Addressable display advertising

The next revolution in
multi-channel marketing?
Briefing Paper
Addressable Display Advertising
Briefing Paper by Paul Kennedy at Callcredit Marketing Solutions

// Briefing Paper// 01 // www.callcredit.co.uk
Paul has been working in the marketing
industry for 15 years+. Since joining Callcredit
in 2006, he has been instrumental in
developing Callcredit’s planning, digital and
social marketing capabilities and delivering
it with clients across a number of sectors
including leisure, media, retail, financial
services and utilities.
Paul is a frequent speaker within the industry
and has published a number of white papers
recently covering social and digital marketing.
Ideas
Vision
SuccessDevelopment
Pragmatic

© 2013 Callcredit Information Group Ltd. All rights reserved
// www.callcredit.co.uk // Briefing Paper // 02

The range of media by which consumers
can be addressed directly has gradually
evolved over recent years. The latest
arrival – addressable display advertising –
is possibly the most revolutionary of all.
• What new audience targeting options
are now available?
• What are the implications for
influencing mixed mode channel
switching behaviours by tracking
behaviours across channels?
This paper looks at opportunities now
created for brands in the UK.
Most companies are attempting an
integrated approach to marketing across
owned websites, email, paid advertising,
SEO and social, with email and web being
the easiest and therefore most commonly
integrated channels. The recent arrival of
audience targeting technologies such as
real time bidding platforms means that
significant new opportunities are available
for marketers to boost the performance
of existing marketing campaigns by
adding a new direct channel – display
advertising.
Over the last 20 years we have seen
a steady proliferation of marketing
channels. The introduction of this latest
one is not the end but rather a sign
of things to come digitally. This paper
considers a planning approach that can be
used to create multi-channel campaigns
– now or in the future. The recognition
of data’s role in marketing is now firmly
established (some1
even describe it as “…
the Sexiest Job of the 21st Century…”)
so the addition of another data driven
channel into the marketing mix is good
news for marketers.
Whilst the opportunity to use data to drive
better multi-channel marketing is clearly
there, Callcredit research has shown that
only a minority of respondents describe
their marketing as integrated across
channels. Equally, Econsultancy research
found that over two thirds of clients have
only an ‘okay’ or ‘poor’ understanding
about the potential of digital channels
(email, search, social media, etc.) to help
grow their business. To make matters
worse, channel budgets are often held as
separate entities, eg one person owning
the display budget and another email.
Addressable Display Advertising:
The next revolution in multi-channel marketing?
Request the White Paper -
Coordinating Customer Channels:
http://www.callcredit.co.uk/coordinating-
customer-channels

The audience targeting industry has
quickly evolved
Display advertising first enjoyed success
during the late 1990s at the height of
the dot com boom. Along came keyword
based advertising and by 2005, focus
shifted from display to PPC, which
marketers felt gave control over where
ads were displayed. The emergence of the
Ad exchange over the following five years
was a sign that display was reinventing
itself by giving advertisers better access
to advertising inventory. Over the
following years, some of these exchanges
(such as Turn and Google’s Doubleclick
Ad Exchange and the later purchase of
InviteMedia also by Google) evolved into
‘demand side platforms’ (DSPs) giving
brands the ability to target messages to
specific audiences.

In the last couple of years we have seen
the emergence of a cottage industry of
intermediaries across the advertiser-
consumer value chain: a far cry from the
simple advertiser-ad exchange-publisher
model. The result of this is that a
complicated array of moving parts have to
work in close unison to deliver marketing
messages to consumers.
To further complicate matters, we are
now seeing the emergence of private
exchanges (such as eBay’s UK exchange2
and Facebook Ad Exchange) as major
publishers attempt to take back some
of the control from advertisers, allowing
only specified advertisers to purchase
inventory using pricing structures
depending on the advertiser in return for
known quality, brand safe environments.
Traditionally, display advertising could only
be targeted using high level consumer
segments. Whilst context and behavioural
targeting techniques have a role to play
(eg for retargeting unconverted site
visitors), the emergence of Real Time
Bidding (RTB) and Data Management
Platforms (DMP) now offer marketers a
chance to implement audience-based
marketing programs i.e. to whom. Opaque
and sluggish ad networks are being
replaced with programmatic enabled
media buying that includes transparent,
real-time biddable media and precision
audience targeting.
These techniques are really catching on;
according to Forrester, impressions, will
shift toward programmatic exchange-
based trading at a rate of 43% annually
between 2012 and 2017, comprising
30% of total display spending by 2017.
Many attribute this to high conversation
rates, competitive pricing and ease
of incorporation into multi-channel
campaigns. We’re already seeing some
surprising trends. Just look at what
happened3
on the last Black Friday in
the USA - spend on ‘Real Time Bidding’
advertising (ads bought and served on the
fly) was driven not by online retailers but
rather by brands looking to drive bricks
and mortar awareness. Impressions were
commanding four bids per ad compared to
a comparable average of about half that.
Everyone wanted the right audience at
that exact time to maximise the number
transacting on the target day.
RTB technology allows
the publisher to decide
which ad to serve to any
user. Advertisers bid for
impressions and the highest
bidder gets the placement.
Advertisers decide which
users to buy using targeting
data – such as the Premium
data available from
Callcredit/VisualDNA - built
on behavioural, inferred, self
claimed and real world data.

// Briefing Paper// 07 // www.callcredit.co.uk// Briefing Paper// 07 // www.callcredit.co.uk
New opportunities for finding
customers have become available
Using targeting data in online marketing
is nothing short of a game changer.
The benefits of segmentation are well
understood in the offline world but till now
have not really touched digital advertising.
The very rapid growth of real time bidding
now offers interactive marketers a chance
to implement audience based marketing:
they can identify the audience they are
about to serve an ad to before it is bought.
Callcredit has recognised this and created
a new service to deliver this for clients.
Addressable marketing identifies individuals
and delivers messages to them based on
their individual characteristics. For example,
it would be inappropriate to display adverts
for a credit based product to someone who
is unlikely to be accepted for the product by
the lender – our new generation of display
advertising can address such issues.
This new multi-channel advertising
ecosystem allows a sophisticated mix of
cost effective messaging across digital
channels designed to maximise conversions.
A contact strategy can be created to
orchestrate customer engagements
to enable brand experiences that are
consistent yet customisable across
channels – see below example use cases.
Marketing Service Providers (MSPs) such
as Callcredit who have a long history in
creating, managing and modelling
consumer datasets in the offline space
are now offering clients the same valuable
targeting capabilities online. By partnering
with appropriate technology platforms
they can plug in to the online ecosystem
and provide an end to end solution. Many
clients are choosing to work with MSPs
rather than having to build additional
relationships with a fragmented range of
independent platforms and suppliers.
General audiences
Non guaranteed media
Fixed prices for all users
Precision targeting
Real time biddable supply
Competitive prices
Addressable Display AdvertisingTraditional Display Advertising

We know:
Female, 35,
low credit risk,
high affluence
Result:
they get an ad
served based on
their individual data
Person A browses the internet Person B browses the internet
Person A then goes to Facebook
We know
Male, 25,
med credit risk,
low affluence
Callcredit’s Personalised Digital Advertising Platform
Client targeting criteria / model
Result:
they get an ad
served based on
We know:
Female, 35,
low credit risk,
high affluence
Person A receives an email from BRAND
We know
Female, 35,
low credit risk,
high affluence
Callcredit’s Personalised Digital Advertising Platform
Result:
they get an ad
served based on
Person A and Person B get a different advert as a result
of their different demographic attributes
Person A receives an email from the brand and when they next
log on to Facebook they see the same advert from the brand

So what can be done targeting wise? Well
pretty much most things you would expect
offline – and a bit more. Online data is only
part of the jigsaw – the variables traditionally
available to target display advertising are
limited to context, some online behaviours
or very limited attributes. What really
makes data driven marketing interesting
is the ability to combine offline data with
other characteristics gathered online then
generate the advertising with other direct
marketing channels such as email, mobile
or social. So now you can buy audiences
wherever they pop up on the internet rather
than buying particular ‘slots’ and hope the
right people turn up. The use of third party
data within this process allows brands to
better reach target audiences who may be
in play for particular products or services.
Marketers can now create campaigns
and ongoing programmes with prospect
to customer journeys mapped out across
addressable display, email, and owned
websites as well as even post or phone.
Callcredit has created a number of multi-
channel templates which can be configured
for specific verticals and propositions.
Callcredit and VisualDNA
has built the UK’s largest
universe of online targeting
data of its kind which
is built around offline
variables including over
50 of Callcredit’s most
predictive characteristics
which have been used
by blue chip brands
for many years. It also
includes self-claimed data,
behavioural and inferred
traits and attributes. We
have the UK’s largest pool
of digital channel enabled
consumers.
Media planning
Focus on context
Many single channels
Audience planning
Focus on individual
Coordinated channels
Addressable Display AdvertisingTraditional Display Advertising

// Briefing Paper// 11 // www.callcredit.co.uk// Briefing Paper // www.callcredit.co.uk
Whilst display advertising has relatively low
click through rates, it allows us to quickly
reach large audiences. Email and SMS has
the advantage of higher open and click
through rates (One source quotes SMS open
rates as being more than 99%). Callcredit
has access to over 24m marketable email
addresses and 15m mobile numbers which
can be used as part of an addressable
display campaign.
Even though the unit costs for email and
display are low, they are not always the most
effective choice in isolation, direct mail can
be 10 to 30 times more effective according
to Adage.com4
.
Traditional channels such as mail and phone
show the highest response rates, yet online
channels attract a greater percentage of
marketing pounds because they generate a
far better return on investment. The answer
to this lies in finding the right combination of
techniques for each offering, customer type
and brand and whether we’re talking about
acquisition or existing customer marketing.
So, what targeting data is available for your
use? It takes into account both rational/
fact based as well as emotional responses
to optimise the engagement with the
consumer by the brand across the decision
journey. This can be enacted across one
or a number of channels and can relate
either to acquisition of new customers or
engagement with existing ones.
This table summarises the strengths and weaknesses of many of the main channels
and as such will have a bearing on what is right for any specific campaign.
CHANNEL STRENGTH WEAKNESS
Organic search • Timely
• Low cost
• At the mercy of search engine algorithm
• Takes time to build strength
Paid search • Timely
• Low unit cost
• Can build traffic quickly
• Requires ongoing optimisation
• Can attract organic (free) clicks
• Competitive categories are costly
Display non-RTB • Wide range of formats
• Many networks
• Low click through rates
• Costs fixed regardless of audience
• Limited targeting
Display RTB • Timely
• Flexible costs for audiences
• Can target using offline / real data / models
• New therefore not widely used yet
• Requires more consideration for audience
selection and targeting data
Facebook Exchange* (FBX) • Access to highly engaged audience
• Good UK reach for response ads
• Can use offline data to target
• Low click through rates
• Restricted commercial terms
Social posts/ pages • Viral characteristics
• High user engagement possible
• Posts can be demoted by social
network algorithms
Email • Highly targetable
• Customisable content
• Can buy email contacts
• Medium open rates
• Deliverability issues
SMS • High open rates
• Highly targetable
• Use of location
• Restricted format
• Limited ability to share
Traditional channels such
as mail and phone show
the highest response rates,
yet online channels attract
a greater percentage of
marketing pounds because
they generate a far better
return on investment.

nGauge
Affordability Risk
Demographics
Financial
Variables
Property
Variables
People in
Play Lead
Generation
Transactional
Geo-Demographic Targeting
CAMEO
Targeting Segments built using
offline sourced data
Finance Types, Household Income,
Household Lifestyle
LifestyleInterests
Opinions Emotions
Attitude
Motivations
Goals
Brand
Preferences
Purchase
Intent
Targeting Segments built using
online sourced data
450 groups created speciﬁcally for ad targeting
DESIRED
ACTION
TAKEN BY
CONSUMER
AWARENESS
BUYING
RESEARCH
COMPARISON

Make sure your contact strategy
is planned to include the right
combination of channels
With so many direct channels now
available, how should you choose the right
combination to hit your objectives? The
process for creating a multi-channel
campaign including addressable media is
not that dramatically different to that
which might be used for digital or
traditional campaigns in isolation. The
following diagram highlights some of the
key steps you might consider.
Our partnership with VisualDNA allows
us to enhance our consumer data with
additional emotive and personality-based
segments. These additional data points
allow us to provide superior targeting
capabilities and therefore deliver better
performance for brand and response
campaigns and best in class audience
insight.
Callcredit incorporating Latitude can cut
through the complexity of all of these
channels for clients. We are unique
amongst agencies – having media agency,
trading desk, planning and display
capabilities as well as being a primary
data owner. Our trading desk has access
to a wide range of Callcredit, VisualDNA
and other third party data and our multi-
channel planning team has the experience
to help you design and execute high
performing marketing campaigns.
1-Understanding
buying behaviours
and defining audiences
2-Designing the campaign 3-Building the campaign,
channel by channel
Organic
Search
“… I need to find a better
insurance policy….”
CONSUMER
PLANNER
PRODUCT
SPECIALIST
PLANNER
SEO
SPECIALIST
EMAIL
DESIGNER
DISPLAY
SPECIALIST
Keywords
Profiles
Direct
Referral
Paid Search
Social (100 more pages)
8.55k
/contact-us
/contact-us-
enquiries
/products
/products
/consumer-s...
4-Deployment and
evaluation
How do audiences
research and buy our
service? What journeys are
taken by customers? What
customer data and insight
sources are available?
Which offers are right for
each audience? What
sequences of channel
interactions do we want to
suggest? How much reach
do we need to achieve and
what budget will be
required?
What creative elements
will be needed? Do I have
all of the data attributes I
need to implement
selection criteria? What
data gaps do I need to fill?
Who will build the
campaign – in house or
outsourced?
What testing do I need to
put in place?
What measures should I
focus on and what will
reporting look like? What
tracking do I need to put in
place?

1
http://hbr.org/2012/10/data-scientist-the-sexiest-job-of-the-21st-century/ar/1
2
http://mandmglobal.com/news/06-09-12/ebay-launches-private-ad-exchange-in-uk.aspx
3
http://www.adweek.com/news/technology/black-friday-drives-rtb-funnel-145532
4
http://adage.com/article/media/dma-snail-mail-phone-beat-digital-response-rates/235364/
Callcredit Information Group
Helping you make Smarter Decisions
To find out more about Callcredit’s Marketing Solutions
email info@callcreditmarketing.com call 0845 60 60 609
or visit www.callcredit.co.uk
About Callcredit Information Group
Callcredit Information Group has a leading edge approach to using consumer information
in credit referencing, marketing services, interactive solutions and consultative analytics.
This enables our clients to cost-effectively identify, engage and convert more new
customers and optimise existing customer revenues.
Callcredit Marketing Solutions can help develop an integrated channel strategy with
the following services:
• Appending emails, mobile numbers and landlines to terrestrial data
• Reverse matching of email addresses
• Profiling of online enquirers and customers
• Finding e-lookalikes
• Helping to build engagement with invisible offline customers
• Joining online intents and behaviours with offline data and activities
• Presenting unified content, including offers and messages to customers based on all
channel interactions

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