eMarketer Webinar: Reaching the Right Audience—Ad Targeting Trends
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Transcript of eMarketer Webinar: Reaching the Right Audience—Ad Targeting Trends
©2011 eMarketer Inc.
David Hallerman
Principal Analyst
O C T O B E R 1 3, 2 0 1 1
Reaching the Right Audience—Ad Targeting Trends
Sponsored by:
©2011 eMarketer Inc.
What we’ll look at today…
Primary and secondary goals: today’s display advertising market, and how that affects a marketer’s goals and approach
Targeting’s place in the scheme of things: how it helps greatly and reasons not to rely on it entirely
Choices for targeting tactics: at least 16 ways to target, and how they might fit into your marketing goals
Data types and sources: several pros and cons for getting and using data
Testing and measuring: ways to build targeted display campaigns interactively
Audience attitudes: how they influence data collection and advertising’s relevancy
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Marketing Goals, Targeting’s Purpose
(hint: the goal isn’t targeting)
Display ad spending includes:
• banners
• rich media
• sponsorship
• video
Over one-third of marketers cited improving segmentation and ad targeting among their leading priorities
Relevancy is key when marketers look to influence an engaged, if often diverse, audience
Publishers sell slightly more targeted ads for branding than for direct response
Jacob Shin, director of online marketing, Savings.com
“Our primary goal is, like most companies, twofold. One is create brand awareness and then, secondly, is to drive conversion.”
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Data supports targeting, which supports strategic goals, which supports ROI
DataTargeting
Goals
$$$
But to get to a company’s real goals means building the pyramid top down
$$$Goals
TargetingData
Let’s look more deeply at the concept of targeting and several of its implications
Shawn Riegsecker, president, Centro
“When it comes to audience targeting, close enough is all
you need.”
The holes in various targeting concepts are due to technology and its usage
Targeting Types
(and ways to blend them)
Top level: About 30% of advertisers cite content targeting as most important vs. the 70% who favor audience targeting
Shawn Riegsecker, president, Centro
“For brands, content as a proxy for audience and
making sure their brand is shown in the right
environment is critically important. To lower-tier,
direct-response-only types of clients, content is
meaningless.”
Content targeting is a time-honored method that has key benefits
Content targeting elements:Most traditional type: matches the content on the page with the expected audience for such content; think sports content, males 18 to 35 and beer
Often high-end online: the bulk of premium display ad space is bought with content targeting in mind
Appeals to: brand marketers are accustomed to using content as proxy for the audience they’re trying to reach
When it’s effective: supports the brand marketer’s desire to be associated with high-quality websites and trusted content
Caveat: some believe that content as a stand-in for the actual audience is an inexact form of targeting
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Both content and audience are equally important for online brand campaigns
There are at least 16 different types of ad targeting, often used in tandem
Audience-focused ad targeting depends most highly on these methods
Content-oriented ad targeting depends more so on these methods
Used the most: three basic targeting techniques
Another study: demographic and behavioral targeting most important
Demographic data supports most forms of audience segmentation
Demographic targeting elements:Timeless: slices up the audience by elements such as gender, age, income and education
Flexible: also includes categories such as moms or dads, race and ethnicity
Easily obtained: among the most freely given data types
When it’s effective: enhances nearly all other types of targeting by better identifying the audience
Caveat: still a proxy method, because all the people of any group rarely have similar desires
Also: following demographic cues can cause marketers to miss out on other groups that would be open to their pitch
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However, US mobile advertising, still emergent, leans toward demographic and geographic targeting, less so behavioral
Targeting by behavior is a wide-ranging way to reach the audience
Behavorial targeting elements:Profiles audience segments: marketers identify the segments of people they’re looking to reach based on what groups of users have done recently
Behavior broadly defined: based on some kind of activity, including content viewed, forms filled out and search queries
When it’s effective: turns generic or remnant display inventory into something akin to good contextual placements
Also: many large publishers offer premium inventory on their sites for targeting by audience behaviors
Caveat: a portion of the inventory sold for behavioral targeting is not brand-safe, since the context cannot be fully vetted
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About one-third of marketers cite data-driven behavioral targeting as a main focus of their entire digital strategy
While behavioral most cited for video ad targeting, contextual strong too
Targeting by context can help find an engaged audience
Contextual targeting elements:Also called keyword targeting: uses text or other content data, such as page meaning, to automatically place display ads (other types of ads, too)
Cost-effective: a useful way for both brand and direct response marketers to reach an audience that indicates interest in a related topic
When it’s effective: gives marketers some of the benefits of content targeting but with the speed of programmatic buying
Caveat: just as with content targeting, contextual is often considered a proxy for finding specific, interested audiences
Also: the technology sometimes fails in discerning the exact context and gives poor, sometimes embarrassing, placement
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Holly Dunn, vice president of digital, Draftfcb
“We use look-alike modeling. It’s basically
saying that we know that our target responders
happen to look like this and, therefore, we can
target other people who look like that.”
Look-alike targeting creates new segments from new data gathered
Look-alike elements:Interactive: builds new segments that are similar to what marketers have discovered from previous target responders
Data source: generates statistical models based on first-party advertiser data, e.g., website visitors or offline purchasers
Expands: can also segment based on psychographics—groups based on qualities such as personality, locale, values, spending patterns, attitudes, interests and lifestyles
When it’s effective: highly useful for finding audience groups that are liable to find display ads relevant
Caveat: problems with scale can arise, especially for niche offerings where the look-alike pool can be small
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Look-alike targeting seems to promise exact and happy matches
Actual look-alikes are close, same group, but not exact (really another proxy)
Retargeting used more and more to find an engaged audience
Retargeting elements:Intent shown: serves display ads to an audience that has already indicated interest in the marketer’s offerings
Useful for multiple goals: can be highly effective for direct-response goals—and even some brand messaging
Search retargeting: marketers target the audience with display ads, typically banners, using search keyword data
When it’s effective: highly effective at conversions; can also give additional reach for brands using video advertising
Also: search retargeting works best with marketers’ own data
Caveat: can waste spending if the audience would have converted anyway without the display ad
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Most publishers offer marketers some form of retargeting
Accurate retargeting a prime reason for audience response
Genny Drennen, media director, Fraser Communications
“We may do display retargeting off of a
pre-roll video view in order to get additional
frequency.”
Retargeting for video, for branding, a common and growing niche technique
Increasingly, marketers see the most effective ad targeting blends methods
Increasingly, marketers see the most effective ad targeting blends methods
Gathering and Using Data
(gold, silver, bronze)
Data is the gold standard, the new black, etc., for online marketing
Four basic data types
First-party (shared): information that visitors provide directly to the site; often seen as the most valuable form of data
First-party (server): information gathered about visitor activities using cookies and web analytic tools
Second-party: information obtained through partner companies, such as registration data
Third-party: information that vendors develop through each company’s proprietary blend of offline and first-party data
Twitter – #eMwebinar
Most of the types of data used to improve marketing also help perfect targeting
One way to obtain high-quality first-party data is by asking and giving, making the trade-off clear
Some of the most important data for behavioral targeting also needs to tie into a company’s systems
65% of marketers say data about visitor behavior is only somewhat effective
Jaffer Ali, chief executive officer, Vidsense
“If you are a marketer, you must understand
the limitations of historical data.”
Three streams, mainly from FB and Twitter, flow into the social data pool
The social graph: shows who is connected with whom and their various activities; can be especially useful for behavioral-type audience targeting
Brand followers: similar to registration data on media, brand or retail websites, in that it’s detailed information voluntarily given
Real-time data: gives marketers insight into trends and attitudes about products, places and people; more helpful for creating content and contextual ad targeting models than directly for audience targeting
Twitter – #eMwebinar
Emily Iverson, director of display, Booyah Online Advertising
“We look at a user’s social circle…to find
their friends and family and people who look like them out in the
social world and then go ahead and target
them.”
Giving value to audience for their data is highlighted in the social space
At its most effective, social data lets marketers connect the dots in their target audience
Social-site data marketers get from fans may not always work well for targeting
As marketers gather data, they can use it in two main ways
Traditional approach: use based on how marketers categorize their target audience prior to running the ad campaign
Interactive approach: use based on an ongoing analysis of who responds in some way after the ads have run
Twitter – #eMwebinar
Carl Fremont, global media director, Digitas
“Most audience modeling is done up front, and then you’re
just refining it with further insight.”
John Shea, vice president of strategy, Rimm-Kaufman Group
“Overall we do an array of targeting and just let the data guide
us to what works best.”
57% of advertisers and 53% of agencies said 2 or 3 targeting segments are optimal
Testing and Measuring
(creating better results)
Nearly every detail involved in display advertising is ripe for testing
what segments to target
what targeting techniques to use
where and how to obtain data
what types of data work best
which display ad format(s) to use, and where
through what channel to buy ad inventory
what elements to put into the ad creative
what call to action is most effective
Twitter – #eMwebinar
Holly Dunn, vice president of digital, Draftfcb
“We test a lot when we begin all of our campaigns. So we have a two- to three-week
test-and-learn period where we validate our target, the
message, and the environment that we’re
running in.”
Only a minority of companies say that testing tactics are very effective
Measuring a tested campaign makes the next round of advertising more effective
Measured results from prior campaigns are a top source for improved targeting
What Gets the Audience’s Attention
(and what loses it)
More targeting has produced more relevancy, but still more is needed
The audience tends to drop out or tune out if ads aren’t relevant
Internet users regularly contradict themselves about their desire for advertising relevance
User attitudes about tracking create significant limits for targeting
Most people simply do not want to be tracked, to have their data collected, or to be targeted (perhaps it’s the language)
Giving users opt-out control is not unlike value exchange for prime data
Conclusions
©2011 eMarketer Inc.
Starting with secondary goals can lead to targeting choices.
Consider the importance of reach vs. deeper engagement.
Where do you want to be in the marketing funnel?
A blend of targeting techniques creates more accurate segments.
Targeting gives marketers only so much audience information.
Better, more accurate data tends to cost more (caveat emptor).
Data from social sites offers useful segments, but might be overrated.
Testing gives marketers a broader array of measurable results.
Relevancy is the audience bottom line.
But audience resistance to being tracked or having their data collected can reduce targeting’s effectiveness.
Conclusions:Targeting helps reach the right audience
Online Data Targeting
Optimizing Media Drives Higher CTR
Media Optimization
Percentage of Campaigns that Performed Above Baseline
34%
80%
Audience Optimization
Content is (Still) KingImproving CPA with Media Optimization
Cost-Per-Action
Applying Targeting & OptimizationGoals
Establish and Communicate
Campaign Goals
Leverage Historical Performance & Targeting Data
Deliver Campaign and Generate
Reporting
Monitor Performance &
Adjust Targeting Techniques
Thank YouJared M. SkolnickVP, Product [email protected]
©2011 eMarketer Inc.
Reaching the Right Audience—Ad Targeting Trends
Questions & AnswersRegistrants will receive an email tomorrow that includes a link to view the deck and webinar recording.
For more discussion, please join us after the webinar on LinkedIn. Search for the eMarketer Group and click on Discussions.
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Sponsored by:Presented by:David HallermanPrincipal Analyst, eMarketer, Inc.