Www.did-it.com 1-800-601-4181 Confidential & Sensitive 1 Does Demographic Targeting Matter? Kevin...

www.did-it.com 1-800-601-4181 Confidential & Sensitive

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Does Demographic Targeting Matter?

Kevin Lee Executive Chairman

Did-it Search Marketing


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Why Demographic Targeting Matters

Better targeting brings us closer to the holy grail of advertising:

• Marketers get to put more of their budgets towards their best prospects/customers

• Searchers (surfers/viewers) only see the ads that the marketers really want seen, the relevant ones

• Publishers get a higher yield on their search and impression inventory


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What’s in your media plan?

Do you buy offline media, other online?

What is the target market specified in your offline media plan? Where did you get your demographic customer profile.

Age

Gender

Geography

Income

Lifestyle


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Demos in your customer file?

Can you determine demographics based on your customer file?

Age (who walks through the door?)

Gender

(who walks through the door?)

(name analysis)

Geography (zip codes)


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Collecting Demos on Conversion

Can you ask demographic questions during the online sales or lead gen process?

It’s never to late to start learning more about your customers.

Create a data repository internally or with a third party.

Collect demographics not only to analyze for customers vs non-customers, but also to distinguish your BEST CUSTOMERS.


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The key is the Power Segment

YES, demographics matter if you have a Power Segment.

Power Segments increased profits and revenue though the use of targeting is the identification and exploitation of segmentation. Identify your…

Power Segments!


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Demographic Segmentation to up Profits

Demographic Segmentation:

Which demographic profiles correlate with increased profit driven at any point in the click to sale process?

• Better conversion from click to lead/sale

• Higher immediate value

• Better lifetime value of the customer


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Demographics with high conversions:

It’s a lot of trafficking work to re-structure campaigns to market differently to segments. Why bother?

Better conversion from click to lead/sale

For example if the conversion of non-identified (mixed traffic) is 1.5% and the conversion rate of men aged 26-35 is 2.1% then you can afford to bid over than 25% more.

Higher bids may get you additional volume.


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Demographics with larger sales:

Higher Immediate Revenue or Profit:

Does one segment order more expensive items or larger quantities?

If Women aged 18-25 have a shopping cart with $178 vs $122 for the average shopping cart, you can afford to bid more for the power-segment.



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Profitable Demographic Segments:

Higher Lifetime Value:

Does one segment order more over time or stay with your company longer creating annuity revenue?

What’s your 90-10 rule?

If Women aged 18-25 have order your hair care product every three months for 4 years, you can afford to bid more for this power-segment.



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Geographic Segmentation

Geographic segmentation may be the most powerful method of segmentation you have:

1) Clicks are worth different amounts

2) Clicks from different regions of the country or world have differnet needs and preferences (think ad creative and landing pages)

Why manage only on a national basis when you can segment?


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Geographic Segmentation

Geographic segmentation may be the most powerful method of segmentation you have:

1) Clicks are worth different amounts

2) Clicks from different regions of the country or world have different needs and preferences (think ad creative and landing pages)

Why manage only on a national basis when you can segment?


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Case Study #1 Car Buyers

Not everyone looking for car info is a good car buyer. Can’t be #1 on every term all the time?

1) Did-it and major car lead-gen site team use age, gender and geography based on feedback from their customers, the car dealerships

2) Cherry-Pick the good clicks. Leave the bad clicks to the competition.


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Case Study #2 B-toB Marketer

B-to-B has its own challenges, particularly when you are selling in bulk what might also be looked for (searched on) by a consumer.

1) Knowing more about the existing customer-based helped MSC Industrial Supply and Did-it tune campaigns to eliminate more wasted clicks and focus on the clicks that convert.


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How To Target By Demographics MSN:

MSN adds increased targeting options by allowing you to raise your bid (bid boost) by demographics:

• Age (five age ranges)

• Gender (M/F)

• Geography (DMA)

Plus Day-Parting and Daily Scheduling. The additional targeting might be EXTREMELY applicable to your business.


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How To Target By Behaviors Google, Yahoo, MSN:

One way to target based on behavior is though the control you have over listings allowing you to:

• Use Dayparting (Time of Day)

• Day of Week

MSN includes dayparting and day of week selections in AdCenter. Dayparting in Google and Yahoo require the use of third party technology.


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Dayparting Conversion Behaviors:Major differences in conversion.


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PPC Auctions, Two Types at the TOP:

There are only two kinds of marketers at the top of the PPC search results:

• Brilliant Marketers: managing to ROI or buying scale intelligently, often though segmentation.

• Total Lunatics emotional bidders no data

What does it really mean to be at the top? At the top for which searchers, when, where?

Use the Power Segments to drive business


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Use Segmentation and Targeting

Targeting strategies and the Power Segments allow you to buy the clicks with the highest profit potential:

• Reduce waste

• Target the best customers

• Increase profit

• Improve your messages and offers

• Be more aggressive when it matters

Questions? Copies of PPT? Kevin Lee Executive Chairman of Did-it.com. [email protected]

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