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Admonsters Behavioural


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Admonsters presentation about behavioural targeting.

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Admonsters Behavioural

  1. 1. Behavioural Targeting<br />A deep dive<br />
  2. 2. Our definition…<br />An online advertising technology that analyzes a consumer’s past actions to determine the real-time placement of an advertising creative<br />
  3. 3. A quick aside…<br />Internet<br />
  4. 4. It’s a REAL place<br />iCrossing Network Map<br />
  5. 5. Publishers embrace as audience extension opportunities, but sales force & agencies slow to transition<br />Behavioral Targeting appears as a standard part of media plan<br />Demand for more scale<br />Networks are able to support brand advertising<br />Behaviorally Targeted Ad networks were born<br />MASS CONFUSION!<br />10 Years of Behavioral Targeting<br />EVENT<br />IMPLICATION<br />Behavioral Targeting launched in the US; Yahoo and Engage are the main players<br />1999 <br />Failed to move forward due to privacy, data ownership issues and tech limitations<br />On-Site Behavioral Targeting solutions for publishers are introduced<br />2003 <br />2005 <br />2006 <br />2008<br />Multiple companies claiming they offer Behavioral Targeting<br />Audience Science<br />
  6. 6. Key concepts…<br />Audience segments<br />User Interest<br />Recency<br />Frequency<br />Purchasing Behavior<br />Offline behavior<br />
  7. 7. Segments<br />How you ‘slice and dice’ your users<br />Definitions derived by advertisers, your sales team, and you<br />These are the “DNA” of Behavioral Targeting<br />How do you describe the particular audience you’re after<br />E.g.: People interested in purchasing a boat. <br />
  8. 8. These are the KEY to making BT work<br />Created by publisher<br />Which sites and what key-value pairings<br />How many visits/clicks qualify you<br />Recency of activity<br />Combined with other targeting<br />Time of day, Declared, Frequency Capping, etc.<br />Advertisers may (and will) ask for bespoke segments.<br />Example: KW-TREE_HUGGERS-EXXON<br />Behavioral Segments<br />
  9. 9. Boat Purchasers<br />How do you determine it?<br />Keyword searches: Brand names; Common phrases; etc.<br />Sites visited<br />Recency<br />Content interacted with<br />Income<br />Location<br />Past purchases<br />All of these can be or could be used…<br />
  10. 10. Smart Segmenting – Top Tips<br />Standard Segments<br />What areas are most inventory constrained/sell out quickly<br />What sections do you not have, but can build on such as environment/lifestyle<br />Which audience clusters are highly demanded such as ABC1, High earners, etc<br />Specific work place audiences, especially for non B2B sites<br />Bespoke Segments<br />Are highly valuable and client specific, normally built in response to agency briefs<br />Provide ability to reach audience segments based on very niche behaviors (targeting a specific movie launch/concert event)<br />Combining a number key elements from the standard segments<br />Layering Solutions<br />Combine multiple rules to expand the size of the audience, while keeping the audience segment relevant <br />Finding the optimum balance between reach and relevance<br />
  11. 11. Other Key Targeting Terms<br />Declared & Inferred<br />Inferred<br />IP/Geo Targeting (Digital Envoy/Akamai)<br />Physical Location (DMA/Zip)<br />SIC/Company Type<br />Work/Home/School<br />Time of Day<br />Declared<br />Age/Sex/Occupation/etc. <br />Why don’t these meet our definition of behavioral targeting?<br />
  12. 12. Other Key BT Terms<br />Re-targeting<br />Search/Keywords<br />Clickers on Ad Creative<br />Clickers on Site Content<br />Views of Site Content<br />Predictive<br />Uses offline surveys and data<br />Purchase Intent<br />
  13. 13. Sample BT Campaigns<br />A Direct Campaign<br />A Brand Campaign<br />Car Loan<br />People who have visited car review sites<br />In the last 14 days<br />At least twice<br />Who are prone to online purchasing<br />Ford F150 Truck<br />Men who visit sports or “lads” sites<br />In the last 42 days<br />At least 5 times<br />Who make more than $50k<br />
  14. 14. We’re targeting the USER not the CHANNEL for the first time!<br />
  15. 15. So what?<br />
  16. 16. The “Funnel”<br />Users, people browsing<br />People who may be <br />interested in your product<br />Consumers looking for <br />a purchase, researching<br />Traditional Media Planning<br />Ready to buy<br />Purchasing<br />
  17. 17. The “Funnel”<br />Users, people browsing<br />People who may be <br />interested in your product<br />Consumers looking for <br />a purchase, researching<br />With BT<br />Ready to buy<br />Purchasing<br />
  18. 18. BT Growth<br />
  19. 19. Why marketers are exciteda case in point<br />Assume:<br /> Item Costs $20.00 on client’s site<br /> Acquisition (post-click) rate is 5%<br />Scenario 1: A Traditional Buy<br />10M Untargeted Impressions @ $0.50 CPM ($5,000)<br />CTR of %0.1 10,000 Clicks<br />500 purchases<br />$10,000 in Sales or a 100% ROI<br />Scenario 2: A Targeted Buy<br />5M Targeted Impressions @ $1.50 CPM ($7,500)<br />CTR of %1.5 75,000 Clicks<br />3,750 purchases<br />$67,500 in Sales or an 800% ROI<br />
  20. 20. Growth of BT v. Display<br />?<br />
  21. 21. $3.8 BILLION <br />in 2011<br />
  22. 22. Vendor Landscape<br />
  23. 23. A Crowded Field…<br />
  24. 24. With some consolidation…<br />Each company has also developed in-house BT solutions over the years…<br />
  25. 25. ‘BT’ IN PRACTICE<br />Looking Under the Hood<br />
  26. 26. A publisher use case<br />You can increase yield on areas of site that are not in such high demand or have heaps of inventory<br />
  27. 27. Reach<br />CPM<br />A very simple graph…<br />
  28. 28. Reach<br />CPM<br />A very positive result…<br />
  29. 29. Relatively small inventory, high CPM & sell through<br />$4.00 CPM<br />
  30. 30. Lots of inventory, low CPM and sell through<br />$1.00 CPM<br />
  31. 31. Lots of inventory, low CPM and sell through<br />$2.50 CPM<br />
  32. 32. Two Big Wins<br />Create “demand smoothing” across properties<br />Begin to raise CPM on traditionally undersold areas<br />
  33. 33. An agency use case<br />Mine the Gold, not the Ore<br />Old School: Media planner says “Where do I buy to get High earning males 18 – 34 in major urban areas”<br />Channels<br />
  34. 34. An agency use case<br />Mine the Gold, not the Ore<br />New School: Media planner says “I want to buy high earning males 18 – 34 in major urban areas”<br />Buying PEOPLE* not channels<br />*Browsers<br />
  35. 35. Other practical uses<br />Why is BT so hot right now?<br />Growth of user generated pages<br />Leveraging ad networks<br />Reaching toward the promise<br />The “long tail”<br />Speak the language of planners<br />
  36. 36. How it works<br />
  37. 37. How it works<br />
  38. 38. How it works<br />User visits a site<br />Site B<br />(e-mail)<br />Site A<br />(finance)<br />
  39. 39. How it works<br />JavaScript on Site<br />...DM_addToLoc(&quot;Site&quot;,escape(&quot;Telegraph&quot;)); DM_addToLoc(&quot;Level1&quot;,escape(&quot;money&quot;)); DM_addToLoc(&quot;Level2&quot;,escape(&quot;city_news&quot;)); DM_addToLoc(&quot;Level3&quot;,escape(&quot;industry_sectors”…<br />Cookie On user (UserID)<br />E06560_10189<br />
  40. 40. Site creates a userID & cookie<br />
  41. 41. Vendor creates a “segment” cookie<br />
  42. 42. How it works<br />User visits a site<br />Cookie created and user ID created from site A<br />Site B<br />(e-mail)<br />Site A<br />(finance)<br />
  43. 43. How it works<br />User visits a site<br />Site B<br />(e-mail)<br />Site A<br />(finance)<br />
  44. 44. How it works<br />User visits a site<br />Site B<br />(e-mail)<br />Site A<br />(finance)<br />Finance ad served…<br />
  45. 45. In fact, it’s not the technology that’s complex, it’s managing it!<br />
  46. 46. Best Practices<br />Ad Operations<br />
  47. 47. Key Challenges<br />Inventory Management<br />Maintaining & Managing Segments<br />Integration with existing platforms<br />
  48. 48. BT Champion<br />Sales Team<br />BT Vendor(s)<br />Ad Server Vendor<br />Ops Team<br />(Ultimate) Behavioral Champion<br />
  49. 49. Creating Segments<br />Examine high-sell through inventory on site<br />Create segments based on these sections<br />Audience segments you have that don’t directly tie to any specific site content<br />Golf fans or Environment<br />Psychographic Sections<br />“Silver Surfers”<br />High Earners<br />Recent Grads<br />
  50. 50. Creating Segments<br />Use bespoke segmentations carefully<br />Never create a NEW segment when an existing one will do (clutter, confusion)<br />Devise and evangelize CLEAR and CONSISTENT naming conventions<br />KW-SILVER_SURFERS_J&J<br />Not “johnson and johnson Q2 old campaign with search”<br />Regularly scrub your segments!<br />
  51. 51. Managing Segments<br />Use an existing segment instead of creating duplicates when possible<br />Name segments so they are easy to find<br />Run periodic reports showing segments that haven’t been targeted within a given time frame (e.g. 6 months)<br />Set standards for how big a segment should be before it makes the list of standard segments<br />Set a threshold and force attrition when reached<br />
  52. 52. A Note on Segments…<br />As it is up to each publisher to create their own segment definitions they will vary site to site…<br />This could cause issues for agency planners and advertisers down the road<br />
  53. 53. Inventory Forecasting<br />&gt;<br />
  54. 54. Inventory Forecasting<br />Ensure you use wide enough segments<br />The narrower the segment the more volatile your predictions<br />Give bespoke segments time to “fill up”<br />They won’t have any history when you first build them. Give them time before you commit to numbers<br />If possible sell users not impressions<br />Beware of overlaps – your ad system/forecasting system might not be<br />
  55. 55. Pitfalls!<br />Inventory Overlap<br />+<br />2X<br />≠<br />
  56. 56. Pitfalls!<br />Inventory Overlap<br />=<br />+<br />Combining two segments in an inventory forecast will never give you the sum of both segments! There is almost always SOME overlap.<br />
  57. 57. A quick note on pricing<br />Different Philosophies<br />Targeted inventory = Segment Property<br />Targeted inventory = Premium on delivered property<br />Targeted inventory price calculated by supply and demand<br />Sports Channel CPM = $15<br />Sell a segment of sports users for +/- $15 regardless where it runs<br />1<br />
  58. 58. A quick note in pricing<br />Different Philosophies<br />Targeted inventory = Segment Property<br />Targeted inventory = Premium on delivered property<br />Targeted inventory price calculated by supply and demand<br />ROS Sells for = $1<br />Sell a segment of sports users on ROS for $2.50<br />2<br />
  59. 59. A quick note in pricing<br />Different Philosophies<br />Targeted inventory = Segment Property<br />Targeted inventory = Premium on delivered property<br />Targeted inventory price calculated by supply and demand<br />Each segment’s price is dynamically calculated using a pricing system<br />3<br />
  60. 60. System Integration<br />There is not a lot of integration between the 3rd party offerings and<br />Inventory Platforms<br />Order Management Systems<br />Billing Systems<br />You or your champion should work to determine workflow within your organization<br />
  61. 61. Some Implementation Top Tips<br />Get your tech team involved from the beginning (ad tags/CMS/structure)<br />Involve your sales team in implementation<br />Go to market with a pre-defined list of segments<br />The most obvious initial segments will be those that extend your high-demand/high sell through inventory<br />
  62. 62. Other Top Tips<br />Ensure you always update your site metadata when new area launch<br />Ensure consistency between key value pairings and segments across the site<br />Be sure to enter at least the top 20% segments in your inventory DB<br />Never look at BT on its own but as part of a holistic ad system<br />It is NOT a silver bullet<br />
  63. 63. In summary…<br />Marketers are excited as BT can help fullfill the original promise of online<br />It represents a true NEW way of advertising<br />Growth is predicted to be HUGE<br />Vendors are responding to this expect more and expect consolidation<br />The technology itself is not super hard<br />Managing it within your organization can be tricky<br />
  64. 64. In summary…<br />Have a Champion<br />Be smart about your segments<br />Be aware of inventory issues<br />Involve all areas of your organization<br />BT is NOT an island<br />