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IAB/Winterberry Group Member Webinar: "From Information to Audiences--The Emerging Marketing Data Use Cases"

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IAB/Winterberry Group Member Webinar: "From Information to Audiences--The Emerging Marketing Data Use Cases"

  1. 1. From Information to Audiences:The Emerging Marketing Data Use CasesJonathan Margulies March 1, 2012Managing Director
  2. 2. Thanks to Our Sponsors!
  3. 3. Winterberry Group: Helping Advertising, Marketing, Media andInformation Companies Grow Value Strategic Consulting • Corporate Strategy Development • Market Intelligence • Marketing Process Optimization • M&A Transaction Diligence Support • Investment Banking Services, through
  4. 4. Our AgendaFrom Information to AudiencesWhat inspired the research?What role is data playing indigital advertising today?How should we be thinkingabout our “data strategy” forthe future?
  5. 5. In the Beginning, There Were Subscriber Files… Name: Addre ss: H. Catalogus(0-~1980 A.D.)
  6. 6. … Which Begat Demographic “Selects,” Data Cards and the First TrueCommercial Data Models… NAME ADDRESS PHONE GENDER AGE INCOME H. Catalogus H. Mailinglistus (-~1980 A.D.) (~1980s)
  7. 7. … Which Begat Modeling, Cluster Segmentation, Cooperative Databasesand—With the Arrival of the Internet—E-mail Data… H. Catalogus H. Mailinglistus (-~1980 A.D.) (~1980s)
  8. 8. … Which, In Concert with the Growth of “CRM,” Gave Rise toSophisticated Database Management, CDI and MDM Infrastructures…“Customer File”: Contact Info, Persistent Identifiers CRM, Demographics “Prospect File”: Demographics, Credit Scores Interactions Logs Transactional / Loyalty Records “Single Source of the Truth” Public Records Self-Reported “Intent” Data Mr. John Q. Customer One Response Rate Way H. Analyticus Boston, MA 01234 (~1990-2000s)
  9. 9. But “Evolution” Isn’t Always Painless; The Emergence of Digital ChannelsHas Brought With It a Deluge of New Data Sources Direct Mail Call Centers Catalogs Retail Transactions Print Publications Broadcast Outlets Email
  10. 10. And Those Various Channels Generate—and Rely Upon—a Range ofInformation Types Transactional added from Psychographic and behavioral purchase records, cooperative compiled from surveys, analytical databases models Offline Social compiled from Providers social sites, blogs, Geo- Social Sites / sharing sites, Demographic Offline Online compiled from Compilers Providers ? publishers, Online Data Types: databases and • Registrationsother third parties • Cookies (Flash) / browsing activities Publisher Portals / • Social networks Online • Online purchase data s Compilers • In-market purchase intent Artwork Source: David Harbaugh, Harvard Business Review
  11. 11. … And So “Traditional” Database Infrastructures Are Being Asked to Support Vast New Streams of Unstructured Information ? Behavioral (Clickstream) Intent (Opt-In/Registered and Inferred) Web Analytics (Geo-/ Technographic)“Customer File”: Contact Info and Demographics “Prospect File”: CRM Demographics, Credit Scores Transactional / Loyalty Records Public Records H. Digitalus Self-Reported “Intent” Data (~2009-Today)
  12. 12. But The Integration of “Traditional” and “Digital” Data Poses a Set ofUnique Challenges, Owing To Discrepancies Between… Known Names/Addresses… “Batch” Processing… m er n Q. Custo Way Mr. Joh onse Rate esp One R , M A 01234 n Bosto … and Anonymous IP Addresses … and Real-Time Deployment Campaign-Driven Execution… Single-Channel Focus… … and Continuous Targeting … and Integrated Marketing
  13. 13. Today, The “Use Cases” for Marketing Data Differ Substantially AcrossAddressable Media
  14. 14. Our AgendaFrom Information to AudiencesWhat inspired the research?What role is data playing indigital advertising today?How should we be thinkingabout our “data strategy” forthe future?
  15. 15. Our Panel: Senior Thought Leaders Across the Data Ecosystem “Which Best Describes Your Job Role / Function?”N=176Source: Winterberry Group survey
  16. 16. “To What Extent Are the Following Use Cases Focal Points of Your CURRENT Data-Driven Marketing Activity?” Not a focus of our A significant focus ofSource: Winterberry Group survey current data utilization our current data utilization
  17. 17. “To What Extent Do You Believe The Following Use Cases Will Be Focal Points of Your FUTURE Data-Driven Marketing Activity?” Not likely to be a focus Likely to be a significantSource: Winterberry Group survey of our future data focus of our future data utilization utilization
  18. 18. Use Case: Audience OptimizationIdentifying customers and likely Fundamental Effectiveness: Identifying customersprospects through the integration of Advertising and likely prospects through therich (though disparate) data sources; Benefit integration of first- and third-party datamanaging cross-channel marketing sourcesexecution with the goal of engagingthose audiences strategically—and in Maturity Level Low: Despite technology advances,accordance with consumers’ preferred uncertainty around the optimaladvertising media. approach to structured integration of data Core E-commerce Marketers, Digital Beneficiaries Advertisers, Lead Generation Portals, Publishers (for traffic acquisition) Long-Term High: The ability to define high- Potential potential audiences and facilitate multichannel communication represents a fundamentally new way of marketing
  19. 19. Use Case: Channel Optimization Fundamental Effectiveness/ Efficiency: Enabling “right Advertising message, at the right time, via the rightEnabling “right message, at the right Benefit media” targeting; expanding the role oftime, via the right media” targeting;expanding the role of consumers in consumers in choosingchoosing optimal/preferred optimal/preferred communicationscommunications media. media Maturity Level Low: Traditional marketing efforts are channel-specific; “channel agnostic” internal alignment that most marketers have not yet undertaken Core E-commerce Marketers, Digital Beneficiaries Advertisers, Lead Generation Portals, Publishers (for traffic acquisition) Long-Term High: Media-agnostic communication Potential strategies will enhance consumer engagement (through dialogue and purchase behavior)
  20. 20. Use Case: Advertising Yield Optimization Fundamental Efficiency: Maximizing the value of Advertising available advertising inventory byMaximizing the value of available Benefit identifying and “selling” high-valueadvertising inventory by identifying and“selling” high-value audiences across audiences across individual publisherindividual publisher properties and properties and delivery mediadelivery media. Maturity Level Low: Though technological advances are rapidly allowing audiences to be “sold” across distinct online media platforms, the use case demands true cross-channel yield optimization Core Publishers Beneficiaries Long-Term High: For a publisher community Potential struggling to effectively monetize content, the identification and optimization of audience-centric inventory has the potential to deliver substantial revenue opportunities
  21. 21. Use Case: Targeted Media Buying Fundamental Efficiency/Effectiveness: Enabling the Advertising economical, value-oriented purchase ofEnabling the economical, value- Benefit advertising media; delivering targetedoriented purchase of advertisingmedia; delivering targeted messages to messages to audiences across a diverse,audiences across a diverse, actionable actionable range of channelsrange of channels. Maturity Level Intermediate: “Real-time bidding” (RTB) tools have matured substantially over the past few years, and are in common use by enterprise marketers across verticals Core Marketers (via Demand-Side Platforms), Beneficiaries Digital Agencies/Trading Desks Long-Term High: Meaningful media-buying Potential efficiencies are already accruing to sophisticated users; coordinated use of these applications and the targeted messaging/offer tools will deepen value
  22. 22. “To What Extent is Your Company (Or Your Clients) Realizing Value From the Following Data Sources?“ We (or our clients) are We (or our clients) areSource: Winterberry Group survey realizing no value from realizing significant from these data sources these data sources
  23. 23. “To What Extent Do You Believe Each of the Following Are Driving Deeper Interest/Investment in Marketing Data?” Not a focus of our A significant focus ofSource: Winterberry Group survey current data utilization our current data utilization
  24. 24. “To What Extent Do You See the Following Attributes Driving the Underlying Usefulness of a Marketing Dataset?” Not at all important in Critically important driving the value of a in driving the valueSource: Winterberry Group survey data set of a data set
  25. 25. “To What Extent Do You Believe Each of the Following Are Inhibiting Interest/Investment in Marketing Data?” Not inhibiting interest / Substantially inhibitingSource: Winterberry Group survey investment in interest / investment in marketing data marketing data
  26. 26. Our AgendaFrom Information to AudiencesWhat inspired the research?What role is data playing indigital advertising today?How should we be thinkingabout our “data strategy” forthe future?
  27. 27. The Complexity of Today’s Advertising and Marketing Programs HasDriven Many to Re-Examine their Internal Operating Silos What’s at stake? Holistic Marketing • Data Process Management • Strategic Resources/Authority • Creative Assets Effective People • Investment Capital • Knowledge/Expertise Management Brand Mktg. Digital Direct Mktg. LoBs Sales Fin. Int’l Mktg. IT
  28. 28. Requirement: Improved Operating Structures Holistic Marketing Efficient, Effective Process Management Ad./Mktg. Execution Strategic Effective People Management Utilization Process People Technology of the Design Mgmt. Deploy. Supply Chain
  29. 29. Requirement: Rules-Driven Integration of Disparate Data Sets Anonymization First-Party Aggregation Third-Party
  30. 30. Requirement: A Strong Network of Data-Centric Technology and Service PartnersReal-Time Media Buying Asset ManagementAd Serving Scheduling/RoutingDistributed Mktg. Mgmt. Ad OperationsBudgeting Business Rules Mgmt.Creative Production Creative OptimizationYield Management Data ProcessingAd Verification Web AnalyticsCampaign Management
  31. 31. Requirement: Marketing Data Governance PII vs. Non-PII External & Self-Regulation Transparency Marketing Use Guidelines
  32. 32. “To What Extent Do the Following Reflect Your Long-Term (2013 and Beyond) Priorities for Improving the Usefulness of Marketing Data?” Improving attribution across channels 4.1 Integrating across different data collection… 3.9 Improving access to granular audience… 3.9 Identifying dedicated data staff and building… 3.9 Improving automation abilities 3.9 Improving data hygiene and quality assurance 3.7 Linking data inputs (and the appropriate rules… 3.7 Extracting greater value from the use of data… 3.7 Simplifying the processes by which third-party… 3.6 Reducing latency / processing data more rapidly 3.5 Storing / warehousing data more efficiently 3.4 Clarifying regulatory barriers to data utilization 3.3 1 2 3 4 5 Not a priority for us Very important priority forSource: Winterberry Group survey (or our clients) in the us (or our clients) in the long term long term
  33. 33. Thanks to Our Sponsors and Contributors!Jonathan MarguliesManaging Directorjmargulies@winterberrygroup.com(212) 842-6031www.winterberrygroup.com/ourinsightswww.iab.net/marketingdatause

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