2. Our definition… An online advertising technology that analyzes a consumer’s past actions to determine the real-time placement of an advertising creative
5. Publishers embrace as audience extension opportunities, but sales force & agencies slow to transition Behavioral Targeting appears as a standard part of media plan Demand for more scale Networks are able to support brand advertising Behaviorally Targeted Ad networks were born MASS CONFUSION! 10 Years of Behavioral Targeting EVENT IMPLICATION Behavioral Targeting launched in the US; Yahoo and Engage are the main players 1999 Failed to move forward due to privacy, data ownership issues and tech limitations On-Site Behavioral Targeting solutions for publishers are introduced 2003 2005 2006 2008 Multiple companies claiming they offer Behavioral Targeting Audience Science
6. Key concepts… Audience segments User Interest Recency Frequency Purchasing Behavior Offline behavior
7. Segments How you ‘slice and dice’ your users Definitions derived by advertisers, your sales team, and you These are the “DNA” of Behavioral Targeting How do you describe the particular audience you’re after E.g.: People interested in purchasing a boat.
8. These are the KEY to making BT work Created by publisher Which sites and what key-value pairings How many visits/clicks qualify you Recency of activity Combined with other targeting Time of day, Declared, Frequency Capping, etc. Advertisers may (and will) ask for bespoke segments. Example: KW-TREE_HUGGERS-EXXON Behavioral Segments
9. Boat Purchasers How do you determine it? Keyword searches: Brand names; Common phrases; etc. Sites visited Recency Content interacted with Income Location Past purchases All of these can be or could be used…
10. Smart Segmenting – Top Tips Standard Segments What areas are most inventory constrained/sell out quickly What sections do you not have, but can build on such as environment/lifestyle Which audience clusters are highly demanded such as ABC1, High earners, etc Specific work place audiences, especially for non B2B sites Bespoke Segments Are highly valuable and client specific, normally built in response to agency briefs Provide ability to reach audience segments based on very niche behaviors (targeting a specific movie launch/concert event) Combining a number key elements from the standard segments Layering Solutions Combine multiple rules to expand the size of the audience, while keeping the audience segment relevant Finding the optimum balance between reach and relevance
11. Other Key Targeting Terms Declared & Inferred Inferred IP/Geo Targeting (Digital Envoy/Akamai) Physical Location (DMA/Zip) SIC/Company Type Work/Home/School Time of Day Declared Age/Sex/Occupation/etc. Why don’t these meet our definition of behavioral targeting?
12. Other Key BT Terms Re-targeting Search/Keywords Clickers on Ad Creative Clickers on Site Content Views of Site Content Predictive Uses offline surveys and data Purchase Intent
13. Sample BT Campaigns A Direct Campaign A Brand Campaign Car Loan People who have visited car review sites In the last 14 days At least twice Who are prone to online purchasing Ford F150 Truck Men who visit sports or “lads” sites In the last 42 days At least 5 times Who make more than $50k
16. The “Funnel” Users, people browsing People who may be interested in your product Consumers looking for a purchase, researching Traditional Media Planning Ready to buy Purchasing
17. The “Funnel” Users, people browsing People who may be interested in your product Consumers looking for a purchase, researching With BT Ready to buy Purchasing
19. Why marketers are exciteda case in point Assume: Item Costs $20.00 on client’s site Acquisition (post-click) rate is 5% Scenario 1: A Traditional Buy 10M Untargeted Impressions @ $0.50 CPM ($5,000) CTR of %0.1 10,000 Clicks 500 purchases $10,000 in Sales or a 100% ROI Scenario 2: A Targeted Buy 5M Targeted Impressions @ $1.50 CPM ($7,500) CTR of %1.5 75,000 Clicks 3,750 purchases $67,500 in Sales or an 800% ROI
32. Two Big Wins Create “demand smoothing” across properties Begin to raise CPM on traditionally undersold areas
33. An agency use case Mine the Gold, not the Ore Old School: Media planner says “Where do I buy to get High earning males 18 – 34 in major urban areas” Channels
34. An agency use case Mine the Gold, not the Ore New School: Media planner says “I want to buy high earning males 18 – 34 in major urban areas” Buying PEOPLE* not channels *Browsers
35. Other practical uses Why is BT so hot right now? Growth of user generated pages Leveraging ad networks Reaching toward the promise The “long tail” Speak the language of planners
38. How it works User visits a site Site B (e-mail) Site A (finance)
39. How it works JavaScript on Site ...DM_addToLoc("Site",escape("Telegraph")); DM_addToLoc("Level1",escape("money")); DM_addToLoc("Level2",escape("city_news")); DM_addToLoc("Level3",escape("industry_sectors”… Cookie On user (UserID) E06560_10189
48. BT Champion Sales Team BT Vendor(s) Ad Server Vendor Ops Team (Ultimate) Behavioral Champion
49. Creating Segments Examine high-sell through inventory on site Create segments based on these sections Audience segments you have that don’t directly tie to any specific site content Golf fans or Environment Psychographic Sections “Silver Surfers” High Earners Recent Grads
50. Creating Segments Use bespoke segmentations carefully Never create a NEW segment when an existing one will do (clutter, confusion) Devise and evangelize CLEAR and CONSISTENT naming conventions KW-SILVER_SURFERS_J&J Not “johnson and johnson Q2 old campaign with search” Regularly scrub your segments!
51. Managing Segments Use an existing segment instead of creating duplicates when possible Name segments so they are easy to find Run periodic reports showing segments that haven’t been targeted within a given time frame (e.g. 6 months) Set standards for how big a segment should be before it makes the list of standard segments Set a threshold and force attrition when reached
52. A Note on Segments… As it is up to each publisher to create their own segment definitions they will vary site to site… This could cause issues for agency planners and advertisers down the road
54. Inventory Forecasting Ensure you use wide enough segments The narrower the segment the more volatile your predictions Give bespoke segments time to “fill up” They won’t have any history when you first build them. Give them time before you commit to numbers If possible sell users not impressions Beware of overlaps – your ad system/forecasting system might not be
56. Pitfalls! Inventory Overlap = + Combining two segments in an inventory forecast will never give you the sum of both segments! There is almost always SOME overlap.
57. A quick note on pricing Different Philosophies Targeted inventory = Segment Property Targeted inventory = Premium on delivered property Targeted inventory price calculated by supply and demand Sports Channel CPM = $15 Sell a segment of sports users for +/- $15 regardless where it runs 1
58. A quick note in pricing Different Philosophies Targeted inventory = Segment Property Targeted inventory = Premium on delivered property Targeted inventory price calculated by supply and demand ROS Sells for = $1 Sell a segment of sports users on ROS for $2.50 2
59. A quick note in pricing Different Philosophies Targeted inventory = Segment Property Targeted inventory = Premium on delivered property Targeted inventory price calculated by supply and demand Each segment’s price is dynamically calculated using a pricing system 3
60. System Integration There is not a lot of integration between the 3rd party offerings and Inventory Platforms Order Management Systems Billing Systems You or your champion should work to determine workflow within your organization
61. Some Implementation Top Tips Get your tech team involved from the beginning (ad tags/CMS/structure) Involve your sales team in implementation Go to market with a pre-defined list of segments The most obvious initial segments will be those that extend your high-demand/high sell through inventory
62. Other Top Tips Ensure you always update your site metadata when new area launch Ensure consistency between key value pairings and segments across the site Be sure to enter at least the top 20% segments in your inventory DB Never look at BT on its own but as part of a holistic ad system It is NOT a silver bullet
63. In summary… Marketers are excited as BT can help fullfill the original promise of online It represents a true NEW way of advertising Growth is predicted to be HUGE Vendors are responding to this expect more and expect consolidation The technology itself is not super hard Managing it within your organization can be tricky
64. In summary… Have a Champion Be smart about your segments Be aware of inventory issues Involve all areas of your organization BT is NOT an island