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FindingYourTrueAudienceTargetingtheRightCustomerattheRightTimewiththeRightMedia

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Anonlineusersseesmorethan1,800adsperday,whichisanincreaseofmorethan250%since2004.

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http://emagine‐group.com ExperienceFocused,SociallyActive,DigitallyEnabled

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Howoftendoyouusetheinternettoresearchbeforeyoupurchase?

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Whichtypeofadsinfluenceyoumoreasapotentialbuyer?

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9NeedtoKnows  Revenuesarestillrelevant

– Collectinformationaboutcustomerstoestablishhowmuchcashmoneytheybringtoyourtable

  Happinessiscontagious– Focusonhappycustomers

  PricesensitivityisNOTagoodthing– Don’tmakeyourmarketpositionaboutprice– WhenMickeyDrexlertookoveraCEOofJCrew,hewaslookingforcustomerswillingtopaymoreforwell‐madeclothingandincreasedrevenue170%inthefirst5years

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9NeedtoKnows  Thebiggertheproblemsthebetter

– Thebiggertheproblemyourbrandcansolve,thebiggerthemarketresponse

–  Intheearlydaysoftheinternet,AOLwentafterpeopleinterestedingettingonlinebutnotwillingtodoitalone

– Asaresult,30millionpeoplesignedupandtheybecame4thonthelistofeventsthatshapedthefirst25yearsoftheweb

  Beonthelookoutforsomethingnew–  Introducingnewproductsandservicescangenerateorganicgrowthcompaniescrave

– Focusonyourcustomersthataremostinterestedinnewinnovationsfromyourbrandtogeneratebottomlinegrowth

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9NeedtoKnows  Outthereadvocatingforyourbrand

– Thegreaterthelevelofinfluenceabuyerhasamongtheirsocialnetworksandwordofmouthmarketing,themoreabrand’smarketingROIwillbenefit

  Ahubwithlotsofspokes– Themoreactiveandengagedacustomeriswithdifferentsocialmedia,themorevaluabletheycanbetoyourbrand

– FordMotorCo.pickedout100twenty‐somethingYouTubestorytellerswho’ddevelopedafancommunityoftheirownandgavethemaFiestafor6months

– EachmonththeysharetheirexperienceswiththeircommunitiesviaYouTube,Facebook,twitterandFlickr

– Fordreceived50,000requestsforinformationandsold10,000unitsinthefirst6daysofsales

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9NeedtoKnows  Distinctiveneedsandwants

– Themoresimilarandpredictableatargetgroup’sneedsandwants,theeasieritistodevelopcompellingpositioningandmessaging

  Meaningfultotraditionalanddigitaldecisionmakers– Getasenseofhowhigh‐valuecustomersusetraditional,digitalandsocialmediacommunicationsthroughoutthepre‐andpost‐purchaseprocess

– Understandhowtheliketointeractwithabrandwithindifferentcommunicationschannels

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WhatIsEquity?BuildingCustomerEquity

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WhatisCustomerEquity?  Afirmisonlyasgoodasitscustomersthinkitwillbethenext

timetheydobusinesswiththem  CustomerEquityismadeupof3parts

– ValueEquity–acustomer’sobjectiveevaluationofthebrand’soffering

– BrandEquity–acustomer’ssubjectiveviewofthebrandanditsofferings

– RetentionEquity–acustomer’sviewofthestrengthoftherelationshipbetweenthemandthebrand

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ValueEquity  Acustomer’sobjectiveassessmentoftheutilityofabrand

basedonperceptionsofwhatisgivenupforwhatisreceived  Whatdrivesvalueequityforthecustomer?

– Quality–Whatisthevalueofthebrandofferings?– Price–Howattractiveistheprice?– Convenience–Howeasyisittodobusinesswiththebrand?

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BrandEquity  Thecustomer’ssubjectiveandintangibleassessmentofthe

intangible,aboveandbeyonditsobjectivelyperceivedvalue– Thisisdeterminedbythebrand’smarketingstrategy,tacticsandinfluenceoverthecustomerthroughlifeexperiencesandassociationswiththebrand

  Whatdrivesbrandequity?– Buildingawarenessandattractivecustomers– Buildingemotionalconnectionswithcustomers– Remindscustomerstorepurchase

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RetentionEquity  Thetendencyofthecustomertostickwithabrandaboveand

beyondthecustomer’sobjectiveandsubjectiveassessmentsofthebrand– Focusesontherelationshipbetweenthecustomerandbrand,basedonactionstakenbythebrandandthecustomertoestablish,buildandmaintainarelationship

  Whatdrivesretentionequity?– Loyaltyprograms(frequentpurchases/rewardsprograms)– Specialrecognitionandtreatmentprograms– Affinity(emotionalconnectionprograms)– Communityprograms– Knowledge‐buildingprograms(workshopsandseminars)

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Audiencetargetingcanidentifythebestconsumersforaspecificadorcampaignandcanbeusedtoeffectivelyreachsales,acquisitionandbrandinggoals.

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http://emagine‐group.com ExperienceFocused,SociallyActive,DigitallyEnabled

http://emagine‐group.com ExperienceFocused,SociallyActive,DigitallyEnabled

http://emagine‐group.com ExperienceFocused,SociallyActive,DigitallyEnabled

TheIngredientsofTargeting Whatarepeoplelookingfor

– SearchEngineinformation Interests

– Contentofarticlesviewed WhereTheyGo

– Pages,Sections,Sites WhatTheySayAboutThemselves

– Incomeranges,Gender,City ToolsTheyUse

– Calculators,Configurations,Comparisons

 OfflineData– Transactional,Affinity,Psychographics

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BehavioralTargeting:Theprocessofidentifyingpatternsofuserinteractions,andincorporatingthemintotheaddeliverydecision

Targeting:Theprocessofidentifyingsegmentsofsimilarusers,andincorporatingthemintotheaddeliverydecision

Interaction Recency Frequency

AudienceTargeting

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WhatisBehavioralTargeting?  Amethodusedbyonlineadvertiserstoincreasethe

effectivenessofacampaign  Usesinformationcollectedaboutanindividual’sweb

browsingbehaviortoselecttheadvertisementstodisplaytothatindividual

  Allowsforthedisplayingofadsthataremorerelevanttotheinterestsoftheindividualviewingaparticularpage

  Becauseofthis,itisbelievedthatthistypeoftargetinghelpsadvertisersdelivertheirmessagestotheindividualsmostlikelytobeinfluencedbythem

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HowBehavioralTargetingWorks

Tag Segmentation BehavioralTargeting

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WhyDoesItWork?  Reachandidentifyqualifiedaudiencesbasedontheir

behaviors,interestsandhabits  Targetrelevantadstoengagedconsumersthroughouttheir

purchasingcycle  Improveonlineadvertisingperformance,reducewasteand

increaseROI

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Atemagine,weworkwith2internationallyrespectedfirmsforaudiencesegmentation.

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VisualDNA

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TheVisualDNACustomerProfile

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AudienceScience

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TheAudienceScienceCustomerProfile

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UnderstandingMarketSegmentationLearningHowtoBreakDownYourCustomer’sIntoGroups

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Marketsegmentationistheprocessthatcompaniesusetodividelargemarketsintosmallmarketsthatcanbereachedmoreefficientlyandeffectivelywithproductsandservicesthatmatchtheiruniqueneeds

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MarketSegmentation

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MarketSegmentation

Geographicsegmentation

Demographicsegmentation

Psychographicsegmentation

Behavioralsegmentation

Dividesthemarketintodifferentgeographicalunitssuchasnations,regions,states,counties,orcities

Dividesthemarketintogroupsbasedon

variablessuchasage,gender,family

size,income,occupationand

education

Dividesbuyersintogroupsbasedontheirknowledge,attitudes,uses,or

responsestoaproduct

Dividesbuyersintodifferentgroupsbasedonsocialclass,lifestyle,orpersonalitytraits

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HowDoWeMarketToTheseSegments?

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MarketingSegmentation

100%ofvisitors 100%ofvisitors

1segment=all 16segments=all

All Newvs.Returning

4KeyProducts

8MajorMarkets

16VisitorPersonas

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MarketTargeting

UndifferentiatedMarketing

DifferentiatedMarketing

ConcentratedMarketing

MicroMarketing

Mass Segmented Niche Local/Individual

Targetsthewholemarketwithoneoffer

Massmarketing

Focusesoncommonneedsratherthanwhat’sdifferent

Targetsseveraldifferentmarketsegmentsanddesignsseparateoffersforeachtoachievehighersalesandstrongerposition

Targetsasmallshareofalargemarket

Limitedcompanyresources

Knowledgeofthemarket

Moreeffectiveandefficient

Practiceoftailoringproductsandmarketingprogramstosuitthetastesofspecificindividualsandlocations

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Viewcontent

Viewproductinformation

Viewad

Clickonad

Purchasesomething

Searchforsomething

Attendanevent

Provideinformationaboutthemselves

Interest

Life‐stage

Lifestyle

Intent

Behavior

Demography

MappingourDatatoSellableSegments

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Interest

Life‐stage

Lifestyle

Intent

Behavior

Demography

ActiveTravelers

Affluents

MappingourDatatoSellableSegments

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UnderstandingHowTargetingWorks

SegmentTestingGeneralTesting Targeting ProfileTargeting

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Price

Volume

DirectSales

Fillbyadnetworks

ResultsfromMassMarketing

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Fillbyadnetworks

Price

Volume

DirectSales

NewRevenueAudience‐basedselling

ResultsfromMarketSegmentation

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Price

Volume

DirectSales

Fillbyadnetworks

NewRevenue

Audience‐basedselling

ResultsfromAudienceTargeting

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KnowYourCustomerTypes

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TheResistantCustomer Mindset:Hatesyourcompanyandholdsdeepresentmentforyourbrand

 Behavior:– Willspreadnegativewordofmouthwhereverpossible

– Tooktheirexperiencewithyourbrandpersonallyandislookingforrevenge

– Willdefecttoyourcompetitorfirstchancetheyget

 Loyalty:Zero PossibilityofDefection:ExtremelyHigh(youcan’tsavethisgroup)

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http://emagine‐group.com ExperienceFocused,SociallyActive,DigitallyEnabled

TheIndifferentCustomer Mindset:Seesyourcompany/product/serviceasnothingmorethanacommodity

 Behavior– Willalwaystrytogetlowerpricestothepointofnearzeromargin

– Theywillpromisevolumeorfuturebusiness,butseelittleuniquevalueinyouroffering

– Alwayswillingtowalkawayfromthesalebecausetheyhaveotheroptionsavailable

 Loyalty:One PossibilityforDefection:VeryHigh

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http://emagine‐group.com ExperienceFocused,SociallyActive,DigitallyEnabled

TheAcceptantCustomer Mindset:Expectsyourcustomertoprovidethemaximumofwhat’saskedandnothingmore

 Behavior:– Doesn’tthinkofyourbranduntilabsolutelynecessary

– Comestoyoubecauseyouhavebecomeahabitormoreconvenientchoice

– Maybeawareofother,betteroptions,butsimplyhasn’tmadetheefforttopursuethem

 Loyalty:Two PossibilityforDefection:High

– Customerexpectationscanoutpacewhatyouprovide

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http://emagine‐group.com ExperienceFocused,SociallyActive,DigitallyEnabled

ThePreferentialCustomer Mindset:Hasgrowntolikeyourbrandandtendstounderstandtheuniquevaluethatyouprovide

 Behavior:– Mostofusmakethemistakeofmakingthiscustomertypethetopofourcustomerpyramid

– Whengivenachoice,theywillprobablycontinuetouseyourbrand

– Veryawareofindustrytrendsandcansurprisebydefectingifyouhavenotgiventhembenefitsorraisedthebaronserviceorinnovation

 Loyalty:Three PossibilityforDefection:SomewhatHigh

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TheEvangelist Mindset:Thepinnacleofthecustomerrelationshipandwouldbuyanythingyouoffer

 Behavior:– Theytelleveryonetheyknowaboutyourcompany

– Mentionshowsatisfiedtheyareevenincasualconversations

– Yourbrandhasbecomepartoftheirlife

– Findspersonalmeaningwithyourbrand

– Worththeirweightingoldbecausetheydomoretogrowyourbusinessthananyadcampaign

 Loyalty:Four PossibilityforDefection:None

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CalculatingCustomerLifetimeValueWhatisacustomerworth?

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CustomerLifetimeValue?  CustomerLifetimeValue(CLV)ishowwedeterminewhata

customer/clientisworthoverthelifetimeoftheirrelationshipwiththebrand

  Thisisdifficulttocalculateforconsumergoods,butveryeasyforservicebasedandfinancialservicesbrands

  Whatwearelookingtounderstandiswhichcustomersareworthkeepingasclientsandwhichshouldbeletgotoincreaseprofitability

  Thismayseemlikeadirtywaytodeterminehowmuchworkyoudotomaintainclientrelationshipsbutitisarequirement

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http://emagine‐group.com ExperienceFocused,SociallyActive,DigitallyEnabled

NewCustomerValuation