25th November 2010

Audience Targeting Workshop

The Difference is Data

A New World

Offline challenges• Fragmenting audience• Less time on traditional media• Difficult to personalise and target• Difficult to establish ROI

Online opportunities• Almost everyone online• Spending more time online• Can target and personalise• Easy to measure ROI

Unravelling the media landscape

Key factors

• Understand your market

• It’s about the individual

• Behavioural targeting is the growth methodology

• Data is the key

• Technology makes it possible

It’s complicated...

• Marketplace confusion resulting from an increasingly crowded vendor landscape.

• Lack of transparency in methodology and lack of corresponding methods of verification.

• Disparate pricing models. Providers sell by CPM, CPC, CPA and other options.

• Lack of universal taxonomy.

• Limited data scale with many , particularly for niche segments.

• Consumer privacy and related regulation.

A complex landscape

A complex language

ASP - Application Service ProviderAPI – Application Programme

InterfaceCPA - Cost Per AcquisitionCPC - Cost Per ClickCPS - Cost Per SaleCR - Conversion RateCTR - Click-Through RateDMP – Data Management PlatformDSP – Demand Side PlatformPFI - Pay For InclusionPFP - Pay For Performance

PPC - Pay Per ClickPPL - Pay Per LeadPPS - Pay Per SalePV - Page ViewRON - Run Of NetworkROS - Run Of SiteSEO - Search Engine OptimizationSEM - Search Engine MarketingSEP - Search Engine PositioningSSP – Supply Side PlatformUV - Unique Visitor

• Contextual Targeting based on site or page-level content.

• Demographic Buy users by age, gender, income, or education.

• Psychographic Targeting bases segmentation on end user propensity, attitude, or mindset.

• Social connectionTargeting consumers who may have similar tastes to current customers.

• IntentThis approach targets users who demonstrate behaviours that identify them as being actively interested in purchasing a particular product or activity.

• RetargetingTargeting users who’ve previously visited your site,

• Behavioural targetingCategorizes users according to surfing behaviour, ad interaction and/or search activity.

• Search retargeting Based specifically on previous search activity

• Semantic targetingTargeting users based on the content of the page they are viewing

Different types of targeting

New Technology = New Thinking

• No guesswork anymore.

• Advertising has moved from a creative industry to a science – precise and measurable.

• Stop thinking about customers in groups – what demographic are they in, what sites customers might go to.

• Start thinking about individual web users - what are they buying, what lifestyle interests do they have, what are their social needs.

What you can do online

• Establish exactly who your natural audience is.

• Establish who is in the market for your products – now.

• Build segments of potential customers for targeted advertising.

• Find people interested in your brand or product and deliver specific messages.

• Shift ad delivery towards people in-market for your products – and away from those who aren’t.

• Re-message people who visit your site, but don’t buy.

• Exclude messages from being delivered to people who have already purchased.

How you do it

• Pixel site partners and cookie visitors.

• Anonymous identifier means we see that cookie – but don’t know who it belongs to.

• When we see that cookie on, say, a car site, that cookie has that interest (auto) attached.

• If cookie is seen on price comparison site looking at a Samsung HD TV, that purchase intent (HD TV) is also attached.

• As cookie continues around web, more interest, demographic, search and location data is attached.

Example behavioural cookie profile

654-lkj-753• Interest:

• Auto-buy used car• AFL• Photography• Xbox 360• Foodie

• Intent:• HDTV• Audi• Wine

• Location: • Melbourne

• Demographic:• Male• 25-35

Can target ads at this anonymous user with

specific, relevant messages that

correspond with their interests, location, demographic and purchase intent

Segment interest breakdown for AU

23.7%

23.2%11.1%

9.9%

5.6%

5.5%3.3% 3.2% 1.5%

0.9% 0.8% 0.6% 0.5% 0.9%

Arts&Entertainment

Local Info

News&Media

Social Media

Hobbies&Interests

Games

Sports&Fitness

Law,Government&Politics

Society

Technology&Computing

Reference

Automotive

Travel

Others

You need the latest technology

• Real-time data collection and integration with other sources VIM network data, 3rd party data,

client data

• Real-time segmentation capability Interest, intent, demographic,

location

• Large inventory source massive network with 90% reach

• Real-time delivery optimisation Latest, proprietary algorithms,

real-time bidding

• Self learning systems See what works and what doesn’t – adapt in real-time

You need to use best practice

• Anonymity

• Notice

• Choice

• Best privacy practices

• Member of IASH and on a global level signed up to IAB’s Good Practice Principals for OBA

• Check your vendor!

Other behavioural tools

• Dynamic retargeting

• Audience extension

• Continuous improvement

• Campaign reporting

• Audience insights

Consider the Purchase Funnel

•Awareness

•Consideration

•Intent to Purchas

e

•Purchase

• DISPLAY

• SEA

RCH

• RETARGETIN

G

• Branding

• Acquisition

• Up-sell & Loyalt

y

• VIM

Your turn to do some work...

Two markets• Travel (Qantas)• Finance – insurance (NRMA)

1. Imagine you want to conduct an online campaign.

2. How would you use your own visitor data and other available data to target people through the different phases of the purchase funnel?

Awareness / Consideration / Intent to Purchase / Purchase

How we would do it

• Place pixels on site month ahead of campaign• Establish visitor interest profile• Integrate any additional client data available;

Coremetrics, Omniture etc.• Branding. Target specific pre-defined segments. High frequency cap.

Extend audience according to new site visitors. Asses success using pre/post brand awareness/values survey.

• Response. Place conversion pixel on site. Deliver widely across network, weighted to key segments. Low frequency cap, use conversion data to optimise delivery to converting behaviour patterns – time of day, types of site, interests, no. of visits, search terms used etc.

• Assess campaign results throughout and tweak delivery to maximise site visits or conversions.

Even more data...

What to do with it:

• Post campaign analysis Use to improve marketing online and offline

• Site Visitor data Use to enhance content and encourage visitor loyalty

Things to consider

• Choose your targeting method based on your desired outcome. • Are you interested in reach? Visits to your site? Cost per new

customer? • Choose your media vehicle based on your specific needs.

Portal or publisher direct buys. Ad networks. DSPs. Trading desks.

• Take steps to avoid duplicative buying - Consolidate your targeting via a single source.

• Track and assess segments individually.

Six golden rules

Test audience targeting• It’s accurate and affordable. Think strategically about your goals

Make your targeting company your partner• You should be in it for the long haul. Consistency and trust means more success

Let the data tell you who to target• Take the guesswork out of segment selection and create an opportunity for you to identify

non-intuitive, but potentially valuable new audiences

Use retargeting and lookalike modelling• The latest technology can easily retarget site visitors and extend your natural audience,

Use different creatives • Specific messages for different audience can mean a big lift in response. Explore dynamic

creative

Familiarize yourself with targeting methodology and privacy practices• Companies work in different ways. Be confident that any under consideration meet all the

necessary data and privacy regulations.

The Future

Only things we can be sure of:

• Better targeting• More efficient ways to talk to customers• It won’t get any less complicated• Privacy issues won’t go away• Behavioural Targeting use will grow

Get on board now – audience understanding is the key to future competitor advantage...