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7/27/2019 eMarketer_Data_Management_Platforms-Using_Big_Data_to_Power_Marketing_Performance.pdf
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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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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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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.
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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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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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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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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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DATA MANAGEMENT PLATFORMS: USING BIG DATA TO POWER MARKETING PERFORMANCE 2013 EMARKETER INC. ALL RIGHTS RESERVED 11
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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