White Paper: From Mad Men to Mad Scientist


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This white paper describes how marketers and advertisers can use audience data to:

Go beyond retargeting
Create cross-channel impact
Increase rate cards
Uncover new and highly valuable segments
Optimize keywords and creatives with UGC

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White Paper: From Mad Men to Mad Scientist

  2. 2. SORRY, DON DRAPER Regarded as the golden days of advertising, the 1950s were full of notorious “ad men” ablaze with the realization that they could satisfy the masses and make millions by selling dreams and desires - not products. To achieve this, leading brands began collecting publicly available demographic data like age, gender and household income in attempt to bucket consumers into basic personas like “moms” and “teens,” and reach them with more relevant and timely messages at scale. While Don Draper & Co’s quest for more personal campaigns was valid, their approach is discredited by the simple fact that not every mom wants a vacuum cleaner for Christmas. GIGYA.COM | 2
  3. 3. GIGYA.COM | THE RISE (AND FALL) OF THE COOKIE The rise of the Internet offered a much more immediate and individualistic view of consumers, ushering in a new advertising model that traded in stereotypical blanket personas for behavioral targeting using 3rd party cookies. 3 This seemed like a great strategy in the early days of the web when consumers were hiding behind their technicolor iMac G3s. But the surge of mobile and social technologies has crumbled 3rd party cookies into mere trails of crumbs for brands to try and piece together. COOKIES 1 device 0 permissions A handful of users Pinch of browsing history Track consumer behavior across Internet until deleted! ?! !
  4. 4. GIGYA.COM | NOW EVERYONE KNOWS YOU’RE A DOG With modern consumers connecting with friends, family and brands via social networks, their real identities have become seamlessly intertwined with their “virtual lives.” Every day millions of consumers publicly share information about their relationships, hobbies, locations, desired products and plans for the weekend. This level of available data hardly calls for the need to track arbitrary behaviors across the Internet. Not to mention, the growing number of connected devices - smartphones, tablets, TVs, wristbands - makes this next to impossible. 4 With direct, real-time connections to their favorite brands, consumers are no longer willing to weed through irrelevant messaging and experiences - they demand relevance. And the key to creating relevance in today’s big data landscape is identity.
  5. 5. GIGYA.COM | BIG DATA = BIG OPPORTUNITIES With today’s number of channels and devices, consumers are creating over 2.5 exabytes of data - that’s more than 2.5 billion gigabytes - every single day. What’s more, about 75% of this data is unstructured, coming from sources like social networks, text messages and videos (BBC). Knowing this amount of “big data” is out there, how do you even begin to capture it? How do you filter through it and determine what’s important? And how do you act on it in a meaningful, purpose-driven way? These types of questions call for a new data-driven, identity-centric advertising approach. This white paper examines how advertisers can successfully leverage and optimize audience data and use it to: 5 Go beyond retargeting Create cross-channel impact Increase rate cards Uncover new and highly valuable segments Optimize keywords and creatives with UGC
  6. 6. Strategy #1 GO BEYOND RETARGETING
  7. 7. IRRELEVANT ADS ARE BAD FOR BUSINESS GIGYA.COM | 7 We’ve all been there - you have a moment of weakness and just can’t resist clicking on that ad from the local pet store with the picture of that adorable kitten. Retargeting ensues, and you’re bombarded with ads for Whiskas and catnip for weeks. If only they knew you’re a dog person! 58% of consumers admit to being annoyed by ads they don’t need (Marketing Charts). Nothing is more annoying (and creepy) than being followed across the Internet with ads for products and services you simply don’t want or need. 88% of US consumers claim that they have been inundated with “online ad spam,” and 9/10 say this has led them to take actions ranging from leaving a website to boycotting a brand (Marketing Charts).
  8. 8. RELEVANCE STARTS WITH 1ST PARTY DATA GIGYA.COM | The only way to continuously serve consumers more relevant and timely ads is by having a clear understanding of who they are - which is something that cookies simply cannot give you. 8 Leading brands are turning to 1st-party data collection techniques, like social login, to get an accurate, real-time view of consumer identity and go beyond impersonal retargeting. Social login gives brands access to the rich data points housed in users’ social profiles, including their interests, relationships, favorite brands, locations and more.
  9. 9. With a clear view of consumer identity, brands gain the ability to nurture customer relationships in more personal and meaningful ways. Tying profile data captured via social login to users’ on-site behaviors gives brands the ability to “retarget” consumers with ads that speak to their unique, real-time GIGYA.COM | PERSONALIZED PLACEMENTS interests, life events, locations, and so much more. For example, remember the adorable kitten ad? If your local pet store were using first-party login data, it would know you have 2 dogs and love hiking, and could serve you ads for retractable leashes and tick prevention medicine instead. 9 86% of consumers say personalization plays a role in their purchasing decisions (Infosys), and leads who are nurtured with targeted content produce a 20% increase in sales opportunities (DemandGen).
  10. 10. GIGYA.COM | PRIVACY VS PERSONALIZATION Making the transition from 3rd party to 1st party data is also a way to combat growing data privacy concerns and increase consumer trust. Being unknowingly “cookied” as they make their way across the web has taken its toll on consumers, so much so that 71% state that they are now very concerned about online companies selling or sharing information about them without their permission (ConsumerReports). Modern consumers recognize irrelevant and unwanted ads as evidence of their data being collected, bought and sold without their consent. 10 1st party data collection techniques are transparent and direct, with consumers opting in to share specific information with select brands. Using these permission-based insights to reach consumers with more relevant and timely ads not only increases targeting accuracy and conversion rates, but it also builds consumer trust.
  12. 12. GIGYA.COM | HOUSTON, WE HAVE A PROBLEM Unfortunately for marketers still depending on 3rd party cookies to re-target ads to consumers, cookies do not translate to mobile devices. And with mobile now accounting for nearly ¼ of all Internet usage, this is a problem (Google). 90% of people move between devices to accomplish a goal, whether it’s via smartphone, tablet or TV (Mobify). Not to mention, many of these devices are shared between multiple consumers with varying demographics, interests and needs. Without the ability to recognize individual consumers across each of these channels, how can advertisers reach them with the types of influential messages that drive desired behaviors? 12 More Mobility, More Problems (for Marketers and IT) Consumers use an average of 3 different screen combinations each day (HubSpot) Over 20% of consumers ages 18-49 visit websites from 4 different devices each week (Experian) 67% of online shoppers admit to having recently made a purchase that involved more than one channel (Zendesk)
  13. 13. GIGYA.COM | SINGLE VIEW OF CONSUMER IDENTITY 1st party login data gives businesses a single view into consumer identity, effectively tying all cross-channel activity back to one identifiable user profile. This enables advertisers to create unity across channels and build a cohesive, influential strategy where each consumer interaction informs the next. 13 Pssst...Here’s a Tip: To make your cross-channel strategy as seamless as possible, aggregate all omni-channel data into a single, centralized database. Be sure this database has direct integrations and bidirectional data feeds with your existing third-party marketing platforms so that all your campaigns stay synchronized and relevant.
  14. 14. GIGYA.COM | INFORMING PROGRAMMATIC BUYING The rise of cross-channel commerce has elevated the need for programmatic ad buying, which automatically deploys placements based on a series of consumer triggers. Using real-time bidding (RTB), advertisers can buy these placements in real-time to reach consumers with just the right messages at precisely the right times. For example, say a consumer logs-in to a major TV network site using her Facebook account. She then streams two episodes of her favorite reality TV program. That network could then choose to dynamically serve sponsored posts for its upcoming reality series to her the next time she logs-in to Facebook on her smartphone. 14 This degree of relevance not only creates more positive experiences for consumers, but it also significantly improves advertiser CTRs and CPCs. To effectively leverage programmatic buying, a unified view of consumer demographic and behavioral data across channels and devices is a must-have.
  15. 15. Strategy #3 INCREASE RATE CARDS
  16. 16. GROW USER ACQUISITION BY OVER 50% GIGYA.COM | At its most basic level, social login reduces barrier to site entry by giving consumers a fast and easy way to authenticate their identities - no username or password required. Need proof? Nearly 20% of Gigya clients using Social Login have seen a more than 50% increase in registration conversions! What’s more, because they have willingly entered a personal relationship with your brand, socially logged-in users behave differently from anonymous or traditionally logged-in consumers. With personalized user experiences and the ability to seamlessly connect with their communities on-site, socially logged-in users are proven to spend an average of 56% more time on site and view 67% more pages. 16
  17. 17. GIGYA.COM | INCREASING VALUE FOR ADVERTISERS AND CUSTOMERS 1 in 3 consumers state that they will leave a website after seeing a single irrelevant ad (Corporate Ads). Insights into consumers’ real-time locations, relationships, recently shared content and more enables publishers to better match placements with their unique audience, eliminating irrelevant user experiences. 17 While the level of customer insight and engagement generated by social login is important for brands looking to convert consumers, it is also key for publishers looking to drive subscription value and sell ad space. And your readers aren’t the only ones who will appreciate more tailored placements - watch your rate cards skyrocket along with advertisers’ confidence that they are reaching the right audience. A recent Forrester report documents how 2 major publishing brands experienced a 50% increase in ad revenue in just one year after implementing first-party data collection and management infrastructure.
  18. 18. GIGYA.COM | FOR EXAMPLE... Using Gigya’s social and traditional sign-in, the broadcasting brand gains permission-based access to users’ first-party data. All data is stored within Gigya’s centralized Identity Storage database, which provides a unified view of consumer identity across channels, and seamlessly integrates with Adobe AudienceManager. The broadcasting company is then able to dynamically serve display ads based on viewers’ genders, interests, locations and more, resulting in a 22% improvement in targeted ad performance. 18 Following the launch of its new reality series, a major television broadcasting company recognized the opportunity to create more relevant site experiences for the millions of visitors to the show’s website while driving increased advertiser revenue.
  20. 20. GIGYA.COM | FROM CTR TO ROI Advertisers have spent decades pouring over metrics like impressions and CTR. These metrics are great for evaluating ad performance - but do little to tell you about the consumers clicking on your ads and how their behaviors impact your bottom line. The ability to tie consumer identity and cross-channel activity directly to KPIs and purchase behaviors empowers you to segment your audiences and campaigns in more strategic ways, driving desired behaviors and advertising ROI. 20
  21. 21. GIGYA.COM | AUDIENCE SEGMENTATION 1st party audience data enables you to start asking questions like: What are the unifying demographics of your most loyal customers? Are there any common interests between visitors that continuously abandon cart? Which devices are consumers using to interact with your brand? To checkout? Do consumers that share particular content spend more time on site? 21 Bucketing consumers into particular segments based on the answers to these types of questions allows you to optimize and scale your ad creatives, targeting and placements to reach the right consumers, with the right messages at the right times.
  22. 22. GIGYA.COM | AUDIENCE SEGMENT EXAMPLES Here are two examples of inquiries you might make to help identify and reach two key consumer segments: 22 Bargain Hunters Multi-channel Consumers ! Number of brands liked/followed across social networks Number of mobile check-ins ! Shopping cart abandonment rate ! Volume of event-based shares via mobile apps ! Offers claimed and redeemed on Facebook ! Social login network preferences ! Percentage of checkouts with coupons/discount codes used Mixture of mobile vs. desktop activity for email opens, ad clicks, shares, checkout and more A successful brand would separate these segments into two different campaigns, targeting “Bargain Hunters” with offers for free or discounted merchandise, and “Multi-channel Consumers” with a higher percentage of mobile vs. desktop ads.
  23. 23. GIGYA.COM | SURPRISE - MEET YOUR NEW AUDIENCE! 23 With this granularity of insight into the types of consumers driving value for your business, expect a few surprises. Didn’t know that your best customers are avid Star Wars fans? Or that content featuring photos of lizards garners twice as much engagement from male users over 25? Well, now you know! Using first-party data to uncover unintuitive yet valuable audience segments is a huge opportunity to expand your customer base and increase conversion rates. You might even discover that the consumers clicking on your ads are totally different from those actually driving revenue for your business.
  24. 24. GIGYA.COM | LOOK-ALIKE MODELS 24 By understanding the characteristics of your best customers - whether they be Star Wars-loving 25-30 year old males or women 18-25 who can’t get enough of Justin Timberlake - your business can create the segment to end all segments: look-alikes. A 20/20 view of the types of customers driving the most value for your business gives you the power to target and reach consumers who have similar profiles and, in turn, are most likely to convert. LOOK-ALIKE SUCCESS STORY By prompting fans to login socially to its website, a major sports and athletics organization was able to collect rich, permission-based data around these users’ interests and on-site behaviors. It soon discovered a correlation between its most engaged customers and those within a particular demographic profile who shared interest in a certain TV show, sports team and mobile app. The brand then used this information to build a look-alike target segment and reach users with similar profiles via Facebook promotions. This look-alike strategy resulted in twice the conversion rate at half the price!
  26. 26. Word-of-mouth generates 2X the sales of paid advertising (Branderati). ! GIGYA.COM | USER-GENERATED CONTENT 26 “User-generated content” (UGC) refers to text and images that are created, uploaded or syndicated by your customers. Leaving comments, writing reviews, rating products and sharing items across social networks are all forms of user-generated content. Not only does user-generated content create free word-of-mouth advertising for your brand, but it also gives you first-party insight into the content and creatives that generate interest and engagement among your target audience. PSSST...HERE’S A TIP: To ensure that your site’s UGC is valuable and high-quality, prompt users to authenticate their identities before posting or syndicating. This also enables your brand to tie content creation directly to revenue and other KPIs via consumer identity.
  27. 27. GIGYA.COM | CREATIVE GUIDANCE 27 In the days of Don Draper, advertisers would lock themselves in rooms for days struggling to create ad copy and imagery that would spark an audience reaction. Of course, this strategy still exists today, but with Facebook users alone sharing over 684k pieces of content every minute (Domo), today’s connected consumers have made it infinitely easier to optimize your creative strategy. Did a particular tweet get hundreds of retweets? Sponsor it. Are readers commenting like crazy on a certain blog post? Turn the title into ad copy. Notice a new Instagram photo trending among your fan base? There’s the visual for your next print campaign. FOR EXAMPLE… Remember the major sports and athletics organization that used look-alike targeting to improve their CTR and CPC? This same organization turned to UGC to inform their ad creatives by using the top socially shared images on their site as the main visuals in their Facebook promotions!
  28. 28. GIGYA.COM | KEYWORD DISCOVERY 28 By putting your brand and offerings into terms consumers are actually using, UGC also helps advertisers reach desired audiences with a much more tactical and behind-the-scenes strategy: search discovery. Not only do customer comments and reviews help improve searchability and organic ranking, but they also uncover new keywords. These keywords can be bought and targeted across channels to expand reach and boost discovery. Since these keywords are often less intuitive, this UGC strategy can also help lower the cost of paid search. Websites that feature ratings and reviews typically experience a 10-20% increase in CTR on search engine results pages (Inchoo).
  29. 29. The days of Don Draper and his “ad men” are far behind us - but modern marketers are still struggling to implement the technology and strategies needed to reach consumers with relevance across placements. GIGYA.COM | FROM MAD MEN TO MAD SCIENTISTS 29 We’ve covered how 1st party audience data can help your business increase ad revenue - now here’s a definitive checklist to help you make the leap from “mad men” to “mad scientists:” Implement Social Login to identify consumers at point of site entry Aggregate all cross-channel consumer data into a single user database Integrate this database with other 3rd-party marketing platforms Tie all social profile and behavioral data to direct revenue and KPIs Leverage user-generated content like comments, reviews and sharing
  30. 30. ABOUT GIGYA Gigya's Customer Identity Management Platform helps companies build better customer relationships by turning unknown visitors into known, loyal and engaged customers. With Gigya’s technology, businesses increase registrations and identify customers across devices, consolidate data into rich customer profiles, and provide better service, products and experiences by integrating data into marketing and service applications. Gigya's platform was designed from the ground up for social identities, mobile devices, consumer privacy and modern marketing. Gigya provides developers with the APIs they need to easily build and maintain secure and scalable registration, authentication, profile management, data analytics and third-party integrations. More than 700 of the world’s leading businesses such as Fox, Forbes, and Verizon rely on Gigya to build identity-driven relationships and to provide scalable, secure Customer Identity Management. ! To learn more about how Gigya can help your business increase ad revenue, visit gigya.com, or call us at 888.660.1469. Gigya does not own any end user data or maintain any other rights to this data, other than utilizing it to make Gigya's services available to our clients and their end users. Gigya acts as an agent or back-end vendor of its client's website or mobile application, to which the end user of our client granted permissions (if applicable). Gigya facilitates the collection, transfer and storage of end user data solely on behalf of its clients and at its clients' direction. For more information, please see Gigya's Privacy Policy, available at http://www.gigya.com/privacy-policy/. Gigya, the Gigya logo, and Customer Identity Management Platform are either registered trademarks or trademarks of Gigya Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners. © 2014 Gigya Incorporated. All rights reserved.