T e ig deal on ig data ro th os e wh o s e it es t. · 2019-04-11 · of marketers say they are...

1MNI Targeted Media Inc. | Data Download

Th e b ig deal on b ig data f rom th os e wh o u s e it b es t.

A PRIMER ON DATA f or

Today ’ s Mark eterBethany Shocki | Fall 2016

Here are some facts to consider : 3

of marketers say they are collecting data from online sources, but few are successfully implementing it.

self-identify as weak in modeling their own user data, and 2 7 % cu rrently h av e no cap abi lity to do s o.

90%

48%

In the marketing and advertising community, “big data” has been a buzzword for decades, but it’s taken on a life of its own in the last 24 months. Both agencies and clients have been leveraging the power

of data with varied success, until now. Technology and computer infrastructure have finally caught up with the fast pace of data collection; this makes utilizing data across marketing efforts more accessible for advertisers. With more opportunities to gather insights about their customers, marketers are predicting consumer behavior with increased accuracy and creating a better, more memorable consumer experience.

The practice of big data is gaining momentum. Technology has evolved so much that 90% of the world’s data was generated in just two years,1 meaning companies are now stocked with the information they need to effectively shorten their purchase cycle, and increase revenue potential. However, only around half (54%) of marketers are currently prioritizing big data in their marketing efforts.2

As a result, the CDO (Chief Data Officer) position—created to manage and govern data as an asset— is gaining popularity in the C-suite of Fortune 500 companies. For those without the resources for an added C-level headcount, there are turnkey solutions through innovative targeting tactics and technologies.

How can a company best use expansive consumer data to make advertising efforts more relevant than ever? This report will help identify the types of data that are vital to marketers, and share the best ways to use them.



A benefit to leveraging s econd-p arty data is ch oos ing data f rom s ou rces ma rk eters find most relevant. Mutually beneficial data partnerships often occu r natu rally be tween companies with existing relationships who have shared objectives (e.g., retailer and man u f actu rer).

Third-Party DataTh is is data th at is gener-ated on other platforms and th en collected b y an aggregator. Th e aggregator m ines th e data f rom v ar-iou s s ou rces , and th en creates data s egm ents th at are link ed to cons u m er characteristics. The two b ig ty p es of th ird- p arty data p eop le are talk ing ab ou t today are declared and inf erred.

» Declared data (also called deterministic) is user-defined, personal information that a user willingly shares. It is di-rectly rep orted b y th e cons u me r. F or exa mp le, a cons u me r comp letes a f orm with demo grap h ic, geograp h ic, or p s y ch o-graphic information when making a purchase. It’s data we know to be tru e.

Let’s Define DataWhat exactly is big data in marketing and advertising? Th ere are th ree ty p es of cons u m er data th at are m os t u s ed b y m ark eters .

First-Party DataF irs t-p arty data is cons idered s ome of th e mos t v alu able data. It’s proprietary information, collected by a company through various touchpoints, such as subscription data, social data, data from a customer relationship management (CRM) system, shopper data, behavioral data gleaned from pixeling a website, and many more. It is the most valuable data you can collect for two reasons: be cau s e it’ s direct f rom th e cons u me r, wh o is p rov iding it willingly , and it’ s f ree. Mark eters recogniz e th at th is information is valuable—and in a big way: 82% plan to increase their use of first-party data this year. 4

So, now that marketers have all of this first-party data, how can they use it? A data management platform (DMP) collects all of your first-party data in one place and transforms it into constructive and actionable insights. These learnings can be used to inform targeting tech nologies acros s m edia cam p aigns , as well as to p ers onaliz e m es s aging.

Second-Party DataSecond-party data is first-party data that is purchased directly f rom th e s ou rce. F or examp le, mar k eters can f orm a p artners h ip with p u bli s h ers to gain acces s to their first-party data for insights on specific audiences.

HELPFUL

HINT : What’s a DMP?

In simple terms , a data ma n-

agement platform is a data wareh ou s e. It’s a piece of soft-ware th at s u ck s u p , s orts , and h ou s es information, and s p its it ou t in a way th at’ s u s ef u l f or ma rk eters , p u b -lis h ers , and oth er bu s ines s es .”

—Digiday 5

3

MNI Targeted Media Inc. | Data Download

» Inferred data (also called probabilistic) is composed of characteristics assigned to a consumer based upon their online behaviors and activities, often tied to content consumption. For example, learning that a consumer f req u ents a certain web s ite, or f req u ently reads ab ou t particular topics. It’s data that is likely tru e.

Both types of data are valuable for different reasons (i.e., while declared data is valuable for its unique properties, inferred data is more cost efficient), and they are often used in tandem. Companies purchase third-party data from aggregators and data platforms like Oracle BlueKai, Lotame, Experian, DataLogix, and eXelate to complement their first-party data, and help target th eir ad cam p aigns .

Concerns About Privacy?W h en as k ed ab ou t m aj or cons u m er concerns , it’ s s tag- gering: more Americans are concerned about online data p riv acy th an los ing th eir p rim ary incom e s ou rce. In an increasingly digital world, where online purchases happen (and personal data is collected as a result) with a s im p le m ob ile s wip e, p riv acy concerns rem ain an is s u e am ong cons u m ers .

Consider these facts: 6 » 4 5 % of A me ricans are mo re concerned abou t th eir

online p riv acy th an th ey were a y ear ago.

» 68% are concerned about not knowing how personal info-rmation collected online is used, compared with the 57% concerned ab ou t los ing th eir p rim ary s ou rce of incom e.

» O nly 5 6 % of cons u m ers tru s t b u s ines s es with th eir personal information online.

Advertisers need to proactively develop a security strategy to thwart cyber-attacks, and communicate th is to th eir cu s tome rs , to eas e cons u me rs ’ mi nds .

Transparency is King Tell me where my data goes, please.A b ov e all, online u s ers want to k now wh at is b eing done with th e data th ey s h are online, and h ow it will b e u s ed. Th e top cons u m er concern is th at com p anies will s ell their personal information to oth er com p anies , and that their information will b e releas ed with ou t th eir ap p rov al.

More Americans are concerned about online data privacy than losing their primary source of income.6


What’s a Marketer to Do?Proactive transparency will lead to consumer trust, and ultimately to increased sales due to trusted user engagement. Marketers should make their privacy policy easily accessible on their website, and provide access to any terms and conditions relevant to data collection. They should ask for permission to collect user data, and provide users with information about how they will both store and use their personal data.

What Does the Consumer Want?According to the TRUSTe/National Cyber Security Alliance, “32% of consu-mers think protecting personal information online is too complex, and 38% of those who worry about their privacy online say companies providing clear procedures for removing personal information would increase trust.” Many consumers

don’t even realize they are disclosing personal data until they’re notified that an app or website is tracking their online behaviors (and offline, via location services). It can be frustrating to navigate the fine print; once con-sumers allow personal information to be shared, it can be nearly impossible to successfully recall it.

However, consumers can be convinced to share personal data if there is a clear value exchange. Seventy-five percent of consumers are willing to share the most sensitive data (including address, mobile phone number, name, and date of birth) with companies, in ex-change for a product or service they value from a brand they trust 6. To earn and maintain that trust, marketers should anticipate consumer concerns by offering clear opt-in messaging along with simple directions to opt out.

The Power of the ConsumerConsumers have adapted how they shop, com p are, engage, and interact with b rands , dictating their needs and expectations to ma rk eters . O n av erage, th ey own 7 .2 internet-c onnected dev ices , and u s e 3 .1 daily , 7 providing marketers with multiple opportunities for data exchange through various platforms. With 66% of shoppers b ecomi ng f ru s trated wh en content is not s y nch roniz ed acros s th eir dev ices , th e era of personalization is upon us.8 Data-powered ads are more effective, less annoying, and sequential in real-time with th eir au dience.


How Can a Thoughtful Data Strategy Create Smarter Advertising?“Marketing without data is like driving with your eyes closed.” — Dan Zarrella, award-winning social media scientist

So there is a lot of data out there—what does that mean for marketers? It means that with the right tools to collect, capture, and harness your user data, you can build a smarter advertising campaign that works harder than the average banner ad. As consumers become more tech-savvy (e.g., ad blocking software), the ability to reach them with an interesting, timely, and relevant message is more important than ever before.

Use Data to Determine Your AudienceIn recent years, Millennials—and their $200 billion in an-nual buying power 9—have been a hot target audience for marketers to reach. We know this audience is brand loyal, socially influenced, and tech-savvy. Brands across cat-egories, from CPG to automotive to luxury goods, are working to reach Millennials early in their buying cycle, to convert them into brand ambassadors for life. How-ever, smart brands will dive deep into data analytics to understand—and if necessary, redefine—their target, based on research. These insights can be used to set effective targeting parameters for a digital ad campaign, but should also influence creative messaging to ensure campaign creative resonates with the audience.

1:1 Data A brand’s own shopper data is the first place to start to understand who is buying a product. This data often includes demographic and geographic information. A trending report leveraging shopper data will show a brand exactly who their key purchaser is.

Companies are taking note —67% of marketers plan to invest in personalization for their digital strategy.13

Creating a personalized digital advertising experience goes beyond delivering targeted ads. When activating a data campaign effectively across all devices, marketers become part of the con-sumer conversation, deli-vering relevant content in the right place, at the right time, to the right person, even down to the moment when content and offers are paired up in real time, with real-world current events. Savvy creative agencies will embrace big data insights and platforms to create messaging that is helpful, interesting, and resonant with consumers’ passions and interests.

An Intentional Audience Website analytics and digital advertising insights via site pixels shed light on the interested consumer demographic. Insights on site visits, conversions, and even shopping cart abandonment all aid in identifying profiles of customers who are interested in your product or service.

Build a Full Consumer Profile Leverage multiple data points to surround your target audience on the devices they use most. A combination of online data collected from mobile SDKs and offline data collected from publically available sources (like census records or DMV registrations), allows you to use data to deterministically cross-device target your audience at the individual level.

Deliver a Personalized ExperienceThe rise of AI (artificial intelligence) and VR (virtual reality), and the acceptance of “big brother,” has paved the way for advertisers to utilize data to their advantage. Consumers already expect digital tracking when they log online, and with that knowledge comes an expectation for a personalized, tailored, “me” experience. Identifying a consumer by name in an ad is no longer startling for the user; it’s become expected. In fact, 74% of online consumers get frustrated with websites when content, offers, ads, promotions, etc. appear to have nothing to do with their interests. 10

Personalization not only appeases sophisticated consumers, but also leads directly to sales: 86% of consumers agree that personalization had an impact on their purchase decisions,11 and 73% prefer to do business with companies that use personalization to make their shopping experience more relevant.12

HELPFUL

HINT : What’s an SDK?An SDK, or Soft-ware Development Kit, is a set of tools used for mobile app development, as well as analytics and insights. Mar-keters can tap into SDKs with a line of code to collect data, such as the email address and user application across their mobile devices.


Data Trends Now and for the FutureTechnology is rapidly evolving to allow market-ers to take advantage of the immense amount of data available. Products and services are being designed that both react to and collect data in real-time, and consumers are responding.

Current Trend: BeaconsBeacon technology delivers targeted messages at retail locations via users’ smartphones, using data to determine a user’s location and interests. They reach consumers at the very bottom of the purchase funnel, with advertising

owning smartphones, the opportunities to impact in-store sales are well within reach.14

Beacons, or location-based mobile messaging systems, have grown as a trendy technology among retail brands over the last two years. In fact, beacons influenced $7.5 billion in spending by Millennials during the 2015 holiday season.15 The use of beacons—and consumer adoption of them—is expected to increase. Nearly a quarter of U.S. retailers have already installed beacons, and 47% of U.S. smartphone users say they are interested in the technology or already use it.16

Beacons influenced $7.5 billion in spending by Millennials during the 2015 holiday season.15

designed to influence at the point of purchase. And, with 68% of Americans

Upcoming Trend: WearablesWhile the smartphone has become a fifth limb for most consumers, wearables are becoming increasingly popular—and more affordable—as they bring smart-tech to your body. From the Fitbit to the Apple Watch, these devices are embedded with internet-connected electronics and exchange data with a manufacturer or other connected device.

In 2015, 39.5 million U.S. adults used wearables, and that number is expected to double by 2018,17 meaning approximately one out of every four people will be wearing a connected device!

As wearables reach mass consumer adoption, marketers can expect to connect with users via native advertising or wearable search, since spoken commands direct the hands-free devices.

The unique types and amount of data captured by wearables could add a new, highly personalized layer to targeted advertising. Wearables, by definition tethered to a person, record not only geographic location, but also personal stats like sleep cycles, breathing, heart rate, and more. The data collected is already influencing consumers’ lives, as they increase movement to reach recorded steps, and alter workouts to maintain their target heart rate. In the near future, wellness marketers can target users

Virtual reality provides an environment where consumers can immerse themselves in ad content.

Wearables record not only geographic location, but also personal stats like sleep cycles, breathing, heart rate, and more.

and deliver messaging based upon this accessed health data. Wearables also synchronize with other connected technologies like beacons, and will reinforce location-based advertising strategies.

Upcoming Trend: Virtual RealityThe age of virtual reality —and its promise of an undeniable presence via immersive, transportative


experiences—is upon us. With the introduction of Google Cardboard in 2014, which transforms your smart phone into a virtual reality viewer for $15, the once-mysterious technology is now available to any household.

While advertisers are still scrambling to understand how to leverage the new medium, the potential benefits for marketers are the same as the benefits for consumers:18

» VR is immersive, making users feel as if they are actually living in the VR world they’re engaging with. For marketers, this means they are completely focused on the content they’re consuming, with fewer distractions and more attention paid to the messaging.

» VR is impactful, and lends itself to an intense experience for the user. Marketers benefit from heightened consumer emotions, which can lead to impulsive buying behavior.

» VR is memorable. Whether or not consumers are visual learners, studies show that experiencing an environment or product first-hand makes it more memorable. For mar-keters, this sensory memory means advertising messaging with staying power long after the initial touchpoint.

User profile data will help marketers determine which audience segment(s) to serve VR-enabled advertising to. For example, if data collection determines that a user is renovating a home, VR-messaging that allows users to experience a new paint color on their walls, or envision a remodeled kitchen, can be great strategies to influence conversion. In addition, VR is poised to enable high-end brands to sell more costly products online. While 55% of consumers prefer in-store shopping for luxury items,19

one-third of U.S. internet users say VR would help them buy more products online, since they can touch and feel them in VR.20

The release of Google Cardboard in 2014 transformed virtual reality from a mysterious new technology into a device available to everyone.

Smart home devices’ monitoring capabilities pro-vide novel insights into consumer usage patterns.

W h ile th e s m art ref rigerator y ou own is h elp ing to optimize your next trip to the grocery store, it’s also s h aring data with its m anu f actu rer on y ou r f ood consumption habits.


Future Trend: Smart HomesWhile the concept of a fully integrated smart home might be too Jetsons-like for most, popularity is grow-ing—45% of people already either own smart home technology, or plan to invest in it this year.21 Connected devices like WeMo home automation products, Google’s Nest suite, and Lutron wireless window shades are find-ing space on consumers’ walls and shelves, giving them a taste of smart home offerings.

Consumers love these products for their time-saving features and remote-accessibility; however, the data implications for the brands building the devices are massive. Consumers are buying these products for their data-sharing capabilities, but those devices likely also share data with their manufacturers. This means that while the smart refrigerator you own (which takes photos of the inside of your fridge and emails them to you each time the door opens so that you have a live inventory) is helping to optimize your next trip to the grocery store, it’s also sharing data with its manufacturer on your food and beverage consumption habits.

This data can be leveraged to build better refrigerators, but it could also be sold to the dairy industry for insights into consumer usage behaviors. The data-mining opportunities for many industries, from energy (smart thermostats) to security (smart deadbolts), should create better products for the future, but also help companies better market their wares, based on real data findings.

Now What?Whether you’re a data novice (it’s okay, really!) or a data expert, we can all agree that getting your hands on actionable data that will produce a more targeted, personal advertising and marketing campaign is what we’re all after.

This is where we can help. Whether you haven’t a clue where to start, or have reams of your own data to lev-erage, our team at MNI Targeted Media Inc. can help you achieve your objectives.

With data tools and strategies to fit advertiser’s needs, clients are trusting us every day to utilize first-, second-, and third-party data to connect them to the online audiences they need to reach.

Contact your MNI Targeted Media Inc. Account Executive today to learn more about our innovative data solutions.

A Few Words About UsMNI Targeted Media Inc. is one of America’s leading media planning and buying entities, and provides both online and offline solutions that h elp clients p recis ely reach th eir target au dience, with ou t was ted ad s p end. A div is ion of Tim e Inc., we have more than 40 years of targeted marketing experience.

Omnipoint, our proprietary data solution, mak es it eas y to acces s ins igh ts f rom any au dience, acros s any category . O mn ip oint refines third-party data from 25+ data partners acros s all indu s tries , th en lay ers twelv e y ears of

first-party data over syndicated research, helping us to stay in front of the competition, while delivering the optimal plan based on your KPI.

W ith m ore th an a bi llion ad imp res s ions deliv ered every year for more than 1,200 clients, our commitment to service is unparalleled. If there’s any th ing we can do to h elp ou r clients s u cceed, our attitude is simple: We do it.

Bethany Shocki Marketing and Insights Department 203.967.6460 | [email protected]

1 5MNI Targeted Media Inc. | Data Download

Sources1 . SINTEF, “Big Data, for better or

worse.” May 22, 2013.2 . Kentico Software, “What do digital

marketers really want in 2015?” condu cted b y Millward B rown. Feb 2, 2015.

3 . Econsultancy, “Customer Experience Optimization Report” in association with Ensighten. March 17, 2015.

4 . eMarketer, “Markets Put First Party Data First.” June 29, 2015.

5 . Digiday. “WTF is a data manage-ment platform?” January 15, 2014.

6 . TRUSTe “The State of Online Privacy 2016.” January 28, 2016.

7 . CMO by Adobe, “ADI: Lack of Device Hampers Marketers CX Resolution.” March 22, 2016.

8. Adobe, “Marketers, It’s Time to Get Personal.” March 2016.

9 . Forbes, “10 Findings About the Millennial Consumer.” January 20, 2015.

10. Janrain, “2013 Online Personal Experience.” July 31, 2013.

1 1 . Infosys, “Rethinking Retail.” January 14, 2014

1 2 . A ccentu re, “ Today ’ s S h op p er Preferences: Channels, Social Media, Privacy and the Personalized Experience.” November 2012

1 3 . Kentico Software, “What do digital marketers really want in 2015?” condu cted b y Millward B rown. Feb 2, 2015.

1 4 . Pew Research Center, “Technology Device Ownership: 2015.” October 29, 2015.

1 5 . Mobile Commerce Daily, “Beacons to Influence $7.5B in Millennial H oliday S p ending.” November 24, 2015.

1 6 . eMarketer, “What’s Going on with Beacons?” July 15, 2016.

1 7 . eMarketer, “Wearable Usage Will Grow by Nearly 60% This Year.” October 28, 2015.

18. Mbryonic, “10 Best Uses of Virtual Reality in Marketing.” April 2016.

1 9 . Salesforce, “2016 Connected Consumer Goods Report.” June 13, 2016.

20. eMarketer, “Virtual Reality Interest Highest Among Gen Z.” December 3, 2015.

2 1 . Coldwell Banker, “2016 Is the Year S m art H om e Tech nology W ill b e Mainstream.” January 4, 2016.

T e ig deal on ig data ro th os e wh o s e it es t. · 2019-04-11 · of marketers say they are...

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