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The Power of Relevance Behavioural Targeting & Smart Ads Cadi Jones Sales Development Manager, Belgium, Yahoo! EMEA

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Evolution of Targeting on the Internet Reality for years Lots of data, lots of targeting products, often without good results. Today Getting very close to one-to- one marketing (e.g. BT and Smart Ads). Great! Early days We have so much data we can easily tailor every ad. One-to-one marketing nirvana

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Advertisers spend more and more on Audience Targeting as capabilities and data has improved. Audience Targeting Primary Online Targeting Methods Contextual Targeting Brokerage ad in FinanceMums A Fundamental Shift

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4 Data for Ad Targeting Demographic Psychographic Behavioral Target Audience Advertiser Data Contextual Search Data Geographic Target Audience

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Repurposed and rephrased Winston Churchill quote on democracy Tom Kelly | COO,Safecount, eMarketer interview, Jan2010 David Hallerman | Senior Analyst, eMarketer Targeting and Data The main unit of currency for online advertising is data. Whatever kind of targeting geographic, demographic, behavioural - its all smart, its all personal, and its all relevant. Theres no downside to any type of targeting, unless it doesnt work. Whatever kind of targeting geographic, demographic, behavioural - its all smart, its all personal, and its all relevant. Theres no downside to any type of targeting, unless it doesnt work. Online Targeting is the worst form of targeting with the exception of all others.

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Science | Audience targeting Our online audience 639,715,000 and women 299,395,000 and over 45 89,292,000 and divorced/separated 21,026,140 and dog owners 6,895,735 and buy pet supplies at discount stores 2,304,116 Our online audience 639,715,000 and men 340,320,000 and ages 35-54 129,519,000 and professional / technical occupation 44,647,714 and mobile professionals 3,923,776 and like romantic comedy movies 638,112 and drive motorcycles 82,053 Find almost any audience youre looking for.

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Yahoo! Behavioural Targeting The ability to account for the intensity and recency of the users activity We can look at more than just past behaviors What youre doing right now is a stronger indicator of real interest How often and how recently you searched, clicked or viewed Purchase cycles are noted to develop these timelines = Page viewsSearch Search Clicks Ad Views & Clicks Behavioural Targeting ++ + Behavioural Targeting allows you to target your ads to consumers whose recent behaviours online indicate that your product category is relevant to them Data Inputs

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8 Behavioral Targeting Different products, different buying cycles. Why It Works: Sophisticated Modeling Buying flowers is different from buying a car, right? The purchase decisions of millions of people enable Behavioral Targeting to understand differences among products and their purchase cycles and thus treat every product category appropriately. Purchase Life Cycles Factored In

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9 Behavioral Targeting What you did (and when) reveals purchase readiness. Why It Works: Sophisticated Modeling While past behaviors factor into long term purchasing plans, what youre doing right now is likely a stronger indicator of real interest. So activities are noted for timeliness, with recent activities carrying more weight. Heavier Weight to Recent Behaviors

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Retargeting Reach consumers not once, but many times, sequentially throughout the campaign. Benefits -Move consumers effectively through the branding and sales cycle by messaging to them sequentially. -Improve overall ROI Why Yahoo! -Extensive reach -Most user interactions on the web let you hit your effective frequency -Trust of our users with Yahoo! means your message is associated with a leader Site retargeting Creative or Clicker retargeting

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11 Site Retargeting Benefits 1.Campaign leverages advertisers carefully crafted site segmentation 2.Order of magnitude higher conversion rates 1.User visits an advertisers site. 2.Tracking pixel on website deposits cookie on computer. 3.Y! reads cookie each time user visits a site on Y! network and can serve targeted ad. Targeting prospects who visited an advertisers site

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12 Creative Retargeting Benefits 1.Extend frequency to optimize share of voice 2.Manage sequential messaging 1.Consumer visit Yahoo! page with an ad.. 2.Tracking in ad creative deposits cookie on consumers computer. 3.Y! reads cookie each time consumer visits a site on Y! network and can serve targeted ad. Targeting based on ad creative

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13 Clicker Retargeting Targeting based on ad clicks Consumer clicks on ad. Tracking in click thru URL deposits cookie on users computer. Y! reads cookie each time consumer visits a site on Y! network and can serve targeted ad. Benefits 1.Dramatically higher click thru rates 2.Higher conversion rates

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CTAs and Offers Images Products Messages Right Audience Right Messages Right Products Right Drivers Smart Ads - Personalized Advertising

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16 Made from one ad template and a dynamic data feed. 272,448 ad combinations! Smart Ads | Dynamic Ad Generation

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Turn Your Site Visitors Into Customers Even with very targeted audiences, most users who visit sites do not purchase or convert immediately Personalized Retargeting reduces inefficiencies in the path from exposure to conversion by re- engaging site abandoners with personalized creative to drive them toward conversion Copyright 2010 Yahoo! Inc. All Rights Reserved.

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Yahoo! Case Study: Travel Clients In 2011, travel clients implemented Personalized Retargeting to improve conversion and CTR rates.

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