eMarketer Webinar: Data Management Platforms—Using Big Data to Power Marketing Performance

OCTOBER

2 4, 2 0 1 3

Data Management
Platforms—Using Big Data
to Power Marketing
Performance

Lauren T. Fisher
Analyst

Sponsored by:

©2013 eMarketer Inc.

What’s in store:

Data: a challenge and a solution
Defining Big Data and Data Management
Platform (DMP)
DMP’s role in the ad technology ecosystem
How DMPs are being used for audience
targeting?
How are DMPs being used for cross-channel
and cross-platform attribution?

Twitter – #eMwebinar


The majority of US marketers recognize
the value of data
A February 2012 survey from Columbia Business School
and the New York American Marketing Association (NYAMA)
found 91% of US marketers surveyed believed
successful brands used data to drive marketing
decisions.


But only a
minority of
US
companies
actually
capture
customer
data, and
less than
half of those
are able to
capitalize
on its use


This
problem
is only
getting
worse, as
both online
and offline
data
generation
show no
signs of
slowing
down


And it’s spurring an interest in Big Data


What is Big Data?

Search

Email/
ESP
Analytics

Reg/
Login
Social
Mobile
Purchase/
In-store

Display/
DSP/ATD

Site

Big
Data

Loyalty

CRM
3rdParty


Offline
Media


What is a Data Management Platform
(DMP)?
If data is the currency of digital marketing, then the DMP
is the bank.
A DMP is where Big Data is:
stored
standardized
optimized



DMPs play a central role in the digital
advertising ecosystem



In other words …

“The DMP is really a central nervous
system that allows you to compile all of
these data sources and turn them into
meaningful sets of audience
segments that you can use for
multiple purposes.”
—Tim Waddell, director of product marketing for
Adobe AudienceManager



That sounds a lot like a Customer
Relationship Management (CRM) system …
DMP:

CRM:
Houses:

Houses:

Customer information

CRM data

Purchase history

Analytics

Campaign details

Third-party data

Client status/lead score

Second-party data

Select third-party data
Analyzing and acting on data
usually requires additional tools

Processes and analyzes data to identify
key audience segments and/or
campaign effects
Alignment with digital marketing
platforms such as marketing
automation, ESP, ad servers, content
management system, ad verification
tools and digital marketing channels
gives full range of actionability



DMPs offer more than audience insights

“Eighteen months ago, a DMP was just a big
box sucking in data. Now, you have two
branches:
There are data marketing platforms,
which allow us to activate all of that data for
targeting and more efficient ad delivery.
And then there’s the data analytics side,
which allows us to use the data to better
inform online and offline marketing
decisions.”
—Mark Zagorski, CEO of eXelate


Marketers are investing in DMPs

Radar Research (Nov. 2012): 40% of marketers worldwide
Winterberry Group & IAB (Sept. 2012): 62% of marketing
professionals* in North America
*66% marketing tech/service providers
*23% publishers
*10% marketers



Not
surprisingly,
marketers
look to
DMPs for
audience
targeting
and
improved
attribution
and
analytics


Using a DMP for
Audience Targeting


The majority of US display advertisers
use some form of audience targeting


Most rely on first- and third-party data,
though not necessarily in concert


Publishers, too, are seeking out DMPs for
greater audience insight
“The old way of responding to RFPs was to
do a syndicated research run via comScore
or any other service that shows a general
audience composition and projected
potential reach of that audience on a site.
Advertisers don’t want that anymore. They
want to know exactly who you have
on your site.”
—Mark Howard, chief revenue officer for Forbes



DMPs integrate more than just first- and
third-party data


Audience intelligence gained from a
DMP provides:
Holistic view of individuals
Audience segmentation
More precise audience targeting



DMPs in practice: Forbes delivers distinct
audience segments
Actions:
Divided site into distinct segments
Layered in first- and third-party
data

Results:
Identify exact audience composition
for individual site segments
More customized audiences
Identify new audience segments


DMPs in practice: Combining multiple
CRMs for a unified customer view
A financial services firm aims to create a
unified customer view across all service divisions
Integrated into DMP:
CRMs for each service
division
Third-party data
Marketing platforms,
channels and content
management system

Results:
Developed single view of customer
Identified high-value customers
Identified new attributes for targeting or
up-selling prospects and customers
Improved marketing personalization
and website experience
Better attributed marketing efforts


Using a DMP for
Attribution


US
marketers
have high
hopes for
DMPs and
their ability
to improve
current
attribution
practices


Still,
relatively
few are
using
attribution
modeling,
let alone
using a DMP
to do it


Last-click
attribution
remains the
norm
worldwide


Such an attribution model assigns
retargeting—a popular tactic—full credit


DMPs enable marketers to build a more
complete view of marketing performance
Cross-channel attribution
Cross-platform attribution



DMPs in practice: Xaxis helps Godiva
prove digital’s effect on in-store sales
Godiva layers in offline purchase data with video and display ad
performance to determine their effects on driving in-store sales.

Results:
Determined Godiva earned
about $2 in sales for every $1 in
digital
Justified and increased digital
advertising budget


DMPs in practice: Tech firm identifies and
amplifies the TV-to-search relationship
A large technology company deploys an ad campaign on digital video
and TV in anticipation of a new product launch
Results:
Identified TV driving a good portion of search activity
Optimized search for TV ads and to drive users to the website
for eventual purchase
“Without that integrated view, someone looking at
just the web analytics might have just seen the bulk
of traffic coming from search and assumed that we
shouldn’t bother doing cable advertising.”
—Laurent Colard, global managing partner at GroupM


DMPs improve attribution, but limitations
exist
Mobile’s lack of cookies
can make it difficult to
identify an individual
across devices
Bringing offline data
online results in data
loss



Key Takeaways:

1. Big Data is on everyone’s mind, and it’s only
getting “bigger.”
2. DMPs are at the heart of the digital
advertising ecosystem, touching nearly every
platform and technology.
3. DMPs enable marketers to address two of
their greatest needs: an understanding and
actualization of their audience; and an understanding of
their total marketing effects.
4. DMPs are a solution to these challenges, but
they still have limitations.


Harnessing Data: A Complementary Relationship

DMPs
• Ingest / normalize data
• Facilitate analytics and insights
• Connect to internal / external
platforms for bi-directional data
sharing

DSPs
• Target audiences using 1st and 3rd party
data
• Buy media at global scale in real time
• Achieve data-driven insights about
audiences reached through campaigns

The Trade Desk – A Buyer’s Platform
• 100% proprietary technology
• Display, video, social, and mobile
– one platform

Choose audience
and campaign

• Attribution and reporting across
all channels
• Ad serving, tracking and analytics
(or bring your own ad server)
• DMP and marketplace for
audience data

Report on results
across channels

Launch and
manage campaign

Trends Propelling DSP Use
• Growth in RTB
• Expansion of international markets
• One word: Facebook
• Expansion to display, mobile, social,
and video
• Big Data (and marketers’ quest to
extract value from it)
• Growing array of targeting strategies

Expanding Array of Targeting Strategies and Tactics

Retargeting

Lookalike
Modeling

Dynamic
Creative
Optimization

Search
retargeting

Targeting
Strategies

IP targeting

Contextual
and site
targeting

Geo-Zone
Targeting
3rd party data
+ Audience
Targeting

• Leading DSPs delivering
more powerful targeting as a
result of:
– Increasing sophistication of
buyers
– Expanded analytic power within
tool sets
– Richer data availability to power
selection criteria

Extracting Value Using “Right Priced” 3rd Party Data

When priced as a percentage of media spend, the power of 3rd party targeting
can be unlocked for FBX and other less expensive media

Q&A Session
Data Management Platforms—
Using Big Data to Power
Marketing Performance

Learn more about digital marketing with an
eMarketer corporate subscription
Around 200 eMarketer reports are published
each year. Here are some recent reports you
may be interested in:
Data Management Platforms: Using Big Data to Power
Marketing Performance
eMarketer’s Guide to the Digital Advertising Ecosystem:
Mapping the Display Advertising Purchase Paths and the
Ad-Serving Process

Lauren T. Fisher
You will receive an email
tomorrow with a link to
view the deck and
webinar recording.
Sponsored by:

The Trade Desk

Shopping Cart Abandonment: New Ways of Looking at
the Purchase Path
How Retailers are Leveraging ‘Big Data’ to Personalize
Ecommerce
Multichannel Attribution: What Retailers Need to Know
To learn more: www.emarketer.com/products
800-405-0844 or webinars@emarketer.com

eMarketer Webinar: Data Management Platforms—Using Big Data to Power Marketing Performance

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