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Intelligent audience buying oct2011

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Intelligent audience buying oct2011

  1. 1. IntelligentAudience BuyingUsing Data to Connect the Who and Where Online
  2. 2. data sciences: taking the guesswork out of targetingThink about it. The billions of advertising impressions being served today contain a wealth of information aboutthe intersection of user, content and message. What was the product? Who was the consumer? Where did thead appear? When? How did the user react? All this exhaust from advertising placements provides a fascinatingstream of data that, if unlocked, can help marketers better understand and optimize their commercial messaging.More than context or geography or behavioral attributes alone, it is the analysis and manipulation of thisinformation trail, in combination with historical and third party provided data, which is leading to the greatestadvances in campaign evaluation, targeting and optimization. Data sciences is leading the audience buyingrevolution today, focusing on making sense of complex data analysis, audience modeling and machine learning.audience modelingWhile using data to target audiences is generally understood to be a far more efficient method of reaching adesired audience over buying sites, what many advertisers don’t realize is that the pool of available, reliableonline audience data is generally small. Collective’s own analysis illustrates how the data richest 30 percent ofimpressions have consumer attributes from several data providers, while the data poorest 30 percent have nodata at all. Therefore, sophisticated mathematical models have to be created to “fill in” the missing data onaudiences with less available, actionable data associated with them. This approach leads to greatly expandedaudience pools, with superior lifts in campaign performance. While audience segmentation and data modelingisn’t a new concept in marketing (direct marketers have been doing this for decades), the techniques that are being applied to online advertising are providing marketers with greater precision with near real-time optimization. Take the example of an advertiser trying to reach potential auto buyers. One tactic might be to identify consumers who have recently visited Kelley Blue Book, or people who have consumed a lot of auto content cars recently. Layer on demographics and household income data and you are off to the races, right? The reality is that only a fraction Data sparsity image from Collective’s Data Sciences Team illustrates of that combined audience a common myth about audience data, and the need for modeling. is likely to constitute explicit auto intenders.
  3. 3. Intelligent Audience BuyingUsing data to connect the who and where online 58%The key is to model the user. If you can identify auto buyers,particularly through 1st party data, you can look across all theirdata attributes, look for commonality and greatly expand youruniverse of potential customers. In this scenario you are lessreliant on individual data points because the model populationis modal, and that’s far more effective than trying to target a fixed of U.S. Interactive Marketingdata set. Professionals say they would increase theirprecision versus accuracy online spend if better adThe promise of real-time bidding and the sophisticateddeployment of audience data have led the path from media targeting was available.buying of content sites to the buying of audiences. Clearly, data Source: Forrester Research, 2010is key. But too often it has diverted attention from where it needsto be, which is accurately engaging the desired audience.The distinction between precision and accuracy is often lost on advertisers and agencies. In our striving forevermore precise targeting data points, accuracy is often lost and we miss the forest for the trees.Developing a broader, more complete sense of your audience is fundamental to successfully deploying datadriven audience buying. Fortunately, data analytics can provide the insights marketers need to uncover thehabits and attitudes of their online audience.At Collective, we’re developing proprietary audience segments using a methodology that provides both qualityand scale. Instead of focusing on the most active cookies, we look for an even distribution of cookies across ouraudience cloud that conforms to the data attributes we are seeking. In this way, our audience is less likely to beover-targeted and represents a more realistic portrait of the consumer.HIGH SCALE • Registration Collective Segments 90% • Context Inferred of data falls into these categories • Verified user-suppliedLOW SCALE • POS LOW QUALITY HIGH QUALITY
  4. 4. what type of audience buying data is available? Audience data comes from a variety of sources and can be loosely divided into the following categories:Audience Verification:Trust, but Verify Contextual -Many contextual segments are driven by keywords, which can be risky for advertisers since contextual targeting can sometimes present a misinterpreted meaning of a keyword.There are many data providers and We’ve all seen notorious examples of bad contextual targeting,advertising intermediaries selling for example Barry Bonds vs. Junk Bonds. Collective’s Personifi®target audiences at scale, but how semantic classification looks for the meaning of the content,do you know that you are actually rather than looking simply for keywords.getting the audience you arepaying for? Audience verificationis one of the most significant new Demographic - Used by most advertisers, this usually includesdevelopments in audience buying age, gender, income, or education. This type of data is usuallywhich helps to answer that question. gleaned from website registrations and through large offline dataJust as companies like DoubleVerify aggregators.verify that ad creative is running inthe right environment, audience Lifestyle – Based on a group of users’ likelihood to behave averification seeks to measure how certain way, this modeled data places broad sets of people intoaccurately ads are being targeted to defined segmentations, as one would see in a Neilsen Prizm seg-the desired audience. ment like “busy mom” or “health nut.”Collective is on the forefront of In-Market – This type of data reflects the lower end of the salesaudience verification, regularlyauditing our audience data against funnel as it reflects users who have searched a specific topic orknown audience panels such as have visited an In-Market vertical site, like auto or travel. Sub cat-comScore in order to measure the egories of In-Market data may include Search (based on a user’saccuracy of our targeting. Our tests search history – right down to a specific brand or model number),have shown a great disparity in the and Re-targeting, in which a visit to a webpage or exposure toaccuracy of available data from third- specific advertisement is used to infer the user’s interest.party suppliers, so both marketersand their advertising partners need Purchaser– Data that reflects ownership or consumption of ato be cognizant of their audience product. This is often used by auto marketers who aredata sources. interested in reaching people who have purchased a specific auto brand. It is also a great tool for conquesting. 20% Data Type Usage Contextual Total Source: AMP®, 2011 33% In-Market Total Demographic Total 22% Lifestyle Total Purchaser Total 12% 13%
  5. 5. Intelligent Audience BuyingUsing data to connect the who and where online 4 useful tips for audience buying 1 learn about your online audience first Sure, it sounds obvious, but we can’t tell you how many clients have come to us with definitive, inflexible definitions of their online audience. Often this audience definition was drawn from offline research or traditional media buying assumptions. But online behavior doesn’t always align with offline customer data, and the best way to learn about your true target audience is to gather real-time online performance metrics by appending advertising performance analytics with third-party consumer data. 2 it’s the “who” and the “where” It’s important to understand that the audience is modal, switching state of mind with each click of the mouse. The same mom you’re targeting when she is on a casual gaming site is in a very different state of mind than when she is looking up recipes. Matching the right person with the appropriate context is essential for brands. This is one area where ad exchanges create a potential danger for brand-conscious advertisers. For a direct response advertiser, it might be fine to reach an intender anywhere they are. But for those seeking to influence brands, the quality and type of content in which the ad sits matters. 3 intelligent creative and the magic of DCO Data can be used for far more than just audience targeting. In fact, when applied correctly, data can be a powerful tool for optimizing your advertising. You can enhance the relevance of your creative and drive better results for your brand messaging with the appli- cation of dynamic creative optimization (DCO). By setting up an ad template to dynamically self-populate with optimized creative components, including audience location, demographic and psy- chographic data, you can create custom ads and tailor them for individual customers in real-time. This is an especially great tool for retailers who can tailor the products they’re advertising in digital catalogues to precisely targeted viewers.
  6. 6. 4 don’t chase clicks Over the years there have been a number of studies that have examined the fallacy of using CTR as a measure of campaign success and the nature of the clicker’s themselves. In new analysis, Collective’s Data Sciences team examined the advertising interactions of over 100 million anonymous user profiles and over one billion advertising impressions to find that: • 99% of stable cookies examined never click on an ad • Nearly 20% of ads that received any click activity received multiple clicks within the same impression, suggesting that these clicks were unintentional • Intentional clickers are lower income consumers • Clickers demonstrate lower post impression actions and brand lift This study should serve to caution marketers that relying on CTR means being comfortable targeting low income, older, technologically less sophisticated consumers and recognize that most of the click ‘leads’ will go nowhere, as they were generated by unintentional clicks or will not result in a post impression action or brand lift.5 don’t over-target The industry’s great ability to aggregate data and narrowly focus campaigns sometimes leads to the desire for a mythical, exact audience. You know, the right-handed green-Volvo-driving, health- conscious grandmas in the market for new nutritional supplements. And we could find them. All three of them. So unless the product is extremely specific, cast a wider net. By casting a wider net, you can find broader audiences that perform -- ones that you might not know exist and that are often much more scalable. One of the mental pitfalls that search ads have created among marketers is the over-emphasis on being down the sales funnel. But we suggest that we not use display advertising to target customer who’ve basically already made up their purchase decision. Instead, create awareness and desire. By targeting the right type of users at a higher level in the funnel, you help those users make their way down the funnel, which in turn helps drive your search campaigns.
  7. 7. about collectiveCollective provides comprehensive display advertising solutions foradvertisers and publishers. Our AMP® Data and Media Managementplatform leverages the most trusted third party data, proprietary audiencemodeling and ad effectiveness metrics to simplify audience buying andselling across display, video and social media. AMP powers the adbusinesses of over 50 leading media brands, including our flagship products,Collective Display and Collective Video®. Collective is headquartered inNew York with offices in Atlanta, Boston, Chicago, Dallas, Detroit, LosAngeles, San Francisco, London and Bangalore. Collective’s investorsinclude Accel Partners®, Greycroft Partners and iNovia Capital.Visit us at collective.comcontactpress contact:Laura ColonaDirector of Communicationslcolona@collective.comsales contact:contactus@collective.com ® 99 Park Avenue, 5th Floor New York, NY 10016 888-460-9513