PLATFORM DATA - Merkle Data- General...• Real-time scoring models incorporate consumer segment data with in-session behaviors to predict optimal offer and content personalization

© 2014 Merkle Inc. | Confidential 1

PLATFORM DATA


The emerging opportunity in Addressability At Scale (AAS) is the key driver of competitive advantage in the age of the customer

AAS 1.0 Name & Address

AAS 4.0 Cookie & Device ID

1990 2014

AAS 3.0 Email Address

AAS 2.0 Phone #


Amidst all of this scale and automation, the addressability of channels and media is increasing every day

The Addressability Spectrum


Addressability is reaching new levels of sophistication and scale due to the rise of the Addressable Audience Platform


Throughout the next two days we will walk you through the 9 core competencies of the Platform Marketer organized in three key areas

Consumer Privacy

Audience Management

Identity Management

Media Optimization

Channel Optimization

Experience Design & Creation

Platforms Utilization

Measurement & Attribution

Marketing Technology

Platform Data

Platform Execution

Platform Enablers


In this morning’s session we will kick-off with Platform Data

Platform Data encompasses the competencies required to bring a comprehensive view of today’s highly digital, mobile, and social consumer in a way that is most useful for marketing purposes

Consumer Privacy

Audience Management

Identity Management

Platform Data

Platform Execution

Platform Enablers


247 billion e-mail messages are

sent each day

29.8 billion ads served by Google

each day

30 billion pieces of content shared on Facebook every day

400,000 bid requests per second

processed on the AppNexus ad platform

Merkle alone manages over 3.7 billion 1st party

customer records…

…Which amounts to over 3 petabytes of usable

marketing data growing at over 10TB/month…

…informing over $10 billion dollars in marketing

decisions per year for big marketers

Before I go on, what data are we talking about anyway?

Which translates to over 360 million search bid

decisions per year

And 96 billion real-time digital media bid decisions which result in over 10 billion

impressions served/year

…and 1.7 billion email targeting decisions per

year


Where’s all the data coming from and why is it proliferating so fast? Let’s start with social…


As well as mobility and multi-screen

Source: Milward Brown AdReaction, 2014. Note: Survey asked respondents ‘Roughly how long did you spend yesterday… watching television (not online) / using the internet on a laptop or PC / on a smartphone or tablet?’ Survey respondents were age 16-44 across 30 countries who owned or had access to a TV and a smartphone and/or tablet. The population of the 30 countried surveyed in the study colectively represent ~70% of the world population.

Source: Nielsen Connected Devices Report, Q3, 13. Note: Data gathered from USA general population sample 13+ years old with 9,448 respondents w ho own a tablet, e-reader, smartphone, or streaming capable device. Study conducted in 9/13

Source: Meeker, Mary. “Internet Trends 2014: Code Conference.” PowerPoint presentation. http://www.kpcb.com/internet-trends

0 100 200 300 400 500 600

Daily Distribution of Screen Minutes Across Countries (Minutes)

TV

Laptop & PC

Smartphone

Tablet

0% 20% 40% 60% 80%

49% 66%

24% 44%

29% 41%

27% 29%

29% 23%

12% 18%

7% 14%

9% 12%

10% 17%

Surfing the web

Shopping

Checking sports scores

Looking up info on actors, plot, athletes, etc.

Emailing / texting friends about program

Reading discussion about TV program on social media sites

Buying a product / service being advertised

Voting or sending comments to a live program

Watching certain TV program because of something read on social media

Smartphone

Tablet

What Connected Device Owners Are Doing While Watching TV, USA


And the consumer is getting more and more active/engaged

KPCB estimated based on publicly disclosed company data, 2014 YTD data per latest as of 5.14

Daily Number of Photos Uploaded & Shared on Select Platforms, 2005-2014 YTD

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014YTD

1,800

1,500

1,200

900

600

300

0

# of

pho

tos

uplo

aded

and

sha

red

per d

ay (M

M)

Flickr Snapchat Instagram Facebook WhatsApp (2013, 2014 only)

Pinterest

MyFitnessPal

IMGUR

EventBrite

Fitbit

Github



This is throwing off tons of content and data

2/3rds Of Digital Universe Content = Consumed / Created by Consumers… Video Watching, Social Media Usage, Image Sharing

15

12

9

6

3

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

>4ZB (+50% Y/Y)

13ZB (+40% Y/Y)

Zeta

byte

s (Z

B)

1 petabyte = 1MM gigabytes, 1 zetabyte = 1MM petabytes Source: IDC Digital Universe, data as of 5/14



Which gets advertisers excited and drives spend…


Programmatic media has already taken over 50% of transactions (35% of spend) in the US digital media market with RTB the fastest growing area

RTB

Non-RTB

Non-Programmatic

Source: Magna Global

Overall Digital Media Marketplace - $61B by 2017

$8B in RTB media by 2017 growing at 59% CAGR

$8B in “Custom Audience” by 2017

Over half of all digital media today is bought programmatically

76% 62%

47% 36%

27% 21% 17%

13% 18%

25% 29%

32% 32%

31%

11% 19% 28% 34% 41% 47% 52%

100%

80%

60%

40%

20%

0%

US: Programmatic Share (% of Digital media transactions)

2011 2012 2013 2014 2015 2016 2017

Especially where they can use data in places like “programmatic”


Which of course is starting to generate real incremental growth and profitability for the marketers most aggressively pursuing the opportunity

Auto insurer increased digital media performance in acquisition

Top 3 Credit Card Issuer optimized paid search spend in new card account acquisition

Consumer Electronics increased conversion and sales volume through its site and call center

• Anonymous media impressions with offline view of converted customers (segmentation, value, product) What data are

we using?

• Anonymous and identified user data including shopping cart and browsing with offline value segments

• Consumer credit segments are being connected to specific keyword combinations to drive targeting

• Developing “look alike” models on converted customers to be applied to anonymous prospects

How are we optimizing?

• Real-time scoring models incorporate consumer segment data with in-session behaviors to predict optimal offer and content personalization

• Predictive models are optimizing bidding on specific key words based on their correlation with specific segments

• Decreased CPA 68% while increasing conversions 80% Value

Generated

• 28% conversion rate improvement resulting in $200M annual revenue impact

• Incremental 7000 new card accounts or $50MM in LTV per month

DM &EM Site Product LTV Segment

Demographics Product LTV Segment

Demographics Search Product LTV Segment

Display Social


At the core of all of this opportunity is the Connected Consumer View

The 4C’s of Consumer Data • Comprehensive – brings together complete

view of the customer across all relationship dimensions and channels

• Clean – based the most accurate customer record that has been linked across disparate IDs, householded, hygiened, and matched on an ongoing basis

• Compliant – created, stored, and utilized based on a comprehensive view of the latest consumer privacy legislation and guidelines

• Connected – managed in highly usable audience segments and made available in real-time (where needed) to all media and channels for execution

Search

Social Print

DM &EM

Display

TV/Video

Mobile

Site

Product

LTV Segment

Demographics Life Events

Call center

Meetings


Sounds great right? Yeah well, there are a few little challenges

• Bringing together a singular consumer view in a world with data and identity silos too numerous to mention

• Making that view available to drive decisioning and execution across an incredibly complex web of adtech and audience platforms

• Allowing perfect to be the enemy of good is the tendency (especially in digital)

• Doing all of this in a way that maintains the confidence of the consumer and is compliant with numerous legal and regulatory entities

• And every time you think might have this nailed…it changes…fast


Identity Management

The management and association of identity attributes across all channels and media. The creation of a longitudinal view of the experience a consumer has with a brand (the consumer event stream).

Consumer Privacy

Audience Management

Identity Management

Platform Data

Platform Execution

Platform Enablers


The Identity Map creates a singular master ID out of numerous channel and media specific IDs across devices

Alias: MarketableDig

Handle: @MarketableTom

Name: Tom Malthus IP: 192.168.1.201

Address: 1001 Semblance Dr. Cookie: 49526F636B

DOB: 10.03.1965 Phone: 443.542.4000


The Consumer Event Stream pivots off the Identity Map to create the longitudinal view of all interactions with that individual

User ID Date Time Event ID Event Desc

1234 2/1/2012 DM437 DM Delivered

1234 2/2/2012 3:05 pm DI9076 Display Impression

1234 2/2/2012 3:06 pm CC068 Inbound Call Center

1234 2/2/2012 5:05 pm EM087 Sent Email

1234 2/2/2012 9:30 pm EM088 Opened Email

1234 2/2/2012 9:30 pm EM089 Clicked Email

1234 2/6/2012 9:00 pm PS674 Clicks Paid Search

1234 2/6/2012 9:15 pm Q8740 Completes Quote

Consumer Event Table

Event Meta Data

Event ID EM088

Creative A2346 Insurance you can count on

Offer OI92365 $14/Mth for $25K Coverage

Product P978 Term Life

DM Delivered 2/1/2012

Shown Display Ad 2/2/12 3:05pm

Calls 800# Requests Info and gives email 2/2/12 3:06 pm

Clicks Branded Paid Search Ad 2/6/12 9:00 pm

Sent Email 2/2/12 5:05pm Opens Email 2/2/12 9:30 pm

Completes quote request on site 2/6/212 9:15 pm


Probably obvious: this is a pretty big challenge

Messy cookies

Constantly evolving platforms and IDs

Third party cookies are dying

Matching reference bases are evolving

Multiple levels of IDs and identification confidence

And, needs to be real time


The very notion of the consumer ID has been transformed over the past 5 years

KLID, Abilitec

Cookie Mailing address Twitter ID

Cross Device ID FBID ADID IDFA cRID

AT&TID

70’s 80’s 90’s Today/Tomorrow

12 Main Street Philadelphia, PA

Email Phone number

00’s

617-555-0728

12 Main Street Philadelphia, PA 617-555-0728


[email protected]

617-555-0728


[email protected]

#JohnnyDoe

011001000100110001 //asdohs.hhd.net 617-555-0728


[email protected]

#JohnnyDoe

011001000100110001

//asdohs.hhd.net

[email protected]

Pinterest: jdoe

JD’s iphone

011001000100110001

011001000100110001

//asdohsd.asiudhscns/html

And some of the very audience platforms that are delivering AAS are, in fact, going to be a part of this challenge

Audience Platform

already at scale on network

Soon we will see audience extension off network at

massive scale Third Party Inventory

(exchange, ad network, etc.)

But access to this scale will be enabled in “walled gardens” where each player will want advertisers to use a proprietary ID – great within one network…but what about the advertiser’s single

view of the customer?

Facebook ID AdID Twitter ID

Marketer 1st Party ID

Numerous disparate 3rd

party IDs


The change in consumer behaviors and consumption has forced a change in the notion of Identity Management

Time spent in mobile apps surpassed time spent on desktop in January 2014

Cross device is the norm with the average

American owning 4 devices

Source: Comscore & eMarketer

Hey what do you say we open some wine and

talk mobile DSPs

I wonder if dumping her on

facebook is considered

passe

The Platform Marketer at home


Ultimately what we need to stitch together is an “identity graph” at the first party level across physical and digital IDs spanning multiple devices

Device Identity

Digital Identity

Terrestrial Identity


All of this enabled by a purpose built Identity Management Engine

Onboarding

Finds CRM audiences in the digital world

Consumer Data Integration

Terrestrial Identity

Associations

Identify Governance

Reference Base

Digital Data Integration

Device/Digital Identity

Associations

Identify Governance

Reference Base

Cross Device

Device graphs to associate cross-device events

Device Identification

Probabilistic device identification engine to recognize

device reoccurrence

Deterministic identity rules engine to manage identity

associations


Which sits at the base of an integrated marketing technology stack

Audience Platforms

Wor

kflo

w

Channel Execution Media Execution

Marketing Database

Identity Management

Analytics

Integration

DMP Decision Management

DSP Search Ad Serving Site SFA/Contact Center

Business Rules Engine Personalization Engine Decisioning

Algorithms

Audience Management

RT Data Transfer Syndication

Connected Attribution Forecasting/Simulati

on Business Intelligence

Onboarding CDI/DDI Event Management

Customer 360° Preference Center Event Stream

Cam

paig

n M

anag

emen

t C

onte

nt

Man

agem

ent

MR

M

Messaging Mobile

Web Services APIs Tag

Management

Wor

kflo

w

Channel Execution Media Execution

Marketing Database

Identity Management

Analytics

Integration

DMP Decision Management

Audience Platforms

DSP Search Ad Serving Site SFA/Contact Center

Business Rules Engine

Personalization Engine

Decisioning Algorithms

Audience Management

Real-Time Data Transfer

Syndication

Connected Attribution

Forecasting/Simulation

Business Intelligence

Onboarding CDI/DDI Event Management

Customer 360° Preference Center Event Stream

Cam

paig

n M

anag

emen

t C

onte

nt M

anag

emen

t M

RM

Messaging Mobile

Web Services APIs Tag Management


Audience Management

Audience management is the discipline of identifying, sizing, and tracking individual engagement with the purpose of driving higher customer value

Consumer Privacy

Audience Management

Identity Management

Platform Data

Platform Execution

Platform Enablers


Audience Management is the bridge between identity management and media and channel optimization

Personalization

Device

Offer

Treatment

Message,

Product

Time

Contact Strategy

Behavioral Triggers

Models Segmentation

Identity Management

Audience Management

Media or Channel Optimization


Movers & Shakers

Family Matters

Mature Planners Passives Loners

Very Rich Actionable Primary Research • View of US • Attitudes, Behaviors,

Psychographics • Brand Relationships, and Sentiment

Mapping • Tie to each individuals in US • Demographics • Customer Behaviors • Syndicated Data

% Makeup of United States

34% (50% interested in LI)





Demographics Younger Upper-mid income

Skews male

Young, middle age Mid income

Mostly female

Mature Upper income Skews male

Middle age Mid income

Mostly female

Mature Lower-mid income Male and female

Attitudes • Early adopters, technical

• Driven, risk taker

• Price sensitive

• Use social media, but not otherwise technical

• Don’t know where to begin

• Price sensitive

• Recognize value of insurance

• Confident about financial matters

• Least price sensitive

• Late adopters

• Risk averse

• Not primary decision makers

• Not thinking about LI

• Use social media

• Mistrustful of financial institutions

• Least interest in LI

Audience management begins with a rich, actionable enterprise level segmentation of the prospect and customer marketplace


However, the divide between segmentation, segment strategies, and actual decision making and execution has to be closed down

Media Execution (SEM, DSP, etc)

Content Management

Call Center

Segmentation & Customer Strategy

Financial Management

Marketing Execution

Behavioral Segment

Value Segment

Attribution

Budgeting/ Planning


The Platform Marketer leverages the capabilities in the DMP to monetize audiences in digital media and experience personalization

DMP Toolset

Data Inputs Outputs/Action

Visualization

Audience Mgmt

Syndication

1st Party PII

1st Party Anonymous

3rd Party

• Conversion events • Behavioral data • IP data • CRM data (offline & online)

• Search data • Mobile data • Email data • Connected and addressable TV data

• Demographic, behavioral and purchase offline & online data from data vendors (BlueKai, Execelate, etc.)

Reporting and Insights

Media Optimization

Syndication

• Media & site performance • Audience insights

• Real-time bidding • Creative decisioning • Landing page optimization

• Syndicate audiences to DSPs and Site Personalization


Consumer Privacy

Audience Management

Identity Management

Platform Data

Platform Execution

Platform Enablers

Consumer Privacy and Compliance

Consumer Privacy: Finding balance between business needs and privacy expectations


All of this data creates a lot of opportunity for brands but obviously also creates angst both real and perceived

59% saying that concern has

risen in the last 12 months 48% avoiding at least one type of online service/platform

Consumer Data 64%

express concern about websites tracking their

behavior

87% Believe adequate safeguards are

not in place to protect their personal information

70% respondents believe businesses aren’t transparent about how their information is used, 68% say there is not enough

transparency around what is being done with their information


The Platform Marketer is able to navigate the complex, evolving web of internet advertising guidelines and regulatory compliance as well as consumer perception

Consumer Financial Protection Bureau

State Privacy

Policy Laws

CAN- SPAM

COPPA

GLB

FCRA

Federal Trade Commission


So in summary…

• Platform data is about the 4Cs (comprehensive, clean, compliant, connected)

• Perfect is the enemy of good

• ID management sets you up for Audience Management and execution

• Privacy is an exercise in an integrated view of industry, guidelines, and consumer expectations

• Be ready for this to keep changing faster than you can keep up…


Platform Data Breakout Sessions

Identity Management – Miramar II/III

Craig Shirk, Matt Mobley

Audience Management – Ballroom

Rick Heffernan, Peter Vandre

Consumer Privacy & Compliance – Miramar I

Bennie Smith


Thank You!

Documents

PLATFORM DATA - Merkle Data- General...• Real-time scoring models incorporate consumer segment data with in-session behaviors to predict optimal offer and content personalization