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1. Introductions: Behavioral Targeting and it’s role in online media
2. How to measure and value Behavioral Targeting.
3. WSJ/American Airlines Case Study Campaign Results
…composition
…effectiveness (awareness)
…cost efficiency
4. How Behavioral Targeting will evolve
What is Behavioral Targeting
Behaviors provide the clearest window into people’s desires and interests
People qualify themselves for marketers by their own actions
Example: repeatedly reading about mortgages or clicking on a
loan calculator
Typically, online advertisers broadcast to a place or wait for
prospects through search…
…Instead, Behavioral Targeting allows advertisers to deliver their message to audiences who have
demonstrated interest
The result is that targeting becomes more efficient
Bottom Line: A lower cost per target for advertisers that is
triggered by audience behavior
Revenue Science – Leaders in Behavioral Targeting
WEB PUBLISHERS SAMPLE AUDIENCE SEGMENTS ADVERTISERS
• Car Buffs
• Health Nuts
• Travel Seekers
• Mutual Fund Aficionados
• The Leisure-Minded
• Engaged Investors
• Frequent Travelers
• Affluent Users
• Gamers
• Hardcore Sports Fans
• SUV Shopper
• End of Year Rebates
• Hooked on Convertibles
How does Behavioral Targeting work?
What people say
Registration
Search
What people do
Website
Categories and Pages
Words
How often they do it
Frequency
Recency
Visitors Navigate Visitors Are Assigned To
Publisher created segments Segments
On Future Visits, Targeted Ads Are Served
To Segment Members Regardless of Where They Go On The Site (Instead Of House or
ROS)
How to Measure Behavioral Targeting:Audience Composition
True metric of reaching the right audience
Measures core value proposition of targeting
Audience Composition: # Qualified / # Total
Widely used in print media
How does a leading airline make campaign allocation decisions for advertising in the print world?
5+ Domestic air trips (yr)
WSJ Business Week
Aud (000) 1730 552
Composition 20 16.3
Coverage 32 10.3
Index 178 146
Case Study
Collaboration between WSJ.com, Revenue Science, Global Airline Carrier and its Advertising Agency
Conducted audience composition and advertising effectiveness study using Dynamic Logic tools
Used Test/Control methodology
1. Brand Metrics: Control Unexposed, Test IBT Exposed
2. Brand Metrics: Control Unexposed, Test RON Exposed
3. Audience Composition: Control RON, Test IBT
Behavioral Targeting Delivers Significant Lift in Effectiveness for Branding Campaigns
Higher Composition across the board (115% to 145% lift)
Better targeting can deliver higher compositions than naïve targeting
BT gives you brand lift over RON (on 5/6 metrics)
In target brand lift is higher on 6/6 metrics When you get the right
people, they remember the message more.
The BT campaigns are more cost effective than RON even if you don’t count the brand lift!
26%
56%
0%
20%
40%
60%
80%
RON and Comp. IBT Audience Comp.
Result = 115% lift inaudience
comp.
Business Travelers 1+ Business
Trips Per Year
Behavioral Targeting Delivers Significant Lift in Effectiveness for Branding Campaigns
Higher Composition across the board (115% to 145% lift)
Better targeting can deliver higher compositions than naïve targeting
BT gives you brand lift over RON (on 5/6 metrics)
In target brand lift is higher on 6/6 metrics When you get the right
people, they remember the message more.
The BT campaigns are more cost effective than RON even if you don’t count the brand lift!
13%
31%
0%
10%
20%
30%
40%
RON and Comp. IBT Audience Comp.
Result = 145% lift inaudience
comp.
Business Travelers 5+ Business
Trips Per Year
*Statistically significant difference between Control and Exposed group at a 90% confidence level Lift = (Exposed-Control)/ControlPlease Note: Lift percentages are calculated from the actual Control and Exposed group scores, while the above presented scores are rounded, if attempting lift calculation using the scores above there will be differences from the actual lift due to rounding
American Airlines Campaign Results – Right Message Target Audience
• Message Association for the targeted business travelers experienced statistically significant lifts for all three messages.
• The following table compares the results for the Qualified Business Travelers• Total Respondents: RON = 820; IBT = 373• Qualified Respondents: RON = 216; IBT = 210
RON IBT Difference Lift
*Message Association – upgrade first class
1% 3% +2 314%
*Message Association – frequent flyer program
3% 10% +7 218%
*Message Association – 3,900 daily flights
6% 14% +8 100%
Sample Size 820 373
Economic Case
CPT (cost per thousand targets): CPM/Composition
ROS CPT: CPM: $35/0.263 = $133
Behavioral Targeting CPT: $60/0.563 = $106
RON is 25% more expensive than Behavioral Targeting
Where is Behavioral Targeting Going
A major piece of the online mix
Standards for finding and comparing audiences
Network Buys and better privacy protection
Advertiser contribution to behavior