The document summarizes a presentation on audience targeting across online advertising channels. It discusses how audience targeting uses complex models and data from various online and offline sources to identify the best consumers for specific ads or campaigns. This allows advertisers to efficiently reach the right audience with the right message. The presentation notes that interactive marketing is growing significantly and the media buying landscape is transforming to more dynamic, data-driven audience targeting and buying. It also addresses how the online advertising industry works to protect consumer privacy.

1. Online Marketing Summit Long Beach, CA | June 21, 2010 Behavioral Targeting Across Online Advertising Channels Monica SeebohmDirector Audience Targeting, West AudienceScience

2. WHAT IS AUDIENCE TARGETING

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

4. 4 “Old” Media: Demographics

5. 5 The Target Market: Men Age 25-55

6. 6 T.V. Show for this Demographic

7. 7 Show’s Actual Audience

8. 8 Digital Audience Targeting

9. WHY AUDIENCE TARGETING

11. Publishers monetize the value of their audience and make more money from undersold ad inventory

12. Consumers get a more relevant experienceEverybody Wins 10

14. Site retargeting

15. Click retargeting

17. Demographic

18. Geographic

20. Contextual Extension

21. Dynamic Targeting6/21/2010 11

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

23. Where Are Consumers SpendingTheir Time Online? 13

24. Online Shoppers – Large Percentage of the Online Population 14 Percentage of Online Users 100% 80% 60% 40% 20% 0% Researched and purchased 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

25. You Have 3 Opportunities to Connect With Online Users 15 Percentage of Online Researchers 100% 80% 60% 40% 20% 0% Once Twice Three times Four times 5 times 5+ times 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 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?

26. Shoppers More Receptive to AT Ads 16 Percentage of Online Shoppers 100% 80% 60% 40% 20% 0% Behaviorally targeted ads Contextually targeted 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

27. 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 17

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

29. Crowded and Complicated Landscape Agencies Ad Networks Data Providers Data Exchanges Ad Servers Publishers Media Buying Platforms Ad Exchanges DSPs Buying Process Used to Be Simple Advertisers 19

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

32. Affiliated sites

33. Offline database

35. Targus

36. Nielsen

38. Registration

39. Commerce

40. Offline Data

41. E-mails

42. Pre-existing or customized audience segmentsAudienceScience Segments

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

44. An Integrated Audience Platform 23

45. HOW AUDIENCE TARGETING CAN WORK FOR YOU

46. The Ingredients Audience Data 25

47. 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 26

48. Identify Segments of Best Customers 27

49. Who Is a Stock Trader? 28

50. Audience Insight 29

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

53. Leverage multiple data sources

54. Different elements of ads optimized based on data and performance

56. Increase sales on skechers.com and return on ad spend

58. 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)

59. SKECHERS was able to continually refine its creative for maximum resultsResults

61. If you choose a micro target it should be because you have a very specific creative message for them

62. Targeting that costs more than your increased rate of results isn’t worth itIn Order to Move Share, You Need Scale 33

63. THE MEDIA LANDSCAPE

64. The Upside Is Way Up. . . 35 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

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

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

67. PRIVACY AND THE NEXT GENERATION OF TARGETING

68. Navigating the Privacy Waters 39

70. The “Cookie” Monster 41 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

72. Be aware of restrictions (rules) around collection and use of:

73. Personally Identifiable Information (PII)

74. Sensitive Information – such as sensitive health and financial dataRespect Consumers’ Privacy 42

76. Privacy Policy

77. Notice near targeted ads (enhanced notice)

78. Enable consumers to opt-out (opt-out page)

79. Use only non-personally identifiable information (non-PII)

80. Do not use “sensitive” information (health, financial, etc.)

82. Text/Icon displayed for all OBA ads

83. Clicking on the notice provides consumers with more information about OBA and the ad itself

85. Even the President Realizes the Value of Behavioral Targeting 46 “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

86. Questions? 47

88. We are experiencing a transformation of media buying across channels

89. This transformation means a shift to more dynamic, data driven audience targeting and media buying

90. Online advertising industry working to protect consumer privacy while delivering relevant services and contentSummary 48

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

92. Thank You Visit www.onlinemarketingsummit.com for more information Follow us @OMSummit