April 23, 2013




eXelate state of the industry



 audience targeting – what’s working


                                       eXelate.com
                                       @eXelate
agenda   •            executive summary

         •            survey methodology

         •            results

         •            conclusion




         © 2013 eXelate Inc. Confidential and Proprietary.   2
executive summary




       © 2013 eXelate Inc. Confidential and Proprietary.   3
executive summary   •         audience targeting continues to grow with 80%+ of advertisers and 90%+
                              of agencies and networks/exchanges/DSPs utilizing the capability


                    •         over 60% of advertisers prefer to utilize 3rd party online data as the
                              preferred data source for audience targeting


                    •         over 80% of the ecosystem find audience targeting an effective
                              marketing strategy


                    •         3rd party online data is the highest ranked data set for both DIRECT
                              RESPONSE and BRANDING campaigns for both advertisers and agencies


                    •         69%+ of advertisers, agencies, and networks/exchanges/DSPs plan to
                              increase their audience targeting budgets with an average budget
                              increase of 38%


                    © 2013 eXelate Inc. Confidential and Proprietary.   4
about eXelate                               smart data. smarter decisions.
                                                                         TM




the smart data
company that
powers smarter
marketing
decisions




                 © 2013 eXelate Inc. Confidential and Proprietary.   5
survey methodology




       © 2013 eXelate Inc. Confidential and Proprietary.   6
survey        • 650+ digital industry respondents
methodology        •         Advertiser
                   •         Agency
                   •         Network/Exchange/DSP


              • conducted in March-April 2013

              • online survey

              • focus on audience targeting strategy and execution

              • goal – how can we improve audience targeting

              © 2013 eXelate Inc. Confidential and Proprietary.   7
results




          © 2013 eXelate Inc. Confidential and Proprietary.   8
who employs                                  % of ecosystem utilizing audience targeting
audience
                           100%
targeting?
                              95%
all players north of
80% utilization and           90%                                                     Advertiser
growing
                              85%                                                     Agency
                              80%
                                                                                      Network/Exchange/
                              75%                                                     DSP

                              70%
                                                                2012           2013

                       © 2013 eXelate Inc. Confidential and Proprietary.   9
what platform do                                  % using platforms for audience targeting
you use for
                           90%
audience
                           80%
targeting?                 70%
                           60%
                           50%                                                  Advertiser
the pc remains the
preferred                  40%
platform, but mobile       30%                                                  Agency
catching up quickly        20%
                           10%                                                  Network/Exchange/
                            0%
                                                                                DSP




                       © 2013 eXelate Inc. Confidential and Proprietary.   10
advertisers prefer                         preferred data source for audience targeting
3rd party online and
1st party CRM data       70%
                         60%
                         50%
                         40%
                         30%
                         20%
                         10%
                             0%
                                                3rd party                   3rd party     1st party CRM     1st party 1st party social
                                               online data                 offline data        data       custom data   media data
                                   Advertisers
                       © 2013 eXelate Inc. Confidential and Proprietary.   11
agencies prefer 3rd                       preferred data source for audience targeting
party online data
                        90%
with an even
                        80%
demand for the          70%
rest except social      60%
                        50%
                        40%
                        30%
                        20%
                        10%
                         0%
                                    3rd party 3rd party 1st party 1st party 1st party
                                   online data offline data CRM data custom data social
                                                                                media data
                                Agencies

                      © 2013 eXelate Inc. Confidential and Proprietary.   12
audience targeting                                                              Advertisers
effectiveness
                                                                          2%

                                                                8%                            Very Effective
80%+ of advertisers
find audience                                     6%
targeting effective                                                                29%        Somewhat Effective

                                                                                              Neither effective or
                                                                                              ineffective
                                                                                              Somewhat
                                                                                              ineffective
                                                           55%                                Not at all effective




                      © 2013 eXelate Inc. Confidential and Proprietary.    13
audience targeting                                                               Agencies
effectiveness                                                         2% 0%

                                                                       4%                   Very Effective
90%+ of agencies find
audience targeting
effective                                                                                   Somewhat Effective
                                                                                   36%

                                                                                            Neither effective or
                                                                                            ineffective
                                                                                            Somewhat
                                                58%                                         ineffective
                                                                                            Not at all effective




                        © 2013 eXelate Inc. Confidential and Proprietary.   14
agencies use 3rd                           % of digital advertising campaigns use third
party data in 50%+
                                                            party data
of their campaigns
                                                Advertiser                    Agency      Network/Exchange/DSP
                                                                                   54%

                                                               39%                                 39%




                                                                                   2013

                     © 2013 eXelate Inc. Confidential and Proprietary.   15
advertisers prefer
                                                             ranking for most effective targeting in
3rd party online                                                 DIRECT RESPONSE campaigns
data for DIRECT
RESPONSE
                     1st-party social media data                                                               4.15
campaigns

                                  1st-party custom data                                                 3.24


                                         1st-party CRM data                                    2.27


                                    3rd-party offline data                                             3.10


                                    3rd-party online data                                    1.95

                                                                              1 = best   5= worst
                     © 2013 eXelate Inc. Confidential and Proprietary.   16
advertisers prefer
                                                              ranking for most effective targeting in
3rd party online                                                     BRANDING campaigns
data for BRANDING
campaigns as well
                     1st-party social media data                                                               4.12

                                   1st-party custom data                                                3.07

                                          1st-party CRM data                                        2.81

                                    3rd-party offline data                                          2.82

                                     3rd-party online data                                   1.98

                                                                              1 = best   5= worst
                     © 2013 eXelate Inc. Confidential and Proprietary.   17
agencies prefer 3rd
                                                               ranking for most effective targeting in
party online and 1st                                               DIRECT RESPONSE campaigns
party CRM for
DIRECT RESPONSE
                       1st-party social media data                                                               4.07
campaigns

                                    1st-party custom data                                               2.86


                                           1st-party CRM data                                    2.27


                                      3rd-party offline data                                              3.26


                                      3rd-party online data                                      2.27

                                                                                1 = best   5= worst
                       © 2013 eXelate Inc. Confidential and Proprietary.   18
agencies prefer                                               ranking for most effective targeting in
utilizing 3rd party                                                  BRANDING campaigns
online data for
BRANDING              1st-party social media data                                                              3.86
campaigns

                                   1st-party custom data                                                3.12


                                          1st-party CRM data                                         2.92


                                     3rd-party offline data                                          2.92


                                     3rd-party online data                                    1.88

                                                                               1 = best   5= worst
                      © 2013 eXelate Inc. Confidential and Proprietary.   19
what % of the
ecosystem will
increase their
audience targeting
budget?                      69%                                            advertisers
                                                                            budgets will increase by 43%


across the board
increase in budgets
                             68%                                          agencies
                                                                          budgets increase by 30%




                                                                                        of networks/
                             89%                                                        exchanges/DSPs
                                                                                        budgets increase by 40%

                      © 2013 eXelate Inc. Confidential and Proprietary.      20
advertisers employ                                             audience targeting approaches
an equal mix of
                         70%
behavioral and
demographic data         60%
                         50%
                         40%
                         30%
                         20%
                         10%                                                                   Advertisers
                          0%




                     © 2013 eXelate Inc. Confidential and Proprietary.   21
agencies employ all                                             audience targeting approaches
types of targeting
                          80%
approaches
                          70%
                          60%
                          50%
                          40%
                          30%
                          20%
                                                                                                Agencies
                          10%
                           0%




                      © 2013 eXelate Inc. Confidential and Proprietary.   22
most advertisers
and agencies have                                               % with campaign ratings solution
not implemented a
campaign ratings                             Advertisers                                       Agencies
solution
                                                                                         10%
                                                                                 Yes                      Yes
                                        14%
agencies getting near                                        29%
a tipping point for                                                              No                40%    No
campaign ratings
                                     57%                                         Don't   50%              Don't
                                                                                 Know                     Know




                        © 2013 eXelate Inc. Confidential and Proprietary.   23
agencies see more
value in campaign         % who plan to implement a campaign ratings solution
ratings solutions
than advertisers                           Advertisers                                      Agencies

                                                                             Yes                       Yes
                           30%                           30%                         28%
                                                                             No                46%     No

                                                                             Don't    26%              Don't
                                          40%                                Know                      Know




                    © 2013 eXelate Inc. Confidential and Proprietary.   24
conclusion




       © 2013 eXelate Inc. Confidential and Proprietary.   25
conclusion   •         audience targeting continues to grow with 80%+ of advertisers and
                       90%+ of agencies and networks/exchanges/DSPs utilizing the
                       capability

             •         over 60% of advertisers prefer to utilize 3rd party online data as the
                       preferred data source for audience targeting

             •         over 80% of the ecosystem find audience targeting an effective
                       marketing strategy

             •         3rd party online data is the highest ranked data set for both DIRECT
                       RESPONSE and BRANDING campaigns for both advertisers and
                       agencies

             •         69%+ of advertisers, agencies, and networks/exchanges/DSPs plan to
                       increase their audience targeting budgets with an average budget
                       increase of 38%


             © 2013 eXelate Inc. Confidential and Proprietary.   26
thank you!



Khurrum Malik
eXelate
Chief Marketing Officer
                          eXelate.com
+1 703-347-3875
                          @eXelate
km@exelate.com
@trihoos

DBS: State of the Industry with eXelate: Audience Targeting: What’s Working?

  • 1.
    April 23, 2013 eXelatestate of the industry audience targeting – what’s working eXelate.com @eXelate
  • 2.
    agenda • executive summary • survey methodology • results • conclusion © 2013 eXelate Inc. Confidential and Proprietary. 2
  • 3.
    executive summary © 2013 eXelate Inc. Confidential and Proprietary. 3
  • 4.
    executive summary • audience targeting continues to grow with 80%+ of advertisers and 90%+ of agencies and networks/exchanges/DSPs utilizing the capability • over 60% of advertisers prefer to utilize 3rd party online data as the preferred data source for audience targeting • over 80% of the ecosystem find audience targeting an effective marketing strategy • 3rd party online data is the highest ranked data set for both DIRECT RESPONSE and BRANDING campaigns for both advertisers and agencies • 69%+ of advertisers, agencies, and networks/exchanges/DSPs plan to increase their audience targeting budgets with an average budget increase of 38% © 2013 eXelate Inc. Confidential and Proprietary. 4
  • 5.
    about eXelate smart data. smarter decisions. TM the smart data company that powers smarter marketing decisions © 2013 eXelate Inc. Confidential and Proprietary. 5
  • 6.
    survey methodology © 2013 eXelate Inc. Confidential and Proprietary. 6
  • 7.
    survey • 650+ digital industry respondents methodology • Advertiser • Agency • Network/Exchange/DSP • conducted in March-April 2013 • online survey • focus on audience targeting strategy and execution • goal – how can we improve audience targeting © 2013 eXelate Inc. Confidential and Proprietary. 7
  • 8.
    results © 2013 eXelate Inc. Confidential and Proprietary. 8
  • 9.
    who employs % of ecosystem utilizing audience targeting audience 100% targeting? 95% all players north of 80% utilization and 90% Advertiser growing 85% Agency 80% Network/Exchange/ 75% DSP 70% 2012 2013 © 2013 eXelate Inc. Confidential and Proprietary. 9
  • 10.
    what platform do % using platforms for audience targeting you use for 90% audience 80% targeting? 70% 60% 50% Advertiser the pc remains the preferred 40% platform, but mobile 30% Agency catching up quickly 20% 10% Network/Exchange/ 0% DSP © 2013 eXelate Inc. Confidential and Proprietary. 10
  • 11.
    advertisers prefer preferred data source for audience targeting 3rd party online and 1st party CRM data 70% 60% 50% 40% 30% 20% 10% 0% 3rd party 3rd party 1st party CRM 1st party 1st party social online data offline data data custom data media data Advertisers © 2013 eXelate Inc. Confidential and Proprietary. 11
  • 12.
    agencies prefer 3rd preferred data source for audience targeting party online data 90% with an even 80% demand for the 70% rest except social 60% 50% 40% 30% 20% 10% 0% 3rd party 3rd party 1st party 1st party 1st party online data offline data CRM data custom data social media data Agencies © 2013 eXelate Inc. Confidential and Proprietary. 12
  • 13.
    audience targeting Advertisers effectiveness 2% 8% Very Effective 80%+ of advertisers find audience 6% targeting effective 29% Somewhat Effective Neither effective or ineffective Somewhat ineffective 55% Not at all effective © 2013 eXelate Inc. Confidential and Proprietary. 13
  • 14.
    audience targeting Agencies effectiveness 2% 0% 4% Very Effective 90%+ of agencies find audience targeting effective Somewhat Effective 36% Neither effective or ineffective Somewhat 58% ineffective Not at all effective © 2013 eXelate Inc. Confidential and Proprietary. 14
  • 15.
    agencies use 3rd % of digital advertising campaigns use third party data in 50%+ party data of their campaigns Advertiser Agency Network/Exchange/DSP 54% 39% 39% 2013 © 2013 eXelate Inc. Confidential and Proprietary. 15
  • 16.
    advertisers prefer ranking for most effective targeting in 3rd party online DIRECT RESPONSE campaigns data for DIRECT RESPONSE 1st-party social media data 4.15 campaigns 1st-party custom data 3.24 1st-party CRM data 2.27 3rd-party offline data 3.10 3rd-party online data 1.95 1 = best 5= worst © 2013 eXelate Inc. Confidential and Proprietary. 16
  • 17.
    advertisers prefer ranking for most effective targeting in 3rd party online BRANDING campaigns data for BRANDING campaigns as well 1st-party social media data 4.12 1st-party custom data 3.07 1st-party CRM data 2.81 3rd-party offline data 2.82 3rd-party online data 1.98 1 = best 5= worst © 2013 eXelate Inc. Confidential and Proprietary. 17
  • 18.
    agencies prefer 3rd ranking for most effective targeting in party online and 1st DIRECT RESPONSE campaigns party CRM for DIRECT RESPONSE 1st-party social media data 4.07 campaigns 1st-party custom data 2.86 1st-party CRM data 2.27 3rd-party offline data 3.26 3rd-party online data 2.27 1 = best 5= worst © 2013 eXelate Inc. Confidential and Proprietary. 18
  • 19.
    agencies prefer ranking for most effective targeting in utilizing 3rd party BRANDING campaigns online data for BRANDING 1st-party social media data 3.86 campaigns 1st-party custom data 3.12 1st-party CRM data 2.92 3rd-party offline data 2.92 3rd-party online data 1.88 1 = best 5= worst © 2013 eXelate Inc. Confidential and Proprietary. 19
  • 20.
    what % ofthe ecosystem will increase their audience targeting budget? 69% advertisers budgets will increase by 43% across the board increase in budgets 68% agencies budgets increase by 30% of networks/ 89% exchanges/DSPs budgets increase by 40% © 2013 eXelate Inc. Confidential and Proprietary. 20
  • 21.
    advertisers employ audience targeting approaches an equal mix of 70% behavioral and demographic data 60% 50% 40% 30% 20% 10% Advertisers 0% © 2013 eXelate Inc. Confidential and Proprietary. 21
  • 22.
    agencies employ all audience targeting approaches types of targeting 80% approaches 70% 60% 50% 40% 30% 20% Agencies 10% 0% © 2013 eXelate Inc. Confidential and Proprietary. 22
  • 23.
    most advertisers and agencieshave % with campaign ratings solution not implemented a campaign ratings Advertisers Agencies solution 10% Yes Yes 14% agencies getting near 29% a tipping point for No 40% No campaign ratings 57% Don't 50% Don't Know Know © 2013 eXelate Inc. Confidential and Proprietary. 23
  • 24.
    agencies see more valuein campaign % who plan to implement a campaign ratings solution ratings solutions than advertisers Advertisers Agencies Yes Yes 30% 30% 28% No 46% No Don't 26% Don't 40% Know Know © 2013 eXelate Inc. Confidential and Proprietary. 24
  • 25.
    conclusion © 2013 eXelate Inc. Confidential and Proprietary. 25
  • 26.
    conclusion • audience targeting continues to grow with 80%+ of advertisers and 90%+ of agencies and networks/exchanges/DSPs utilizing the capability • over 60% of advertisers prefer to utilize 3rd party online data as the preferred data source for audience targeting • over 80% of the ecosystem find audience targeting an effective marketing strategy • 3rd party online data is the highest ranked data set for both DIRECT RESPONSE and BRANDING campaigns for both advertisers and agencies • 69%+ of advertisers, agencies, and networks/exchanges/DSPs plan to increase their audience targeting budgets with an average budget increase of 38% © 2013 eXelate Inc. Confidential and Proprietary. 26
  • 27.
    thank you! Khurrum Malik eXelate ChiefMarketing Officer eXelate.com +1 703-347-3875 @eXelate km@exelate.com @trihoos

Editor's Notes

  • #8 A survey of more than 650 digital marketing and media professionals was conducted in March-April 2013 on current attitudes and practices regarding audience targeting, as well as their data strategies and challenges. Participants were contacted via e-mail and asked to take an online survey. Participants were first asked to identify themselves as Brand Marketers, Agencies, or Networks/Exchanges/DSPs. Each participant was then presented with questions about their approach to audience targeting specific to that classification. Results were then summarized and cross-tabbed, in order to identify consistencies or inconsistencies in each constituents’ viewpoints and practices, as well as opportunities to raise the bar for the industry. A synopsis of those results is introduced in this presentation.
  • #17 (where 1 is most important)In 2012 ADVERTISERS said CUSTOM DATA was best to target direct response
  • #18 (where 1 is most important)In 2012 ADVERTISERS said CUSTOM DATA was best to target branding campaigns
  • #19 (where 1 is most important)In 2012 AGENCIES said CUSTOM DATA was best to target branding campaigns
  • #20 (where 1 is most important)In 2012 AGENCIES said CUSTOM DATA was best to target branding campaigns
  • #21 Increases b/c of increase in ROI
  • #25 Plan to use it for:Behaviorally targeted campaigns – 4% advertisers, 10% agenciesContextual campaigns – 23% advertisers, 3% agenciesBoth types of campaigns – 73% advertisers, 87% agencies