the state of behavioral targeting
DESCRIPTION
The Path to One-to-One Marketing: The State of Behavioral Targeting, Ad:tech Chicago (July 2007) http://www.ad-tech.com/chicago/presentations/TRANSCRIPT
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The Path to One-to-One Marketing: The State of Behavioral Targeting
• Tuesday, July 31, 2:30-3:30
PANELISTS:
Brent Hieggelke, VP of Strategic Marketing,
Omniture
Philippe Suchet, General Manager, Kefta/Acxiom
Digital
Geoff Atkinson, Marketing Chief of Staff,
Overstock.com
Tim Mahlman, Chief Revenue Officer,
BlueLithium
MODERATOR: Mary E. Morrison, Contributing
Editor, BtoB
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Behavioral Targeting: What is it?
• Observing customer or prospect’s online behavior and using that data to deliver relevant ads or Web site content
• Identifying data such as: Web sites and pages visited; tools used; time, length, frequency of visit
• Merging behavioral data with visitor data such as age, gender or ZIP code
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Behavioral Targeting in the news
• Google-DoubleClick
• Yahoo!-Right Media
• WPP Group-24/7 Real Media
• Microsoft-aQuantive
• AOL-Tacoda
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BlueLithium + Hyatt Hotels and Resorts
Case Study
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Hyatt Hotels and Resorts
Situation:
• Hyatt, a leading hotel and resort destination, wanted to increase visits to their resort/spas.
• Their target resort/spa visitor is a female professional with a family, looking for a quick weekend getaway, usually at the last minute.
– Different from luxury resort/spa visitors who book in advance, have longer stays and are less price sensitive.
• Behavioral Targeting was chosen to find this very specific audience segment
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Hyatt Hotels and Resorts
Audience:• Target :
1) Moms
2) Females, ages 25-54• For both groups, HHI of $150,00+ and history
of researching travel in past 30 days • Challenge:
– Locate this very specific audience, while in market for resort/spa getaway.
– Decision-making time often two weeks or less.
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Hyatt Hotels and Resorts
What we did:– Started with demographic targeting of Females 25-54
and Mom’s, with high HHI.– Overlaid AdPath Audience Targeting (“recent travel
research segment”) to create a tight focus.– Scaled the segment using Selective Inventory
Partnership (SIP).– Added AdPath Site Remarketing.– In parallel, we tested other audience segments:
• Found that Female HHI $40K+ outperformed higher HHI, added to campaign to boost performance.
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Hyatt Hotels and Resorts
Results:BlueLithium beat Hyatt’s targeted cost per customer by 74%
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Kefta Dynamic Targeting & Overstock.com Case Study
Philippe Suchet - Acxiom Digital, Kefta GM
Geoff Atkinson - Overstock.com, Marketing Chief of Staff
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Why are we talking about behavioral targeting?
• Acquisition costs rising and conversion rates decreasing
• Power switch from marketers to users: Push to pull
• Key is put customers at the center of your marketing strategy, and move from mass market to behavioral targeting
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Key learnings
• All about targeting and not just behavioral targeting
• The Google lesson: Art and Science is key to success
• Experience is far more important than the placement
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Overstock.com Case Study
• Geoff Atkinson, Marketing Chief of Staff• Issues we faced:
– Difficulty in fully realizing customer lifetime value:
• Complexity of matching customers to constantly changing offers
• Difficulty in creating an experience that can leverage differences between behavior and attributes of site visitors
• Solution: Leverage power of behavioral targeting:– Provide value to prospects, customers, and bottom line
– Provide organizational learning to feed back into marketing processes and shape future strategies
– Provide consistent brand message between key online channels
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Overstock.com Case Study
Website personalization
Unified visitor profile
Example programs
1-to-1 triggered email
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Overstock.com Case Study
• Quantitative results– Double digit conversion lift for campaign– Increased efficiency of acquisition efforts
• Qualitative results
– Visitor centric learning we can apply to other marketing efforts
– Minimal requirements on internal resources– Put power of marketing back into the hands of marketers
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On-site Behavioral Targeting
Brent Hieggelke
VP Strategic Marketing
Omniture
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Off-siteResources Email marketing
Affiliate programsBehavioral Targeting
Paid search managementBanner advertisingCall center referrals
Search Engine OptimizationOffline marketing to webIn-store Web promotion
On-siteResources
On-siteResources
Registration optimizationSite testingWeb analyticsUsability testing
Large gap in off-site and on-site spending…
Off-siteResources
On-siteResources
Large Investment Gap
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But the on-site engagement determines conversion success
Off-siteMarketingSpending
On-siteExperienceDetermines Conversion
Rate
Campaign Traffic
Email marketingAffiliate programsBehavioral Targeting
Referred Traffic
Paid search managementBanner advertisingCall center referrals
Direct Traffic
Search Engine OptimizationOffline marketing to webIn-store Web promotion
Campaign Landing Pages Home Page
Successful conversion
Conversion Process
Product Category Pages
Attrition losses
Attrition losses
CriticalEngagement
Layer
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How automated 1 to 1 targeting works:
Visitor arrives at your website
Visitor Profile Repository
Call goes out toVisitor Profile
Repository
CMS (Serves content)
build profile
First-time visitor
retrieve profile
Repeat visitorSelf-learning
Predictive Modeling Engine
Optimalcontent decisionsent to CMS
Content library
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Referring domainCampaign IDAffiliatePPCNatural searchSearch keywords
(“loans”)Direct/bookmark
Referrer Variables
What data is used to select the relevant offer?
Customer/prospectNew/return visitorOnline banking loginTools usagePrevious Product interests –
low levelSearches Previous online purchasesPrevious Campaign exposurePrevious Campaign responses
Site Behavior Variables
IP addressCountry of originTime zoneOperating systemBrowser typeScreen resolution
Environment Variables
Offline Customer Variables
Temporal Variables
Time of day
Day of week
Recency
Frequency
Highly
predictive
anonymous
visitor profile
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• On-site Behavioral Targeting was implemented with the specific goal of increasing conversion and sales across products
• Other reasons:
– Creative testing and optimization
- Sales target management
- Managing homepage politics
- Real-time reporting
- Easy to use automated system
- Excellent customer service
- Sophisticated targeting system
- Reports that can prove the uplift in revenue each month
Lloyds TSB Initial Goals
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Profile A
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Profile B
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Profile C
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Profile D
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Targeting on the secure logoff page
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Lloyds TSB Targeting Report
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Lloyds TSB Targeting Report