Welcome to the Evolution: Audience Based Marketing - Now and Moving Forward

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    AudienceScience Market Intelligence 2011

    Welcome to the Evolution

    Audience Based Marketing - Now and Moving Forward

  • 8/3/2019 Welcome to the Evolution: Audience Based Marketing - Now and Moving Forward

    2/27

    AAsian

    Imports

    AsAuto Shoppers

    Ae

    Auto Enthusiasts

    CiCrossoverIntenders

    CsCoupe Shoppers

    EcEconomy Intenders

    DbDomestic Buyers

    Lb

    Luxury Buyers

    Ai

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    PE

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    Ani Cf

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    EiEntertainment

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    MlMusic Lovers

    VgVideo Gamers

    TvTv Enthusiasts

    XBoxXBox

    Enthusiasts

    NdsNds

    Enthusiasts

    RsRomanticShoppers

    AfAction Fans

    Ca

    DvdDvd Buyers

    MgMovie-Goers

    ViVideo GameInfluencers

    Ps3Ps3

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    Sp

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    Enthusiasts

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    EducationSeekers

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    Mortgage Shoppers

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    PiPoliticalInfluencers

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    BcBudget Conscious

    Bea

    AcAffluent Consumer

    HsHoliday Shoppers

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    OsOnline Shoppers

    RRetirees

    PlPet Lovers

    HwHealth & Wellness

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    SbSports Buffs

    WWomen

    DfDiet & FitnessEnthusiasts

    FsFall Clothing

    Shoppers

    AaAfrican

    American

    ArtArt & CultureEnthusiasts

    EaEco-AwareIndividuals

    FanFantasy Sports

    BtsBack-To-School

    Clothing & Supplies

    HdHoliday Dinner

    Planners

    SpSpring Seasonal

    Shoppers

    VVa

    BtgBack To School

    Computer & GadgetShoppers

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    CvCruise

    Vacationers

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    Enthuisiasts

    CoComputerShoppers

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    Table of Contents

    Executive Summary 1

    The March Towards Sophisticated Audience Targeting 3

    1. Aggregating multiple online and offline data sources 5

    2. Go beyond basic page view activity 5

    3. Leveraging data management platforms to control and manage ongoing campaign data 6

    4. Defining and building precise target audiences 6

    5. Connecting audiences with available inventory across multiple buying and selling points 6

    6. Employing campaign insights to optimize and refine targeted campaigns 7

    7. Providing control, transparency and reproducibility for future campaigns 7

    Defining your Audience Strategy through the Behaviorally Driven Marketplace 9

    Defining Lookalike Behaviors to Deliver Audiences 11

    Looking Beyond the Lookalikes 15

    The Audience Targeting Shift: Finding the New Path 17

    Changes for Advertisers 20

    Arrival of the Automated Infrastructure 20

    Conclusion 21

    Glossary of Industry Terms 23

    About AudienceScience

    Market Intelligence Report Welcome to the Evolution

  • 8/3/2019 Welcome to the Evolution: Audience Based Marketing - Now and Moving Forward

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    CiCrossoverIntenders

    CsCoupe Shoppers

    EcEconomy Intenders

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    Lb

    Luxury Buyers

    Ai

    Auto Influencers

    PE

    Se

    TrTruck Buyers

    Ani Cf

    HfHorror Fans

    Dr

    EiEntertainment

    Influencers

    MlMusic Lovers

    VgVideo Gamers

    TvTv Enthusiasts

    XBoxXBox

    Enthusiasts

    NdsNds

    Enthusiasts

    RsRomanticShoppers

    AfAction Fans

    Ca

    DvdDvd Buyers

    MgMovie-Goers

    ViVideo GameInfluencers

    Ps3Ps3

    Enthusiasts

    FamFamily

    Shoppers

    WiiWii

    Enthusiasts

    SfSci-Fi Movie

    Shoppers

    BtsBack-To-SchoolClothing &

    Sp

    WvWinter Sports

    SrSummer

    WsWinter Clothing

    Shoppers

    Auto LoansFootball

    Enthusiasts

    Business DecisionBi

    Career Seekers

    BdBusiness

    CasCredit CardApplicants

    Ca

    EducationSeekers

    Ha

    InsuranceShoppers

    EsHomeAccountants

    IReal Estate &

    Mortgage Shoppers

    Re

    RetirementPlanners

    Se

    Small BusinessOwners

    RpSavvy Economic

    So StStock Trader

    GeGolf

    Enthusiasts

    H

    Hispanic

    LmLife Milestones

    MbMom & Baby

    MMen

    NyNew Years

    Resolution Makers

    OeOutdoorEnthusiast

    PmPolitically Minded

    Individuals

    PiPoliticalInfluencers

    PpProud Parents

    SSingles

    SocSocial

    Networkers

    MpUS MilitaryPersonnel

    BcBudget Conscious

    Bea

    AcAffluent Consumer

    HsHoliday Shoppers

    Hh

    HiHome Improvement

    Enthusiasts

    OsOnline Shoppers

    RRetirees

    PlPet Lovers

    HwHealth & Wellness

    Advocates

    SbSports Buffs

    WWomen

    DfDiet & FitnessEnthusiasts

    FsFall Clothing

    Shoppers

    AaAfrican

    American

    ArtArt & CultureEnthusiasts

    EaEco-AwareIndividuals

    FanFantasy Sports

    BtsBack-To-School

    Clothing & Supplies

    HdHoliday Dinner

    Planners

    SpSpring Seasonal

    Shoppers

    VVa

    BtgBack To School

    Computer & GadgetShoppers

    LvLas VegasTravelers

    CvCruise

    Vacationers

    HtHawaii

    Travellers

    BtBusiness

    Travelers

    CtCaribbean

    Travelers

    CeCell Phone

    Enthuisiasts

    CoComputerShoppers

    MtMexico

    Travelers

    Gl

    Gadget Lovers

    HgHoliday Gadget

    Shoppers

    TiTechnologyInfluencers

    Executive Summary

    If theres one thing we can guarantee in todays dynamic online advertising ecosystem is that it will

    continue to change. During the past few years, new technologies and digital ad serving, analytics

    and media buying and selling tools have emerged and have fundamentally changed the industry.

    Inherent within all this change lies real opportunity for advertisers and publishers looking to deliver

    more effective, efficient campaigns. Yet, outside of these rapid advancements the overall focus for

    advertisers and publishers is based on the same fundamental question: How can I get the right

    message to the right consumer at the right time and in the right place in order to achieve the

    objectives of my campaign, whether its improving the perception of my brand or getting them to take

    an immediate action?

    Of course reaching the right audience is paramount for campaign success and finding and reaching

    those consumers willing to pay attention and convert is the ultimate goal for any campaign.

    The core of any successful online advertising campaign is based on the need to connect with those

    consumers who will be most interested and receptive to the advertisers message. While traditionally

    advertisers and publishers have employed practices focused around broad targeting techniques or

    have been using modeling to pre-define audience segments to accomplish this task, the reality is

    that one size fits all marketing doesnt work well in this context. Because the consumers who see

    these ads represent a very diverse range of needs and desires, to be successful, advertisers and

    publishers need to have access to an ongoing understanding of who their best customers are, what

    they want and need, and what they will respond to.

    The audience targeting path to the future requires a data-led way of thinking about the needs of

    advertisers and subsequently their customers. Its no longer about going after the low hanging fruit

    or broad mass markets. Its now based on sophisticated learning to create meaningful audience

    segments that allow advertisers and publishers to advance their relationships with consumers in a

    more personal, relevant and timely manner.

    This report will explore the emergence of data-driven audience targeting and will reveal some of the

    ways that publishers are embracing newer actual data tools to create dynamic audience segments

    that are more flexible and truly able to meet the needs of advertisers.

    Market Intelligence Report Welcome to the Evolution

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    The MarchTowards

    SophisticatedAudienceTargeting

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    CsCoupe Shoppers

    EcEconomy Intenders

    DbDomestic Buyers

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    Luxury Buyers

    Ai

    Auto Influencers

    PE

    Se

    TrTruck Buyers

    Ani Cf

    HfHorror Fans

    Dr

    EiEntertainment

    Influencers

    MlMusic Lovers

    VgVideo Gamers

    TvTv Enthusiasts

    XBoxXBox

    Enthusiasts

    NdsNds

    Enthusiasts

    RsRomanticShoppers

    AfAction Fans

    Ca

    DvdDvd Buyers

    MgMovie-Goers

    ViVideo GameInfluencers

    Ps3Ps3

    Enthusiasts

    FamFamily

    Shoppers

    WiiWii

    Enthusiasts

    SfSci-Fi Movie

    Shoppers

    BtsBack-To-SchoolClothing &

    Sp

    WvWinter Sports

    SrSummer

    WsWinter Clothing

    Shoppers

    Auto LoansFootball

    Enthusiasts

    Business DecisionBi

    Career Seekers

    BdBusiness

    CasCredit CardApplicants

    Ca

    EducationSeekers

    Ha

    InsuranceShoppers

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    IReal Estate &

    Mortgage Shoppers

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    RetirementPlanners

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    RpSavvy Economic

    So StStock Trader

    GeGolf

    Enthusiasts

    H

    Hispanic

    LmLife Milestones

    MbMom & Baby

    MMen

    NyNew Years

    Resolution Makers

    OeOutdoorEnthusiast

    PmPolitically Minded

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    PiPoliticalInfluencers

    PpProud Parents

    SSingles

    SocSocial

    Networkers

    MpUS MilitaryPersonnel

    BcBudget Conscious

    Bea

    AcAffluent Consumer

    HsHoliday Shoppers

    Hh

    HiHome Improvement

    Enthusiasts

    OsOnline Shoppers

    RRetirees

    PlPet Lovers

    HwHealth & Wellness

    Advocates

    SbSports Buffs

    WWomen

    DfDiet & FitnessEnthusiasts

    FsFall Clothing

    Shoppers

    AaAfrican

    American

    ArtArt & CultureEnthusiasts

    EaEco-AwareIndividuals

    FanFantasy Sports

    BtsBack-To-School

    Clothing & Supplies

    HdHoliday Dinner

    Planners

    SpSpring Seasonal

    Shoppers

    VVa

    BtgBack To School

    Computer & GadgetShoppers

    LvLas VegasTravelers

    CvCruise

    Vacationers

    HtHawaii

    Travellers

    BtBusiness

    Travelers

    CtCaribbean

    Travelers

    CeCell Phone

    Enthuisiasts

    CoComputerShoppers

    MtMexico

    Travelers

    Gl

    Gadget Lovers

    HgHoliday Gadget

    Shoppers

    TiTechnologyInfluencers

    The March Towards Sophisticated Audience Targeting

    While huge technological advances have come together to create unprecedented online

    audience targeting capabilities, at the heart of any effective advertising campaign (on or

    offline) lies the ability to get the right message to the right consumer at the right time so that they

    take action and for the right price.

    Today, online publishers and advertisers have access to a depth of targeting data never seen before.

    From site specific analytics and actionable metrics to an abundance of 3rd party sources, they have

    an abundance of riches to work with. However, while this explosion of data is the fuel powering the

    new online advertising ecosystem, without the intelligence to understand and apply all this data, it

    often has little value.

    The evolution of targeting is very much the evolution of data. As marketers confidence has grown inthe value of online advertising, they are now demanding greater precision and looking to replicate the

    targeting sophistication of offline in the online environment.

    Weve seen the move from a reliance on broad targeting options such as geo-targetingfocusing on

    location rather than peopleand contextualwhere site was proxy for audienceto demographics,

    and defining the classic age/gender/income segments. The advent of behavioral targeting saw

    greater use of data to identify targets, with one or two online actions defining audience segments.

    This was the forerunner to the emergence of much more sophisticated data-driven audience building.

    Market Intelligence Report Welcome to the Evolution

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    Luxury Buyers

    Ai

    Auto Influencers

    PE

    Se

    TrTruck Buyers

    Ani Cf

    HfHorror Fans

    Dr

    EiEntertainment

    Influencers

    MlMusic Lovers

    VgVideo Gamers

    TvTv Enthusiasts

    XBoxXBox

    Enthusiasts

    NdsNds

    Enthusiasts

    RsRomanticShoppers

    AfAction Fans

    Ca

    DvdDvd Buyers

    MgMovie-Goers

    ViVideo GameInfluencers

    Ps3Ps3

    Enthusiasts

    FamFamily

    Shoppers

    WiiWii

    Enthusiasts

    SfSci-Fi Movie

    Shoppers

    BtsBack-To-SchoolClothing &

    Sp

    WvWinter Sports

    SrSummer

    WsWinter Clothing

    Shoppers

    Auto LoansFootball

    Enthusiasts

    Business DecisionBi

    Career Seekers

    BdBusiness

    CasCredit CardApplicants

    Ca

    EducationSeekers

    Ha

    InsuranceShoppers

    EsHomeAccountants

    IReal Estate &

    Mortgage Shoppers

    Re

    RetirementPlanners

    Se

    Small BusinessOwners

    RpSavvy Economic

    So StStock Trader

    GeGolf

    Enthusiasts

    H

    Hispanic

    LmLife Milestones

    MbMom & Baby

    MMen

    NyNew Years

    Resolution Makers

    OeOutdoorEnthusiast

    PmPolitically Minded

    Individuals

    PiPoliticalInfluencers

    PpProud Parents

    SSingles

    SocSocial

    Networkers

    MpUS MilitaryPersonnel

    BcBudget Conscious

    Bea

    AcAffluent Consumer

    HsHoliday Shoppers

    Hh

    HiHome Improvement

    Enthusiasts

    OsOnline Shoppers

    RRetirees

    PlPet Lovers

    HwHealth & Wellness

    Advocates

    SbSports Buffs

    WWomen

    DfDiet & FitnessEnthusiasts

    FsFall Clothing

    Shoppers

    AaAfrican

    American

    ArtArt & CultureEnthusiasts

    EaEco-AwareIndividuals

    FanFantasy Sports

    BtsBack-To-School

    Clothing & Supplies

    HdHoliday Dinner

    Planners

    SpSpring Seasonal

    Shoppers

    VVa

    BtgBack To School

    Computer & GadgetShoppers

    LvLas VegasTravelers

    CvCruise

    Vacationers

    HtHawaii

    Travellers

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    Gadget Lovers

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    TiTechnologyInfluencers

    Today, audience targeting is about driving real value through an audience strategy: a combination of

    targeted campaign data, ad serving technologies and partnerships with advertising networks, media

    buying channels and third-party data providers. Ultimately, the goal is to find intelligent ways to

    combine these elements so that cost and waste are reduced and advertising messages are positioned

    in a way that they deliver the most relevant message to the right consumers. Channeling all these

    elements is complex and today requires data management technologies to deliver true audience insight

    and targeting. In particular it requires platforms to:

    1. Aggregate multiple and diverse online and off-line data sources

    2. Go beyond basic page view activity

    3. Provide a single audience targeting platform that allows advertisers to

    control and manage ongoing campaign data

    4. Define and build precise target audiences

    5. Connect audiences with available advertising inventory across multiple

    buying and selling points

    6. Employ campaign insights to optimize and refine targeted campaigns

    7. Provide control, transparency and reproducibility for future campaigns

    Market Intelligence Report Welcome to the Evolution

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    7/27

    AAsian

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    Auto Enthusiasts

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    Lb

    Luxury Buyers

    Ai

    Auto Influencers

    PE

    Se

    TrTruck Buyers

    Ani Cf

    HfHorror Fans

    Dr

    EiEntertainment

    Influencers

    MlMusic Lovers

    VgVideo Gamers

    TvTv Enthusiasts

    XBoxXBox

    Enthusiasts

    NdsNds

    Enthusiasts

    RsRomanticShoppers

    AfAction Fans

    Ca

    DvdDvd Buyers

    MgMovie-Goers

    ViVideo GameInfluencers

    Ps3Ps3

    Enthusiasts

    FamFamily

    Shoppers

    WiiWii

    Enthusiasts

    SfSci-Fi Movie

    Shoppers

    BtsBack-To-SchoolClothing &

    Sp

    WvWinter Sports

    SrSummer

    WsWinter Clothing

    Shoppers

    Auto LoansFootball

    Enthusiasts

    Business DecisionBi

    Career Seekers

    BdBusiness

    CasCredit CardApplicants

    Ca

    EducationSeekers

    Ha

    InsuranceShoppers

    EsHomeAccountants

    IReal Estate &

    Mortgage Shoppers

    Re

    RetirementPlanners

    Se

    Small BusinessOwners

    RpSavvy Economic

    So StStock Trader

    GeGolf

    Enthusiasts

    H

    Hispanic

    LmLife Milestones

    MbMom & Baby

    MMen

    NyNew Years

    Resolution Makers

    OeOutdoorEnthusiast

    PmPolitically Minded

    Individuals

    PiPoliticalInfluencers

    PpProud Parents

    SSingles

    SocSocial

    Networkers

    MpUS MilitaryPersonnel

    BcBudget Conscious

    Bea

    AcAffluent Consumer

    HsHoliday Shoppers

    Hh

    HiHome Improvement

    Enthusiasts

    OsOnline Shoppers

    RRetirees

    PlPet Lovers

    HwHealth & Wellness

    Advocates

    SbSports Buffs

    WWomen

    DfDiet & FitnessEnthusiasts

    FsFall Clothing

    Shoppers

    AaAfrican

    American

    ArtArt & CultureEnthusiasts

    EaEco-AwareIndividuals

    FanFantasy Sports

    BtsBack-To-School

    Clothing & Supplies

    HdHoliday Dinner

    Planners

    SpSpring Seasonal

    Shoppers

    VVa

    BtgBack To School

    Computer & GadgetShoppers

    LvLas VegasTravelers

    CvCruise

    Vacationers

    HtHawaii

    Travellers

    BtBusiness

    Travelers

    CtCaribbean

    Travelers

    CeCell Phone

    Enthuisiasts

    CoComputerShoppers

    MtMexico

    Travelers

    Gl

    Gadget Lovers

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    Shoppers

    TiTechnologyInfluencers

    Lets explore each of these features separately:

    1. Aggregating multiple online and offline data sources

    In the world of marketing, targeting is king. And in the world of targeting, data rules supreme!

    To be effective, targeting requires real intelligence and understanding that is often built on diverse

    and very granular data. Creating an audience based on a single point of criteria like age or gender

    is rarely sufficient to get the job done. Because real people are never that limited in their scope and

    needs, advertisers need access to data which can help them to construct multifaceted targeting

    personalities more in line with the real people that they represent. This information often exists both

    inside and outside an advertisers business.

    Traditionally, valuable internal audience data is often scattered across different areas and channels of

    a business. Attempting to bring it together in the past has been, at best, logistically very difficult. The

    result is the loss of valuable intelligence which businesses can use to better understand the needs

    and behaviors of key customers. Often, by default, the lack of this data means that advertisers end

    up settling for simple customer snapshots on which to base their targeting. This lack of insight dilutes

    and distorts campaign targeting effectiveness by limiting the criteria being used to reach the ideal

    customers and not just those that share similarities.

    Any effective audience targeting campaign management process needs to include the ability to

    connect disparate data points with one another by collecting, importing and collating huge volume of

    data from different sources into a single platform. This can include internal data, such as from past

    marketing campaigns, as well as ongoing web site traffic patterns, such as through measurementof content most often read, number of searches made, specific actions taken, sites/sections/pages

    visited, site registration information, etc.

    Today, this combination of rich online data is now being melded with off-line data that includes

    demographic, psychographic, lifestyle, product registration data, attitudinal and transactional data

    points (among others) to create a much deeper targeting model.

    2. Go beyond basic page view activity

    There is tremendous value in drawing from the words on site pages, the on-site search terms, the

    referring search activity, on-site actions/events (like calculators, e-mailing articles, dealer locaters,

    etc.), IP attributes, etc. This comprises a strategic technological course of action that is more

    important than data collected from a basic data collection pixel. It is crucial to achieve competitive

    advantage by getting all data on every possible page view, as opposed to a DMP that does simple

    data collection through a container tag, or a conversion pixel on key pages.

    Market Intelligence Report Welcome to the Evolution

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    8/27

    AAsian

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    Auto Enthusiasts

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    Lb

    Luxury Buyers

    Ai

    Auto Influencers

    PE

    Se

    TrTruck Buyers

    Ani Cf

    HfHorror Fans

    Dr

    EiEntertainment

    Influencers

    MlMusic Lovers

    VgVideo Gamers

    TvTv Enthusiasts

    XBoxXBox

    Enthusiasts

    NdsNds

    Enthusiasts

    RsRomanticShoppers

    AfAction Fans

    Ca

    DvdDvd Buyers

    MgMovie-Goers

    ViVideo GameInfluencers

    Ps3Ps3

    Enthusiasts

    FamFamily

    Shoppers

    WiiWii

    Enthusiasts

    SfSci-Fi Movie

    Shoppers

    BtsBack-To-SchoolClothing &

    Sp

    WvWinter Sports

    SrSummer

    WsWinter Clothing

    Shoppers

    Auto LoansFootball

    Enthusiasts

    Business DecisionBi

    Career Seekers

    BdBusiness

    CasCredit CardApplicants

    Ca

    EducationSeekers

    Ha

    InsuranceShoppers

    EsHomeAccountants

    IReal Estate &

    Mortgage Shoppers

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    RetirementPlanners

    Se

    Small BusinessOwners

    RpSavvy Economic

    So StStock Trader

    GeGolf

    Enthusiasts

    H

    Hispanic

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    MbMom & Baby

    MMen

    NyNew Years

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    OeOutdoorEnthusiast

    PmPolitically Minded

    Individuals

    PiPoliticalInfluencers

    PpProud Parents

    SSingles

    SocSocial

    Networkers

    MpUS MilitaryPersonnel

    BcBudget Conscious

    Bea

    AcAffluent Consumer

    HsHoliday Shoppers

    Hh

    HiHome Improvement

    Enthusiasts

    OsOnline Shoppers

    RRetirees

    PlPet Lovers

    HwHealth & Wellness

    Advocates

    SbSports Buffs

    WWomen

    DfDiet & FitnessEnthusiasts

    FsFall Clothing

    Shoppers

    AaAfrican

    American

    ArtArt & CultureEnthusiasts

    EaEco-AwareIndividuals

    FanFantasy Sports

    BtsBack-To-School

    Clothing & Supplies

    HdHoliday Dinner

    Planners

    SpSpring Seasonal

    Shoppers

    VVa

    BtgBack To School

    Computer & GadgetShoppers

    LvLas VegasTravelers

    CvCruise

    Vacationers

    HtHawaii

    Travellers

    BtBusiness

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    Enthuisiasts

    CoComputerShoppers

    MtMexico

    Travelers

    Gl

    Gadget Lovers

    HgHoliday Gadget

    Shoppers

    TiTechnologyInfluencers

    3. Leveraging data management platforms to control and manage ongoing

    campaign data

    Data is the fuel that runs any effective online targeting campaign. However, collecting data for datas

    sake is like having a reserve of gasoline that only ever sits in a container in the garageuntil its put

    to proper use, it has little value.

    Because audience targeting campaigns can be very complex and because there are frequently

    multiple channels, systems, and databases that all need to work together, it is paramount that

    advertisers have access to data management tools which give them the correct insight and

    understanding they need in order to make important targeting decisions.

    By using a single platform to control and manage data, advertisers are able to collect and

    apply granular insights and campaign optimization from multiple points of view and apply this

    understanding to all their campaigns.

    4. Defining and building precise target audiences

    Accurate targeting requires the ability to define your audience explicitly, clearly and, most importantly,

    accurately. Data management platforms empower publishers and advertisers to apply logic controls

    so they can better manage audience segments based on their unique needs and allow publishers to

    better understand, define, and build true audiences across multiple dimensions used to target online

    advertising campaigns.

    A key component to audience definition is having the tools to transparently understand what

    elements define an audience. Too often there is a reliance on unseen algorithms or black box

    solutions, and guesswork becomes a common default when defining audience segments. While this

    may have been acceptable in the early days, the growing sophistication of online targeting, the need

    to replicate the same target groups across multiple channels, and the greater awareness of data

    quality and (sources) mean this is no longer sufficient.

    5. Connecting audiences with available inventory across multiple buying

    and selling points

    In a multi-channel/multi-partnership/multi-platform environment it is essential that any audience

    segment built can be shared and used, based on the needs of the publisher or advertiser. With data

    management platforms, the tools also need to offer total control of who has access to and use of

    any segment. At the same time, the platform must offer the flexibility to allow different audiences

    to be bought, sold or shared across the multiple partnerships that operate in the online advertising

    ecosystem.

    Market Intelligence Report Welcome to the Evolution

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    9/27

    AAsian

    Imports

    AsAuto Shoppers

    Ae

    Auto Enthusiasts

    CiCrossoverIntenders

    CsCoupe Shoppers

    EcEconomy Intenders

    DbDomestic Buyers

    Lb

    Luxury Buyers

    Ai

    Auto Influencers

    PE

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    TrTruck Buyers

    Ani Cf

    HfHorror Fans

    Dr

    EiEntertainment

    Influencers

    MlMusic Lovers

    VgVideo Gamers

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    XBoxXBox

    Enthusiasts

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    RsRomanticShoppers

    AfAction Fans

    Ca

    DvdDvd Buyers

    MgMovie-Goers

    ViVideo GameInfluencers

    Ps3Ps3

    Enthusiasts

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    Shoppers

    BtsBack-To-SchoolClothing &

    Sp

    WvWinter Sports

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    Enthusiasts

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    Ca

    EducationSeekers

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    IReal Estate &

    Mortgage Shoppers

    Re

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    Enthusiasts

    H

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    MMen

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    PiPoliticalInfluencers

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    Bea

    AcAffluent Consumer

    HsHoliday Shoppers

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    OsOnline Shoppers

    RRetirees

    PlPet Lovers

    HwHealth & Wellness

    Advocates

    SbSports Buffs

    WWomen

    DfDiet & FitnessEnthusiasts

    FsFall Clothing

    Shoppers

    AaAfrican

    American

    ArtArt & CultureEnthusiasts

    EaEco-AwareIndividuals

    FanFantasy Sports

    BtsBack-To-School

    Clothing & Supplies

    HdHoliday Dinner

    Planners

    SpSpring Seasonal

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    VVa

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    Although primarily used today for online display advertising, any data management platform should

    also be flexible enough to allow it to work across a multitude of channels. From measuring video

    campaigns through to mobile, the platform should offer real channel connectivity, ensuring that

    audiences can be defined and reached based on campaign needs and not siloed by channel.

    Such flexibility also has applications for offline activity. Advertisers should have the ability to tie inaudience targeting between online and offline sources, enabling truly integrated campaigns to be

    developed and executed.

    6. Employing campaign insights to optimize and refine targeted campaigns

    Any effective platform needs to offer a suite of reporting and analytics to drive audience optimization

    and to meet and maximize overall campaign performance goals.

    Providing the granularity of intelligence for fine-tuning audience targeting definitions is essential in

    order to focus on the key data drivers that comprise an audience. However, this needs to be coupled

    with the real-time capabilities so that campaign performance can be fine-tuned and new parameters

    tested and implemented mid-campaign.

    7. Providing control, transparency and reproducibility for future campaigns

    When working with multiple parties and media producers, the concept of target audience can get

    lost in translation, as each partner may define an audience differently. Any effective data management

    platform should give advertisers control of definitions rather than accept another partys interpretation

    of it. This then provides the ability to judge the effectiveness of different channels by comparing the

    performance across multiple media sources to further optimize campaigns.

    With advertisers controlling how audiences are defined, real transparency is possible by sharing an

    understanding of exactly which data points an audience is based upon. As mentioned previously,

    blackbox solutions prevent such transparency from being possible. In turn, this makes it very difficult

    to see what drives an audience, whether the original audience truly reflects the profile required by the

    marketer and how profiles can be refined and optimized during a campaign.

    The ability to build and save an audience on a data management platform ensures this same segment

    (and its associated definition) can be used in the future, with the marketer having the reassurance

    it will be replicated exactly. This gives publishers the confidence that when advertisers repeat

    a campaign they will deliver to the same audience and enable advertisers to replicate successfulcampaigns and accurately compare results.

    Market Intelligence Report Welcome to the Evolution

  • 8/3/2019 Welcome to the Evolution: Audience Based Marketing - Now and Moving Forward

    10/27

    Defining yourAudience Strategy

    through theBehaviorally Driven

    Marketplace

  • 8/3/2019 Welcome to the Evolution: Audience Based Marketing - Now and Moving Forward

    11/27

    AAsian

    Imports

    AsAuto Shoppers

    Ae

    Auto Enthusiasts

    CiCrossoverIntenders

    CsCoupe Shoppers

    EcEconomy Intenders

    DbDomestic Buyers

    Lb

    Luxury Buyers

    Ai

    Auto Influencers

    PE

    Se

    TrTruck Buyers

    Ani Cf

    HfHorror Fans

    Dr

    EiEntertainment

    Influencers

    MlMusic Lovers

    VgVideo Gamers

    TvTv Enthusiasts

    XBoxXBox

    Enthusiasts

    NdsNds

    Enthusiasts

    RsRomanticShoppers

    AfAction Fans

    Ca

    DvdDvd Buyers

    MgMovie-Goers

    ViVideo GameInfluencers

    Ps3Ps3

    Enthusiasts

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    Shoppers

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    SfSci-Fi Movie

    Shoppers

    BtsBack-To-SchoolClothing &

    Sp

    WvWinter Sports

    SrSummer

    WsWinter Clothing

    Shoppers

    Auto LoansFootball

    Enthusiasts

    Business DecisionBi

    Career Seekers

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    Ca

    EducationSeekers

    Ha

    InsuranceShoppers

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    IReal Estate &

    Mortgage Shoppers

    Re

    RetirementPlanners

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    MMen

    NyNew Years

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    OeOutdoorEnthusiast

    PmPolitically Minded

    Individuals

    PiPoliticalInfluencers

    PpProud Parents

    SSingles

    SocSocial

    Networkers

    MpUS MilitaryPersonnel

    BcBudget Conscious

    Bea

    AcAffluent Consumer

    HsHoliday Shoppers

    Hh

    HiHome Improvement

    Enthusiasts

    OsOnline Shoppers

    RRetirees

    PlPet Lovers

    HwHealth & Wellness

    Advocates

    SbSports Buffs

    WWomen

    DfDiet & FitnessEnthusiasts

    FsFall Clothing

    Shoppers

    AaAfrican

    American

    ArtArt & CultureEnthusiasts

    EaEco-AwareIndividuals

    FanFantasy Sports

    BtsBack-To-School

    Clothing & Supplies

    HdHoliday Dinner

    Planners

    SpSpring Seasonal

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    VVa

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    CvCruise

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    Travelers

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    Defining your Audience Strategy through the Behaviorally

    Driven Marketplace

    P erhaps the biggest challenge for advertisers today is in how they define the criteria neededto identify target audiences. The traditional obsession of mass media advertising aroundvolume has trained many advertisers to focus their efforts on ways they can reach the greatest

    number of consumerswith little consideration as to who they are or what they want or need. Apart

    from the time and money these practices waste, the sad truth is that these forms of advertising

    generally reach a vast majority of consumers for whom the message is pointless or irrelevant.

    Reaching targeted audiences is a necessary ingredient for todays advertisers. This means that

    publishers need to be able to help define the needs and interests of site visitors on an ongoing basis

    so the data can be paired with an advertisers message to allow the right consumers to come incontact with messages that are most timely and relevant to their needs and interests. However,

    identifying what a consumer wants and needs is the first major hurdle that both publishers and

    advertisers need to get over.

    One of the main challenges that all advertisers face is that audiences of all kinds are constantly in a

    state of flux and even seemingly easy to define consumer needs change from moment to moment.

    For example, a consumer looking to buy a new car may express all sorts of indicative behaviors in

    their online behaviors through the sites they visited, the themes of the content they access and the

    ads they interact with. If they match all of the points of criteria that a publisher has set out to help

    identify them, they can easily be targeted as a consumer showing a strong interest in buying a new

    car. This is a perfect scenario right up to the point where that consumer buys a new car. Right after

    that point the model falls apart. In fact, this consumer immediately shifts from being highly receptive

    to offers for new cars to not being receptive at all! To keep reaching a consumer with a targeted offer

    after the fact is largely useless and can even create a negative branding effect.

    This is one of the challenges around simple retargeting. Although currently a very popular and often

    effective solution, compared with data-driven targeting, it can be unsophisticated and the danger of

    not building in an element of recency means consumers will continue to be targeted long after they

    have actually made the purchase.

    Market Intelligence Report Welcome to the Evolution

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    DefiningLookalikeBehaviorsto Deliver

    Audiences

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    AAsian

    Imports

    AsAuto Shoppers

    Ae

    Auto Enthusiasts

    CiCrossoverIntenders

    CsCoupe Shoppers

    EcEconomy Intenders

    DbDomestic Buyers

    Lb

    Luxury Buyers

    Ai

    Auto Influencers

    PE

    Se

    TrTruck Buyers

    Ani Cf

    HfHorror Fans

    Dr

    EiEntertainment

    Influencers

    MlMusic Lovers

    VgVideo Gamers

    TvTv Enthusiasts

    XBoxXBox

    Enthusiasts

    NdsNds

    Enthusiasts

    RsRomanticShoppers

    AfAction Fans

    Ca

    DvdDvd Buyers

    MgMovie-Goers

    ViVideo GameInfluencers

    Ps3Ps3

    Enthusiasts

    FamFamily

    Shoppers

    WiiWii

    Enthusiasts

    SfSci-Fi Movie

    Shoppers

    BtsBack-To-SchoolClothing &

    Sp

    WvWinter Sports

    SrSummer

    WsWinter Clothing

    Shoppers

    Auto LoansFootball

    Enthusiasts

    Business DecisionBi

    Career Seekers

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    CasCredit CardApplicants

    Ca

    EducationSeekers

    Ha

    InsuranceShoppers

    EsHomeAccountants

    IReal Estate &

    Mortgage Shoppers

    Re

    RetirementPlanners

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    Small BusinessOwners

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    So StStock Trader

    GeGolf

    Enthusiasts

    H

    Hispanic

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    MbMom & Baby

    MMen

    NyNew Years

    Resolution Makers

    OeOutdoorEnthusiast

    PmPolitically Minded

    Individuals

    PiPoliticalInfluencers

    PpProud Parents

    SSingles

    SocSocial

    Networkers

    MpUS MilitaryPersonnel

    BcBudget Conscious

    Bea

    AcAffluent Consumer

    HsHoliday Shoppers

    Hh

    HiHome Improvement

    Enthusiasts

    OsOnline Shoppers

    RRetirees

    PlPet Lovers

    HwHealth & Wellness

    Advocates

    SbSports Buffs

    WWomen

    DfDiet & FitnessEnthusiasts

    FsFall Clothing

    Shoppers

    AaAfrican

    American

    ArtArt & CultureEnthusiasts

    EaEco-AwareIndividuals

    FanFantasy Sports

    BtsBack-To-School

    Clothing & Supplies

    HdHoliday Dinner

    Planners

    SpSpring Seasonal

    Shoppers

    VVa

    BtgBack To School

    Computer & GadgetShoppers

    LvLas VegasTravelers

    CvCruise

    Vacationers

    HtHawaii

    Travellers

    BtBusiness

    Travelers

    CtCaribbean

    Travelers

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    Enthuisiasts

    CoComputerShoppers

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    Gadget Lovers

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    Shoppers

    TiTechnologyInfluencers

    Defining Lookalike Behaviors to Deliver Audiences

    The core of any successful audience strategy is based on how effectively publishers can

    reveal and decipher human behaviors when consumers are in the buying window for a

    product or service. While overall human behaviors can be complex, there are plenty of consumer

    behaviors that offer a predictive outlook as to their thoughts and intentions in the future.

    Often, the inability of some platforms to harvest and handle behavioral data at scale and in the

    necessary volumes required to build meaningful audiences means different approaches need to

    be adopted.

    To make up for this lack of actual data, advertisers are often restricted to what they can model

    out or observe directly. As a result, we have seen the rise in use of lookalike modeling to define

    audiencesa technique used in the offline world to fill in the gaps when actual data is at a

    premium. This approach is based upon the idea of identifying the behavioral pathways of a small

    group of known customersoften derived from broad survey information around demographics

    and interestsand using this information to help define users with similar characteristics, hence the

    term lookalikes. By modeling out, this allows a larger audience segment to be created. Although

    a recognized approach, these lookalike audience segments represent a much less sophisticated

    and accurate audience targeting strategy, as real data will always be the most valuable for delivering

    insight and precision. For example, in the offline world this is reflected in the fact such lists would be

    cheaper to buy than those built purely on actual data. As a result, lookalike targeting can be limited in

    its usefulness for several reasons.

    The first is that lookalike targeting makes predictive assumptions about a consumers behavior based

    on the behaviors of other consumers. While this approach may bear fruit, the challenges that most

    publishers face is that these suppositions are based on best case guesstimates thinking and not

    real ongoing consumer behaviors.

    For example, anybody who has ever been a parent has certainly gone through a shift in their personal

    perspective of the world and in how they behave. However, the simple act of becoming a parent

    doesnt prescribe a universal set of behaviors that all parents suddenly follow. Certainly there are

    clear distinctions between the needs, attitudes and behaviors of consumers who are raising children

    compared against other consumers who have never had children, but there is still a huge amount of

    variability within the group being classified as parents stemming from factors such as the age of

    their children, lifestyles, educational concerns and possibly thousands of other points of criteria.

    Market Intelligence Report Welcome to the Evolution

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    AAsian

    Imports

    AsAuto Shoppers

    Ae

    Auto Enthusiasts

    CiCrossoverIntenders

    CsCoupe Shoppers

    EcEconomy Intenders

    DbDomestic Buyers

    Lb

    Luxury Buyers

    Ai

    Auto Influencers

    PE

    Se

    TrTruck Buyers

    Ani Cf

    HfHorror Fans

    Dr

    EiEntertainment

    Influencers

    MlMusic Lovers

    VgVideo Gamers

    TvTv Enthusiasts

    XBoxXBox

    Enthusiasts

    NdsNds

    Enthusiasts

    RsRomanticShoppers

    AfAction Fans

    Ca

    DvdDvd Buyers

    MgMovie-Goers

    ViVideo GameInfluencers

    Ps3Ps3

    Enthusiasts

    FamFamily

    Shoppers

    WiiWii

    Enthusiasts

    SfSci-Fi Movie

    Shoppers

    BtsBack-To-SchoolClothing &

    Sp

    WvWinter Sports

    SrSummer

    WsWinter Clothing

    Shoppers

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    Enthusiasts

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    Ca

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    IReal Estate &

    Mortgage Shoppers

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    HwHealth & Wellness

    Advocates

    SbSports Buffs

    WWomen

    DfDiet & FitnessEnthusiasts

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    AaAfrican

    American

    ArtArt & CultureEnthusiasts

    EaEco-AwareIndividuals

    FanFantasy Sports

    BtsBack-To-School

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    SpSpring Seasonal

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    BtgBack To School

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    LvLas VegasTravelers

    CvCruise

    Vacationers

    HtHawaii

    Travellers

    BtBusiness

    Travelers

    CtCaribbean

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    Enthuisiasts

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    This means that a publisher looking to create a target audience segment surrounding the ongoing

    needs of parents would need to have clearly defined criteria in place to sort this larger group into

    perhaps dozens of smaller audience segments in order for it to be useful to many advertisers.

    Segments that are too generalized are still going to reach a large number of the wrong consumers.

    The second challenge is around accuracy. The accuracy of any model is driven by the proportionof actual data used to derive it. The smaller your sample size and the less real data used, the

    more guesswork is needed. Modeling from small volumes on often broad data fails to provide

    the differentiation and discrimination that building targeting around actual data delivers, leading

    to potentially a number of inaccurate suppositions to be made. For example, say a marketer was

    creating a campaign to drive traffic to a site that sold tickets to football games. Looking at a small

    sample may indicate that the target audience is mainly men between the ages of 18 and 50a

    supposition that seems plausible. However, using only these criteria to target an audience excludes

    the possibility that there are also plenty of women who are football fans. This scenario also doesnt

    take into consideration that not all men in the target gender and age range will be football fans. It also

    doesnt take into consideration the other interests that sports fans in general may have which could

    be used to drive additional interest and traffic to sites that address these needs and desires.

    Market Intelligence Report Welcome to the Evolution

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    15/27

    While these initial targeting suppositions may sharpen the marketing focus somewhat, it still offers

    an incomplete picture of who the audience really is and what they really want or need. In order to be

    effective today, advertisers need to tightly sharpen the targeting focus to take into consideration real

    behavioral data that can better show them where their audience is based on a flow of actions and

    behaviors that cares less about specific data points like gender and age and instead looks for criteria

    that can be associated with, for example, football fans behaviors and more specifically football fans

    who buy tickets to games.

    Inherent in the lookalike model is that users with similar characteristics will act in a similar manner to

    the group the model was built on. However, this makes a very broad assumption that they will also

    be in the market for the particular offering. People are only in market for a short period of time and

    although you can identify similar group characteristics through modeling, this is very different from

    having a genuine interest in something and being in the buying window. As a result, you are often

    faced with the situation of reaching audiences that are not interested in your offering.

    Finally, using the lookalike approach needs to be seen in the context of the reach/relevancy

    argument. By its very nature, actual data will lose out when it comes to reach. However, extending

    reach requires targeting to be much broader and accuracy to be sacrificed. Again, a mass market

    mentality moves away from the fundamental need to reach a defined targeted audience.

    Market Intelligence Report Welcome to the Evolution

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    LookingBeyond theLookalikes

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    Looking Beyond the Lookalikes

    While lookalike modeling can be valuable and does have a role to play, even taking into

    account clever analytics and a skilled data analyst, modeled data can never be as

    powerful as actual information. Its therefore important to recognize the difference between known

    data and imputed data.

    For advertisers, effective marketing is less about finding an audience than meeting their campaign

    objectives. In short, advertisers want to see a positive yield from the time, resources and money they

    put into their advertising. Reaching the right audience is only the first step to making this happen.

    Mostly, advertisers want to reach the right consumers who will be most likely to respond favorably to

    their campaign.

    In order to do this, advertisers need to have access to audience segments that are continuouslybeing revised and refined to spot consumer behaviors or trends that indicate which consumers are

    potentially most receptive to an offer. This requires the use of real data feedback loops.

    Real data feedback loops enable publishers and advertisers to eliminate guesswork by creating

    transparent systems that show what is really happening during a campaign. For example, campaign

    planners may decide on a target audience that they think will be most interested in a product or

    service only to discover, by measuring the types of consumers who actually respond to the campaign,

    that the people the advertiser wanted to reach and who showed up are two different audiences.

    Market Intelligence Report Welcome to the Evolution

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    The AudienceTargeting Shift:

    Finding theNew Path

  • 8/3/2019 Welcome to the Evolution: Audience Based Marketing - Now and Moving Forward

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    AAsian

    Imports

    AsAuto Shoppers

    Ae

    Auto Enthusiasts

    CiCrossoverIntenders

    CsCoupe Shoppers

    EcEconomy Intenders

    DbDomestic Buyers

    Lb

    Luxury Buyers

    Ai

    Auto Influencers

    PE

    Se

    TrTruck Buyers

    Ani Cf

    HfHorror Fans

    Dr

    EiEntertainment

    Influencers

    MlMusic Lovers

    VgVideo Gamers

    TvTv Enthusiasts

    XBoxXBox

    Enthusiasts

    NdsNds

    Enthusiasts

    RsRomanticShoppers

    AfAction Fans

    Ca

    DvdDvd Buyers

    MgMovie-Goers

    ViVideo GameInfluencers

    Ps3Ps3

    Enthusiasts

    FamFamily

    Shoppers

    WiiWii

    Enthusiasts

    SfSci-Fi Movie

    Shoppers

    BtsBack-To-SchoolClothing &

    Sp

    WvWinter Sports

    SrSummer

    WsWinter Clothing

    Shoppers

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    Enthusiasts

    Business DecisionBi

    Career Seekers

    BdBusiness

    CasCredit CardApplicants

    Ca

    EducationSeekers

    Ha

    InsuranceShoppers

    EsHomeAccountants

    IReal Estate &

    Mortgage Shoppers

    Re

    RetirementPlanners

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    Small BusinessOwners

    RpSavvy Economic

    So StStock Trader

    GeGolf

    Enthusiasts

    H

    Hispanic

    LmLife Milestones

    MbMom & Baby

    MMen

    NyNew Years

    Resolution Makers

    OeOutdoorEnthusiast

    PmPolitically Minded

    Individuals

    PiPoliticalInfluencers

    PpProud Parents

    SSingles

    SocSocial

    Networkers

    MpUS MilitaryPersonnel

    BcBudget Conscious

    Bea

    AcAffluent Consumer

    HsHoliday Shoppers

    Hh

    HiHome Improvement

    Enthusiasts

    OsOnline Shoppers

    RRetirees

    PlPet Lovers

    HwHealth & Wellness

    Advocates

    SbSports Buffs

    WWomen

    DfDiet & FitnessEnthusiasts

    FsFall Clothing

    Shoppers

    AaAfrican

    American

    ArtArt & CultureEnthusiasts

    EaEco-AwareIndividuals

    FanFantasy Sports

    BtsBack-To-School

    Clothing & Supplies

    HdHoliday Dinner

    Planners

    SpSpring Seasonal

    Shoppers

    VVa

    BtgBack To School

    Computer & GadgetShoppers

    LvLas VegasTravelers

    CvCruise

    Vacationers

    HtHawaii

    Travellers

    BtBusiness

    Travelers

    CtCaribbean

    Travelers

    CeCell Phone

    Enthuisiasts

    CoComputerShoppers

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    Travelers

    Gl

    Gadget Lovers

    HgHoliday Gadget

    Shoppers

    TiTechnologyInfluencers

    The Audience Targeting Shift: Finding the New Path

    While audience targeting offers unprecedented insights into optimizing media buying

    and ad placement, it is important to understand that these are not set it and forget it

    programs nor are they self-sustaining.

    Realistically there are no magical solutions in which audience segments manage themselves. Like

    anything of value, audience targeting requires ongoing updates and changes to targeting criteria in

    order to be effective. Its also worth mentioning that few publishers reach their precise targeting goals

    on the first try. All segments require an evolution that is based on campaign feedback and collecting

    ongoing consumer and site data.

    Audience targeting is built upon a foundation that looks for the relationship between the people that

    advertisers want to talk tothose consumers who have exhibited behaviors that indicate that theywould like to be part of the advertisers conversation.

    In order to create these relationships, publishers first need to identify which aspects of a site visitors

    behavior are most in line with those people who have met the advertisers needs in the past. These

    behaviors are derived from 1st party data collected by the publishers themselves along with more

    diverse 3rd party data being shared through ad networks, ad exchanges, social media sources, data

    exchanges and, increasingly, via offline data.

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    Changes forAdvertisers

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    AAsian

    Imports

    AsAuto Shoppers

    Ae

    Auto Enthusiasts

    CiCrossoverIntenders

    CsCoupe Shoppers

    EcEconomy Intenders

    DbDomestic Buyers

    Lb

    Luxury Buyers

    Ai

    Auto Influencers

    PE

    Se

    TrTruck Buyers

    Ani Cf

    HfHorror Fans

    Dr

    EiEntertainment

    Influencers

    MlMusic Lovers

    VgVideo Gamers

    TvTv Enthusiasts

    XBoxXBox

    Enthusiasts

    NdsNds

    Enthusiasts

    RsRomanticShoppers

    AfAction Fans

    Ca

    DvdDvd Buyers

    MgMovie-Goers

    ViVideo GameInfluencers

    Ps3Ps3

    Enthusiasts

    FamFamily

    Shoppers

    WiiWii

    Enthusiasts

    SfSci-Fi Movie

    Shoppers

    BtsBack-To-SchoolClothing &

    Sp

    WvWinter Sports

    SrSummer

    WsWinter Clothing

    Shoppers

    Auto LoansFootball

    Enthusiasts

    Business DecisionBi

    Career Seekers

    BdBusiness

    CasCredit CardApplicants

    Ca

    EducationSeekers

    Ha

    InsuranceShoppers

    EsHomeAccountants

    IReal Estate &

    Mortgage Shoppers

    Re

    RetirementPlanners

    Se

    Small BusinessOwners

    RpSavvy Economic

    So StStock Trader

    GeGolf

    Enthusiasts

    H

    Hispanic

    LmLife Milestones

    MbMom & Baby

    MMen

    NyNew Years

    Resolution Makers

    OeOutdoorEnthusiast

    PmPolitically Minded

    Individuals

    PiPoliticalInfluencers

    PpProud Parents

    SSingles

    SocSocial

    Networkers

    MpUS MilitaryPersonnel

    BcBudget Conscious

    Bea

    AcAffluent Consumer

    HsHoliday Shoppers

    Hh

    HiHome Improvement

    Enthusiasts

    OsOnline Shoppers

    RRetirees

    PlPet Lovers

    HwHealth & Wellness

    Advocates

    SbSports Buffs

    WWomen

    DfDiet & FitnessEnthusiasts

    FsFall Clothing

    Shoppers

    AaAfrican

    American

    ArtArt & CultureEnthusiasts

    EaEco-AwareIndividuals

    FanFantasy Sports

    BtsBack-To-School

    Clothing & Supplies

    HdHoliday Dinner

    Planners

    SpSpring Seasonal

    Shoppers

    VVa

    BtgBack To School

    Computer & GadgetShoppers

    LvLas VegasTravelers

    CvCruise

    Vacationers

    HtHawaii

    Travellers

    BtBusiness

    Travelers

    CtCaribbean

    Travelers

    CeCell Phone

    Enthuisiasts

    CoComputerShoppers

    MtMexico

    Travelers

    Gl

    Gadget Lovers

    HgHoliday Gadget

    Shoppers

    TiTechnologyInfluencers

    Changes for Advertisers

    Recent advances in audience targeting have also provided advertisers powerful new tools for

    better reaching consumers most likely to respond to their advertising and also most likely to

    convert.

    Because of the depth of data being used in audience targeting today, publishers and advertisers

    can create much more granular profiles that address individual consumer needs. This precise level

    of personal targeting is being coupled with advertising systems that can create dynamic display ads

    that can rebuild themselves on the fly to create personalized and impactful advertising solutions to

    enhance an advertisers audience strategy.

    How advertisers are buying impressions is changing too. Unlike models of just a few years ago when

    media buying was based on buying ad placement on specific sites in quantities of 1000 impressions(CPM), today automated buying systems allow advertisers to buy single impressions, when they need

    them, from a wide range of publishers. This means that advertisers can reach their target audiences

    across sites and pages as needed in a highly efficient way.

    Arrival of the Automated Infrastructure

    With the rise of Search Engine Marketing (SEM) platforms like Google, came the idea ofbidding on individual impressions as they were needed.

    This concept was introduced into the online display market with the emergence of the advertising

    exchanges and new media transaction platforms. As a catalyst to the streamlining of online

    advertising, these platforms heralded the arrival of a host of new platforms, technologies and

    three letter acronyms (including DMPs) to support the requirements of the buy side or sell side (or,

    sometimes, both).

    For more information on these entities, please see the Glossary at the end.

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    AAsian

    Imports

    AsAuto Shoppers

    Ae

    Auto Enthusiasts

    CiCrossoverIntenders

    CsCoupe Shoppers

    EcEconomy Intenders

    DbDomestic Buyers

    Lb

    Luxury Buyers

    Ai

    Auto Influencers

    PE

    Se

    TrTruck Buyers

    Ani Cf

    HfHorror Fans

    Dr

    EiEntertainment

    Influencers

    MlMusic Lovers

    VgVideo Gamers

    TvTv Enthusiasts

    XBoxXBox

    Enthusiasts

    NdsNds

    Enthusiasts

    RsRomanticShoppers

    AfAction Fans

    Ca

    DvdDvd Buyers

    MgMovie-Goers

    ViVideo GameInfluencers

    Ps3Ps3

    Enthusiasts

    FamFamily

    Shoppers

    WiiWii

    Enthusiasts

    SfSci-Fi Movie

    Shoppers

    BtsBack-To-SchoolClothing &

    Sp

    WvWinter Sports

    SrSummer

    WsWinter Clothing

    Shoppers

    Auto LoansFootball

    Enthusiasts

    Business DecisionBi

    Career Seekers

    BdBusiness

    CasCredit CardApplicants

    Ca

    EducationSeekers

    Ha

    InsuranceShoppers

    EsHomeAccountants

    IReal Estate &

    Mortgage Shoppers

    Re

    RetirementPlanners

    Se

    Small BusinessOwners

    RpSavvy Economic

    So StStock Trader

    GeGolf

    Enthusiasts

    H

    Hispanic

    LmLife Milestones

    MbMom & Baby

    MMen

    NyNew Years

    Resolution Makers

    OeOutdoorEnthusiast

    PmPolitically Minded

    Individuals

    PiPoliticalInfluencers

    PpProud Parents

    SSingles

    SocSocial

    Networkers

    MpUS MilitaryPersonnel

    BcBudget Conscious

    Bea

    AcAffluent Consumer

    HsHoliday Shoppers

    Hh

    HiHome Improvement

    Enthusiasts

    OsOnline Shoppers

    RRetirees

    PlPet Lovers

    HwHealth & Wellness

    Advocates

    SbSports Buffs

    WWomen

    DfDiet & FitnessEnthusiasts

    FsFall Clothing

    Shoppers

    AaAfrican

    American

    ArtArt & CultureEnthusiasts

    EaEco-AwareIndividuals

    FanFantasy Sports

    BtsBack-To-School

    Clothing & Supplies

    HdHoliday Dinner

    Planners

    SpSpring Seasonal

    Shoppers

    VVa

    BtgBack To School

    Computer & GadgetShoppers

    LvLas VegasTravelers

    CvCruise

    Vacationers

    HtHawaii

    Travellers

    BtBusiness

    Travelers

    CtCaribbean

    Travelers

    CeCell Phone

    Enthuisiasts

    CoComputerShoppers

    MtMexico

    Travelers

    Gl

    Gadget Lovers

    HgHoliday Gadget

    Shoppers

    TiTechnologyInfluencers

    Conclusion

    A

    s target marketing matures and new systems are built from the real data being collected,

    greater and greater focus will be on better ways to collect data and then how it can bemeasured, analyzed and continuously applied to engage consumers.

    The rise of data management platforms means that publishers and advertisers are able to define

    more specifically who their target audiences are and, perhaps more importantly, why.

    In turn, this data will be used to drive largely automated media transaction systems that can take

    on the most difficult tasks of identifying target audiences while they are in motion and using applied

    criteria to instantaneously deliver ads so that contact between the right message and right consumer

    can be accomplished consistently.

    This evolution means that audience segments that are based on best scenario lookalike targetingwill continue to give way to solutions that are based on real and actionable data points. Data

    management platforms take the guess work out of the equation for advertisers and publishers. These

    new platforms allow for more accurate targeting by building audiences based on actual behaviors and

    not just behavioral assumptions or broad, static survey responses. They also enable more relevant ad

    placement by accurately measuring interest and intent (and not just related characteristics) to find the

    right consumer. Perhaps the greatest benefit of the new data-driven platform is the flexibility they offer

    advertisers and publishers. Instead of requiring that every nuance of a media buy is monitored, they

    can instead allow the system to identify opportunity and place ads as required. Not only does this

    free advertisers and publishers to focus on other important decisions, it also helps reduce points of

    conflict between publishers and advertisers that often stem from instances where inventory may be

    undelivered, resulting in make goods and other alternations to media agreements.

    This evolution also means that buying impressions in large, broad clusters or trying to buy audiences

    based simply around contextual markers will become much less efficient and less common. The

    overwhelmingly good news for all digital advertisers is that this new efficiency will lead to a greater

    percentage of successful ad placement and increasing Return on Investment (ROI).

    As each of these new tools are put into place, the sophistication of the platforms to handle that

    data will continue to grow and so will their accuracy and value. For advertisers and publishers who

    embrace these solutions today comes the added benefit of standing out as more competitive inones market. It also means that late adopters will face a much greater challenge getting up to speed

    should they wait too long.

    At the end of the day, the benefits of accurate and actionable targeting are unquestionable. While there

    are always challenges in adopting new ways to do business, having the right technology partners can

    minimize those challenges and enable advertisers and publishers to reach those benefits more quickly.

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    Glossary ofIndustry Terms

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    AAsian

    Imports

    AsAuto Shoppers

    Ae

    Auto Enthusiasts

    CiCrossoverIntenders

    CsCoupe Shoppers

    EcEconomy Intenders

    DbDomestic Buyers

    Lb

    Luxury Buyers

    Ai

    Auto Influencers

    PE

    Se

    TrTruck Buyers

    Ani Cf

    HfHorror Fans

    Dr

    EiEntertainment

    Influencers

    MlMusic Lovers

    VgVideo Gamers

    TvTv Enthusiasts

    XBoxXBox

    Enthusiasts

    NdsNds

    Enthusiasts

    RsRomanticShoppers

    AfAction Fans

    Ca

    DvdDvd Buyers

    MgMovie-Goers

    ViVideo GameInfluencers

    Ps3Ps3

    Enthusiasts

    FamFamily

    Shoppers

    WiiWii

    Enthusiasts

    SfSci-Fi Movie

    Shoppers

    BtsBack-To-SchoolClothing &

    Sp

    WvWinter Sports

    SrSummer

    WsWinter Clothing

    Shoppers

    Auto LoansFootball

    Enthusiasts

    Business DecisionBi

    Career Seekers

    BdBusiness

    CasCredit CardApplicants

    Ca

    EducationSeekers

    Ha

    InsuranceShoppers

    EsHomeAccountants

    IReal Estate &

    Mortgage Shoppers

    Re

    RetirementPlanners

    Se

    Small BusinessOwners

    RpSavvy Economic

    So StStock Trader

    GeGolf

    Enthusiasts

    H

    Hispanic

    LmLife Milestones

    MbMom & Baby

    MMen

    NyNew Years

    Resolution Makers

    OeOutdoorEnthusiast

    PmPolitically Minded

    Individuals

    PiPoliticalInfluencers

    PpProud Parents

    SSingles

    SocSocial

    Networkers

    MpUS MilitaryPersonnel

    BcBudget Conscious

    Bea

    AcAffluent Consumer

    HsHoliday Shoppers

    Hh

    HiHome Improvement

    Enthusiasts

    OsOnline Shoppers

    RRetirees

    PlPet Lovers

    HwHealth & Wellness

    Advocates

    SbSports Buffs

    WWomen

    DfDiet & FitnessEnthusiasts

    FsFall Clothing

    Shoppers

    AaAfrican

    American

    ArtArt & CultureEnthusiasts

    EaEco-AwareIndividuals

    FanFantasy Sports

    BtsBack-To-School

    Clothing & Supplies

    HdHoliday Dinner

    Planners

    SpSpring Seasonal

    Shoppers

    VVa

    BtgBack To School

    Computer & GadgetShoppers

    LvLas VegasTravelers

    CvCruise

    Vacationers

    HtHawaii

    Travellers

    BtBusiness

    Travelers

    CtCaribbean

    Travelers

    CeCell Phone

    Enthuisiasts

    CoComputerShoppers

    MtMexico

    Travelers

    Gl

    Gadget Lovers

    HgHoliday Gadget

    Shoppers

    TiTechnologyInfluencers

    Glossary of Industry Terms

    There are times when the alphabet soup of new terms, acronyms and buzz words can

    make even the most seasoned veteran feel like a stranger in a strange land. Hopefully this

    glossary of the most common terms will help you navigate the online advertising landscape.

    Ad Exchange

    Ad exchanges provide a sales

    channel to publishers and ad

    networks, as well as aggregated

    inventory to advertisers. They

    provide a technology platform that

    facilitates automated auction based

    pricing and buying in real-time.

    Data Management Platform (DMP)

    A single platform for aggregating and managing multiple

    data sourcesat scaleand then enabling transparent,

    precise audiences to be defined and targeted. These

    platforms deliver reporting and campaign insight to help

    drive optimization and refined targeting.

    Day-part Targeting

    The process of placing ads onto web pages using time of day, day of week or seasonal events as the

    criteria for placing a relevant message in front of consumers. An example would be running ads for coffee

    or breakfast foods during early morning hours.

    Ad Network

    Ad networks provide an outsourced sales capability

    for publishers and a means to aggregate inventory and

    audiences from numerous sources in a single buying

    opportunity for media buyers.

    Behavioral Segment

    Refers to a group of consumers

    who share similar targeting

    characteristics, i.e., people who

    show specific interest in a new car

    purchase or who exhibit behaviors

    that are consistent with people

    raising children.

    Contextual Targeting

    The placement of display or text ads on a web page based

    on the relationship between the ad content and keywords

    that exist on that page.

    Data Exchange

    An auction-based marketplace

    allowing publishers to sell

    aggregated anonymized audience

    data to advertisers, agencies and

    networks.

    Centrographic

    Targeting

    Refers to targeting

    criteria based on

    cultural markers

    associated with a

    geographic area. i.e.,

    language, climate and

    traditional behaviors

    are all examples.Client Side

    Refers to actions that take placeon the consumers computer

    including requests for web page

    data and functions performed by

    computer applications being run by

    consumers.

    Behavioral Targeting

    The process of using a

    consumers behavior or

    online activities on the

    web to help determine that

    consumers needs, areas of

    interest and mood for the

    purpose of matching that

    consumer with ads that meet

    those areas of interest.

    Ad Impression

    Refers to a single ad placement on a web page.

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    AAsian

    Imports

    AsAuto Shoppers

    Ae

    Auto Enthusiasts

    CiCrossoverIntenders

    CsCoupe Shoppers

    EcEconomy Intenders

    DbDomestic Buyers

    Lb

    Luxury Buyers

    Ai

    Auto Influencers

    PE

    Se

    TrTruck Buyers

    Ani Cf

    HfHorror Fans

    Dr

    EiEntertainment

    Influencers

    MlMusic Lovers

    VgVideo Gamers

    TvTv Enthusiasts

    XBoxXBox

    Enthusiasts

    NdsNds

    Enthusiasts

    RsRomanticShoppers

    AfAction Fans

    Ca

    DvdDvd Buyers

    MgMovie-Goers

    ViVideo GameInfluencers

    Ps3Ps3

    Enthusiasts

    FamFamily

    Shoppers

    WiiWii

    Enthusiasts

    SfSci-Fi Movie

    Shoppers

    BtsBack-To-SchoolClothing &

    Sp

    WvWinter Sports

    SrSummer

    WsWinter Clothing

    Shoppers

    Auto LoansFootball

    Enthusiasts

    Business DecisionBi

    Career Seekers

    BdBusiness

    CasCredit CardApplicants

    Ca

    EducationSeekers

    Ha

    InsuranceShoppers

    EsHomeAccountants

    IReal Estate &

    Mortgage Shoppers

    Re

    RetirementPlanners

    Se

    Small BusinessOwners

    RpSavvy Economic

    So StStock Trader

    GeGolf

    Enthusiasts

    H

    Hispanic

    LmLife Milestones

    MbMom & Baby

    MMen

    NyNew Years

    Resolution Makers

    OeOutdoorEnthusiast

    PmPolitically Minded

    Individuals

    PiPoliticalInfluencers

    PpProud Parents

    SSingles

    SocSocial

    Networkers

    MpUS MilitaryPersonnel

    BcBudget Conscious

    Bea

    AcAffluent Consumer

    HsHoliday Shoppers

    Hh

    HiHome Improvement

    Enthusiasts

    OsOnline Shoppers

    RRetirees

    PlPet Lovers

    HwHealth & Wellness

    Advocates

    SbSports Buffs

    WWomen

    DfDiet & FitnessEnthusiasts

    FsFall Clothing

    Shoppers

    AaAfrican

    American

    ArtArt & CultureEnthusiasts

    EaEco-AwareIndividuals

    FanFantasy Sports

    BtsBack-To-School

    Clothing & Supplies

    HdHoliday Dinner

    Planners

    SpSpring Seasonal

    Shoppers

    VVa

    BtgBack To School

    Computer & GadgetShoppers

    LvLas VegasTravelers

    CvCruise

    Vacationers

    HtHawaii

    Travellers

    BtBusiness

    Travelers

    CtCaribbean

    Travelers

    CeCell Phone

    Enthuisiasts

    CoComputerShoppers

    MtMexico

    Travelers

    Gl

    Gadget Lovers

    HgHoliday Gadget

    Shoppers

    TiTechnologyInfluencers

    Third Party Cookies

    Refers to cookies that are placed on a consumers

    browser by advertisers or other technology providers and

    not the web site publishers.

    Demand Side Platform (DSP)

    Also called buy side optimizers or buy side

    platforms, Demand Side Platforms provide

    centralized (aggregated) media buying from multiple

    sources including ad exchanges, ad networks and

    sell side platforms, leveraging real time bidding

    capabilities. This allows advertisers to bettermanage their media buying across multiple sources

    of inventory to ensure they are purchasing the most

    valuable inventory to them based on the needs of

    their campaign.

    Predictive Targeting

    Targeting model using onsite surveys

    or other third party data to define the

    characteristics of an audience. Using

    the profile, lookalike users are identified

    displaying similar characteristics to

    build up a larger universe.

    Real Time Bidding (RTB)

    A function of the real time trading of

    impressions in an auction environment,

    RTB allows the buyer to decide (in real

    time) whether to bid or not bid for a

    specific impression based on additional

    data they have. In addition, the buyer

    decides the bid price based on the

    perceived value of the impression to

    them. From the sell side, RTB provides

    the opportunity for publishers to better

    monetize their inventory.

    Retargeting

    Refers to a form of audience targeting in which 1st and 3rd

    party cookies are used to determine a consumers previous

    interest with a sites offering. Retargeting allows advertisers

    to reposition ads in front of that consumer on sites other

    than their own in the future in an effort to get the consumer

    to return to their site and continue the relationship.

    Semantic Targeting

    Refers to page targeting based on the explicit meaning

    of the words on a web page and not just keyword

    relationships. Helps to better define contextual relevance in

    which keyword meaning and ads may be poorly matched.

    Server Side

    Refers to functions and operations that are performed

    on the publishers server and not those of the

    consumer.

    Supply Side Platform (SSP)

    Also known as yield optimizers or

    supply side optimizers, they provide

    outsourced media selling and ad network

    management services for publishers. They

    allow them to manage their ad inventory

    and maximize its value by making it

    available to as wide a range of potential

    buyers as possible.

    First Party Cookie

    Cookies which are placed into a site visitors

    browser by the web site publisher to denote

    an existing relationship.

    IP Targeting

    Refers to targeting geographic audiences

    based on the physical locations of their

    computers and networks.

    Psychographic Targeting

    Targeting model based on the beliefs, attitudes, interests

    and opinions of consumers. Often considered the

    essence of what drives many consumer decisions.

    Technographic Targeting

    Refers to targeting that is based on

    the technology that a consumer uses

    to access the Internet. A computersfeatures, CPU speed, browser type,

    web access speed and 3rd party plug

    ins can all be used to help identify a

    consumers ability to view specific

    content like Flash-based web content

    and digital video.

    Market Intelligence Report Welcome to the Evolution

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    To learn more, please contact us today:

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    About AudienceScience

    AudienceScience is the largest and most trusted audience aggregator in the world.

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