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A Fundamental Guide to of Display Data, Targeting & the Future
Mapping The Display lanDscape:
A Fundamental Guide to of Display Data, Targeting & the Future
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FOReWORD chapTeR 1: The DisplAy lAnDscApe chapTeR 2: DeAlinG wiTh DATA chapTeR 3: FROM DATA TO AUDience chapTeR 4: AUDience TARGeTinG FOR BRAnDinG chapTeR 5: pRivAcy chapTeR 6: whAT’s nexT FOR DATA-DRiven DisplAy? glOssaRy abOuT neTMining
16 18 27 30 49 56 Why Real-Time bidding changes everything sean Downey, national sales Director, Display at Google Real-Time bidding: The slope of enlightenment Brian O’Kelley, ceO, Appnexus Data-Driven Marketing: 1st party Data Vs. 3rd party Data chris scoggins, svp & GM, Dlx platform, Datalogix social Targeting Tom phillips, ceO, Media6Degrees What is Online Media Verification? Oren netzer, co-Founder & ceO, Doubleverify privacy & Oba self-Regulation colin O’Malley, co-Founder, vp strategy and policy, evidon
Mapping the Display landscape: a Fundamental guide to Data, Targeting & the Future of Display
n the midst of the rapidly developing display ecosystem, it’s easy to feel overwhelmed with
we have written this Display Guide to help you navigate this fragmented and changing world we work in, and hope it serves as a valuable resource initiatives. included in this guide are answers to some of the most burning questions we hear again and again from marketers: how should we respond to the fast-paced evolution of the display landscape and what we can expect in the near future? what exactly are all these technologies, platforms and tactics – such as RTB, Dsps, ssps, Ad exchanges, Data exchanges – and how should i be using these tools? Am i missing anything in my toolbox? when approaching your display
the new technologies, acronyms and players in our industry. There are a lot of mechanics involved in managing a media plan in today’s digitally driven marketplace and the industry is regularly challenged to keep up with these changes and developments as they emerge. staying informed is essential for online marketers given display’s growing importance. At the most recent iAB “Future of Display” conference, neal Mohan, vp of product Management at Google, declared that spending will rise from $25 billion in 2010 to $200 billion “in a few short years.”
What are the best practices in relation to data and audience targeting? We know how display works for direct response objectives, but how can it work for branding? A number of individuals graciously lent their time and talents to the production of Mapping the Display Landscape. We’d like to take this opportunity to thank them for their contributions. To our savvy featured columnists: Sean Downey, Oren Netzer, Brian O’Kelley, Colin O’Malley, Tom Phillips and Chris Scoggins – we appreciate all of you for sharing your keen insights and expertise. To our “what’s next” fortune-tellers: David Cohen, Jeff Huter, Scott Portugal, Philip Smolin and Michael Stephanblome – we are excited for the day when we can say you predicted the future here first. And a shout out to Danny Hellman (www.dannyhellman.com) for the fun illustrations.
Last but not least, an advanced thanks to the readers of this Display Guide who are encouraged to comment, share, critique, tweet, scan, blog or generally discuss the contents herein. We welcome you to reach out and share your thoughts directly with us anytime at firstname.lastname@example.org or on Twitter @netmining.
Happy Reading, Chris Hansen President Netmining
THE DISPLAY LANDSCAPE
The display landscape has changed dramatically since the first display banner appeared in 1994. This chapter outlines significant milestones that have shaped the current display environment and reviews the technologies and key players on the forefront of this changing landscape.
The Rise & Fall of Display (2000-2005)
Online display advertising emerged as the predominant online marketing vehicle during the dot com boom of the late 90s. For many years, the way it was created, priced, packaged, bought and sold remained unchanged. In 1998, a company named goto.com (later Overture, then bought by Yahoo! in 2003) began offering textbased ads targeting keywords on a CPC (cost per click) basis. Search marketing was born, giving marketers a new advertising format to reach consumers and new competition for limited online advertising budgets. Google’s entrance into the space solidified search as a serious contender for online marketing dollars, threatening display’s then held dominance. The efficiency, control and easily measureable ROI provided by search marketing highlighted the limitations of display. In contrast, display at this time offered no easy way to directly By 2005, display marketing had lost its luster as budgets continued to shift from display towards search. As seen in the IAB Internet Advertising Revenue Reports, 67% of online ad revenue could be attributed to display and 4% to search in 2001. However, by 2006, display decreased to 32% as search became the dominant online advertising channel at 40%. This dramatic shift can be attributed to one thing – CONTROL. Search marketing gave marketers, and the agents that managed media on their behalf, control over where ads were displayed and transparency into associated costs. As a result, display providers were forced to innovate quickly to stave off declining display dollars. access inventory; it provided limited control over inventory and costs; and it saw low performance and measureable ROI.
new Technologies lead the Turnaround (2005-present)
Display needed to evolve to compete in a new world dominated by search. it’s no surprise that search companies, namely yahoo!, Google and to some extent Microsoft, were heavily involved in display’s evolution. Through innovations and acquisitions by these big players, marketers started to see a new display industry emerge, one that provided better access to inventory, more efficiency and control over targeting and cost, and better performance. 2005 saw the birth of the Ad exchange. Ad exchanges were developed to provide advertisers with better access and more control over inventory. several major deals catapulted exchanges into mainstream media buying, including the acquisition of RightMedia by yahoo! in 2007 and the launch of Google Doubleclick Ad exchange in 2009.
Demand side platforms (Dsps) also began to attract attention in 2007 with companies like MediaMath and inviteMedia who helped make media buying more efficient for marketers and Ad networks. This was the first platform that aggregated media buying and selling in one place. even some Ad networks, such as Turn, began to morph into Dsps to take advantage of this market development. To improve performance and to provide further control over messaging to different audiences, these major companies began experimenting with dynamic display. Google and yahoo! once again made significant plays in this space with acquisitions of Teracent in 2009 and Dapper in 2010, respectively. in 2011, Google made the industry’s first supply side platform acquisition with AdMeld. new and old players are now all integral to the display ecosystem. This includes Ad exchanges, Ad networks, supply side platforms, Data exchanges and more, most of which work
RightMedia exchange (RMX) launch april, 2005 BiRTh OF The AD exchAnGe
inviteMedia launch april 2007 eMeRGence OF Dsps
google buys Doubleclick april, 2007 GOOGle GeTs seRiOUs ABOUT DisplAy
yahoo! buys RightMedia april, 2007 AD exchAnGes GO BiG TiMe
Microsoft buys adecn July, 2007
The Display landscape
together in some capacity. Brands are finding new confidence in the current display landscape thanks to strides in brand safety, performance and market transparency. expect to see more growth and consolidation in the year ahead as major industry players and new market-entrants seek to grab the impending brand dollars shifting away from traditional ad spend and toward display.
Key Technologies in Today’s Display landscape
Display needed to evolve to compete in the new world dominated by search, and by 2005, the changes had begun. what emerged was a series of disruptive businesses and technologies that changed the way display media was bought and sold. here we provide an overview of each of these technologies.
an online advertising service provider, often with proprietary technology, that helps marketers run display advertising campaigns across various sources of online inventory, including direct publishers and ad exchanges. ad networks typically include other services as part of their media campaigns, such as ad serving, media verification, privacy notification, reporting, data and/or audience targeting.
MediaMath launch aug, 2007
Turn launches Their Dsp sept, 2007 sOMe neTwORKs MORph inTO Dsps
google launches Doubleclick ad exchange sept, 2009 The AD exchAnGe GROws Up
google buys Teracent nov, 2009 GOOGle BOOsTs DisplAy pUsh wiTh cUsTOMiZeD ADs
Since the dawn of online advertising in the mid-90s, display media has been aggregated and sold through Ad Networks. In its early stages, an Ad Network’s basic function was to connect advertisers to the many Web Publishers interested in hosting ads on their site. Ad Networks assisted marketers in executing media plans by offering one outlet for buying inventory, reporting, optimization, targeting and campaign analysis. Today, Ad Networks distinguish their services through advanced technologies (e.g. audience networks) or specific vertical focuses (e.g. retail networks). These advanced Ad Networks continue to serve as valuable partners for Publishers looking for trusted demand sources and to marketers needing more in-depth targeting and analysis. More successful Ad Networks are investing heavily in technology to provide further valuable services to advertiser clients, including data management, ad verification,
privacy notice and consent, and brand studies. Who Uses: Advertisers, Agencies to reach audiences; Publishers to sell remnant inventory. Benefits: Buying inventory across multiple sites is simplified for the advertiser as costs are aggregated within one IO; Ad Network buys can be more cost effective since other expenses, such as ad serving, verification and
DSPs & Ad Networks
Many Ad Networks and DSPs now offer similar technology-enabled services. Both are viable options for marketers looking to achieve scale among target audiences. Rather than choosing one type of company to work with, marketers who want to achieve high ROI and efficiency with media buys (and are willing to experiment to find their optimal media mix) should test DSPs alongside a variety of Ad Networks with proven performance case histories. This will help identify the right combination of partners to maximize return against campaign goals.
AOL AdDesk Launches April, 2010 AOL PLAYS CATCH UP AND MAKES THEIR INVENTORY ACCESSIBLE TO THE MASSES
Google Buys InviteMedia June, 2010 GOOGLE GETS EVEN MORE SERIOUS ABOUT DISPLAY
Yahoo! Buys Dapper Oct, 2010 YAHOO! FOLLOWS GOOGLE’S LEAD AND GETS DSP AND DYNAMIC CREATIVE CAPABILITIES THROUGH ACQUISITION
Microsoft Shelves AdECN and Partners with AppNexus Feb, 2011 MICROSOFT TRIES AGAIN TO COMPETE IN THE NOW MATURE EXCHANGE SPACE
Google Buys AdMeld June, 2011 GOOGLE GETS INTO THE SSP BUSINESS
The Display Landscape
other costs, are often included in the price of the media. considerations: Ad networks typically do not provide complete transparency into inventory costs.
similar to search marketing, they can create rules that dynamically update their bids (rulesbased bidding) based on the inventory’s expected performance against campaign goals. A large percentage of inventory bid on in the exchanges is real-time bidding (RTB) enabled and this percentage continues to rise because of the efficiencies RTB provides to marketers and publishers. Who uses: Advertisers, Agencies to reach audiences; Ad networks and Dsps to sell their publisher-partners’ inventory. benefits: exchanges make the process of buying on multiple Ad networks more efficient by consolidating inventory across networks and allowing advertisers to set rules for how much they are willing to pay per impression based on expected return against campaign goals. considerations: exchanges focus solely on providing access to large volumes of inventory that can be purchased in an auction environment with dynamic and variable pricing. exchanges typically do not provide additional services required for a media plan, such as data targeting and media verification. As a result, most advertisers utilize Ad exchanges in conjunction with other Ad network or Dsp partners.
Online auction marketplace that facilitates the buying and selling of inventory across multiple ad networks and Dsps. Ad networks were created to consolidate inventory and media buying across the thousands of sites selling advertising on the web. By 2005, hundreds of Ad networks existed, giving rise to a new kind of ad inventory consolidator - the Ad exchange. An Ad exchange is an online auction marketplace that facilitates the buying and selling of inventory across multiple Ad networks and Dsps, often in real-time. exchanges help advertisers consolidate their network and Dsp buys and maximize the return from each ad impression. Media buyers at advertising agencies are the primary users of Ad exchanges and often access them directly through a Dsp. with Ad exchanges, media buyers have more granular transparency and control over the buying process, including how much they pay for each impression. For example, media buyers can stipulate what they are willing to pay for specific audience demographics and inventory.
yield Optimizers/sell side platforms (ssps)
an advertising technology platform which represents (publishers). ssps give publishers the ability to increase their website advertising revenues by engaging with multiple demand-side channels (Ad networks, Ad exchanges and Dsps) through a single vendor. ssps simplify the number of vendors a publisher needs to work with directly, while maximizing the number of advertisers who have access to bid on their inventory. Marketers will rarely work directly with ssps but they are a key element to accessing quality inventory. Who uses: publishers benefits: Allows publishers to maximize their advertising revenues by expanding the number of advertisers who have access to their inventory (via Ad exchanges, Ad networks, Dsps), while providing the efficiency of working with one partner. considerations: publishers are often cautious when using ssps, as they want to ensure that these revenue streams do not jeopardize their own direct sales efforts. the suppliers of online ads
(financial data), nielsen (demographic and psychographic data), OwneriQ (purchase history) and more. These companies were quick to make their data available to media buyers just as publishers made their inventory available via Ad exchanges. Today, most of their data is sold in online Data exchanges. All of these companies sell data that can be used in the process of building an audience for a marketer’s online advertising programs. Who uses: Advertisers and their agencies, Ad networks, Dsps, Data exchanges. benefits: provides data that can be used to build audiences to meet a marketer’s campaign goals. considerations: every data type and provider, and their respective combinations yields different results. To successfully employ data from these providers, ongoing testing and analysis is required to learn how to mix and match data types to yield the best results.
Online auction marketplace where advertisers acquire 3rd party data that helps them better reach their target audiences with display. Data exchanges were created as marketplaces where Online Data providers could sell their data directly to Dsps and Ad networks. Data exchanges give marketers access to audiences who are in the market for certain products,
Online Data providers
any provider who sells data online. The definition of an “Online Data provider” is broad and includes a number of players and data types, such as companies like experian
The Display landscape
demonstrate specific purchase behaviors or adhere to certain demographics. Marketers can work directly with Data exchanges to add more intelligence to media buys, although most access Data exchanges through intermediaries like Ad networks and Dsps. Who uses: Ad networks, Dsps. benefits: ease of access to a wide variety of data that can be compiled to target audiences. considerations: As mentioned above, ongoing testing and analysis is required to learn how to mix and match data types to yield the best results.
campaigns that combine different audience data and inventory to meet their needs. Bid rules and optimization algorithms determine how much the marketer will bid for the inventory and audience data, and campaigns are optimized continuously to maximize ROi. with a managed service model, the Dsp provider will manage a marketer’s day-to-day display campaigns and buy their biddable media in addition to offering other campaign services for an additional cost, such as ad serving, media verification and data buying, similar to the services offered by Ad networks. For advertisers who choose to license a Dsp, they may find that these platforms offer more control over, and transparency into, the price paid for each individual ad impression. however, using these sophisticated technologies does require training and daily resources to manage campaigns. Marketers who want more “hands on” help managing their display media utilize Ad networks or Dsps as a managed service (or a combination of the two). Who uses: Agencies, Marketers. benefits: control for agencies and marketers over the buying of display inventory and audience data, and transparency into media costs. Under a self-service model, these platforms should provide visibility into the cost of the data and inventory purchased. considerations: while having complete
Demand side platforms (Dsps)
an advertising technology platform which allows marketers to manage their online media campaigns by facilitating the buying of auctionbased display media and audience data across multiple inventory and data suppliers in a centralized management platform. The rise of exchanges and biddable display media helped spur the creation of a new type of online advertising technology known as “Demand side platforms” or “Dsps.” Dsps centralize the buying of auction-based display media across Ad exchanges and are usually offered as both licensed technologies, used by agencies and in-house marketers, or as managed services. Those who license the technology can use it to create display
What is Real-Time Bidding (RTB)?
RTB is the buying and selling of ad impressions in real-time in an online auction marketplace. The centralization of media buying and selling via platforms such as Ad Exchanges and SSPs, opened the door to real-time bidding (RTB), or dynamic, search-like bidding on a per impression or per user basis. For media buyers, RTB allows them to decide, in real-time, whether or not they want to bid on media based on the perceived value of the media being bought and the audience being targeted. Typically, the highest bidder gets their ad placed. For Publishers, RTB provides them with the opportunity to get fair market value for each impression and many believe this should help Publishers better monetize their ad inventory.
transparency into the price of each impression may help many marketers and agencies be more savvy about their media budgets, others may find this too resource intensive to manage on their own. In addition, some DSPs may have additional costs for added services such as ad serving, data and media verification.
How does RTB work?
The efficient RTB process can be seen in this diagram.
➌ Based on the perceived value of this user to the
marketer, the marketer places a bid on this ad placement and the highest bidding marketer gets the spot. In this case, the hotel marketer placed the highest bid and the user is served a hotel banner. The entire bidding process takes place within a fraction of a second.
➊ When a user visits a website with a display
ad, a call is made by the exchange server supporting RTB to check with the Demand Side Platforms or Ad Networks to determine which marketer gets to serve the ad.
➋ There is a list of attributes associated with
each user and the platform checks if this user has the desired attributes the marketer wants to target. 14
The Display Landscape
single platform to Single Exchange Single Platformto single exchange
Website Platforms (DSP/Ad Network)
Desired targeting attributes?
Platform 1 Platform 2 Platform 3
Bid Price: $1.50
Exchange / SSP
Bid Price: $1.30
ATTRIBUTES Geo Time of Day Day of Week Context Placement Bandwidth Audience segments
The past five years of innovation in online advertising has created an entirely new market for buying and selling media, one fueled by both big and small players. Recent years have seen consolidation as market leaders like Google and yahoo! invest in ad strategies. Market advancements have been perfectly timed with the rise in targeting, consumer engagement and new creative formats. The market reshaped and old players like Ad networks reinvented themselves, while other new players and technologies entered the space. Data exchanges, ssps, Dsps and RTB are a few examples of this. each addresses a specific need for marketers and publishers. The proliferation of accessible online data has united inventory and created an ecosystem where most platforms are working together in some way to achieve campaign goals. An example of this is an Ad network working with Data exchanges and RTB platforms on behalf of a marketer. Marketers are also being forced to innovate how they approach media buys. Understanding the players and how each impacts business is crucial to building a successful program. Dsps and Ad networks that offer similar services should be carefully evaluated to determine their right place in a media plan.
Why Real-TiMe biDDing changes eVeRyThing
national sales Director, Display at Google
Real-Time bidding is becoming more important to the future of the display ecosystem, but how does it actually work? This section takes a look under the hood of RTB, reveals how it is improving the industry and providing benefits to both marketers and consumers alike.
eal-Time bidding (RTB) is the missing piece that solves the challenges of efficiently and
precision in acquiring ad space online. Through RTB, advertisers can evaluate ad space based on near perfect information about every impression. Advertisers can know – before they buy – if their ad will reach its intended audience, appear on the correct placement on a page, appear within a particular category of content and reach people in the right geographies. But what is real-time bidding? it’s an automated process by which ad inventory, on an impressionby-impression basis, is evaluated, bid on and purchased on demand. when bidding in real-time, advertisers must answer three essential questions about every impression that’s up for auction:
effectively acquiring ad space online. since the first display ad was purchased in 2004, advertisers have been dealing with the inefficiency of buying in advance directly from sites in their media plans, the difficulty of reaching the right audience with manual methods and a sheer explosion of choice. Today, through Google alone, there are over 2 million sites to buy on and over 500 million people to reach globally. RTB turns these challenges into opportunity. RTB doesn’t just solve problems: it adds value by helping advertisers attain a new level of
The Display landscape
Do you want the impression? what price are you willing to pay? if you win the impression, what creative do you serve? These questions must be answered in 100 milliseconds or less, across millions of impressions every day. while real-time bidding is a process, only technology makes real-time bidding possible. RTB requires two distinct layers of technology: a “pipe” and a “brain.”
in action, RTB takes place every time the “pipe” announces an impression and the “brain” evaluates it. By considering inventory in this manner – on a per impression basis – advertisers get to be more selective about the quality of inventory they buy. They can place premium bids on the inventory and audiences of the most value to the advertiser, and can completely pass on inventory and audiences of the least value to the advertiser. Adoption of RTB is on the rise because advertisers see the benefits. in a recent survey by Google and Digiday, 47% of marketers and agencies who responded said they intend to spend more on digital advertising in 2011 because of the benefits of RTB. in other words, rather than simply shuffling money between different ways of acquiring ad space online, RTB is growing the overall pie for display advertising. plus, a full 88% of marketer and agency respondents will buy online display via RTB in 2011, up from 75% in 2010. Real-Time bidding changes everything. Advertisers can finally find the reach and frequency they need for even the most niche audiences. They have a greater degree of flexibility, which makes it easier to drive performance. They can spend less time on site-by-site negotiations, insertion orders and billing. This allows more time to spend delighting audiences with relevant and compelling ads. when advertisers do this, everyone wins, from the people who browse the web every day to the publishers whose content they are consuming.
➊ The “pipe” of RTb is the real-time bidding
Api (RTB Api) that provides a server-side connection to an inventory source and pushes out a real-time stream of impressions to eligible advertisers. The “pipe” announces each impression individually as they become available for purchase. At Google, Doubleclick Ad exchange’s RTB Api is the pipe that makes all Ad exchange inventory available for purchase in real-time.
➋ The “brain” of RTb is any real-time bidder that
connects to one or more “pipes” and evaluates every impression that’s announced. The realtime bidder is responsible for making the best inventory acquisition decisions possible, on behalf of the advertiser. At Google, invite Media’s Bid Manager is a real-time bidder and Google Display network uses a real-time bidder under the hood.
eal-TiMe biDDing: The R Ope OF enlighTenMenT sl
This section discusses the evolution of real-time bidding through the lens of an Adoption curve, and reveals why the Golden Age for real-time bidding is still ahead of us.
e’re now in the second year of the realtime bidding (RTB) phenomenon, and everyone is asking: “how much is hype and how much is reality?” sellers and buyers have complained that the results from RTB are not as amazing as promised, that the inventory is not as premium as hoped and that prices are just too darn high. Fingers are pointing back to traditional inventory, which is supposedly performing better. Before everyone starts jumping ship, i suggest we step back and look at the bigger picture: the Adoption curve. One of my favorite business books is crossing the chasm by Geoffrey Moore, which i highly recommend. in it, Moore references a paradigm developed by Gartner Group, which tracks the typical pattern of technology adoption. Gartner’s model characterizes the over-enthusiasm or ‘hype’ and subsequent disappointment that typically happens with the introduction of new
technologies. hype cycles also show how and when technologies move beyond the hype, offer practical benefits and become widely accepted. The paradigm shows that after a Technology Trigger (the introduction of a new solution), there follows a peak of inflated expectations (e.g. what everyone reading this experienced last year re: RTB). This is followed by the Trough of Disillusionment (representing all the naysayers today). however, what comes next in Moore’s chart is critical: the slope of enlightenment, representing real evidence of lift. Gartner’s adoption paradigm is parallel to the adoption of Ad exchanges. Ad networks were the first to adopt the exchange model several years back, as well as RTB, but agencies didn’t buy into these new media buying channels as quickly. Today, agencies are leading the pack because they have recognized an opportunity to add tremendous
The Display landscape
value to their clients. now Ad networks and other companies are scrambling to launch private Ad exchanges in a game of catch up. i believe that this is our enlightenment period, and i will offer three predictions based on this premise:
➊ At least half of the top 50 publishers and
networks will launch a private exchange. At one point, in the Ad exchange 1.0 world, there was very little control on the sell side and Dsps started to lower prices. Today, publishers are getting smarter and are fighting back. yield management controls are now critical components of any technology offering for auction-based or RTB buying. i truly think this will be the year of yield for publishers.
the dialogue is ongoing. At Appnexus, we sit in the middle and are agnostic to the outcome, but we appreciate the valuable perspective into both buyers’ and sellers’ wants and needs. it is this perspective that confirms in my mind that the physical exchange is going away. it’s awkward to mediate between buyers and sellers; it’s just a tricky business model. Therefore, i believe that exchange will transcend from “noun” to “verb” with buyers and sellers directly trading with one another and bearing the brunt of those negotiations directly. so why do i think we are entering the slope of enlightenment? The Demand side platform (Dsp) and supply side platform (ssp) models are already starting to change. second generation solutions are emerging everywhere, including at my own company. There are more pilots and more testing of these solutions. conservative companies are still cautious, but i know we, and others, are making huge strides in gaining their confidence. At Appnexus, we see more than 10 billion impressions a day run through our platform, which is enormous growth over the last year. we are also monitoring twice as many creatives and demonstrating more RTB traction with agencies. i know of many clients who can already credit large portions of revenue to RTB. Real-Time bidding works for both buyers and sellers. come see for yourself.
➋ The biggest marketers who are embracing RTB
will take it a step further and bring exchange buying in-house to monetize their proprietary data. Marketers have a wealth of 1st party data on their own users, whether gathered through visits to their own websites or gathered through their products. savvy marketers will use this wealth of data to more effectively message these consumers across the internet.
➌ RTB’s traction will only be stymied by increased
conflict between the buy-side and the sellside regarding data and transparency. i have a buy-side client who was hoping to execute buys anonymously to mask their identity. we took that request to the exchanges, and their universal response was, “That’s fine as long as that buyer doesn’t expect quality inventory.” This didn’t sit well with the buyer, naturally, and
Dealing WiTh DaTa
The current display landscape revolves primarily around two core components – inventory and data. inventory provides distribution (where an ad will appear) and data is used to help marketers find and target the right audiences (who to serve an ad to) and determine what messaging to serve them for more relevant advertising (what message to show). As demonstrated in the previous chapter, the marketplace around display has quickly evolved, creating mass efficiency and multiple lines of businesses, many surrounding the collection and distribution of data. There are now a number of partners who can help marketers understand data segments and how to leverage data for targeting. This chapter provides an overview of common data types and an introduction to leveraging data for targeted display campaigns.
Marketer Data and 3rd party Data
Marketer Data (1st party Data)
Marketer data (also known as “1st party data”) is just that – any data that is created or owned by the marketer. Marketers who know how to tap into their own proprietary data will be able to identify individuals who are most likely to convert and discover information about their customers to be used to deliver more relevant and higherperforming display advertising. how it’s used: Marketer data can be used to improve a wide variety of marketing tactics. For display advertising, it is most often used for remarketing. Remarketing (or retargeting) What it is: Any data proprietary to a marketer, such as search queries, site visitor data, cRM data and more. Where it comes from: A marketer’s website and analytics, cRM database or any other source of proprietary customer data.
is the act of re-engaging with past visitors of a website through display advertising with the goal of driving them back to the site to complete an action. For example, a marketer can target people who exhibit certain behaviors on their website, like abandoning their cart, and entice them with an offer (e.g. “free shipping”) in order to encourage them to come back and complete the purchase.
3rd party Data
3rd party data comes from many sources, including publishers, retailers, e-commerce sites or even offline data providers who have found ways to utilize their data to target people online. with the increase of 3rd party data, Data exchanges, like BlueKai and exelate, have sprung up to increase availability to marketers and to make it easier to aggregate the information used to build audiences. What it is: Any data that a marketer can purchase in order to better identify and target their audiences. Data can include demographic or psychographic data, past purchase history, financial data and more. Where it comes from: Data exchanges or individual 3rd party data providers. how it’s used: 3rd party data is used to compile audience databases or “cookie pools.” For more on how 3rd party data sources are aggregated to create audiences, please see chapter 3.
Dealing with Data
The chart below identifies common 3rd party data types and their attributes. common Data used for audience Targeting
Demographic Demographic data categorizes people socio-economically; for example, where they live, how old they are or how much money they make. Marketers are keenly aware of the demographics of their customers based on efforts in other marketing channels. while this data can have fairly broad reach, it is still an effective way to drive awareness and consideration in display advertising.
with social data, a person’s interests are inferred based on their connection to others on social network sites. Marketers can target a graph of similarly minded people who may share interests in order to expand the reach of their campaigns.
lookalikes are potential customers modeled after actual customers on a marketer’s website. Attributes of marketer’s customers are matched against a larger audience, creating a pool of highly targetable users. This data can help marketers reach new, prospective customers.
purchaser data includes information about people’s past purchases and/or items that they own. Marketers can use this information to up-sell or cross-sell owners of specific products.
in Market data indicates an audience that has the intention to take a certain action, such as purchasing a product or booking a trip to a specific location. This type of data comes from research sites, shopping or comparison sites, online travel aggregators and vertical search engines. These sites identify user interests down to a specific product or travel destination and then sell these users to Data exchanges.
The Data Marketing Funnel illustrates how Marketer and 3rd party data can be used to target audiences throughout the customer lifecycle. Data at the top of the funnel, such as demographic and contextual, reaches a broad audience and can be a strong driver of brand awareness and site traffic. Data at the bottom of the funnel, such as Marketer (1st party) data, reaches a smaller but more highly qualified audience (past visitors to the marketer’s site), resulting in higher performance and conversions for these types of display campaigns. Marketers should deploy campaigns that utilize both top of the funnel and bottom of the funnel data. while bottom of the funnel data will perform top of the funnel data will help marketers broaden their reach and replenish the bottom of the funnel by increasing the number of people who visit their website. better and deliver higher ROi, campaigns using
Data Marketing Funnel
The Data Marketing Funnel illustrates how Marketer and 3rd party data can be used to target audiences throughout the customer lifecycle.
social graph lookalike purchaser in Market/intent Remarketing
Data has become a crucial element in a marketer’s toolbox. leveraging data helps marketers find and target the right audience with the most relevant ad, which leads to higher performance. Marketers need to take the time to familiarize themselves with the types of data available to create better audience targeting and higher performance. There is a healthy marketplace of data experts who can help marketers understand which data is best to apply to a particular campaign and target audience.
Dealing with Data
DaTa-DRiVen sT MaRKeTing: 1 paRTy s. 3RD paRTy DaTa DaTa V
svp & GM, Dlx platform, Datalogix
1st party and 3rd party data can help marketers effectively scale their target customer group or cookie pool. The techniques discussed in this section will demonstrate how to use 1st party data to target consumers you already know and 3rd party data to find new sources of qualified consumers.
more specifically, 1st party versus 3rd party data. Just when you thought you had the discussion framed properly, you have to overlay an additional complexity of the data source – offline versus online.
here is currently a good deal of debate around the value of data for online advertising and
Targeting use cases
This simple diagram describes the marketing tactics employed when using various data types. There are obviously nuances within each cell and we could debate additional examples, but we use this framework to keep things simple.
1st party Data
3rd party Data
Let’s also start with the premise that some data can probably help you better target your marketing spend. I don’t think that’s very controversial. The controversy arises when you have to choose between various data types and then try to ascribe a value. This remains elusive for the entire industry, but to be honest, so does the true value of media (offline and online) in general. We’ll start with the two 1st party data use cases. Remarketing works very well. No debating this. It’s the same technique used by direct marketers (targeting their existing offline customers or houseflies) and has been in use for 30+ years. But neither approach scales, due to either limited customer lists or website traffic. In online terms, you can try to find the 100k Unique Visitors (UVs) that went to your site last month and didn’t convert, but what about the 15MM relevant UVs that didn’t even get to your site. Do you just ignore them? How do you get more consumers into the top of the funnel? And why does this matter? It matters because brands still matter and perhaps now more than ever (given the abundance of choice that exists within every consumer product and service category.) Several online analytic firms have reported the same findings over recent years – targeted display advertising increases brand search, brand recall and brand conversion. People buy what they know and feel an affinity toward. So back to the key question, “how do I find more customers?”
One technique is to transform your offline customer file into online audiences. There are surprisingly few companies that have this proven capability. Simply put, these vendors are able to segment an advertiser’s offline customer list and append these segments to an online cookie pool for targeting. We have seen this work quite well for clients across verticals, leading to a 4x to 14x growth in ROAS figures. This “offline remarketing” tactic makes sense – the advertiser is messaging to either existing clients or “hand-raisers” that have expressed interest in the brand’s offerings. Now we move to the 3rd party data options. While 1st party data techniques are extremely effective at targeting consumers you know, 3rd party data is used to find new customers (acquisition or prospecting). However, because there is no common currency or definition for an online audience, the key question for any advertiser to ask of a 3rd party data provider is, “How do you classify cookies into your segments?” In other words, what actions or events trigger a cookie to be labeled a “New Mom”, “Corporate Executive” or “Luxury Auto Buyer”? Without digging into this specific issue, you will never really know what you are buying. In Datalogix’s case, we use a database of $1.2T in offline purchasing tied to 100M US households to categorize households (and related cookies) into a few hundred audience categories. A cookie is labeled “New Mom” because she buys a lot of baby clothing, formula and diapers.
Dealing with Data
every data vendor has its own methodology for grouping cookies into audiences – whether the data you are buying is from an offline or online source, you must understand how these audiences are constructed so you know what you are buying. if used properly, 3rd party data can be an extremely helpful tool to augment your 1st party data and drive more consumers to various stages within your purchasing funnel. These data sets help you “fish in the right ponds,” avoiding the millions of consumers that are less likely to be interested in your products, which is, after all, what effective online targeting is all about. Datalogix and netmining have worked together to bring 1st party and 3rd party data options to netmining clients for the last year. we have realized measured, improved results for direct response (DR) and brand advertisers. For DR, it’s about using data (1st or 3rd party) to drive conversions, while brand advertisers tend to focus on the composition and construction of the audience segments. They want to be certain that they are getting their message in front of the right consumer groups. with the right data and media partners, any marketer can leverage these capabilities today.
Two key takeaways: if you aren’t using these techniques today, you are missing out. They work and they make sense to clients. Ask your media and data partners specifically how they construct their targeting segments. if they can’t answer in clear, concise language that is easy to understand, look for another provider.
The growth and success of social media platforms has created a vast quantity of data about a marketer’s audience – who they are, what they do and what they like. There are many ways to utilize this data to deliver targeted advertising. This section takes a look at one form of Social Targeting which uses technology to observe patterns of where customers cluster on the Web and builds models to help marketers identify new customer prospects who share similar brand affinities.
ocial Targeting is commonly understood to be simply delivering a marketing message to
patterns of where your customers cluster on the Web, Social Targeting technology can establish a unique Social Signature for your brand and use that Social Signature to identify your best new customer prospects. The broad arena of using various forms of social data to build audiences is gaining currency among major marketers. Facebook’s tremendous success and the burgeoning activity at LinkedIn, Twitter, Groupon, Living Social, Foursquare and other social media have convinced most marketers that they need a social strategy and need to target an audience based on the new intelligence derived from social media. The Social Targeting
the friends of your customers. There is, however, a new model of Social Targeting that is potentially more powerful, if not immediately obvious. This new model for audience creation is based on the social science principle that people with similar interests tend to cluster into groups with shared brand affinities and purchase patterns. This model departs from the more obvious model of mining social interactions to find good prospects for your campaigns. Ultimately, the social science version of Social Targeting is both very intuitive and enormously powerful. By observing the
Dealing with Data
technology invented by Media6Degrees takes the concept that the web is increasingly about people and not sites, a place that captures all facets of the personalities of its users and harnesses it in the most privacy-friendly and scalable way for marketers. social Targeting technology allows us to build unique audiences for each of your campaigns by targeting people who cluster with your current customers around the web, serving them a message and then using conversion feedback to continuously refine the audience. here’s how it works: FiRsT: identify your brand’s social signature. place pixels on your site and show us a sample of your best customers. we identify sites where your customers cluster. sites with the highest cluster density determine your brand’s social signature. secOnD: Find your best prospects by
ThiRD: execute your buy. prospects matching your brand’s social signature visit sites in the Ad exchanges. we evaluate cookies and score them for their likelihood to convert. if a cookie has been to the places your customers cluster, the score is high and we show them your ad. FOuRTh: Track conversion results via our feedback loop. Refine your social signature. Refresh each user’s score to optimize performance in real-time. The result is an engine that identifies new customer prospects with an efficiency that tends to surpass other targeting methods. we view social Targeting as a breakthrough that finally harnesses the real power of digital media, extending audience identification beyond the traditional blunt instruments of demographics, context and intent. The power of social Targeting is that it is agnostic to those intermediate measures of audience relevance, and that it can be deployed at scale across brands, sub-brands and individual offers with equal efficacy. social Targeting is one important way that digital media is finally delivering on its demand creation potential for marketers.
identifying other users who closely match your brand’s social signature. we have partnerships with publishers who tell us when your customers’ cookies arrive on their sites. Users who gather at the same places where your customers cluster are most likely to convert. close match = better prospect.
M DaTa TO auDience FRO
chapter 2 reviewed different types of data and their use in various targeting tactics like remarketing, lookalike targeting and more. however, using a singular data set is often insufficient for achieving the size and scope of a marketer’s desired target audience. Many technologies, such as those employed by Ad networks, are able to aggregate a multitude of data to build out a desired audience based on a marketer’s performance or brand goals. This chapter provides a deeper look into ways that data is aggregated and applied to create a desired audience.
There is no “one-size-fits-all” approach to building an audience that will work for everyone. Marketers have different target audiences and campaign goals, and so the data used for campaigns should be customized to each brand and based on a marketer’s own proprietary data and unique goals. There are two primary ways that data is used to compile audiences for display targeting –
of data that can be used to determine people’s interests and intent, including social graph data, past purchase history, search data and more (as reviewed in chapter 2). Most marketers experiment with many different types of data to see what performs best and more often than not utilize partners who can help them combine different types of data to build a more complete audience.
➊ udience Targeting: Audience targeting, also a
known as behavioral marketing, is a rather broad term for developing display campaigns that target specific segments of the population. More specifically, audience targeting involves using 3rd party data to segment consumers based on their interests and intent. There are many forms
➋ emarketing (Retargeting): Remarketing, also R
known as retargeting, is the act of finding a marketer’s past website visitors across the web and delivering them display advertising with the goal of driving them back to the site to complete an action. while remarketing is often categorized as a type of audience or
behavioral targeting, it is actually quite different. While audience targeting uses 3rd party data, remarketing relies solely on a marketer’s own (1 party) data. Audience targeting usually reaches a larger
Approach: Broad Reach Campaign to Drive Leads Marketer: Manufacturer of Luxury Sedans Target Audience: Male Age 40+, HHI $150K+, in-market for new car Program Objective: Drive online leads (signups for test drives) among target audience The chart on the right illustrates how various data types can be aggregated to create a targetable audience, or audience pool, that meets the marketer’s target. Process for Audience Targeting
audience than remarketing campaigns, so it can be used to drive awareness, interest and intent. Remarketing typically drives better performance (conversions, CTR, CPA, ROI) since it’s targeted to an audience who has already expressed an interest in a marketer’s products and services.
Below are two examples that illustrate how data is used in audience targeting and remarketing, and how these campaign tactics can achieve specific marketing objectives.
➊ By connecting with Data Exchanges, the Ad
Case 1: Audience Targeting
A company marketing luxury sedans wants to target men with a high household income (HHI) who are above age 40, have no young children, and are in the market for a new car. The goal of the campaign is to generate a high volume of leads while achieving a target cost-per-lead (CPL). How does the company effectively target that specific audience using data and technology, while ensuring it meets its CPL requirements?
Network (or DSP) is able to identify the various data sets that match up against some or all of the marketer’s demographic requirements (e.g. HHI, age, etc.)
combinations of these data points collectively to identify and compile the desired audience.
➌ Once the audience has been identified, the Ad
Network will utilize Ad Exchanges and other inventory sources to locate the desired audience across the web and serve advertising to them.
From Data to Audience
case conclusion To make the best use of the wealth of data available, find a partner that has relationships with multiple Data providers, the experience and technology to compile this data into an audience pool customized for your brand, and the right inventory partnerships to find and target your audience at scale.
how Data is Used to create an audience
Car Models viewed in marketer’s website
Social Graph Data
Fan of brand on Facebook
In-Market/ Intent Data
Marketer’s Audience Audience Engine
High HH1 Age 40+ No Young Children In-market for a new car
Case 2: Remarketing
An online retailer of adult and children’s apparel wants to reach past website visitors and cart abandoners and encourage them to come back to their website and convert. The goal of the campaign is to generate sales and the marketer has a return on ad spend (ROAS) target they want to meet. What is the best way for this marketer to reach its site visitors and drive sales at a high ROAS? Approach: Advanced Remarketing Campaign to Convert Past Website Visitors Marketer: Apparel eRetailer Target Audience: Past Website Visitors Program Objective: Drive sales while achieving target return on ad spend Since remarketing is solely targeted to a marketer’s website visitors, 3rd party data aggregation (as shown in the example above) isn’t necessary. Rather, performance and campaign results depend entirely on the way a remarketing provider approaches how they use data for campaign deployment and optimization.
Standard vs. Advanced Remarketing
Standard remarketing tracks only the pages a user visits on a website. This level of data does not provide a complete picture of a visitor’s real interests and propensity to buy. Today, more advanced forms of remarketing exist that allow advertisers to gather more detailed data about the visitors to their site. This deeper level of data helps advertisers better segment the visitors they want to serve ads to and allows them to customize advertising creative to each user’s individual product interests.
From Data to Audience
For example, a visitor to the retailer’s website might view the “Men’s clothing” page and quickly move onto the “women’s Dresses” section, where they spend five minutes browsing and then put a dress into their online shopping cart. standard remarketing would know that this visitor had viewed “Men’s clothing” and “women’s Dresses.” Advanced remarketing technologies would have tracked enough detail about the time spent on the pages, products viewed and cart history to properly segment this visitor as someone with an interest in “women’s clothing” who is very likely to purchase a dress.
By using advanced remarketing, the retailer can better segment their site visitors based on product interests and interest-level or likelihood to purchase. Armed with this information, the retailer can choose to target only specific segments (for example, if they are having a dress sale they may only want to reach visitors interested in dresses with this messaging) and can dynamically customize advertising creative to reflect each user’s unique interests.
audience and Message Relevancy
A challenge that online display encountered when catching up to its search counterpart was figuring how to enhance the relevancy of banner creative. Unlike search marketing creative, which is textbased and easily produced in numerous iterations, it was not feasible for any marketer to create dozens of banner creative variations to match the variety of their display media plan. As remarketing and audience targeting began to proliferate, display creative needed to evolve. This is where dynamic creative technologies came into play. They allow marketers to create endless variations of banners with minimal expense. A stable of templates can be set up to adhere to the look and feel of the marketer’s branding guidelines, dynamic text and imagery, and automatically update with product information to eliminate the need for a creative team’s constant involvement. Testing different variations of these elements not only helps isolate the best converting versions, but also allows the marketer to tie the creative and message directly to the audience target and to a specific user. For example, a budget hotel chain remarketing to business travelers can create not just unique banners for each destination a user is looking to travel to, but also promotional messages based on whether they are a loyalty member of that hotel. in addition, the banner can display up-to-date room rates based on availability in the user’s location. Tying message relevancy to targeting is shown to be an effective tactic in driving conversions and brand awareness.
case conclusion Advanced remarketing uses more of a marketer’s own website visitor analytics to create very detailed audience segments for targeting. in addition, this form of remarketing allows for highly customized, dynamic display messaging that is tailored to each user’s unique product interests and likelihood to convert. Generally, advanced remarketing is more highly targeted and relevant to the user, thereby reducing the need to deliver more impressions (and waste budget) powering higher click-through and conversion rates.
Data can be applied in various ways to achieve different end results for a media campaign. Marketers need to consider their specific goals and target audience, and adjust the data mix accordingly to make sure it is customized to meet their needs. Audience targeting and remarketing are the most common ways that data is being used to compile audiences for display targeting, and they often work best hand-in-hand. Audience targeting can achieve reach and awareness, and drive new traffic to a marketer’s site. Remarketing helps convert more of these visitors, and drives performance goals such as revenue, ROi and conversions. Today, marketers have access to more advanced remarketing solutions that provide a fuller picture of each visitor’s behaviors and interests, which is a major advancement from standard remarketing that provides a narrow profile of only the pages visited. These advances lead to better visitor segmentation and personalized advertising creative, which results in higher conversion rates. successful campaign performance is directly
impacted by the data used behind the scenes and the tactics with which they are implemented. Marketers who have a solid, foundational understanding of the data available to them and tactics to deploy that data will be better prepared to advise their partners, and adjust campaigns to better reach their goals.
From Data to Audience
24 hOuR FiTness: ReMaRKeTing caMpaign
24 hour Fitness, a nationwide gym chain open 24/7, was seeking new ways to grow membership sales online, both nationally and in campaigns focused on specific geographic areas. They were aware of the typical brief life-time-value (lTv) of a customer and wished to drive membership enrollments of higher quality customers that would stick with the gym for many years. who visited 24hourfitness.com but did not buy a membership and delivered ads only to those who had the highest engagement with the site. This smart retargeting eliminated impression waste and drove the best impression to sales ratio and the lowest cpl on 24 hour Fitness annual media plan. The campaign ran for twelve months and became more successful the longer it ran. The retargeting audience pool grew and new users were added daily. The growing number of users helped to increase the accuracy of the targeting engine. each user’s browsing and buying behavior provided additional data that was fed into the algorithm to refine its ability to identify those that had the highest propensity to buy. Based on the data obtained from each user’s profile, the marketer retargeted the highest scoring customers with display advertising that offered a 7-day free pass within the banner itself to drive online memberships. The creative contained a simple form with minimal fields to fill in to facilitate an easy registration process. The
24 hour Fitness utilized netmining to increase response rates via enhanced targeting techniques. netmining uses a real-time scoring engine to identify and profile all site visitors, and create highly qualified audience segments based on their engagement metrics. The engine provides detailed visitor behavioral information (i.e. time spent on page, recency and frequency of visits) to determine a visitor’s true buying interest - the customers that show the most interest are more likely to become long-lasting members. 24 hour Fitness leveraged this data to rank the users
marketer tracked the passes printed, redeemed at clubs and full memberships obtained through these passes to determine the effectiveness of the campaign. This data was also collected and fed back into the scoring engine to accurately target future users. netmining helped the marketer set up local, geo-targeted remarketing campaigns, such as a two month push for new york city membership enrollments.
netmining successfully tailored a remarketing program for 24 hour Fitness that generated leads and sales cost-effectively. within twelve months, netmining was driving 10% of the brand’s total marketing leads and accounted for 40% of membership sales with just 15% of the budget initially assigned to netmining’s remarketing campaign. netmining performed better than most other marketing investments 24 hour Fitness worked with during the campaign flight, including paid search and all other display programs. netmining drove a 66% higher ROi than all other media channels. netmining’s consistently advanced converted smart the RemarketingsM visitors by
efficiently targeting only those with the highest buying propensity.
From Data to Audience
AUDIENCE TARGETING FOR BRANDING
Audience targeting has been primarily utilized for direct response campaigns where marketers measure success based on a ROI goal, like cost-per-acquisition (CPA) or overall return on ad spend (ROAS). Because audience targeting can now efficiently reach highly specific and desirable audiences at scale, it has the potential to play a vital role in attracting more brand dollars towards display advertising and online media. This chapter illustrates the key factors marketers should consider when using audience targeting for branding.
Driving Branding Objectives
Typically, audience buying for direct response initiatives is largely focused on finding users that are proven to have an affinity for or an “interest” in what a marketer has to offer. By contrast, building audiences for branding is usually about increasing awareness and consideration among a wider audience of “potential customers” or people who meet a marketer’s target demographic (e.g. Men 18-34 interested in sports cars). Many times it is more about capturing new customers and their attention in a unique and creative way.
Audience targeting for branding can be used to achieve a variety of objectives, such as: Driving awareness of a product, marketing program or other initiative among a brand’s target audience online increasing familiarity and consideration among a marketer’s target audience creating brand influencers Understanding where a brand’s complementary non-endemic audiences are
Measurement and Analytics.
Knowing the right
questions to ask will help marketers determine if the desired audience will be reached and the brand will be safe. audience – what audience do i want to reach to achieve my objective and what partners are best equipped to help me utilize data to find and target these audiences at scale? inventory – what types of inventory do i want my brand associated with and what types of inventory am i not comfortable seeing my advertising run on? how will the inventory in my program be verified to ensure that it’s brand safe and meets my stated requirements?
how to evaluate
What auDience do i want to reach? What cReaTiVe execution will most engage the audience? What MeasuReMenT & analyTics studies will help monitor the efficacy of the campaign?
creative canvas – what creative executions are available to help me engage the target audience? Measurement and analytics – what types of measurement studies or analytics are available to help me monitor the efficacy of the campaign as it relates to my objectives? Audience The types of data employed in finding and building out an audience for a brand campaign are not that different from a direct response program. Demographics, search history, past purchases and other types of data are also used for branding – it’s how they’re employed that varies based on direct response versus brand goals. For example, an electronics manufacturer can continue to leverage
What types of inVenTORy do i want to run on?
Marketers interested in running brand advertising campaigns should work with partners like Ad networks or Dsps to evaluate four key areas:
Audience Targeting for Branding
its customized audience pools to stay top of mind and run creatives without specific calls to action. The primary goal in this instance isn’t to drive conversion, it’s to enhance awareness. Inventory Context and placement brands are important factors for brand marketers. Many brands have strict guidelines on the type of content they want (or do not want) their brand associated with. They also often prefer premium, above the fold inventory to maximize the chance of the user viewing and interacting with their ad. However, marketers need to carefully consider strictness of inventory guidelines and weigh the resulting impact on the scale and reach of their programs. Publishers are realizing that the new display ecosystem can help streamline the process of matching brands with the right inventory. This relationship resembles the standard spot media buy with the simplicity of buying through an Ad Exchange. Verification Concerns over appearing next to inappropriate, user-generated or mature content have held back brand dollars. In recent years, verification companies have emerged to address this problem and can be deployed to audit placements. These services identify the location of every ad being served and flag any inappropriate sites and pages that could harm or embarrass a marketer.
Brand marketers often require their partners to segregate their inventory into brand safe categories – well-lit areas of their network where brand marketers are comfortable displaying their ads. Grouping of high value sites, commonly known as “Brand Safe,” are being packaged together to alleviate marketers concerns over where their ads are being shown. These inventory packages command premium CPMs and increase a Publisher’s yield. If evaluating a partner such as an Ad Network, for example, ask about integrated media verification services, such as DoubleVerify and AdSafe. These companies also monitor other campaign specifications, such as placement on the page (e.g. above vs. below the fold), geographic specifications and IP, quality of content (e.g. user-generated vs. premium content), share of voice on the page and more. Creative Canvas Branding objectives, such as driving increased awareness, purchase intent and loyalty, require ad creative that’s engaging and impactful. In recent years, ad format advances have been made to help fight banner blindness and encourage engagement. Rich media has become widely incorporated in campaign strategy planning. These additional formats give marketers a sizable and flexible creative canvas that allows for better storytelling and enhanced interactivity. Popular rich media
Brand marketers are seeking an all-encompassing solution to reach target audiences at scale using high impact creative in relevant, brand safe environments. challenges remain for brands looking to take advantage of audience targeting and data-driven display. Audience verification is in its infancy and scale remains a challenge. publishers and inventory partners offer varying degrees of inventory control and transparency. in addition, ad units to date have been limited in their creative flexibility. new iABapproved ad units that offer more flexibility and creative license for brand advertisers are only now being slowly rolled out. These challenges are actively being addressed by many in the industry who recognize that increased adoption of display and audience targeting for branding may be the key to shifting major dollars to the digital realm.
overlays and floating ads. video has recently emerged as a strong contender for ad dollars with the rise of brand-sponsored content and social media. Measurement and Analytics: while brand marketers want to see traditional online metrics such as ROi, cTR, impressions-to-revenue and impressions-to-conversions for campaigns, the real test of a successful branding campaign is determined by how well it meets a marketer’s brand objective – did it drive increased purchase intent or awareness? Brand studies are one way to measure this type of performance. These studies are effective for insights into how consumers react to ad creative and messaging, if ads are reaching the right audience and if there is any lift in purchase intent or awareness. Brand studies are a standard offering from many networks and publishers as a value-add to working with them. Marketers should ask these providers about their brand studies to evaluate if they’ll measure the necessary performance indicators.
Audience Targeting for Branding
WhaT is Online MeDia VeRiFicaTiOn?
co-Founder & ceO, Doubleverify
Media verification gives advertisers confidence around where their ads are being displayed and is one way to ensure brand safety and drive campaign performance online. This section will explain how media verification works and why it is important for brands.
eaching an audience of 215 million online viewers should be an advertisers dream, but advertisers often resist moving ad dollars to the web because it lacks accountability, transparency and compliance. Traditionally, verifying advertising delivery was as simple as turning on your television or visiting your local newsstand to see your commercial or print ad run. in the complicated web of online advertising, it’s not that simple. Ad networks, Ad exchanges, Dsps, yield Optimizers and other vendors have created efficiencies in online advertising marketplace, as well as additional complexity between the advertiser and the moment ads get served. A survey of more than 140 agency executives for the largest brands in the country found that 72.4% chose brand safety over scale. Advertisers and marketers are more interested in reaching the right audience on the web in an accountable and transparent
way. networks and publishers are concerned about compliance, trust and accountability too, and are looking for ways to ensure their advertising inventory is being best monetized and meeting the needs of their advertising customers. One way to ensure brand safety online is through media verification—a process that analyzes and verifies where and in what context ads appear online and ensures ad campaigns run as intended. here are the aspects of verification that you should know before starting the process and conversation with a media verification partner:
➊ What can be verified?
On average, 30% of online ads are non-compliant— they do not appear where, when or how they are supposed to. That means a third of your ad budget is wasted or even working against your brand if ads appear next to pornographic or controversial content.
Media verification tracks what sites and pages your campaign is running on, where on the page (above or below-the-fold) it appears, ads that run on international sites, ads that run next to competitor’s ads and ads that are fraudulent. The most robust solutions in the market track for non-compliance with regards to inappropriate content, geo-targeting, ad placement, competitive separation and fraud detection.
➋ big guys?
Major publishers accept or certify verification vendors to classify and track ads on their sites. The majority of inventory is purchased on AOl, Google, yahoo! and Msn. if providers aren’t certified on these sites, then a large percentage of a media buy is unverified.
➍ block or Monitor ads? Media verification is only as good as its ability to see through nested iframes and its classification component. if technology can’t provide accurate insight into the nature of the content where your ads are being placed, then you’re not going to get the best results—oftentimes your campaign will suffocate as it is subjected to inaccurate blocking and incorrect content categorization. Make sure the ability to see through nested iframes is above 95%. ➎ how to Remediate? Achieving 100% compliance on every single ad is unrealistic in the complex online advertising ecosystem. Renegade ad placements are expected, especially for larger orders. All parties involved need to remediate issues as efficiently as possible to continue with a successful partnership. RealTime reports showing how ad buys are performing, whether it be by analyzing page placement, collisions with competitors or over-saturating specific sections in addition to a knowledgeable team to work with your partners on remediation are the tools you need. These tools help you stay ahead of potential noncompliance bottlenecks and give your team a head start in correcting current and future insertion orders.
with the web audience rapidly growing, the need for verification services has also grown. Marketers want to guarantee their dollars are working for, and not against, them. And publishers and networks want to make sure they are driving the best performance for their advertisers. Understanding media verification empowers your team to get serious about staying brand-safe while deploying that ad campaign you’ve worked so hard to put together.
➌ content classification?
A common complaint digital advertisers have is that ad campaigns did not run next to appropriate or “safe” content. you’ll want to know how content on a page is analyzed and deemed safe. what variables are taken into account? what are the red flags? what parameters are used to determine if a site is brandsafe? Does the verification technology adhere to the iAB’s standard classification system or do they rate publishers themselves? vague specifications align your product with too much unwanted content. stronger limitations suffocate your campaign. Find the correct balance and make sure you’re not tripping over your own feet trying to fill an insertion order.
Audience Targeting for Branding
what’s happening around privacy impacts everyone in online advertising marketers, publishers, brands, Data providers and beyond. The industry as a whole has been battling the FTc, proposed congressional legislation, and public misperception around targeting, all while trying to self-regulate. For the first time our industry has to truly work together to protect our sustainability. industry-wide self-regulation requires support from all parties, including marketers, to stem off un-informed government rulings that could, literally, take us back to square one.
privacy takes a Village
There’s a cultural component to ensuring Ad networks, platforms, data companies and other vendors – need to share responsibility for managing and ensuring privacy compliance across the business ecosystem. Given the interdependencies that exist in our business, no one group can ensure privacy compliance on their own. This is why all parties must ensure these guidelines are upheld. privacy. One of the paradoxes of working in online advertising is the interdependency and fragmentation that exists. even the simple process of buying, targeting, delivering and reporting on a display ad often takes teams of people across different organizations to execute. Most of us take this as both a given and a cost of doing business in this space. All parties involved in this ecosystem – from the agencies and marketers to the publishers,
ways for marketers to protect themselves: Only work with media partners who are members of the network advertising initiative (nai) and/or the Digital advertising alliance (Daa). companies who join the nAi are required to adhere to privacy standards that have been encouraged by the Federal Trade commission. when you partner with a company that is not a member of the nAi or DAA, you not only impede the progress of self-regulation for our entire industry, but you put yourself at a much greater risk for a privacy meltdown. support enhanced notice enhanced notice is a concept where consumers are provided a notice of online behavioral advertising outside of traditional privacy policies. The concept was initially conceived by the FTc and has been incorporated into industry standards espoused by the nAi and DAA. The iAB, DMA, OpA, AAAA’s and AnA have signed onto enhanced notice on behalf of their membership. enhanced notice requires that the Advertising Option icon be placed on display ads which are targeting using Online Behavioral Advertising (OBA). netmining works with compliance partner evidon to ensure the Advertising Option icon appears as necessary.
Advertising Option icon (or a link that reads “Ad choices”) appears at the footer of any page where data is being collected for OBA purposes. This brings us to our next piece of privacy advice: ensure that your website privacy disclosures are compliant. Advertisers, publishers (and agencies) need to ensure that their website privacy disclosures are an accurate reflection of your privacy practices and are in compliance with industry standards. Advertisers don’t always think of themselves as publishers. however, when an advertiser collects and/or enables third parties to collect data on their sites for remarketing and other forms of OBA, this needs to be disclosed. Advertisers can ask their partners to provide sample language for their sites. This language should always include a link to the nAi opt-out site. where data is being collected on a web page for OBA purposes, that web page should have an enhance notice link at the footer.
here are the two steps for ensuring enhanced notice at the footer of each web page.
Advertisers can also work with compliance vendors such as evidon and TRUsTe to provide an enhanced notice at the footer.
➊ step 1: provide a link at the footer of every
web page to indicate participation in the selfRegulatory principles for Online Behavioral Advertising. The link should include: 1) the Advertising Option icon that can be licensed from the Digital Advertising Alliance at http://www. aboutads.info/ and 2) the phrase “Ad choices.”
Many steps are being taken by the government and members of our industry to reach a resolution around targeting that makes all sides happy. Audience targeting is a significant reason our industry is experiencing growth. Marketers can work with providers to ensure alignment with industry-supported guidelines and integrate the appropriate consumer-facing messaging.
➋ step 2: when the user clicks on the link
provided in step 1, the user should be taken to a page that includes additional information on Online Behavioral Advertising and includes an opt-out link, such as http://www.aboutads.info/ choices/
pRiVacy & Oba selF-RegulaTiOn
co-Founder, vp strategy and policy, evidon
One of the most important and relevant issues concerning our industry today is that of privacy and self-regulation. This section will explore privacy rules and regulations, what these mean for our industry and for marketers, and how marketers can use self-regulation and transparency to build a stronger relationship with consumers and brand fans.
rivacy is a hot topic issue these days and you hear about it most places you look – in
(AnA), Direct Marketing Association (DMA) and internet Advertising Bureau (iAB) created the self-Regulatory principles for Online Behavioral Advertising. The Digital Advertising Alliance was formed in October 2010 to address the implementation of the self-Regulatory effort, while the DMA and counsel of Better Business Bureaus (cBBB) were charged with leading the enforcement effort. The DMA and cBBB will be using a monitoring platform provided by evidon, as well as consumer and competitor-based complaints to aid in enforcement.
the media, in D.c., and in the industry. privacy issues in online advertising came to a head in February 2009 when the Federal Trade commission released a staff report calling for more transparency into and control over how consumers’ data is used in online ad targeting. in response to this call for more transparency, a cross-industry coalition composed of the American Association of Advertising Agencies (AAAA), (AAF), American Association Advertising of national Federation Advertisers
regulatory program as an opportunity to build trust with consumers by providing a new layer of transparency and control over their online experience. notice becomes a signal to consumers that the brand cares about consumer privacy and has nothing to hide, in addition to being OBA compliant. consumer research from november 2010 by evidon shows that 67% of consumers feel more positive towards brands that give them control including opt out options, and 36% are more likely to buy from transparent brands. working with a provider such as evidon allows brands to benefit from consumer brand equity created from a robust notice experience, while ensuring a consistent level of information and centralized audit trail across all media buys. Of course, the landscape has hardly remained static since the arrival of the program. consider the following milestones over the last 8 months: The FTc issued a new staff report in December 2010 calling for the self-regulatory program to show more rapid progress and supporting a new Do not Track mechanism The BBB and DMA launched their self-regulatory enforcement programs Mozilla, safari, and ie all announced (or otherwise leaked) embedded support for Do-not-Track headers evidon surpassed 30 billion in ad notices served
company leveraging 3rd party behavioral data; this can include anyone in the online advertising ecosystem from brands to website owners, from networks to agency trading desks. The principles define OBA as “the collection of data online from a particular computer or device regarding web viewing behaviors over time and across nonaffiliate web sites for the purpose of using such data to predict user preferences or interests to deliver advertising to that computer or device based on the preferences or interests inferred from such web viewing behaviors.” Advertising tactics such as retargeting and 3 party audiencerd
based buying are great examples of OBA. To demonstrate compliance with the program, brands need to provide enhanced notice and choice to consumers on campaigns and owned websites where third party behavioral data is being used or gathered. notice usually consists of the Advertising Option icon ( ) and accompanying Adchoices text. Behind this notice, the brand should provide the consumer the ability to opt out of future behavioral targeting from the applicable data providers. Many brands choose to work with a DAA-approved provider such as evidon to manage the technical specifics of the implementation of notice and choice and to ensure a best-in-class user experience.
The iAB europe announced an eU selfregulatory program Bills addressing online advertising privacy have been introduced in congress with bipartisan support, including the Kerry & Mccain ‘commercial privacy Bill of Rights,’ Representative stearns’ ‘consumer privacy protection Act of 2011,’ and senator Rockefeller’s ‘Do-not-Track Online Act of 2011’ The FTc is already armed with sufficient
so, through all of the far-reaching noise, what is a marketer to do? smart marketers are focusing on what they can control and thinking strategically:
➊ lead with transparency as a brand strategy, not
just a compliance strategy.
➋ Get with the self-regulatory program. in the
last 8 months, the self-regulatory program has come of age. it’s critical for the preservation of the OBA industry, and its participants are already being recognized as leaders by the BBB, congress, the media and agencies, through their RFps. we can’t predict the future, but we can focus on core marketing principles and take ownership of our relationship with the consumer. And while the firmament around Dc, Brussels and the browser manufacturers continues to settle, our best weapon against business disruption is an effective, broadly adopted self-regulatory program.
authority to regulate OBA, and they remain the most significant governmental force monitoring the market. Browser based DnT mechanisms represent a new influence on the market, ostensibly operating on behalf of the consumer, with the potential for an even greater impact than government. The bills circulating in congress, while they gain the most headline coverage and have the potential for significant impact, are hard to handicap, both in substance and timing. perhaps more importantly, they are being written with OBA self-regulatory program in mind, and several have safe harbor provisions for companies that participate in the program.
WhaT’s neXT FOR DaTa-DRiVen Display?
The display landscape is continuously evolving with many technology innovations still to come. Moving forward, much of these innovations will address brand marketers’ needs around measurement, standards and transparency to attract more dollars to online advertising.
Direct response dollars have been a major catalyst for the state of our growing display business, but brand budgets will be the real game changer for data-driven display. Advances in technologies, such as across hypertargeted online video, digital television and social media, are finally convincing brand marketers to take a closer look at how data can deliver more impactful digital advertising. what’s more, many in the industry are actively working to encourage conversions and
need to significantly shift more display to their media mix. Brands are investing heavily in online activities to get more social and interactive with their audiences. Online advertising plays a significant role in their broader brand marketing mix. The industry can expect larger budgets, longer campaign flights, engaging creatives and more consistent brand dollars to flood the market. For more on future developments in data-driven display, we asked industry insiders spanning the market for their perspectives on the developments ahead:
consensus around proper measurement and privacy standards, which helps provide brands the reassurance and approved standards they
scott portugal Vp business Development contextWeb
Audience targeting will cease to exist as a standalone tactic – it will become the entire media plan, with the likes of social/contextual/search/ retargeting mechanisms all used in cohesion. we will finally settle on a few core “value” metrics (exposure value, engagement value, click value, conversion value) that help marketers better understand user movement down the decision purchase funnel, creating a holistic digital audience strategy. with publishers building out private exchanges, real-time audience buying in display, video, mobile, and social will be utilized as a brand vehicle as much as a performance tool. publishers will self-declare “sponsorship” packages with price floors in real-time, allowing for more efficient deployment of real-time budgets into brand safe environments. This will lower the cost of getting campaigns to market (on the sell side, too), meaning sales teams will be able to focus more on mid and long tail buyers who are currently underserved outside of a few local sales teams. strong RTB usage today means strong local budgets tomorrow.
Jeff huter Vp agency Development eXelate
Too often, 3rd party audience data is viewed as a simple means to achieve performance lift, which leads to a short term evaluation on a simplistic pass or fail grade system and overlooks the larger benefits of 3rd party data. looking ahead, 3rd party audience data will prove to have additional value to a marketer’s overall communication plan. Marketers must have a continual dialog with the audience segment they are targeting as consumers can evolve into buyers. in addition, understanding in-market/intent behaviors aggregated from outside your domain provides valuable insight that can fuel a more holistic communication strategy. inspection of the audience segment will reveal additional characteristics about these shoppers that may be worth considering as a direct targeting attribute. The comparison of particular brands to this group may also inform underutilized audiences for targeting prospects. effective audience targeting in the future will be graded on a new system that considers contribution and performance throughout the semester, not just the final exam.
what’s next for Data-Driven Display?
philip smolin Vp product & Marketing Turn
The digital advertising industry is undergoing a rapid and dramatic evolution. it began with the introduction of auction markets, continued with the advent of Dsps and further accelerated with the introduction of RTB. in fact, the adoption rate of RTB has been explosive, with almost 50% of display advertising now available through RTB. The next evolution of RTB has already begun with the introduction of private seats and ‘prioritized bidding’. This new functionality enables publishers to make premium inventory available to select buyers at pre-defined prices. But it’s the third evolution of RTB which will be the most interesting. in 2012, RTB will expand further to begin supporting what are called ‘forward markets’. Today’s Ad exchanges are spot markets where each impression is sold in real-time (and without any guarantee of future delivery). in contrast, forward markets will enable a buyer to view what impressions a publisher has for sale one day, one month or one year into the future. The power of this model is its ability to combine audience targeting and algorithmic optimization with premium content and guaranteed sales. The concept of prioritized bidding and forward markets will revolutionize not just basic display advertising
but all digital marketing. sophisticated rich media units, video, mobile and even digital-out-of-home inventory will all be sold through RTB. The end result for advertisers is incredibly exciting, where true multi-channel campaigns and up-front buys can be planned, purchased and optimized with the single click of a button.
David cohen eVp global Digital Officer uM Worldwide
Today, we have well developed data and audience targeting ecosystems that are largely bound by platforms. Deep resources exist in the online and mobile ecosystems with rapid growth across a wide range of cable, satellite and over-the-top television solutions. The greatest area of evolution over the next two years will be the convergence of these data constellations into one holistic view. The race to a platform neutral world is red hot today. sony, Microsoft, Google and Apple are all aligning their assets into a delivery agnostic ecosystem which will provide a single insight across all consumer touch points. Marketers will soon be able to deliver custom and relevant messages at the right time regardless of delivery mechanism. it is at that point that we will have entered an era of marketing relevance that we have only dreamed of to-date.
What’s Next in Europe Michael Stephanblome Co-Founder & CEO AdJug
The Display Marketplace in Europe has generally lagged behind the US market in terms of size, adoption of new technologies and availability of online data. While real-time bidding (RTB), Demand Side Platforms (DSPs) and Advertising Exchanges are now forming an important part of the overall US Advertising Ecosystem, they are just starting to gain traction in Europe with the UK leading the way and France and Germany following. In 2011, European marketers finally established display advertising as a relevant performance marketing channel next to paid search and affiliate marketing. This has been driven by three main factors:
All of the above have led to a strong rise in media spend in sectors that had previously ignored display. With paid search nearing user saturation in Europe, many e-commerce companies are seeing higher click prices and are looking for additional channels to diversify into. So what’s next? Because of these vastly improved targeting capabilities, display advertising in Europe is set to grow aggressively beyond remarketing. Marketers will find smart, hybrid solutions for building their brand and driving performance for sales, while at the same time making use of new conversion attribution methods and dynamic pricing. Never has data and analytics-driven marketing around the consumer been more important than in this new age of advertising technology.
➊ The availability of large amounts of low price
social media inventory through Ad Networks and Exchanges.
➌ Better creative capabilities through real-time
personalization of banners and direct targeting of products and services within the creative based on previous user behavior. 64 What’s Next for Data-Driven Display?
glossary Terms 1st party Data 3rd party Data Definition Any data that is created or owned by the marketer. information acquired by other data aggregators. sources are diverse and varied - it could come as a direct source from publishers, retailers and e-commerce sites or even offline data providers who have found ways to utilize their data to target people online. Online auction marketplace that facilitates the buying and selling of inventory across multiple Ad networks and Dsps. An online advertising service provider, often with proprietary technology, that helps marketers run display advertising campaigns across various sources of online inventory, including direct publishers and Ad exchanges. Ad networks typically include other services as part of their media campaigns, such as ad serving, media verification, privacy notification, reporting, data and/or audience targeting. A technology platform used by the advertiser and publisher to deliver and track ads across inventory. A person or company that displays another party's ad on its site (usually for free) and is paid based on the activity or cpA driven by the displayed ad. Determining exposure and crediting the appropriate party or media channel with the effectiveness of the exposure which ultimately led to a user conversion. Developing display campaigns that target specific segments of the population. information collected based on an individual’s web-browsing behavior and preferences.
Glossary Terms Brand Safety
Definition The prevention of ads from appearing on web pages with inappropriate content and placement. Information related to a website's page contents. The Digital Advertising Alliance (DAA) is a self-regulatory body that develops industry best practices and effective solutions for consumer choice in online behavioral advertising (OBA). Technology platform that acquires data (usually from 1st and 3rd party) and segments this into a taxonomy that allows buyers to identify the data they most wish to target. Online auction marketplace where advertisers acquire 3rd party data that helps them better reach their target audiences with display. Follows consumers and tracks their online behavior in order to segment the consumers into groups based on the collected information. Advertisers buy the ability to target specific groups from Data Suppliers. Information regarding the size and characteristics of a particular population of people of interest to the advertiser, such as age, sex, income, education, size of household, ownership of home, etc. This does not include psychographics based on the subjective attitudes or opinions of consumers. Technology platform that assists in the buying or negotiating of data sources and data costs. Allows marketers to take control of their data in a unified environment. An advertising technology platform which allows marketers to manage their online media campaigns by facilitating the buying of auction-based display media and audience data across multiple inventory and data suppliers in a centralized management platform.
Contextual Data DAA (Digital Advertising Alliance)
DMP (Data Management Platform)
DSP (Demand Side Platform)
glossary Terms Dynamic creative
Definition Targeted messaging with multiple iterations that are adjusted and delivered to different audiences based on data about the particular prospect to determine which ad would have the greatest effect . Founded in 1996, the interactive Advertising Bureau (iAB) is the leading online global advertising industry trade association that evaluates and recommends standards and practices, fields research to document the effectiveness of the online medium and educates the advertising industry about the use of online and digital advertising. performance metric used to evaluate the success of campaign activity.
iab (interactive advertising bureau)
Kpi (Key performance indicator) lookalike
The tactic of identifying a new audience set who have similar attributes to an existing segment that is being targeted by a marketer. The verification that ads are delivered in compliance with the advertiser's insertion order terms, conditions and buying guidelines. Formed in 1999 in response to consumer concerns over the use of profilebased targeted online advertising, the network Advertising initiative (nAi) is a cooperative of online marketing and analytics companies committed to building consumer awareness and establishing responsible business and data management practices and standards for sophisticated online advertising technologies. Any provider who sells data online. in display, this refers to appending a tag to an existing tag, which triggers the sharing of campaign performance data. The owner of the website where ads are displayed. The act of finding a marketer’s past website visitors across the web and delivering them display advertising with the goal of driving them back to the site to complete an action.
Media Verification (aka ad verification) nai (network advertising initiative)
Online Data provider piggyback (see Tag)
publisher Remarketing (aka Retargeting)
glossary Terms Rich Media
RTb (Real-Time bidding) social graph
ssp (sell side platform, aka supply side platform and yield Optimizer) Tag
A piece of html code that communicates to a browser in order to interpret the content of a page. in ad serving, the browser uses the tag to identify and fetch the designated ad from an Ad server. Refers to using a universal container tag across all advertising platforms to enable simplified and seamless tracking. "A group formed within a holding company or agency that has been designed to be a clearinghouse for a holding companies’ media needs. The immediate connection to marketers aim to drive better decisions on media buying based on direct data and consequently, cost efficiency. Using online video inventory to execute audience targeting tactics. (see Audience Targeting).
Trading Desk (aka Media buying Desk)
netmining is a provider of display targeting solutions, including custom audience targeting, advanced remarketing and video, that harness real-time customer intelligence to improve display performance. with an audience profiling engine that understands each individual’s interests and buying propensity, netmining enables companies to deliver highly relevant and personalized online advertising across the entire customer lifecycle. netmining is a member of the interactive Advertising Bureau (iAB), the network Advertising initiative (nAi) and the Digital Advertising Alliance (DAA).
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