An introduction to behavioural targeting

Slide 1: An introduction to behavioural targeting Guy Phillipson 17 January 2006

Slide 2: 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?

Slide 3: Tools to stay top-of-mind There are a variety of online advertising techniques to help you compete for consumer attention Aware ne s s Le ad Be havio ural Building Ge ne ratio n Marke ting Ta rg e t in- Cre a te h ig h Us e your own ma rke t impa c t, h ig h s ite or 3 rd pa rty c ons ume rs a nd re a c h pa rtne rs to re ma rke t to c a mpa ig ns a nd c olle c t le a ds for c re a te a us e ric h me dia c ommunic a ting s us ta ine d s uc h a s Vide o produc t info ma rke ting e ffort IMP AC T DIALOG UE INF LUE NC E

Slide 4: 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

Slide 5: Spend on behavioural is rising rapidly Major advertisers recognise the importance of talking to consumers throughout their entire web experience B e h a viour Ta rg e te d Online Ad S pe nd, US $(Millions ) $285 2003 $648 2004 2005 $925 $1,200 2006 $1,500 2007 $2,100 2008 Source: eMarketer, A 2006 pril

Slide 6: Types of Behavioural Targeting Targeting can be tailored based on consumer behaviour and campaign objectives Type s o f Ta rg e t De fining C a m pa ig n Ta rg e tin g Au die nc e B e h a viou r Goa l Individua l F re q ue nt or re c e nt Co nte nt Branding dis pla ying a ffinity vis its to inte re s t- for s pe c ific b a s e d c onte nt c onte nt th e m e s Individua l Purc has e Inc re as ing F re q ue nt or re c e nt re s e a rc h ing Inte nt c o nve rs io n vis its to ve ndor produc t or s e rvic e s ite s Source: JupiterResearch, J 2006 une

Slide 7: Content Behavioural Marketing Cus to me rs who vis it trave l-re late d s ite s are ide ntifie d as “in-marke t” and s ho wn yo ur ad as the y c o ntinue the ir jo urne y o nline User Internet

Slide 8: Purchase Intent Behavioural Marketing Cus to me rs who vis ite d yo ur s ite (fro m anywhe re ) c an be re targ e te d to e ns ure yo ur me s s ag e is s us taine d, le ading the m bac k to yo ur s ite Be havioural Ne twork

Slide 9: It’s easy to measure success Simple to measure • Co nve rs io n Rate All Ve rtic als conversion percentage… 3 times as effective …and compare to • performance of non-behavioural inventory Witho ut B e ha vio ura l With B e ha vio ura l Source: Advertising.com 2006

Slide 10: Where’s it going ipTV Targeted TV • ads according to viewing behaviour

Slide 11: 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

Slide 12: But behavioural targeting online is here right now…