eMarketer Webinar: Data Management Platforms—Using Big Data to Power Marketing Performance

©2013 eMarketer Inc.

Lauren T. Fisher

Analyst

O C T O B E R 2 4, 2 0 1 3

Data Management Platforms—Using Big Data to Power Marketing Performance

Sponsored by:


What’s in store:

� Data: a challenge and a solution

� Defining Big Data and Data Management Platform (DMP)

� DMP’s role in the ad technology ecosystem

� How DMPs are being used for audience targeting?

� How are DMPs being used for cross-channel and cross-platform attribution?

Twitter – #eMwebinar


The majority of US marketers recognize the value of data

A February 2012 survey from Columbia Business School and the New York American Marketing Association (NYAMA) found 91% of US marketers surveyed believed successful brands used data to drive marketing decisions.


But only a minority of US companies actually capture customer data, and less than half of those are able to capitalize on its use


This problem is only getting worse, as both online and offline data generation show no signs of slowing down


And it’s spurring an interest in Big Data

©2013 eMarketer Inc.Twitter – #eMwebinar

What is Big Data?

Email/

ESP

Analytics

Display/

DSP/ATD

Purchase/

In-store

Search

Mobile

Loyalty

CRM

Social

Offline

Media3rd-

Party

Reg/

Login

Site

Big

Data


� If data is the currency of digital marketing, then the DMP is the bank.

� A DMP is where Big Data is:

� stored

� standardized

� optimized


What is a Data Management Platform (DMP)?


DMPs play a central role in the digital advertising ecosystem










In other words …

“The DMP is really a central nervous

system that allows you to compile all of

these data sources and turn them into

meaningful sets of audience

segments that you can use for

multiple purposes.”

—Tim Waddell, director of product marketing for Adobe AudienceManager


CRM:

� Houses:

� Customer information

� Purchase history

� Campaign details

� Client status/lead score

� Select third-party data

� Analyzing and acting on data usually requires additional tools


That sounds a lot like a Customer Relationship Management (CRM) system …

DMP:

� Houses:

� CRM data

� Analytics

� Third-party data

� Second-party data

� Processes and analyzes data to identify key audience segments and/or campaign effects

� Alignment with digital marketing platforms such as marketing automation, ESP, ad servers, content management system, ad verification tools and digital marketing channels gives full range of actionability


DMPs offer more than audience insights

“Eighteen months ago, a DMP was just a big box sucking in data. Now, you have two branches:

There are data marketing platforms, which allow us to activate all of that data for targeting and more efficient ad delivery.

And then there’s the data analytics side, which allows us to use the data to better inform online and offline marketing

decisions.”

—Mark Zagorski, CEO of eXelate


� Radar Research (Nov. 2012): 40% of marketers worldwide

� Winterberry Group & IAB (Sept. 2012): 62% of marketing professionals* in North America

� *66% marketing tech/service providers

� *23% publishers

� *10% marketers


Marketers are investing in DMPs


Not surprisingly, marketers look to DMPs for audience targeting and improved attribution and analytics


Using a DMP for

Audience Targeting


The majority of US display advertisers use some form of audience targeting


Most rely on first- and third-party data, though not necessarily in concert


Publishers, too, are seeking out DMPs for greater audience insight

“The old way of responding to RFPs was to do a syndicated research run via comScore or any other service that shows a general audience composition and projected potential reach of that audience on a site. Advertisers don’t want that anymore. They want to know exactly who you have on your site.”

—Mark Howard, chief revenue officer for Forbes


DMPs integrate more than just first- and third-party data


� Holistic view of individuals

� Audience segmentation

� More precise audience targeting


Audience intelligence gained from a DMP provides:


DMPs in practice: Forbes delivers distinct audience segments

Results:

� Identify exact audience composition for individual site segments

� More customized audiences

� Identify new audience segments

Actions:

� Divided site into distinct segments

� Layered in first- and third-party data


DMPs in practice: Combining multiple CRMs for a unified customer view

Integrated into DMP:

� CRMs for each service division

� Third-party data

� Marketing platforms, channels and content management system

Results:

� Developed single view of customer

� Identified high-value customers

� Identified new attributes for targeting or up-selling prospects and customers

� Improved marketing personalization and website experience

� Better attributed marketing efforts

A financial services firm aims to create a unified customer view across all service divisions


Using a DMP for

Attribution


US marketers have high hopes for DMPs and their ability to improve current attribution practices


Still, relatively few are using attribution modeling,let alone using a DMP to do it


Last-click attribution remains the norm worldwide


Such an attribution model assigns retargeting—a popular tactic—full credit


� Cross-channel attribution

� Cross-platform attribution


DMPs enable marketers to build a more complete view of marketing performance


DMPs in practice: Xaxis helps Godiva prove digital’s effect on in-store sales

Results:

� Determined Godiva earned about $2 in sales for every $1 in digital

� Justified and increased digital advertising budget

Godiva layers in offline purchase data with video and display ad performance to determine their effects on driving in-store sales.


DMPs in practice: Tech firm identifies and amplifies the TV-to-search relationship

Results:

� Identified TV driving a good portion of search activity

� Optimized search for TV ads and to drive users to the website for eventual purchase

A large technology company deploys an ad campaign on digital video and TV in anticipation of a new product launch

“Without that integrated view, someone looking at just the web analytics might have just seen the bulk of traffic coming from search and assumed that we shouldn’t bother doing cable advertising.”

—Laurent Colard, global managing partner at GroupM


DMPs improve attribution, but limitations exist

� Mobile’s lack of cookies can make it difficult to identify an individual across devices

� Bringing offline data online results in data loss



Key Takeaways:

1. Big Data is on everyone’s mind, and it’s only getting “bigger.”

2. DMPs are at the heart of the digital advertising ecosystem, touching nearly every platform and technology.

3. DMPs enable marketers to address two of their greatest needs: an understanding and actualization of their audience; and an understanding of their total marketing effects.

4. DMPs are a solution to these challenges, but they still have limitations.


Harnessing Data: A Complementary Relationship

DMPs

• Ingest / normalize data

• Facilitate analytics and insights

• Connect to internal / external platforms for bi-directional data sharing

DSPs

• Target audiences using 1st and 3rd party data

• Buy media at global scale in real time

• Achieve data-driven insights about audiences reached through campaigns

The Trade Desk – A Buyer’s Platform

• 100% proprietary technology

• Display, video, social, and mobile

– one platform

• Attribution and reporting across

all channels

• Ad serving, tracking and analytics

(or bring your own ad server)

• DMP and marketplace for

audience data

Choose audience and campaign

Choose audience and campaign

Launch and manage campaign

Launch and manage campaign

Report on results across channels

Report on results across channels

Trends Propelling DSP Use

• Growth in RTB

• Expansion of international markets

• One word: Facebook

• Expansion to display, mobile, social,

and video

• Big Data (and marketers’ quest to

extract value from it)

• Growing array of targeting strategies

Expanding Array of Targeting Strategies and Tactics

• Leading DSPs delivering more powerful targeting as a result of:– Increasing sophistication of

buyers

– Expanded analytic power within tool sets

– Richer data availability to power selection criteria

Targeting

Strategies

Retargeting

Search

retargeting

IP targeting

Contextual

and site

targeting

3rd party data

+ Audience

Targeting

Geo-Zone

Targeting

Dynamic

Creative

Optimization

Lookalike

Modeling

Extracting Value Using “Right Priced” 3rd Party Data

When priced as a percentage of media spend, the power of 3rd party targeting can be unlocked for FBX and other less expensive media


Q&A Session

Data Management Platforms—Using Big Data to Power Marketing Performance

Sponsored by:

The Trade Desk

You will receive an email tomorrow with a link to

view the deck and webinar recording.

Lauren T. Fisher

Learn more about digital marketing with an eMarketer corporate subscription

Around 200 eMarketer reports are published

each year. Here are some recent reports you

may be interested in:

�Data Management Platforms: Using Big Data to Power Marketing Performance

�eMarketer’s Guide to the Digital Advertising Ecosystem: Mapping the Display Advertising Purchase Paths and the Ad-Serving Process

�Shopping Cart Abandonment: New Ways of Looking at the Purchase Path

�How Retailers are Leveraging ‘Big Data’ to Personalize Ecommerce

�Multichannel Attribution: What Retailers Need to Know

To learn more: www.emarketer.com/products

800-405-0844 or [email protected]

Technology

eMarketer Webinar: Data Management Platforms—Using Big Data to Power Marketing Performance