AUDIENCE TARGETING ROUNDUP

June 2015

Audience targeting is among digital marketersrsquo highest priorities as they try to get their messages in front of the right people From demographic to psychographic to interest-based targeting and more technology is helping them do it eMarketer has curated a Roundup of key articles trends insights and interviews around audience targeting how marketers are using it what itrsquos getting them and what the obstacles are to making it even better

AUDIENCE TARGETING ROUNDUP

presented by

Audience Targeting Roundup Copyright copy2015 eMarketer Inc All rights reserved 2


Overview

According to research by Marin Software audience targeting is one of the top concerns of marketers today A Q4 2014 survey of US and UK digital marketers found that creating campaigns based on understanding audiences was the No 1 priority for this year ahead of cross-channel digital marketing or integrating digital marketing with offline efforts Targeting and personalization also topped the list of digital marketing areas that client-side marketers worldwide planned to prioritize this year in a survey from Econsultancy

The widespread desire to target audiences is a key reason marketers are getting more data-driven According to the Interactive Advertising Bureau (IAB) and the Winterberry Group audience analytics to support segmentation and targeting were the top reason North American marketers were using technology and data to drive their efforts Nearly 83 chose this response

Audience targeting was also behind 86 of marketersrsquo decisions to move away from direct buys and toward programmatic according to March 2015 research from Digiday

Audience data--namely demographics--was the most common attribute used for targeting by US email marketers according to December 2014 data from The Relevancy Group Geographic data was the No 2 way to target and segment audiences

Research from Forbes Insights suggests marketers in different regions and at companies of different sizes have different priorities around audience targeting Overall 73 of senior marketing executives worldwide said they worked with publishers to target audiences while 64 worked with ad networks for the same purpose and 45 used programmatic exchanges to target audiences

For the largest companies demographic targeting was most common with 75 using it On the other end of the spectrum firms with revenues under $1 billion were more likely to target audiences based on psychographic characteristics (78)

Psychographics were also the most popular form of audience targeting among marketers in Asia-Pacific (86) while those in EMEA preferred demographic targeting (74) North American marketers were also most likely to target audiences based on psychographics but less dramatically so than their APAC counterparts

of respondents

Key Factors in Their Decision to Move More AdSpending from Direct to Programmatic According toUS Media Buyers March 2015

Audience targeting86

Placement transparency73

Ability to forecast inventory availability44

First-look impressions35

Abundance of rich media24

Page-level share of voice23

Source Digiday Premium Programmatic Turning What If Into What Is inassociation with Sonobi March 26 2015187709 wwweMarketercom


Despite Concerns Interest in Mobile Audience Targeting Rises

Both interest and investment in mobile audience targeting rose year over year

Marketersrsquo interest in targeting peoplemdashnot devicesmdash is on the rise despite doubts about the veracity of the data used for mobile audience targeting To ease marketersrsquo concerns the advertising industry has made several advancements in audience targeting on mobile devices Advertisers are generally pleased with the progress thatrsquos been made but theyrsquore far from satisfied according to a new eMarketer report ldquoMobile Audience Targeting Have Industry Advances Raised Advertisersrsquo Confidence Levelsrdquo

Last year marketers studied by eMarketer gave mobile ad targeting average grades for effectiveness and research showed that many advertisers were skeptical of the data used to target mobile display ads to specific audience segments on smartphones and tablets

Still the percentage of US digital marketing and media professionals targeting audiences via smartphones and tablets increased significantly last year In 2014 750 of the digital media and marketing professionals polled by eXelate a data management platform provider since acquired by Nielsen said they targeted ads to specific audience segments on smartphones and 731 did so on tablets These shares were up significantly compared with the prior year and were not far below the percentage that used audience targeting tactics for desktop campaigns

A study conducted by Opera Mediaworks also showed mobile audience targeting tactics were being more widely used by advertisers In fact an analysis of mobile ad campaigns served through the Opera Mediaworks ad platform in Q1 2015 showed that in some regions of the world 85 of advertisers targeted ads to unique audiences meaning segments that were created specifically for the campaign

of respondents

Platforms Used by US Digital Media and MarketingProfessionals for Audience Targeting 2013 amp 2014

PCMac750

846

Smartphone617

750

Tablet575

731

We dont target by platform167

58

2013 2014

Source eXelate Audience Targeting State of the Industry Survey inconjunction with Digiday April 29 2014173082 wwweMarketercom

of respondents

Digital Marketing Areas that Client-Side MarketersWorldwide Will Prioritize in 2015

Targeting and personalization 30

Content optimization 29

Social media engagement 27

Brand buildingviral marketing 24

Multichannel campaign management 22

Conversion rate optimization 20

Search engine marketing 17

Mobile optimization 16

Video content 15

Marketing automation 15

Mobile app engagement 13

Joining up online and offline data 12

Social media analytics 9

Real-time marketing 9

Customer scoringpredictive marketing 9

Ad targeting optimization 8

Video advertising 7

Mobile app analytics 6

Note n=2748Source Econsultancy Quarterly Digital Intelligence Briefing Digital Trends2015 in association with Adobe Jan 28 2015184994 wwweMarketercom


With ad dollars quickly shifting from desktop to mobile interest in ad targeting is rising Marketersrsquo focus on this particular discipline was apparent in the results of a three-month survey conducted by Econsultancy in partnership with Adobe between November 2014 and January 2015 When the research firm asked a group of digital marketing and ecommerce professionals worldwide to name the digital marketing disciplines they were prioritizing in 2015 targeting and personalization topped the list up from third place in 2014

More specifically audience targeting topped the priority list for marketers polled by Marin Software in Q4 2014 When the cross-channel ad provider asked digital marketers in the US and UK to name their top priorities for 2015 creating campaigns based on a deeper understanding of audiences came in at No 1 cited by more than half of the respondents (51) In addition investing in more sophisticated technology to gain and act on insights about customers was chosen by one-third of the marketers polled earning it fifth place on the list

Email Targeting Isnrsquot All that Advanced Yet

Simple metrics such as demographics geography most common for segmentation

Despite plans to increase personalization efforts email marketers still struggle when it comes to using consumer data to successfully segment and target their audiences A December 2014 study by The Relevancy Group found that US marketers relied on less advanced customer data attributes to segment audiences for email marketing campaigns

General demographic and geographic data were the most common metrics used for segmentation and the only ones used by more than 35 of respondents Meanwhile other easily measured data points such as email clicks and open rates were used less frequentlymdashespecially the lattermdashand most marketers were unable to leverage metrics beyond the email realm such as past purchases and spending habits

One look at how marketers managedmdashor didnrsquot managemdashcustomer data and low usage of sophisticated metrics made all the more sense Fewer than four in 10 respondents had a centralized data repository for their client data Even worse just 28 centralized customer data from across channels to create a single record for the customer despite their desire for a 360-degree view of customer-brand interaction

Predictive analyticsmdashone of the most important parts of marketing automation which drives better targeting and personalizationmdashwas among the least-used methods while keeping data ldquocleanrdquo ranked lowest

Issues with data tracking prevent marketers from leveraging customer data across channels In a November 2014 study by Adobe for the Direct Marketing Association (DMA) less than half (46) of digital marketers in North

of respondents

Top 5 Priorities for 2015 According to DigitalMarketers in the UK and US

1 Creating campaigns based on deeper understanding ofaudiences

51

2 Cross-channel digital marketing50

3 Better integration of online and offline marketing efforts46

4 Better integration of digital marketing disciplines44

5 Investing in more sophisticated technology to gain and act oninsights about customers

33

Source Marin Software 2015 Digital Marketers Census Dec 16 2014187977 wwweMarketercom


America said they utilized information from other channels when running email campaigns

The good news is that marketers polled by The Relevancy Group planned to focus more on segmentation and targeting ranking it the top email marketing priority for 2015 In line with this greater use of analytics in order to optimize communications as well as centralizing customer data and making it actionable also landed among the top five priorities However responses for all three were still relatively low at 35 30 and 29 respectively suggesting the need for improvement wonrsquot die down all that soon

of respondents

Customer Data AttributesMetrics Used by USMarketers to Segment Audiences for Email MarketingCampaigns Dec 2014

Demographic data41

Geographic data39

Customer satisfaction survey data34

Clickthroughs on email marketing offers33

Customer spending31

Frequency of purchase conversion rate29

Customer profitability (customer lifetime value)28

Frequency of customer service contacts28

Transaction activitypurchase behavior27

Open rate on email marketing offers27

Acquisition source27

Website clickstream analysis27

Note n=353 in the past 6 monthsSource The Relevancy Group The Relevancy Ring ESP Buyers Guide2015 Feb 23 2015186505 wwweMarketercom

of respondents

Methods Used by US Marketers to Manage CustomerData Dec 2014

Use email address as a unique customer identifier36

Have a centralized data repository for our client data36

Measure lifetime customer value32

Store our client data in the same schema for all marketingchannels

29

Know the value of our email subscribersvalue of an emailaddress

28

Centralized customer data from across channels to recognize thecustomer in a single record

28

Practice data householding to understand multiplecustomersaccounts within a single household

28

Track acquisition costs by channel28

Use multiple channel-specific databases to store our customerdata

28

Utilize predictive customer analytics27

Use robust data hygiene and deduplication processes for datamanagement

26

Note n=353Source The Relevancy Group The Relevancy Ring ESP Buyers Guide2015 Feb 23 2015186506 wwweMarketercom


Can Marketers Overcome Cross-Device Targeting Barriers

Cross-device targeting is in demandmdashbut fragmented

Cross-device targeting is still in its early days even as growing numbers of advertisers publishers and ad platforms participate in the practice Today therersquos no shortage of people promising cross-device targeting solutions but the incompatibility of those solutions across publishers platforms and devices can leave advertisers frustrated and their efforts fragmented according to a new eMarketer report ldquoCross-Device Targeting Success Hinges on Device Identification Methodsrdquo

For years the cookie served as the universal online advertising identifier enabling buyers sellers and third-party go-betweens to effectively recognize and reach individuals But today as non-web-based digital activities on mobile phones and apps connected TVs wearables connected cars and other IP-enabled devices continue to compose an increasing portion of consumersrsquo digital media footprints the cookiersquos utility is waning Yet the need for a universal identifier has never been greater

Marketersrsquo interest in cross-device ad targeting is clear In a January 2014 survey of US agency media professionals conducted by research firm Bovitz on behalf of digital marketing personalization firm Conversant the greatest number of respondents (70) cited cross-device advertising as the digital advertising topic they wanted to know more about

An April 2014 survey conducted by Forrester Consulting and commissioned by demand-side platform (DSP) Simplifi found 53 of US advertising and publishing decision-makers were already selling full cross-platform integrated programs Significant numbers of respondents also said they sold cross-device advertising capabilities between pairs of screens such as phones and tablets or desktop and video

Inarguably the biggest shift that both buyers and sellers must first undergo before making cross-device targeting a reality is to move from sole reliance on the cookie to some other identification tag capable of recognizing an individual across all digital screens operating systems

and browsers In the absence of such technology cross-device ad targeting just wonrsquot work

But accessing and applying that technology at scale can prove challenging further complicating advertisersrsquo ability to track and target audiences across screens In a Q2 2014 survey of US agency professionals conducted by digital display ad platform Jivox more than half of respondents (54) cited audience tracking and targeting as the biggest impediments to multiscreen advertising

of respondents

Cross-Platform Packages Sold by US Advertising andPublishing Decision-Makers April 2014

Full cross-platform integrated programs 53

Phone and tablet 42

Phone and desktop 38

Desktop and video 36

Tablet and desktop 36

Phone and video 32

Tablet and video 29

Desktop and print 27

Print and video 26

Tablet and print 26

Phone and print 24

We dont sell cross-platform programs7

Note n=100Source Forrester Consulting Local Programmatic Creates a World ofOpportunity When Digital Advertisers and Publishers Alike OvercomeBarriers commissioned by Simplifi July 2014178219 wwweMarketercom

of respondents

Biggest Challenge of Multiscreen CampaignsAccording to US Agency Professionals Q2 2014

Audience tracking33

Creative production24

Common metrics22

Targeting21

Source Jivox The New Era of Multi-Screen Advertising July 28 2014177647 wwweMarketercom


Marketers Focus on Making Attribution Data Actionable

Industry experts discuss real-time optimization of cross-platform attribution findings

No one would argue the importance of cross-platform attributionmdashdefined as a method of assigning credit to a particular marketing-driven interaction or other brand touchpoint But when it comes to pursuing and implementing attribution the majority of marketers still fall short according to a new eMarketer report ldquoCross-Platform Attribution 2015 Device Identification Big Data Pose Continued Challengesrdquo

As marketers increasingly look to attribution to better understand customers not just build their media plans and justify budgets figuring out how to act on cross-platform attribution findings as quickly as possible is on the minds of many

Though blending top-down marketing-mix models with bottom-up path analysis is a popular method of gaining a true holistic view of all paid owned and earned advertising efforts across digital and traditional media most find that real-time optimization of intel gained from this approach is still mostly limited to those channels and formats belonging to the digital bottom-up bucket where impression-level tracking and real-time reporting allows for more real-time optimization

ldquoThe more sophisticated attribution solutions from a media-mix modeling perspective are helping with channel allocation and budget planning but the adjustments and optimizations are still largely coming from the microattribution that wersquore doing on the digital siderdquo said Allegra Kadet managing director at NeoOgilvy ldquoThough wersquore making progress on making all channels actionable therersquos always going to be some outliers where you canrsquot connect one channel to another chain of events I think itrsquos unrealistic to expect that 100 of all channels will be optimized in real timerdquo

Thatrsquos not to say that some marketers arenrsquot looking to instill a more real-time optimization approach to some of their traditional media According to Harpreet Singh CEO of Kvantum one of the biggest trends he is seeing among

clients is to make traditional offline media more actionable particularly television

Singh said more and more marketers hope to identify the effects of TV ad efforts two or three weeks into the campaign with backup alternative media plans on deck to optimize and adjust efforts as needed

Singh said most of those optimizations are happening through spot buys whether to dial back on future television investmentmdashin favor of digital channelsmdashor augment current TV performance with additional coverage In using attribution to tie actual in-store sales back to TV and other advertising exposures clients can then determine which designated market areas (DMAs) are best suited for further TV investment based on the performance of the stores located in the same region

The importance of attributing and optimizing all actions against actual revenue data such as in-store purchase data is notable Historically most digital channel optimization is centered on digital-specific measures such as clicks and conversions with traditional media modified based on brand-based metrics Though such metrics might be important indicators of channel-specific success by and large they are not the determinants of cross-platform attribution success

of respondents

Attribution Models Used by US B2B and B2CMarketers to Measure ROI Nov 2014

Multichannel (all influencing touchpoints)21

Last touch (conversion)19

First and last touch (lead source amp conversion)18

First touch (lead source)15

Other9

Dont have an attribution model in place38

Source Webmarketing123 2015 State of Digital Marketing Feb 10 2015185695 wwweMarketercom


Publishers Reach for Audience Extension

Audience extensions increases reach impressions

Audience extension has gained popularity among publishers based on September 2014 research by Rocket Fuelrsquos Audience Accelerator and Digiday those using the tactic are happy with the results

Though the percentage of US digital media and marketing execs offering audience extension as an option rose just slightly year over year to 52 those doing so were leveraging it more frequently One-third said they included audience extension in most or all of their campaign proposalsmdashan increase of 31

Publishers were most likely to include audience extension in campaign proposals to extend reach and add impressions with the percentage of respondents citing this rising from 47 to 73 year over year When asked for a request for proposal (RFP) publishers had shifted efforts

increasing audience extension when it addressed a specific demand in an RFP while decreasing it when asked for data-driven audience-based buys

Looking at platforms used third-party ad networks saw a huge drop in their popularity from 57 to 38 year over year Meanwhile demand-side platforms experienced a massive leap in usage increasing from 25 to 44 to tie with three other options for first place Programs integrated with publishersrsquo ad servers saw their response rate rise 9 percentage points as did data management platforms (DMPs)

Audience extension appears to be driving DMP usage among publishers In an April 2014 study by Forrester Consulting for Simplifi 68 of US publishing decision-makers said they used such tools to create data-driven advertising programs such as audience extensionmdashthe top response

of respondents

Ways in Which US Digital Media and MarketingExecutives Include Audience Extension in CampaignProposals 2013 amp 2014

Include it when it addresses an objective specifically asked forin an RFP

50

58

Include it when an RFP asks for data-driven audience-basedbuys

50

42

Include it when we need additional reach or impressions todeliver a campaign

47

73

Created a unique product and rolled it out to our top advertisers30

39

Include it when an RFP asks for channels that we dont have(eg mobile video social)

23

30

Other6

9

2013 2014

Note defined as the practice where advertisers can purchase adinventory that is targeted to a particular publishers premium site audienceelsewhere on the internetSource Audience Accelerator and Digiday The Value of Digital PublishersAudiences Oct 22 2014181219 wwweMarketercom

of respondents

Platforms Used for Audience Extension by US DigitalMedia and Marketing Executives 2013 amp 2014

Third-party ad network57

38

In-house network39

44

Integration with my ad server35

44

Data management platform (DMP)35

44

Demand-side platform (DSP)25

44

Seat on an exchange24

25

Supply-side platform (SSP)24

34

2013 2014



Digital Advertisers Focus on Holistic Customer Experience

Mobile trumps desktop in ad spending

The much-anticipated shift toward mobile will occur this year in the two largest digital advertising categories search and display For the first time US advertisers will spend more in these areas to reach consumers on mobile devices than desktop computers according to a new eMarketer report ldquoThe State of US Digital Advertising 2015 Mobile Trumps Desktop People Trump Devicesrdquo

eMarketer estimates US advertisers will spend $5271 billion on search and display advertising in 2015 up 166 from the prior year In an effort to catch up with consumers toting smartphones and tablets more than half (522) of this expenditure is expected to go toward mobile campaigns

Devices take center stage at the budgetary and tactical level but strategically marketers are focusing less on devices and more on people specifically connecting with consumers wherever and whenever they access the web

ldquoThe biggest change wersquore seeing is the move towards people-centric marketingrdquo said Chad Gallagher global director of mobile for AOL ldquoBoth brand and performance advertisers are saying lsquoWe donrsquot necessarily care about the device we care about driving results against peoplersquo Thatrsquos a fundamental changerdquo

Marketers are keenly aware that the average person relies on multiple devices to access the internet so the device itself is no longer a strong indicator of the type of person using it According to Forrester Research US consumers across all demographic groups used an average of 33 devices last year Millennials used moremdashfour devices on average

Armed with such knowledge marketers are thinking more holistically about the customer experience they deliver across multiple screens instead of focusing on each device and channel as a silo The vast majority (86) of marketers worldwide polled by Salesforcecom in November 2014 said

delivering a cohesive customer journey across devices was very important or critical to the success of their business

Marketers surveyed worldwide in January 2015 by Econsultancy on behalf of Adobe held similar views Nearly six in 10 said cross-channel marketing would be a key focus for them this year

Indeed most agree that identifying target audiences across devices and delivering a cohesive brand message to each

billionsUS Display and Search Ad Spending by Device 2015

Search ad spending

$1282

$1285

$2566

Display ad spending

$1238

$1467

$2705

Desktop Mobile

Note numbers may not add up to total due to rounding includesspending primarily on desktop-based ads ad spending on tablets isincludedSource eMarketer March 2015186591 wwweMarketercom

Average Number of Connected Devices Used by USInternet Users by Generation 2014

Gen Z (ages 18-24) 36

Millennials (ages 25-34) 40

Gen X (ages 35-44) 36

Younger baby boomers (ages 45-54) 29

Older baby boomers (ages 55-64) 26

Seniors (ages 65+) 20

Total 33

Source Forrester Research The State of Consumers and TechnologyBenchmark 2014 US as cited in company blog Jan 16 2015184904 wwweMarketercom


screen is the path toward success ldquoMarketers have all seen the graphs that show people are spending more and more time on mobile devices and they know they need a strategyrdquo said Adam Berke president and CMO of AdRoll ldquoHowever if you ask lsquoWhatrsquos your business objective for mobilersquo they havenrsquot had a great answer for thatldquo Itrsquos difficult to extend campaigns beyond desktop Berke added if marketers donrsquot know what theyrsquore aiming to achieve by serving ads to mobile devices

APAC Marketers Challenged to Find the Right Audience

Psychographics are the most popular audience targeting methods in Asia-Pacific

Based on December 2014 research from Forbes Insights marketers in Asia-Pacific consider a variety of audience targeting methods more important for branding campaigns than do marketers in other regions From psychographics to demographics to purchase data and more senior marketing executives in Asia-Pacific were more likely to rate them key for branding campaigns than their counterparts in North America or Europe the Middle East and Africa (EMEA)

Within Asia-Pacific psychographics were the most likely audience targeting method to be rated important at 86 of respondents Purchase data was just 2 percentage points behind with demographics coming in third at 72 Around two-thirds of respondents in Asia-Pacific also considered social and search data important

Meanwhile in EMEA no type of audience targeting garnered even three-quarters of responses with demographics coming in first at 74 Marketers in North America preferred psychographic targeting with interest-

of respondents

Client-Side Marketing and Ecommerce ProfessionalsWorldwide for Whom Cross-Channel Marketing WillBe a Focus in 2015

Strongly agree14

Agree45

Neutral30

Disagree8

Strongly disagree3

Source Econsultancy Quarterly Digital Intelligence Briefing Digital Trends2015 in association with Adobe Jan 28 2015187061 wwweMarketercom

of respondents

Audience Targeting Methods Most Important toBrand Campaigns According to Senior MarketingExecutives Worldwide by Region and CompanyRevenues Dec 2014

Region

Asia-Pacific

North America

Europe Middle East amp Africa

Company revenue

$500-$999 million

$1-$49 billion

$5-$99 billion

$10+ billion

Worldwide

Source Forbes Insights Reaching the Right Audience How Brands AreUsing Audience Targeting in Digital Advertising in association withQuantcast May 5 2015189600 wwweMarketercom

Interests and lifestyle (psychographics)

Demographics

Purchase data

Social data

Search data

86

76

61

78

77

86

54

75

72

69

74

72

63

74

75

71

84

63

53

75

56

69

48

66

69

54

42

59

46

54

56

55

64

40

42

55

42

34

38

47


and lifestyle-based targeting rated important by 76 of respondents

Asia-Pacific also stood out when marketers were asked to describe the challenges they faced when using audience targeting for display ads Worldwide 54 of respondents said identifying proper target personas was their biggest issue the No 1 challenge That was also the top challenge in EMEA and North America specifically but not in Asia-Pacific Instead the availability of those target personas was the biggest problem named by 42 of respondents in the region

According to Q1 2015 data from comScore vCE Benchmarks 39 of digital display ads served in Asia-Pacific during that time period were in-target That was a few percentage points below in-target rates for North America (43) and EMEA (44) but slightly ahead of successful targeting rates in Latin America (37)

Location Data Not Only Signals Where You Are It Signals Who You Are

Tyler Bell

Vice President Product

Factual

Location-based targeting has evolved far beyond geofencing (serving an ad to a mobile device detected within a predetermined perimeter of a physical location) and geoconquesting (serving an ad to mobile devices within close proximity of a competitorrsquos location) to become a method for identifying and serving ads to unique audience segments Tyler Bell vice president of product for Factual a location platform and data provider spoke with eMarketerrsquos Cathy Boyle about how advertisers are leveraging location data to better understand people through the places they visit

eMarketer Do you have to constantly track a mobile userrsquos location to gain insight into who that person is

Tyler Bell The way that you tend to get location in the mobile world now is through what we call intermittent location which means that you get a blip [of data] that says this user was here at a given time Very often that blip comes when the user opens an app or maybe when an ad is served in the app

Users are not getting tracked or traced with every step they take Instead there are these tiny windows into location data points By itself any one location data point doesnrsquot say much Factual looks at all the signal blips over the course of several weeks or a month because humans are creatures of habit so a lot of interesting patterns begin to develop

ldquoFactual looks at all the signal blips over the course of several weeks or a month because humans are creatures of habit so a lot of interesting patterns begin to developrdquo

eMarketer How are you using geodata to better understand the person using the device

Bell I should start out by saying that understanding the age or the gender of someone by how they move is always going to be problematic But what Factual does is use two very strong signals [indicators of demographic traits] For one we can see the range of applications that a user has on their phone Not the entirety of them but very often a couple of apps And these applications are strong signals that machine learning algorithms use to determine age and gender of the device user

We do the same thing with location data as well When people are out we look at whether they are going to


nightclubs for example The general patterns of behavior over time are usually indicative of age and gender too

Ethnicity and household income are hard to get from location But by using that data we can make a guess as to which census block group a person is located in The US Census aggregates information in a so-called block group level which you can think of as one or more city blocks That information is a pretty good metric for making assumptions about ethnicity in some circumstances as well as household income

eMarketer Can you give me an example of how location data might suggest a person is part of a specific audience segment

Bell To understand that someone is a business traveler we donrsquot necessarily have to see them at airports We might see one location data point and then a few hours later wersquoll see another data point from that same device thousands of miles away from the first location So even though we didnrsquot necessarily see that device at an airport the two other location points tell us that the person has taken an airplane And if that person does that several times during the week then they tend to fall into the business traveler category

ldquoWe just process location data on behalf of our partners The last thing that we want to do is go out there and start just creating massive audiences from amalgamated location datardquo

eMarketer If a brand wants to understand more about its existing customers can they come to you with their CRM data and say ldquoTell me where my customers go so I can better understand their behaviors in the real worldrdquo

Bell Yeah that kind of brand analysis is something that we can do But brands would need to work with one of our partners like MoPub because Factual doesnrsquot own its own location data We just process location data on behalf of our partners Thatrsquos a really important point because location is so intimate and so private The last thing that we want to do is go out there and start just creating massive audiences from amalgamated location data

So if a brand comes to us and says ldquoHey Factual do you have good location streams where we can learn about who goes to our Home Depot stores and where they go afterwardsrdquo we can have a word with MoPub or someone similar to see if they would be willing to work with this brand If they agree we can do an analysis of where people have gone over time and what kind of people are visiting the retailerrsquos locations how far stores are from their home block group etc

eMarketer The location data sounds like itrsquos owned by an exchange publisher or ad network and that yoursquore helping them parse that data to find the audiences that are of interest to brands Is that right

Bell Thatrsquos correct Wersquore a force multiplier for location data So if we work with The Weather Channel or any of the exchanges they pass us their location data We create the audiences doing our location process and then we give those audiences back to the partner who gave us the data in the first place

eMarketer Can the audience insight gleaned through location data also improve desktop ad serving and targeting as well

Bell Therersquos a bunch of technologies that you can use to do that to build those cross-device profiles Some are successful but none of them are entirely successful Generally what wersquore seeing is that a lot of our partners are trying to go from desktop onto mobile Theyrsquore trying to say ldquoHow can we take this cookie-based profile that wersquove built over the last five years using desktop approaches and apply that to mobilerdquo Thatrsquos very tough and itrsquos one reason that Factual is starting on the other side and wersquore saying how can we work with mobile natively to help build the best possible audiences


Alex and Ani CMO Insights on Mobile-Social Audience Targeting

Ryan Bonifacino

CMO and Senior Vice President Digital

Alex and Ani

In the past year advancements have been made in mobile targeting to help marketers better reach their audience Ryan Bonifacino chief marketing officer and senior vice president of digital at jewelry retailer Alex and Ani recently spoke with eMarketerrsquos Rimma Kats about the advantages of mobile audience targeting and the pitfalls marketers should avoid

eMarketer When yoursquore interested in reaching specific audience segments on smartphones and tablets which mobile ad inventory source do you find to be most reliable

Ryan Bonifacino If I were to get granular it would have to be more of a paid social effort like Facebook or Twitter

eMarketer What technology or capabilities make these publishers stand above the rest

Bonifacino On Facebook you are able to use management tools We use a tool called Kenshoo and therersquos a bunch of other tools out there that are able to give brand visibility into the relationship between things like search and social specific to mobile

eMarketer What were you doing a year ago to target audiences on mobile with Facebook and Twitter that yoursquore no longer doing

Bonifacino We were probably doing the same things but we have additional insights and analytics now We have additional third-party data being [integrated] into our data management platform That data brings a lot more insights in our strategy and what wersquore willing to pay for that customer specific to that device

ldquoItrsquos really difficult to target audiences on Facebook or Twiiter the right way if you donrsquot have your data centralized in one placerdquo

eMarketer Are there any pitfalls to avoid with audience targeting on Facebook or Twitter

Bonifacino Tons Itrsquos really difficult to target audiences on Facebook or Twitter the right way if you donrsquot have your data centralized in one place A big piece of advice is to start with a data-centralization strategy that runs in parallel to your audience targeting efforts

eMarketer Do you use a data-management platform to help target ads to specific audience segments on mobile

Bonifacino We do We wouldnrsquot be close to where we are right now if we didnrsquot have a DMP We would have all sorts of the data sit with separate systems that donrsquot talk to one another and this goes back to the strategy behind centralizing data Itrsquos absolutely critical for us to be able to get significant and measurable gain with mobile audience targeting given the use of the DMP

eMarketer What data are you leveraging most from your DMP to target audiences

Bonifacino Our own data We have it all in one place and are able to do natural matching on the records that we have and then enhanced matching based on the third-party data that wersquore bringing into the system

eMarketer Have you leveraged location data as a means of defining and targeting audience segments

Bonifacino We have particularly when it comes to our in-store digital marketing efforts We run campaigns that are pushing both new and existing customers to stores Those are not necessarily the coupon-type campaigns theyrsquore more content-driven Wersquore making sure that our current group of gift givers and direct purchasers have constant visibility into new products that wersquore launching

Like any successful digital marketing effort yoursquore going to have some failures Itrsquos important to make sure yoursquore testing the right way and providing an optimized experience


Reaching Segmented Audiences Through Facebook and Twitter

Jeremy Lockhorn

Vice President Emerging Media and Mobile Lead North America

Razorfish

Marketersrsquo confidence in mobile audience targeting is fairly low but that is beginning to change according to Jeremy Lockhorn vice president of emerging media and mobile lead for North America at digital agency Razorfish Lockhorn recently spoke with eMarketerrsquos Rimma Kats about reaching specific audience segments and how Facebook and Twitter are helping achieve that

eMarketer Survey data suggests marketersrsquo confidence in mobile audience targeting is low Would you agree with that

Jeremy Lockhorn Generally speaking that sounds fair to me It is increasing though There are a lot of players out there coming at it from different angles and they try to keep their approaches almost in a box They donrsquot provide a lot of detail on how they are layering on data and developing audience targeting profiles That lack of transparency leads to a lower level of confidence But again that is starting to change

eMarketer When yoursquore interested in reaching specific audience segments on smartphones and tablets which inventory source or method of buying mobile ad inventory do you find to be the most reliable in terms of reaching your intended audience

Lockhorn We come at it from a couple of different approaches Some of our teams are taking a consumer-first approach as opposed to a mobile-first perspective They donrsquot care whether theyrsquore reaching the audience in terms of what the device is Theyrsquore working with a premium cross-channel publisher and some of the inventory is hitting on mobile They are just leveraging either the contextual adjacency or what that publisher may know about the audience based on login data Theyrsquore not really thinking about which device this is happening on

On the flip side wersquove got a lot of teams that are using audience targeting They are using technologies that are unique to mobile

ldquoBoth Facebook and Twitter can be pretty effective especially when you think about user acquisition for mobile applicationsrdquo

eMarketer What about Facebook and Twitter are they reliable sources for audience targeting

Lockhorn YesmdashFacebook in particular Yoursquove got a really good sense of what the interest level is Both Facebook and Twitter can be pretty effective especially when you think about user acquisition for mobile applications Part of what drives that is the level of the audience targeting that you can get to with those guys

eMarketer Have you ever used location data as a means of defining and targeting audience segments

Lockhorn Yes we work with Citibank on an ongoing program It launched almost a year and a half ago If you have the Citi ThankYou Preferred Card you earn points based on the spending level In certain types of spending categories like dining and entertainment you can earn twice the points for purchases

Wersquove developed audience segments targeting people that dine out frequently or that go to entertainment venues regularly We buy messages and promote the ThankYou card against those segments

copy2015 Neustar Inc

This information is compiled at the household level using Neustarrsquos products and services and is not based on actual online behavioral data Doritosreg is a registered trademark and has no direct association with Neustar

SHErsquoS INTO DUMBBELLS AND DORITOSregNOT ALWAYS IN THAT ORDER

If yoursquore trying to reach this busy mom and high-value consumer it pays to understand her instead of guessing For example her family indexes low for buying frozen food and high for preferring dishes ldquopresented as an art formrdquo And besides strength training shersquos also big-time into Pinterest Learn more about Neustarrsquos identity targeting and measurement solutions at wwwneustarbizwagners

ALISHA WAGNER UBER-MOM

Coverage of a Digital WorldeMarketer data and insights address how consumers spend time and money and what marketers are doing to reach them in todayrsquos digital world Get a deeper look at eMarketer coverage including our reports benchmarks and forecasts and charts

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The leading research rm for marketing in a digital world



Overview

According to research by Marin Software audience targeting is one of the top concerns of marketers today A Q4 2014 survey of US and UK digital marketers found that creating campaigns based on understanding audiences was the No 1 priority for this year ahead of cross-channel digital marketing or integrating digital marketing with offline efforts Targeting and personalization also topped the list of digital marketing areas that client-side marketers worldwide planned to prioritize this year in a survey from Econsultancy

The widespread desire to target audiences is a key reason marketers are getting more data-driven According to the Interactive Advertising Bureau (IAB) and the Winterberry Group audience analytics to support segmentation and targeting were the top reason North American marketers were using technology and data to drive their efforts Nearly 83 chose this response

Audience targeting was also behind 86 of marketersrsquo decisions to move away from direct buys and toward programmatic according to March 2015 research from Digiday

Audience data--namely demographics--was the most common attribute used for targeting by US email marketers according to December 2014 data from The Relevancy Group Geographic data was the No 2 way to target and segment audiences

Research from Forbes Insights suggests marketers in different regions and at companies of different sizes have different priorities around audience targeting Overall 73 of senior marketing executives worldwide said they worked with publishers to target audiences while 64 worked with ad networks for the same purpose and 45 used programmatic exchanges to target audiences

For the largest companies demographic targeting was most common with 75 using it On the other end of the spectrum firms with revenues under $1 billion were more likely to target audiences based on psychographic characteristics (78)

Psychographics were also the most popular form of audience targeting among marketers in Asia-Pacific (86) while those in EMEA preferred demographic targeting (74) North American marketers were also most likely to target audiences based on psychographics but less dramatically so than their APAC counterparts

of respondents

Key Factors in Their Decision to Move More AdSpending from Direct to Programmatic According toUS Media Buyers March 2015

Audience targeting86

Placement transparency73

Ability to forecast inventory availability44

First-look impressions35

Abundance of rich media24

Page-level share of voice23

Source Digiday Premium Programmatic Turning What If Into What Is inassociation with Sonobi March 26 2015187709 wwweMarketercom








of respondents


PCMac750

846

Smartphone617

750

Tablet575

731


58

2013 2014


of respondents










Video content 15








Video advertising 7













of respondents



51





33





of respondents


Demographic data41

Geographic data39



Customer spending31









of respondents






29


28


28


28



28



26












of respondents



Phone and tablet 42




Phone and video 32

Tablet and video 29


Print and video 26

Tablet and print 26

Phone and print 24



of respondents


Audience tracking33


Common metrics22

Targeting21














of respondents






Other9












of respondents



50

58


50

42


47

73


39


23

30

Other6

9

2013 2014


of respondents



38

In-house network39

44


44


44


44


25


34

2013 2014















Search ad spending

$1282

$1285

$2566

Display ad spending

$1238

$1467

$2705

Desktop Mobile



Gen Z (ages 18-24) 36


Gen X (ages 35-44) 36




Total 33









of respondents


Strongly agree14

Agree45

Neutral30

Disagree8

Strongly disagree3


of respondents


Region

Asia-Pacific

North America


Company revenue

$500-$999 million

$1-$49 billion

$5-$99 billion

$10+ billion

Worldwide



Demographics

Purchase data

Social data

Search data

86

76

61

78

77

86

54

75

72

69

74

72

63

74

75

71

84

63

53

75

56

69

48

66

69

54

42

59

46

54

56

55

64

40

42

55

42

34

38

47






Tyler Bell


Factual
























Ryan Bonifacino


Alex and Ani




















Jeremy Lockhorn


Razorfish






























of respondents


PCMac750

846

Smartphone617

750

Tablet575

731


58

2013 2014


of respondents










Video content 15








Video advertising 7













of respondents



51





33





of respondents


Demographic data41

Geographic data39



Customer spending31









of respondents






29


28


28


28



28



26












of respondents



Phone and tablet 42




Phone and video 32

Tablet and video 29


Print and video 26

Tablet and print 26

Phone and print 24



of respondents


Audience tracking33


Common metrics22

Targeting21














of respondents






Other9












of respondents



50

58


50

42


47

73


39


23

30

Other6

9

2013 2014


of respondents



38

In-house network39

44


44


44


44


25


34

2013 2014















Search ad spending

$1282

$1285

$2566

Display ad spending

$1238

$1467

$2705

Desktop Mobile



Gen Z (ages 18-24) 36


Gen X (ages 35-44) 36




Total 33









of respondents


Strongly agree14

Agree45

Neutral30

Disagree8

Strongly disagree3


of respondents


Region

Asia-Pacific

North America


Company revenue

$500-$999 million

$1-$49 billion

$5-$99 billion

$10+ billion

Worldwide



Demographics

Purchase data

Social data

Search data

86

76

61

78

77

86

54

75

72

69

74

72

63

74

75

71

84

63

53

75

56

69

48

66

69

54

42

59

46

54

56

55

64

40

42

55

42

34

38

47






Tyler Bell


Factual
























Ryan Bonifacino


Alex and Ani




















Jeremy Lockhorn


Razorfish

































of respondents



51





33





of respondents


Demographic data41

Geographic data39



Customer spending31









of respondents






29


28


28


28



28



26












of respondents



Phone and tablet 42




Phone and video 32

Tablet and video 29


Print and video 26

Tablet and print 26

Phone and print 24



of respondents


Audience tracking33


Common metrics22

Targeting21














of respondents






Other9












of respondents



50

58


50

42


47

73


39


23

30

Other6

9

2013 2014


of respondents



38

In-house network39

44


44


44


44


25


34

2013 2014















Search ad spending

$1282

$1285

$2566

Display ad spending

$1238

$1467

$2705

Desktop Mobile



Gen Z (ages 18-24) 36


Gen X (ages 35-44) 36




Total 33









of respondents


Strongly agree14

Agree45

Neutral30

Disagree8

Strongly disagree3


of respondents


Region

Asia-Pacific

North America


Company revenue

$500-$999 million

$1-$49 billion

$5-$99 billion

$10+ billion

Worldwide



Demographics

Purchase data

Social data

Search data

86

76

61

78

77

86

54

75

72

69

74

72

63

74

75

71

84

63

53

75

56

69

48

66

69

54

42

59

46

54

56

55

64

40

42

55

42

34

38

47






Tyler Bell


Factual
























Ryan Bonifacino


Alex and Ani




















Jeremy Lockhorn


Razorfish


























of respondents


Demographic data41

Geographic data39



Customer spending31









of respondents






29


28


28


28



28



26












of respondents



Phone and tablet 42




Phone and video 32

Tablet and video 29


Print and video 26

Tablet and print 26

Phone and print 24



of respondents


Audience tracking33


Common metrics22

Targeting21














of respondents






Other9












of respondents



50

58


50

42


47

73


39


23

30

Other6

9

2013 2014


of respondents



38

In-house network39

44


44


44


44


25


34

2013 2014















Search ad spending

$1282

$1285

$2566

Display ad spending

$1238

$1467

$2705

Desktop Mobile



Gen Z (ages 18-24) 36


Gen X (ages 35-44) 36




Total 33









of respondents


Strongly agree14

Agree45

Neutral30

Disagree8

Strongly disagree3


of respondents


Region

Asia-Pacific

North America


Company revenue

$500-$999 million

$1-$49 billion

$5-$99 billion

$10+ billion

Worldwide



Demographics

Purchase data

Social data

Search data

86

76

61

78

77

86

54

75

72

69

74

72

63

74

75

71

84

63

53

75

56

69

48

66

69

54

42

59

46

54

56

55

64

40

42

55

42

34

38

47






Tyler Bell


Factual
























Ryan Bonifacino


Alex and Ani




















Jeremy Lockhorn


Razorfish

































of respondents



Phone and tablet 42




Phone and video 32

Tablet and video 29


Print and video 26

Tablet and print 26

Phone and print 24



of respondents


Audience tracking33


Common metrics22

Targeting21














of respondents






Other9












of respondents



50

58


50

42


47

73


39


23

30

Other6

9

2013 2014


of respondents



38

In-house network39

44


44


44


44


25


34

2013 2014















Search ad spending

$1282

$1285

$2566

Display ad spending

$1238

$1467

$2705

Desktop Mobile



Gen Z (ages 18-24) 36


Gen X (ages 35-44) 36




Total 33









of respondents


Strongly agree14

Agree45

Neutral30

Disagree8

Strongly disagree3


of respondents


Region

Asia-Pacific

North America


Company revenue

$500-$999 million

$1-$49 billion

$5-$99 billion

$10+ billion

Worldwide



Demographics

Purchase data

Social data

Search data

86

76

61

78

77

86

54

75

72

69

74

72

63

74

75

71

84

63

53

75

56

69

48

66

69

54

42

59

46

54

56

55

64

40

42

55

42

34

38

47






Tyler Bell


Factual
























Ryan Bonifacino


Alex and Ani




















Jeremy Lockhorn


Razorfish



































of respondents






Other9












of respondents



50

58


50

42


47

73


39


23

30

Other6

9

2013 2014


of respondents



38

In-house network39

44


44


44


44


25


34

2013 2014















Search ad spending

$1282

$1285

$2566

Display ad spending

$1238

$1467

$2705

Desktop Mobile



Gen Z (ages 18-24) 36


Gen X (ages 35-44) 36




Total 33









of respondents


Strongly agree14

Agree45

Neutral30

Disagree8

Strongly disagree3


of respondents


Region

Asia-Pacific

North America


Company revenue

$500-$999 million

$1-$49 billion

$5-$99 billion

$10+ billion

Worldwide



Demographics

Purchase data

Social data

Search data

86

76

61

78

77

86

54

75

72

69

74

72

63

74

75

71

84

63

53

75

56

69

48

66

69

54

42

59

46

54

56

55

64

40

42

55

42

34

38

47






Tyler Bell


Factual
























Ryan Bonifacino


Alex and Ani




















Jeremy Lockhorn


Razorfish
































of respondents



50

58


50

42


47

73


39


23

30

Other6

9

2013 2014


of respondents



38

In-house network39

44


44


44


44


25


34

2013 2014















Search ad spending

$1282

$1285

$2566

Display ad spending

$1238

$1467

$2705

Desktop Mobile



Gen Z (ages 18-24) 36


Gen X (ages 35-44) 36




Total 33









of respondents


Strongly agree14

Agree45

Neutral30

Disagree8

Strongly disagree3


of respondents


Region

Asia-Pacific

North America


Company revenue

$500-$999 million

$1-$49 billion

$5-$99 billion

$10+ billion

Worldwide



Demographics

Purchase data

Social data

Search data

86

76

61

78

77

86

54

75

72

69

74

72

63

74

75

71

84

63

53

75

56

69

48

66

69

54

42

59

46

54

56

55

64

40

42

55

42

34

38

47






Tyler Bell


Factual
























Ryan Bonifacino


Alex and Ani




















Jeremy Lockhorn


Razorfish




































Search ad spending

$1282

$1285

$2566

Display ad spending

$1238

$1467

$2705

Desktop Mobile



Gen Z (ages 18-24) 36


Gen X (ages 35-44) 36




Total 33









of respondents


Strongly agree14

Agree45

Neutral30

Disagree8

Strongly disagree3


of respondents


Region

Asia-Pacific

North America


Company revenue

$500-$999 million

$1-$49 billion

$5-$99 billion

$10+ billion

Worldwide



Demographics

Purchase data

Social data

Search data

86

76

61

78

77

86

54

75

72

69

74

72

63

74

75

71

84

63

53

75

56

69

48

66

69

54

42

59

46

54

56

55

64

40

42

55

42

34

38

47






Tyler Bell


Factual
























Ryan Bonifacino


Alex and Ani




















Jeremy Lockhorn


Razorfish






























of respondents


Strongly agree14

Agree45

Neutral30

Disagree8

Strongly disagree3


of respondents


Region

Asia-Pacific

North America


Company revenue

$500-$999 million

$1-$49 billion

$5-$99 billion

$10+ billion

Worldwide



Demographics

Purchase data

Social data

Search data

86

76

61

78

77

86

54

75

72

69

74

72

63

74

75

71

84

63

53

75

56

69

48

66

69

54

42

59

46

54

56

55

64

40

42

55

42

34

38

47






Tyler Bell


Factual
























Ryan Bonifacino


Alex and Ani




















Jeremy Lockhorn


Razorfish




























Tyler Bell


Factual
























Ryan Bonifacino


Alex and Ani




















Jeremy Lockhorn


Razorfish






































Ryan Bonifacino


Alex and Ani




















Jeremy Lockhorn


Razorfish

























Ryan Bonifacino


Alex and Ani




















Jeremy Lockhorn


Razorfish

























Jeremy Lockhorn


Razorfish






































Documents

AUDIENCE TARGETING ROUNDUP