emarketer webinar: cross-device targeting—what to watch for in 2016

© 2016 eMarketer Inc.

Cross-Device Targeting:

What to Watch for in 2016

Lauren T. Fisher

Senior Analyst

January 14, 2016

Made possible by


Agenda

The current state of cross-device targeting

The two main methodologies behind cross-device

targeting

Seven things to watch for in 2016


The Current State of

Cross-Device Targeting


When it comes to delivering on cross-device

promises, we’d like to think we’re here …


Or even here …


But in reality,

we’re here:


It’s a problem

for buyers, but

it’s also a

problem for

sellers


An inability to identify individuals across all

devices in a universal manner is the key obstacle

“There’s a lot of conversation around

whether or not we are going to get to

a single identifier that’s going to

be the holy grail of connecting a

person across all devices and

channels. I don’t think we’re

necessarily any closer.”

—Pete LaFond, VP of Marketing, TruSignal


How It’s Done Today:

The Two Audience

Identification Methods


Most companies today use one or both of the

following identification methods:

Deterministic identification

Probabilistic identification


Deterministic Identification

How it works: Relies on known-user information to recognize,

with near-certain confidence, an individual on each of his or her

internet-connected devices.

Examples of data used: Anonymized login data, CRM-level data,

email address or customer ID.

Companies taking a deterministic approach: Facebook,

Google, AOL, Amazon.com, The Weather Company, eBay, others.


Probabilistic Identification

How it works: Uses a mix of publicly available

ad-serving data to assess the statistical probability that a

specific device belongs to a particular individual.

Examples of data used: IP address, browser version, operating

system data, device type, browsing behavior, content consumption patterns, location-based data and time of day.


The methods might be distinct, but increasingly,

both buyers and sellers use a blend of both


Seven Things to Watch for

in 2016


1. Preference for deterministic data will drive

buyers deeper into ‘walled gardens’


2. It will also

raise the

importance of

collecting and

utilizing

first-party

data


Email will be

the primary

match key


But outside of

the walled

gardens like

Facebook,

email and

other

first-party

data use

won’t be

seamless—at

least not yet


As buyers bring first-party data to walled

gardens, they’ll be frustrated by lack of output

“If you’re a marketer of a big brand,

you’re in a bit of a quandary at the

moment because you have players

like Facebook and Google, and they

have a lot of data you want to

leverage. But they are pretty hell-bent

on making sure that if you are going

to leverage their data with yours, then

you have to give your data to

them, and not the other way

around.” —James Green, CEO, Magnetic


3. Decoupling of cross-device media and

technology will gain steam


4. Questions about cross-device measurement

and match rates will cause added concerns

“If you look at both Nielsen OCR and

comScore VCE, both are based on

panels. So even as precise as my

data is, how do I know that it’s

going to score well against

comScore’s methodology?

I don’t. That’s a problem both for

us and for advertisers.”

—Sasha Berman, VP of Product, AOL Platforms


5. TV will

become a big

factor in the

cross-device

equation


In many

cases,

cross-device

targeting will

be about

finding TV

audiences

again in

digital


Ultimately,

addressable

TV will be the

preferred way

to bring things

together. But

addressability

remains the

exception, not

the rule


In the interim, expect partnerships to form


6. First-party data consortiums will pop up

“There are probably any number of

consortia of publishers out there that

are looking at building large,

deterministic match sets.

… If you put the right group of players

together, it will get us the quality and

ability to solve both the targeting

and the attribution problems.”

—Dave Smith, VP of Yield and Monetization,

Pandora


7. As cross-device means using more data

across more devices, privacy concerns will rise

96%Portion of US internet users either “very” or “somewhat”

concerned about data privacy and how companies use

their data

Source: Gigya, “The 2015 State of Consumer Privacy and Personalization,” July 2015


Greater

transparency and

consumer control

will be paramount

to navigating

cross-device in a

privacy-conscious

manner


But consumers aren’t the only ones concerned

about how their data is being used

“Given the value of their

first-party data and what it takes

to collect it, [clients] are very, very

concerned about how it’s

being used and that it is not used

for anything besides their very, very

specific purposes.”

—Alan Beiagi, Senior Director, Products at DataXu


Key Takeaways:

Know how deterministic and probabilistic methods fit into

your strategy

Recognize that the thirst for deterministic data will lead to

greater reliance on walled gardens

It will also fuel greater focus on collecting and utilizing

first-party data

Anticipate consumer privacy concerns and be mindful of

your own data

Start factoring TV into the cross-device equation

© 2016 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Impact of getting identity right

Tying Mobile to

Desktop

Average Deduplication

+25%

Better Attribution

w/2-3 device exposure

Impressions to Convert

-50%

Better Advertising

w/restated user

reporting

Reporting $ Value

+50%

Better Reporting

Mobile Profile Extension A/B Testing Consistency

© 2016 Systems Incorporated. All Rights Reserved. Adobe Confidential.


Trend: Market to people, not devices

Breaking Down Device Silos

X XX


Trend: Market to people, not devices

Connecting The Dots


DeterministicPRO: High level of confidence

CON: Low Scale

ProbabilisticPRO: High scale

CON: Lower level of confidence

Looking for more clarity about

your customer audience?

To get the most complete view

of your customers bring both

Deterministic and

Probabilistic marketing

strategies together.


ADOBE AUDIENCE MANAGER

Leverage cross device signals to identify

individuals and better understand your

customers

Power personalization across all digital

channel

Find powerful audience insights through 2nd

and 3rd party partners


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Lauren T. Fisher

Cross-Device Targeting:

What to Watch for in 2016

Cross-Device Targeting: First-Party Data, TV and Privacy are

Big Factors for 2016

Cross-Platform Attribution 2015: Device Identification, Big Data

Pose Continued Challenges

Cross-Device Search Marketing: As Search Goes Multidevice,

Ad Targeting and Measurement Struggle to Keep Pace

Programmatic TV Advertising: Bringing Data-Driven Audience

Buying to the ‘First Screen’