The document discusses behavioral targeting in online advertising. It explains that audience targeting uses audience data from various online and offline sources to identify consumers most likely to be interested in specific ads or campaigns. This allows advertisers to efficiently reach the right audience and helps publishers monetize their audience. The document also discusses how behavioral targeting is growing significantly and transforming media buying across channels.

1. Online Marketing Summit Portland, OR. | June 16, 2010 Behavioral Targeting Across Online Advertising Channels Monica Seebohm Director Audience Targeting, West AudienceScience

2. WHAT IS AUDIENCE TARGETING

3. Audience targeting can identify the best consumers for a specific ad or campaign and can be used to effectively reach sales, acquisition, and branding goals

4. “ Old” Media: Demographics

5. The Target Market: Men Age 25-55

6. T.V. Show for this Demographic

7. Show’s Actual Audience

8. Digital Audience Targeting

9. WHY AUDIENCE TARGETING

10. Advertisers efficiently reach the right audience with the right message at the right time Publishers monetize the value of their audience and make more money from undersold ad inventory Consumers get a more relevant experience Everybody Wins

11. 06/17/10 Simple Behavioral Based on simple observations of an audience behavior Creative retargeting Site retargeting Click retargeting Search retargeting Traditional Targeting Based on overall nature of a media property or facts about its audience Contextual Demographic Geographic Day-part Audience Targeting Based on complex models of audience behavior Boolean logic Contextual Extension Dynamic Targeting Targeting Evolution Targeting Evolution

12. What Makes up Targeting? Audience data comes from many places… Online behavior Workplace attributes Ad views Transactions Registration Searches Geo/DMA 3 rd party partners Offline data No personally identifiable information is used

13. Where Are Consumers Spending Their Time Online?

14. Researched and purchased Online Shoppers – Large Percentage of the Online Population Researched not purchased Purchased not researched Neither researched nor purchased Q: Which statement best describes your experience shopping online in the past 12 months? Source: Jupiter Research/AudienceScience Consumer Survey 2009 0% 20% 40% 60% 80% 100% Percentage of Online Users

15. You Have 3 Opportunities to Connect With Online Users Percentage of Online Researchers 0% 20% 40% 60% 80% 100% 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? 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? Source: Jupiter Research/AudienceScience Consumer Survey 2009 Three times 5 times 5+ times Twice Four times Once

16. Shoppers More Receptive to AT Ads 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) Source: Jupiter Research/AudienceScience Consumer Survey 2009 Percentage of Online Shoppers 0% 20% 40% 60% 80% 100% Contextually targeted ads Behaviorally targeted ads

17. An online user sees more than 1,800 online ads per day , which is an increase of more than 250% since 2004 Forrester Research 2009 It’s a Cluttered World

18. CREATING AN AUDIENCE-BASED MEDIA STRATEGY BY LEVERAGING YOUR DATA ASSETS

19. Crowded and Complicated Landscape Buying Process Used to Be Simple Agencies

20. Understanding Consumers Drives the Funnel Commoditized and conversion data is simple and easy to access Brand awareness, recognition, and recall are driven by sophisticated consumer insight Brands must drive consumers through the funnel, from awareness to action

21. Collect Data from Multiple Sources 3rd-Party Data Sources AudienceScience Segments 3rd-Party Partners’ Sites Advertiser Data Web site traffic Registration Commerce Offline Data E-mails Website partners Affiliated sites Offline database Social media fan pages Datalogix Targus Nielsen Others Pre-existing or customized audience segments

22. Connecting the Data Dots In one unified system In data silos Impossible to build advanced audiences Single View of the Consumer Ad Interaction Searches & 3rd-Party Partners Registrations & Transactions Offline Data Geo/ DMA Workplace Attribute Online Behavior & IP Attributes Ad Interaction Searches & 3rd-Party Partners Registrations & Transactions Offline Data Geo/ DMA Workplace Attribute Online Behavior & IP Attributes Ad Interaction Online Behavior & IP Attributes Geo/ DMA Workplace Attribute Offline Data Registrations & Transactions Searches & 3rd-Party Partners Ad Interaction Online Behavior & IP Attributes Geo/ DMA Workplace Attribute Offline Data Registrations & Transactions Searches & 3rd-Party Partners

23. An Integrated Audience Platform

24. HOW AUDIENCE TARGETING CAN WORK FOR YOU

25. Audience Data The Ingredients What people are looking for Search Interests Content of articles viewed Where they go Pages, Sections, Sites What they say about themselves Non-PII: Income ranges, Gender, Zip Tools they use Calculators, Configurations, Comparisons Offline data Transactional, Affinity, Psychographics

26. Advertisers can use simple data to produce basic audience segments With an integrated audience platform, a wider variety of data results in larger, more targeted audiences

27. Identify Segments of Best Customers

28. Who Is a Stock Trader?

29. Audience Insight

30. Audience Example – Dog Lovers Offline Registration Data – Dog Owners Online Dog Shopping Behavior Dog Enthusiasts Sample: People who read about dogs, searched for information on dog health, used tools to find the best dog breeds Verified by Third Party Research Shopping Sites Enthusiast Sites Offline Purchase Propensity – Pet Products Catalogues Newsletters Pet Retailers Segmenting Capabilities

31. Dynamic Ads Personalized ads created “on the fly” Leverage multiple data sources Different elements of ads optimized based on data and performance More relevant, better performing advertising

32. Success Story – Retail 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 skechers.com shoe ads were delivered to these consumers Return on ad spend was 827% over the course of the campaign Brand Metrics (Behavioral targeting over ROS) 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) SKECHERS was able to continually refine its creative for maximum results Maximize return on advertising spend for their retail website Increase sales on skechers.com and return on ad spend Solution Results Goals

33. Behavioral allows you get a larger reach into your target consumer than running on context alone If you choose a micro target it should be because you have a very specific creative message for them Targeting that costs more than your increased rate of results isn’t worth it In Order to Move Share, You Need Scale

34. THE MEDIA LANDSCAPE

35. The Upside Is Way Up. . . Media Consumption vs. Ad Spend, 2009 Note: As a percentage of ad spending on the media channels indicated above only: TV, Newspaper, Radio, Magazines and Online Source: Wall Street research, 2010

36. . . .With Many Categories Poised to Transfer Source: IAB Internet Advertising Revenue Report, 2009 Category Share of Total Internet Advertising Spending

37. Leveraging Targeting across All Marketing Channels It is only the beginning…

38. PRIVACY AND THE NEXT GENERATION OF TARGETING

39. Navigating the Privacy Waters

41. The “Cookie” Monster Cookies: small files placed by a website on your computer that serve as an identifier Cookies simplify and improve the Internet experience Give the Internet “memory” Enable shopping carts Remembered login information Cookies aren’t static – sites modify them all the time as you do different things within their domains Allow frequency capping and other targeting, including behavioral They are not scary Easily removable Managed by user Cookies not bad, Cookies GOOD

42. Work with sites and networks that give consumers notice and let them opt out Be aware of restrictions (rules) around collection and use of: Personally Identifiable Information (PII) Sensitive Information – such as sensitive health and financial data Respect Consumers’ Privacy

43. Industry Support for Privacy Provide consumers with Notice about collection and use of data for behavioral advertising Privacy Policy Notice near targeted ads (enhanced notice) Enable consumers to opt-out (opt-out page) Use only non-personally identifiable information (non-PII) Do not use “sensitive” information (health, financial, etc.) Broad industry support for these initiatives

44. Enhanced Notice Example More prominent notice to consumers of online behavioral advertising Text/Icon displayed for all OBA ads Clicking on the notice provides consumers with more information about OBA and the ad itself Link to opt out

45. Audience Targeting- the Here and Now Display Advertising Spend 77% of Marketers Currently Use or Plan to Use Audience Targeting for Online Advertising Source: Forrester’s Online Advertising And Classifieds Model; “US Interactive Marketing Forecast, 2009 To 2014,” Forrester Research Inc., July 6, 2009 Total $7,829 $8,395 $9,846 $11,732 $14,339 $16,900 Contextual ads Static image Rich media (excluding video) Online video 2009 2010 2011 2012 2013 2014 Source: A commissioned study conducted by Forrester Consulting on behalf of AudienceScience, January 2010 Does your organization use Audience Targeting for your online media campaigns? Base: 156 marketers $0 $3,000 $6,000 $9,000 $12,000 $15,000 $18,000 Currently using Planning to use Previously used, but stopped Not interested in using Don’t know 11% 56% 4% 21% 7%

46. Even the President Realizes the Value of Behavioral Targeting “ 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. “ “ 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.” How Obama Won It With the Web By: Chris Dannen - Fast Company Source: http://www.fastcompany.com/articles/2008/11/how-obama-won-it-with-the-web.html

47. Questions?

48. Interactive marketing is growing significantly We are experiencing a transformation of media buying across channels This transformation means a shift to more dynamic, data driven audience targeting and media buying Online advertising industry working to protect consumer privacy while delivering relevant services and content Summary

49. Thank You www.audiencescience.com Twitter: @audiencescience

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