Behavioral Targeting Online: A Case Study

Outline

1. Introductions: Behavioral Targeting and it’s role in online media

2. How to measure and value Behavioral Targeting.

3. WSJ/American Airlines Case Study Campaign Results

…composition

…effectiveness (awareness)

…cost efficiency

4. How Behavioral Targeting will evolve

What is Behavioral Targeting

Behaviors provide the clearest window into people’s desires and interests

People qualify themselves for marketers by their own actions

Example: repeatedly reading about mortgages or clicking on a

loan calculator

Typically, online advertisers broadcast to a place or wait for

prospects through search…

…Instead, Behavioral Targeting allows advertisers to deliver their message to audiences who have

demonstrated interest

The result is that targeting becomes more efficient

Bottom Line: A lower cost per target for advertisers that is

triggered by audience behavior

Revenue Science – Leaders in Behavioral Targeting

WEB PUBLISHERS SAMPLE AUDIENCE SEGMENTS ADVERTISERS

• Car Buffs

• Health Nuts

• Travel Seekers

• Mutual Fund Aficionados

• The Leisure-Minded

• Engaged Investors

• Frequent Travelers

• Affluent Users

• Gamers

• Hardcore Sports Fans

• SUV Shopper

• End of Year Rebates

• Hooked on Convertibles

How does Behavioral Targeting work?

What people say

Registration

Search

What people do

Website

Categories and Pages

Words

How often they do it

Frequency

Recency

Visitors Navigate Visitors Are Assigned To

Publisher created segments Segments

On Future Visits, Targeted Ads Are Served

To Segment Members Regardless of Where They Go On The Site (Instead Of House or

ROS)

How to Measure Behavioral Targeting:Audience Composition

True metric of reaching the right audience

Measures core value proposition of targeting

Audience Composition: # Qualified / # Total

Widely used in print media

How does a leading airline make campaign allocation decisions for advertising in the print world?

5+ Domestic air trips (yr)

WSJ Business Week

Aud (000) 1730 552

Composition 20 16.3

Coverage 32 10.3

Index 178 146

Case Study

Collaboration between WSJ.com, Revenue Science, Global Airline Carrier and its Advertising Agency

Conducted audience composition and advertising effectiveness study using Dynamic Logic tools

Used Test/Control methodology

1. Brand Metrics: Control Unexposed, Test IBT Exposed

2. Brand Metrics: Control Unexposed, Test RON Exposed

3. Audience Composition: Control RON, Test IBT

Behavioral Targeting Delivers Significant Lift in Effectiveness for Branding Campaigns

Higher Composition across the board (115% to 145% lift)

Better targeting can deliver higher compositions than naïve targeting

BT gives you brand lift over RON (on 5/6 metrics)

In target brand lift is higher on 6/6 metrics When you get the right

people, they remember the message more.

The BT campaigns are more cost effective than RON even if you don’t count the brand lift!

26%

56%

0%

20%

40%

60%

80%

RON and Comp. IBT Audience Comp.

Result = 115% lift inaudience

comp.

Business Travelers 1+ Business

Trips Per Year

Behavioral Targeting Delivers Significant Lift in Effectiveness for Branding Campaigns

Higher Composition across the board (115% to 145% lift)

Better targeting can deliver higher compositions than naïve targeting

BT gives you brand lift over RON (on 5/6 metrics)

In target brand lift is higher on 6/6 metrics When you get the right

people, they remember the message more.

The BT campaigns are more cost effective than RON even if you don’t count the brand lift!

13%

31%

0%

10%

20%

30%

40%

RON and Comp. IBT Audience Comp.

Result = 145% lift inaudience

comp.

Business Travelers 5+ Business

Trips Per Year

*Statistically significant difference between Control and Exposed group at a 90% confidence level Lift = (Exposed-Control)/ControlPlease Note: Lift percentages are calculated from the actual Control and Exposed group scores, while the above presented scores are rounded, if attempting lift calculation using the scores above there will be differences from the actual lift due to rounding

American Airlines Campaign Results – Right Message Target Audience

• Message Association for the targeted business travelers experienced statistically significant lifts for all three messages.

• The following table compares the results for the Qualified Business Travelers• Total Respondents: RON = 820; IBT = 373• Qualified Respondents: RON = 216; IBT = 210

RON IBT Difference Lift

*Message Association – upgrade first class

1% 3% +2 314%

*Message Association – frequent flyer program

3% 10% +7 218%

*Message Association – 3,900 daily flights

6% 14% +8 100%

Sample Size 820 373

Economic Case

CPT (cost per thousand targets): CPM/Composition

ROS CPT: CPM: $35/0.263 = $133

Behavioral Targeting CPT: $60/0.563 = $106

RON is 25% more expensive than Behavioral Targeting

Where is Behavioral Targeting Going

A major piece of the online mix

Standards for finding and comparing audiences

Network Buys and better privacy protection

Advertiser contribution to behavior

Thank You

Omart@revenuescience.com