An introduction to behavioural targeting Guy Phillipson 17 January 2006

A pithy analogy… Your prospective customer received an application form by direct mail. She’s filled in 80% of it and left it unsigned on the kitchen table. Imagine if you knew that and, as if by magic, could make her pick it up, complete it and post it?

Your prospective customer received an application form by direct mail. She’s filled in 80% of it and left it unsigned on the kitchen table.

Imagine if you knew that and, as if by magic, could make her pick it up, complete it and post it?

There are a variety of online advertising techniques to help you compete for consumer attention Tools to stay top-of-mind Behavioural Marketing Target in-market consumers and remarket to create a sustained marketing effort Lead Generation Use your own site or 3 rd party partners to collect leads for communicating product info Awareness Building Create high impact, high reach campaigns and use rich media such as Video IMPACT DIALOGUE INFLUENCE

Clever cookies Cookies (1 x1 pixels) allow us to follow audience behaviour and re-target customers with relevant offers online. Often used for finance, travel, autos and other long purchase cycle categories. Behavioral targeting delivers a pre-qualified audience and, usually, much higher conversion

Cookies (1 x1 pixels) allow us to follow audience behaviour and re-target customers with relevant offers online.

Often used for finance, travel, autos and other long purchase cycle categories.

Behavioral targeting delivers a pre-qualified audience and, usually, much higher conversion

Major advertisers recognise the importance of talking to consumers throughout their entire web experience Spend on behavioural is rising rapidly Source: eMarketer, April 2006 Behaviour Targeted Online Ad Spend, US $(Millions)

Targeting can be tailored based on consumer behaviour and campaign objectives Types of Behavioural Targeting Types of Targeting Target Audience Defining Behaviour Campaign Goal Source: JupiterResearch, June 2006 Content Individual displaying affinity for specific content themes Frequent or recent visits to interest-based content Branding Purchase Intent Individual researching product or service Frequent or recent visits to vendor sites Increasing conversion

Customers who visit travel-related sites are identified as “in-market” and shown your ad as they continue their journey online Content Behavioural Marketing User Internet

Customers who visited your site (from anywhere) can be retargeted to ensure your message is sustained, leading them back to your site Purchase Intent Behavioural Marketing Behavioural Network

It’s easy to measure success Simple to measure conversion percentage… … and compare to performance of non-behavioural inventory Source: Advertising.com 2006 3 times as effective

Simple to measure conversion percentage…

… and compare to performance of non-behavioural inventory

Where’s it going ipTV Targeted TV ads according to viewing behaviour

ipTV

Targeted TV ads according to viewing behaviour

Where’s it going? Sky+ The latest Sky+ boxes are equipped with separate hard drive ready to learn your viewing and serve pre-selected TV advertisements

Sky+

The latest Sky+ boxes are equipped with separate hard drive ready to learn your viewing and serve pre-selected TV advertisements

But behavioural targeting online is here right now…

But behavioural targeting online is here right now…