Migrating offline marketing strategies into the digital world Jan Jindra 402-473-4865 [email_address] © 2009 Experian Information Solutions, Inc. All rights reserved.

The digital world? Internet Mobile Email Cable Customer lifecycle emails Early engagement Up sell / cross sell Loyalty, retention Acquisition emails Operations Customer service Search Banner ads Affiliate networks Social networks Blogs Video networks Twitter Targeting directly to the cable top box SMS / Text messaging MMS messaging IVR / Voice messaging Mobile sites “ On deck” advertising Mobile applications

Customer lifecycle emails

Early engagement

Up sell / cross sell

Loyalty, retention

Acquisition emails

Operations

Customer service

Search

Banner ads

Affiliate networks

Social networks

Blogs

Video networks

Twitter

Targeting directly to the cable top box

SMS / Text messaging

MMS messaging

IVR / Voice messaging

Mobile sites

“ On deck” advertising

Mobile applications

Agenda Industry trends Data assets overview Targeting and segmenting Integration of offline and online strategies leveraging the data in the digital world strategies for digital marketing channels

Industry trends

Data assets overview

Targeting and segmenting

Integration of offline and online strategies

leveraging the data in the digital world

strategies for digital marketing channels

The number of individuals using the Internet continues to grow 188.1 (64.7%) 193.9 (66.1%) 200.1 (67.6%) 206.2 (69.0%) 211.9 (70.2%) 216.9 (71.2%) U.S. Internet users and penetration 2007 – 2012 (millions and % of population ages 3+) Source: eMarketer, January 2008

Nearly 45% of users spend over four hours per day online for personal use Source: Institute for Business Value Consumer M&E study, April 2007, sourced from marketingcharts.com Daily Internet usage for personal use Daily TV viewing

Internet advertising continues to rise, while other channels are declining Source: eMarketer, October 2008 U.S. advertising spend by media ($ billions)

Email marketing spend continues to grow, reaching $2.1 billion by 2012 Source: 2007 Jupiter Research $ millions

Email survey results Just about everyone is using email: More than 90% of Internet users between 18 and 72 said they send and receive email, making it the top online activity just ahead of search engines, according to the non-profit research group – Pew Internet and American Life Project (Feb 2009) Email contacts are growing fast: The number of marketing emails sent by U.S. retailers and wholesalers this year will hit 158 billion and grow 63% to 258 billion in 2013 – Forrester's U.S. Email Marketing Volume Forecast (2008) Email is overtaking direct mail: Email is used by 79.1% of marketers surveyed, while postal direct mail is used by 75.4% of marketers – Direct Marketing Association (2008) Email contacts work: 44% of email users said email inspired at least one online purchase and 41% said it prompted at least one offline purchase – JupiterResearch's The Social and Portable Inbox (2008)

Just about everyone is using email: More than 90% of Internet users between 18 and 72 said they send and receive email, making it the top online activity just ahead of search engines, according to the non-profit research group – Pew Internet and American Life Project (Feb 2009)

Email contacts are growing fast: The number of marketing emails sent by U.S. retailers and wholesalers this year will hit 158 billion and grow 63% to 258 billion in 2013 – Forrester's U.S. Email Marketing Volume Forecast (2008)

Email is overtaking direct mail: Email is used by 79.1% of marketers surveyed, while postal direct mail is used by 75.4% of marketers – Direct Marketing Association (2008)

Email contacts work: 44% of email users said email inspired at least one online purchase and 41% said it prompted at least one offline purchase – JupiterResearch's The Social and Portable Inbox (2008)

Revenue for cable advertising continues to grow Cable advertising revenue ($ millions) Source: eMarketer, January 2008 65MM basic subscribers

Mobile facts 250 million active mobile phone subscribers 90% of active mobile phones capable of text 155 million of these subscribers use text 71% consumers 13-17 text weekly 76% consumers 18-24 text weekly 65% consumers 25-34 text weekly 52% consumers 35-44 text weekly 42% consumers 45-54 text weekly 40% of text messages are sent by those ages 30 and up $75,000 Average annual income of text users ages 30 and up For consumers under 34, Cell phone is viewed as more important than TV, land line phones, and iPods Consumers 34-55 find cell phone to be equally as important as the computer The growing U.S. mobile marketing market MMA 2007 A&U data 2006 CTIA – The Wireless Association

Mobile facts

250 million active mobile phone subscribers

90% of active mobile phones capable of text

155 million of these subscribers use text

71% consumers 13-17 text weekly

76% consumers 18-24 text weekly

65% consumers 25-34 text weekly

52% consumers 35-44 text weekly

42% consumers 45-54 text weekly

40% of text messages are sent by those ages 30 and up

$75,000 Average annual income of text users ages 30 and up

For consumers under 34, Cell phone is viewed as more important than TV, land line phones, and iPods

Consumers 34-55 find cell phone to be equally as important as the computer

Spending for mobile advertising is starting to take off U.S. mobile advertising spending ($ millions) Source: eMarketer, February 2009

Key to leveraging data is to understand the Targeting Levels available to you … Segments Unique targets Mosaic ZIP Code ZIP + 4 Household Individual 43,000 60 120,000,000 295,000,000 43,000,000 Targeting Levels Addressable units ® TM TM

… and how the Targeting Levels can be applied across different channels Mosaic ZIP Code ZIP + 4 Household Targeting Levels ® TM TM Digital channels Individual Internet Mobile Email Cable

Through aggregation, high level categories can be leveraged across all channels Mosaic ZIP Code ZIP + 4 Household Targeting Levels ® TM TM Digital channels Individual Internet Mobile Email Cable

As we narrow the focus it becomes more challenging to target across all channels Mosaic ZIP Code ZIP + 4 Household Targeting Levels ® TM TM Digital channels Individual Internet Mobile Email Cable

Several channels excel at the individual level Mosaic ZIP Code ZIP + 4 Household Targeting Levels ® TM TM Digital channels Individual Internet Mobile Email Cable

Regardless of the targeting level, channel, or data source, we can continue to use a wide range of targeting tools Targeting criteria What is my target? What do they look like? What is the most appropriate offer, message, content, pricing? Who’s likely to say yes to my offer? Who will be profitable? What is their expected value? Who’s at risk? Targeting tools Response models Value models, profitability models Profile (“look a like”) models Retention / churn models Segmentations / profiles

Targeting criteria

What is my target? What do they look like?

What is the most appropriate offer, message, content, pricing?

Who’s likely to say yes to my offer?

Who will be profitable? What is their expected value? Who’s at risk?

Targeting tools

Response models

Value models, profitability models

Profile (“look a like”) models

Retention / churn models

Segmentations / profiles

How do we take advantage of digital channels?

Leveraging the Internet to acquire customers Visitors coming directly to your Web site The more information obtained, the more precise the ability to serve with relevance Identification information available Matching scheme Unknown Known ZIP Code TM match Individual HH or ZIP Code TM match Individual or account match Limited personal information (name, address, phone, email) Personal and account information (name, address, phone, email, account number) Browsers Visitors Leads Customers IP address

Real-time marketing for visitors: Enhancing visitors in real-time for acquisition and rapid database marketing Real-time marketing can deliver “real time” recommendations for relevant offers and messages that encourage visitors to convert IP Address: 66.249.67.226 Query: IP# 66.249.67.226 Recommendation on relevant content and offer to serve leveraging: Member segments Product propensities MOSAIC ® group TrueTouch SM touch-point Other custom segments and data Under 10 m/s response time Who am I ? Real-time marketing

Real-time marketing can deliver “real time” recommendations for relevant offers and messages that encourage visitors to convert

Recommendation on relevant content and offer to serve leveraging:

Member segments

Product propensities

MOSAIC ® group

TrueTouch SM touch-point

Other custom segments and data

Real-time marketing for customers: Providing relevant offers, messages, and content at the customer level Customer visits Citi website Jane Doe 123 Broad St New York, NY 12345 Acct#: 1234567 We know you are a young adult who has an existing card relationship with us and enjoys traveling. We display offers and creative's that are relevant to her Enhance Demographics Life events Behavioral data Individual data Household data Geographic data Data Append & Enhancement Act Client models / segmentations Experian models / segmentations Offer / Content recommendation Modeling & Scoring Real Time Marketing

Demographics

Life events

Behavioral data

Individual data

Household data

Geographic data

Client models / segmentations

Experian models / segmentations

Offer / Content recommendation

Intelligent prescreen / pre-qualification can deliver “real-time” qualification and offer recommendations PII Available: John Doe 123 Broad St New York, NY 12345 Recommendation on relevant content and offer to serve leveraging: Client segments Custom segments and models Real-time Marketing Who am I ? Prescreen engine Partner / client site (PII Available) Qualified? Yes Qualification determined by: Client-specific criteria Client application page

Recommendation on relevant content and offer to serve leveraging:

Client segments

Custom segments and models

Qualification determined by:

Client-specific criteria

Portal Banner Optimization Example Experian Analytic Offer Engine Visits Yahoo Generic segments Custom segments Targeted decisioning Offer / content recommendations 110MM+ unique visitors per month

Generic segments

Custom segments

Targeted decisioning

Offer / content recommendations

Targeting in a digital world – Internet What is the target I’m interested in? Who should I target? What is the most appropriate offer, message, content, pricing? Who’s likely to say yes to my offer? What do my visitors look like? Who will be profitable? What is their expected value? Targeting criteria Consumer Compiled Data Summarized credit / automotive Syndicated Market Research data Click stream data / purchase data Client data – contact history, purchase history, usage, performance Segmentations / profile (“look a like”) models Response / value models Profiles Individual level vs. geo level Targeting tools Data leveraged What can we offer?

What is the target I’m interested in? Who should I target?

What is the most appropriate offer, message, content, pricing? Who’s likely to say yes to my offer?

What do my visitors look like?

Who will be profitable? What is their expected value?

Consumer Compiled Data

Summarized credit / automotive

Syndicated Market Research data

Click stream data / purchase data

Client data – contact history, purchase history, usage, performance

Segmentations / profile (“look a like”) models

Response / value models

Profiles

Individual level vs. geo level

How do we take advantage of digital channels?

Leveraging the Internet to acquire customers Acquisition emails Client email policy Online Mkting DB Partner Emails Email generated with appropriate offer and message Abandonment Remarketing opportunity Triggered email Partner emails

Member Life Cycle messaging: Generating emails to drive engagement and growth Early engagement Engagement triggers Invite a friend Client email policy X-sell / up-sell / affinity triggers Transaction Data Client transaction & event data Transaction Data Client transaction & event data Usage stimulation and retention Transaction Data Client data Success Success Email generated with appropriate offer and message

Targeting in a digital world – email Who should I target? What is the most appropriate offer, message, content, pricing? Who’s likely to say yes to my offer? What do individuals that open / click / purchases look like? What is the most appropriate cadence, sequence? What triggers should I focus on? Consumer compiled data Summarized credit / automotive Email contact history – Open / click / purchase data Client data – contact history, purchase history, usage, performance Affinity Targeting using dynamic content Market Basket using dynamic content Acquisition, up-sell, cross-sell, retention models Targeting criteria Targeting tools Data leveraged What can we offer?

Who should I target?

What is the most appropriate offer, message, content, pricing? Who’s likely to say yes to my offer?

What do individuals that open / click / purchases look like?

What is the most appropriate cadence, sequence?

What triggers should I focus on?

Consumer compiled data

Summarized credit / automotive

Email contact history – Open / click / purchase data

Client data – contact history, purchase history, usage, performance

Affinity Targeting using dynamic content

Market Basket using dynamic content

Acquisition, up-sell, cross-sell, retention models

How do we take advantage of digital channels?

Cable co information identify subscriber / non-subscriber Client’s database customers prospects DMA® is a registered service mark of Nielsen Media Research, Inc., and is used pursuant to a license from Nielsen Media Research, Inc., all rights reserved Cable zones are derived from CableTrack©, the database is a copyrighted brand of the National Cable Communications LLC (NCC) and is used pursuant to a license from NCC, all rights reserved. Cable household addressability example Experian targeting engine Targeting to the cable zone Targeting to the cable box National DMA ® Cable Zones ZIP Code ™ Block Group ZIP + 4 ™ Household Individual

Experian targeting engine

Targeting to the cable zone

Targeting to the cable box

Leveraging the cable box to target at the household Client’s criteria Customer / prospect Any Town , USA Residents: 500,000 HH Cable subscribers: 300,000 HH Client customers: 125,000 HH Cable footprint Total subs: 300,000 HH Addressable: 100,000 HH Targeting Engine 25,000 HH 35,000 HH 10,000 HH 30,000 HH

Targeting in a digital world – cable What is the target I’m interested in? What is the most appropriate offer, message, content, pricing? Who’s likely to say yes to my offer? What do targeted viewers look like? Which shows do they watch? Which channels? When do they watch? Who will be profitable? What is their expected value? Consumer compiled data Summarized credit / automotive Syndicated Market Research data Response data Client data – contact history, purchase history, usage, performance Segmentations / profile (“look a like”) models Response / value models Profiles Household level vs. geo level Targeting criteria Targeting tools Data leveraged What can we offer?

What is the target I’m interested in?

What is the most appropriate offer, message, content, pricing? Who’s likely to say yes to my offer?

What do targeted viewers look like?

Which shows do they watch? Which channels? When do they watch?

Who will be profitable? What is their expected value?

Consumer compiled data

Summarized credit / automotive

Syndicated Market Research data

Response data

Client data – contact history, purchase history, usage, performance

Segmentations / profile (“look a like”) models

Response / value models

Profiles

Household level vs. geo level

How do we take advantage of digital channels?

Winning practices But, what does “mobile” mean? SMS / text messaging Delivery of text messages via carriers’ short messaging service MMS messaging Delivery of rich media via carriers’ multimedia messaging service IVR / voice messaging Delivery of voice messages to phones and interaction with consumers via voice recognition and phone key pad Mobile sites Internet sites optimized for mobile devices and accessed via a wireless application protocol (WAP) browser “ On deck” advertising Advertising delivered by carrier using the primary device interface and/or carrier WAP site Mobile applications Custom applications residing on mobile device

Winning practices Mobile tactics and alignment to marketing objectives Winning practices SMS / text messaging MMS messaging IVR / voice messaging Mobile sites “ On deck” advertising Mobile applications Awareness and brand building Acquisition First purchase/ conversion Low frequency / cross-sell and upsell High frequency / loyalty mgmt Service channel marketing integration

Targeting in a digital world – mobile Who should I target? What is the most appropriate offer, message, content, pricing? Who’s likely to say yes to my offer? What mobile tactic should I use? What is the most appropriate cadence, sequence? What can I do to encourage “opt in”? Consumer Compiled data Summarized Credit / Automotive Syndicated Market Research data Response/ usage / purchase data Client data – contact history, purchase history, usage, performance Segmentations / Profile (“look a like”) models Response / value models Acquisition, up-sell, cross-sell, retention models Profiles Targeting criteria Targeting tools Data leveraged What can we offer?

Who should I target?

What is the most appropriate offer, message, content, pricing? Who’s likely to say yes to my offer?

What mobile tactic should I use?

What is the most appropriate cadence, sequence?

What can I do to encourage “opt in”?

Consumer Compiled data

Summarized Credit / Automotive

Syndicated Market Research data

Response/ usage / purchase data

Client data – contact history, purchase history, usage, performance

Segmentations / Profile (“look a like”) models

Response / value models

Acquisition, up-sell, cross-sell, retention models

Profiles

Respecting the individual Permission-based marketing Internet Able to target, but need to be aware of the “big brother” feeling Email Permission based opt in / opt out – what is the cost of opt out? Cable Able to target, but need to be aware of the “big brother” feeling Mobile Permission based Opt in / opt out

Internet

Able to target, but need to be aware of the “big brother” feeling

Email

Permission based

opt in / opt out – what is the cost of opt out?

Cable

Able to target, but need to be aware of the “big brother” feeling

Mobile

Permission based

Opt in / opt out

Summary Marketers are moving to the digital world quickly – Growth is phenomenal The competition is moving to the digital world – Marketing dollars are pouring in We can help marketers be successful by leveraging our key assets Data Analytics Knowledge

Marketers are moving to the digital world quickly – Growth is phenomenal

The competition is moving to the digital world – Marketing dollars are pouring in

We can help marketers be successful by leveraging our key assets

Data

Analytics

Knowledge

QUESTIONS ?

QUESTIONS ?

© 2009 Experian Information Solutions, Inc. All rights reserved.