The Evolution of Display Advertising: From Rise and Fall to New Technologies

A Fundamental Guide to
Data, Targeting & the Future of Display
MAPPING
THE DISPLAY
LANDSCAPE:
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A Fundamental Guide to
Data, Targeting & the Future of Display
Mapping
the Display
Landscape:

2 FOREWORD
5 Chapter 1: The Display Landscape
21 Chapter 2: Dealing with Data
33 Chapter 3: FROM DATA TO AUDIENCE
43 Chapter 4: Audience Targeting for Branding
51 Chapter 5: Privacy
59 Chapter 6: What’s Next for Data-Driven Display?
66 GLOSSARY
70 About Netmining
CONTRIBUTOR ARTICLES
16 Why Real-Time Bidding Changes Everything
Sean Downey, National Sales Director, Display at Google
18 Real-Time Bidding: The Slope of Enlightenment
Brian O’Kelley, CEO, AppNexus
27 Data-Driven Marketing: 1st
Party Data Vs. 3rd
Party Data
Chris Scoggins, SVP & GM, DLX Platform, Datalogix
30 Social Targeting
Tom Phillips, PCEO, Media6Degrees
49 What is Online Media Verification?
Oren Netzer, Co-Founder & CEO, DoubleVerify
56 Privacy & OBA Self-Regulation
Colin O’Malley, Co-Founder, VP Strategy and Policy, Evidon

2 Forward
In the midst of the rapidly developing display
ecosystem, it’s easy to feel overwhelmed with
the new technologies, acronyms and players
in our industry. There are a lot of mechanics
involved in managing a media plan in today’s
digitally driven marketplace and the industry
is regularly challenged to keep up with these
changes and developments as they emerge.
Stayinginformedisessentialforonlinemarketers
given display’s growing importance. At the
most recent IAB “Future of Display” conference,
Neal Mohan, VP of Product Management at
Google, declared that spending will rise from
$25 billion in 2010 to $200 billion “in a few
short years.”
We have written this Display Guide to help you
navigate this fragmented and changing world
we work in, and hope it serves as a valuable
resource when approaching your display
initiatives.
Included in this guide are answers to some of
the most burning questions we hear again and
again from marketers:
 How should we respond to the fast-paced
evolution of the display landscape and what
we can expect in the near future?
 What exactly are all these technologies,
platforms and tactics – such as RTB, DSPs,
SSPs, Ad Exchanges, Data Exchanges – and
how should I be using these tools? Am I
missing anything in my toolbox?
ForewOrd
Mapping the Display Landscape:
A Fundamental Guide to Data, Targeting & the Future of Display

3www.netmining.com
 What are the best practices in relation to data
and audience targeting?
 We know how display works for direct
response objectives, but how can it work for
branding?
A number of individuals graciously lent their
time and talents to the production of Mapping
the Display Landscape. We’d like to take this
opportunity to thank them for their contributions.
To our savvy featured columnists: Sean Downey,
Oren Netzer, Brian O’Kelley, Colin O’Malley, Tom
Phillips and Chris Scoggins – we appreciate all of
you for sharing your keen insights and expertise.
To our “what’s next” fortune-tellers: David
Cohen, Jeff Huter, Scott Portugal, Philip Smolin
and Michael Stephanblome – we are excited
for the day when we can say you predicted
the future here first. And a shout out to Danny
Hellman (www.dannyhellman.com) for the fun
illustrations.
Last but not least, an advanced thanks to
the readers of this Display Guide who are
encouraged to comment, share, critique, tweet,
scan, blog or generally discuss the contents
herein. We welcome you to reach out and
share your thoughts directly with us anytime at
info@netmining.com or on Twitter @netmining.
Happy Reading,
Chris Hansen
President
Netmining

7www.netmining.com
Online display advertising emerged as the
predominant online marketing vehicle during
the dot com boom of the late 90s. For many
years, the way it was created, priced, packaged,
bought and sold remained unchanged. In 1998, a
company named goto.com (later Overture, then
bought by Yahoo! in 2003) began offering text-
based ads targeting keywords on a CPC (cost per
click) basis. Search marketing was born, giving
marketers a new advertising format to reach
consumers and new competition for limited online
advertising budgets.
Google’s entrance into the space solidified
search as a serious contender for online
marketing dollars, threatening display’s then held
dominance. The efficiency, control and easily
measureable ROI provided by search marketing
highlighted the limitations of display. In contrast,
display at this time offered no easy way to directly
access inventory; it provided limited control over
inventory and costs; and it saw low performance
and measureable ROI.
By 2005, display marketing had lost its luster as
budgets continued to shift from display towards
search. As seen in the IAB Internet Advertising
Revenue Reports, 67% of online ad revenue
could be attributed to display and 4% to search
in 2001. However, by 2006, display decreased
to 32% as search became the dominant online
advertising channel at 40%.
This dramatic shift can be attributed to one thing
– CONTROL. Search marketing gave marketers,
and the agents that managed media on their
behalf, control over where ads were displayed and
transparency into associated costs. As a result,
display providers were forced to innovate quickly
to stave off declining display dollars.
THE DISPLAY LANDSCAPE
The display landscape has changed dramatically since the first display banner appeared
in 1994. This chapter outlines significant milestones that have shaped the current
display environment and reviews the technologies and key players on the forefront of
this changing landscape.
The Rise & Fall of Display (2000-2005)

8 The Display Landscape
New Technologies Lead the
Turnaround (2005-Present)
Display needed to evolve to compete in a new
world dominated by search. It’s no surprise that
search companies, namely Yahoo!, Google and
to some extent Microsoft, were heavily involved
in display’s evolution. Through innovations and
acquisitions by these big players, marketers
started to see a new display industry emerge, one
that provided better access to inventory, more
efficiency and control over targeting and cost, and
better performance.
2005 saw the birth of the Ad Exchange.
Ad Exchanges were developed to provide
advertisers with better access and more control
over inventory. Several major deals catapulted
Exchanges into mainstream media buying,
including the acquisition of RightMedia by Yahoo!
in 2007 and the launch of Google DoubleClick
Ad Exchange in 2009.
Demand Side Platforms (DSPs) also began to
attract attention in 2007 with companies like
MediaMath and InviteMedia who helped make
media buying more efficient for marketers and
Ad Networks. This was the first platform that
aggregated media buying and selling in one place.
Even some Ad Networks, such as Turn, began to
morph into DSPs to take advantage of this market
development.
To improve performance and to provide further
control over messaging to different audiences,
these major companies began experimenting
with dynamic display. Google and Yahoo! once
again made significant plays in this space with
acquisitions of Teracent in 2009 and Dapper
in 2010, respectively. In 2011, Google made the
industry’s first Supply Side Platform acquisition
with AdMeld.
New and old players are now all integral to the
display ecosystem. This includes Ad Exchanges,
Ad Networks, Supply Side Platforms, Data
Exchanges and more, most of which work
RightMedia
Exchange
(RMX) Launch
April, 2005
BIRTH OF THE
AD EXCHANGE
2005 2007
Google Buys
DoubleClick
April, 2007
GOOGLE GETS
SERIOUS ABOUT
DISPLAY
InviteMedia
Launch
April 2007
EMERGENCE
OF DSPs
Yahoo! Buys
RightMedia
April, 2007
AD EXCHANGES
GO BIG TIME
Microsoft Buys
AdECN
July, 2007

9www.netmining.com
together in some capacity. Brands are finding
new confidence in the current display landscape
thanks to strides in brand safety, performance
and market transparency.
Expect to see more growth and consolidation
in the year ahead as major industry players and
new market-entrants seek to grab the impending
brand dollars shifting away from traditional ad
spend and toward display.
Key Technologies in
Today’s Display Landscape
Display needed to evolve to compete in the
new world dominated by search, and by 2005,
the changes had begun. What emerged was a
series of disruptive businesses and technologies
that changed the way display media was bought
and sold.
Here we provide an overview of each of these
technologies.
Ad Network
An online advertising service provider, often
with proprietary technology, that helps
marketers run display advertising campaigns
across various sources of online inventory,
including direct Publishers and Ad Exchanges.
Ad Networks typically include other services
as part of their media campaigns, such as ad
serving, media verification, privacy notification,
reporting, data and/or audience targeting.
MediaMath
Launch
Aug, 2007
Turn Launches
Their DSP
Sept, 2007
SOME NETWORKS
MORPH INTO
DSPs
Google
Launches
DoubleClick Ad
Exchange
Sept, 2009
THE AD EXCHANGE
GROWS UP
2009
Google Buys
Teracent
Nov, 2009
GOOGLE BOOSTS
DISPLAY PUSH WITH
CUSTOMIZED ADS

10 The Display Landscape10
Since the dawn of online advertising in the
mid-90s, display media has been aggregated
and sold through Ad Networks. In its early
stages, an Ad Network’s basic function was
to connect advertisers to the many Web
Publishers interested in hosting ads on their
site. Ad Networks assisted marketers in
executing media plans by offering one outlet
for buying inventory, reporting, optimization,
targeting and campaign analysis.
Today, Ad Networks distinguish their services
through advanced technologies (e.g. audience
networks) or specific vertical focuses (e.g.
retail networks). These advanced Ad Networks
continue to serve as valuable partners for
Publishers looking for trusted demand sources
and to marketers needing more in-depth
targeting and analysis.
More successful Ad Networks are investing
heavily in technology to provide further
valuable services to advertiser clients,
including data management, ad verification,
privacy notice and consent, and brand studies.
Who Uses: Advertisers, Agencies to reach
audiences; Publishers to sell remnant inventory.
Benefits: Buying inventory across multiple
sites is simplified for the advertiser as costs
are aggregated within one IO; Ad Network
buys can be more cost effective since other
expenses, such as ad serving, verification and
AOL AdDesk
Launches
April, 2010
AOL PLAYS CATCH
UP AND MAKES
THEIR INVENTORY
ACCESSIBLE TO
THE MASSES
2010
Google Buys
InviteMedia
June, 2010
GOOGLE GETS
EVEN MORE
SERIOUS ABOUT
DISPLAY
Yahoo! Buys
Dapper
Oct, 2010
YAHOO! FOLLOWS
GOOGLE’S LEAD
AND GETS DSP
AND DYNAMIC
CREATIVE
CAPABILITIES
THROUGH
ACQUISITION
Microsoft Shelves
AdECN and
Partners with
AppNexus
Feb, 2011
MICROSOFT
TRIES AGAIN TO
COMPETE IN THE
NOW MATURE
EXCHANGE SPACE
2011
DSPs & Ad Networks
Many Ad Networks and DSPs now offer similar
technology-enabled services. Both are viable
options for marketers looking to achieve scale
among target audiences. Rather than choosing
one type of company to work with, marketers
who want to achieve high ROI and efficiency
with media buys (and are willing to experiment
to find their optimal media mix) should test DSPs
alongside a variety of Ad Networks with proven
performance case histories. This will help identify
the right combination of partners to maximize
return against campaign goals.
Google Buys
AdMeld
June, 2011
GOOGLE GETS
INTO THE SSP
BUSINESS

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other costs, are often included in the price of
the media.
Considerations: Ad Networks typically do
not provide complete transparency into
inventory costs.
Ad Exchange
Online auction marketplace that facilitates
the buying and selling of inventory across
multiple Ad Networks and DSPs.
Ad Networks were created to consolidate
inventory and media buying across the
thousands of sites selling advertising on the
Web. By 2005, hundreds of Ad Networks
existed, giving rise to a new kind of ad
inventory consolidator - the Ad Exchange. An
Ad Exchange is an online auction marketplace
that facilitates the buying and selling of
inventory across multiple Ad Networks and
DSPs, often in real-time. Exchanges help
advertisers consolidate their Network and DSP
buys and maximize the return from each ad
impression.
Media buyers at advertising agencies are the
primary users of Ad Exchanges and often
access them directly through a DSP. With Ad
Exchanges, media buyers have more granular
transparency and control over the buying
process, including how much they pay for
each impression. For example, media buyers
can stipulate what they are willing to pay for
specific audience demographics and inventory.
Similar to search marketing, they can create
rules that dynamically update their bids (rules-
based bidding) based on the inventory’s
expected performance against campaign
goals. A large percentage of inventory bid on
in the Exchanges is real-time bidding (RTB)
enabled and this percentage continues to rise
because of the efficiencies RTB provides to
marketers and Publishers.
Who Uses: Advertisers, Agencies to reach
audiences; Ad Networks and DSPs to sell their
Publisher-partners’ inventory.
Benefits: Exchanges make the process of
buying on multiple Ad Networks more efficient
by consolidating inventory across Networks and
allowing advertisers to set rules for how much
they are willing to pay per impression based on
expected return against campaign goals.
Considerations: Exchanges focus solely
on providing access to large volumes of
inventory that can be purchased in an auction
environment with dynamic and variable
pricing. Exchanges typically do not provide
additional services required for a media plan,
such as data targeting and media verification.
As a result, most advertisers utilize Ad
Exchanges in conjunction with other Ad
Network or DSP partners.

Yield Optimizers/Sell Side Platforms (SSPs)
An advertising technology platform which
represents the suppliers of online ads
(Publishers).
SSPs give Publishers the ability to increase their
website advertising revenues by engaging with
multiple demand-side channels (Ad Networks,
Ad Exchanges and DSPs) through a single
vendor. SSPs simplify the number of vendors
a Publisher needs to work with directly, while
maximizing the number of advertisers who
have access to bid on their inventory. Marketers
will rarely work directly with SSPs but they are
a key element to accessing quality inventory.
Who Uses: Publishers
Benefits: Allows Publishers to maximize
their advertising revenues by expanding the
number of advertisers who have access to their
inventory (via Ad Exchanges, Ad Networks,
DSPs), while providing the efficiency of
working with one partner.
Considerations: Publishers are often cautious
when using SSPs, as they want to ensure that
these revenue streams do not jeopardize their
own direct sales efforts.
Online Data Providers
Any provider who sells data online.
The definition of an “Online Data Provider” is
broad and includes a number of players and
data types, such as companies like Experian
(financial data), Nielsen (demographic and
psychographic data), OwnerIQ (purchase
history) and more. These companies were
quick to make their data available to media
buyers just as Publishers made their inventory
available via Ad Exchanges. Today, most of
their data is sold in online Data Exchanges. All
of these companies sell data that can be used
in the process of building an audience for a
marketer’s online advertising programs.
Who Uses: Advertisers and their agencies, Ad
Networks, DSPs, Data Exchanges.
Benefits: Provides data that can be used
to build audiences to meet a marketer’s
campaign goals.
Considerations: Every data type and provider,
and their respective combinations yields
different results. To successfully employ data
from these providers, ongoing testing and
analysis is required to learn how to mix and
match data types to yield the best results.
Data Exchanges
Online auction marketplace where advertisers
acquire 3rd
party data that helps them better
reach their target audiences with display.
Data Exchanges were created as marketplaces
where Online Data Providers could sell their
data directly to DSPs and Ad Networks. Data
Exchanges give marketers access to audiences
who are in the market for certain products,

13www.netmining.com
demonstrate specific purchase behaviors or
adhere to certain demographics. Marketers
can work directly with Data Exchanges to add
more intelligence to media buys, although most
access Data Exchanges through intermediaries
like Ad Networks and DSPs.
Who Uses: Ad Networks, DSPs.
Benefits: Ease of access to a wide variety of
data that can be compiled to target audiences.
Considerations: As mentioned above, ongoing
testing and analysis is required to learn how
to mix and match data types to yield the
best results.
Demand Side Platforms (DSPs)
An advertising technology platform which
allows marketers to manage their online media
campaignsbyfacilitatingthebuyingofauction-
based display media and audience data across
multiple inventory and data suppliers in a
centralized management platform.
The rise of Exchanges and biddable display
media helped spur the creation of a new
type of online advertising technology known
as “Demand Side Platforms” or “DSPs.”
DSPs centralize the buying of auction-based
display media across Ad Exchanges and are
usually offered as both licensed technologies,
used by agencies and in-house marketers,
or as managed services. Those who license
the technology can use it to create display
campaigns that combine different audience
data and inventory to meet their needs. Bid
rules and optimization algorithms determine
how much the marketer will bid for the
inventory and audience data, and campaigns
are optimized continuously to maximize ROI.
With a managed service model, the DSP
provider will manage a marketer’s day-to-day
display campaigns and buy their biddable
media in addition to offering other campaign
services for an additional cost, such as ad
serving, media verification and data buying,
similar to the services offered by Ad Networks.
For advertisers who choose to license a DSP,
they may find that these platforms offer more
control over, and transparency into, the price
paidforeachindividualadimpression.However,
using these sophisticated technologies does
require training and daily resources to manage
campaigns. Marketers who want more “hands
on” help managing their display media utilize
Ad Networks or DSPs as a managed service
(or a combination of the two).
Who Uses: Agencies, Marketers.
Benefits: Control for agencies and marketers
over the buying of display inventory and
audience data, and transparency into media
costs. Under a self-service model, these
platforms should provide visibility into the cost
of the data and inventory purchased.
Considerations: While having complete

transparency into the price of each impression
may help many marketers and agencies be
more savvy about their media budgets, others
may find this too resource intensive to manage
on their own. In addition, some DSPs may have
additional costs for added services such as ad
serving, data and media verification.
How does RTB work?
The efficient RTB process can be seen in this
diagram.
➊ When a user visits a website with a display
ad, a call is made by the exchange server
supporting RTB to check with the Demand
Side Platforms or Ad Networks to determine
which marketer gets to serve the ad.
➋ There is a list of attributes associated with
each user and the platform checks if this user
has the desired attributes the marketer wants
to target.
➌ Based on the perceived value of this user to the
marketer, the marketer places a bid on this ad
placement and the highest bidding marketer
gets the spot.
In this case, the hotel marketer placed the
highest bid and the user is served a hotel
banner. The entire bidding process takes place
within a fraction of a second.
What is Real-Time Bidding (RTB)?
RTB is the buying and selling of ad impressions in
real-time in an online auction marketplace.
The centralization of media buying and selling
via platforms such as Ad Exchanges and SSPs,
opened the door to real-time bidding (RTB), or
dynamic, search-like bidding on a per impression
or per user basis.
For media buyers, RTB allows them to decide,
in real-time, whether or not they want to bid on
media based on the perceived value of the media
being bought and the audience being targeted.
Typically, the highest bidder gets their ad placed.
For Publishers, RTB provides them with the
opportunity to get fair market value for each
impression and many believe this should help
Publishers better monetize their ad inventory.

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100 millisecond
Platforms (DSP/Ad Network)
AD
Website
Single Platform to Single Exchange
Exchange / SSP
Platform 1
Platform 2
Platform 3
Hotel
Ad
Bid Price: $1.50
Bid Price: $1.30
ATTRIBUTES
Geo
Time of Day
Day of Week
Context
Placement
Bandwidth
Audience segments
Auto
Ad
Desiredtargetingattributes?





Single Platform to Single Exchange
Chapter Conclusion
The past five years of innovation in online
advertising has created an entirely new market
for buying and selling media, one fueled by both
big and small players. Recent years have seen
consolidation as market leaders like Google
and Yahoo! invest in ad strategies. Market
advancements have been perfectly timed with
the rise in targeting, consumer engagement and
new creative formats.
The market reshaped and old players like Ad
Networks reinvented themselves, while other
new players and technologies entered the space.
Data Exchanges, SSPs, DSPs and RTB are a few
examples of this. Each addresses a specific need
for marketers and Publishers.
The proliferation of accessible online data has
united inventory and created an ecosystem where
most platforms are working together in some way
to achieve campaign goals. An example of this is
an Ad Network working with Data Exchanges and
RTB platforms on behalf of a marketer.
Marketers are also being forced to innovate how
they approach media buys. Understanding the
players and how each impacts business is crucial
to building a successful program. DSPs and Ad
Networks that offer similar services should be
carefully evaluated to determine their right place
in a media plan.

Why Real-Time
Bidding Changes
Everything
Real-Time bidding (RTB) is the missing piece
that solves the challenges of efficiently and
effectively acquiring ad space online. Since the
first display ad was purchased in 2004, advertisers
have been dealing with the inefficiency of buying
in advance directly from sites in their media plans,
the difficulty of reaching the right audience with
manual methods and a sheer explosion of choice.
Today, through Google alone, there are over 2
million sites to buy on and over 500 million people
to reach globally. RTB turns these challenges into
opportunity.
RTB doesn’t just solve problems: it adds value
by helping advertisers attain a new level of
precision in acquiring ad space online. Through
RTB, advertisers can evaluate ad space based on
near perfect information about every impression.
Advertisers can know – before they buy – if their
ad will reach its intended audience, appear on
the correct placement on a page, appear within
a particular category of content and reach people
in the right geographies.
But what is real-time bidding? It’s an automated
process by which ad inventory, on an impression-
by-impression basis, is evaluated, bid on and
purchased on demand. When bidding in real-time,
advertisers must answer three essential questions
about every impression that’s up for auction:
Sean Downey
National Sales Director, Display at Google
Real-Time bidding is becoming more important to the future of the display
ecosystem, but how does it actually work? This section takes a look under the hood of
RTB, reveals how it is improving the industry and providing benefits to both marketers
and consumers alike.

17www.netmining.com
 Do you want the impression?
 What price are you willing to pay?
 If you win the impression, what creative do you
serve?
These questions must be answered in 100
milliseconds or less, across millions of impressions
every day.
While real-time bidding is a process, only
technology makes real-time bidding possible.
RTB requires two distinct layers of technology: a
“pipe” and a “brain.”
➊ The “pipe” of RTB is the real-time bidding
API (RTB API) that provides a server-side
connection to an inventory source and pushes
out a real-time stream of impressions to
eligible advertisers. The “pipe” announces
each impression individually as they become
available for purchase. At Google, DoubleClick
Ad Exchange’s RTB API is the pipe that
makes all Ad Exchange inventory available for
purchase in real-time.
➋ The “brain” of RTB is any real-time bidder that
connects to one or more “pipes” and evaluates
every impression that’s announced. The real-
time bidder is responsible for making the
best inventory acquisition decisions possible,
on behalf of the advertiser. At Google, Invite
Media’s Bid Manager is a real-time bidder
and Google Display Network uses a real-time
bidder under the hood.
In action, RTB takes place every time the “pipe”
announces an impression and the “brain” evaluates
it. By considering inventory in this manner – on a
per impression basis – advertisers get to be more
selective about the quality of inventory they buy.
They can place premium bids on the inventory and
audiences of the most value to the advertiser, and
can completely pass on inventory and audiences
of the least value to the advertiser.
Adoption of RTB is on the rise because advertisers
see the benefits. In a recent survey by Google
and Digiday, 47% of marketers and agencies who
responded said they intend to spend more on
digital advertising in 2011 because of the benefits
of RTB. In other words, rather than simply shuffling
money between different ways of acquiring ad
space online, RTB is growing the overall pie for
display advertising. Plus, a full 88% of marketer
and agency respondents will buy online display
via RTB in 2011, up from 75% in 2010.
Real-Timebiddingchangeseverything.Advertisers
can finally find the reach and frequency they need
for even the most niche audiences. They have a
greater degree of flexibility, which makes it easier
to drive performance. They can spend less time
on site-by-site negotiations, insertion orders and
billing. This allows more time to spend delighting
audiences with relevant and compelling ads.
When advertisers do this, everyone wins, from
the people who browse the Web every day to the
Publishers whose content they are consuming.

Real-Time Bidding: The
Slope of Enlightenment
We’re now in the second year of the real-
time bidding (RTB) phenomenon, and
everyone is asking: “how much is hype and
how much is reality?” Sellers and buyers have
complained that the results from RTB are not as
amazing as promised, that the inventory is not as
premium as hoped and that prices are just too
darn high. Fingers are pointing back to traditional
inventory, which is supposedly performing better.
Before everyone starts jumping ship, I suggest
we step back and look at the bigger picture: the
Adoption Curve.
One of my favorite business books is Crossing
the Chasm by Geoffrey Moore, which I highly
recommend. In it, Moore references a paradigm
developed by Gartner Group, which tracks the
typical pattern of technology adoption. Gartner’s
model characterizes the over-enthusiasm or
‘hype’ and subsequent disappointment that
typically happens with the introduction of new
technologies. Hype cycles also show how and
when technologies move beyond the hype, offer
practical benefits and become widely accepted.
The paradigm shows that after a Technology
Trigger (the introduction of a new solution),
there follows a Peak of Inflated Expectations
(e.g. what everyone reading this experienced last
year re: RTB). This is followed by the Trough of
Disillusionment (representing all the naysayers
today). However, what comes next in Moore’s
chart is critical: the Slope of Enlightenment,
representing real evidence of lift.
Gartner’s adoption paradigm is parallel to the
adoption of Ad Exchanges. Ad Networks were the
first to adopt the Exchange model several years
back, as well as RTB, but agencies didn’t buy into
thesenewmediabuyingchannelsasquickly.Today,
agencies are leading the pack because they have
recognized an opportunity to add tremendous
Brian O’Kelley
CEO, AppNexus
This section discusses the evolution of real-time bidding through the lens of an Adoption
Curve, and reveals why the Golden Age for real-time bidding is still ahead of us.

19www.netmining.com
value to their clients. Now Ad Networks and other
companies are scrambling to launch private Ad
Exchanges in a game of catch up.
I believe that this is our enlightenment period, and
I will offer three predictions based on this premise:
➊ At least half of the top 50 Publishers and
Networks will launch a private Exchange. At
one point, in the Ad Exchange 1.0 world, there
was very little control on the sell side and
DSPs started to lower prices. Today, Publishers
are getting smarter and are fighting back.
Yield management controls are now critical
components of any technology offering for
auction-based or RTB buying. I truly think this
will be the year of yield for Publishers.
➋ The biggest marketers who are embracing RTB
will take it a step further and bring exchange
buying in-house to monetize their proprietary
data. Marketers have a wealth of 1st party data
on their own users, whether gathered through
visits to their own websites or gathered
through their products. Savvy marketers will
use this wealth of data to more effectively
message these consumers across the Internet.
➌ RTB’s traction will only be stymied by increased
conflict between the buy-side and the sell-
side regarding data and transparency. I have
a buy-side client who was hoping to execute
buys anonymously to mask their identity. We
took that request to the Exchanges, and their
universal response was, “That’s fine as long as
that buyer doesn’t expect quality inventory.”
This didn’t sit well with the buyer, naturally, and
the dialogue is ongoing. At AppNexus, we sit
in the middle and are agnostic to the outcome,
but we appreciate the valuable perspective
into both buyers’ and sellers’ wants and
needs. It is this perspective that confirms
in my mind that the physical Exchange is
going away. It’s awkward to mediate between
buyers and sellers; it’s just a tricky business
model. Therefore, I believe that Exchange will
transcend from “noun” to “verb” with buyers
and sellers directly trading with one another
and bearing the brunt of those negotiations
directly.
So why do I think we are entering the Slope of
Enlightenment? The Demand Side Platform
(DSP) and Supply Side Platform (SSP) models are
already starting to change. Second generation
solutions are emerging everywhere, including
at my own company. There are more pilots and
more testing of these solutions. Conservative
companies are still cautious, but I know we, and
others, are making huge strides in gaining their
confidence.
At AppNexus, we see more than 10 billion
impressions a day run through our platform,
which is enormous growth over the last year. We
are also monitoring twice as many creatives and
demonstrating more RTB traction with agencies. I
know of many clients who can already credit large
portions of revenue to RTB. Real-Time bidding
works for both buyers and sellers. Come see
for yourself.

23www.netmining.com
Marketer Data (1st
Party Data)
Marketer data (also known as “1st
party data”) is
just that – any data that is created or owned by
the marketer. Marketers who know how to tap
into their own proprietary data will be able to
identify individuals who are most likely to convert
and discover information about their customers
to be used to deliver more relevant and higher-
performing display advertising.
What it is: Any data proprietary to a marketer,
such as search queries, site visitor data, CRM data
and more.
Where it comes from: A marketer’s website and
analytics, CRM database or any other source of
proprietary customer data.
How it’s used: Marketer data can be used to
improve a wide variety of marketing tactics.
For display advertising, it is most often used
for remarketing. Remarketing (or retargeting)
Dealing with Data
The current display landscape revolves primarily around two core components – inventory
and data. Inventory provides distribution (where an ad will appear) and data is used to
help marketers find and target the right audiences (who to serve an ad to) and determine
what messaging to serve them for more relevant advertising (what message to show).
As demonstrated in the previous chapter, the marketplace around display has quickly
evolved, creating mass efficiency and multiple lines of businesses, many surrounding
the collection and distribution of data. There are now a number of partners who can
help marketers understand data segments and how to leverage data for targeting. This
chapter provides an overview of common data types and an introduction to leveraging
data for targeted display campaigns.
Marketer Data and 3rd
Party Data

24 Dealing with Data
is the act of re-engaging with past visitors of a
website through display advertising with the goal
of driving them back to the site to complete an
action. For example, a marketer can target people
who exhibit certain behaviors on their website, like
abandoning their cart, and entice them with an
offer (e.g. “free shipping”) in order to encourage
them to come back and complete the purchase.
3rd
Party Data
3rd
party data comes from many sources, including
Publishers, retailers, e-commerce sites or even
offline data providers who have found ways to
utilize their data to target people online. With
the increase of 3rd
party data, Data Exchanges,
like BlueKai and eXelate, have sprung up to
increase availability to marketers and to make it
easier to aggregate the information used to build
audiences.
What it is: Any data that a marketer can
purchase in order to better identify and target
their audiences. Data can include demographic
or psychographic data, past purchase history,
financial data and more.
Where it comes from: Data Exchanges or
individual 3rd
party data providers.
How it’s used: 3rd
party data is used to compile
audience databases or “cookie pools.” For more
on how 3rd
party data sources are aggregated to
create audiences, please see Chapter 3.

25www.netmining.com
Common Data Used for Audience Targeting
Demographic Demographic data categorizes people socio-economically; for example, where
they live, how old they are or how much money they make. Marketers are keenly
aware of the demographics of their customers based on efforts in other marketing
channels. While this data can have fairly broad reach, it is still an effective way to
drive awareness and consideration in display advertising.
Social Graph With social data, a person’s interests are inferred based on their connection to
others on social network sites. Marketers can target a graph of similarly minded
people who may share interests in order to expand the reach of their campaigns.
Lookalike Lookalikes are potential customers modeled after actual customers on a
marketer’s website. Attributes of marketer’s customers are matched against a
larger audience, creating a pool of highly targetable users. This data can help
marketers reach new, prospective customers.
Purchaser Purchaser data includes information about people’s past purchases and/or items
that they own. Marketers can use this information to up-sell or cross-sell owners of
specific products.
In-Market/Intent In Market data indicates an audience that has the intention to take a certain
action, such as purchasing a product or booking a trip to a specific location. This
type of data comes from research sites, shopping or comparison sites, online
travel aggregators and vertical search engines. These sites identify user interests
down to a specific product or travel destination and then sell these users to Data
Exchanges.
The chart below identifies common 3rd
party data types and their attributes.

The Data Marketing Funnel illustrates how
Marketer and 3rd
party data can be used to target
audiences throughout the customer lifecycle. Data
at the top of the funnel, such as demographic and
contextual, reaches a broad audience and can be
a strong driver of brand awareness and site traffic.
Data at the bottom of the funnel, such as Marketer
(1st
Party) data, reaches a smaller but more highly
qualified audience (past visitors to the marketer’s
site), resulting in higher performance and
conversions for these types of display campaigns.
Marketers should deploy campaigns that utilize
both top of the funnel and bottom of the funnel
data. While bottom of the funnel data will perform
better and deliver higher ROI, campaigns using
top of the funnel data will help marketers broaden
their reach and replenish the bottom of the funnel
by increasing the number of people who visit
their website.
Chapter Conclusion
Data has become a crucial element in a
marketer’s toolbox. Leveraging data helps
marketers find and target the right audience
with the most relevant ad, which leads to higher
performance.
Marketers need to take the time to familiarize
themselves with the types of data available to
create better audience targeting and higher
performance. There is a healthy marketplace
of data experts who can help marketers
understand which data is best to apply to a
particular campaign and target audience.
Demographic
Social Graph
Lookalike
Purchaser
In Market/Intent
Remarketing
Data Marketing Funnel
The Data Marketing Funnel illustrates how Marketer
and 3rd party data can be used to target audiences
throughout the customer lifecycle.
ReachPerformane

27www.netmining.com
Data-Driven
Marketing: 1st
Party
Data Vs. 3rd
Party Data
There is currently a good deal of debate around
the value of data for online advertising and
more specifically, 1st
party versus 3rd
party data.
Just when you thought you had the discussion
framed properly, you have to overlay an additional
complexity of the data source – offline versus
online.
This simple diagram describes the marketing
tactics employed when using various data types.
There are obviously nuances within each cell and
we could debate additional examples, but we use
this framework to keep things simple.
Chris Scoggins
SVP & GM, DLX Platform, Datalogix
1st
party and 3rd
party data can help marketers effectively scale their target customer
group or cookie pool. The techniques discussed in this section will demonstrate how to
use 1st
party data to target consumers you already know and 3rd
party data to find new
sources of qualified consumers.
Targeting
Use Cases
CRM/Retention Acquisition
Website
Remarketing
Acquisition
1st Party Data 3rd Party Data
OfflineDataOnlineData

Let’s also start with the premise that some
data can probably help you better target your
marketing spend. I don’t think that’s very
controversial. The controversy arises when you
have to choose between various data types and
then try to ascribe a value. This remains elusive for
the entire industry, but to be honest, so does the
true value of media (offline and online) in general.
We’ll start with the two 1st
party data use cases.
Remarketing works very well. No debating this.
It’s the same technique used by direct marketers
(targeting their existing offline customers or
houseflies) and has been in use for 30+ years.
But neither approach scales, due to either limited
customer lists or website traffic. In online terms,
you can try to find the 100k Unique Visitors (UVs)
that went to your site last month and didn’t
convert, but what about the 15MM relevant UVs
that didn’t even get to your site. Do you just ignore
them? How do you get more consumers into the
top of the funnel? And why does this matter? It
matters because brands still matter and perhaps
now more than ever (given the abundance of
choice that exists within every consumer product
and service category.) Several online analytic
firms have reported the same findings over recent
years – targeted display advertising increases
brand search, brand recall and brand conversion.
People buy what they know and feel an affinity
toward. So back to the key question, “how do I
find more customers?”
One technique is to transform your offline
customer file into online audiences. There are
surprisingly few companies that have this proven
capability. Simply put, these vendors are able to
segment an advertiser’s offline customer list and
append these segments to an online cookie pool
for targeting. We have seen this work quite well
for clients across verticals, leading to a 4x to 14x
growth in ROAS figures. This “offline remarketing”
tactic makes sense – the advertiser is messaging
to either existing clients or “hand-raisers” that
have expressed interest in the brand’s offerings.
Now we move to the 3rd
party data options. While
1st
party data techniques are extremely effective
at targeting consumers you know, 3rd
party
data is used to find new customers (acquisition
or prospecting). However, because there is no
common currency or definition for an online
audience, the key question for any advertiser to
ask of a 3rd
party data provider is, “How do you
classify cookies into your segments?” In other
words, what actions or events trigger a cookie to
be labeled a “New Mom”, “Corporate Executive”
or “Luxury Auto Buyer”? Without digging into this
specific issue, you will never really know what you
are buying. In Datalogix’s case, we use a database
of $1.2T in offline purchasing tied to 100M US
households to categorize households (and related
cookies) into a few hundred audience categories.
A cookie is labeled “New Mom” because she buys
a lot of baby clothing, formula and diapers.

29www.netmining.com
Every data vendor has its own methodology
for grouping cookies into audiences – whether
the data you are buying is from an offline or
online source, you must understand how these
audiences are constructed so you know what you
are buying. If used properly, 3rd
party data can
be an extremely helpful tool to augment your 1st
party data and drive more consumers to various
stages within your purchasing funnel. These data
sets help you “fish in the right ponds,” avoiding
the millions of consumers that are less likely to
be interested in your products, which is, after all,
what effective online targeting is all about.
Datalogix and Netmining have worked together
to bring 1st
party and 3rd
party data options to
Netmining clients for the last year. We have
realized measured, improved results for direct
response (DR) and brand advertisers. For DR,
it’s about using data (1st
or 3rd
party) to drive
conversions, while brand advertisers tend to
focus on the composition and construction of
the audience segments. They want to be certain
that they are getting their message in front of the
right consumer groups. With the right data and
media partners, any marketer can leverage these
capabilities today.
Two key takeaways:
 If you aren’t using these techniques today, you
are missing out. They work and they make sense
to clients.
 Ask your media and data partners specifically
how they construct their targeting segments.
If they can’t answer in clear, concise language
that is easy to understand, look for another
provider.

The growth and success of social media platforms has created a vast quantity of data
about a marketer’s audience – who they are, what they do and what they like. There
are many ways to utilize this data to deliver targeted advertising. This section takes
a look at one form of Social Targeting which uses technology to observe patterns of
where customers cluster on the Web and builds models to help marketers identify new
customer prospects who share similar brand affinities.
SOCIAL
TARGETING
Social Targeting is commonly understood to
be simply delivering a marketing message to
the friends of your customers. There is, however,
a new model of Social Targeting that is potentially
more powerful, if not immediately obvious. This
new model for audience creation is based on the
social science principle that people with similar
interests tend to cluster into groups with shared
brand affinities and purchase patterns. This model
departs from the more obvious model of mining
social interactions to find good prospects for
your campaigns. Ultimately, the social science
version of Social Targeting is both very intuitive
and enormously powerful. By observing the
patterns of where your customers cluster on the
Web, Social Targeting technology can establish a
unique Social Signature for your brand and use
that Social Signature to identify your best new
customer prospects.
The broad arena of using various forms of social
data to build audiences is gaining currency among
major marketers. Facebook’s tremendous success
and the burgeoning activity at LinkedIn, Twitter,
Groupon, Living Social, Foursquare and other
social media have convinced most marketers
that they need a social strategy and need to
target an audience based on the new intelligence
derived from social media. The Social Targeting
TOM PHILLIPS
CEO, Media6Degrees

31www.netmining.com
technology invented by Media6Degrees takes the
concept that the Web is increasingly about people
and not sites, a place that captures all facets of
the personalities of its users and harnesses it in
the most privacy-friendly and scalable way for
marketers.
Social Targeting technology allows us to build
unique audiences for each of your campaigns by
targeting people who cluster with your current
customers around the Web, serving them a
message and then using conversion feedback to
continuously refine the audience.
Here’s how it works:
 FIRST: Identify your brand’s Social Signature.
Place pixels on your site and show us a sample
of your best customers. We identify sites where
your customers cluster. Sites with the highest
cluster density determine your brand’s Social
Signature.
 SECOND: Find your best prospects by
identifying other users who closely match your
brand’s Social Signature. We have partnerships
withPublisherswhotelluswhenyourcustomers’
cookies arrive on their sites. Users who gather at
the same places where your customers cluster
are most likely to convert. Close match = better
prospect.
 THIRD: Execute your buy. Prospects matching
your brand’s Social Signature visit sites in the
Ad Exchanges. We evaluate cookies and score
them for their likelihood to convert. If a cookie
has been to the places your customers cluster,
the score is high and we show them your ad.
 FOURTH: Track conversion results via our
feedback loop. Refine your Social Signature.
Refresh each user’s score to optimize
performance in real-time.
The result is an engine that identifies new
customer prospects with an efficiency that tends
to surpass other targeting methods.
We view Social Targeting as a breakthrough that
finally harnesses the real power of digital media,
extending audience identification beyond the
traditional blunt instruments of demographics,
context and intent. The power of Social Targeting
is that it is agnostic to those intermediate
measures of audience relevance, and that it can
be deployed at scale across brands, sub-brands
and individual offers with equal efficacy.
Social Targeting is one important way that digital
media is finally delivering on its demand creation
potential for marketers.

35www.netmining.com
There is no “one-size-fits-all” approach to building
an audience that will work for everyone. Marketers
have different target audiences and campaign
goals, and so the data used for campaigns should
be customized to each brand and based on a
marketer’s own proprietary data and unique goals.
There are two primary ways that data is used to
compile audiences for display targeting –
➊ Audience Targeting: Audience targeting, also
known as behavioral marketing, is a rather broad
term for developing display campaigns that
target specific segments of the population. More
specifically, audience targeting involves using
3rd
party data to segment consumers based on
their interests and intent. There are many forms
of data that can be used to determine people’s
interests and intent, including social graph data,
past purchase history, search data and more
(as reviewed in Chapter 2). Most marketers
experiment with many different types of data
to see what performs best and more often than
not utilize partners who can help them combine
different types of data to build a more complete
audience.
➋ Remarketing (Retargeting): Remarketing, also
known as retargeting, is the act of finding a
marketer’s past website visitors across the
Web and delivering them display advertising
with the goal of driving them back to the site
to complete an action. While remarketing is
often categorized as a type of audience or
From Data to Audience
Chapter 2 reviewed different types of data and their use in various targeting tactics like
remarketing, Lookalike targeting and more. However, using a singular data set is often
insufficient for achieving the size and scope of a marketer’s desired target audience.
Many technologies, such as those employed by Ad Networks, are able to aggregate a
multitude of data to build out a desired audience based on a marketer’s performance
or brand goals. This chapter provides a deeper look into ways that data is aggregated
and applied to create a desired audience.

behavioral targeting, it is actually quite different.
While audience targeting uses 3rd
party data,
remarketing relies solely on a marketer’s own (1st
party) data.
Audience targeting usually reaches a larger
audience than remarketing campaigns, so it can
be used to drive awareness, interest and intent.
Remarketing typically drives better performance
(conversions, CTR, CPA, ROI) since it’s targeted
to an audience who has already expressed an
interest in a marketer’s products and services.
Below are two examples that illustrate how data is
used in audience targeting and remarketing, and
how these campaign tactics can achieve specific
marketing objectives.
Case 1: Audience Targeting
A company marketing luxury sedans wants to target
men with a high household income (HHI) who are
above age 40, have no young children, and are in
the market for a new car. The goal of the campaign
is to generate a high volume of leads while achieving
a target cost-per-lead (CPL).
How does the company effectively target that
specific audience using data and technology, while
ensuring it meets its CPL requirements?
Approach: Broad Reach Campaign to
Drive Leads
Marketer: Manufacturer of Luxury Sedans
Target Audience: Male Age 40+, HHI $150K+,
in-market for new car
Program Objective: Drive online leads (sign-
ups for test drives) among target audience
The chart on the right illustrates how various data
types can be aggregated to create a targetable
audience, or audience pool, that meets the
marketer’s target.
Process for Audience Targeting
➊ By connecting with Data Exchanges, the Ad
Network (or DSP) is able to identify the various
data sets that match up against some or all of
the marketer’s demographic requirements (e.g.
HHI, age, etc.)
➋ Technology algorithms test the various
combinations of these data points collectively to
identify and compile the desired audience.
➌ Once the audience has been identified, the Ad
Network will utilize Ad Exchanges and other
inventory sources to locate the desired audience
across the web and serve advertising to them.
36 From Data to Audience

37www.netmining.com
Case Conclusion
Demographic
Data
Marketer
Data
Social
Graph Data
In-Market/
Intent Data
Audience Engine
Marketer’s
Audience
High HH1
Age 40+
No Young Children
In-market for a new car
HH $150K Luxury Shoppers
Car Models viewed in
marketer’s website
Fan of brand
on Facebook
How Data is Used to Create an Audience
To make the best use of the wealth of data
available, find a partner that has relationships
with multiple Data Providers, the experience and
technology to compile this data into an audience
pool customized for your brand, and the right
inventory partnerships to find and target your
audience at scale.

Case 2: Remarketing
An online retailer of adult and children’s apparel
wants to reach past website visitors and cart
abandoners and encourage them to come back to
their website and convert. The goal of the campaign
is to generate sales and the marketer has a return
on ad spend (ROAS) target they want to meet.
What is the best way for this marketer to reach its
site visitors and drive sales at a high ROAS?
Approach: Advanced Remarketing Campaign
to Convert Past Website Visitors
Marketer: Apparel eRetailer
Target Audience: Past Website Visitors
Program Objective: Drive sales while
achieving target return on ad spend
Since remarketing is solely targeted to a marketer’s
website visitors, 3rd
party data aggregation (as
shown in the example above) isn’t necessary. Rather,
performance and campaign results depend entirely
on the way a remarketing provider approaches
how they use data for campaign deployment and
optimization.
Standard vs. Advanced Remarketing
Standard remarketing tracks only the pages a user
visits on a website. This level of data does not provide
a complete picture of a visitor’s real interests and
propensity to buy. Today, more advanced forms of
remarketing exist that allow advertisers to gather
more detailed data about the visitors to their site.
This deeper level of data helps advertisers better
segment the visitors they want to serve ads to and
allows them to customize advertising creative to
each user’s individual product interests.

39www.netmining.com
For example, a visitor to the retailer’s website
might view the “Men’s Clothing” page and quickly
move onto the “Women’s Dresses” section, where
they spend five minutes browsing and then put
a dress into their online shopping cart. Standard
remarketing would know that this visitor had
viewed “Men’s Clothing” and “Women’s Dresses.”
Advanced remarketing technologies would have
tracked enough detail about the time spent on
the pages, products viewed and cart history to
properly segment this visitor as someone with an
interest in “Women’s Clothing” who is very likely
to purchase a dress.
By using advanced remarketing, the retailer
can better segment their site visitors based on
product interests and interest-level or likelihood
to purchase. Armed with this information,
the retailer can choose to target only specific
segments (for example, if they are having a
dress sale they may only want to reach visitors
interested in dresses with this messaging) and
can dynamically customize advertising creative
to reflect each user’s unique interests.
A challenge that online display encountered when
catching up to its search counterpart was figuring
how to enhance the relevancy of banner creative.
Unlike search marketing creative, which is text-
based and easily produced in numerous iterations,
it was not feasible for any marketer to create dozens
of banner creative variations to match the variety
of their display media plan. As remarketing and
audience targeting began to proliferate, display
creative needed to evolve.
This is where dynamic creative technologies came
into play. They allow marketers to create endless
variations of banners with minimal expense. A
stable of templates can be set up to adhere to the
look and feel of the marketer’s branding guidelines,
dynamic text and imagery, and automatically update
with product information to eliminate the need for
a creative team’s constant involvement. Testing
different variations of these elements not only helps
isolate the best converting versions, but also allows
the marketer to tie the creative and message directly
to the audience target and to a specific user.
For example, a budget hotel chain remarketing to
business travelers can create not just unique banners
for each destination a user is looking to travel to, but
also promotional messages based on whether they
are a loyalty member of that hotel. In addition, the
banner can display up-to-date room rates based
on availability in the user’s location. Tying message
relevancy to targeting is shown to be an effective
tactic in driving conversions and brand awareness.
Audience and Message Relevancy

Case Conclusion
Advanced remarketing uses more of a marketer’s
own website visitor analytics to create very detailed
audience segments for targeting. In addition, this
form of remarketing allows for highly customized,
dynamic display messaging that is tailored to each
user’s unique product interests and likelihood to
convert.
Generally, advanced remarketing is more highly
targeted and relevant to the user, thereby reducing
the need to deliver more impressions (and waste
budget) powering higher click-through and
conversion rates.
Chapter Conclusion
Data can be applied in various ways to achieve
different end results for a media campaign.
Marketers need to consider their specific goals and
target audience, and adjust the data mix accordingly
to make sure it is customized to meet their needs.
Audience targeting and remarketing are the most
common ways that data is being used to compile
audiences for display targeting, and they often
work best hand-in-hand. Audience targeting can
achieve reach and awareness, and drive new traffic
to a marketer’s site. Remarketing helps convert
more of these visitors, and drives performance
goals such as revenue, ROI and conversions.
Today, marketers have access to more advanced
remarketing solutions that provide a fuller picture
of each visitor’s behaviors and interests, which is a
major advancement from standard remarketing that
provides a narrow profile of only the pages visited.
These advances lead to better visitor segmentation
and personalized advertising creative, which results
in higher conversion rates.
Successful campaign performance is directly
impacted by the data used behind the scenes and the
tactics with which they are implemented. Marketers
who have a solid, foundational understanding of the
data available to them and tactics to deploy that
data will be better prepared to advise their partners,
and adjust campaigns to better reach their goals.

41www.netmining.com
Objective:
24 Hour Fitness, a nationwide gym chain open
24/7, was seeking new ways to grow membership
sales online, both nationally and in campaigns
focused on specific geographic areas. They were
aware of the typical brief life-time-value (LTV)
of a customer and wished to drive membership
enrollments of higher quality customers that
would stick with the gym for many years.
Solution:
24 Hour Fitness utilized Netmining to increase
response rates via enhanced targeting techniques.
Netmining uses a real-time scoring engine to
identify and profile all site visitors, and create
highly qualified audience segments based on
their engagement metrics. The engine provides
detailed visitor behavioral information (i.e. time
spent on page, recency and frequency of visits)
to determine a visitor’s true buying interest - the
customers that show the most interest are more
likely to become long-lasting members. 24 Hour
Fitness leveraged this data to rank the users
who visited 24hourfitness.com but did not buy a
membership and delivered ads only to those who
had the highest engagement with the site. This
smart retargeting eliminated impression waste and
drove the best impression to sales ratio and the
lowest CPL on 24 Hour Fitness annual media plan.
The campaign ran for twelve months and became
more successful the longer it ran. The retargeting
audience pool grew and new users were added
daily. The growing number of users helped to
increase the accuracy of the targeting engine.
Each user’s browsing and buying behavior
provided additional data that was fed into the
algorithm to refine its ability to identify those that
had the highest propensity to buy.
Based on the data obtained from each user’s
profile, the marketer retargeted the highest
scoring customers with display advertising that
offered a 7-day free pass within the banner
itself to drive online memberships. The creative
contained a simple form with minimal fields to fill
in to facilitate an easy registration process. The
24 Hour Fitness:
Remarketing Campaign

marketer tracked the passes printed, redeemed
at clubs and full memberships obtained through
these passes to determine the effectiveness of the
campaign. This data was also collected and fed
back into the scoring engine to accurately target
future users.
Netmining helped the marketer set up local,
geo-targeted remarketing campaigns, such as a
two month push for New York City membership
enrollments.
Creative Samples:
Results:
Netmining successfully tailored a remarketing
program for 24 Hour Fitness that generated
leads and sales cost-effectively. Within twelve
months, Netmining was driving 10% of the brand’s
total marketing leads and accounted for 40% of
membership sales with just 15% of the budget initially
assigned to Netmining’s remarketing campaign.
Netmining performed better than most other
marketing investments 24 Hour Fitness worked with
during the campaign flight, including paid search
and all other display programs. Netmining drove a
66% higher ROI than all other media channels.
Netmining’s advanced Smart RemarketingSM
consistently converted the most visitors by
efficiently targeting only those with the highest
buying propensity.

45www.netmining.com
Driving Branding Objectives
Typically, audience buying for direct response
initiatives is largely focused on finding users that
are proven to have an affinity for or an “interest” in
what a marketer has to offer. By contrast, building
audiences for branding is usually about increasing
awareness and consideration among a wider
audience of “potential customers” or people who
meet a marketer’s target demographic (e.g. Men
18-34 interested in sports cars). Many times it is
more about capturing new customers and their
attention in a unique and creative way.
AUDIENCE TARGETING
FOR BRANDING
Audience targeting has been primarily utilized for direct response campaigns where
marketers measure success based on a ROI goal, like cost-per-acquisition (CPA) or
overall return on ad spend (ROAS). Because audience targeting can now efficiently reach
highly specific and desirable audiences at scale, it has the potential to play a vital role in
attracting more brand dollars towards display advertising and online media.
This chapter illustrates the key factors marketers should consider when using audience
targeting for branding.

46 Audience Targeting for Branding
Audience targeting for branding can be used to
achieve a variety of objectives, such as:
 Driving awareness of a product, marketing
program or other initiative among a brand’s target
audience online
 Increasing familiarity and consideration among a
marketer’s target audience
 Creating brand influencers
 Understanding where a brand’s complementary
non-endemic audiences are
How to Evaluate
Marketers interested in running brand advertising
campaigns should work with partners like Ad
Networks or DSPs to evaluate four key areas:
Audience, Inventory, Creative Canvas and
Measurement and Analytics. Knowing the right
questions to ask will help marketers determine if
the desired audience will be reached and the brand
will be safe.
 Audience – What audience do I want to reach
to achieve my objective and what partners are
best equipped to help me utilize data to find and
target these audiences at scale?
 Inventory – What types of inventory do I want my
brand associated with and what types of inventory
am I not comfortable seeing my advertising run
on? How will the inventory in my program be
verified to ensure that it’s brand safe and meets
my stated requirements?
 Creative Canvas – What creative executions are
available to help me engage the target audience?
 Measurement and Analytics – What types of
measurement studies or analytics are available to
help me monitor the efficacy of the campaign as
it relates to my objectives?
Audience
The types of data employed in finding and building
out an audience for a brand campaign are not
that different from a direct response program.
Demographics, search history, past purchases and
other types of data are also used for branding – it’s
how they’re employed that varies based on direct
response versus brand goals. For example, an
electronics manufacturer can continue to leverage
What
AUDIENCE do
I want to reach?
What CREATIVE
execution will
most engage the
audience?
What
MEASUREMENT
& ANALYTICS
studies will help
monitor the
efficacy of the
campaign?
What types of
INVENTORY do I
want to run on?

47www.netmining.com
its customized audience pools to stay top of mind
and run creatives without specific calls to action.
The primary goal in this instance isn’t to drive
conversion, it’s to enhance awareness.
Inventory
Context and placement brands are important
factors for brand marketers. Many brands have
strict guidelines on the type of content they want
(or do not want) their brand associated with.
They also often prefer premium, above the fold
inventory to maximize the chance of the user
viewing and interacting with their ad. However,
marketers need to carefully consider strictness
of inventory guidelines and weigh the resulting
impact on the scale and reach of their programs.
Publishers are realizing that the new display
ecosystem can help streamline the process of
matching brands with the right inventory. This
relationship resembles the standard spot media
buy with the simplicity of buying through an
Ad Exchange.
Verification
Concerns over appearing next to inappropriate,
user-generated or mature content have held
back brand dollars. In recent years, verification
companies have emerged to address this problem
and can be deployed to audit placements. These
services identify the location of every ad being
served and flag any inappropriate sites and pages
that could harm or embarrass a marketer.
Brand marketers often require their partners
to segregate their inventory into brand safe
categories – well-lit areas of their network where
brand marketers are comfortable displaying their
ads. Grouping of high value sites, commonly
known as “Brand Safe,” are being packaged
together to alleviate marketers concerns over
where their ads are being shown. These inventory
packages command premium CPMs and increase
a Publisher’s yield.
If evaluating a partner such as an Ad Network, for
example, ask about integrated media verification
services, such as DoubleVerify and AdSafe.
These companies also monitor other campaign
specifications, such as placement on the page
(e.g. above vs. below the fold), geographic
specifications and IP, quality of content (e.g.
user-generated vs. premium content), share of
voice on the page and more.
Creative Canvas
Branding objectives, such as driving increased
awareness, purchase intent and loyalty, require ad
creative that’s engaging and impactful. In recent
years, ad format advances have been made to help
fight banner blindness and encourage engagement.
Rich media has become widely incorporated in
campaign strategy planning. These additional
formats give marketers a sizable and flexible
creative canvas that allows for better storytelling
and enhanced interactivity. Popular rich media

formats include dynamic display, expandables,
overlays and floating ads. Video has recently emerged
as a strong contender for ad dollars with the rise of
brand-sponsored content and social media.
Measurement and Analytics:
While brand marketers want to see traditional online
metrics such as ROI, CTR, impressions-to-revenue
and impressions-to-conversions for campaigns,
the real test of a successful branding campaign is
determined by how well it meets a marketer’s brand
objective – did it drive increased purchase intent or
awareness? Brand studies are one way to measure
this type of performance.
These studies are effective for insights into how
consumers react to ad creative and messaging, if
ads are reaching the right audience and if there
is any lift in purchase intent or awareness. Brand
studies are a standard offering from many Networks
and Publishers as a value-add to working with them.
Marketers should ask these providers about their
brand studies to evaluate if they’ll measure the
necessary performance indicators.
Chapter Conclusion
Brand marketers are seeking an all-encompassing
solution to reach target audiences at scale using
high impact creative in relevant, brand safe
environments. Challenges remain for brands looking
to take advantage of audience targeting and
data-driven display.
Audience verification is in its infancy and scale
remains a challenge. Publishers and inventory
partners offer varying degrees of inventory control
and transparency. In addition, ad units to date have
been limited in their creative flexibility. New IAB-
approved ad units that offer more flexibility and
creative license for brand advertisers are only now
being slowly rolled out.
These challenges are actively being addressed by
many in the industry who recognize that increased
adoption of display and audience targeting for
branding may be the key to shifting major dollars to
the digital realm.

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Media verification gives advertisers confidence around where their ads are being
displayed and is one way to ensure brand safety and drive campaign performance online.
This section will explain how media verification works and why it is important for brands.
What is Online
Media Verification?
Reaching an audience of 215 million online
viewers should be an advertisers dream, but
advertisers often resist moving ad dollars to the
Web because it lacks accountability, transparency
and compliance.
Traditionally, verifying advertising delivery was as
simple as turning on your television or visiting your
local newsstand to see your commercial or print ad
run.Inthecomplicatedwebofonlineadvertising,it’s
not that simple. Ad Networks, Ad Exchanges, DSPs,
Yield Optimizers and other vendors have created
efficiencies in online advertising marketplace,
as well as additional complexity between the
advertiser and the moment ads get served.
A survey of more than 140 agency executives for the
largestbrandsinthecountryfoundthat72.4%chose
brand safety over scale. Advertisers and marketers
are more interested in reaching the right audience
on the Web in an accountable and transparent
way. Networks and Publishers are concerned about
compliance, trust and accountability too, and
are looking for ways to ensure their advertising
inventory is being best monetized and meeting the
needs of their advertising customers.
One way to ensure brand safety online is through
media verification—a process that analyzes and
verifies where and in what context ads appear
online and ensures ad campaigns run as intended.
Here are the aspects of verification that you should
know before starting the process and conversation
with a media verification partner:
➊ What can be verified?
On average, 30% of online ads are non-compliant—
they do not appear where, when or how they are
supposed to. That means a third of your ad budget
is wasted or even working against your brand if ads
appear next to pornographic or controversial content.
Oren Netzer
Co-Founder & CEO, DoubleVerify

Media verification tracks what sites and pages your
campaign is running on, where on the page (above
or below-the-fold) it appears, ads that run on
international sites, ads that run next to competitor’s
ads and ads that are fraudulent. The most robust
solutions in the market track for non-compliance
with regards to inappropriate content, geo-targeting,
ad placement, competitive separation and fraud
detection.
➋ Big Guys?
Major Publishers accept or certify verification vendors
to classify and track ads on their sites. The majority of
inventory is purchased on AOL, Google, Yahoo! and
MSN. If providers aren’t certified on these sites, then a
large percentage of a media buy is unverified.
➌ Content Classification?
A common complaint digital advertisers have is that
ad campaigns did not run next to appropriate or
“safe” content.
You’ll want to know how content on a page is
analyzed and deemed safe. What variables are
taken into account? What are the red flags? What
parameters are used to determine if a site is brand-
safe? Does the verification technology adhere to the
IAB’s standard classification system or do they rate
Publishers themselves?
Vague specifications align your product with too
much unwanted content. Stronger limitations
suffocate your campaign. Find the correct balance
and make sure you’re not tripping over your own feet
trying to fill an insertion order.
➍ Block or Monitor Ads?
Media verification is only as good as its ability to
see through nested iframes and its classification
component. If technology can’t provide accurate
insight into the nature of the content where your ads
are being placed, then you’re not going to get the
best results—oftentimes your campaign will suffocate
as it is subjected to inaccurate blocking and incorrect
content categorization. Make sure the ability to see
through nested iframes is above 95%.
➎ How to Remediate?
Achieving 100% compliance on every single ad
is unrealistic in the complex online advertising
ecosystem. Renegade ad placements are expected,
especially for larger orders. All parties involved
need to remediate issues as efficiently as possible
to continue with a successful partnership. Real-
Time reports showing how ad buys are performing,
whether it be by analyzing page placement, collisions
with competitors or over-saturating specific sections
in addition to a knowledgeable team to work with
your partners on remediation are the tools you need.
These tools help you stay ahead of potential non-
compliance bottlenecks and give your team a head
start in correcting current and future insertion orders.
With the web audience rapidly growing, the need for
verification services has also grown. Marketers want
to guarantee their dollars are working for, and not
against, them. And Publishers and Networks want to
make sure they are driving the best performance for
their advertisers. Understanding media verification
empowers your team to get serious about staying
brand-safe while deploying that ad campaign you’ve
worked so hard to put together.

53www.netmining.com
There’s a cultural component to ensuring
privacy. One of the paradoxes of working in
online advertising is the interdependency and
fragmentation that exists. Even the simple process
of buying, targeting, delivering and reporting on
a display ad often takes teams of people across
different organizations to execute. Most of us take
this as both a given and a cost of doing business
in this space.
All parties involved in this ecosystem – from
the agencies and marketers to the Publishers,
Ad Networks, platforms, data companies and
other vendors – need to share responsibility
for managing and ensuring privacy compliance
across the business ecosystem.
Given the interdependencies that exist in our
business, no one group can ensure privacy
compliance on their own. This is why all parties
must ensure these guidelines are upheld.
Privacy
What’s happening around privacy impacts everyone in online advertising -
marketers,Publishers,brands,DataProvidersandbeyond. Theindustryasawholehasbeen
battling the FTC, proposed Congressional Legislation, and public misperception around
targeting, all while trying to self-regulate.
For the first time our industry has to truly work together to protect our
sustainability. Industry-wide self-regulation requires support from all parties, including
marketers, to stem off un-informed government rulings that could, literally, take us back
to square one.
Privacy takes a Village

54 Privacy
Ways for marketers to protect themselves:
 Only work with media partners who are
members of the Network Advertising Initiative
(NAI) and/or the Digital Advertising Alliance
(DAA).
Companies who join the NAI are required to
adhere to privacy standards that have been
encouraged by the Federal Trade Commission.
When you partner with a company that is not
a member of the NAI or DAA, you not only
impede the progress of self-regulation for our
entire industry, but you put yourself at a much
greater risk for a privacy meltdown.
 Support Enhanced Notice
EnhancedNoticeisaconceptwhereconsumers
are provided a notice of online behavioral
advertising outside of traditional privacy
policies. The concept was initially conceived
by the FTC and has been incorporated into
industry standards espoused by the NAI and
DAA. The IAB, DMA, OPA, AAAA’s and ANA
have signed onto Enhanced Notice on behalf
of their membership.
Enhanced Notice requires that the Advertising
Option Icon be placed on display ads which are
targeting using Online Behavioral Advertising
(OBA). Netmining works with compliance
partner Evidon to ensure the Advertising
Option Icon appears as necessary.
Enhanced Notice ALSO requires the
Advertising Option Icon (or a link that reads
“Ad Choices”) appears at the footer of any
page where data is being collected for OBA
purposes.
This brings us to our next piece of privacy
advice: Ensure that your website privacy
disclosures are compliant.
Advertisers, Publishers (and agencies) need to
ensure that their website privacy disclosures
are an accurate reflection of your privacy
practices and are in compliance with industry
standards.
Advertisers don’t always think of themselves
as Publishers. However, when an advertiser
collects and/or enables third parties to collect
data on their sites for remarketing and other
forms of OBA, this needs to be disclosed.
Advertisers can ask their partners to provide
sample language for their sites. This language
should always include a link to the NAI
opt-out site.
Where data is being collected on a web page
for OBA purposes, that web page should have
an Enhance Notice link at the footer.

55www.netmining.com
Here are the two steps for ensuring Enhanced
Notice at the footer of each web page.
➊ Step 1: Provide a link at the footer of every
web page to indicate participation in the Self-
Regulatory Principles for Online Behavioral
Advertising. The link should include: 1) the
Advertising Option Icon that can be licensed from
the Digital Advertising Alliance at http://www.
aboutads.info/ and 2) the phrase “Ad Choices.”
➋ Step 2: When the user clicks on the link
provided in Step 1, the user should be taken to
a page that includes additional information on
Online Behavioral Advertising and includes an
opt-out link, such as http://www.aboutads.info/
choices/
Advertisers can also work with compliance
vendors such as Evidon and TRUSTe to provide
an Enhanced Notice at the footer.
Chapter Conclusion
Many steps are being taken by the government
and members of our industry to reach a resolution
around targeting that makes all sides happy.
Audience targeting is a significant reason our
industry is experiencing growth. Marketers can
work with providers to ensure alignment with
industry-supported guidelines and integrate the
appropriate consumer-facing messaging.

56 Privacy
Privacy & OBA
Self-Regulation
Privacy is a hot topic issue these days and
you hear about it most places you look – in
the media, in D.C., and in the industry. Privacy
issues in online advertising came to a head
in February 2009 when the Federal Trade
Commission released a staff report calling for
more transparency into and control over how
consumers’ data is used in online ad targeting.
In response to this call for more transparency,
a cross-industry coalition composed of the
American Association of Advertising Agencies
(AAAA), American Advertising Federation
(AAF), Association of National Advertisers
(ANA), Direct Marketing Association (DMA) and
Internet Advertising Bureau (IAB) created the
Self-Regulatory Principles for Online Behavioral
Advertising. The Digital Advertising Alliance
was formed in October 2010 to address the
implementation of the Self-Regulatory effort,
while the DMA and Counsel of Better Business
Bureaus (CBBB) were charged with leading the
enforcement effort. The DMA and CBBB will be
using a monitoring platform provided by Evidon,
as well as consumer and competitor-based
complaints to aid in enforcement.
Colin O’Malley
Co-Founder, VP Strategy and Policy, Evidon
One of the most important and relevant issues concerning our industry today is that of
privacy and self-regulation. This section will explore privacy rules and regulations, what
these mean for our industry and for marketers, and how marketers can use self-regulation
and transparency to build a stronger relationship with consumers and brand fans.

57www.netmining.com
The Self-Regulatory Principles for Online
Behavioral Advertising (OBA) impacts any
company leveraging 3rd
party behavioral data;
this can include anyone in the online advertising
ecosystem from brands to website owners, from
Networks to agency trading desks. The Principles
define OBA as “the collection of data online from
a particular computer or device regarding Web
viewing behaviors over time and across non-
affiliate Web sites for the purpose of using such
data to predict user preferences or interests to
deliver advertising to that computer or device
based on the preferences or interests inferred
from such Web viewing behaviors.” Advertising
tactics such as retargeting and 3rd
party audience-
based buying are great examples of OBA.
To demonstrate compliance with the Program,
brands need to provide enhanced notice
and choice to consumers on campaigns and
owned websites where third party behavioral
data is being used or gathered. Notice usually
consists of the Advertising Option Icon ( ) and
accompanying AdChoices text. Behind this notice,
the brand should provide the consumer the ability
to opt out of future behavioral targeting from the
applicable data providers. Many brands choose
to work with a DAA-approved provider such as
Evidon to manage the technical specifics of the
implementation of notice and choice and to
ensure a best-in-class user experience.
Leading brand marketers see the self-
regulatory program as an opportunity to build
trust with consumers by providing a new
layer of transparency and control over their
online experience. Notice becomes a signal to
consumers that the brand cares about consumer
privacy and has nothing to hide, in addition to
being OBA compliant. Consumer research from
November 2010 by Evidon shows that 67% of
consumers feel more positive towards brands
that give them control including opt out options,
and 36% are more likely to buy from transparent
brands. Working with a provider such as Evidon
allows brands to benefit from consumer brand
equity created from a robust notice experience,
while ensuring a consistent level of information
and centralized audit trail across all media buys.
Of course, the landscape has hardly remained
static since the arrival of the program. Consider
the following milestones over the last 8 months:
 The FTC issued a new staff report in December
2010 calling for the self-regulatory program to
show more rapid progress and supporting a
new Do Not Track mechanism
 The BBB and DMA launched their self-regulatory
enforcement programs
 Mozilla, Safari, and IE all announced (or
otherwise leaked) embedded support for
Do-Not-Track headers
 Evidon surpassed 30 billion in ad notices served

58 Privacy
 The IAB Europe announced an EU self-
regulatory program
 Bills addressing online advertising privacy
have been introduced in Congress with
bipartisan support, including the Kerry &
McCain ‘Commercial Privacy Bill of Rights,’
Representative Stearns’ ‘Consumer Privacy
Protection Act of 2011,’ and Senator Rockefeller’s
‘Do-Not-Track Online Act of 2011’
The FTC is already armed with sufficient
authority to regulate OBA, and they remain the
most significant governmental force monitoring
the market. Browser based DNT mechanisms
represent a new influence on the market,
ostensibly operating on behalf of the consumer,
with the potential for an even greater impact than
government. The bills circulating in Congress,
while they gain the most headline coverage and
have the potential for significant impact, are
hard to handicap, both in substance and timing.
Perhaps more importantly, they are being written
with OBA self-regulatory program in mind, and
several have safe harbor provisions for companies
that participate in the program.
So, through all of the far-reaching noise, what is a
marketer to do? Smart marketers are focusing on
what they can control and thinking strategically:
➊ Lead with transparency as a brand strategy, not
just a compliance strategy.
➋ Get with the self-regulatory program. In the
last 8 months, the self-regulatory program has
come of age. It’s critical for the preservation
of the OBA industry, and its participants are
already being recognized as leaders by the
BBB, Congress, the media and agencies,
through their RFPs.
We can’t predict the future, but we can focus on
core marketing principles and take ownership of
our relationship with the consumer. And while the
firmament around DC, Brussels and the browser
manufacturers continues to settle, our best
weapon against business disruption is an effective,
broadly adopted self-regulatory program.

61www.netmining.com
Direct response dollars have been a major catalyst
for the state of our growing display business, but
brand budgets will be the real game changer for
data-driven display.
Advances in technologies, such as across hyper-
targeted online video, digital television and social
media, are finally convincing brand marketers to
take a closer look at how data can deliver more
impactful digital advertising.
What’s more, many in the industry are actively
working to encourage conversions and
consensus around proper measurement and
privacy standards, which helps provide brands
the reassurance and approved standards they
need to significantly shift more display to their
media mix.
Brands are investing heavily in online activities
to get more social and interactive with their
audiences. Online advertising plays a significant
role in their broader brand marketing mix. The
industry can expect larger budgets, longer
campaign flights, engaging creatives and more
consistent brand dollars to flood the market.
For more on future developments in data-driven
display, we asked industry insiders spanning
the market for their perspectives on the
developments ahead:
What’s Next for
Data-Driven Display?
The display landscape is continuously evolving with many technology innovations still
to come. Moving forward, much of these innovations will address brand marketers’
needs around measurement, standards and transparency to attract more dollars to
online advertising.

62 What’s Next for Data-Driven Display?
Scott Portugal
VP Business Development
ContextWeb
Audience targeting will cease to exist as a stand-
alone tactic – it will become the entire media
plan, with the likes of social/contextual/search/
retargeting mechanisms all used in cohesion. We
will finally settle on a few core “value” metrics
(exposure value, engagement value, click value,
conversion value) that help marketers better
understand user movement down the decision
purchase funnel, creating a holistic digital
audience strategy. With Publishers building out
private exchanges, real-time audience buying in
display, video, mobile, and social will be utilized
as a brand vehicle as much as a performance
tool. Publishers will self-declare “sponsorship”
packages with price floors in real-time, allowing
for more efficient deployment of real-time
budgets into brand safe environments. This will
lower the cost of getting campaigns to market
(on the sell side, too), meaning sales teams will
be able to focus more on mid and long tail buyers
who are currently underserved outside of a few
local sales teams. Strong RTB usage today means
strong local budgets tomorrow.
Jeff Huter
VP Agency Development
eXelate
Too often, 3rd
party audience data is viewed as a
simple means to achieve performance lift, which
leads to a short term evaluation on a simplistic
pass or fail grade system and overlooks the larger
benefits of 3rd
party data. Looking ahead, 3rd
party audience data will prove to have additional
value to a marketer’s overall communication plan.
Marketers must have a continual dialog with the
audiencesegmenttheyaretargetingasconsumers
can evolve into buyers. In addition, understanding
in-market/intent behaviors aggregated from
outside your domain provides valuable insight
that can fuel a more holistic communication
strategy. Inspection of the audience segment
will reveal additional characteristics about these
shoppers that may be worth considering as a
direct targeting attribute. The comparison of
particular brands to this group may also inform
underutilized audiences for targeting prospects.
Effective audience targeting in the future will
be graded on a new system that considers
contribution and performance throughout the
semester, not just the final exam.

63www.netmining.com
Philip Smolin
VP Product & Marketing
Turn
The digital advertising industry is undergoing a
rapid and dramatic evolution. It began with the
introduction of auction markets, continued with
the advent of DSPs and further accelerated with
the introduction of RTB. In fact, the adoption
rate of RTB has been explosive, with almost 50%
of display advertising now available through
RTB. The next evolution of RTB has already
begun with the introduction of private seats
and ‘prioritized bidding’. This new functionality
enables Publishers to make premium inventory
available to select buyers at pre-defined prices.
But it’s the third evolution of RTB which will be
the most interesting.
In 2012, RTB will expand further to begin
supporting what are called ‘forward markets’.
Today’s Ad Exchanges are spot markets where
each impression is sold in real-time (and without
any guarantee of future delivery). In contrast,
forward markets will enable a buyer to view what
impressions a Publisher has for sale one day, one
month or one year into the future. The power of this
model is its ability to combine audience targeting
and algorithmic optimization with premium
content and guaranteed sales. The concept of
prioritized bidding and forward markets will
revolutionize not just basic display advertising
but all digital marketing. Sophisticated rich media
units, video, mobile and even digital-out-of-home
inventory will all be sold through RTB. The end
result for advertisers is incredibly exciting, where
true multi-channel campaigns and up-front buys
can be planned, purchased and optimized with
the single click of a button.
David Cohen
EVP Global Digital Officer
UM Worldwide
Today, we have well developed data and audience
targeting ecosystems that are largely bound by
platforms. Deep resources exist in the online and
mobile ecosystems with rapid growth across a
wide range of cable, satellite and over-the-top
television solutions. The greatest area of evolution
over the next two years will be the convergence
of these data constellations into one holistic view.
The race to a platform neutral world is red hot
today. Sony, Microsoft, Google and Apple are
all aligning their assets into a delivery agnostic
ecosystem which will provide a single insight
across all consumer touch points. Marketers
will soon be able to deliver custom and relevant
messages at the right time regardless of delivery
mechanism. It is at that point that we will have
entered an era of marketing relevance that we
have only dreamed of to-date.

64 What’s Next for Data-Driven Display?
What’s Next in Europe
Michael Stephanblome
Co-Founder & CEO
AdJug
The Display Marketplace in Europe has generally
lagged behind the US market in terms of size,
adoption of new technologies and availability
of online data. While real-time bidding (RTB),
Demand Side Platforms (DSPs) and Advertising
Exchanges are now forming an important part
of the overall US Advertising Ecosystem, they
are just starting to gain traction in Europe with
the UK leading the way and France and Germany
following.
In 2011, European marketers finally established
display advertising as a relevant performance
marketing channel next to paid search and
affiliate marketing. This has been driven by three
main factors:
➊ The availability of large amounts of low price
social media inventory through Ad Networks
and Exchanges.
➋ Better targeting capabilities through
remarketing and customized audience
segments.
➌ Better creative capabilities through real-time
personalization of banners and direct targeting
of products and services within the creative
based on previous user behavior.
All of the above have led to a strong rise in media
spend in sectors that had previously ignored
display. With paid search nearing user saturation
in Europe, many e-commerce companies are
seeing higher click prices and are looking for
additional channels to diversify into.
So what’s next? Because of these vastly improved
targetingcapabilities,displayadvertisinginEurope
is set to grow aggressively beyond remarketing.
Marketers will find smart, hybrid solutions
for building their brand and driving performance
for sales, while at the same time making use of
new conversion attribution methods and dynamic
pricing. Never has data and analytics-driven
marketing around the consumer been more
important than in this new age of advertising
technology.

66 Glossary
GLOSSARY
Glossary Terms Definition
1st
Party Data Any data that is created or owned by the marketer.
3rd
Party Data Information acquired by other data aggregators. Sources are diverse and
varied - it could come as a direct source from Publishers, retailers and
e-commerce sites or even offline data providers who have found ways to
utilize their data to target people online.
Ad Exchange Online auction marketplace that facilitates the buying and selling of inventory
across multiple Ad Networks and DSPs.
Ad Network An online advertising service provider, often with proprietary technology, that
helps marketers run display advertising campaigns across various sources of
online inventory, including direct Publishers and Ad Exchanges. Ad Networks
typically include other services as part of their media campaigns, such as
ad serving, media verification, privacy notification, reporting, data and/or
audience targeting.
Ad Server A technology platform used by the advertiser and publisher to deliver and
track ads across inventory.
Affiliates A person or company that displays another party's ad on its site (usually for
free) and is paid based on the activity or CPA driven by the displayed ad.
Attribution Determining exposure and crediting the appropriate party or media channel
with the effectiveness of the exposure which ultimately led to a user
conversion.
Audience Targeting Developing display campaigns that target specific segments of the
population.
Behavioral Data Information collected based on an individual’s Web-browsing behavior and
preferences.

67www.netmining.com
Brand Safety The prevention of ads from appearing on web pages with inappropriate
content and placement.
Contextual Data Information related to a website's page contents.
DAA (Digital
Advertising Alliance)
The Digital Advertising Alliance (DAA) is a self-regulatory body that develops
industry best practices and effective solutions for consumer choice in online
behavioral advertising (OBA).
Data Aggregator Technology platform that acquires data (usually from 1st
and 3rd
party) and
segments this into a taxonomy that allows buyers to identify the data they
most wish to target.
Data Exchange Online auction marketplace where advertisers acquire 3rd
party data that
helps them better reach their target audiences with display.
Data Supplier Follows consumers and tracks their online behavior in order to segment the
consumers into groups based on the collected information. Advertisers buy
the ability to target specific groups from Data Suppliers.
Demographic Data Information regarding the size and characteristics of a particular population
of people of interest to the advertiser, such as age, sex, income, education,
size of household, ownership of home, etc. This does not include
psychographics based on the subjective attitudes or opinions of consumers.
DMP (Data
Management Platform)
Technology platform that assists in the buying or negotiating of data sources
and data costs. Allows marketers to take control of their data in a unified
environment.
DSP (Demand Side
Platform)
An advertising technology platform which allows marketers to manage their
online media campaigns by facilitating the buying of auction-based display
media and audience data across multiple inventory and data suppliers in a
centralized management platform.

68 Glossary
Dynamic Creative Targeted messaging with multiple iterations that are adjusted and delivered
to different audiences based on data about the particular prospect to
determine which ad would have the greatest effect .
IAB (Interactive
Advertising Bureau)
Founded in 1996, the Interactive Advertising Bureau (IAB) is the leading
online global advertising industry trade association that evaluates and
recommends standards and practices, fields research to document the
effectiveness of the online medium and educates the advertising industry
about the use of online and digital advertising.
KPI (Key Performance
Indicator)
Performance metric used to evaluate the success of campaign activity.
Lookalike The tactic of identifying a new audience set who have similar attributes to an
existing segment that is being targeted by a marketer.
Media Verification
(aka ad verification)
The verification that ads are delivered in compliance with the advertiser's
insertion order terms, conditions and buying guidelines.
NAI (Network
Advertising Initiative)
Formed in 1999 in response to consumer concerns over the use of profile-
based targeted online advertising, the Network Advertising Initiative (NAI)
is a cooperative of online marketing and analytics companies committed to
building consumer awareness and establishing responsible business and data
management practices and standards for sophisticated online advertising
technologies.
Online Data Provider Any provider who sells data online.
Piggyback (see Tag) In display, this refers to appending a tag to an existing tag, which triggers the
sharing of campaign performance data.
Publisher The owner of the website where ads are displayed.
Remarketing (aka
Retargeting)
The act of finding a marketer’s past website visitors across the Web and
delivering them display advertising with the goal of driving them back to the
site to complete an action.

The Evolution of Display Advertising: From Rise and Fall to New Technologies

The Evolution of Display Advertising: From Rise and Fall to New Technologies

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