Behavioral Marketing Online: A Case Study - Behavioral Science

7,965 views

Published on

Creative Strategies The Phelps Group, July 2004

Published in: Business, Travel

Behavioral Marketing Online: A Case Study - Behavioral Science

  1. 1. Behavioral Targeting Online: A Case Study
  2. 2. Outline <ul><li>Introductions: Behavioral Targeting and it’s role in online media </li></ul><ul><li>How to measure and value Behavioral Targeting. </li></ul><ul><li>WSJ/American Airlines Case Study Campaign Results </li></ul><ul><ul><li>…composition </li></ul></ul><ul><ul><li>…effectiveness (awareness) </li></ul></ul><ul><ul><li>…cost efficiency </li></ul></ul><ul><li>How Behavioral Targeting will evolve </li></ul>
  3. 3. What is Behavioral Targeting <ul><li>Behaviors provide the clearest window into people’s desires and interests </li></ul>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
  4. 4. Revenue Science – Leaders in Behavioral Targeting WEB PUBLISHERS SAMPLE AUDIENCE SEGMENTS ADVERTISERS <ul><li>Car Buffs </li></ul><ul><li>Health Nuts </li></ul><ul><li>Travel Seekers </li></ul><ul><li>Mutual Fund Aficionados </li></ul><ul><li>The Leisure-Minded </li></ul><ul><li>Engaged Investors </li></ul><ul><li>Frequent Travelers </li></ul><ul><li>Affluent Users </li></ul><ul><li>Gamers </li></ul><ul><li>Hardcore Sports Fans </li></ul><ul><li>SUV Shopper </li></ul><ul><li>End of Year Rebates </li></ul><ul><li>Hooked on Convertibles </li></ul>
  5. 5. How does Behavioral Targeting work? <ul><li>What people say </li></ul><ul><ul><li>Registration </li></ul></ul><ul><ul><li>Search </li></ul></ul><ul><li>What people do </li></ul><ul><ul><li>Website </li></ul></ul><ul><ul><li>Categories and Pages </li></ul></ul><ul><ul><li>Words </li></ul></ul><ul><li>How often they do it </li></ul><ul><ul><li>Frequency </li></ul></ul><ul><ul><li>Recency </li></ul></ul>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)
  6. 6. How to Measure Behavioral Targeting: Audience Composition <ul><li>True metric of reaching the right audience </li></ul><ul><li>Measures core value proposition of targeting </li></ul><ul><li>Audience Composition: # Qualified / # Total </li></ul><ul><li>Widely used in print media </li></ul><ul><ul><li>How does a leading airline make campaign allocation decisions for advertising in the print world? </li></ul></ul>146 178 Index 10.3 32 Coverage 16.3 20 Composition 552 1730 Aud (000) Business Week WSJ 5+ Domestic air trips (yr)
  7. 7. Case Study <ul><li>Collaboration between WSJ.com, Revenue Science, Global Airline Carrier and its Advertising Agency </li></ul><ul><li>Conducted audience composition and advertising effectiveness study using Dynamic Logic tools </li></ul><ul><li>Used Test/Control methodology </li></ul><ul><ul><li>Brand Metrics: Control Unexposed, Test IBT Exposed </li></ul></ul><ul><ul><li>Brand Metrics: Control Unexposed, Test RON Exposed </li></ul></ul><ul><ul><li>Audience Composition: Control RON, Test IBT </li></ul></ul>
  8. 8. Behavioral Targeting Delivers Significant Lift in Effectiveness for Branding Campaigns <ul><li>Higher Composition across the board (115% to 145% lift) </li></ul><ul><li>Better targeting can deliver higher compositions than naïve targeting </li></ul><ul><li>BT gives you brand lift over RON (on 5/6 metrics) </li></ul><ul><li>In target brand lift is higher on 6/6 metrics </li></ul><ul><ul><li>When you get the right people, they remember the message more. </li></ul></ul><ul><li>The BT campaigns are more cost effective than RON even if you don’t count the brand lift! </li></ul>Result = 115% lift in audience comp. Business Travelers 1+ Business Trips Per Year
  9. 9. Behavioral Targeting Delivers Significant Lift in Effectiveness for Branding Campaigns <ul><li>Higher Composition across the board (115% to 145% lift) </li></ul><ul><li>Better targeting can deliver higher compositions than naïve targeting </li></ul><ul><li>BT gives you brand lift over RON (on 5/6 metrics) </li></ul><ul><li>In target brand lift is higher on 6/6 metrics </li></ul><ul><ul><li>When you get the right people, they remember the message more. </li></ul></ul><ul><li>The BT campaigns are more cost effective than RON even if you don’t count the brand lift! </li></ul>Result = 145% lift in audience comp. Business Travelers 5+ Business Trips Per Year
  10. 10. *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 <ul><li>Message Association for the targeted business travelers experienced statistically significant lifts for all three messages. </li></ul><ul><li>The following table compares the results for the Qualified Business Travelers </li></ul><ul><ul><li>Total Respondents: RON = 820; IBT = 373 </li></ul></ul><ul><ul><li>Qualified Respondents: RON = 216; IBT = 210 </li></ul></ul>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
  11. 11. Economic Case <ul><li>CPT (cost per thousand targets): CPM/Composition </li></ul><ul><li>ROS CPT: CPM: $35/0.263 = $133 </li></ul><ul><li>Behavioral Targeting CPT: $60/0.563 = $106 </li></ul><ul><li>RON is 25% more expensive than Behavioral Targeting </li></ul>
  12. 12. Where is Behavioral Targeting Going <ul><li>A major piece of the online mix </li></ul><ul><li>Standards for finding and comparing audiences </li></ul><ul><li>Network Buys and better privacy protection </li></ul><ul><li>Advertiser contribution to behavior </li></ul>
  13. 13. Thank You [email_address]

×