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Behavioral Targeting Across Online Advertising Channels - Monica Seebohm


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Behavioral Targeting Across Online Advertising Channels

Behavioral targeting and channel development are some of the two most revenue-focused topics in online advertising today. However, knowing how to target customers and on which channel can be challenging for any business. Learn how to improve in both areas while minimizing upfront expenses, doubling the reach of your online advertising and growing your customer base.

* Monica Seebohm, Director of Audience Targeting, West, AudienceScience

Published in: Education, Business, Technology
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Behavioral Targeting Across Online Advertising Channels - Monica Seebohm

  1. 1. Online Marketing Summit<br />San Jose, CA | June 18, 2010<br />Behavioral Targeting Across Online Advertising Channels <br />Monica SeebohmDirector Audience Targeting, West<br />AudienceScience <br />
  3. 3. 3<br />Audience targeting can identify the best consumers for a specific ador campaign and can be used to effectively reach sales, acquisition, and branding goals<br />
  4. 4. 4<br />“Old” Media: Demographics<br />
  5. 5. 5<br />The Target Market: Men Age 25-55<br />
  6. 6. 6<br />T.V. Show for this Demographic<br />
  7. 7. 7<br />Show’s Actual Audience<br />
  8. 8. 8<br />Digital Audience Targeting<br />
  10. 10. <ul><li>Advertisers efficiently reach the right audience with the right message at the right time
  11. 11. Publishers monetize the value of their audience and make more money from undersold ad inventory
  12. 12. Consumers get a more relevant experience</li></ul>Everybody Wins<br />10<br />
  13. 13. Targeting Evolution<br />Targeting Evolution<br />Simple Behavioral<br />Based on simple observations of an audience behavior<br /><ul><li>Creative retargeting
  14. 14. Site retargeting
  15. 15. Click retargeting
  16. 16. Search retargeting</li></ul>Traditional Targeting<br />Based on overall nature of a media property or facts about its audience<br /><ul><li>Contextual
  17. 17. Demographic
  18. 18. Geographic
  19. 19. Day-part</li></ul>Audience Targeting<br />Based on complex models of audience behavior<br /><ul><li>Boolean logic
  20. 20. Contextual Extension
  21. 21. Dynamic Targeting</li></ul>6/18/2010<br />11<br />
  22. 22. What Makes up Targeting? <br />12<br />Audience data comes from many places…<br />Online behavior<br />Registration<br />Workplace<br />attributes<br />Searches<br />Ad views<br />Geo/DMA<br />Transactions<br />3rd party partners<br />Offline data<br />No personally identifiable information is used<br />
  23. 23. Where Are Consumers SpendingTheir Time Online? <br />13<br />
  24. 24. Online Shoppers – Large Percentage of the Online Population<br />14<br />Percentage of Online Users<br />100%<br />80%<br />60%<br />40%<br />20%<br />0%<br />Researched and purchased<br />Researched not purchased<br />Purchased not researched <br />Neither researched nor purchased<br />Q: Which statement best describes your experience shopping online in the past 12 months?<br />Source: Jupiter Research/AudienceScience Consumer Survey 2009 <br />
  25. 25. You Have 3 Opportunities to Connect With Online Users<br />15<br />Percentage of Online Researchers<br />100%<br />80%<br />60%<br />40%<br />20%<br />0%<br />Once<br />Twice<br />Three times<br />Four times<br />5 times<br />5+ times<br />Q: How many separate times would you say you connected to the Internet in order to find information related to your most recent purchase decision?<br />Source: Jupiter Research/AudienceScience Consumer Survey 2009 <br />Q: How many separate times would you say you connected to the Internet in order to find information related to your most recent purchase decision?<br />
  26. 26. Shoppers More Receptive to AT Ads<br />16<br />Percentage of Online Shoppers <br />100%<br />80%<br />60%<br />40%<br />20%<br />0%<br />Behaviorally targeted ads<br />Contextually targeted ads<br />Q: Please Indicate to what extent each statement describes your attitudes: I pay more attention to online ads directly related to my online activity (Contextual); I pay more attention to online ads that fit my specific interests (Behavioral)<br />Source: Jupiter Research/AudienceScience Consumer Survey 2009 <br />
  27. 27. An online user sees more than 1,800 online ads per day, which is an increase of more than 250% since 2004<br />Forrester Research 2009<br />It’s a Cluttered World<br />17<br />
  29. 29. Crowded and Complicated Landscape<br />Agencies<br />Ad Networks<br />Data Providers<br />Data Exchanges<br />Ad Servers<br />Publishers<br />Media Buying <br />Platforms<br />Ad Exchanges<br />DSPs<br />Buying Process Used to Be Simple<br />Advertisers<br />19<br />
  30. 30. Understanding Consumers Drives the Funnel<br />20<br />Brand awareness, recognition, and recall are driven by sophisticated consumer insight <br />Brands mustdrive consumers through the funnel, from awareness to action<br />Commoditized and conversion data is simple and easyto access <br />
  31. 31. Collect Data from Multiple Sources<br /><ul><li>Website partners
  32. 32. Affiliated sites
  33. 33. Offline database
  34. 34. Social media fan pages</li></ul>3rd-Party Data Sources<br /><ul><li>Datalogix
  35. 35. Targus
  36. 36. Nielsen
  37. 37. Others</li></ul>3rd-Party<br />Partners’ Sites<br />Advertiser<br />Data<br /><ul><li>Web site traffic
  38. 38. Registration
  39. 39. Commerce
  40. 40. Offline Data
  41. 41. E-mails
  42. 42. Pre-existing or customized audience segments</li></ul>AudienceScience<br />Segments<br />
  43. 43. Connecting the Data Dots<br />22<br />In data silos<br />In one unified system<br />Online Behavior &IP Attributes<br />Online Behavior &IP Attributes<br />AdInteraction<br />AdInteraction<br />Online Behavior &IP Attributes<br />Online Behavior &IP Attributes<br />Searches & 3rd-Party Partners<br />Searches & 3rd-Party Partners<br />Geo/DMA<br />Geo/DMA<br />WorkplaceAttribute<br />WorkplaceAttribute<br />AdInteraction<br />AdInteraction<br />Offline Data<br />Offline Data<br />Single View of the Consumer<br />Geo/DMA<br />Geo/DMA<br />Searches & 3rd-Party Partners<br />Searches & 3rd-Party Partners<br />Registrations & Transactions<br />Registrations & Transactions<br />Registrations & Transactions<br />Registrations & Transactions<br />WorkplaceAttribute<br />WorkplaceAttribute<br />Offline Data<br />Offline Data<br />Impossible to build advanced audiences<br />
  44. 44. An Integrated Audience Platform<br />23<br />
  46. 46. The Ingredients<br />Audience Data<br />25<br />
  47. 47. Advertisers can use simple data to produce basic audience segments<br />With an integrated audience platform, a wider variety of data results in larger, more targeted audiences<br />26<br />
  48. 48. Identify Segments of Best Customers<br />27<br />
  49. 49. Who Is a Stock Trader?<br />28<br />
  50. 50. Audience Insight<br />29<br />
  51. 51. Segmenting Capabilities<br />Audience Example – Dog Lovers<br />Offline Purchase Propensity – Pet Products<br />Pet Retailers<br />Verified by Third Party Research<br />Offline Registration Data – Dog Owners<br />Catalogues<br />Newsletters<br />Online Dog Shopping Behavior<br />Shopping Sites<br />Dog Enthusiasts<br />Sample: People who read about dogs, searched for information on dog health, used tools to find the best dog breeds<br />Enthusiast Sites<br />
  52. 52. Dynamic Ads<br />31<br /><ul><li>Personalized ads created “on the fly”
  53. 53. Leverage multiple data sources
  54. 54. Different elements of ads optimized based on data and performance
  55. 55. More relevant, better performing advertising </li></li></ul><li>Success Story – Retail<br />32<br />Goals<br /><ul><li>Maximize return on advertising spend for their retail website
  56. 56. Increase sales on and return on ad spend
  57. 57. Behavioral and demographic targeting from helped SKECHERS identify qualified prospects on their site, gauge their interest and intent, and then group these users into segments. Retargeted relevant shoe ads were delivered to these consumers </li></ul>Solution<br /><ul><li>Return on ad spend was 827% over the course of the campaign Brand Metrics (Behavioral targeting over ROS)
  58. 58. Analyzed impression volume vs. click-through rate to ensure qualified traffic through the Run of Network impressions, and conversion rate vs. eCPA for retargeted SKECHERS visitors (90% retargeting vs. 10% RON)
  59. 59. SKECHERS was able to continually refine its creative for maximum results</li></ul>Results<br />
  60. 60. <ul><li>Behavioral allows you get a larger reach into your target consumer than running on context alone
  61. 61. If you choose a micro target it should be because you have a very specific creative message for them
  62. 62. Targeting that costs more than your increased rate of results isn’t worth it</li></ul>In Order to Move Share, You Need Scale<br />33<br />
  63. 63. THE MEDIA LANDSCAPE<br />
  64. 64. The Upside Is Way Up. . .<br />35<br />Media Consumption vs. Ad Spend, 2009 <br /> Note: As a percentage of ad spending on the media channels indicated above only: TV, Newspaper, Radio, Magazines and Online <br />Source: Wall Street research, 2010<br />
  65. 65. . . .With Many Categories Poised to Transfer<br />36<br />Category Share of Total Internet Advertising Spending<br />Source: IAB Internet Advertising Revenue Report, 2009<br />
  66. 66. Leveraging Targeting across All Marketing Channels<br />37<br />It is only the beginning…<br />
  68. 68. Navigating the Privacy Waters<br />39<br />
  69. 69.
  70. 70. The “Cookie” Monster<br />41<br />Cookies: small files placed by a website on your computer that serve as an identifier<br />Cookies simplify and improve the Internet experience<br />Give the Internet “memory” <br />Enable shopping carts<br />Remembered login information<br />Cookies aren’t static – sites modify them all the time as you do different things within their domains<br />Allow frequency capping and other targeting, including behavioral<br />They are not scary<br />Easily removable<br />Managed by user<br />Cookies not bad,<br />Cookies GOOD<br />
  71. 71. <ul><li>Work with sites and networks that give consumers notice and let them opt out
  72. 72. Be aware of restrictions (rules) around collection and use of:
  73. 73. Personally Identifiable Information (PII)
  74. 74. Sensitive Information – such as sensitive health and financial data</li></ul>Respect Consumers’ Privacy <br />42<br />
  75. 75. Industry Support for Privacy<br />43<br /><ul><li>Provide consumers with Notice about collection and use of data for behavioral advertising
  76. 76. Privacy Policy
  77. 77. Notice near targeted ads (enhanced notice)
  78. 78. Enable consumers to opt-out (opt-out page)
  79. 79. Use only non-personally identifiable information (non-PII)
  80. 80. Do not use “sensitive” information (health, financial, etc.)
  81. 81. Broad industry support for these initiatives</li></li></ul><li>Enhanced Notice Example<br />44<br /><ul><li>More prominent notice to consumers of online behavioral advertising
  82. 82. Text/Icon displayed for all OBA ads
  83. 83. Clicking on the notice provides consumers with more information about OBA and the ad itself
  84. 84. Link to opt out</li></li></ul><li>Audience Targeting- the Here and Now<br />45<br />Display Advertising Spend<br />77% of Marketers Currently Use or Plan to Use Audience Targeting for Online Advertising<br />$18,000<br />Does your organization use Audience Targeting for your online media campaigns?<br />Previously used, but stopped<br />$15,000<br />Contextual ads<br />Don’t know<br />4%<br />7%<br />$12,000<br />Static image<br />Not interestedin using<br />11%<br />$9,000<br />Rich media (excluding video)<br />$6,000<br />Currently using<br />56%<br />21%<br />$3,000<br />Planningto use<br />Online video<br />$0<br />2009<br />2010<br />2011<br />2012<br />2013<br />2014<br />Total<br />$7,829<br />$8,395<br />$9,846<br />$11,732<br />$14,339<br />$16,900<br />Base: 156 marketers<br />Source: A commissioned study conducted by Forrester Consulting on behalf of AudienceScience, January 2010 <br /> Source: Forrester’s Online Advertising And Classifieds Model; “US Interactive Marketing Forecast, 2009 To 2014,” Forrester Research Inc., July 6, 2009<br />
  85. 85. Even the President Realizes the Value of Behavioral Targeting<br />46<br />“Both campaigns also used something called online behavioral targeting, but Obama's team proved better at leveraging its effectiveness. Before, candidates had to rely on stereotyping large swaths of voters and making TV spots to suit; this year they've been able to literally formulate an ad campaign for each individual voter. “<br />“Both candidates used the Internet to reach voters. But Team Obama mastered the medium early and exploited it to the hilt. Along the way, it changed politics -- and perhaps government -- forever.”<br />How Obama Won It With the Web<br />By: Chris Dannen<br />- Fast Company<br />Source:<br />
  86. 86. Questions?<br />47<br />
  87. 87. <ul><li>Interactive marketing is growing significantly
  88. 88. We are experiencing a transformation of media buying across channels
  89. 89. This transformation means a shift to more dynamic, data driven audience targeting and media buying
  90. 90. Online advertising industry working to protect consumer privacy while delivering relevant services and content</li></ul>Summary<br />48<br />
  91. 91. Thank You<br /><br />Twitter: @audiencescience<br />49<br />
  92. 92. Thank You<br />Visit<br /><br />for more information<br /> Follow us @OMSummit<br />