Building Audience InsightsThe Data Value Pyramid

Presented by Marc RossenDirector of Media Strategy and Analytics, [x+1]

February 8, 2011

Before we start:Before we start:

System requirementsSystem requirements

Please press Please press *6*6 to mute your to mute your phonesphones

If you use this OS You can use these browsers

Windows XP SP2 Internet Explorer 8, 7 or 6 SP2

Windows Vista Internet Explorer 8 or 7, Firefox 3.5.7, Firefox 3.0.6, Safari 4.0.4, Safari 3.2.2

Mac OS X v10.5.8 Safari 4.0.4

Full system requirements available at http://office.microsoft.com/en-us/live-meeting/microsoft-off

Marc Rossen [x+1] Director of Media Strategy & Analytics

Marc Rossen is a marketing and business innovations strategy expert with more than a decade of experience helping companies innovate in digital marketing and analytics. At [x+1], he overseas thought leadership and innovation for agency and enterprise client relationships focused on audience insights and branding analytics in media. His work helps [x+1] clients transform the influx of data in digital marketing into actionable marketing gains.

Before joining [x+1] in 2010, Marc served as Digital Analytics Lead for the Procter & Gamble account at digital agency MediaVest. He also has worked at Publicis Groupe agencies VivaKi and Digitas on web-based analytic solutions, strategy and analytics for major brands in consumer products, automotive and financial services verticals. He started his career working on supply chain, growth and innovation issues for Staples.

3

Webinar #1:Webinar #1:

The Data Value PyramidThe Data Value Pyramid

Using data to effectively build insights is challenging, but has

huge payoffsMy goal today is help you understand how to use data effectively to gain actionable insights

The news is, almost daily, flooded with articles on data and the effects is has on business and our personal lives

With this data influx a problem arises of how to narrow down your data set to drive insights for your business

•What data is useful?•How do I simplify the data I have to gain insight?•How do a paint a picture of my audience?

5

Our Agenda TodayOur Agenda Today

Understanding the value of data and building a value framework that leads to actionable business results

•Actionable data•The role of context

•Findings •Insight •Action

Use our new framework to build an effective audience analysis

•An approach to building audience insights•Looking at the detail to derive tactical value

Agenda

Webinar #2

7

Where are we today?Where are we today?

We are still looking at data in a silos

If organizations are silo’ed, data is probably silo’ed•In today’s environment most people are looking at data in a silo without bringing multiple data points together to create a picture

Context is king•Therefore we are still struggling with deriving actionable data as we have context for the univariate data points we are looking at

9

The Broader Context

Data without Context…

10

…Is like looking at one corner of a painting

Puzzle Piece

How do we paint a picture of our audience?

At [x+1], we start with two core beliefs:

1.Gather all the facts together to identify the cause

2.Any one fact alone can drive you down the wrong path

11

1. With all the facts together we can identify the cause2. Any one fact alone can drive you down the wrong path

How do we paint a picture of our audience?

12

Metric Tool Set

Frequency was up 2x for

the week

Spend was up 2x

September 10

Los Angeles

No creative changes

Google Adx 2.0

Data without context

• Frequency• Spend• Exchange• Date• Geo• Day of Week• Etc…

The same applies true to us

How do we identify performance changes?To often one data point is chosen as the cause, however there is not context in place

13

What happened?

Building a framework:Building a framework:

The Data Value The Data Value PyramidPyramid

Building a value framework is imperative to build insights that lead

to action

Actionable Data

Finding

Insight

Action

Most organizations

are here

15

Organizations are running before walking

Most organizations look at a few data points and jump all the way to insight, take some action, and realize after some time performance has not changed. Why is this?

The [x+1] insight: Develop a roadmap that allows you to slow down and ask….do I have all the facts (e.g., data points) ?

16

By using a value framework you are forced to walk then run. In other words, you now have an analytic framework to asses your

data and determine if you have can paint an accurate picture

A simplified example of the framework

The [x+1] insight: Insights come from actionable data.

17

Actionable Data Finding Insight Action

RON CPA = $10RMKT CPA = $5

RMKT performed 2x better than RON

RMKT is more productive marketing tactic

Invest more $ into RMKT to drive campaign efficiency

Step One – Actionable Data

First, do not get overwhelmed by how much data you have!Next, take stock of all the data you have available and make a list

18

What happened on 12/7-12/8?

1. With all the facts together we can identify the cause2. Any one fact alone can drive you down the wrong path

How do we paint a picture of our audience?

19

Metric Tool Set

Frequency was flat

Spend was up 2x

December 7-8

CPM was flat

No creative changes

CPA down 2x

Data without context

• Frequency• Spend• Exchange• Date• Geo• Day of Week• Etc…

Step two - Findings

Once our data set is narrowed to what happened we can dig into univariates to derive findings that bring context

In our example its clear the data is telling us that our Google exchange inventory more than doubled and that this was caused by a large campaign ending

20

Step Three – Insights that drive action

By taking stock of your findings you can derive actionable insights

21

Finding Insight Action

Campaign had no operational issues (no pixel/creative issues)

Outside factors effected the campaign

No action needs to be taken as the increase in CPA was actually still within client constraints'. Due to lower spend CPA was already well below goal this room was still available to increase CPA while increasing reach.

Spend more than doubled while performance metrics dropped significantly

Spend caps were not hit despite spend doubling due to supply constraints

Exchange based inventory was effected for all exchanges

Supply constraints were prevalent for all exchanges

The value of a framework

Without a framework it’s common the following findings, Insights, and Actions would have taken hold

•Campaign frequency, spend, and/or inventory sourcing would have been optimized

•Unnecessary time spent diagnosing an issue that was not an issue

22

By using a value framework you are forced to walk then run. By running in this case, nothing needed to be done as campaign CPA

was still below goal!

Building Audience InsightsBuilding Audience Insights

Putting our framework in action

Taking a step back, we now understand:

•The value of using multiple data points for context

•How we build a value framework to derive insights that lead to action to improve performance

We are now ready to put our framework into action to build audience insights

24

Step one entails building our base set of actionable data

Actionable Data

Finding

Insight

Action

25

Audience insights are built by defining what makes your

customers stand out

What we are left with is defining characteristics that can paint a picture of who your customers are

26

Your Customers

The Internet Audience

These characteristics allow us to understand why performance trended the way it did and how it can be

repeated

Our CPA trend continually declined throughout the campaign as we optimized based on audience insights

27Source: DFP

AudienceOptimization

Audience Optimization

DMA

We then find audience characteristics that best describe your best customers

We find actionable data by isolating the attributes that drive

performance

28

Attribute Tool Set

Income Class

Income Producing Assets (IPA)

US Region

Ideal customers defined by:•GeoData•Internet connection speed•Internet browser•Computer Operating System•Income Producing Assets•Income Class•Social Life Stages•Presence of Children•Home Owner•Gender

By aggregating data into multiple points we bring performance into

context

We use multiple characteristics to define individual groups of your customers as each segment represents a different affinity to your product

29

People who live in Massachusetts, Florida,

Georgia, South Carolina, California,

and Pennsylvania

Elite, High, and Moderate IPA

Wealthy Income Class

Audience Segments aggregate multiple

characteristics

30

The client has 36 discreet audience segments across

GEO, Income, and IPA

Audience Segment

Key Takeaways• Don’t get overwhelmed by the data you have available• Take stock of your data set• Bring context with your data by looking at all actionable

data together• Paint a picture to define the problem you are solving• Assess your findings, derive insight, and define your

actions

31

Take Stock, Assess, Derive, and Define

Register for Webinar #2:Register for Webinar #2:

The Progression to The Progression to FindingsFindings

Thursday, February 10Thursday, February 10thth