Audience Targeting

company: Jupiter Research

>

1www.iacadvertising.com

Turning Audience Targeting into Revenue

Audience Targeting: Definition (an attempt)

Behavioral Targeting: The process of identifying patterns of user interactions, and incorporating them into the ad delivery decision

Targeting: The process of identifying segments of similar users, and incorporating them into the ad delivery decision

Interaction

Recency Frequency

AOL acquires Tacoda

DCLK halts BT

Engage announces user profile DB

DCLK acquires Abacus

Senate inquiry of NebuAd

Audience Targeting: A Brief History of Starts and Stops

Gator changes name to Claria

BT technologies emerge BT networks

emerge

Tacoda winds down BT software sales

…eventually shutters

Privacy investigation

Google announces BT effort

FTC publishes guidelines

…issues “last chance” to regulate

Data co’s. emerge

0298 01 04 08


09

Yahoo and Google launch privacy tools


DSP’semerge

RMX

05 10

Facebook Beacon

…then shuts it down

The Industry Icons

Why BT Exists: Advertiser POV

Proxies are expensive

Exhibit A: 67% of iVillage.com visitors are Women *

* Comscore August 2010

Why BT Exists: Publisher POV

A small amount of inventory generates the majority of revenue

$$

$$

$$$$ $

$$$

$$

$

$$$$

$$$

$$$ $$

$

$$ ergo…

A majority of inventory generates a small amount of revenue

Price

Volume

Direct Sales

Fill by ad networks

A typical publisher scenario

Price

Volume

Direct Sales

Fill by ad networks

New Revenue

Audience-based selling

A better scenario

Price

Volume

Direct Sales

Fill by ad networks

New Revenue

Audience-based selling

An even better

scenario

The New Supply Chain

Ad

Ad Net

Ad

Ad

The traditional ecosystem

Agency

Pub

Pub

Pub

Pub

Pub

The New Supply ChainDSP and Exchanges Dynamic

Ad

Ad

Ad

Ad

Ad Net

Ad

Data Co.s

The new ecosystem

AgencySSP

DSP

Exchange

Pub

Pub

Pub

Pub

Pub

The New Supply ChainDSP and Exchanges Dynamic

The future ecosystem?

Exchange

Agency PubAd

Ad server

DSP

Qua

ntTe

am

SalesTeam

Quant Team

Media Planners

Ad Net

DataCo.

Value Propositions

1. Brand Association

2. Contextual Relevance

3. Audience Targeting

4. Metric-driven Goal

5. Creative Execution

Every advertiser seeks any of these five categories:

User Data Types

1. Demographic

2. Psychographic

3. Shopping

4. Social

5. Search

6. Contextual / Semantic

7. Behavioral / Interest

and the Data Providers

Targeting ModelsModel Questions we want to Answer

PredictiveWhat can we predict about a user’s interactions?How can we predict a user’s behavior?How can we determine a user’s intent?

CorrelativeWhat else can we learn about a user’s behavior?What other behaviors can we infer from a user’s

known behaviors?

Interest What can users’ interactions tell us about their interests?

IAC’s Approach

IAC At A Glance

View content

View product information

View ad

Click on ad

Purchase something

Search for something

Attend an event

Provide information about themselves

Interest

Life-stage

Lifestyle

Intent

Behavior

Map these interactions…………………………………………………..…………to these attributes

Demography

Mapping our Data to Sellable Segments

Interest

Life-stage

Lifestyle

Intent

Behavior

Demography

Turn these attributes…………………………..…………….into targets

Active Travelers

Affluents


Package targets for advertisers

Active Travelers

Affluents


Personals

Run of

Media Inventory Options

Affluents

Parents

Movie Fans

Sports Fans

Active Shoppers

Targeted Media

Site-Specific Inventory

Large Reach Vehicles

Enter-tainment

House&

Home

Verticals

Lifestyle

Sold by dedicated sales teams. Only select

inventory available on non-guaranteed basis.

Leveraging IAC’s O&O data across all IAC

Properties

High volume content channels. Overlaying targeting is available.

Reaches all of IAC’s brands and users.

Audience Extension

Reaches IAC’s users anywhere on the Web

Declared Demographics

Interest

Behavior Shopping Patterns

Analyzing multiple dimensions of attributes to achieve the highest level of insight into audience profiles

Cube Targeting Methodology

If consumers are multi-dimensional, then our targeting should be too

Property Search Contextual Shopping Intent

Declared Demographic

Inferred Demographic

Declared Interests

Travel Intent

Data as the Glue Across Properties

Data FlowDemographic Data

Match.com

Browsing PatternsCitysearch

Shopping HistoryPronto.com

Site Data

Site Data

Ad server 1

Site Data

Ad server 2

Ad server 3

Ad server 4

Taxonomy Mapping and Data Fusion

Demographic DataMatch.com

Unified Database


Shopping HistoryPronto.com

Site Data

Site Data

Site Data

Data Flow

Taxonomy Mapping and Data Fusion

Demographic DataMatch.com

Unified Database

Ad EngineMakes delivery

decision

Targeted Ad


Ticket purchasesTicketmaster

Audience Cubes

Behavioral Logic and

Segmentation

Site Data

Site Data

Site Data

Data Flow

Tools

Ad server Segmentation Web Analytics Data Warehouse Audience Management Reporting / BIRT

What We’ve Learned

Opposing Forces We Have to Tackle

Declared vs. Observed

Reach vs. Accuracy

Standard vs. Custom

Context vs. Audience

Dedicated vs. Integrated

Incumbent vs. Newcomber

So. Many. Products.Head. Will. Explode…

The problem with

centralization

Pricing Strategy is Never Perfect at Launch

We started pricing near premium offerings

Adjusted prices after market feedback, observing volume

Questions Pubs should ask themselves

How diverse is our audience?

What is the size of the

opportunity?

Who do our clients want to

reach?

Can we operationalize

this?

What are we in short supply

of?

What technology do

we need?

How well do we know our

audience?

What is The Ad Ops Role in this New Era?

Weigh in on the StrategyEvery strategy requires a different operational plan

Audience-Selling Strategy

Data-import Strategy

Data-export Strategy

Optimization Strategy

Audience-based Selling Requires a Modified DNA

Cookie-matching

Cookie deletion

Recency

Frequency

Data modeling

User overlap

pixels

Remarketing Segment membership

Semantic

Social graphCookie pools

Look-alikes

An Operational Plan is Integral to a Go-to-Market Plan

Execution- Make sure trafficking workflow syncs with

systems’ integration- Standardization is important- Understand new limitations


Inventory Management- Inventory lags targeting- Assess overlap- Adjust and articulate the margin of error- Take command of both UV’s and Imps- Flexibility begets complexity


Productization- Level of targeting must align with sales strat- Determine impacts to order management- Make sure pricing fits with existing products

Be Prepared to Execute Several Models

1

2

3

O&O Media

O&O Data

O&O Data

O&O Data

Non-O&O

Media

Aggregating your own media and data assets to create a Publisher-owned ad network

Selling your data assets into closed and open marketplaces

Using your data assets, sell targeted media from anywhere on the Web

What’s Next…and beyond

Personalization

Opportunity for DSP’s

Amazon, eBay

User data

Ad data

Media data

The Social Graph

InfluencersConnectionsConversationsDegrees

Video and TV

Voice RecognitionUsing Closed CaptioningSemantic modelingSet-top box

Source TNS Infosys TV, Simulmedia

Privacy

Ad Notice and Ad Choices

Possible government interventionConsumers get smarter

Thank you, and don’t delete your cookies.

Ali C. MirianVP, Product and [email protected]

mailto:[email protected]

mailto:[email protected]

Audience Targeting

Technology

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