From Information to Audiences:The Emerging Marketing Data Use CasesJonathan MarguliesManaging Director
March 1, 2012
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From Information to Audiences
What inspired the research?
What role is data playing in digital advertising today?
How should we be thinking about our “data strategy” for the future?
Our Agenda
H. Catalogus (0-~1980 A.D.)
Name:Address:
In the Beginning, There Were Subscriber Files…
… Which Begat Demographic “Selects,” Data Cards and the First True Commercial Data Models…
NAME ADDRESS
GENDER
INCOME
PHONE
AGE
H. Catalogus (-~1980 A.D.)
H. Mailinglistus
(~1980s)
… Which Begat Modeling, Cluster Segmentation, Cooperative Databases and—With the Arrival of the Internet—E-mail Data…
H. Catalogus (-~1980 A.D.)
H. Mailinglistus
(~1980s)
… Which, In Concert with the Growth of “CRM,” Gave Rise to Sophisticated Database Management, CDI and MDM Infrastructures…
H. Analyticus (~1990-2000s)
“Customer File”: Contact Info, CRM, Demographics
“Prospect File”: Demographics, Credit Scores
Transactional / Loyalty Records
Public Records
Self-Reported “Intent” Data
Persistent Identifiers
Interactions Logs
“Single Source of the Truth”
Mr. John Q. CustomerOne Response Rate WayBoston, MA 01234
But “Evolution” Isn’t Always Painless; The Emergence of Digital Channels Has Brought With It a Deluge of New Data Sources
Direct Mail
Call Centers
Catalogs
Retail Transactions
Print Publications
Broadcast Outlets
Geo-Demographic compiled from
publishers, databases and
other third parties
Geo-Demographic compiled from
publishers, databases and
other third parties
Online Data Types:• Registrations• Cookies (Flash) /
browsing activities• Social networks• Online purchase data• In-market purchase
intent
Online Data Types:• Registrations• Cookies (Flash) /
browsing activities• Social networks• Online purchase data• In-market purchase
intent
Artwork Source: David Harbaugh, Harvard Business Review
Psychographic and behavioral compiled from surveys,
analytical models
Psychographic and behavioral compiled from surveys,
analytical modelsSocial compiled from
social sites, blogs, sharing sites,
Social compiled from social sites, blogs,
sharing sites,
Publishers
Offline Compilers
Transactional added from purchase records, cooperative
databases
Transactional added from purchase records, cooperative
databases
Social Sites / Online
Providers
Portals / Online
Compilers
Offline Providers
?
And Those Various Channels Generate—and Rely Upon—a Range of Information Types
… And So “Traditional” Database Infrastructures Are Being Asked to Support Vast New Streams of Unstructured Information
“Customer File”: Contact Info and Demographics
“Prospect File”: CRM Demographics, Credit Scores
Transactional / Loyalty Records
Public Records
Self-Reported “Intent” Data
H. Digitalus(~2009-Today)
Behavioral (Clickstream)
Intent (Opt-In/Registered and Inferred)
Web Analytics (Geo-/ Technographic) ?
But The Integration of “Traditional” and “Digital” Data Poses a Set of Unique Challenges, Owing To Discrepancies Between…
Known Names/Addresses…
… and Anonymous IP Addresses
Mr. John Q. Customer
One Response Rate Way
Boston, MA 01234
“Batch” Processing…
… and Real-Time Deployment
Campaign-Driven Execution…
… and Continuous Targeting
Single-Channel Focus…
… and Integrated Marketing
Today, The “Use Cases” for Marketing Data Differ Substantially Across Addressable Media
From Information to Audiences
What inspired the research?
What role is data playing in digital advertising today?
How should we be thinking about our “data strategy” for the future?
Our Agenda
Our Panel: Senior Thought Leaders Across the Data Ecosystem
N=176Source: Winterberry Group survey
“Which Best Describes Your Job Role / Function?”
“To What Extent Are the Following Use Cases Focal Points of Your CURRENT Data-Driven Marketing Activity?”
Source: Winterberry Group surveyNot a focus of our
current data utilizationA significant focus of
our current data utilization
“To What Extent Do You Believe The Following Use Cases Will Be Focal Points of Your FUTURE Data-Driven Marketing Activity?”
Source: Winterberry Group surveyNot likely to be a focus
of our future data utilization
Likely to be a significant focus of our future data
utilization
Use Case: Audience Optimization
Identifying customers and likely prospects through the integration of rich (though disparate) data sources; managing cross-channel marketing execution with the goal of engaging those audiences strategically—and in accordance with consumers’ preferred advertising media.
Fundamental Advertising Benefit
Effectiveness: Identifying customers and likely prospects through the integration of first- and third-party data sources
Maturity Level Low: Despite technology advances, uncertainty around the optimal approach to structured integration of data
Core Beneficiaries
E-commerce Marketers, Digital Advertisers, Lead Generation Portals, Publishers (for traffic acquisition)
Long-Term Potential
High: The ability to define high-potential audiences and facilitate multichannel communication represents a fundamentally new way of marketing
Use Case: Channel Optimization
Enabling “right message, at the right time, via the right media” targeting; expanding the role of consumers in choosing optimal/preferred communications media.
Fundamental Advertising Benefit
Effectiveness/ Efficiency: Enabling “right message, at the right time, via the right media” targeting; expanding the role of consumers in choosing optimal/preferred communications media
Maturity Level Low: Traditional marketing efforts are channel-specific; “channel agnostic” internal alignment that most marketers have not yet undertaken
Core Beneficiaries
E-commerce Marketers, Digital Advertisers, Lead Generation Portals, Publishers (for traffic acquisition)
Long-Term Potential
High: Media-agnostic communication strategies will enhance consumer engagement (through dialogue and purchase behavior)
Use Case: Advertising Yield Optimization
Maximizing the value of available advertising inventory by identifying and “selling” high-value audiences across individual publisher properties and delivery media.
Fundamental Advertising Benefit
Efficiency: Maximizing the value of available advertising inventory by identifying and “selling” high-value audiences across individual publisher properties and delivery media
Maturity Level Low: Though technological advances are rapidly allowing audiences to be “sold” across distinct online media platforms, the use case demands true cross-channel yield optimization
Core Beneficiaries
Publishers
Long-Term Potential
High: For a publisher community struggling to effectively monetize content, the identification and optimization of audience-centric inventory has the potential to deliver substantial revenue opportunities
Use Case: Targeted Media Buying
Enabling the economical, value-oriented purchase of advertising media; delivering targeted messages to audiences across a diverse, actionable range of channels.
Fundamental Advertising Benefit
Efficiency/Effectiveness: Enabling the economical, value-oriented purchase of advertising media; delivering targeted messages to audiences across a diverse, actionable range of channels
Maturity Level Intermediate: “Real-time bidding” (RTB) tools have matured substantially over the past few years, and are in common use by enterprise marketers across verticals
Core Beneficiaries
Marketers (via Demand-Side Platforms), Digital Agencies/Trading Desks
Long-Term Potential
High: Meaningful media-buying efficiencies are already accruing to sophisticated users; coordinated use of these applications and the targeted messaging/offer tools will deepen value
“To What Extent is Your Company (Or Your Clients) Realizing Value From the Following Data Sources?“
Source: Winterberry Group surveyWe (or our clients) are realizing no value from
these data sources
We (or our clients) are realizing significant from
these data sources
“To What Extent Do You Believe Each of the Following Are Driving Deeper Interest/Investment in Marketing Data?”
Source: Winterberry Group surveyNot a focus of our
current data utilizationA significant focus of
our current data utilization
“To What Extent Do You See the Following Attributes Driving the Underlying Usefulness of a Marketing Dataset?”
Source: Winterberry Group survey
Not at all important in driving the value of a
data set
Critically important in driving the value
of a data set
“To What Extent Do You Believe Each of the Following Are Inhibiting Interest/Investment in Marketing Data?”
Source: Winterberry Group surveyNot inhibiting interest /
investment in marketing data
Substantially inhibiting interest / investment in
marketing data
From Information to Audiences
What inspired the research?
What role is data playing in digital advertising today?
How should we be thinking about our “data strategy” for the future?
Our Agenda
Holistic Marketing Process Management
Effe
ctiv
e Pe
ople
M
anag
emen
t
The Complexity of Today’s Advertising and Marketing Programs Has Driven Many to Re-Examine their Internal Operating Silos
Brand Mktg.Direct Mktg.Digital
Mktg.SalesLoBs
ITInt’lFin.
What’s at stake?• Data• Strategic Resources/Authority• Creative Assets• Investment Capital• Knowledge/Expertise
Holistic Marketing Process Management
Effe
ctiv
e Pe
ople
M
anag
emen
t
Requirement: Improved Operating Structures
Efficient, EffectiveAd./Mktg. Execution
ProcessDesign
PeopleMgmt.
TechnologyDeploy.
StrategicUtilization
of theSupplyChain
Requirement: Rules-Driven Integration of Disparate Data Sets
First-Party Third-PartyAnonymization
Aggregation
Requirement: A Strong Network of Data-Centric Technology and Service Partners
Asset Management
Scheduling/Routing
Creative Optimization
Data Processing
Ad Operations
Business Rules Mgmt.
Web Analytics
Real-Time Media Buying
Budgeting
Yield Management
Distributed Mktg. Mgmt.
Creative Production
Ad Serving
Ad Verification
Campaign Management
Requirement: Marketing Data Governance
PII vs. Non-PII External & Self-Regulation
Transparency Marketing Use Guidelines
3.3
3.4
3.5
3.6
3.7
3.7
3.7
3.9
3.9
3.9
3.9
4.1
1 2 3 4 5
Clarifying regulatory barriers to data utilization
Storing / warehousing data more efficiently
Reducing latency / processing data more rapidly
Simplifying the processes by which third-party …
Extracting greater value from the use of data …
Linking data inputs (and the appropriate rules …
Improving data hygiene and quality assurance
Improving automation abilities
Identifying dedicated data staff and building …
Improving access to granular audience …
Integrating across different data collection …
Improving attribution across channels
“To What Extent Do the Following Reflect Your Long-Term (2013 and Beyond) Priorities for Improving the Usefulness of Marketing Data?”
Source: Winterberry Group surveyNot a priority for us
(or our clients) in the long term
Very important priority for us (or our clients) in the
long term
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Jonathan MarguliesManaging [email protected](212) 842-6031
www.winterberrygroup.com/ourinsightswww.iab.net/marketingdatause