platform data - merkle data- general...• real-time scoring models incorporate consumer segment...
TRANSCRIPT
© 2014 Merkle Inc. | Confidential 1
PLATFORM DATA
© 2014 Merkle Inc. | Confidential 2
The emerging opportunity in Addressability At Scale (AAS) is the key driver of competitive advantage in the age of the customer
AAS 1.0 Name & Address
AAS 4.0 Cookie & Device ID
1990 2014
AAS 3.0 Email Address
AAS 2.0 Phone #
© 2014 Merkle Inc. | Confidential 3
Amidst all of this scale and automation, the addressability of channels and media is increasing every day
The Addressability Spectrum
© 2014 Merkle Inc. | Confidential 4
Addressability is reaching new levels of sophistication and scale due to the rise of the Addressable Audience Platform
© 2014 Merkle Inc. | Confidential 5
Throughout the next two days we will walk you through the 9 core competencies of the Platform Marketer organized in three key areas
Consumer Privacy
Audience Management
Identity Management
Media Optimization
Channel Optimization
Experience Design & Creation
Platforms Utilization
Measurement & Attribution
Marketing Technology
Platform Data
Platform Execution
Platform Enablers
© 2014 Merkle Inc. | Confidential 6
In this morning’s session we will kick-off with Platform Data
Platform Data encompasses the competencies required to bring a comprehensive view of today’s highly digital, mobile, and social consumer in a way that is most useful for marketing purposes
Consumer Privacy
Audience Management
Identity Management
Platform Data
Platform Execution
Platform Enablers
© 2014 Merkle Inc. | Confidential 7
247 billion e-mail messages are
sent each day
29.8 billion ads served by Google
each day
30 billion pieces of content shared on Facebook every day
400,000 bid requests per second
processed on the AppNexus ad platform
Merkle alone manages over 3.7 billion 1st party
customer records…
…Which amounts to over 3 petabytes of usable
marketing data growing at over 10TB/month…
…informing over $10 billion dollars in marketing
decisions per year for big marketers
Before I go on, what data are we talking about anyway?
Which translates to over 360 million search bid
decisions per year
And 96 billion real-time digital media bid decisions which result in over 10 billion
impressions served/year
…and 1.7 billion email targeting decisions per
year
© 2014 Merkle Inc. | Confidential 8
Where’s all the data coming from and why is it proliferating so fast? Let’s start with social…
© 2014 Merkle Inc. | Confidential 9
As well as mobility and multi-screen
Source: Milward Brown AdReaction, 2014. Note: Survey asked respondents ‘Roughly how long did you spend yesterday… watching television (not online) / using the internet on a laptop or PC / on a smartphone or tablet?’ Survey respondents were age 16-44 across 30 countries who owned or had access to a TV and a smartphone and/or tablet. The population of the 30 countried surveyed in the study colectively represent ~70% of the world population.
Source: Nielsen Connected Devices Report, Q3, 13. Note: Data gathered from USA general population sample 13+ years old with 9,448 respondents w ho own a tablet, e-reader, smartphone, or streaming capable device. Study conducted in 9/13
Source: Meeker, Mary. “Internet Trends 2014: Code Conference.” PowerPoint presentation. http://www.kpcb.com/internet-trends
0 100 200 300 400 500 600
Daily Distribution of Screen Minutes Across Countries (Minutes)
TV
Laptop & PC
Smartphone
Tablet
0% 20% 40% 60% 80%
49% 66%
24% 44%
29% 41%
27% 29%
29% 23%
12% 18%
7% 14%
9% 12%
10% 17%
Surfing the web
Shopping
Checking sports scores
Looking up info on actors, plot, athletes, etc.
Emailing / texting friends about program
Reading discussion about TV program on social media sites
Buying a product / service being advertised
Voting or sending comments to a live program
Watching certain TV program because of something read on social media
Smartphone
Tablet
What Connected Device Owners Are Doing While Watching TV, USA
© 2014 Merkle Inc. | Confidential 10
And the consumer is getting more and more active/engaged
KPCB estimated based on publicly disclosed company data, 2014 YTD data per latest as of 5.14
Daily Number of Photos Uploaded & Shared on Select Platforms, 2005-2014 YTD
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014YTD
1,800
1,500
1,200
900
600
300
0
# of
pho
tos
uplo
aded
and
sha
red
per d
ay (M
M)
Flickr Snapchat Instagram Facebook WhatsApp (2013, 2014 only)
MyFitnessPal
IMGUR
EventBrite
Fitbit
Github
Source: Meeker, Mary. “Internet Trends 2014: Code Conference.” PowerPoint presentation. http://www.kpcb.com/internet-trends
© 2014 Merkle Inc. | Confidential 11
This is throwing off tons of content and data
2/3rds Of Digital Universe Content = Consumed / Created by Consumers… Video Watching, Social Media Usage, Image Sharing
15
12
9
6
3
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
>4ZB (+50% Y/Y)
13ZB (+40% Y/Y)
Zeta
byte
s (Z
B)
1 petabyte = 1MM gigabytes, 1 zetabyte = 1MM petabytes Source: IDC Digital Universe, data as of 5/14
Source: Meeker, Mary. “Internet Trends 2014: Code Conference.” PowerPoint presentation. http://www.kpcb.com/internet-trends
© 2014 Merkle Inc. | Confidential 12
Which gets advertisers excited and drives spend…
© 2014 Merkle Inc. | Confidential 13
Programmatic media has already taken over 50% of transactions (35% of spend) in the US digital media market with RTB the fastest growing area
RTB
Non-RTB
Non-Programmatic
Source: Magna Global
Overall Digital Media Marketplace - $61B by 2017
$8B in RTB media by 2017 growing at 59% CAGR
$8B in “Custom Audience” by 2017
Over half of all digital media today is bought programmatically
76% 62%
47% 36%
27% 21% 17%
13% 18%
25% 29%
32% 32%
31%
11% 19% 28% 34% 41% 47% 52%
100%
80%
60%
40%
20%
0%
US: Programmatic Share (% of Digital media transactions)
2011 2012 2013 2014 2015 2016 2017
Especially where they can use data in places like “programmatic”
© 2014 Merkle Inc. | Confidential 14
Which of course is starting to generate real incremental growth and profitability for the marketers most aggressively pursuing the opportunity
Auto insurer increased digital media performance in acquisition
Top 3 Credit Card Issuer optimized paid search spend in new card account acquisition
Consumer Electronics increased conversion and sales volume through its site and call center
• Anonymous media impressions with offline view of converted customers (segmentation, value, product) What data are
we using?
• Anonymous and identified user data including shopping cart and browsing with offline value segments
• Consumer credit segments are being connected to specific keyword combinations to drive targeting
• Developing “look alike” models on converted customers to be applied to anonymous prospects
How are we optimizing?
• Real-time scoring models incorporate consumer segment data with in-session behaviors to predict optimal offer and content personalization
• Predictive models are optimizing bidding on specific key words based on their correlation with specific segments
• Decreased CPA 68% while increasing conversions 80% Value
Generated
• 28% conversion rate improvement resulting in $200M annual revenue impact
• Incremental 7000 new card accounts or $50MM in LTV per month
DM &EM Site Product LTV Segment
Demographics Product LTV Segment
Demographics Search Product LTV Segment
Display Social
© 2014 Merkle Inc. | Confidential 15
At the core of all of this opportunity is the Connected Consumer View
The 4C’s of Consumer Data • Comprehensive – brings together complete
view of the customer across all relationship dimensions and channels
• Clean – based the most accurate customer record that has been linked across disparate IDs, householded, hygiened, and matched on an ongoing basis
• Compliant – created, stored, and utilized based on a comprehensive view of the latest consumer privacy legislation and guidelines
• Connected – managed in highly usable audience segments and made available in real-time (where needed) to all media and channels for execution
Search
Social Print
DM &EM
Display
TV/Video
Mobile
Site
Product
LTV Segment
Demographics Life Events
Call center
Meetings
© 2014 Merkle Inc. | Confidential 16
Sounds great right? Yeah well, there are a few little challenges
• Bringing together a singular consumer view in a world with data and identity silos too numerous to mention
• Making that view available to drive decisioning and execution across an incredibly complex web of adtech and audience platforms
• Allowing perfect to be the enemy of good is the tendency (especially in digital)
• Doing all of this in a way that maintains the confidence of the consumer and is compliant with numerous legal and regulatory entities
• And every time you think might have this nailed…it changes…fast
© 2014 Merkle Inc. | Confidential 17
Identity Management
The management and association of identity attributes across all channels and media. The creation of a longitudinal view of the experience a consumer has with a brand (the consumer event stream).
Consumer Privacy
Audience Management
Identity Management
Platform Data
Platform Execution
Platform Enablers
© 2014 Merkle Inc. | Confidential 18
The Identity Map creates a singular master ID out of numerous channel and media specific IDs across devices
Alias: MarketableDig
Handle: @MarketableTom
Name: Tom Malthus IP: 192.168.1.201
Address: 1001 Semblance Dr. Cookie: 49526F636B
DOB: 10.03.1965 Phone: 443.542.4000
© 2014 Merkle Inc. | Confidential 19
The Consumer Event Stream pivots off the Identity Map to create the longitudinal view of all interactions with that individual
User ID Date Time Event ID Event Desc
1234 2/1/2012 DM437 DM Delivered
1234 2/2/2012 3:05 pm DI9076 Display Impression
1234 2/2/2012 3:06 pm CC068 Inbound Call Center
1234 2/2/2012 5:05 pm EM087 Sent Email
1234 2/2/2012 9:30 pm EM088 Opened Email
1234 2/2/2012 9:30 pm EM089 Clicked Email
1234 2/6/2012 9:00 pm PS674 Clicks Paid Search
1234 2/6/2012 9:15 pm Q8740 Completes Quote
Consumer Event Table
Event Meta Data
Event ID EM088
Creative A2346 Insurance you can count on
Offer OI92365 $14/Mth for $25K Coverage
Product P978 Term Life
DM Delivered 2/1/2012
Shown Display Ad 2/2/12 3:05pm
Calls 800# Requests Info and gives email 2/2/12 3:06 pm
Clicks Branded Paid Search Ad 2/6/12 9:00 pm
Sent Email 2/2/12 5:05pm Opens Email 2/2/12 9:30 pm
Completes quote request on site 2/6/212 9:15 pm
© 2014 Merkle Inc. | Confidential 20
Probably obvious: this is a pretty big challenge
Messy cookies
Constantly evolving platforms and IDs
Third party cookies are dying
Matching reference bases are evolving
Multiple levels of IDs and identification confidence
And, needs to be real time
© 2014 Merkle Inc. | Confidential 21
The very notion of the consumer ID has been transformed over the past 5 years
KLID, Abilitec
Cookie Mailing address Twitter ID
Cross Device ID FBID ADID IDFA cRID
AT&TID
70’s 80’s 90’s Today/Tomorrow
12 Main Street Philadelphia, PA
Email Phone number
00’s
617-555-0728
12 Main Street Philadelphia, PA 617-555-0728
12 Main Street Philadelphia, PA
617-555-0728
12 Main Street Philadelphia, PA
#JohnnyDoe
011001000100110001 //asdohs.hhd.net 617-555-0728
12 Main Street Philadelphia, PA
#JohnnyDoe
011001000100110001
//asdohs.hhd.net
Pinterest: jdoe
JD’s iphone
011001000100110001
011001000100110001
//asdohsd.asiudhscns/html
And some of the very audience platforms that are delivering AAS are, in fact, going to be a part of this challenge
Audience Platform
already at scale on network
Soon we will see audience extension off network at
massive scale Third Party Inventory
(exchange, ad network, etc.)
But access to this scale will be enabled in “walled gardens” where each player will want advertisers to use a proprietary ID – great within one network…but what about the advertiser’s single
view of the customer?
Facebook ID AdID Twitter ID
Marketer 1st Party ID
Numerous disparate 3rd
party IDs
© 2014 Merkle Inc. | Confidential 23
The change in consumer behaviors and consumption has forced a change in the notion of Identity Management
Time spent in mobile apps surpassed time spent on desktop in January 2014
Cross device is the norm with the average
American owning 4 devices
Source: Comscore & eMarketer
Hey what do you say we open some wine and
talk mobile DSPs
I wonder if dumping her on
facebook is considered
passe
The Platform Marketer at home
© 2014 Merkle Inc. | Confidential 24
Ultimately what we need to stitch together is an “identity graph” at the first party level across physical and digital IDs spanning multiple devices
Device Identity
Digital Identity
Terrestrial Identity
© 2014 Merkle Inc. | Confidential 25
All of this enabled by a purpose built Identity Management Engine
Onboarding
Finds CRM audiences in the digital world
Consumer Data Integration
Terrestrial Identity
Associations
Identify Governance
Reference Base
Digital Data Integration
Device/Digital Identity
Associations
Identify Governance
Reference Base
Cross Device
Device graphs to associate cross-device events
Device Identification
Probabilistic device identification engine to recognize
device reoccurrence
Deterministic identity rules engine to manage identity
associations
© 2014 Merkle Inc. | Confidential 26
Which sits at the base of an integrated marketing technology stack
Audience Platforms
Wor
kflo
w
Channel Execution Media Execution
Marketing Database
Identity Management
Analytics
Integration
DMP Decision Management
DSP Search Ad Serving Site SFA/Contact Center
Business Rules Engine Personalization Engine Decisioning
Algorithms
Audience Management
RT Data Transfer Syndication
Connected Attribution Forecasting/Simulati
on Business Intelligence
Onboarding CDI/DDI Event Management
Customer 360° Preference Center Event Stream
Cam
paig
n M
anag
emen
t C
onte
nt
Man
agem
ent
MR
M
Messaging Mobile
Web Services APIs Tag
Management
Wor
kflo
w
Channel Execution Media Execution
Marketing Database
Identity Management
Analytics
Integration
DMP Decision Management
Audience Platforms
DSP Search Ad Serving Site SFA/Contact Center
Business Rules Engine
Personalization Engine
Decisioning Algorithms
Audience Management
Real-Time Data Transfer
Syndication
Connected Attribution
Forecasting/Simulation
Business Intelligence
Onboarding CDI/DDI Event Management
Customer 360° Preference Center Event Stream
Cam
paig
n M
anag
emen
t C
onte
nt M
anag
emen
t M
RM
Messaging Mobile
Web Services APIs Tag Management
© 2014 Merkle Inc. | Confidential 27
Audience Management
Audience management is the discipline of identifying, sizing, and tracking individual engagement with the purpose of driving higher customer value
Consumer Privacy
Audience Management
Identity Management
Platform Data
Platform Execution
Platform Enablers
© 2014 Merkle Inc. | Confidential 28
Audience Management is the bridge between identity management and media and channel optimization
Personalization
Device
Offer
Treatment
Message,
Product
Time
Contact Strategy
Behavioral Triggers
Models Segmentation
Identity Management
Audience Management
Media or Channel Optimization
© 2014 Merkle Inc. | Confidential 29
Movers & Shakers
Family Matters
Mature Planners Passives Loners
Very Rich Actionable Primary Research • View of US • Attitudes, Behaviors,
Psychographics • Brand Relationships, and Sentiment
Mapping • Tie to each individuals in US • Demographics • Customer Behaviors • Syndicated Data
% Makeup of United States
34% (50% interested in LI)
22% (60% interested in LI)
27% (41% interested in LI)
10% (41% interested in LI)
7% (24% interested in LI)
Demographics Younger Upper-mid income
Skews male
Young, middle age Mid income
Mostly female
Mature Upper income Skews male
Middle age Mid income
Mostly female
Mature Lower-mid income Male and female
Attitudes • Early adopters, technical
• Driven, risk taker
• Price sensitive
• Use social media, but not otherwise technical
• Don’t know where to begin
• Price sensitive
• Recognize value of insurance
• Confident about financial matters
• Least price sensitive
• Late adopters
• Risk averse
• Not primary decision makers
• Not thinking about LI
• Use social media
• Mistrustful of financial institutions
• Least interest in LI
Audience management begins with a rich, actionable enterprise level segmentation of the prospect and customer marketplace
© 2014 Merkle Inc. | Confidential 30
However, the divide between segmentation, segment strategies, and actual decision making and execution has to be closed down
Media Execution (SEM, DSP, etc)
Content Management
Call Center
Segmentation & Customer Strategy
Financial Management
Marketing Execution
Behavioral Segment
Value Segment
Attribution
Budgeting/ Planning
© 2014 Merkle Inc. | Confidential 31
The Platform Marketer leverages the capabilities in the DMP to monetize audiences in digital media and experience personalization
DMP Toolset
Data Inputs Outputs/Action
Visualization
Audience Mgmt
Syndication
1st Party PII
1st Party Anonymous
3rd Party
• Conversion events • Behavioral data • IP data • CRM data (offline & online)
• Search data • Mobile data • Email data • Connected and addressable TV data
• Demographic, behavioral and purchase offline & online data from data vendors (BlueKai, Execelate, etc.)
Reporting and Insights
Media Optimization
Syndication
• Media & site performance • Audience insights
• Real-time bidding • Creative decisioning • Landing page optimization
• Syndicate audiences to DSPs and Site Personalization
© 2014 Merkle Inc. | Confidential 32
Consumer Privacy
Audience Management
Identity Management
Platform Data
Platform Execution
Platform Enablers
Consumer Privacy and Compliance
Consumer Privacy: Finding balance between business needs and privacy expectations
© 2014 Merkle Inc. | Confidential 33
All of this data creates a lot of opportunity for brands but obviously also creates angst both real and perceived
59% saying that concern has
risen in the last 12 months 48% avoiding at least one type of online service/platform
Consumer Data 64%
express concern about websites tracking their
behavior
87% Believe adequate safeguards are
not in place to protect their personal information
70% respondents believe businesses aren’t transparent about how their information is used, 68% say there is not enough
transparency around what is being done with their information
© 2014 Merkle Inc. | Confidential 34
The Platform Marketer is able to navigate the complex, evolving web of internet advertising guidelines and regulatory compliance as well as consumer perception
Consumer Financial Protection Bureau
State Privacy
Policy Laws
CAN- SPAM
COPPA
GLB
FCRA
Federal Trade Commission
© 2014 Merkle Inc. | Confidential 35
So in summary…
• Platform data is about the 4Cs (comprehensive, clean, compliant, connected)
• Perfect is the enemy of good
• ID management sets you up for Audience Management and execution
• Privacy is an exercise in an integrated view of industry, guidelines, and consumer expectations
• Be ready for this to keep changing faster than you can keep up…
© 2014 Merkle Inc. | Confidential 36
Platform Data Breakout Sessions
Identity Management – Miramar II/III
Craig Shirk, Matt Mobley
Audience Management – Ballroom
Rick Heffernan, Peter Vandre
Consumer Privacy & Compliance – Miramar I
Bennie Smith
© 2014 Merkle Inc. | Confidential 37
Thank You!