Harnessing Big Data to Better Serve Your Audience - Core Audience / iCrossing

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Owning Your Audience Harnessing Big Data to Better Serve Your Audience Adam Lavelle - CEO, Core Audience December 5, 2012

Brought to you by:

Questions we’re answering

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What exactly is big data?

How do you define and manage your audiences?

What opportunities exist for marketers?

How do you leverage your audience data for better marketing?

WHAT IS BIG DATA?

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Bit (b) 1 or 0

Byte (B) 8 bits, 10010101

Kilobyte (KB) 1,000 bytes

Megabyte (MB) 1,000,000 bytes

We’ll start with data…

Gigabyte (GB) 1,000,000,000 bytes

Bit Byte

Kilobyte Megabyte

Terabyte (TB) 1,000,000,000,000 bytes

Bit Byte

Kilobyte Megabyte Gigabyte

Petabyte (PB) 1,000,000,000,000,000 bytes

Bit Byte

Kilobyte Megabyte Gigabyte Terabyte

Exabyte (EB) 1,000,000,000,000,000,000 bytes

Bit Byte

Kilobyte Megabyte Gigabyte Terabyte Petabyte

Zettabyte (ZB) 1,000,000,000,000,000,000,000 bytes

Bit Byte

Kilobyte Megabyte Gigabyte Terabyte Petabyte Exabyte

Yottabyte (YB) 1,000,000,000,000,000,000,000,000 bytes

Bit Byte

Kilobyte Megabyte Gigabyte Terabyte Petabyte Exabyte

Zettabyte

Kilo Mega Giga Tera PB EB ZB YB

Greek for ‘thousand’ Greek for ‘large’ Greek for ‘giant’ Greek for ‘monster’ Google - 1PB/hour 10b copies of Economist World’s info in 2012: 1.2ZB ?

A quick cheat sheet…

Big data has three primary challenges…

Source: Gartner

Volume How much of it is being created? Where is it all coming from?

How fast is being created? How fast can it be processed? Velocity How many different kinds of it are there? How do I piece it all together? Variety

Big data is everywhere…

We care about audience data

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How do you define and manage your audiences?

We have entered the “Age of the Customer”

Source: Forrester Research

So it’s the audience data we start caring about…

Defined by blending data sets in real time

High Scale

You are here

1st Party Data 2nd Party Data 3rd Party Data

Low

Low Differentiation

High

• Great reach

• Less accuracy

• Available to everyone

• Takes work to negotiate

• Extends reach

• No loss of 1st party data

• Currently unstructured

• Limited populations

• Basis for look-a-likes

• Highest quality source

No shortage: data sources surround us…

1st Party Data 2nd Party Data 3rd Party Data

• Website analytics data

• Display campaign data

• Inbound search data

• Onsite search data

• Email data

• User Interest data

• Offline CRM data

Brands and publishers

executing “matches” of

their audience

segments on a peer-to-

peer private basis, e.g.:

Example: defining audiences by interest

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1st Party Example: Hearst Magazines

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1st Party Attributes

3rd Party Example – Brand Marketer

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{ 3rd Party Attributes

Central to gathering audience data is the DMP

The DMP may be the hub of digital marketing

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What opportunities exist?

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The potential of audience data management

Attribution modeling

Social data

3rd party data

Facebook

Twitter

Youtube

Intent data

Device data

Look-a-likes

Social campaigns

SEO campaigns

Spot cable TV buying

Direct marketing

Call center systems

Source: Forrester Research, Inc.

Moving beyond channel optimization to audience-based marketing, in real-time

1st Party: Sites/Data

Partner Sites

3rd Party Data

Audience Modeling

Extend

Listen and Learn

Data Rights Management & Usage Tracking

Target and Acquire

Protect and Nurture

Grow audiences through targeted display

Secure your data, tailor content

Segment audiences and monitor performance

Clients Cookie

Pool

Interest

Lifestyle

Life- stage

Behavior

Firm o- graphics

Purchase

Demo

In-Market

Find look-a-likes, extending your audience

Audience-based marketing

Applications for audience data

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Publishers

Key components: • Mainly 1st party data • Publisher tech (ad server, SSP) • KPI: Innovating ad offerings

{ } data

data

data

data

data

data

Audience-based media and content

Increasing topline revenue, giving brands

access to audiences

Advertisers

{ } data

data

data

data

data

data

Audience based

(and better performing) media spend

Key components: • 1st and 3rd party data • Integrating w/ ad tech (DSPs, etc) • KPIs: improved CPx

Better results for brand’s media spend - harnessing

data to better target

Enterprises

{ } data

data

data

data

data

data

Key components: • 1st , 2nd, 3rd, CRM data • Enterprise tech (platforms) • KPIs: Lifetime customer value

web

email

ads

search

social

mobile

Delivering ‘core’ software infrastructure

to the CMO

Audience Segment

#1

Publishers can see their audience anew…

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Leveraging audience data for better marketing

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Actioning against audience data in real time

How ‘audience’ works – better display advertising

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Listen - Collect and aggregate 1st, 2nd,

and 3rd party data from both online and

offline sources.

Learn – Create and improve

audience segments from

addressable collected information.

Acquire – Targeted customers are

served enhanced impressions powered

by your audience offsite. Additional

revenue opportunities are added.

+ Purchase Intent -YOUR PRODUCTS & SERVICES -- Image Conscious + Demographics -- Female -- Up and Comer + Location + Sites Frequented

Target – Utilize media buying

platforms to fulfill reach goals

through retargeting and look alike

audience extension on public

display exchanges.

Feedback Loop

Preferred ad based on current profile

How ‘audience’ works – more relevant onsite content

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Listen - Collect and aggregate 1st, 2nd,

and 3rd party data from both online and

offline sources.

Learn – Create and improve

audience segments from

addressable collected information.

Target – Publish your segments to

your CMS or content optimization

platform.

Preferred content based on current profile

Associate your segments with

existing content paths, personas,

and workflows in the content

platform.

+ Purchase Intent -YOUR PRODUCTS & SERVICES -- Image Conscious + Demographics -- Female -- Up and Comer + Location + Sites Frequented

Engage – Targeted customers are

served dynamic content tailored to their

individual interests, needs, and requests.

Feedback Loop

How ‘audience’ works – improved email marketing

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Listen - Collect and aggregate 1st, 2nd,

and 3rd party data from both online and

offline sources.

Learn – Create and improve

audience segments from

addressable collected information.

Audience members are sent

campaign emails that are

personalized to increase response

rates and revenue.

Target – Publish your segments to

your email delivery platform.

Create and market campaigns in

your email delivery platform to serve

targeted advertisements to segment

members.

+ Purchase Intent -YOUR PRODUCTS & SERVICES -- Image Conscious + Demographics -- Female -- Up and Comer + Location + Sites Frequented

Personalized email based on current profile

Feedback Loop

A matching file is generated from your

CRM and delivered to matching

partners.

Offline customers visit your

properties online and matching

partner sites – the matches are

found and recorded.

Cookies are set, informing your

online platform with valuable non-

PII data attributes from your CRM.

+ Purchase Intent -- YOUR PRODUCTS and SERVICES -- Price Conscious + Demographics -- Female -- Up and Comer + Location + Sites Frequented

Your online customer ecosystem is

now enhanced and made larger by

your existing investment in offline

data.

Feedback Loop

How ‘audience’ works – leveraging offline data

Case study – more efficient display buying

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• Campaign to drive online conversions

• Competing against GDN, iMedia, DataXu, and ValueClick

• Ad spend driven by audience data

• Results: delivered more conversions at better CTR, and nearly as many clicks with significantly less impressions

• A third of the impressions • More conversions than all others

combined • A 2.3x CTR because of our targeting • 4x better CPA

ONE MORE THING…

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It isn’t easy…

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SUMMARY

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What we covered…

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• The big data we care about is audience data

• Audience data can come from lots of places

• Most brands are not uncovering value from their own data

• Technology exists now to make this actionable

• The technology needs to work in real-time

• There are applications for both brands and publishers

• Audience data isn’t just for buying RTB

• Brands can begin capturing audience insights now

If you leave with anything…

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1. Do a rethink - start with ‘audiences’ before channels

2. Consider a DMP as the ‘hub’ of your digital infrastructure

3. It’s still early, but its moving fast, so…

Pick a partner and start to test and learn now!

THANK YOU

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Adam Lavelle adam@coreaudience.com coreaudience.com facebook.com/coreaudience @Core_Audience