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Published by: api-26662867 on May 27, 2010
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W  KW.W  K.
he Defnitive Guide to ExploringData Providers or nline argeting
Executive ummary
The online advertising industry is witnessing a major conuence between
technology andmedia buying innovations and
the availability of robust data, including third-party data that isindependent of ad inventory.The last 24 months have seen the arrival of dozens of new data companies, advances in behavioraltargeting and the emergence of demand-side platforms that allow ad agencies to control the biddingand buying of online ad inventory.Though third-party data has created exciting new possibilities, it has also added a new level ofcomplexity. Its role in online targeting is still taking shape and best practices are not yet wellestablished. Making sense of it all is a challenge for even the savviest advertising professionals.As you look to assimilate third-party data into your online targeting strategies, you need to fullyvet your data partners. You need to know where the data comes from, if it’s veried, how it will bemeasured and more. This brief guide will help you ask the right questions.
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W  KW. W  K.
he Defnitive Guide to Exploring Data Providers or nline argeting
Introducing the Era o Independent Data
Five years ago, data that was independent of inventory was largely unavailable. Though somepublishers collected audience data, using data to drive campaigns was largely the domain ofadvertising networks that employed retargeting pixels, tracked referring URLs and deployed pixelsto understand engagement. Collectively, these techniques evolved into what we now call behavioraltargeting (BT).The last 24 months have given rise to a number of innovations in behavioral targeting, thanks to theemergence of:Technology-driven ad networksReal-time biddingPublisher yield optimizationNext generation ad serversMore sophisticated inventory management and pricingAt the same time, dozens of companies have emerged to provide data independently of inventory.We are now at the beginning stages of a major conuence between
technology and media buyinginnovations and
availability of robust data frommultiple sources and of many varieties.
gencies Re-Gain Control
Advertisers and ad agencies alike have voiced seriousconcern about the collection and aggregation of datarelated to their campaigns. In response, agencieshave taken back control of their campaign-deriveddata by bringing bidding and buying of inventory in-house. To do this, agencies are leveraging technologyplatforms, and in some cases, building sophisticatedtrading desks with teams that combine ad impressionsand data; the emergence of third-party data that isindependent of ad inventory has enabled agencies toleverage these platforms — increasing agency buyingpower, enabling dynamic pricing and delivering moredetailed audience buying.
argeting Consumers Where It Counts
Lately, it seems as though a week doesn’t go by without a new data source announcing their arrival onthe scene. While most media buyers and sellers will publicly state that more data is always welcome,the reality is that making sense of the data is a challenge for even the savviest advertising professionals. 
In early 2009, the largest media buyer in theworld – WPP’s Group M – altered the Terms& Conditions attached to insertion ordersand contracts by adding:"Not withstanding the foregoing or anyother provision herein to the contrary, it isexpressly agreed that all data generated orcollected by Media Company in performingunder this Agreement shall be deemed'Condential Information' of Agency/ Advertiser."
1 “GroupM Revises Terms For All Online Ad Buys, Claims Data is ‘Confdential’”, by Joe Mandese, MediaPost, February 2, 2009
Page 3
W  KW. W  K.
he Defnitive Guide to Exploring Data Providers or nline argeting
Making ense o the Data at Every tage o the Funnel
op o Funnel
“Predictive intent” or “brand” data is best used at this stage because it identies a largeaudience of prospects who are likely to have the desired brand and/or product preferences.Predictive intent data does not identify hand raisers but, instead, nds people who wouldraise their hand with a little nudge. Marketers targeting consumers at the top of the funnel aretargeting a broad audience with awareness- or brand-building messaging. This is commonlyreferred to as “audience targeting” or an “audience overlay.”
Middle o Funnel
“Frequent shopper” or “afnity” data is often used at this stage to identifyindividuals already familiar with a brand, product or service. This type ofdata is gathered online or ofine via panels and surveys; it might includeshopping data, brand preference data and product usage data. Since thisgroup is likely to be more responsive, marketers at this stage use messagingthat drives further engagement in the consideration process.
Bottom o Funnel
“In-market” or behavioral data is used at this stageto identify individuals who are close to making apurchase decision. Data is typically collected onlineand involves observing user activity.

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