Behavioral Targeting Online: A Case Study

Outline Introductions: Behavioral Targeting and it’s role in online media How to measure and value Behavioral Targeting. WSJ/American Airlines Case Study Campaign Results …composition …effectiveness (awareness) …cost efficiency How Behavioral Targeting will evolve

Introductions: Behavioral Targeting and it’s role in online media

How to measure and value Behavioral Targeting.

WSJ/American Airlines Case Study Campaign Results

…composition

…effectiveness (awareness)

…cost efficiency

How Behavioral Targeting will evolve

What is Behavioral Targeting Behaviors provide the clearest window into people’s desires and interests People qualify themselves for marketers by their own actions Example: repeatedly reading about mortgages or clicking on a loan calculator Typically, online advertisers broadcast to a place or wait for prospects through search… … Instead , Behavioral Targeting allows advertisers to deliver their message to audiences who have demonstrated interest The result is that targeting becomes more efficient Bottom Line: A lower cost per target for advertisers that is triggered by audience behavior

Behaviors provide the clearest window into people’s desires and interests

Revenue Science – Leaders in Behavioral Targeting WEB PUBLISHERS SAMPLE AUDIENCE SEGMENTS ADVERTISERS Car Buffs Health Nuts Travel Seekers Mutual Fund Aficionados The Leisure-Minded Engaged Investors Frequent Travelers Affluent Users Gamers Hardcore Sports Fans SUV Shopper End of Year Rebates Hooked on Convertibles

Car Buffs

Health Nuts

Travel Seekers

Mutual Fund Aficionados

The Leisure-Minded

Engaged Investors

Frequent Travelers

Affluent Users

Gamers

Hardcore Sports Fans

SUV Shopper

End of Year Rebates

Hooked on Convertibles

How does Behavioral Targeting work? What people say Registration Search What people do Website Categories and Pages Words How often they do it Frequency Recency Visitors Navigate Visitors Are Assigned To Publisher created segments Segments On Future Visits, Targeted Ads Are Served To Segment Members Regardless of Where They Go On The Site (Instead Of House or ROS)

What people say

Registration

Search

What people do

Website

Categories and Pages

Words

How often they do it

Frequency

Recency

How to Measure Behavioral Targeting: Audience Composition True metric of reaching the right audience Measures core value proposition of targeting Audience Composition: # Qualified / # Total Widely used in print media How does a leading airline make campaign allocation decisions for advertising in the print world? 146 178 Index 10.3 32 Coverage 16.3 20 Composition 552 1730 Aud (000) Business Week WSJ 5+ Domestic air trips (yr)

True metric of reaching the right audience

Measures core value proposition of targeting

Audience Composition: # Qualified / # Total

Widely used in print media

How does a leading airline make campaign allocation decisions for advertising in the print world?

Case Study Collaboration between WSJ.com, Revenue Science, Global Airline Carrier and its Advertising Agency Conducted audience composition and advertising effectiveness study using Dynamic Logic tools Used Test/Control methodology Brand Metrics: Control Unexposed, Test IBT Exposed Brand Metrics: Control Unexposed, Test RON Exposed Audience Composition: Control RON, Test IBT

Collaboration between WSJ.com, Revenue Science, Global Airline Carrier and its Advertising Agency

Conducted audience composition and advertising effectiveness study using Dynamic Logic tools

Used Test/Control methodology

Brand Metrics: Control Unexposed, Test IBT Exposed

Brand Metrics: Control Unexposed, Test RON Exposed

Audience Composition: Control RON, Test IBT

Behavioral Targeting Delivers Significant Lift in Effectiveness for Branding Campaigns Higher Composition across the board (115% to 145% lift) Better targeting can deliver higher compositions than naïve targeting BT gives you brand lift over RON (on 5/6 metrics) In target brand lift is higher on 6/6 metrics When you get the right people, they remember the message more. The BT campaigns are more cost effective than RON even if you don’t count the brand lift! Result = 115% lift in audience comp. Business Travelers 1+ Business Trips Per Year

Higher Composition across the board (115% to 145% lift)

Better targeting can deliver higher compositions than naïve targeting

BT gives you brand lift over RON (on 5/6 metrics)

In target brand lift is higher on 6/6 metrics

When you get the right people, they remember the message more.

The BT campaigns are more cost effective than RON even if you don’t count the brand lift!

Behavioral Targeting Delivers Significant Lift in Effectiveness for Branding Campaigns Higher Composition across the board (115% to 145% lift) Better targeting can deliver higher compositions than naïve targeting BT gives you brand lift over RON (on 5/6 metrics) In target brand lift is higher on 6/6 metrics When you get the right people, they remember the message more. The BT campaigns are more cost effective than RON even if you don’t count the brand lift! Result = 145% lift in audience comp. Business Travelers 5+ Business Trips Per Year

Higher Composition across the board (115% to 145% lift)

Better targeting can deliver higher compositions than naïve targeting

BT gives you brand lift over RON (on 5/6 metrics)

In target brand lift is higher on 6/6 metrics

When you get the right people, they remember the message more.

The BT campaigns are more cost effective than RON even if you don’t count the brand lift!

*Statistically significant difference between Control and Exposed group at a 90% confidence level Lift = (Exposed-Control)/Control Please Note: Lift percentages are calculated from the actual Control and Exposed group scores, while the above presented scores are rounded, if attempting lift calculation using the scores above there will be differences from the actual lift due to rounding American Airlines Campaign Results – Right Message Target Audience Message Association for the targeted business travelers experienced statistically significant lifts for all three messages. The following table compares the results for the Qualified Business Travelers Total Respondents: RON = 820; IBT = 373 Qualified Respondents: RON = 216; IBT = 210 100% +8 14% 6% *Message Association – 3,900 daily flights 218% +7 10% 3% *Message Association – frequent flyer program 314% +2 3% 1% *Message Association – upgrade first class 820 RON Difference 373 Sample Size Lift IBT

Message Association for the targeted business travelers experienced statistically significant lifts for all three messages.

The following table compares the results for the Qualified Business Travelers

Total Respondents: RON = 820; IBT = 373

Qualified Respondents: RON = 216; IBT = 210

Economic Case CPT (cost per thousand targets): CPM/Composition ROS CPT: CPM: $35/0.263 = $133 Behavioral Targeting CPT: $60/0.563 = $106 RON is 25% more expensive than Behavioral Targeting

CPT (cost per thousand targets): CPM/Composition

ROS CPT: CPM: $35/0.263 = $133

Behavioral Targeting CPT: $60/0.563 = $106

RON is 25% more expensive than Behavioral Targeting

Where is Behavioral Targeting Going A major piece of the online mix Standards for finding and comparing audiences Network Buys and better privacy protection Advertiser contribution to behavior

A major piece of the online mix

Standards for finding and comparing audiences

Network Buys and better privacy protection

Advertiser contribution to behavior

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