Welcome to Evolution: Audience Based Marketing - Now and Moving Forward

AudienceScience Market Intelligence 2011

Welcome to the EvolutionAudience Based Marketing - Now and Moving Forward

AAsian

Imports

AsAuto Shoppers

AeAuto Enthusiasts

CiCrossoverIntenders

CsCoupe Shoppers

EcEconomy Intenders

DbDomestic Buyers

LbLuxury Buyers

AiAuto Influencers

PePerformance Enthusiasts

SsSedan Shoppers

TrTruck Buyers

AniAnimated Shoppers

BwBook Worms

CfComedy Fans

HfHorror Fans

DrDrama Fans

EiEntertainment

Influencers

MlMusic Lovers

VgVideo Gamers

TvTv Enthusiasts

XBoxXBox

Enthusiasts

NdsNds

Enthusiasts

RsRomanticShoppers

AfAction Fans

CgCasual Gamers

DvdDvd Buyers

MgMovie-Goers

ViVideo Game Influencers

Ps3Ps3

Enthusiasts

FamFamily

Shoppers

WiiWii

Enthusiasts

SfSci-Fi Movie

Shoppers

BtsBack-To-School

Clothing &Supplies

SpSpring Seasonal

Shoppers

WvWinter Sports Vacationers

SrSummerTravelers

WsWinter Clothing

Shoppers

Auto Loans

FeFootball

Enthusiasts

Al

Business Decision Makers

Bi

Career Seekers

BdBusiness

Influencers

CasCredit Card Applicants

Ca

EducationSeekers

Ha

InsuranceShoppers

EsHome

Accountants

IReal Estate &

Mortgage Shoppers

Re

RetirementPlanners

Se

Small Business Owners

RpSavvy Economic

So StStock Trader

GeGolf

Enthusiasts

HHispanic

LmLife Milestones

MbMom & Baby

MMen

NyNew Years

Resolution Makers

OeOutdoor

Enthusiast

PmPolitically Minded

Individuals

PiPolitical

Influencers

PpProud Parents

SSingles

SocSocial

Networkers

MpUS Military Personnel

BcBudget Conscious

FFoodies

BfBeauty & Fashion

AcAffluent Consumer

HsHoliday Shoppers

HhHip Homemakers

HiHome Improvement

Enthusiasts

OsOnline Shoppers

RRetirees

PlPet Lovers

HwHealth & Wellness

Advocates

SbSports Buffs

WWomen

DfDiet & Fitness Enthusiasts

FsFall Clothing

Shoppers

AaAfrican

American

ArtArt & Culture Enthusiasts

EaEco-Aware Individuals

FanFantasy Sports

BtsBack-To-School

Clothing & Supplies

HdHoliday Dinner

Planners

SiShopping

Influencers

SpSpring Seasonal

Shoppers

ValValentine's Day

BtgBack To School

Computer & Gadget Shoppers

LvLas VegasTravelers

TriTravel

Influencers

CvCruise

Vacationers

HtHawaii

Travellers

BtBusinessTravelers

CtCaribbeanTravelers

CeCell Phone

Enthuisiasts

CoComputerShoppers

MtMexico

Travelers

GlGadget Lovers

HgHoliday Gadget

Shoppers

TiTechnology Influencers

Table of Contents

Executive Summary 1

The March Towards Sophisticated Audience Targeting 3

1. Aggregating multiple online and offline data sources 5

2. Go beyond basic page view activity 5

3. Leveraging data management platforms to control and manage ongoing campaign data 6

4. Defining and building precise target audiences 6

5. Connecting audiences with available inventory across multiple buying and selling points 6

6. Employing campaign insights to optimize and refine targeted campaigns 7

7. Providing control, transparency and reproducibility for future campaigns 7

Defining your Audience Strategy through the Behaviorally Driven Marketplace 9

Defining ‘Lookalike’ Behaviors to Deliver Audiences 11

Looking Beyond the ‘Lookalikes’ 15

The Audience Targeting Shift: Finding the New Path 17

Changes for Advertisers 20

Arrival of the Automated Infrastructure 20

Conclusion 21

Glossary of Industry Terms 23

About AudienceScience 25

Market Intelligence Report – Welcome to the Evolution

AAsian

Imports

AsAuto Shoppers

AeAuto Enthusiasts


CsCoupe Shoppers

EcEconomy Intenders

DbDomestic Buyers

LbLuxury Buyers

AiAuto Influencers


SsSedan Shoppers

TrTruck Buyers


BwBook Worms

CfComedy Fans

HfHorror Fans

DrDrama Fans

EiEntertainment

Influencers

MlMusic Lovers

VgVideo Gamers

TvTv Enthusiasts

XBoxXBox

Enthusiasts

NdsNds

Enthusiasts

RsRomanticShoppers

AfAction Fans

CgCasual Gamers

DvdDvd Buyers

MgMovie-Goers


Ps3Ps3

Enthusiasts

FamFamily

Shoppers

WiiWii

Enthusiasts

SfSci-Fi Movie

Shoppers

BtsBack-To-School

Clothing &Supplies

SpSpring Seasonal

Shoppers


SrSummerTravelers

WsWinter Clothing

Shoppers

Auto Loans

FeFootball

Enthusiasts

Al


Bi

Career Seekers

BdBusiness

Influencers


Ca

EducationSeekers

Ha

InsuranceShoppers

EsHome

Accountants

IReal Estate &

Mortgage Shoppers

Re

RetirementPlanners

Se


RpSavvy Economic

So StStock Trader

GeGolf

Enthusiasts

HHispanic

LmLife Milestones

MbMom & Baby

MMen

NyNew Years

Resolution Makers

OeOutdoor

Enthusiast


Individuals

PiPolitical

Influencers

PpProud Parents

SSingles

SocSocial

Networkers


BcBudget Conscious

FFoodies

BfBeauty & Fashion

AcAffluent Consumer

HsHoliday Shoppers

HhHip Homemakers

HiHome Improvement

Enthusiasts

OsOnline Shoppers

RRetirees

PlPet Lovers

HwHealth & Wellness

Advocates

SbSports Buffs

WWomen


FsFall Clothing

Shoppers

AaAfrican

American



FanFantasy Sports

BtsBack-To-School

Clothing & Supplies

HdHoliday Dinner

Planners

SiShopping

Influencers

SpSpring Seasonal

Shoppers

ValValentine's Day

BtgBack To School



TriTravel

Influencers

CvCruise

Vacationers

HtHawaii

Travellers

BtBusinessTravelers


CeCell Phone

Enthuisiasts

CoComputerShoppers

MtMexico

Travelers

GlGadget Lovers

HgHoliday Gadget

Shoppers


Executive Summary

If there’s one thing we can guarantee in today’s dynamic online advertising ecosystem is that it will

continue to change. During the past few years, new technologies and digital ad serving, analytics

and media buying and selling tools have emerged and have fundamentally changed the industry.

Inherent within all this change lies real opportunity for advertisers and publishers looking to deliver

more effective, efficient campaigns. Yet, outside of these rapid advancements the overall focus for

advertisers and publishers is based on the same fundamental question: “How can I get the right

message to the right consumer at the right time and in the right place in order to achieve the

objectives of my campaign, whether it’s improving the perception of my brand or getting them to take

an immediate action?”

Of course reaching the right audience is paramount for campaign success and finding and reaching

those consumers willing to pay attention and convert is the ultimate goal for any campaign.

The core of any successful online advertising campaign is based on the need to connect with those

consumers who will be most interested and receptive to the advertiser’s message. While traditionally

advertisers and publishers have employed practices focused around broad targeting techniques or

have been using modeling to pre-define audience segments to accomplish this task, the reality is

that ‘one size fits all’ marketing doesn’t work well in this context. Because the consumers who see

these ads represent a very diverse range of needs and desires, to be successful, advertisers and

publishers need to have access to an ongoing understanding of who their best customers are, what

they want and need, and what they will respond to.

The audience targeting path to the future requires a data-led way of thinking about the needs of

advertisers and subsequently their customers. It’s no longer about going after the ‘low hanging fruit’

or broad mass markets. It’s now based on sophisticated learning to create meaningful audience

segments that allow advertisers and publishers to advance their relationships with consumers in a

more personal, relevant and timely manner.

This report will explore the emergence of data-driven audience targeting and will reveal some of the

ways that publishers are embracing newer ‘actual data’ tools to create dynamic audience segments

that are more flexible and truly able to meet the needs of advertisers.

1Market Intelligence Report – Welcome to the Evolution

2

The March Towards

Sophisticated Audience Targeting

AAsian

Imports

AsAuto Shoppers

AeAuto Enthusiasts


CsCoupe Shoppers

EcEconomy Intenders

DbDomestic Buyers

LbLuxury Buyers

AiAuto Influencers


SsSedan Shoppers

TrTruck Buyers


BwBook Worms

CfComedy Fans

HfHorror Fans

DrDrama Fans

EiEntertainment

Influencers

MlMusic Lovers

VgVideo Gamers

TvTv Enthusiasts

XBoxXBox

Enthusiasts

NdsNds

Enthusiasts

RsRomanticShoppers

AfAction Fans

CgCasual Gamers

DvdDvd Buyers

MgMovie-Goers


Ps3Ps3

Enthusiasts

FamFamily

Shoppers

WiiWii

Enthusiasts

SfSci-Fi Movie

Shoppers

BtsBack-To-School

Clothing &Supplies

SpSpring Seasonal

Shoppers


SrSummerTravelers

WsWinter Clothing

Shoppers

Auto Loans

FeFootball

Enthusiasts

Al


Bi

Career Seekers

BdBusiness

Influencers


Ca

EducationSeekers

Ha

InsuranceShoppers

EsHome

Accountants

IReal Estate &

Mortgage Shoppers

Re

RetirementPlanners

Se


RpSavvy Economic

So StStock Trader

GeGolf

Enthusiasts

HHispanic

LmLife Milestones

MbMom & Baby

MMen

NyNew Years

Resolution Makers

OeOutdoor

Enthusiast


Individuals

PiPolitical

Influencers

PpProud Parents

SSingles

SocSocial

Networkers


BcBudget Conscious

FFoodies

BfBeauty & Fashion

AcAffluent Consumer

HsHoliday Shoppers

HhHip Homemakers

HiHome Improvement

Enthusiasts

OsOnline Shoppers

RRetirees

PlPet Lovers

HwHealth & Wellness

Advocates

SbSports Buffs

WWomen


FsFall Clothing

Shoppers

AaAfrican

American



FanFantasy Sports

BtsBack-To-School

Clothing & Supplies

HdHoliday Dinner

Planners

SiShopping

Influencers

SpSpring Seasonal

Shoppers

ValValentine's Day

BtgBack To School



TriTravel

Influencers

CvCruise

Vacationers

HtHawaii

Travellers

BtBusinessTravelers


CeCell Phone

Enthuisiasts

CoComputerShoppers

MtMexico

Travelers

GlGadget Lovers

HgHoliday Gadget

Shoppers


The March Towards Sophisticated Audience Targeting

W hile huge technological advances have come together to create unprecedented online

audience targeting capabilities, at the heart of any effective advertising campaign (on or

offline) lies the ability to get the right message to the right consumer at the right time so that they

take action and for the right price.

Today, online publishers and advertisers have access to a depth of targeting data never seen before.

From site specific analytics and actionable metrics to an abundance of 3rd party sources, they have

an abundance of riches to work with. However, while this explosion of data is the fuel powering the

new online advertising ecosystem, without the intelligence to understand and apply all this data, it

often has little value.

The evolution of targeting is very much the evolution of data. As marketers’ confidence has grown in

the value of online advertising, they are now demanding greater precision and looking to replicate the

targeting sophistication of offline in the online environment.

We’ve seen the move from a reliance on broad targeting options such as geo-targeting—focusing on

location rather than people—and contextual—where site was proxy for audience—to demographics,

and defining the classic age/gender/income segments. The advent of behavioral targeting saw

greater use of data to identify targets, with one or two online actions defining audience segments.

This was the forerunner to the emergence of much more sophisticated data-driven audience building.


AAsian

Imports

AsAuto Shoppers

AeAuto Enthusiasts


CsCoupe Shoppers

EcEconomy Intenders

DbDomestic Buyers

LbLuxury Buyers

AiAuto Influencers


SsSedan Shoppers

TrTruck Buyers


BwBook Worms

CfComedy Fans

HfHorror Fans

DrDrama Fans

EiEntertainment

Influencers

MlMusic Lovers

VgVideo Gamers

TvTv Enthusiasts

XBoxXBox

Enthusiasts

NdsNds

Enthusiasts

RsRomanticShoppers

AfAction Fans

CgCasual Gamers

DvdDvd Buyers

MgMovie-Goers


Ps3Ps3

Enthusiasts

FamFamily

Shoppers

WiiWii

Enthusiasts

SfSci-Fi Movie

Shoppers

BtsBack-To-School

Clothing &Supplies

SpSpring Seasonal

Shoppers


SrSummerTravelers

WsWinter Clothing

Shoppers

Auto Loans

FeFootball

Enthusiasts

Al


Bi

Career Seekers

BdBusiness

Influencers


Ca

EducationSeekers

Ha

InsuranceShoppers

EsHome

Accountants

IReal Estate &

Mortgage Shoppers

Re

RetirementPlanners

Se


RpSavvy Economic

So StStock Trader

GeGolf

Enthusiasts

HHispanic

LmLife Milestones

MbMom & Baby

MMen

NyNew Years

Resolution Makers

OeOutdoor

Enthusiast


Individuals

PiPolitical

Influencers

PpProud Parents

SSingles

SocSocial

Networkers


BcBudget Conscious

FFoodies

BfBeauty & Fashion

AcAffluent Consumer

HsHoliday Shoppers

HhHip Homemakers

HiHome Improvement

Enthusiasts

OsOnline Shoppers

RRetirees

PlPet Lovers

HwHealth & Wellness

Advocates

SbSports Buffs

WWomen


FsFall Clothing

Shoppers

AaAfrican

American



FanFantasy Sports

BtsBack-To-School

Clothing & Supplies

HdHoliday Dinner

Planners

SiShopping

Influencers

SpSpring Seasonal

Shoppers

ValValentine's Day

BtgBack To School



TriTravel

Influencers

CvCruise

Vacationers

HtHawaii

Travellers

BtBusinessTravelers


CeCell Phone

Enthuisiasts

CoComputerShoppers

MtMexico

Travelers

GlGadget Lovers

HgHoliday Gadget

Shoppers


Today, audience targeting is about driving real value through an audience strategy: a combination of

targeted campaign data, ad serving technologies and partnerships with advertising networks, media

buying channels and third-party data providers. Ultimately, the goal is to find intelligent ways to

combine these elements so that cost and waste are reduced and advertising messages are positioned

in a way that they deliver the most relevant message to the right consumers. Channeling all these

elements is complex and today requires data management technologies to deliver true audience insight

and targeting. In particular it requires platforms to:

1. Aggregate multiple and diverse online and off-line data sources

2. Go beyond basic page view activity

3. Provide a single audience targeting platform that allows advertisers to

control and manage ongoing campaign data

4. Define and build precise target audiences

5. Connect audiences with available advertising inventory across multiple

buying and selling points

6. Employ campaign insights to optimize and refine targeted campaigns

7. Provide control, transparency and reproducibility for future campaigns


AAsian

Imports

AsAuto Shoppers

AeAuto Enthusiasts


CsCoupe Shoppers

EcEconomy Intenders

DbDomestic Buyers

LbLuxury Buyers

AiAuto Influencers


SsSedan Shoppers

TrTruck Buyers


BwBook Worms

CfComedy Fans

HfHorror Fans

DrDrama Fans

EiEntertainment

Influencers

MlMusic Lovers

VgVideo Gamers

TvTv Enthusiasts

XBoxXBox

Enthusiasts

NdsNds

Enthusiasts

RsRomanticShoppers

AfAction Fans

CgCasual Gamers

DvdDvd Buyers

MgMovie-Goers


Ps3Ps3

Enthusiasts

FamFamily

Shoppers

WiiWii

Enthusiasts

SfSci-Fi Movie

Shoppers

BtsBack-To-School

Clothing &Supplies

SpSpring Seasonal

Shoppers


SrSummerTravelers

WsWinter Clothing

Shoppers

Auto Loans

FeFootball

Enthusiasts

Al


Bi

Career Seekers

BdBusiness

Influencers


Ca

EducationSeekers

Ha

InsuranceShoppers

EsHome

Accountants

IReal Estate &

Mortgage Shoppers

Re

RetirementPlanners

Se


RpSavvy Economic

So StStock Trader

GeGolf

Enthusiasts

HHispanic

LmLife Milestones

MbMom & Baby

MMen

NyNew Years

Resolution Makers

OeOutdoor

Enthusiast


Individuals

PiPolitical

Influencers

PpProud Parents

SSingles

SocSocial

Networkers


BcBudget Conscious

FFoodies

BfBeauty & Fashion

AcAffluent Consumer

HsHoliday Shoppers

HhHip Homemakers

HiHome Improvement

Enthusiasts

OsOnline Shoppers

RRetirees

PlPet Lovers

HwHealth & Wellness

Advocates

SbSports Buffs

WWomen


FsFall Clothing

Shoppers

AaAfrican

American



FanFantasy Sports

BtsBack-To-School

Clothing & Supplies

HdHoliday Dinner

Planners

SiShopping

Influencers

SpSpring Seasonal

Shoppers

ValValentine's Day

BtgBack To School



TriTravel

Influencers

CvCruise

Vacationers

HtHawaii

Travellers

BtBusinessTravelers


CeCell Phone

Enthuisiasts

CoComputerShoppers

MtMexico

Travelers

GlGadget Lovers

HgHoliday Gadget

Shoppers


Let’s explore each of these features separately:

1. Aggregating multiple online and offline data sources

In the world of marketing, targeting is king. And in the world of targeting, data rules supreme!

To be effective, targeting requires real intelligence and understanding that is often built on diverse

and very granular data. Creating an audience based on a single point of criteria like age or gender

is rarely sufficient to get the job done. Because real people are never that limited in their scope and

needs, advertisers need access to data which can help them to construct multifaceted targeting

‘personalities’ more in line with the real people that they represent. This information often exists both

inside and outside an advertiser’s business.

Traditionally, valuable internal audience data is often scattered across different areas and channels of

a business. Attempting to bring it together in the past has been, at best, logistically very difficult. The

result is the loss of valuable intelligence which businesses can use to better understand the needs

and behaviors of key customers. Often, by default, the lack of this data means that advertisers end

up settling for simple customer snapshots on which to base their targeting. This lack of insight dilutes

and distorts campaign targeting effectiveness by limiting the criteria being used to reach the ideal

customers and not just those that share similarities.

Any effective audience targeting campaign management process needs to include the ability to

connect disparate data points with one another by collecting, importing and collating huge volume of

data from different sources into a single platform. This can include internal data, such as from past

marketing campaigns, as well as ongoing web site traffic patterns, such as through measurement

of content most often read, number of searches made, specific actions taken, sites/sections/pages

visited, site registration information, etc.

Today, this combination of rich online data is now being melded with off-line data that includes

demographic, psychographic, lifestyle, product registration data, attitudinal and transactional data

points (among others) to create a much deeper targeting model.

2. Go beyond basic page view activity

There is tremendous value in drawing from the words on site pages, the on-site search terms, the

referring search activity, on-site actions/events (like calculators, e-mailing articles, dealer locaters,

etc.), IP attributes, etc. This comprises a strategic technological course of action that is more

important than data collected from a basic data collection pixel. It is crucial to achieve competitive

advantage by getting all data on every possible page view, as opposed to a DMP that does simple

data collection through a container tag, or a conversion pixel on key pages.


AAsian

Imports

AsAuto Shoppers

AeAuto Enthusiasts


CsCoupe Shoppers

EcEconomy Intenders

DbDomestic Buyers

LbLuxury Buyers

AiAuto Influencers


SsSedan Shoppers

TrTruck Buyers


BwBook Worms

CfComedy Fans

HfHorror Fans

DrDrama Fans

EiEntertainment

Influencers

MlMusic Lovers

VgVideo Gamers

TvTv Enthusiasts

XBoxXBox

Enthusiasts

NdsNds

Enthusiasts

RsRomanticShoppers

AfAction Fans

CgCasual Gamers

DvdDvd Buyers

MgMovie-Goers


Ps3Ps3

Enthusiasts

FamFamily

Shoppers

WiiWii

Enthusiasts

SfSci-Fi Movie

Shoppers

BtsBack-To-School

Clothing &Supplies

SpSpring Seasonal

Shoppers


SrSummerTravelers

WsWinter Clothing

Shoppers

Auto Loans

FeFootball

Enthusiasts

Al


Bi

Career Seekers

BdBusiness

Influencers


Ca

EducationSeekers

Ha

InsuranceShoppers

EsHome

Accountants

IReal Estate &

Mortgage Shoppers

Re

RetirementPlanners

Se


RpSavvy Economic

So StStock Trader

GeGolf

Enthusiasts

HHispanic

LmLife Milestones

MbMom & Baby

MMen

NyNew Years

Resolution Makers

OeOutdoor

Enthusiast


Individuals

PiPolitical

Influencers

PpProud Parents

SSingles

SocSocial

Networkers


BcBudget Conscious

FFoodies

BfBeauty & Fashion

AcAffluent Consumer

HsHoliday Shoppers

HhHip Homemakers

HiHome Improvement

Enthusiasts

OsOnline Shoppers

RRetirees

PlPet Lovers

HwHealth & Wellness

Advocates

SbSports Buffs

WWomen


FsFall Clothing

Shoppers

AaAfrican

American



FanFantasy Sports

BtsBack-To-School

Clothing & Supplies

HdHoliday Dinner

Planners

SiShopping

Influencers

SpSpring Seasonal

Shoppers

ValValentine's Day

BtgBack To School



TriTravel

Influencers

CvCruise

Vacationers

HtHawaii

Travellers

BtBusinessTravelers


CeCell Phone

Enthuisiasts

CoComputerShoppers

MtMexico

Travelers

GlGadget Lovers

HgHoliday Gadget

Shoppers


3. Leveraging data management platforms to control and manage ongoing campaign data

Data is the fuel that runs any effective online targeting campaign. However, collecting data for data’s

sake is like having a reserve of gasoline that only ever sits in a container in the garage—until it’s put

to proper use, it has little value.

Because audience targeting campaigns can be very complex and because there are frequently

multiple channels, systems, and databases that all need to work together, it is paramount that

advertisers have access to data management tools which give them the correct insight and

understanding they need in order to make important targeting decisions.

By using a single platform to control and manage data, advertisers are able to collect and

apply granular insights and campaign optimization from multiple points of view and apply this

understanding to all their campaigns.

4. Defining and building precise target audiences

Accurate targeting requires the ability to define your audience explicitly, clearly and, most importantly,

accurately. Data management platforms empower publishers and advertisers to apply logic controls

so they can better manage audience segments based on their unique needs and allow publishers to

better understand, define, and build true audiences across multiple dimensions used to target online

advertising campaigns.

A key component to audience definition is having the tools to transparently understand what

elements define an audience. Too often there is a reliance on unseen algorithms or “black box”

solutions, and guesswork becomes a common default when defining audience segments. While this

may have been acceptable in the early days, the growing sophistication of online targeting, the need

to replicate the same target groups across multiple channels, and the greater awareness of data

quality and (sources) mean this is no longer sufficient.

5. Connecting audiences with available inventory across multiple buying and selling points

In a multi-channel/multi-partnership/multi-platform environment it is essential that any audience

segment built can be shared and used, based on the needs of the publisher or advertiser. With data

management platforms, the tools also need to offer total control of who has access to and use of

any segment. At the same time, the platform must offer the flexibility to allow different audiences

to be bought, sold or shared across the multiple partnerships that operate in the online advertising

ecosystem.


AAsian

Imports

AsAuto Shoppers

AeAuto Enthusiasts


CsCoupe Shoppers

EcEconomy Intenders

DbDomestic Buyers

LbLuxury Buyers

AiAuto Influencers


SsSedan Shoppers

TrTruck Buyers


BwBook Worms

CfComedy Fans

HfHorror Fans

DrDrama Fans

EiEntertainment

Influencers

MlMusic Lovers

VgVideo Gamers

TvTv Enthusiasts

XBoxXBox

Enthusiasts

NdsNds

Enthusiasts

RsRomanticShoppers

AfAction Fans

CgCasual Gamers

DvdDvd Buyers

MgMovie-Goers


Ps3Ps3

Enthusiasts

FamFamily

Shoppers

WiiWii

Enthusiasts

SfSci-Fi Movie

Shoppers

BtsBack-To-School

Clothing &Supplies

SpSpring Seasonal

Shoppers


SrSummerTravelers

WsWinter Clothing

Shoppers

Auto Loans

FeFootball

Enthusiasts

Al


Bi

Career Seekers

BdBusiness

Influencers


Ca

EducationSeekers

Ha

InsuranceShoppers

EsHome

Accountants

IReal Estate &

Mortgage Shoppers

Re

RetirementPlanners

Se


RpSavvy Economic

So StStock Trader

GeGolf

Enthusiasts

HHispanic

LmLife Milestones

MbMom & Baby

MMen

NyNew Years

Resolution Makers

OeOutdoor

Enthusiast


Individuals

PiPolitical

Influencers

PpProud Parents

SSingles

SocSocial

Networkers


BcBudget Conscious

FFoodies

BfBeauty & Fashion

AcAffluent Consumer

HsHoliday Shoppers

HhHip Homemakers

HiHome Improvement

Enthusiasts

OsOnline Shoppers

RRetirees

PlPet Lovers

HwHealth & Wellness

Advocates

SbSports Buffs

WWomen


FsFall Clothing

Shoppers

AaAfrican

American



FanFantasy Sports

BtsBack-To-School

Clothing & Supplies

HdHoliday Dinner

Planners

SiShopping

Influencers

SpSpring Seasonal

Shoppers

ValValentine's Day

BtgBack To School



TriTravel

Influencers

CvCruise

Vacationers

HtHawaii

Travellers

BtBusinessTravelers


CeCell Phone

Enthuisiasts

CoComputerShoppers

MtMexico

Travelers

GlGadget Lovers

HgHoliday Gadget

Shoppers


Although primarily used today for online display advertising, any data management platform should

also be flexible enough to allow it to work across a multitude of channels. From measuring video

campaigns through to mobile, the platform should offer real channel connectivity, ensuring that

audiences can be defined and reached based on campaign needs and not siloed by channel.

Such flexibility also has applications for offline activity. Advertisers should have the ability to tie in

audience targeting between online and offline sources, enabling truly integrated campaigns to be

developed and executed.

6. Employing campaign insights to optimize and refine targeted campaigns

Any effective platform needs to offer a suite of reporting and analytics to drive audience optimization

and to meet and maximize overall campaign performance goals.

Providing the granularity of intelligence for fine-tuning audience targeting definitions is essential in

order to focus on the key data drivers that comprise an audience. However, this needs to be coupled

with the real-time capabilities so that campaign performance can be fine-tuned and new parameters

tested and implemented mid-campaign.

7. Providing control, transparency and reproducibility for future campaigns

When working with multiple parties and media producers, the concept of “target audience” can get

lost in translation, as each partner may define an audience differently. Any effective data management

platform should give advertisers control of definitions rather than accept another party’s interpretation

of it. This then provides the ability to judge the effectiveness of different channels by comparing the

performance across multiple media sources to further optimize campaigns.

With advertisers controlling how audiences are defined, real transparency is possible by sharing an

understanding of exactly which data points an audience is based upon. As mentioned previously,

blackbox solutions prevent such transparency from being possible. In turn, this makes it very difficult

to see what drives an audience, whether the original audience truly reflects the profile required by the

marketer and how profiles can be refined and optimized during a campaign.

The ability to build and save an audience on a data management platform ensures this same segment

(and its associated definition) can be used in the future, with the marketer having the reassurance

it will be replicated exactly. This gives publishers the confidence that when advertisers repeat

a campaign they will deliver to the same audience and enable advertisers to replicate successful

campaigns and accurately compare results.


8

Defining your Audience Strategy

through the Behaviorally Driven

Marketplace

AAsian

Imports

AsAuto Shoppers

AeAuto Enthusiasts


CsCoupe Shoppers

EcEconomy Intenders

DbDomestic Buyers

LbLuxury Buyers

AiAuto Influencers


SsSedan Shoppers

TrTruck Buyers


BwBook Worms

CfComedy Fans

HfHorror Fans

DrDrama Fans

EiEntertainment

Influencers

MlMusic Lovers

VgVideo Gamers

TvTv Enthusiasts

XBoxXBox

Enthusiasts

NdsNds

Enthusiasts

RsRomanticShoppers

AfAction Fans

CgCasual Gamers

DvdDvd Buyers

MgMovie-Goers


Ps3Ps3

Enthusiasts

FamFamily

Shoppers

WiiWii

Enthusiasts

SfSci-Fi Movie

Shoppers

BtsBack-To-School

Clothing &Supplies

SpSpring Seasonal

Shoppers


SrSummerTravelers

WsWinter Clothing

Shoppers

Auto Loans

FeFootball

Enthusiasts

Al


Bi

Career Seekers

BdBusiness

Influencers


Ca

EducationSeekers

Ha

InsuranceShoppers

EsHome

Accountants

IReal Estate &

Mortgage Shoppers

Re

RetirementPlanners

Se


RpSavvy Economic

So StStock Trader

GeGolf

Enthusiasts

HHispanic

LmLife Milestones

MbMom & Baby

MMen

NyNew Years

Resolution Makers

OeOutdoor

Enthusiast


Individuals

PiPolitical

Influencers

PpProud Parents

SSingles

SocSocial

Networkers


BcBudget Conscious

FFoodies

BfBeauty & Fashion

AcAffluent Consumer

HsHoliday Shoppers

HhHip Homemakers

HiHome Improvement

Enthusiasts

OsOnline Shoppers

RRetirees

PlPet Lovers

HwHealth & Wellness

Advocates

SbSports Buffs

WWomen


FsFall Clothing

Shoppers

AaAfrican

American



FanFantasy Sports

BtsBack-To-School

Clothing & Supplies

HdHoliday Dinner

Planners

SiShopping

Influencers

SpSpring Seasonal

Shoppers

ValValentine's Day

BtgBack To School



TriTravel

Influencers

CvCruise

Vacationers

HtHawaii

Travellers

BtBusinessTravelers


CeCell Phone

Enthuisiasts

CoComputerShoppers

MtMexico

Travelers

GlGadget Lovers

HgHoliday Gadget

Shoppers


Defining your Audience Strategy through the Behaviorally Driven Marketplace

P erhaps the biggest challenge for advertisers today is in how they define the criteria needed

to identify target audiences. The traditional obsession of mass media advertising around

volume has trained many advertisers to focus their efforts on ways they can reach the greatest

number of consumers—with little consideration as to who they are or what they want or need. Apart

from the time and money these practices waste, the sad truth is that these forms of advertising

generally reach a vast majority of consumers for whom the message is pointless or irrelevant.

Reaching targeted audiences is a necessary ingredient for today’s advertisers. This means that

publishers need to be able to help define the needs and interests of site visitors on an ongoing basis

so the data can be paired with an advertiser’s message to allow the ‘right’ consumers to come in

contact with messages that are most timely and relevant to their needs and interests. However,

identifying what a consumer wants and needs is the first major hurdle that both publishers and

advertisers need to get over.

One of the main challenges that all advertisers face is that audiences of all kinds are constantly in a

state of flux and even seemingly easy to define consumer needs change from moment to moment.

For example, a consumer looking to buy a new car may express all sorts of indicative behaviors in

their online behaviors through the sites they visited, the themes of the content they access and the

ads they interact with. If they match all of the points of criteria that a publisher has set out to help

identify them, they can easily be targeted as a consumer showing a strong interest in buying a new

car. This is a perfect scenario right up to the point where that consumer buys a new car. Right after

that point the model falls apart. In fact, this consumer immediately shifts from being highly receptive

to offers for new cars to not being receptive at all! To keep reaching a consumer with a targeted offer

after the fact is largely useless and can even create a negative branding effect.

This is one of the challenges around simple retargeting. Although currently a very popular and often

effective solution, compared with data-driven targeting, it can be unsophisticated and the danger of

not building in an element of recency means consumers will continue to be targeted long after they

have actually made the purchase.


10

Defining ‘Lookalike’ Behaviors to Deliver

Audiences

AAsian

Imports

AsAuto Shoppers

AeAuto Enthusiasts


CsCoupe Shoppers

EcEconomy Intenders

DbDomestic Buyers

LbLuxury Buyers

AiAuto Influencers


SsSedan Shoppers

TrTruck Buyers


BwBook Worms

CfComedy Fans

HfHorror Fans

DrDrama Fans

EiEntertainment

Influencers

MlMusic Lovers

VgVideo Gamers

TvTv Enthusiasts

XBoxXBox

Enthusiasts

NdsNds

Enthusiasts

RsRomanticShoppers

AfAction Fans

CgCasual Gamers

DvdDvd Buyers

MgMovie-Goers


Ps3Ps3

Enthusiasts

FamFamily

Shoppers

WiiWii

Enthusiasts

SfSci-Fi Movie

Shoppers

BtsBack-To-School

Clothing &Supplies

SpSpring Seasonal

Shoppers


SrSummerTravelers

WsWinter Clothing

Shoppers

Auto Loans

FeFootball

Enthusiasts

Al


Bi

Career Seekers

BdBusiness

Influencers


Ca

EducationSeekers

Ha

InsuranceShoppers

EsHome

Accountants

IReal Estate &

Mortgage Shoppers

Re

RetirementPlanners

Se


RpSavvy Economic

So StStock Trader

GeGolf

Enthusiasts

HHispanic

LmLife Milestones

MbMom & Baby

MMen

NyNew Years

Resolution Makers

OeOutdoor

Enthusiast


Individuals

PiPolitical

Influencers

PpProud Parents

SSingles

SocSocial

Networkers


BcBudget Conscious

FFoodies

BfBeauty & Fashion

AcAffluent Consumer

HsHoliday Shoppers

HhHip Homemakers

HiHome Improvement

Enthusiasts

OsOnline Shoppers

RRetirees

PlPet Lovers

HwHealth & Wellness

Advocates

SbSports Buffs

WWomen


FsFall Clothing

Shoppers

AaAfrican

American



FanFantasy Sports

BtsBack-To-School

Clothing & Supplies

HdHoliday Dinner

Planners

SiShopping

Influencers

SpSpring Seasonal

Shoppers

ValValentine's Day

BtgBack To School



TriTravel

Influencers

CvCruise

Vacationers

HtHawaii

Travellers

BtBusinessTravelers


CeCell Phone

Enthuisiasts

CoComputerShoppers

MtMexico

Travelers

GlGadget Lovers

HgHoliday Gadget

Shoppers


Defining ‘Lookalike’ Behaviors to Deliver Audiences

T he core of any successful audience strategy is based on how effectively publishers can

reveal and decipher human behaviors when consumers are in the buying window for a

product or service. While overall human behaviors can be complex, there are plenty of consumer

behaviors that offer a predictive outlook as to their thoughts and intentions in the future.

Often, the inability of some platforms to harvest and handle behavioral data at scale and in the

necessary volumes required to build meaningful audiences means different approaches need to

be adopted.

To make up for this lack of actual data, advertisers are often restricted to what they can model

out or observe directly. As a result, we have seen the rise in use of ‘lookalike’ modeling to define

audiences—a technique used in the offline world to ‘fill in the gaps’ when actual data is at a

premium. This approach is based upon the idea of identifying the behavioral pathways of a small

group of known customers—often derived from broad survey information around demographics

and interests—and using this information to help define users with similar characteristics, hence the

term ‘lookalikes’. By modeling out, this allows a larger audience segment to be created. Although

a recognized approach, these ‘lookalike’ audience segments represent a much less sophisticated

and accurate audience targeting strategy, as real data will always be the most valuable for delivering

insight and precision. For example, in the offline world this is reflected in the fact such lists would be

cheaper to buy than those built purely on actual data. As a result, lookalike targeting can be limited in

its usefulness for several reasons.

The first is that lookalike targeting makes predictive assumptions about a consumer’s behavior based

on the behaviors of other consumers. While this approach may bear fruit, the challenges that most

publishers face is that these suppositions are based on ‘best case guesstimates’ thinking and not

real ongoing consumer behaviors.

For example, anybody who has ever been a parent has certainly gone through a shift in their personal

perspective of the world and in how they behave. However, the simple act of becoming a parent

doesn’t prescribe a universal set of behaviors that all parents suddenly follow. Certainly there are

clear distinctions between the needs, attitudes and behaviors of consumers who are raising children

compared against other consumers who have never had children, but there is still a huge amount of

variability within the group being classified as ‘parents’ stemming from factors such as the age of

their children, lifestyles, educational concerns and possibly thousands of other points of criteria.


AAsian

Imports

AsAuto Shoppers

AeAuto Enthusiasts


CsCoupe Shoppers

EcEconomy Intenders

DbDomestic Buyers

LbLuxury Buyers

AiAuto Influencers


SsSedan Shoppers

TrTruck Buyers


BwBook Worms

CfComedy Fans

HfHorror Fans

DrDrama Fans

EiEntertainment

Influencers

MlMusic Lovers

VgVideo Gamers

TvTv Enthusiasts

XBoxXBox

Enthusiasts

NdsNds

Enthusiasts

RsRomanticShoppers

AfAction Fans

CgCasual Gamers

DvdDvd Buyers

MgMovie-Goers


Ps3Ps3

Enthusiasts

FamFamily

Shoppers

WiiWii

Enthusiasts

SfSci-Fi Movie

Shoppers

BtsBack-To-School

Clothing &Supplies

SpSpring Seasonal

Shoppers


SrSummerTravelers

WsWinter Clothing

Shoppers

Auto Loans

FeFootball

Enthusiasts

Al


Bi

Career Seekers

BdBusiness

Influencers


Ca

EducationSeekers

Ha

InsuranceShoppers

EsHome

Accountants

IReal Estate &

Mortgage Shoppers

Re

RetirementPlanners

Se


RpSavvy Economic

So StStock Trader

GeGolf

Enthusiasts

HHispanic

LmLife Milestones

MbMom & Baby

MMen

NyNew Years

Resolution Makers

OeOutdoor

Enthusiast


Individuals

PiPolitical

Influencers

PpProud Parents

SSingles

SocSocial

Networkers


BcBudget Conscious

FFoodies

BfBeauty & Fashion

AcAffluent Consumer

HsHoliday Shoppers

HhHip Homemakers

HiHome Improvement

Enthusiasts

OsOnline Shoppers

RRetirees

PlPet Lovers

HwHealth & Wellness

Advocates

SbSports Buffs

WWomen


FsFall Clothing

Shoppers

AaAfrican

American



FanFantasy Sports

BtsBack-To-School

Clothing & Supplies

HdHoliday Dinner

Planners

SiShopping

Influencers

SpSpring Seasonal

Shoppers

ValValentine's Day

BtgBack To School



TriTravel

Influencers

CvCruise

Vacationers

HtHawaii

Travellers

BtBusinessTravelers


CeCell Phone

Enthuisiasts

CoComputerShoppers

MtMexico

Travelers

GlGadget Lovers

HgHoliday Gadget

Shoppers


This means that a publisher looking to create a target audience segment surrounding the ongoing

needs of parents would need to have clearly defined criteria in place to sort this larger group into

perhaps dozens of smaller audience segments in order for it to be useful to many advertisers.

Segments that are too generalized are still going to reach a large number of the wrong consumers.

The second challenge is around accuracy. The accuracy of any model is driven by the proportion

of actual data used to derive it. The smaller your sample size and the less real data used, the

more guesswork is needed. Modeling from small volumes on often broad data fails to provide

the differentiation and discrimination that building targeting around actual data delivers, leading

to potentially a number of inaccurate suppositions to be made. For example, say a marketer was

creating a campaign to drive traffic to a site that sold tickets to football games. Looking at a small

sample may indicate that the target audience is mainly men between the ages of 18 and 50—a

supposition that seems plausible. However, using only these criteria to target an audience excludes

the possibility that there are also plenty of women who are football fans. This scenario also doesn’t

take into consideration that not all men in the target gender and age range will be football fans. It also

doesn’t take into consideration the other interests that sports fans in general may have which could

be used to drive additional interest and traffic to sites that address these needs and desires.


While these initial targeting suppositions may sharpen the marketing focus somewhat, it still offers

an incomplete picture of who the audience really is and what they really want or need. In order to be

effective today, advertisers need to tightly sharpen the targeting focus to take into consideration real

behavioral data that can better show them where their audience is based on a flow of actions and

behaviors that cares less about specific data points like gender and age and instead looks for criteria

that can be associated with, for example, football fans’ behaviors and more specifically football fans

who buy tickets to games.

Inherent in the lookalike model is that users with similar characteristics will act in a similar manner to

the group the model was built on. However, this makes a very broad assumption that they will also

be in the market for the particular offering. People are only in market for a short period of time and

although you can identify similar group characteristics through modeling, this is very different from

having a genuine interest in something and being in the buying window. As a result, you are often

faced with the situation of reaching audiences that are not interested in your offering.

Finally, using the lookalike approach needs to be seen in the context of the reach/relevancy

argument. By its very nature, actual data will lose out when it comes to reach. However, extending

reach requires targeting to be much broader and accuracy to be sacrificed. Again, a mass market

mentality moves away from the fundamental need to reach a defined targeted audience.


14

Looking Beyond the ‘Lookalikes’

Looking Beyond the ‘Lookalikes’

W hile lookalike modeling can be valuable and does have a role to play, even taking into

account clever analytics and a skilled data analyst, modeled data can never be as

powerful as actual information. It’s therefore important to recognize the difference between known

data and imputed data.

For advertisers, effective marketing is less about finding an audience than meeting their campaign

objectives. In short, advertisers want to see a positive yield from the time, resources and money they

put into their advertising. Reaching the right audience is only the first step to making this happen.

Mostly, advertisers want to reach the right consumers who will be most likely to respond favorably to

their campaign.

In order to do this, advertisers need to have access to audience segments that are continuously

being revised and refined to spot consumer behaviors or trends that indicate which consumers are

potentially most receptive to an offer. This requires the use of real data feedback loops.

Real data feedback loops enable publishers and advertisers to eliminate guesswork by creating

transparent systems that show what is really happening during a campaign. For example, campaign

planners may decide on a target audience that they think will be most interested in a product or

service only to discover, by measuring the types of consumers who actually respond to the campaign,

that the people the advertiser wanted to reach and who showed up are two different audiences.


16

The Audience Targeting Shift:

Finding the New Path

AAsian

Imports

AsAuto Shoppers

AeAuto Enthusiasts


CsCoupe Shoppers

EcEconomy Intenders

DbDomestic Buyers

LbLuxury Buyers

AiAuto Influencers


SsSedan Shoppers

TrTruck Buyers


BwBook Worms

CfComedy Fans

HfHorror Fans

DrDrama Fans

EiEntertainment

Influencers

MlMusic Lovers

VgVideo Gamers

TvTv Enthusiasts

XBoxXBox

Enthusiasts

NdsNds

Enthusiasts

RsRomanticShoppers

AfAction Fans

CgCasual Gamers

DvdDvd Buyers

MgMovie-Goers


Ps3Ps3

Enthusiasts

FamFamily

Shoppers

WiiWii

Enthusiasts

SfSci-Fi Movie

Shoppers

BtsBack-To-School

Clothing &Supplies

SpSpring Seasonal

Shoppers


SrSummerTravelers

WsWinter Clothing

Shoppers

Auto Loans

FeFootball

Enthusiasts

Al


Bi

Career Seekers

BdBusiness

Influencers


Ca

EducationSeekers

Ha

InsuranceShoppers

EsHome

Accountants

IReal Estate &

Mortgage Shoppers

Re

RetirementPlanners

Se


RpSavvy Economic

So StStock Trader

GeGolf

Enthusiasts

HHispanic

LmLife Milestones

MbMom & Baby

MMen

NyNew Years

Resolution Makers

OeOutdoor

Enthusiast


Individuals

PiPolitical

Influencers

PpProud Parents

SSingles

SocSocial

Networkers


BcBudget Conscious

FFoodies

BfBeauty & Fashion

AcAffluent Consumer

HsHoliday Shoppers

HhHip Homemakers

HiHome Improvement

Enthusiasts

OsOnline Shoppers

RRetirees

PlPet Lovers

HwHealth & Wellness

Advocates

SbSports Buffs

WWomen


FsFall Clothing

Shoppers

AaAfrican

American



FanFantasy Sports

BtsBack-To-School

Clothing & Supplies

HdHoliday Dinner

Planners

SiShopping

Influencers

SpSpring Seasonal

Shoppers

ValValentine's Day

BtgBack To School



TriTravel

Influencers

CvCruise

Vacationers

HtHawaii

Travellers

BtBusinessTravelers


CeCell Phone

Enthuisiasts

CoComputerShoppers

MtMexico

Travelers

GlGadget Lovers

HgHoliday Gadget

Shoppers


The Audience Targeting Shift: Finding the New Path

W hile audience targeting offers unprecedented insights into optimizing media buying

and ad placement, it is important to understand that these are not ‘set it and forget it’

programs nor are they self-sustaining.

Realistically there are no magical solutions in which audience segments manage themselves. Like

anything of value, audience targeting requires ongoing updates and changes to targeting criteria in

order to be effective. It’s also worth mentioning that few publishers reach their precise targeting goals

on the first try. All segments require an evolution that is based on campaign feedback and collecting

ongoing consumer and site data.

Audience targeting is built upon a foundation that looks for the relationship between the people that

advertisers want to ‘talk’ to—those consumers who have exhibited behaviors that indicate that they

would like to be part of the advertiser’s conversation.

In order to create these relationships, publishers first need to identify which aspects of a site visitor’s

behavior are most in line with those people who have met the advertiser’s needs in the past. These

‘behaviors’ are derived from 1st party data collected by the publishers themselves along with more

diverse 3rd party data being shared through ad networks, ad exchanges, social media sources, data

exchanges and, increasingly, via offline data.


Today, audience targeting cannot be seen as a single approach but represents a wide range of

different practices that includes segment targeting, behavioral targeting, publisher retargeting,

predictive targeting and contextual targeting, among others.

One challenge with many of the targeting solutions being offered today is that different vendors

define ‘audience targeting’ differently. Some vendors offer audience targeting solutions that are basic

demographically focused campaigns. Others rely purely on placing ads on contextually relevant sites

and pages.

While each solution offers unique strengths and challenges, for the purposes of this paper, we will

define audience targeting as data-driven targeting that focuses on the creation of defined audience

segments. In turn, these segments can be used by publishers and advertisers to create more direct

ways to place ads in front of the most receptive consumers regardless of which web sites and pages

they visit. In short, audience targeting enables advertisers to buy audiences and not pages.


19

Changes for Advertisers

AAsian

Imports

AsAuto Shoppers

AeAuto Enthusiasts


CsCoupe Shoppers

EcEconomy Intenders

DbDomestic Buyers

LbLuxury Buyers

AiAuto Influencers


SsSedan Shoppers

TrTruck Buyers


BwBook Worms

CfComedy Fans

HfHorror Fans

DrDrama Fans

EiEntertainment

Influencers

MlMusic Lovers

VgVideo Gamers

TvTv Enthusiasts

XBoxXBox

Enthusiasts

NdsNds

Enthusiasts

RsRomanticShoppers

AfAction Fans

CgCasual Gamers

DvdDvd Buyers

MgMovie-Goers


Ps3Ps3

Enthusiasts

FamFamily

Shoppers

WiiWii

Enthusiasts

SfSci-Fi Movie

Shoppers

BtsBack-To-School

Clothing &Supplies

SpSpring Seasonal

Shoppers


SrSummerTravelers

WsWinter Clothing

Shoppers

Auto Loans

FeFootball

Enthusiasts

Al


Bi

Career Seekers

BdBusiness

Influencers


Ca

EducationSeekers

Ha

InsuranceShoppers

EsHome

Accountants

IReal Estate &

Mortgage Shoppers

Re

RetirementPlanners

Se


RpSavvy Economic

So StStock Trader

GeGolf

Enthusiasts

HHispanic

LmLife Milestones

MbMom & Baby

MMen

NyNew Years

Resolution Makers

OeOutdoor

Enthusiast


Individuals

PiPolitical

Influencers

PpProud Parents

SSingles

SocSocial

Networkers


BcBudget Conscious

FFoodies

BfBeauty & Fashion

AcAffluent Consumer

HsHoliday Shoppers

HhHip Homemakers

HiHome Improvement

Enthusiasts

OsOnline Shoppers

RRetirees

PlPet Lovers

HwHealth & Wellness

Advocates

SbSports Buffs

WWomen


FsFall Clothing

Shoppers

AaAfrican

American



FanFantasy Sports

BtsBack-To-School

Clothing & Supplies

HdHoliday Dinner

Planners

SiShopping

Influencers

SpSpring Seasonal

Shoppers

ValValentine's Day

BtgBack To School



TriTravel

Influencers

CvCruise

Vacationers

HtHawaii

Travellers

BtBusinessTravelers


CeCell Phone

Enthuisiasts

CoComputerShoppers

MtMexico

Travelers

GlGadget Lovers

HgHoliday Gadget

Shoppers


Changes for Advertisers

R ecent advances in audience targeting have also provided advertisers powerful new tools for

better reaching consumers most likely to respond to their advertising and also most likely to

convert.

Because of the depth of data being used in audience targeting today, publishers and advertisers

can create much more granular profiles that address individual consumer needs. This precise level

of personal targeting is being coupled with advertising systems that can create dynamic display ads

that can rebuild themselves on the fly to create personalized and impactful advertising solutions to

enhance an advertiser’s audience strategy.

How advertisers are buying impressions is changing too. Unlike models of just a few years ago when

media buying was based on buying ad placement on specific sites in quantities of 1000 impressions

(CPM), today automated buying systems allow advertisers to buy single impressions, when they need

them, from a wide range of publishers. This means that advertisers can reach their target audiences

across sites and pages as needed in a highly efficient way.

Arrival of the Automated Infrastructure

W ith the rise of Search Engine Marketing (SEM) platforms like Google, came the idea of

bidding on individual impressions as they were needed.

This concept was introduced into the online display market with the emergence of the advertising

exchanges and new media transaction platforms. As a catalyst to the streamlining of online

advertising, these platforms heralded the arrival of a host of new platforms, technologies and

three letter acronyms (including DMPs) to support the requirements of the buy side or sell side (or,

sometimes, both).

For more information on these entities, please see the Glossary at the end.


AAsian

Imports

AsAuto Shoppers

AeAuto Enthusiasts


CsCoupe Shoppers

EcEconomy Intenders

DbDomestic Buyers

LbLuxury Buyers

AiAuto Influencers


SsSedan Shoppers

TrTruck Buyers


BwBook Worms

CfComedy Fans

HfHorror Fans

DrDrama Fans

EiEntertainment

Influencers

MlMusic Lovers

VgVideo Gamers

TvTv Enthusiasts

XBoxXBox

Enthusiasts

NdsNds

Enthusiasts

RsRomanticShoppers

AfAction Fans

CgCasual Gamers

DvdDvd Buyers

MgMovie-Goers


Ps3Ps3

Enthusiasts

FamFamily

Shoppers

WiiWii

Enthusiasts

SfSci-Fi Movie

Shoppers

BtsBack-To-School

Clothing &Supplies

SpSpring Seasonal

Shoppers


SrSummerTravelers

WsWinter Clothing

Shoppers

Auto Loans

FeFootball

Enthusiasts

Al


Bi

Career Seekers

BdBusiness

Influencers


Ca

EducationSeekers

Ha

InsuranceShoppers

EsHome

Accountants

IReal Estate &

Mortgage Shoppers

Re

RetirementPlanners

Se


RpSavvy Economic

So StStock Trader

GeGolf

Enthusiasts

HHispanic

LmLife Milestones

MbMom & Baby

MMen

NyNew Years

Resolution Makers

OeOutdoor

Enthusiast


Individuals

PiPolitical

Influencers

PpProud Parents

SSingles

SocSocial

Networkers


BcBudget Conscious

FFoodies

BfBeauty & Fashion

AcAffluent Consumer

HsHoliday Shoppers

HhHip Homemakers

HiHome Improvement

Enthusiasts

OsOnline Shoppers

RRetirees

PlPet Lovers

HwHealth & Wellness

Advocates

SbSports Buffs

WWomen


FsFall Clothing

Shoppers

AaAfrican

American



FanFantasy Sports

BtsBack-To-School

Clothing & Supplies

HdHoliday Dinner

Planners

SiShopping

Influencers

SpSpring Seasonal

Shoppers

ValValentine's Day

BtgBack To School



TriTravel

Influencers

CvCruise

Vacationers

HtHawaii

Travellers

BtBusinessTravelers


CeCell Phone

Enthuisiasts

CoComputerShoppers

MtMexico

Travelers

GlGadget Lovers

HgHoliday Gadget

Shoppers


Conclusion

A s target marketing matures and new systems are built from the real data being collected, greater and greater focus will be on better ways to collect data and then how it can be

measured, analyzed and continuously applied to engage consumers.

The rise of data management platforms means that publishers and advertisers are able to define more specifically who their target audiences are and, perhaps more importantly, why.

In turn, this data will be used to drive largely automated media transaction systems that can take

on the most difficult tasks of identifying target audiences while they are in motion and using applied

criteria to instantaneously deliver ads so that contact between the right message and right consumer

can be accomplished consistently.

This evolution means that audience segments that are based on ‘best scenario’ lookalike targeting

will continue to give way to solutions that are based on real and actionable data points. Data

management platforms take the guess work out of the equation for advertisers and publishers. These

new platforms allow for more accurate targeting by building audiences based on actual behaviors and

not just behavioral assumptions or broad, static survey responses. They also enable more relevant ad

placement by accurately measuring interest and intent (and not just related characteristics) to find the

right consumer. Perhaps the greatest benefit of the new data-driven platform is the flexibility they offer

advertisers and publishers. Instead of requiring that every nuance of a media buy is monitored, they

can instead allow the system to identify opportunity and place ads as required. Not only does this

free advertisers and publishers to focus on other important decisions, it also helps reduce points of

conflict between publishers and advertisers that often stem from instances where inventory may be

undelivered, resulting in ‘make goods’ and other alternations to media agreements.

This evolution also means that buying impressions in large, broad clusters or trying to buy audiences

based simply around contextual markers will become much less efficient and less common. The

overwhelmingly good news for all digital advertisers is that this new efficiency will lead to a greater

percentage of successful ad placement and increasing Return on Investment (ROI).

As each of these new tools are put into place, the sophistication of the platforms to handle that

data will continue to grow and so will their accuracy and value. For advertisers and publishers who

embrace these solutions today comes the added benefit of standing out as more competitive in

one’s market. It also means that late adopters will face a much greater challenge getting up to speed

should they wait too long.

At the end of the day, the benefits of accurate and actionable targeting are unquestionable. While there

are always challenges in adopting new ways to do business, having the right technology partners can

minimize those challenges and enable advertisers and publishers to reach those benefits more quickly.


22

Glossary of Industry Terms

AAsian

Imports

AsAuto Shoppers

AeAuto Enthusiasts


CsCoupe Shoppers

EcEconomy Intenders

DbDomestic Buyers

LbLuxury Buyers

AiAuto Influencers


SsSedan Shoppers

TrTruck Buyers


BwBook Worms

CfComedy Fans

HfHorror Fans

DrDrama Fans

EiEntertainment

Influencers

MlMusic Lovers

VgVideo Gamers

TvTv Enthusiasts

XBoxXBox

Enthusiasts

NdsNds

Enthusiasts

RsRomanticShoppers

AfAction Fans

CgCasual Gamers

DvdDvd Buyers

MgMovie-Goers


Ps3Ps3

Enthusiasts

FamFamily

Shoppers

WiiWii

Enthusiasts

SfSci-Fi Movie

Shoppers

BtsBack-To-School

Clothing &Supplies

SpSpring Seasonal

Shoppers


SrSummerTravelers

WsWinter Clothing

Shoppers

Auto Loans

FeFootball

Enthusiasts

Al


Bi

Career Seekers

BdBusiness

Influencers


Ca

EducationSeekers

Ha

InsuranceShoppers

EsHome

Accountants

IReal Estate &

Mortgage Shoppers

Re

RetirementPlanners

Se


RpSavvy Economic

So StStock Trader

GeGolf

Enthusiasts

HHispanic

LmLife Milestones

MbMom & Baby

MMen

NyNew Years

Resolution Makers

OeOutdoor

Enthusiast


Individuals

PiPolitical

Influencers

PpProud Parents

SSingles

SocSocial

Networkers


BcBudget Conscious

FFoodies

BfBeauty & Fashion

AcAffluent Consumer

HsHoliday Shoppers

HhHip Homemakers

HiHome Improvement

Enthusiasts

OsOnline Shoppers

RRetirees

PlPet Lovers

HwHealth & Wellness

Advocates

SbSports Buffs

WWomen


FsFall Clothing

Shoppers

AaAfrican

American



FanFantasy Sports

BtsBack-To-School

Clothing & Supplies

HdHoliday Dinner

Planners

SiShopping

Influencers

SpSpring Seasonal

Shoppers

ValValentine's Day

BtgBack To School



TriTravel

Influencers

CvCruise

Vacationers

HtHawaii

Travellers

BtBusinessTravelers


CeCell Phone

Enthuisiasts

CoComputerShoppers

MtMexico

Travelers

GlGadget Lovers

HgHoliday Gadget

Shoppers


Glossary of Industry Terms

T here are times when the ‘alphabet soup’ of new terms, acronyms and buzz words can

make even the most seasoned veteran feel like a stranger in a strange land. Hopefully this

glossary of the most common terms will help you navigate the online advertising landscape.

Ad ExchangeAd exchanges provide a sales channel to publishers and ad networks, as well as aggregated inventory to advertisers. They provide a technology platform that facilitates automated auction based pricing and buying in real-time.

Data Management Platform (DMP)A single platform for aggregating and managing multiple data sources—at scale—and then enabling transparent, precise audiences to be defined and targeted. These platforms deliver reporting and campaign insight to help drive optimization and refined targeting.

Day-part TargetingThe process of placing ads onto web pages using time of day, day of week or seasonal events as the criteria for placing a relevant message in front of consumers. An example would be running ads for coffee or breakfast foods during early morning hours.

Ad NetworkAd networks provide an outsourced sales capability for publishers and a means to aggregate inventory and audiences from numerous sources in a single buying opportunity for media buyers.

Behavioral SegmentRefers to a group of consumers who share similar targeting characteristics, i.e., people who show specific interest in a new car purchase or who exhibit behaviors that are consistent with people raising children.

Contextual TargetingThe placement of display or text ads on a web page based on the relationship between the ad content and keywords that exist on that page.

Data ExchangeAn auction-based marketplace allowing publishers to sell aggregated anonymized audience data to advertisers, agencies and networks.

Centrographic TargetingRefers to targeting criteria based on cultural markers associated with a geographic area. i.e., language, climate and traditional behaviors are all examples.

Client SideRefers to actions that take place on the consumer’s computer including requests for web page data and functions performed by computer applications being run by consumers.

Behavioral TargetingThe process of using a consumer’s ‘behavior’ or online activities on the web to help determine that consumer’s needs, areas of interest and mood for the purpose of matching that consumer with ads that meet those areas of interest.

Ad ImpressionRefers to a single ad placement on a web page.


AAsian

Imports

AsAuto Shoppers

AeAuto Enthusiasts


CsCoupe Shoppers

EcEconomy Intenders

DbDomestic Buyers

LbLuxury Buyers

AiAuto Influencers


SsSedan Shoppers

TrTruck Buyers


BwBook Worms

CfComedy Fans

HfHorror Fans

DrDrama Fans

EiEntertainment

Influencers

MlMusic Lovers

VgVideo Gamers

TvTv Enthusiasts

XBoxXBox

Enthusiasts

NdsNds

Enthusiasts

RsRomanticShoppers

AfAction Fans

CgCasual Gamers

DvdDvd Buyers

MgMovie-Goers


Ps3Ps3

Enthusiasts

FamFamily

Shoppers

WiiWii

Enthusiasts

SfSci-Fi Movie

Shoppers

BtsBack-To-School

Clothing &Supplies

SpSpring Seasonal

Shoppers


SrSummerTravelers

WsWinter Clothing

Shoppers

Auto Loans

FeFootball

Enthusiasts

Al


Bi

Career Seekers

BdBusiness

Influencers


Ca

EducationSeekers

Ha

InsuranceShoppers

EsHome

Accountants

IReal Estate &

Mortgage Shoppers

Re

RetirementPlanners

Se


RpSavvy Economic

So StStock Trader

GeGolf

Enthusiasts

HHispanic

LmLife Milestones

MbMom & Baby

MMen

NyNew Years

Resolution Makers

OeOutdoor

Enthusiast


Individuals

PiPolitical

Influencers

PpProud Parents

SSingles

SocSocial

Networkers


BcBudget Conscious

FFoodies

BfBeauty & Fashion

AcAffluent Consumer

HsHoliday Shoppers

HhHip Homemakers

HiHome Improvement

Enthusiasts

OsOnline Shoppers

RRetirees

PlPet Lovers

HwHealth & Wellness

Advocates

SbSports Buffs

WWomen


FsFall Clothing

Shoppers

AaAfrican

American



FanFantasy Sports

BtsBack-To-School

Clothing & Supplies

HdHoliday Dinner

Planners

SiShopping

Influencers

SpSpring Seasonal

Shoppers

ValValentine's Day

BtgBack To School



TriTravel

Influencers

CvCruise

Vacationers

HtHawaii

Travellers

BtBusinessTravelers


CeCell Phone

Enthuisiasts

CoComputerShoppers

MtMexico

Travelers

GlGadget Lovers

HgHoliday Gadget

Shoppers


Third Party CookiesRefers to cookies that are placed on a consumer’s browser by advertisers or other technology providers and not the web site publishers.

Demand Side Platform (DSP)Also called buy side optimizers or buy side platforms, Demand Side Platforms provide centralized (aggregated) media buying from multiple sources including ad exchanges, ad networks and sell side platforms, leveraging real time bidding capabilities. This allows advertisers to better manage their media buying across multiple sources of inventory to ensure they are purchasing the most valuable inventory to them based on the needs of their campaign.

Predictive TargetingTargeting model using onsite surveys or other third party data to define the characteristics of an audience. Using the profile, lookalike users are identified displaying similar characteristics to build up a larger universe.

Real Time Bidding (RTB)A function of the real time trading of impressions in an auction environment, RTB allows the buyer to decide (in real time) whether to bid or not bid for a specific impression based on additional data they have. In addition, the buyer decides the bid price based on the perceived value of the impression to them. From the sell side, RTB provides the opportunity for publishers to better monetize their inventory.

RetargetingRefers to a form of audience targeting in which 1st and 3rd party cookies are used to determine a consumer’s previous interest with a site’s offering. Retargeting allows advertisers to reposition ads in front of that consumer on sites other than their own in the future in an effort to get the consumer to return to their site and continue the relationship.

Semantic TargetingRefers to page targeting based on the explicit meaning of the words on a web page and not just keyword relationships. Helps to better define contextual relevance in which keyword meaning and ads may be poorly matched.

Server SideRefers to functions and operations that are performed on the publisher’s server and not those of the consumer.

Supply Side Platform (SSP)Also known as yield optimizers or supply side optimizers, they provide outsourced media selling and ad network management services for publishers. They allow them to manage their ad inventory and maximize its value by making it available to as wide a range of potential buyers as possible.

First Party CookieCookies which are placed into a site visitor’s browser by the web site publisher to denote an existing relationship.

IP TargetingRefers to targeting geographic audiences based on the physical locations of their computers and networks.

Psychographic TargetingTargeting model based on the beliefs, attitudes, interests and opinions of consumers. Often considered the ‘essence’ of what drives many consumer decisions.

Technographic TargetingRefers to targeting that is based on the technology that a consumer uses to access the Internet. A computer’s features, CPU speed, browser type, web access speed and 3rd party plug ins can all be used to help identify a consumer’s ability to view specific content like Flash-based web content and digital video.


© 2011 AudienceScience, Inc. All rights reserved. AudienceScience, the AudienceScience logotype, and other products and services of AudienceScience, Inc. are trademarks, service marks, or registered trademarks of AudienceScience, Inc. 0911 Part No. 20110913

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About AudienceScience

AudienceScience is the largest and most trusted audience aggregator in the world.

As an early innovator of online advertising technology, AudienceScience continues to

revolutionize the industry, enabling universal access to audiences and driving digital

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and data management platform, delivering efficient and effective online advertising,

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enabling streamlined and transparent premium media buying and selling, including

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Welcome to Evolution: Audience Based Marketing - Now and Moving Forward

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Transcript of Welcome to Evolution: Audience Based Marketing - Now and Moving Forward