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iStrategy - Display Targeted
Presented by : Rob Watt, Razorfish
Intro: Where’s my jet pack
Slide 1: Where’s my jetpack?
15 years ago in their seminal work Don Peppers and Martha Rogers promised us a 1-2-1 future. So
where is it?
You’d have to look pretty hard to find any company serious about embracing 1-2-1 marketing
beyond implementing loyalty programmes, inserting someone’s name in an email or profile-based
aggregated recommendations and it’s all targeted towards it’s existing customer base and we all
know that customer relationships begin well before a purchase is made.
We’ve made great technological advances in the digital era so why do we continue to rely on the old
one-to-many mass marketing approach when it comes to reaching new customers?
Mainly because of the resource required. Broadcast media, whilst inefficient a from a performance
standpoint is hugely efficient from a resource standpoint, a media buyer can buy £20m of TV using
his phone. One-to-one marketing, however, has required more time and people to implement.
Fortunately, things are changing. Razorfish believes there is a new and compelling opportunity to
create one-to one personalized messaging that can be aimed at the mass of consumers that are
further up the purchase funnel, in the awareness and consideration stages.
Slide 2 – DM on steroids
Increasingly, marketers can access and aggregate massive amounts of data across multiple media
sources, and use it to build a smart, behaviour-based “personalization engine” which can
dynamically serve ads to millions of prospects every day.
What’s “personalized” in this model is not just the person’s first name but the content of the
message itself — the products, the offers, the calls to action — all based on what is most relevant to
the user.
Because each ad is tailor-made for the user at the point of impression, a uniquely relevant message
is delivered every time. Now, one-to-one marketing can be done on a mass scale because there are
efficiencies in both technology and resources.
--------------------------------------------------------------------------------------------------------------------------------------
Slide 3 – Use only what you need
The business case for this approach breaks down into 3 key KPIs
• Decreased media wastage as we’ll only buy impressions that we want
• Increased conversions / sales
• Increased brand saliency as you are only serving them relevant messages and offers
--------------------------------------------------------------------------------------------------------------------------------------
When I started planning online advertising campaigns in 1997 I thought we were going to be on
track.
, it was all very simple. It was a DR dream, it was pretty easy to run a successful campaign that drove
sales at a significantly better ROI than other channels just by a “spray & pray” scattergun display
approach.
All was good for 5/6 years through the dot com boom and bust, then things started to get a bit more
complicated…
Three key inter-related things happened after the crash that had a significant impact that had a
significant impact on the effectiveness of online advertising
What were they?
1) Increased penetration of BB, enhancing the user experience
2) Consumers started using the web less as a functional tool, and more of an entertainment
channel
3) Renewed client confidence meant that Brand advertising / experiences became common
-place
Clicks started declining, ROI decreased, CPAs increased – in essence the unsophisticated scattergun
volume approach became significantly less successful.
Effectiveness for advertisers became a real issue for advertisers and publishers, and so the need to
better target became critical.
--------------------------------------------------------------------------------------------------------------------------------------
So where are we now?
Slide 4: Travel
Going to use Travel sector as the example through the rest of this presentation
--------------------------------------------------------------------------------------------------------------------------------------
Slide 5: Targeting
Shows the most prevelent targeting techniques used on the web – most of which are straight-
forward, which is just as well as we don’t have the time to go into them all.
Behavioural – what they do
Context – what they are looking at
Demographics – who they are
Attitudinal data – what they think
Geographic – where they are
Social – who the’re connected to
Time – when they are available to reach
Interests – what they’re interests are (most interesting part of iAd targeting)
The scope I was given was B,C and S so feel that I ought to cover those ones off. You’ll notice I
haven’t included Semantic, namely because I think it’s actually a filter not a targeting technique. I’ll
show you what I mean, but let’s start with contextual
--------------------------------------------------------------------------------------------------------------------------------------
Slide 6: Egypt
Why is this ad here?
There are 3 potential answers;
1. Just blind luck. Bought with no audience or contextual targeting and just happened to luck
out that the it was served onto had some relevance to the message
2. It’s targeted to me based upon my previous behaviour and the page it’s on may or may not
have been part of that buy, could just be luck. We’ll come back to this
3. It’s appeared because the page I’m looking at is deemed to be relevant to the ad message
i.e. have context.
Look at this ad is it relevant? It may or may not be, that sort of depends on me.
Contextual advertising placements are really a stab in the dark, a best guess to determine customer
intent based upon matching context of the media surrounding the ad.
It’s not new, media has been bought like this for a long time…
Much like a TV programme buy, press editorial buys or outdoor i.e. washroom advertising
Most of digital advertising budget is spent this way – and the biggest publisher is Google
It’s Google, and I’m not just referring to their Ad Sense product (another area where a
Semantic filter could be useful).
PPC / Ad Words is contextual advertising in it’s rawest form.
Can also be triggered by the user who roles over underlined words within the ad copy (Vibrant)
There are several obvious risks with this approach;
Slide 7, 8, 9 & 10
With a single data set (keyword) it’s possible to be very wrong….
Slide 11: Yahoo
Offline as well
Slide 12: Your ad here
It’s not difficult to imagine how this could go wrong for us.
Semantic targeting can help. Instead of scanning a page for bidded keywords, a semantic system
examines all the words and identifies the senses of those words. Because most words are
polysemous, i.e. have more than one meaning, without having an understanding of the true context
in which words occur, it is possible to incorrectly assign an advertisement where there is no
contextual link.
I call it a filter as it is something that advertisers and publishers should be overlaying on top of each
buy to minimise wastage and increase effectiveness by identifying the sentiment of the content as
well as providing some measure of brand protection.
_________________________________________________________________________________
Slide 13: Mail Repeat
So, a Semantic filter will give you some level of brand protectionism, but the real issue with this
simple-level of targeting is the inherent wastage in the buy.
In this scenario you pay to deliver an ad based on a relatively low understanding of the customer
beyond that they are looking at a page that includes a keyword that we deem to be relevant.
Simply – how do you know whether I’m a history buff (in which case your impressions is very much
wasted) or interested in Egypt as a holiday destination in which case your impression MIGHT be
relevant.
MIGHT is a wasteful word. Suppose I am interested in Egypt as a holiday destination….
_________________________________________________________________________________
But, is it for me, am I male or female, how old am I, where do I live (where might I fly from), am I well
off, am I single, do I have a family, am I getting married, do I like sports, am I a culture vulture, how
serious am I about Egypt, when am I thinking of going?
You don’t know these things, so you hit and hope, with a price-led offer (which is all you can do). we
broadcast and we get it right about 0.1% of the time.
That’s a lot of wastage. Every buy has inherently so much wastage that a significant proportion of
the agencies’ effort (and cost) is spent trying to react to patterns displayed by the campaign
prospects and optimising the remaining media to most attractive data profile of their behaviour with
our campaign.
The horse has already bolted and we haven’t learned anything beyond they either did or didn’t click
on our ads and buy.
_________________________________________________________________________________
Slide 14: Profiles
But what if you did have a reasonable idea about the answer to those questions?
Would you serve the same offer to
A young, single, male from the Manchester area who’s a huge football fan both, live and on the X-
box, and has been looking for cheap last-minute holidays
AND a London Mum, who loves spas and scuba diving and is looking for family hotel in Jan
This is the real promise of Behavioural Targeting
_________________________________________________________________________________
Slide 15: Baby Come Back
To date, the vast majority of BT has been focused to retargeting previous site visitors (Browsers,
Lookers and Bookers).
It works to a point- but beyond which media the clicked through on and the pages visited we still
don’t know much about them.
The vast majority of an agency’s time (and their for their fee) is spent trying to fix this problem once
the campaign is live, reacting to random conversions and trying to optimise on a limited number of
data sets.
This is the wrong way around. Time should be better spent on analysing the customer before the ad
is even served, and then serving the most relevant ad to that individual against three main criteria…
_________________________________________________________________________________
Slide 16: III
Interest – what have they done to make us think that we have something that will suit them. Profile
stuff on likes and dislikes, hobbies, interests, age, location, gender etc….What searches have they
undertaken, what sites did they visit. This is a GENERAL VIEW
Intent – why do we think they are in market – recent web searches, visited other travel sites.
SPECIFIC VIEW
Instances – what’s the recency of this information, what’s the user’s frequency of usage is 1 relevant
search in the last 3 months any indication of any intent?
Then work with technology and publishing partners to define/collect the cookie characteristics and
the data sets that will inform the ad server
Firms like AS are already starting to do this at a broad level.
_________________________________________________________________________________
Slide 17: Personalisation Engine
If the desire is to move towards a significantly more personalised delivery of online advertising that
brings all the component parts together, using multiple data sets.
The adoption of one-to-one marketing, as mentioned before, tends to start with the existing
customer base, but the real impact will begin when a robust, data-agnostic personalization platform
is established and used to drive relevant advertising to new prospects.
Data aggregation – from a variety of sources (that I’ll go into), and will need to leverage Cloud
computing to keep profiles fresh
Decision engine – makes sense of the data offering an intelligent recommendation on what to serve
Creative development – as you are already doing ads are modular, using existing assets with the
focus on relevancy
Media targeting and dynamic ad serving – does exactly what it says on the tin
Marketing channel- further relevancy.
Remember is works across the entire funnel – both pre and post-purchase and therefore effectively
becomes part of a CRM programme.
______________________________________________________________________________
Slide 18: Marketing Engagement Landscape
In our experience running personalized online ad campaigns, we’ve seen ROI that is typically 5 to 10
times that of a standard, broad-reach campaign. When used in conjunction with more traditional
top-of-the-funnel activities, the lift is maximized across an even larger base. While that’s impressive,
it will only get better as other media channels come on board.
Today, online is the only media channel that can do this; it will expand to others, such as TV, as they
become interactive, and therefore, addressable.
The logical conclusion is that one day most advertising will in some way be customized. That will be
great news for advertisers, who are always looking for better ROI, and consumers, who
increasingly want advertising on their own terms.
______________________________________________________________________________
Slide 19: AS Periodic Table
I wanna do that – how do I get started?
Luckily, companies like AS have begun the process for you
______________________________________________________________________________
Slide 20: But it starts with planning
Slide 21: End

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Behavioural Contextual and Semantic Targeting - Presentation Details | Rob Watt, Razorfish | iStrategy, London

  • 1. iStrategy - Display Targeted Presented by : Rob Watt, Razorfish Intro: Where’s my jet pack Slide 1: Where’s my jetpack? 15 years ago in their seminal work Don Peppers and Martha Rogers promised us a 1-2-1 future. So where is it? You’d have to look pretty hard to find any company serious about embracing 1-2-1 marketing beyond implementing loyalty programmes, inserting someone’s name in an email or profile-based aggregated recommendations and it’s all targeted towards it’s existing customer base and we all know that customer relationships begin well before a purchase is made. We’ve made great technological advances in the digital era so why do we continue to rely on the old one-to-many mass marketing approach when it comes to reaching new customers? Mainly because of the resource required. Broadcast media, whilst inefficient a from a performance standpoint is hugely efficient from a resource standpoint, a media buyer can buy £20m of TV using his phone. One-to-one marketing, however, has required more time and people to implement. Fortunately, things are changing. Razorfish believes there is a new and compelling opportunity to create one-to one personalized messaging that can be aimed at the mass of consumers that are further up the purchase funnel, in the awareness and consideration stages. Slide 2 – DM on steroids Increasingly, marketers can access and aggregate massive amounts of data across multiple media sources, and use it to build a smart, behaviour-based “personalization engine” which can dynamically serve ads to millions of prospects every day. What’s “personalized” in this model is not just the person’s first name but the content of the message itself — the products, the offers, the calls to action — all based on what is most relevant to the user. Because each ad is tailor-made for the user at the point of impression, a uniquely relevant message is delivered every time. Now, one-to-one marketing can be done on a mass scale because there are efficiencies in both technology and resources. -------------------------------------------------------------------------------------------------------------------------------------- Slide 3 – Use only what you need The business case for this approach breaks down into 3 key KPIs • Decreased media wastage as we’ll only buy impressions that we want • Increased conversions / sales
  • 2. • Increased brand saliency as you are only serving them relevant messages and offers -------------------------------------------------------------------------------------------------------------------------------------- When I started planning online advertising campaigns in 1997 I thought we were going to be on track. , it was all very simple. It was a DR dream, it was pretty easy to run a successful campaign that drove sales at a significantly better ROI than other channels just by a “spray & pray” scattergun display approach. All was good for 5/6 years through the dot com boom and bust, then things started to get a bit more complicated… Three key inter-related things happened after the crash that had a significant impact that had a significant impact on the effectiveness of online advertising What were they? 1) Increased penetration of BB, enhancing the user experience 2) Consumers started using the web less as a functional tool, and more of an entertainment channel 3) Renewed client confidence meant that Brand advertising / experiences became common -place Clicks started declining, ROI decreased, CPAs increased – in essence the unsophisticated scattergun volume approach became significantly less successful. Effectiveness for advertisers became a real issue for advertisers and publishers, and so the need to better target became critical. -------------------------------------------------------------------------------------------------------------------------------------- So where are we now? Slide 4: Travel Going to use Travel sector as the example through the rest of this presentation -------------------------------------------------------------------------------------------------------------------------------------- Slide 5: Targeting Shows the most prevelent targeting techniques used on the web – most of which are straight- forward, which is just as well as we don’t have the time to go into them all. Behavioural – what they do Context – what they are looking at
  • 3. Demographics – who they are Attitudinal data – what they think Geographic – where they are Social – who the’re connected to Time – when they are available to reach Interests – what they’re interests are (most interesting part of iAd targeting) The scope I was given was B,C and S so feel that I ought to cover those ones off. You’ll notice I haven’t included Semantic, namely because I think it’s actually a filter not a targeting technique. I’ll show you what I mean, but let’s start with contextual -------------------------------------------------------------------------------------------------------------------------------------- Slide 6: Egypt Why is this ad here? There are 3 potential answers; 1. Just blind luck. Bought with no audience or contextual targeting and just happened to luck out that the it was served onto had some relevance to the message 2. It’s targeted to me based upon my previous behaviour and the page it’s on may or may not have been part of that buy, could just be luck. We’ll come back to this 3. It’s appeared because the page I’m looking at is deemed to be relevant to the ad message i.e. have context. Look at this ad is it relevant? It may or may not be, that sort of depends on me. Contextual advertising placements are really a stab in the dark, a best guess to determine customer intent based upon matching context of the media surrounding the ad. It’s not new, media has been bought like this for a long time… Much like a TV programme buy, press editorial buys or outdoor i.e. washroom advertising Most of digital advertising budget is spent this way – and the biggest publisher is Google It’s Google, and I’m not just referring to their Ad Sense product (another area where a Semantic filter could be useful). PPC / Ad Words is contextual advertising in it’s rawest form. Can also be triggered by the user who roles over underlined words within the ad copy (Vibrant)
  • 4. There are several obvious risks with this approach; Slide 7, 8, 9 & 10 With a single data set (keyword) it’s possible to be very wrong…. Slide 11: Yahoo Offline as well Slide 12: Your ad here It’s not difficult to imagine how this could go wrong for us. Semantic targeting can help. Instead of scanning a page for bidded keywords, a semantic system examines all the words and identifies the senses of those words. Because most words are polysemous, i.e. have more than one meaning, without having an understanding of the true context in which words occur, it is possible to incorrectly assign an advertisement where there is no contextual link. I call it a filter as it is something that advertisers and publishers should be overlaying on top of each buy to minimise wastage and increase effectiveness by identifying the sentiment of the content as well as providing some measure of brand protection. _________________________________________________________________________________ Slide 13: Mail Repeat So, a Semantic filter will give you some level of brand protectionism, but the real issue with this simple-level of targeting is the inherent wastage in the buy. In this scenario you pay to deliver an ad based on a relatively low understanding of the customer beyond that they are looking at a page that includes a keyword that we deem to be relevant. Simply – how do you know whether I’m a history buff (in which case your impressions is very much wasted) or interested in Egypt as a holiday destination in which case your impression MIGHT be relevant. MIGHT is a wasteful word. Suppose I am interested in Egypt as a holiday destination…. _________________________________________________________________________________ But, is it for me, am I male or female, how old am I, where do I live (where might I fly from), am I well off, am I single, do I have a family, am I getting married, do I like sports, am I a culture vulture, how serious am I about Egypt, when am I thinking of going?
  • 5. You don’t know these things, so you hit and hope, with a price-led offer (which is all you can do). we broadcast and we get it right about 0.1% of the time. That’s a lot of wastage. Every buy has inherently so much wastage that a significant proportion of the agencies’ effort (and cost) is spent trying to react to patterns displayed by the campaign prospects and optimising the remaining media to most attractive data profile of their behaviour with our campaign. The horse has already bolted and we haven’t learned anything beyond they either did or didn’t click on our ads and buy. _________________________________________________________________________________ Slide 14: Profiles But what if you did have a reasonable idea about the answer to those questions? Would you serve the same offer to A young, single, male from the Manchester area who’s a huge football fan both, live and on the X- box, and has been looking for cheap last-minute holidays AND a London Mum, who loves spas and scuba diving and is looking for family hotel in Jan This is the real promise of Behavioural Targeting _________________________________________________________________________________ Slide 15: Baby Come Back To date, the vast majority of BT has been focused to retargeting previous site visitors (Browsers, Lookers and Bookers). It works to a point- but beyond which media the clicked through on and the pages visited we still don’t know much about them. The vast majority of an agency’s time (and their for their fee) is spent trying to fix this problem once the campaign is live, reacting to random conversions and trying to optimise on a limited number of data sets. This is the wrong way around. Time should be better spent on analysing the customer before the ad is even served, and then serving the most relevant ad to that individual against three main criteria… _________________________________________________________________________________ Slide 16: III Interest – what have they done to make us think that we have something that will suit them. Profile stuff on likes and dislikes, hobbies, interests, age, location, gender etc….What searches have they undertaken, what sites did they visit. This is a GENERAL VIEW
  • 6. Intent – why do we think they are in market – recent web searches, visited other travel sites. SPECIFIC VIEW Instances – what’s the recency of this information, what’s the user’s frequency of usage is 1 relevant search in the last 3 months any indication of any intent? Then work with technology and publishing partners to define/collect the cookie characteristics and the data sets that will inform the ad server Firms like AS are already starting to do this at a broad level. _________________________________________________________________________________ Slide 17: Personalisation Engine If the desire is to move towards a significantly more personalised delivery of online advertising that brings all the component parts together, using multiple data sets. The adoption of one-to-one marketing, as mentioned before, tends to start with the existing customer base, but the real impact will begin when a robust, data-agnostic personalization platform is established and used to drive relevant advertising to new prospects. Data aggregation – from a variety of sources (that I’ll go into), and will need to leverage Cloud computing to keep profiles fresh Decision engine – makes sense of the data offering an intelligent recommendation on what to serve Creative development – as you are already doing ads are modular, using existing assets with the focus on relevancy Media targeting and dynamic ad serving – does exactly what it says on the tin Marketing channel- further relevancy. Remember is works across the entire funnel – both pre and post-purchase and therefore effectively becomes part of a CRM programme. ______________________________________________________________________________ Slide 18: Marketing Engagement Landscape In our experience running personalized online ad campaigns, we’ve seen ROI that is typically 5 to 10 times that of a standard, broad-reach campaign. When used in conjunction with more traditional top-of-the-funnel activities, the lift is maximized across an even larger base. While that’s impressive, it will only get better as other media channels come on board. Today, online is the only media channel that can do this; it will expand to others, such as TV, as they become interactive, and therefore, addressable. The logical conclusion is that one day most advertising will in some way be customized. That will be great news for advertisers, who are always looking for better ROI, and consumers, who increasingly want advertising on their own terms. ______________________________________________________________________________ Slide 19: AS Periodic Table
  • 7. I wanna do that – how do I get started? Luckily, companies like AS have begun the process for you ______________________________________________________________________________ Slide 20: But it starts with planning Slide 21: End