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    DATA

    MANAGEMENT

    PLATFORMSUsing Big Data to Power

    Marketing Perormance

    MAY 2013

    Lauren T. Fisher

    Contributors: David Hallerman, Tracy Tang, Mitchel Winkels

    Read this on

    eMarketer or iPad

    https://itunes.apple.com/us/app/emarketer/id611556300https://itunes.apple.com/us/app/emarketer/id611556300https://itunes.apple.com/us/app/emarketer/id611556300https://itunes.apple.com/us/app/emarketer/id611556300https://itunes.apple.com/us/app/emarketer/id611556300
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    DATA MANAGEMENT PLATFORMS: USING BIG DATA TO POWER MARKETING PERFORMANCE 2013 EMARKETER INC. ALL RIGHTS RESERVED 2

    CONTENTS

    3 Data, Todays Digital Advertising Currency

    7 Targeting

    10 Digital and Cross-Platform Attribution

    12 eMarketer Interviews

    13 Related eMarketer Reports

    13 Related Links

    13 Editorial and Production Contributors

    EXECUTIVE SUMMARY

    Theres a big to-do about Big Data and data

    management platorms (DMPs) in the digital

    advertising space. From audience targeting to

    cross-platorm measurement and attribution, DMPs

    enable marketers to use their Big Data to make

    smarter and more efcient marketing decisions.

    But like any new trend, buzz currently surpasses expert

    adoption and usage. Brands are using Big Data to build a

    holistic picture o their potential and real customers and

    then target those users, but many still nd it challenging

    to extract cross-channel insight rom that data.

    For now it seems most brands have access to DMPs

    through their programmatic inventory providers, like

    demand-side platorms (DSPs) or ad exchanges. Because

    o this, the majority o DMP use comes in the orm o

    audience targeting. But the real value o DMPs is their

    ability to provide a more strategic view o digital or

    cross-platorm perormance. Though marketers are just

    beginning to use them or this purpose, many are already

    hopeul DMP usage will yield real-time campaign insights.

    KEY QUESTIONS

    What are Big Data and DMPs?

    How are marketers using DMPs or

    audience targeting?

    How are publishers using DMPs or audience

    targeting?

    How are marketers using DMPs or digital and

    cross-platorm attribution?

    How are DMPs dierent rom CRM platorms?

    % of respondents

    Important Priorities for Future Data ManagementPlatform (DMP) Support According to US MarketingProfessionals, Sep 2012

    Customer insight development 93%

    Targeted media buying 90%

    Campaign/channel attribution 86%

    Multichannel integration & optimization 84%Emerging channel deployment 84%

    Channel optimization 83%

    CRM program optimization 76%

    Creative content optimization 73%

    Site content optimization 69%

    Advertising yield optimization 59%

    Note: respondents include advertisers, marketers, publishers, technologydevelopers and marketing service providersSource: Winterberry Group and Interactive Advertising Bureau (IAB), "TheData Management Platform: Foundation for Right-Time CustomerEngagement," Nov 12, 2012

    153583 www.eMarketer.com

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    DATA MANAGEMENT PLATFORMS: USING BIG DATA TO POWER MARKETING PERFORMANCE 2013 EMARKETER INC. ALL RIGHTS RESERVED 3

    DATA: TODAYS DIGITAL

    ADVERTISING CURRENCY

    Nearly every action taken in the digital space requires

    data input and results in data output, putting

    a massive amount o inormation at marketers

    disposal. Data is the currency o todays digital

    advertising ecosystem, and everything rom media

    planning to analyticsand every campaign execution

    in betweenruns on it.

    Columbia Business School and New York American

    Marketing Association (NYAMA) ound 91% o US

    marketers surveyed believed successul brands used data

    to drive marketing decisions.

    But research suggests this is no easy task. Zi Davis

    ound 49% o companies polled worldwide had enacted

    a data management strategy as o all 2012, andaccording to a survey rom IT stang service Robert Hal

    Technology, just 23% o US chie inormation ocers

    (CIOs) said they were collecting customer data such

    as demographic inormation or buying habits. O that

    small percentage, less than hal (46%) reported having

    the resources or systems to analyze the inormation

    they gathered.

    Yes23%

    No76%

    Don'tknow2%

    % of respondents

    Collection of Customer Data and the Use of the Datato Generate Strategic Reports and Insights Accordingto US CIOs, Nov 2012

    Note: *email addresses, demographics, buying habits, etc.; **have atechnology team with sufficient personnel to access and generate strategicreports and insights from the customer data they collectSource: Robert Half Technology as cited in press release, Jan 24, 2013

    150952 www.eMarketer.com

    Companies thatcollect customer data*

    Companies that havesufficient resourcesto utilize** the datathey collect

    Yes46%

    No53%

    Don'tknow2%

    To address the Big Data surplus and begin to convert this

    currency into actionable results or digital advertising and

    uture marketing initiatives, many marketers are looking

    to DMPs.

    BIG DATA

    The high value placed on data in todays advertisingecosystem has heightened ocus on Big Data: a

    catch-all phrase that describes any data or inormation

    a company collects on its audience, customers or

    users. A very general term, Big Data can reer to

    rst-party customer inormation, third-party audience

    data, ofine purchase data, online advertising behavioral

    data, campaign analytics and much more. Alone, each

    o these data assets describes some aspect o a users

    actions, interests and intent. When combined, they

    become Big Data.

    According to Dr. Mark Grether, COO o Xaxis, GroupMsagency trading desk, Big Data typically alls into

    three categories:

    First-party data. This is any inormation the advertiser

    or company owns and collects, or example, customer

    relationship management (CRM) data, in-store sales

    data or advertising campaign data. First-party data is

    the oundation or any audience insight, analysis and

    attribution and is the cornerstone o any Big Data strategy

    Third-party data.This is any inormation purchased rom

    a data reseller or provider, most commonly in the orm

    o cookies. Companies like BlueKai, Bizo and eXelate

    are common third-party data providers. Such cookie data

    could be demographic in nature; it could be psychographic

    or even behavioral. This inormation is commonly used

    in campaign targeting, identiying additional prospects

    and enhancing campaign analytics. Data can be either

    native to digital (or example, rom ecommerce sites or

    publishers) or rom a traditional data source (or example,

    customer loyalty data or ofine purchase data). Any

    advertiser or publisher can rent this data, so it is not

    uncommon or many companies to be using the same

    set o cookies to power their audience targeting or other

    display advertising eorts.

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    DATA MANAGEMENT PLATFORMS: USING BIG DATA TO POWER MARKETING PERFORMANCE 2013 EMARKETER INC. ALL RIGHTS RESERVED 4

    Second-party data.This is any inormation that display

    ad inventory providers such as a DSP, ad exchange,

    agency trading desk or supply-side platorm (SSP) owns.

    All o these inventory providers and sellers collect data,

    which they make available to companies using their

    services. For example, advertisers using a DSP to execute

    their display ad buys can have access to any number o

    user cookies or ad placements across the DSPs network

    o partners. Companies that do not use one o theseservices would not be privy to second-party data.

    Grether also noted another data type that companies

    could include in their data management strategy.

    Reerred to as external data, this category included

    other inormation sets that can be tied in to determine

    causal relationships and ad perormancesuch as the

    weather, nancial trends and current events. For example,

    a nancial investment rm might track stock market

    fuctuations to determine the eect on new account

    sign-ups. What is dierent about this inormation is that it

    does not pertain to any one individual or user.

    Bear in mind that hundreds, i not thousands, o data

    assets can t into each o the categories mentioned

    above. As a result, marketers have the potential to include

    just as many datapoints in their Big Data strategies.

    However, most marketers agree that when it comes to

    Big Data, bigger isnt always better.

    Its not Big Data that were interested in, said Troy

    Lerner, president o Booyah Advertising, an ad agency

    that recently built is own agency trading desk. Its resh

    data and rst-party data. Thats what we want.

    Determining which data is right or a Big Data plan is only

    one step toward converting those assets into actionable

    insight. Companies must then organize and standardize

    the inormation into meaningul segments.

    It can prove challenging to integrate disparate sets o

    data coming rom social media, campaign analytics,

    ofine sources or third parties. In act, Big Data solution

    provider Inochimps surveyed IT proessionals in North

    America, and 83% o respondents said processing such

    inormation was a leading Big Data challenge, ollowed

    by managing the inormation (42%) and analyzing the

    data (41%).

    % of respondents

    Leading Big Data Challenges According to ITProfessionals in North America, 2012

    Processing the data

    83%

    Ongoing management of the data

    42%

    Analyzing the data

    41%

    Source: Infochimps, "CIOs & Big Data," Feb 6, 2013

    152611 www.eMarketer.com

    The one thing thats so dicult about Big Data is that

    at the end o the day, its about those big insights, said

    Sean Muzzy, CEO o Neo@Ogilvy. People want those

    key nuggets that, having all o this data in one place, you

    can actually uncover.

    To uncover those insights by organizing, processing and

    analyzing this data, most marketers are turning to DMPs.

    For more on how marketers are using Big Data

    or ecommerce, please see eMarketers May 2012

    report, How Retailers Are Leveraging Big Data to

    Personalize Ecommerce.

    DMPSI data is the currency o digital marketing, then the DMP

    is the bank. Big Data is stored and standardized here so

    that each data asset can be tied to a particular customer

    or audience segment. Once standardized, marketerscan use that inormation to power multiple unctions,

    both within digital and across a companys broader

    marketing program.

    The DMP is really a central nervous system that allows

    you to compile all o these data sources and turn them

    into a meaningul set o [audience] segments that you can

    use or multiple purposes, said Tim Waddell, director o

    product marketing or AudienceManager, Adobes DMP.

    Waddells analogy highlights both the uniqueness o a

    DMP as well as its place within the ad tech ecosystem.

    As he states, a core use o the DMP is to organize and

    house a variety o data sourcesa unction thats not

    much dierent rom other marketing databases like a

    CRM system, analytics tool or call center database.

    http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000907http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000907http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000907http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000907
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    DATA MANAGEMENT PLATFORMS: USING BIG DATA TO POWER MARKETING PERFORMANCE 2013 EMARKETER INC. ALL RIGHTS RESERVED 5

    As the primary repository or customer data, one might

    assume a database such as a CRM system would

    suce or Big Data. But CRM tools are only capable o

    housing certain sets o customer inormation and data

    and in limited amounts. What sets a DMP apart is its

    ability to house a much larger and broader spectrum o

    inormation. Marketers use DMPs to integrate inormation

    rom all marketing databases, including a CRM system, in

    addition to many other data sources.

    DMPs can house both structured data, typically

    quantitative in nature, as well as unstructured data, oten

    qualitative in natureor example, social network data.

    Once all o these disparate sources are entered, DMPs

    can standardize them to build a larger, more descriptive

    picture o a customer or audience base marketers can

    act on.

    The DMP is undamentally dierent in that it allows

    us to generate a much broader view o the consumer

    journey than most digital technologies would have accessto, said Richard Lloyd, Xaxis data management platorm

    director. In an ad server, or example, you might only

    see a subset o the total volume o events a consumer is

    participating in. The DMP gives us a complete history o

    that journey that we can use to really understand which

    components o that journey are actually driving value rom

    an engagement or conversion perspective.

    The DMPs central role within the advertising technology

    ecosystem makes it possible to act on this audience

    intelligence in a variety o ways. It is one o the ew

    technologies that integrate with nearly every other

    system required to execute and track digital advertising

    programs: marketing automation, CRM systems, ad

    servers, dynamic content servers, email marketing tools,

    attribution tools, ad verication sotware and much more.

    This positions the DMP as the urnace o the digital ad

    enginea capability that has only been leveraged within

    the past couple o years.

    Eighteen months ago, a DMP was just a big box sucking

    in data, said Mark Zagorski, CEO o data provider

    eXelate. Now you have two branches emerging: There

    are data marketing platorms, which allow us to activate

    all o that data or targeting and more ecient ad delivery,

    and then theres the data analytics side, which allows

    us to use the data to better inorm online and ofine

    marketing decisions.

    For more about the DMPs place within the digital

    advertising ecosystem, please see our October 2012 report

    eMarketers Guide to the Digital Advertising Ecosystem:

    Mapping the Display Advertising Purchase Paths and

    Ad-Serving Process.

    Its important to note that though DMPs in a general

    sense can have both capabilities, not all have the same

    set o unctions. Many o the DMPs used to powerprogrammatic ad buying and selling platorms like DSPs

    and SSPs, or example, are primarily used or display

    ad targeting. Today, the majority o marketers are likely

    accessing a DMP through these inventory sources.

    Not many publishers or advertisers are using standalone

    DMPs, said Grether. I think that will shit as brands and

    publishers become more amiliar with the space and

    understand those DSPs and SSPs only oer some o the

    unctionality that a ull DMP can.

    Standalone DMP providers, or those that build their ownDMPs to power an agency trading desk, would likely build

    in additional unctions beyond targeting. For example,

    many incorporate attribution capabilities to tie in data rom

    other ad ormats and channels.

    Because o this, Laurent Colard, global managing partner

    at GroupM, sees DMP unctionality as more o a T-shape

    vs. two distinct branches.

    The base o the T pertains to the digital unction o

    the DMP. Here lies the ability to track and analyze

    that cookie-level data within digital or the purpose oidentiying individual audience insights. Thats where

    the traditional denition o the DMP alls, Colard said.

    Its very, very narrow but goes extremely deep and

    is extremely actionable because you can tie it back to

    trading decisions and targeting decisions, as well as

    individual cookies.

    On top o that sits a broader unction o the DMP, the

    ability to provide what Colard calls a 360-degree view

    o all communication channels and all measures o

    success, with or without an individual user-level view.

    Such a unction is used or cross-platorm analysis and

    attribution modeling.

    http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000966http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000966http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000966http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000966http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000966http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000966
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    DATA MANAGEMENT PLATFORMS: USING BIG DATA TO POWER MARKETING PERFORMANCE 2013 EMARKETER INC. ALL RIGHTS RESERVED 6

    I you think about the 360-degree broad view o our

    clients business, the primary use cases around [the

    DMP] are the ability to do cross-channel attribution, he

    explained. Ater that, its the ability to do act-based

    budget setting and act-based allocation o media across

    those channels. When youre talking about channels or

    which there are highly trackable, digital data, the use

    case or the DMP then turns more into digital attribution

    and segmentation.

    Findings rom a Radar Research survey urther supported

    the concept o using a DMP or both targeting and

    larger campaign analytics. The research rm ound that

    beyond the obvious expectation o increased return on

    investment or DMP use, 55% o marketers worldwide

    used a DMP to better target using online and ofine data;

    46% used it to drive audience analytics.

    % of respondents

    Reasons for Using a Data Management Platform

    (DMP) According to Marketers Worldwide, Nov 2012

    To drive higher ROI

    64%

    To more effectively centralize, organize and leverage own (orclient's) first-party online and offline audience data for targeting

    60%

    To create a targeting profile of audience

    55%

    To drive audience analytics

    46%

    To house all audience data in a centralized location wheremultiple partners can log on

    28%

    To automate more of the ad planning and buying process

    25%

    To extend audience

    24%

    To increase campaign scale

    21%

    To optimize ad creative

    19%

    To control ad costs

    18%

    To ensure compliance with data collection and privacyregulations

    15%

    To keep up with competitors now using a DMP

    3%

    Other

    2%

    Note: n=67Source: Radar Research, "Data Management Platforms" commissioned byBlueKai, Dec 4, 2012

    148580 www.eMarketer.com

    Lloyd also cited targeting and analytics or attribution as

    the two main use cases o the DMP. He bucketed them

    into what he reerred to as orward- and rearward-acing

    use cases.

    Targeting and audience segmentation alls into the

    orward-acing bucket. The rearward-acing bucket

    contains analytics and attribution, used to understand

    why consumers took a certain customer journey andhow the advertising and marketing they were exposed

    to infuenced that journey. This particular use case is less

    common and a bit more dicult to execute, particularly

    when looking to uncover cross-platorm eects.

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    DATA MANAGEMENT PLATFORMS: USING BIG DATA TO POWER MARKETING PERFORMANCE 2013 EMARKETER INC. ALL RIGHTS RESERVED 7

    TARGETING

    Xaxis Lloyd considers targeting a orward-acing

    unction given its active, direct use o audience data.

    What were trying to do is use the data within the

    DMP to predict uture consumer behavior by putting

    them into some kind o demographic or interest

    category, he said. That kind o segmentation and

    targeting use case is pretty well established.

    Data rom eXelate supports that statement. According to

    the rms April 2013 study, nearly 94% o agencies and

    83% o advertisers in the US used audience targeting.

    % of respondents

    US Ad Agencies, Advertisers and Ad Platforms thatUse Audience Targeting in Their Digital Display Ads,April 2013

    Agencies 93.7%

    Ad platforms (networks/exchanges/DSPs) 90.7%

    Advertisers 82.5%

    Source: eXelate, "State of the Industry," April 22, 2013

    156461 www.eMarketer.com

    The DMPs ability to take all o that Big Data rom

    rst-, second- and third-party sources and organize it into

    meaningul audience segments makes it an ideal tool or

    audience targeting. This unction, particularly or rst- and

    third-party data, was also the top reported competency

    o DMPs by US marketing proessionals surveyed by

    Winterberry Group.

    % of respondents

    Current Core Competencies of Data ManagementPlatforms (DMPs) According to US MarketingProfessionals, Sep 2012

    Integration of first- and third-party data

    85%

    Segmentation

    79%

    Digital data aggregation77%

    Audience analytics

    73%

    Digital data warehousing

    68%

    Data transfer/export to channels

    60%

    Modeling

    57%

    Integration of digital and traditional data

    52%

    Note: respondents include advertisers, marketers, publishers, technologydevelopers and marketing service providersSource: Winterberry Group and Interactive Advertising Bureau (IAB), "TheData Management Platform: Foundation for Right-Time CustomerEngagement," Nov 12, 2012

    147347 www.eMarketer.com

    Not only can marketers use DMPs to identiy and crat

    specic audience segments, or example, sports ans

    or senior-level business executives, the platorms can

    oten identiy members o these segments down to the

    individual level, which is what more and more advertisers

    are ater.

    One o the biggest discoveries we had last year as

    we got more involved in the programmatic side o our

    business was the realization that its not about marketers

    looking to target audiences; its really about targeting

    individuals at scale, said Mark Howard, senior vice

    president o digital advertising strategy at Forbes.

    First-party data provides the oundation or most

    companies audience segmentation, given that it already

    pertains to individual customers, users or prospects.

    Marketers can use it to extend their reach via lookalike

    targeting or to enhance their retargeting eorts.

    Nearly every DMP uses rst-party data. Winterberry

    Group ound 96% o marketers in North America polled

    managed rst-party behavioral data in their DMPs. An

    additional 92% managed third-party behavioral data,

    which is commonly used alongside rst-party data

    to identiy similar audience segments, or lookalike

    segments, across the web.

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    DATA MANAGEMENT PLATFORMS: USING BIG DATA TO POWER MARKETING PERFORMANCE 2013 EMARKETER INC. ALL RIGHTS RESERVED 8

    The most valuable data is your own rst-party data,

    said Adobes Waddell. Everything else is a way to extend

    your reach or rene what youve already got with your

    rst-party data, and theres real value in being able to pull

    that all together.

    There are multiple types o rst-party data marketers

    might use to build a more holistic view o their audience.

    Research rom CMO Council and SAS ound severalcommon data assets marketers worldwide hoped

    to incorporate as o Q1 2013. Many o the data sets

    ocused on sales, customer service and other rst-party

    data sources.

    % of respondents

    Types of Data that Marketers Worldwide Would Liketo Add to Their Customer Data Profile, Q1 2013

    Predictive analytics around lifetime value

    71%

    Online customer profile/use profile 53%

    Customer service and support feedback

    45%

    Social media data

    42%

    User survey and preference data

    42%

    Third-party demographic and profile data

    35%

    Sales executive insights

    24%

    Order history

    20%Finance/customer payment data

    19%

    Anything is better than what we have now

    14%

    In-store/agent exchanges

    12%

    Note: respondents who feel they are missing important datapoints toprovide a more comprehensive view of their customerSource: CMO Council and SAS, "Aligning the CMO & CIO," March 28, 2013

    154782 www.eMarketer.com

    Once marketers have incorporated rst-party data into

    their DMPs, they have multiple targeting methods to

    consider: behavioral, retargeting and lookalike.

    BEHAVIORAL TARGETINGBehavioral targeting is one method used to deliver ads

    to intended audience segments based on site-specic

    actions or behaviors. For example, i a shoe retailer

    advertising on Yahoo! recognizes one o its top-spending

    customers or Nike running shoes reading an article on

    a Yahoo! sports page, the retailer can opt to show that

    consumer ads or the latest Nike running shoe model.

    Here, the DMPs ability to integrate with a dynamic

    content system is particularly useul in that it allows

    marketers to customize their ad creative based on

    known audience attributes or prior user behaviors. This

    lets marketers create a more relevant, personalized

    experience. In the case o retargeting, it can even be

    used to urther point an audience toward an intended

    conversion action by either inserting a recently viewed

    product or an oer into the display ad creative.

    RETARGETINGRetargeting is another common audience targeting

    method the DMP supports. It enables companies to

    recognize that a specic individual has already seen one

    o its ads and allows them to either show the same ad to

    the user or a dierent ad based on past actions.

    Building on the example above, i the top-spending,

    Nike-buying customer does not show interest in the latest

    Nike running shoe model ad, or clicks on the ad and looks

    at the shoe but does not buy it, the retailer can elect to

    show that consumer a slightly dierent ad the next time

    he or she visits a Yahoo! web property.

    For example, i the user clicked on the ormer Nike ad but

    did not buy, the shoe retailer might show that consumer

    a second ad with a 15% discount. Or, i he or she ailed

    to interact with the ad on the rst exposure, the marketer

    might redisplay that ad.

    Findings rom a Radar Research study showed how

    important it is or marketers to collect and use website

    inormation or retargeting purposes. Website retargeting

    data was deemed a critical data asset or marketing

    eorts by 54% o marketers worldwide.

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    DATA MANAGEMENT PLATFORMS: USING BIG DATA TO POWER MARKETING PERFORMANCE 2013 EMARKETER INC. ALL RIGHTS RESERVED 9

    % of respondents

    Data Assets that Are Critical to Their MarketingEfforts According to Marketers Worldwide, Nov 2012

    Email data 62%

    Media campaign data 57%

    Website retargeting data 54%

    Offline data 34%

    Third-party audience data 34%

    Mobile data 32%

    Third-party mailing lists22%

    Note: n=95Source: Radar Research, "Data Management Platforms" commissioned byBlueKai, Dec 4, 2012

    148584 www.eMarketer.com

    But marketers arent just interested in the actions and

    activities o their known audience base. They also want

    to identiy new audiences in order to grow their business

    and increase their brand ootprint. DMPs also enable

    them to do this via another orm o targeting known aslookalike targeting.

    LOOKALIKE TARGETINGLookalike targeting allows marketers to identiy additional

    audience members based on traits or characteristics

    shared with their present audience.

    To create this new audience base, marketers typically

    purchase cookie data rom third-party data providers

    or resellers. They can then add those cookies to theDMP so that when a user appears, the platorm knows

    to treat that consumer a specic way based on its

    audience characteristics.

    For instance, the shoe retailer above might opt to

    purchase third-party data rom a customer loyalty

    company that has identied users who have purchased

    Nike-brand products within the past six months. The

    retailer can then overlay this data with additional

    third-party segments that include sports ans to build

    a new audience segment that mirrors the one already

    present in its DMP.

    Grether was quick to note that though third-party data

    can provide value or tactics such as lookalike targeting,

    marketers should look to validate that audience data using

    ad verication tools or analytics tools. Theres this big

    debate about data accuracy, he said. I a data source

    tells you a cookie is a male, is it indeed a male? You need

    to be able to conrm whether or not you reached your

    intended audience.

    PUBLISHER USE OF DMPS FOR

    AUDIENCE TARGETINGBrands and agencies arent the only ones using DMPs

    or greater audience intelligence. As more and more

    publishers oer audience targeting and programmatic

    buying options to their advertisers, they too are doing so

    through DMPs.

    Forbes, or instance, is using a DMP to divide itssite into distinct, trackable audience segments to

    provide companies actual audience data when selling

    ad inventory.

    The old way o responding to RFPs was to do a

    syndicated research run via comScore or any other

    service that shows a general audience composition and

    projected potential reach o that audience on a site, said

    Forbes Howard. Advertisers dont want that anymore.

    They want to know exactly who you have on your site.

    Once it segmented the site, Forbes was able to trackrst-party behavioral data on users activities on Forbes

    properties. It then layered this data with third-party

    behavioral data rom sources such as Bizo and eXelate

    to get an even greater sense o its audience makeup.

    We can now look at each channel or section [o the site]

    and say, Hey, in the last 30 or 60 days, this is the exact

    composition o the audience in that area, and this was the

    reach, said Howard.

    He also noted that one o the biggest benets o using

    a DMP or this purpose is the ability to mix and match

    attributes rom multiple third-party sources to build aneven larger and more precise target audience.

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    DATA MANAGEMENT PLATFORMS: USING BIG DATA TO POWER MARKETING PERFORMANCE 2013 EMARKETER INC. ALL RIGHTS RESERVED 10

    A lot o people come to us looking or senior-level

    decision-makers, and in the past wed use just one data

    provider to target that segment across our site, he said.

    By stringing together dierent cookies rom multiple

    sources, we are now much more eective at nding

    the people our advertisers want and can oer them that

    audience with much greater scale within Forbes.

    And, because the DMP is able to analyze and processad perormance resulting rom such targeting and

    placements, Forbes can now oer advertisers

    midcampaign analytics. We do a midway and then

    post-campaign analysis o the data overlays to be able to

    tell our clients things like 57% o the people exposed to

    their advertising in our CIO section actually carried an IT

    job unction, he said.

    One o the additional benets to Forbes o using a DMP

    or both creating audiences and analyzing them against ad

    perormance is its ability to identiy new target audiences

    that could be o value to advertisers. Howard oeredone example in which the DMP revealed that an auto

    advertisers campaign was seeing a high response rate

    among what he labeled luxury travel contenders. Forbes

    was then able to go back to the auto advertiser and share

    this insight.

    Advertisers are very happy to be having those

    conversations, he said. And they like the act that we

    can proactively bring them inormation like that and leave

    it up to them to make the decisions on what they want

    to do.

    DIGITAL AND

    CROSS-PLATFORM ATTRIBUTION

    The ragmented, renetic nature o todays media

    consumption has complicated the measurement o

    both digital and traditional marketing channels.

    For the past several years, the advertising industryhas been working to address this issue through

    attribution, a measurement approach that considers the

    infuence o each advertising channel or touchpoint on a

    specic outcome.

    The end goal is to get that campaign-level view o

    optimization across channels or each customer. Its about

    building a more complete view o the customer, said

    Neo@Ogilvys Muzzy.

    Because DMPs are already audience-centric, they

    are a prime tool or gauging campaign infuence and

    perormance both within digital and across platorms.

    Theres real value in being able to address the audience

    rst to determine what to buy, said eXelates Zagorski.

    By looking at your audience and how theyre interacting

    with a particular ad or promotion, you can take those

    learnings and eed them into your current eorts and your

    next campaign.

    Xaxis Grether shared one example o how Godiva used

    attribution to justiy its digital eorts and increase uture

    investment. He said the agency ran a digital campaign

    o video and display or the chocolatier aimed at driving

    sales. By combining the ad perormance with third-party

    data detailing ofine purchase inormation in the DMP,

    Xaxis was then able to segment those who purchased

    chocolate into ad-exposed vs. nonexposed audiences. In

    doing so, the agency expected to inorm uture targeting

    decisions and justiy Godivas digital investment.

    According to Grether, Xaxis was able to determine

    Godiva earned $2 in sales or every $1 invested in digital.

    As a result, the brand ended up spending even more

    money online.

    But digital attribution is only one piece o the larger

    attribution unction the DMP can provide. Marketers are

    also using it to understand broader channel relationships

    across platorms.

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    We know the idea o doing just digital attribution

    modeling on the directly observable events you see at the

    cookie level is fawed, because it ails to take into account

    all o that rich exposure and interaction thats happening

    outside o the digital domain, said Xaxis Lloyd.

    Lloyds colleague, Colard, cited another example or a

    technology client taking a much more cross-platorm

    approach to attribution. During a new product launch, theagency monitored all o the clients paid communication

    channels in both traditional and digital, in addition to its

    website and call center. By inputting all o these channels

    into the DMP, Colard said it was easy to identiy that, early

    on, TV was driving a signicant number o searches, 90%

    o which was coming rom Google.

    In addition, Colard noted that the client used this

    inormation to make sure its paid search investment

    was optimized to drive all o the interest generated rom

    TV ads to its web properties where the users could

    eventually purchase that product.

    Because we had this integrated view o our

    communication investment and perormance, we

    knew very rapidly that the reason why consumers

    were searching is because we were doing all o the

    mass media advertising in the rst place, he explained.

    Without that integrated view, someone looking at

    the website analytics might have just seen the bulk o

    the trac coming rom search and assumed that we

    shouldnt bother doing cable advertising.

    And as more brand dollars move to digital and

    programmatic buying, cross-platorm attribution is crucial.

    Grether noted hes seen a shit in DMP use rom pure

    direct response to more branding-ocused campaigns. As

    a result, it is becoming increasingly important or brands

    to understand the perormance o their digital advertising

    eorts in conjunction with their traditional programs.

    Its important to be able to get data rom TV

    consumption into the DMP, he said. The more branding

    campaigns that are being run, the more important it

    becomes to bridge online and connect it with TV.

    Grether went on to say the value in being able to do so

    doesnt just eed back into media planning and ad spend

    justication or TV or digital. It also aects the audience

    targeting unction o the DMP.

    On a user level, I need to know who was actually

    exposed to an ad on TV, he said. Once I know that, I can

    then determine whether or not I want to show him an ad

    hes already seen. This can help me to maximize the net

    reach between both channels, or i the requency was not

    yet reached in TV, I can show him the ad online as well to

    get optimum requency.

    However, such intelligence remains dicult to gain,considering most traditional media channels dont track

    ad perormance down to the user level. Xaxis technology

    client mentioned earlier was able to do so by driving

    traditional media to digital, a trackable medium, but most

    traditional ad exposures and in-store purchases cannot be

    tracked. Though cross-platorm attribution is possible even

    in these circumstances, it is more aimed at justication o

    media spend and less at real-time campaign optimization.

    [Cross-channel attribution] is a very powerul approach,

    and its antastic when you can get it right, said

    Lloyd. The fip side is that its much more complex toimplement, and the output tends to be less actionable.

    Data rom the CMO Council and SAS showed how

    dicult it is to implement cross-platorm analytical

    capabilities. Just 3% o marketers worldwide said their

    online and ofine analytic capabilities were completely

    integrated across all unctions as o Q1 2013. The majority

    (46%) said they were getting better at this but still had

    room or improvement, and 43% were either struggling to

    integrate or ailing to integrate at any level.

    DMP inrastructure also lacks this capability. Just 40%

    o US marketing proessionals surveyed by Winterberry

    Group said existing DMP technology supported

    multichannel integration and optimization, though 84%

    said it was a uture priority.

    According to a all 2012 study by Zi Davis, another

    priority or companies worldwide was to obtain the

    real-time data analysis and reporting rom data

    management that cross-platorm attribution

    currently lacks.

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    DATA MANAGEMENT PLATFORMS: USING BIG DATA TO POWER MARKETING PERFORMANCE 2013 EMARKETER INC. ALL RIGHTS RESERVED 12

    % of respondents

    Leading Priorities for Their Data ManagementStrategies According to Companies Worldwide,Fall 2012

    Real-time data analysis and reporting

    27%

    App and technology consolidation

    26%

    Storage and hardware optimization19%

    Platform integration

    16%

    Mobile apps and accessibility

    12%

    Source: Ziff Davis, "Strategic IT Survey Results: Data Management," Nov 5,2012

    154789 www.eMarketer.com

    Though the end goal or marketers is real-time

    analytics and insight, or now, most attribution modeling

    is done post-campaign, or as Lloyd aptly describes

    it, rearward-acing. Most agencies would say thatattribution modeling is more used or post-rationalization

    and proving that the decisions made were the right ones,

    rather than trying to identiy learnings to use on uture

    campaigns, he said. I think thats changing, but theres

    still a airly big gul between the insight thats generated

    and the ability to translate that insight into some kind o

    meaningul change in your media planning process.

    Still, Lloyd sees hope or DMPs to be able to make this

    real-time action a reality.

    Again, one o the benets o DMPs having bothrearward- and orward-acing capabilities is its ability to

    close that loop, he said. You can take the insights you

    generate rom an attribution modeling perspective and

    immediately apply them to new orms o targeting or

    renements in your existing advertising strategies to get

    the maximum value out o those attribution models.

    For more on cross-platorm ad measurement, please

    see eMarketers December 2012 report, The State o

    Cross-Platorm Ad Measurement: Industry Trends and

    Current Practices.

    EMARKETER INTERVIEWS

    How Urban Outftters Uses Data to Segment and

    Serve Furniture Customers

    Jim Davis

    Director, Web and Customer Analytics

    Urban Outftters

    Interview conducted on April 26, 2013

    Dissecting Data Management Platorms

    Dr. Mark Grether

    COO

    Xaxis

    Interview conducted on April 11, 2013

    Understanding Big Data and DataManagement Platorms

    Troy Lerner

    President

    Booyah Advertising

    Interview conducted on April 9, 2013

    Laurent Colard

    Global Managing Partner

    GroupM

    Interview conducted on April 24, 2013

    Mark Howard

    Senior Vice President of DigitalAdvertising Strategy

    Forbes

    Interview conducted on April 18, 2013

    Pete Kluge

    Product Marketing Manager,Adobe AudienceManager

    Adobe

    Interview conducted on April 10, 2013

    Richard Lloyd

    Director, Data Management Platform

    Xaxis

    Interview conducted on April 24, 2013

    Sean Muzzy

    CEO

    Neo@Ogilvy

    Interview conducted on April 18, 2013

    http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2001021http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2001021http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2001021http://totalaccess.emarketer.com/Interview.aspx?R=6001074http://totalaccess.emarketer.com/Interview.aspx?R=6001074http://totalaccess.emarketer.com/Interview.aspx?R=6001072http://totalaccess.emarketer.com/Interview.aspx?R=6001073http://totalaccess.emarketer.com/Interview.aspx?R=6001073http://totalaccess.emarketer.com/Interview.aspx?R=6001073http://totalaccess.emarketer.com/Interview.aspx?R=6001073http://totalaccess.emarketer.com/Interview.aspx?R=6001072http://totalaccess.emarketer.com/Interview.aspx?R=6001074http://totalaccess.emarketer.com/Interview.aspx?R=6001074http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2001021http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2001021http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2001021
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    DATA MANAGEMENT PLATFORMS: USING BIG DATA TO POWER MARKETING PERFORMANCE 2013 EMARKETER INC. ALL RIGHTS RESERVED 13

    Ben Plomion

    Vice President of Marketing and Partnerships

    Chango

    Interview conducted on April 4, 2013

    Tim Waddell

    Director of Product Marketing,Adobe AudienceManager

    Adobe

    Interview conducted on April 10, 2013

    Mark Zagorski

    CEO

    eXelate

    Interview conducted on April 4, 2013

    RELATED EMARKETER REPORTS

    eMarketers Guide to the Digital AdvertisingEcosystem: Mapping the Display Advertising Purchase

    Paths and Ad-Serving Process

    How Retailers Are Leveraging Big Data to

    Personalize Ecommerce

    The State o Cross-Platorm Ad Measurement:Industry Trends and Current Practices

    RELATED LINKS

    Adobe

    Booyah AdvertisingChango

    eXelate

    Forbes

    GroupM

    MEC Global

    Neo@Ogilvy

    Urban Outftters

    Xaxis

    EDITORIAL AND

    PRODUCTION CONTRIBUTORS

    Cli Annicelli Senior Editor

    Kaitlin Carlin Copy Editor

    Joanne DiCamillo Senior Production Artist

    Stephanie Gehrsitz Senior Production Artist

    Dana Hill Director o ProductionHeather Price Copy Editor

    Nicole Perrin Associate Editorial Director

    Allie Smith Director o Charts

    http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000966http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000966http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000966http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000907http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000907http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2001021http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2001021http://www.adobe.com/http://www.booyahadvertising.com/http://www.chango.com/http://www.exelate.com/http://www.forbes.com/http://www.groupm.com/http://www.mecglobal.com/http://www.neoogilvy.com/http://urbn.com/profile/urban.htmlhttp://www.xaxis.com/http://www.xaxis.com/http://urbn.com/profile/urban.htmlhttp://www.neoogilvy.com/http://www.mecglobal.com/http://www.groupm.com/http://www.forbes.com/http://www.exelate.com/http://www.chango.com/http://www.booyahadvertising.com/http://www.adobe.com/http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2001021http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2001021http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000907http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000907http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000966http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000966http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000966
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