represented in high value traffic. That, ladies and gentlemen, is a marketing crisis. In response, brands often turn to broadcast television or online advertising on major destination sites. Unfortunately, their homogenous viewers/traffic makes it difficult to select just the audiences that matter. Consider the following examples, comparing selected online destinations and separately, viewership for the major broadcast networks. 2 REACH WITH CERTAINTY
  • 4. Acxiom Publisher #1 Publisher #2 Publisher #3 148 MM UVs 96 MM UVs 56 MM UVs 200 200 200 150 150 150 UV Index UV Index UV Index 100 100 100 50 50 50 0 0 0 PersonicX Consumer Segments PersonicX Consumer Segments PersonicX Consumer Segments Network TV #3 Network TV #1 Network TV #2 200 200 200 150 150 150 UV Index UV Index UV Index 100 100 100 50 50 50 0 0 0 PersonicX Consumer Segments PersonicX Consumer Segments PersonicX Consumer Segments A mass approach, even when digital, simply exacerbates the alarming chasm between high value customers and branded site traffic. Unless, of course, you can reach just those customers/prospects who matter...and only those segments…with certainty. We’re not in Kansas, anymore. In successfully finding her CONCENTRATION TRADITIONAL VARIANCE way home to Kansas, Campaign Cost Impression Volume 37,500,000 100,000,000 Dorothy cleverly adapted Cost per Thousand $800 $300 to the circumstances in Oz. Total Campaign Cost $300,000 $300,000 Today’s marketers need to Revenue Generated Revenue/Conversion $500 $250 adapt by concentrating ad Purchase Rate .02% .01% spend on those most likely Total Conversions 7,500 10,000 Total Revenue $3,750,000 $2,500,000 $1,250,000 50% higher to be valuable, leveraging Total Revenue/Ad Dollar $12.50 $8.00 $4.17 50% higher newly available “reach with certainty” tactics. CLTV $4,000 $1,250 Total CLTV $30,000,000 $12,500,000 $17,500,000 140% higher The increase in consumer savings rate has reduced U.S. consumer spending by $1.7 trillion/year4. Rather than simply spending more to attract a more frugal consumer, advertisers are better served by leveraging the concentration multiplier principle. By “concentrating” on high value segments, reached with certainty, advertisers can drive a 3-5 fold “multiple” in value per ad dollar invested. REACH WITH CERTAINTY 3
  • 5. Acxiom Your audience. Addressable anywhere. Reached with certainty. To reach with certainty requires consumer insight, technology and compliance with privacy best practices. Acxiom enables marketers to reach just their audience with certainty across: • 200 million Internet portraits • 70 million mobile portraits • 86 million permission-based email addresses Advertisers • 650 million social portraits Publishers • 122 million postal households Collaboration • 6 million TV households Your personas, segments, and models reach intended Target audiences with certainty. Audience Set You drive awareness, consideration, intent and Available favorability with certainty. Impressions Insight into media effectiveness, throughout the purchase cycle and across channels, improves because your customers and prospects are reached with certainty. Taking the first step Contact Acxiom for a complementary assessment. Often, reaching with certainty can be entirely funded by remixing existing media expenditures. Acxiom profile (www.acxiom.com) • 5,700 clients in 40 countries • Manage/execute 250,000 campaigns per year • Compile and update information on on behalf of clients 500 million consumers around the world • Engage 375 million customers per month • Perform 83 billion customer recognition • Maintain over 4,000 databases on behalf events per month of clients • Perform 18 trillion customer updates/year • Manage 23,000 servers on behalf of clients • Evaluate 65,000 privacy policies/year • Manage 3,000 client service requests per day 1 ComScore, 2009 2 eMarketer, 2010 3 Acxiom, average analysis of customers 4 U.S. Bureau of Economic Analysis (http://www.bea.gov/BRIEFRM/SAVING.HTM) (http://www.bea.gov/national/nipaweb/TableView.asp?SelectedTable=58&Freq=Qtr&FirstYear=2007&LastYear=2009) 4 REACH WITH CERTAINTY
  • 6. See how Acxiom can work for you. For more information, visit our website at www.acxiom.com or call: 1.888.3ACXIOM AC-0333-10 ELEC 4/10