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I created this presentation with the intent to inform and clarify what a data management platform is and show how it an be used to enhance marketing initiatives.
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1. Overview of Data
Methodology and Practices
Compete, a Kantar Media Company
Ja n u a r y 2 0 1 0
1
Copyright Compete 2010. Confidential.
mutiple
data sources
2
harmonization
3
projection and
normalization
4 metrics
that matter Online ad exposure
Audience profiles
Traffic metrics
Search terms
Shopping/purchase behavior
pg 1
2. Navigating the Digital Universe Reaching Consumers in Motion
As our universe grows more digital, marketers are Online consumer behaviors create new digital research
finding that the data from traditional research providers that can offer a highly quantifiable depiction of daily
are not comprehensive or timely enough to improve life as it’s come to be lived. While the marketing/
their advertising, engagement or ROI. Consumers are advertising industry recognizes these digital breadcrumbs
transitioning from the couch to the driver’s seat when as opportunities for true engagement, traditional
it comes to shopping, socializing, viewing and even demographic-based media planning and buying metrics
creating their own media online. And marketing and media can’t fully capture the dynamism of consumers. Inputs like
strategists who once relied on plan-and-place tactics are CPM and CPC are helpful for establishing a currency for
now actively seeking a more nimble, look-listen-respond media investments, but are only narrow entry points for a
approach. But existing audience measurement currencies marketplace demanding richer insights about differentiated
like demographics and reach are not sufficient to keep audiences and marketing impact.
pace with new consumers-in-motion. The old way simply
doesn’t work in the new world. Compete provides a wide spectrum of actionable metrics
and insight-based products that help marketers develop,
Compete’s data methodology and products are designed execute, and measure their digital media strategies. These
to connect the dots from insights to marketing actions that products track success and failure along every point in the
resonate with today’s consumers. Compete’s data provide consumer purchase pathway from early consideration to
the large sample size and resulting granularity that make online and offline purchase to loyalty and satisfaction.
it possible to uncover new metrics and insights that chart
the entire purchase pathway: from exposure to search For example, Compete works with a leading wireless
and digital media campaigns to website engagement to carrier to measure, strategize and act on new
online/offline conversion. Drawing from the largest online insights drawn from consumers’ online behaviors.
consumer panel in the industry, Compete combines a Specifically, the carrier relies on Compete:
multi-data source approach, state-of-the-art harmonization
algorithms, and advanced normalization techniques to • to develop efficient media plans that target
consumer and business segments;
provide advertisers, media companies, and agencies with
• to measure how effectively its display ads and
the metrics they need to achieve new levels of marketing landing pages achieve brand and sales goals;
success. • to create new online user experiences and
promotional strategies that maximize conversion
on its website and at retail locations; and
Compete’s approach helps clients drive site traffic, • to create digital programs that reduce
build their brands and increase sales. And through subscriber churn.
collaborations with sister WPP and Kantar companies such
as TNS, DynamicLogic, 24/7 Real Media, Wunderman, Compete’s data methodology is unique in the industry and
Group M, Kantar Retail, and the Media Innovation Group, is designed to provide comprehensive, granular insights
Compete’s clients are able to gain far more comprehensive that advertisers, agencies and media companies can use
and integrated insights. This constellation of partnerships to build their businesses. Compete’s methodology includes
expands Compete’s capabilities and helps marketers four distinct components:
confidently navigate their expanding digital universe.
pg 1
3. 1. Multi-source panel – combines both recruited partnership with Lightspeed Research in October 2009 and
panelists and licensed clickstream data from expects to begin reporting on these panels by April 2010.
partners, resulting in a very large and representative
online consumer panel;
clickstream-sharing
2. Harmonization algorithms – proprietary processes partnerships
and technology that work together to integrate
Compete’s multiple data sources into a unified online
consumer panel;
3. Sophisticated normalization techniques – unique
processes that weight, calibrate and project metrics
across panel sources resulting in accurate base proprietary
recruited panel
audience measurement data;
4. Metrics that matter – analytics on site visitation,
audience profiles, media exposure, search term
usage, cross-shopping, conversion, competitive
behaviors, and audience segmentation.
Bigger is Better: Compete’s
Multi-Source Panel
Depicting consumer activities across millions of websites
in a timely and reliable manner poses a substantial At the core of Compete’s panel is a 350,000-person
market research challenge. Marketers need accurate proprietary, recruited consumer panel that has opted
measurement of consumers’ constantly evolving behaviors in to install Compete’s online meter software on their
at ever-smaller internet outposts in order to identify and computers. These panelists are recruited online, through
target profitable segments, to gauge the penetration of email and partner marketing, and from within sister Kantar
the latest micro-site, or to stay abreast of traffic trends research panels including Lightspeed Research and the
on rivals’ social media brand pages. Meeting this TNS Sixth Dimension panel. When a consumer agrees to
measurement need is simply not possible using traditional participate, he or she will complete a short registration
audience measurement providers, because these panels questionnaire before joining the panel. After completing
fall short of providing the necessary level of detail. the questionnaire, all panelists must provide permission
to Compete to analyze their clickstream data before they
Compete solves this problem by maintaining the largest install the online meter on their computers. Once installed,
online consumer panel in the industry, totaling 2,000,000 the online meter delineates clickstream behaviors at
consumers in the United States. Compete’s unique multi- the individual level. Prior to transmission to Compete,
source panel combines proprietary, recruited panels with personally identifiable information is filtered from the
licensed clickstream data resulting in a unified panel clickstream.
that is an order of magnitude larger than Comscore and
Nielsen. This size advantage provides marketers with the Recruited panelists are directed to www.consumerinput.
deepest metrics across the largest set of websites in the com to learn about the information Compete collects,
industry. Compete began international panel operations in how it is used and how they will be compensated for their
pg 2
4. participation in the panel. Consumer Input also serves as top boxes and directly measured web analytics
the brand for opt-in client surveys. data leveraging web beacons, into its existing
methodologies. As Compete’s data sources change
over time, Compete has created processes to
Additionally, Compete licenses clickstream data gradually add and remove sources over time to
representing millions of consumers from internet service ensure that a panel change does not create bias.
providers and application service providers to increase
the size and diversity of its panel. The geographic and The Whole is Greater:
demographic distribution of these clickstream-sharing Harmonization
partnerships is representative of the U.S. internet browser
population. Each month, Compete adds consumers Transforming raw consumer clickstreams from multiple
from each data source to achieve its goal of 2,000,000 sources into accurate and actionable metrics for
representative panelists. marketing and media planning requires a rigorous
process. Compete’s harmonization algorithms are the
As part of their individual agreements with Compete, transformational system that unifies the data collected
clickstream-sharing partners are required to have customer from Compete’s proprietary and licensed sources. The
permission to collect and license their clickstream data algorithms perform three specific functions: first, on a daily
in exchange for the use of their respective applications basis, the algorithms process the incoming clickstreams
or services. Partners must meet Compete’s privacy from each individual data source into sessions to reflect
requirements, and must also satisfy Compete’s technical household and individual internet activities; second,
and business process standards to ensure their algorithms combine the clickstreams, converting
clickstream data adheres to strict data type, format, heterogeneous feeds into a homogeneous, unified dataset;
quality, and timeliness specifications. and third, the algorithms use data inference techniques
to identify and populate any missing demographic
Compete integrates its proprietary and licensed data into cells according to similarities in internet usage among
a single, unified online panel. Compete’s multi-source other panelists. The end result is a single, unified online
approach offers distinct benefits compared to other panel- consumer measurement panel that is representative of the
based measurement providers: internet browser population in the United States
• the size of the panel provides the granularity
150m
needed to uncover behavioral insights and targeting What’s in the torso & tail?
(all the stuff that’s really important)
opportunities that are impossible with smaller panels;
Microsites, Micro-segments, Search
Unique Visitors
Phrases, Conversions Rates, Product
• the diversity of different data sources ensures that & Category Interest
the unified panel is representative of the consumer
segments marketers need to measure and target;
10k 25k 1m
• the diversity of sources enables Compete to isolate
0 Nielsen Online comScore Compete
the bias of any single source, and then provides a
Number of Sites
basis for addressing that bias; and
• Compete’s technology infrastructure and data Compete’s harmonization algorithms integrate data from
management processes prepare the way for each panel source to create a unified panel with complete
integrating new data sources, including mobile
demographic and behavioral records for all panelists. At
internet usage, return path data from cable set-
pg 3
5. minimum, each panelist is assigned an anonymous and The clickstream data from Compete’s consumer panel is
unique user identifier which is mapped to age, income, then weighted to match the total internet population using
gender and geographic buckets based on the profiles the weights depicted by the omnibus survey. During this
of panelists. Panelist demographic and geographic process Compete’s normalization system triangulates
information is gathered during initial registration, in specific audience metrics -- such as site visitation, search
subsequent surveys, via third-party data appends, and/ activity, and online purchases -- across its entire panel to
or via inferences that are based on panelists with similar, adjust for geographic and online behavioral biases that are
known internet behaviors natural and unavoidable in single data sources. Additional
adjustments are made to correct for any bias associated
Like Compete’s multi-source panel, the harmonization with recruiting programs that offer rewards or coupons.
algorithms are versatile, meaning that they adapt over time
to address the industry’s need for continuous and accurate Compete also accounts for aberrational gaps that occur
digital media measurement. in measurement due to technical interruptions or abrupt
changes in panelist lifestyles. These may include work
Projecting to the Population: time-off, computer crashes or replacements and other
Projection and Normalization events that cause abrupt changes in user behavior.
Compete handles these “panel inactives” by applying
Once the harmonization algorithms transform the diverse a seasonal and inter-period adjustment algorithm to
inputs into a cohesive and unified panel, the next step in respondents who exhibit precipitous drops in usage.
Compete’s data methodology is to weight the raw data so Compete’s normalization factors are integrated into final
that final projections are representative of internet behavior estimates coincident with Compete’s weekly and monthly
in the United States. Compete’s normalization system was reporting schedule.
developed by leading experts in the fields of marketing,
60%
media and data research in 2000. Compete periodically Compete US Internet Population
updates its underlying normalization models to account
for changes in consumer demographics, behaviors, and 40%
internet technologies.
The normalization process begins with a 4,000-person 20%
omnibus survey of the U.S. internet population which
is updated monthly and is administered independently
from Compete’s consumer research panel. The 0%
AGE GENDER INCOME GEOGRAPHICS
information collected in this survey includes geographic
M id dle A t la n t i c
S o u t h A t la n t i c
W. S . C e n t r a l
W. N . C e n t r al
E . S . C en t r a l
E.N. Central
$ 6 0 -10 0 K
N ew E ngla n d
M o un t ain
$30-60K
$ 10 0 K+
18 -24
F ema le
P aci fi c
45-54
2 5 -3 4
<$30K
55-64
35-44
M a le
65+
and demographic profiles, household characteristics,
technology usage, internet connection, and internet
location. The resulting data from the omnibus survey
creates an accurate depiction of the internet browser
population for that month; this serves as the basis for Compete’s normalization process has been proven
Compete’s audience and behavioral projections. over the past ten years across more than one thousand
client relationships that span advertisers, agencies,
pg 4
6. and publishers. This third component of Compete’s comprehensive and fastest growing online measurement
data methodology has been extended to support new service in the industry. Advertisers, agencies and
capabilities over time, including cross media studies and publishers rely on Compete PRO for daily and monthly
matching with external databases like frequent shopper digital intelligence, audience profiles, and search marketing
programs, credit profile databases, and transactional metrics across the top one million websites.
databases.
Media planning – Compete’s Behavior Match provides
Combined with multi-source data and harmonization agencies with a new ability to develop media plans that
algorithms, the Compete normalization process creates are based on more than 300 standard segments, plus
data that meet the high quality threshold required for customized segments that precisely match their clients’
trusted, reliable consumer and media research. segmentation schemas. Publishers use Behavior Match
to understand how the composition of their properties
Insights, Actions, ROI: Metrics indexes against other online properties for key advertiser
That Matter categories.
The Compete data methodology has been designed to Ad effectiveness – Compete’s Ad Impact solution
help companies navigate their ever-expanding digital measures how display advertising helps to drive brand
universe with confidence. Compete’s offerings help and sales metrics beyond basic impressions and click-
advertisers improve online engagement and conversion,
as well as apply online consumer insights to develop more
Compete’s comprehensive view
effective “offline” advertising campaigns. Compete has of the purchase funnel
incorporated these same high-value and differentiated
insights into products that agencies and publishers can STRATEGY INSIGHTS AND INTELLIGENCE
now use to target and sell media more effectively. And
REACH MEDIA PLANNING
Compete’s client service teams work closely with clients to
ensure they gain the maximum business impact from their
relationship with Compete. BRAND AD EFFECTIVENESS
Compete’s client service teams support the digital
strategies of leading brands in the automotive, consumer BEHAVIOR MARKETING EFFECTIVENESS
electronics, financial services, packaged goods,
pharmaceutical, retail, telecom, and travel industries; the MOMENTUM ONLINE CHANNEL
EFFECTIVENESS
largest advertising, media and direct marketing agencies;
and the fastest growing search engines, portals, ad
networks and online media sites.
throughs. Using an exposed-control methodology, Ad
Compete’s product offering includes: Impact measures changes in consumer behavior for key
measures such as viewthrough, conversion, brand-term
Audience insights and Competitive intelligence – search activity, and visits to consideration, social media
Compete PRO, found at www.compete.com, is the most and/or competitor sites.
pg 5
7. Marketing effectiveness – Marketing Effectiveness
measures the impact of offline advertising and promotional
campaigns on creating demand in high consideration
product categories such as the automotive and mobile
device/handset markets; marketers use this service to gain
valuable new insights into their advertising effectiveness,
brand awareness, and competitive position.
Web effectiveness – Online Channel Effectiveness
enables marketers to optimize their customer acquisition,
search marketing, and online sales, service, and loyalty
programs. By benchmarking web effectiveness versus
direct rivals across industry-relevant metrics, marketers
can invest in the most effective customer acquisition and
website development initiatives.
Holistic marketing measurement – For large global
brands with integrated digital, traditional and social
media strategies, measuring the influence and interplay
of each tactic on brand equity and sales is critical.
Compete partners with other Kantar companies including
Dynamic Logic, Cymfony, Cannondale and TNS to
create comprehensive and actionable insights for brand
managers to measure marketing performance across all
customer touchpoints.
Compete’s data, products and client service teams generate new
insights that help clients optimize their digital strategies across a
wide array of touch points within the digital purchase pathway. By
expanding the focus from impressions and clicks to a more holistic
view that includes branding, sales, and loyalty, Compete helps
marketers increase the returns from their search, advertising, and
website investments.
pg 6