eMarketer Webinar: Cross-Device Targeting--What to Watch for in 2017

© 2016 eMarketer Inc.

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Cross-Device Targeting: What to Watch for in 2017

Lauren T. FisherSenior Analyst

January 12, 2017


Agenda

The evolving nature of cross-device targeting

Five things to watch for in 2017

Two things you won’t see in 2017

#eMwebinar


The Evolving Nature of Cross-Device Targeting


Cross-device targeting is a top priority

69%cross-device audience recognition

52%advanced analytics and modeling to target audiences

Source: Interactive Advertising Bureau (IAB) Data Center of Excellence and Winterberry Group, January 2016

Topics or Developments that Will Command Most of Their Attention in 2016, According to US Digital Marketing and Media Practitioners

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Even today, the phrase ‘cross-device targeting’ still means different things to different folks

“There are probably more companies that are targeting media across devices than there are companies that actually understand the cross-device behavior of their customer base.”

—Brandon Wishnow, EVP, Measurement and Activation, Ovative/group

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Marketers’ adoption of the necessary capabilities for true cross-device targeting is still a work in progress

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Knowledge and use of the two main device identification methodologies has grown

Deterministic Probabilistic

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Perhaps due to growing sophistication, focus on the ‘device’ piece of cross-device is shifting

“Things are moving away from being just about cross-device identity and more toward identity itself, which is who is this user, what are their interests, and what are they likely to purchase.”

—Rahul Bafna, VP, Product Management and Partnerships, Drawbridge

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Fleshing out the identity graph is the ultimate goal, but most are just beginning this process

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Question: How confident are you in your

cross-device targeting capabilities?


Five Things to Watch for in 2017


Brands will get on board with O2O data onboarding

1


Focus will be placed on bridging online-to-offline (O2O) data sets to enhance the purchase journey

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This mirrors consumer expectations for what a holistic messaging strategy should look like

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Loyalty card data, shopper data, CRM data and location data will be just some of the many sources of offline purchase info

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TV will become a core component of the cross-device equation

2


Buyers want more cohesion between TV and digital ad targeting efforts; a good portion are already buying this way

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Greater momentum around TV ad targeting is one driver of growth

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Interest in TV ad targeting is high, but true cross-device integration is only just surfacing

“We’re seeing an increase in requests from clients to go ahead and apply the same kind of targeting practices and audience-defining capabilities to TV that we are seeing in digital. But from a cross-device or cross-channel lens, we’re not seeing this yet as a ubiquitous request. … It’s more exploratory.”

—Denise Colella, SVP, Advanced Advertising Products and Strategy, NBCUniversal

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Con

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ed T

V

Add

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Connected and addressable TV offer the most precision with audience matching, but audience matching with linear TV is the ultimate goal

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Creative capabilities will advance

3


Getting a handle on sequencing and frequency will be a top priority

“What advertisers want when they go to cross-device is not just to deliver ads on a smartphone or a tablet or a desktop, they want to know who is behind those devices, and they only want to message that person a certain number of times a day. They want to manage frequency, and in some cases they want to create a narrative. And if they can’t connect the message they gave you on your smartphone with the message on the laptop, they’re constantly starting over.”

—Jon Schulz, CMO, Viant

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Many, though not all, inhibitors will subside

Select Personalization Challenges According to Senior-Level Marketers in North America

29% - Lack of technology to execute personalization

33% - Not having enough data

30% - Inaccurate data

31% - Linking data for a single customer view

Source: Experian Marketing Services, April 2016

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A rethinking of how brands and creative agencies work together will help drive advances

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Attribution will see greater cross-device capabilities

4


Measurement is absolutely vital for a number of activities related to cross-screen advertising

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But here, the imperative for accuracy is much, much higher

“The challenge with measurement is you need to have a much higher accuracy bar. If you get a false positive in targeting, it’s wastage or money out the door. But if you get a false positive in measurement, you’re actually attributing a conversion to the wrong impression, and so you get a misleading understanding of what exactly is happening. ”

—Jonathan Lewis, Manager, Measurement and Identity Products, Facebook

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Expect to see cross-device attribution capabilities improve in the following ways:

Greater incorporation of identity graphs into existing measurement providers

Greater movement away from solely cookie-based solutions

Greater adoption of cross-platform attribution services, thanks to mobile and O2O demands

Greater convergence of traditional and digital attribution models

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Data quality will become a bigger priority

5


There are multiple levels on which data quality can be assessed

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It’s not just a transparency issue; it’s a terminology issue

“Data standardization is a major pain point for buyers of [cross-device] solutions. There is very little standardization within the industry for different terminologies such as ‘accuracy’ or ‘match rate’ or ‘active cookies.’”

—Ajit Thupil, Director, ID Graph, Oracle

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Four things marketers will consider when assessing issues of quality:

1. How segments are created

2. Ability to use one’s first-party data

3. Onboarding match rates and methodologies

4. Quantity of data vs. quality of data

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The inevitable—and growing—number of holes in the identity graph will also pose challenges

32.0% US internet users employing

an ad blocker this year

20.5% Share of iOS mobile devices

in US with “Limit Ad Tracking” feature enabled

Source: eMarketer, June 2016; adjust as cited in company blog, Oct 12, 2016

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Two Things You Won’t See in 2017

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

What is needed to fuel cross-device targeting?

A single view of the customeracross devices

A single view of the customeracross channels


Solving the Identity Challenge with Adobe Audience Manager

1. Data In 2. Logic, Organization, Segmentation 3. Data Out

POS

CRM

WEB DATA

SHOPPINGCART

Data AggregationSourced from devices and

channels, foundational

Audience CreationUnify data to profiles,

modeling, audience creation

Audience SyndicationPush segments to marketing

channels for reach/personalization

DEVICE DATA


Getting to a Single View of the Customer with the Adobe Device Co-Op

OTHERSITE.COM

Login No Login

YOURSITE.COM

No Login Login No LoginLogin Login No LoginLogin

VIEW WITH THE DEVICE

CO-OP


Impact of Getting Identity Right

Reported by 1/3 of customers

Site Conversion Rate

+26%Better Conversion

Among most customersCost Per Order

-20%Improved Efficiency

Among 1/3 of customersAverage Order Value

+50%Increased Order Size

By focusing on a single view of the customer

+3xAdditional Reach

Source: Adobe Audience Manager Customer Check-In Survey, fielded October-November 2016

Identifiable Audience


More Information

Adobe Audience Manager Websitehttp://www.adobe.com/marketing-cloud/data-management-platform.html

Adobe Device Co-Op Webinar - Jan 18th, 1pm PST https://my.adobeconnect.com/DeviceCo-Op Email Molly Felz: [email protected]

Adobe Digital Marketing Bloghttps://blogs.adobe.com/digitalmarketing

Email Me: [email protected]

http://www.adobe.com/marketing-cloud/data-management-platform.html

https://my.adobeconnect.com/DeviceCo-Op

mailto:[email protected]

https://blogs.adobe.com/digitalmarketing

mailto:[email protected]


Two Things You Won’t See in 2017


You won’t see the emergence of a universal identifier

1


Without a universal identifier, marketers face significant challenges in obtaining a single customer view

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Walled gardens and consumer privacy concerns are two significant holdups

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You won’t see marketers turning a blind eye to consumer privacy concerns

2


Brands will not want to work with companies that do not uphold consumer privacy standards

“Marketers aren’t running fast and loose with trying to reach users across devices; I think they are quite concerned.”

—Dan Taylor, Managing Director, Global Display, Google

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Potential legal ramifications are also cause for concern

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Key Takeaways

Cross-device is no longer a conversation of device identification but of audience identification

Cross-device targeting isn’t just about digital; it’s also about television and offline, in-store interactions

As targeting capabilities strengthen, improvements to ad creative—particularly the ability to sequence and frequency cap—are top of mind

Focus on data quality and the validity of data used to inform identity graphs will also strengthen in 2017

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Poll Results: How confident are you in your

cross-device targeting capabilities?


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Lauren T. Fisher

Cross-Device Targeting: What to Watch for in 2017

Cross-Device Targeting: A More Holistic Audience View and a More Compelling Customer Experience

Television Update Winter 2016-2017: The Shift in Ad Currency

Cross-Platform Video Ad Buying: Gaining Ground, but Fraught With Hurdles

Cracking Cross-Device Attribution in 2016: Data Quality, Blended Models and Merging Online-Offline Data

Television Update Fall 2016: Is the Surge in TV Ad Spending a Normal Shift or a Trend?