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Behavioural TargetingA deep dive
Our definition…An online advertising technology that analyzes a consumer’s past actions to determine the real-time placement of an advertising creative
A quick aside…Internet
It’s a REAL placeiCrossing Network Map
Publishers embrace as audience extension opportunities, but sales force & agencies slow to transitionBehavioral Targeting appears as a standard part of media planDemand for more scaleNetworks are able to support brand advertisingBehaviorally Targeted  Ad networks were bornMASS CONFUSION!10 Years of Behavioral TargetingEVENTIMPLICATIONBehavioral Targeting launched in the US; Yahoo and Engage are the main players1999 Failed to move forward due to privacy, data ownership issues and tech limitationsOn-Site Behavioral Targeting solutions for publishers are introduced2003 2005 2006 2008Multiple companies claiming they offer Behavioral TargetingAudience Science
Key concepts…Audience segmentsUser InterestRecencyFrequencyPurchasing BehaviorOffline behavior
SegmentsHow you ‘slice and dice’ your usersDefinitions derived by advertisers, your sales team, and youThese are the “DNA” of Behavioral TargetingHow do you describe the particular audience you’re afterE.g.: People interested in purchasing a boat.
These are the KEY to making BT workCreated by publisherWhich sites and what key-value pairingsHow many visits/clicks qualify youRecency of activityCombined with other targetingTime of day, Declared, Frequency Capping, etc.Advertisers may (and will) ask for bespoke segments.Example: KW-TREE_HUGGERS-EXXONBehavioral Segments
Boat PurchasersHow do you determine it?Keyword searches: Brand names; Common phrases; etc.Sites visitedRecencyContent interacted withIncomeLocationPast purchasesAll of these can be or could be used…
Smart Segmenting – Top TipsStandard SegmentsWhat areas are most inventory constrained/sell out quicklyWhat sections do you not have, but can build on such as environment/lifestyleWhich audience clusters are highly demanded such as ABC1, High earners, etcSpecific work place audiences, especially for non B2B sitesBespoke SegmentsAre highly valuable and client specific, normally built in response to agency briefsProvide ability to reach audience segments based on very niche behaviors (targeting a specific movie launch/concert event)Combining a number key elements from the standard segmentsLayering SolutionsCombine multiple rules to expand the size of the audience, while keeping the audience segment relevant Finding the optimum balance between reach and relevance
Other Key Targeting TermsDeclared & InferredInferredIP/Geo Targeting (Digital Envoy/Akamai)Physical Location (DMA/Zip)SIC/Company TypeWork/Home/SchoolTime of DayDeclaredAge/Sex/Occupation/etc.	Why don’t these meet our definition of behavioral targeting?
Other Key BT TermsRe-targetingSearch/KeywordsClickers on Ad CreativeClickers on Site ContentViews of Site ContentPredictiveUses offline surveys and dataPurchase Intent
Sample BT CampaignsA Direct CampaignA Brand CampaignCar LoanPeople who have visited car review sitesIn the last 14 daysAt least twiceWho are prone to online purchasingFord F150 TruckMen who visit sports or “lads” sitesIn the last 42 daysAt least 5 timesWho make more than $50k
We’re targeting the USER not the CHANNEL for the first time!
So what?
The “Funnel”Users, people browsingPeople who may be interested in your productConsumers looking for a purchase, researchingTraditional Media PlanningReady to buyPurchasing
The “Funnel”Users, people browsingPeople who may be interested in your productConsumers looking for a purchase, researchingWith BTReady to buyPurchasing
BT Growth
Why marketers are exciteda case in pointAssume:	Item Costs $20.00 on client’s site	Acquisition  (post-click) rate is 5%Scenario 1: A Traditional Buy10M Untargeted Impressions @ $0.50 CPM ($5,000)CTR of %0.1 10,000 Clicks500 purchases$10,000 in Sales or a 100% ROIScenario 2: A Targeted Buy5M Targeted Impressions @ $1.50 CPM ($7,500)CTR of %1.5 75,000 Clicks3,750 purchases$67,500 in Sales or an 800% ROI
Growth of BT v. Display?
$3.8 BILLION in 2011
Vendor Landscape
A Crowded Field…
With some consolidation…Each company has also developed in-house BT solutions over the years…
‘BT’ IN PRACTICELooking Under the Hood
A publisher use caseYou can increase yield on areas of site that are not in such high demand or have heaps of inventory
ReachCPMA very simple graph…
ReachCPMA very positive result…
Relatively small inventory, high CPM & sell through$4.00 CPM
Lots of inventory, low CPM and sell through$1.00 CPM
Lots of inventory, low CPM and sell through$2.50 CPM
Two Big WinsCreate “demand smoothing” across propertiesBegin to raise CPM on traditionally undersold areas
An agency use caseMine the Gold, not the OreOld School: Media planner says “Where do I buy to get High earning males 18 – 34 in major urban areas”Channels
An agency use caseMine the Gold, not the OreNew School: Media planner says “I want to buy high earning males 18 – 34 in major urban areas”Buying PEOPLE* not channels*Browsers
Other practical usesWhy is BT so hot right now?Growth of user generated pagesLeveraging ad networksReaching toward the promiseThe “long tail”Speak the language of planners
How it works
How it works
How it worksUser visits a siteSite B(e-mail)Site A(finance)
How it worksJavaScript on Site...DM_addToLoc("Site",escape("Telegraph")); DM_addToLoc("Level1",escape("money")); DM_addToLoc("Level2",escape("city_news")); DM_addToLoc("Level3",escape("industry_sectors”…Cookie On user (UserID)E06560_10189
Site creates a userID & cookie
Vendor creates a “segment” cookie
How it worksUser visits a siteCookie created and user ID created from site ASite B(e-mail)Site A(finance)
How it worksUser visits a siteSite B(e-mail)Site A(finance)
How it worksUser visits a siteSite B(e-mail)Site A(finance)Finance ad served…
In fact, it’s not the technology that’s complex, it’s managing it!
Best PracticesAd Operations
Key ChallengesInventory ManagementMaintaining & Managing SegmentsIntegration with existing platforms
BT ChampionSales TeamBT Vendor(s)Ad Server VendorOps Team(Ultimate) Behavioral Champion
Creating SegmentsExamine high-sell through inventory on siteCreate segments based on these sectionsAudience segments you have that don’t directly tie to any specific site contentGolf fans or EnvironmentPsychographic Sections“Silver Surfers”High EarnersRecent Grads
Creating SegmentsUse bespoke segmentations carefullyNever create a NEW segment when an existing one will do (clutter, confusion)Devise and evangelize CLEAR and CONSISTENT naming conventionsKW-SILVER_SURFERS_J&JNot “johnson and johnson Q2 old campaign with search”Regularly scrub your segments!
Managing SegmentsUse an existing segment instead of creating duplicates when possibleName segments so they are easy to findRun periodic reports showing segments that haven’t been targeted within a given time frame (e.g. 6 months)Set standards for how big a segment should be before it makes the list of standard segmentsSet a threshold and force attrition when reached
A Note on Segments…As it is up to each publisher to create their own segment definitions they will vary site to site…This could cause issues for agency planners and advertisers down the road
Inventory Forecasting>
Inventory ForecastingEnsure you use wide enough segmentsThe narrower the segment the more volatile your predictionsGive bespoke segments time to “fill up”They won’t have any history when you first build them. Give them time before you commit to numbersIf possible sell users not impressionsBeware of overlaps – your ad system/forecasting system might not be
Pitfalls!Inventory Overlap+2X≠
Pitfalls!Inventory Overlap=+Combining two segments in an inventory forecast will never give you the sum of both segments! There is almost always SOME overlap.
A quick note on pricingDifferent PhilosophiesTargeted inventory = Segment PropertyTargeted inventory = Premium on delivered propertyTargeted inventory price calculated by supply and demandSports Channel CPM = $15Sell a segment of sports users for +/- $15 regardless where it runs1
A quick note in pricingDifferent PhilosophiesTargeted inventory = Segment PropertyTargeted inventory = Premium on delivered propertyTargeted inventory price calculated by supply and demandROS Sells for = $1Sell a segment of sports users on ROS for $2.502
A quick note in pricingDifferent PhilosophiesTargeted inventory = Segment PropertyTargeted inventory = Premium on delivered propertyTargeted inventory price calculated by supply and demandEach segment’s price is dynamically calculated using a pricing system3
System IntegrationThere is not a lot of integration between the 3rd party offerings andInventory PlatformsOrder Management SystemsBilling SystemsYou or your champion should work to determine workflow within your organization
Some Implementation Top TipsGet your tech team involved from the beginning (ad tags/CMS/structure)Involve your sales team in implementationGo to market with a pre-defined list of segmentsThe most obvious initial segments will be those that extend your high-demand/high sell through inventory
Other Top TipsEnsure you always update your site metadata when new area launchEnsure consistency between key value pairings and segments across the siteBe sure to enter at least the top 20% segments in your inventory DBNever look at BT on its own but as part of a holistic ad systemIt is NOT a silver bullet
In summary…Marketers are excited as BT can help fullfill the original promise of onlineIt represents a true NEW way of advertisingGrowth is predicted to be HUGEVendors are responding to this expect more and expect consolidationThe technology itself is not super hardManaging it within your organization can be tricky
In summary…Have a ChampionBe smart about your segmentsBe aware of inventory issuesInvolve all areas of your organizationBT is NOT an island

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Admonsters Behavioural

  • 2. Our definition…An online advertising technology that analyzes a consumer’s past actions to determine the real-time placement of an advertising creative
  • 4. It’s a REAL placeiCrossing Network Map
  • 5. Publishers embrace as audience extension opportunities, but sales force & agencies slow to transitionBehavioral Targeting appears as a standard part of media planDemand for more scaleNetworks are able to support brand advertisingBehaviorally Targeted Ad networks were bornMASS CONFUSION!10 Years of Behavioral TargetingEVENTIMPLICATIONBehavioral Targeting launched in the US; Yahoo and Engage are the main players1999 Failed to move forward due to privacy, data ownership issues and tech limitationsOn-Site Behavioral Targeting solutions for publishers are introduced2003 2005 2006 2008Multiple companies claiming they offer Behavioral TargetingAudience Science
  • 6. Key concepts…Audience segmentsUser InterestRecencyFrequencyPurchasing BehaviorOffline behavior
  • 7. SegmentsHow you ‘slice and dice’ your usersDefinitions derived by advertisers, your sales team, and youThese are the “DNA” of Behavioral TargetingHow do you describe the particular audience you’re afterE.g.: People interested in purchasing a boat.
  • 8. These are the KEY to making BT workCreated by publisherWhich sites and what key-value pairingsHow many visits/clicks qualify youRecency of activityCombined with other targetingTime of day, Declared, Frequency Capping, etc.Advertisers may (and will) ask for bespoke segments.Example: KW-TREE_HUGGERS-EXXONBehavioral Segments
  • 9. Boat PurchasersHow do you determine it?Keyword searches: Brand names; Common phrases; etc.Sites visitedRecencyContent interacted withIncomeLocationPast purchasesAll of these can be or could be used…
  • 10. Smart Segmenting – Top TipsStandard SegmentsWhat areas are most inventory constrained/sell out quicklyWhat sections do you not have, but can build on such as environment/lifestyleWhich audience clusters are highly demanded such as ABC1, High earners, etcSpecific work place audiences, especially for non B2B sitesBespoke SegmentsAre highly valuable and client specific, normally built in response to agency briefsProvide ability to reach audience segments based on very niche behaviors (targeting a specific movie launch/concert event)Combining a number key elements from the standard segmentsLayering SolutionsCombine multiple rules to expand the size of the audience, while keeping the audience segment relevant Finding the optimum balance between reach and relevance
  • 11. Other Key Targeting TermsDeclared & InferredInferredIP/Geo Targeting (Digital Envoy/Akamai)Physical Location (DMA/Zip)SIC/Company TypeWork/Home/SchoolTime of DayDeclaredAge/Sex/Occupation/etc. Why don’t these meet our definition of behavioral targeting?
  • 12. Other Key BT TermsRe-targetingSearch/KeywordsClickers on Ad CreativeClickers on Site ContentViews of Site ContentPredictiveUses offline surveys and dataPurchase Intent
  • 13. Sample BT CampaignsA Direct CampaignA Brand CampaignCar LoanPeople who have visited car review sitesIn the last 14 daysAt least twiceWho are prone to online purchasingFord F150 TruckMen who visit sports or “lads” sitesIn the last 42 daysAt least 5 timesWho make more than $50k
  • 14. We’re targeting the USER not the CHANNEL for the first time!
  • 16. The “Funnel”Users, people browsingPeople who may be interested in your productConsumers looking for a purchase, researchingTraditional Media PlanningReady to buyPurchasing
  • 17. The “Funnel”Users, people browsingPeople who may be interested in your productConsumers looking for a purchase, researchingWith BTReady to buyPurchasing
  • 19. Why marketers are exciteda case in pointAssume: Item Costs $20.00 on client’s site Acquisition (post-click) rate is 5%Scenario 1: A Traditional Buy10M Untargeted Impressions @ $0.50 CPM ($5,000)CTR of %0.1 10,000 Clicks500 purchases$10,000 in Sales or a 100% ROIScenario 2: A Targeted Buy5M Targeted Impressions @ $1.50 CPM ($7,500)CTR of %1.5 75,000 Clicks3,750 purchases$67,500 in Sales or an 800% ROI
  • 20. Growth of BT v. Display?
  • 24. With some consolidation…Each company has also developed in-house BT solutions over the years…
  • 26. A publisher use caseYou can increase yield on areas of site that are not in such high demand or have heaps of inventory
  • 29. Relatively small inventory, high CPM & sell through$4.00 CPM
  • 30. Lots of inventory, low CPM and sell through$1.00 CPM
  • 31. Lots of inventory, low CPM and sell through$2.50 CPM
  • 32. Two Big WinsCreate “demand smoothing” across propertiesBegin to raise CPM on traditionally undersold areas
  • 33. An agency use caseMine the Gold, not the OreOld School: Media planner says “Where do I buy to get High earning males 18 – 34 in major urban areas”Channels
  • 34. An agency use caseMine the Gold, not the OreNew School: Media planner says “I want to buy high earning males 18 – 34 in major urban areas”Buying PEOPLE* not channels*Browsers
  • 35. Other practical usesWhy is BT so hot right now?Growth of user generated pagesLeveraging ad networksReaching toward the promiseThe “long tail”Speak the language of planners
  • 38. How it worksUser visits a siteSite B(e-mail)Site A(finance)
  • 39. How it worksJavaScript on Site...DM_addToLoc("Site",escape("Telegraph")); DM_addToLoc("Level1",escape("money")); DM_addToLoc("Level2",escape("city_news")); DM_addToLoc("Level3",escape("industry_sectors”…Cookie On user (UserID)E06560_10189
  • 40. Site creates a userID & cookie
  • 41. Vendor creates a “segment” cookie
  • 42. How it worksUser visits a siteCookie created and user ID created from site ASite B(e-mail)Site A(finance)
  • 43. How it worksUser visits a siteSite B(e-mail)Site A(finance)
  • 44. How it worksUser visits a siteSite B(e-mail)Site A(finance)Finance ad served…
  • 45. In fact, it’s not the technology that’s complex, it’s managing it!
  • 47. Key ChallengesInventory ManagementMaintaining & Managing SegmentsIntegration with existing platforms
  • 48. BT ChampionSales TeamBT Vendor(s)Ad Server VendorOps Team(Ultimate) Behavioral Champion
  • 49. Creating SegmentsExamine high-sell through inventory on siteCreate segments based on these sectionsAudience segments you have that don’t directly tie to any specific site contentGolf fans or EnvironmentPsychographic Sections“Silver Surfers”High EarnersRecent Grads
  • 50. Creating SegmentsUse bespoke segmentations carefullyNever create a NEW segment when an existing one will do (clutter, confusion)Devise and evangelize CLEAR and CONSISTENT naming conventionsKW-SILVER_SURFERS_J&JNot “johnson and johnson Q2 old campaign with search”Regularly scrub your segments!
  • 51. Managing SegmentsUse an existing segment instead of creating duplicates when possibleName segments so they are easy to findRun periodic reports showing segments that haven’t been targeted within a given time frame (e.g. 6 months)Set standards for how big a segment should be before it makes the list of standard segmentsSet a threshold and force attrition when reached
  • 52. A Note on Segments…As it is up to each publisher to create their own segment definitions they will vary site to site…This could cause issues for agency planners and advertisers down the road
  • 54. Inventory ForecastingEnsure you use wide enough segmentsThe narrower the segment the more volatile your predictionsGive bespoke segments time to “fill up”They won’t have any history when you first build them. Give them time before you commit to numbersIf possible sell users not impressionsBeware of overlaps – your ad system/forecasting system might not be
  • 56. Pitfalls!Inventory Overlap=+Combining two segments in an inventory forecast will never give you the sum of both segments! There is almost always SOME overlap.
  • 57. A quick note on pricingDifferent PhilosophiesTargeted inventory = Segment PropertyTargeted inventory = Premium on delivered propertyTargeted inventory price calculated by supply and demandSports Channel CPM = $15Sell a segment of sports users for +/- $15 regardless where it runs1
  • 58. A quick note in pricingDifferent PhilosophiesTargeted inventory = Segment PropertyTargeted inventory = Premium on delivered propertyTargeted inventory price calculated by supply and demandROS Sells for = $1Sell a segment of sports users on ROS for $2.502
  • 59. A quick note in pricingDifferent PhilosophiesTargeted inventory = Segment PropertyTargeted inventory = Premium on delivered propertyTargeted inventory price calculated by supply and demandEach segment’s price is dynamically calculated using a pricing system3
  • 60. System IntegrationThere is not a lot of integration between the 3rd party offerings andInventory PlatformsOrder Management SystemsBilling SystemsYou or your champion should work to determine workflow within your organization
  • 61. Some Implementation Top TipsGet your tech team involved from the beginning (ad tags/CMS/structure)Involve your sales team in implementationGo to market with a pre-defined list of segmentsThe most obvious initial segments will be those that extend your high-demand/high sell through inventory
  • 62. Other Top TipsEnsure you always update your site metadata when new area launchEnsure consistency between key value pairings and segments across the siteBe sure to enter at least the top 20% segments in your inventory DBNever look at BT on its own but as part of a holistic ad systemIt is NOT a silver bullet
  • 63. In summary…Marketers are excited as BT can help fullfill the original promise of onlineIt represents a true NEW way of advertisingGrowth is predicted to be HUGEVendors are responding to this expect more and expect consolidationThe technology itself is not super hardManaging it within your organization can be tricky
  • 64. In summary…Have a ChampionBe smart about your segmentsBe aware of inventory issuesInvolve all areas of your organizationBT is NOT an island