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OCTOBER

2 4, 2 0 1 3

Data Management
Platforms—Using Big Data
to Power Marketing
Performance

Lauren T. Fisher
Analyst

Sponsored by:

©2013 eMarketer Inc.
What’s in store:

Data: a challenge and a solution
Defining Big Data and Data Management
Platform (DMP)
DMP’s role in the ad technology ecosystem
How DMPs are being used for audience
targeting?
How are DMPs being used for cross-channel
and cross-platform attribution?

Twitter – #eMwebinar

©2013 eMarketer Inc.
The majority of US marketers recognize
the value of data
A February 2012 survey from Columbia Business School
and the New York American Marketing Association (NYAMA)
found 91% of US marketers surveyed believed
successful brands used data to drive marketing
decisions.

©2013 eMarketer Inc.
But only a
minority of
US
companies
actually
capture
customer
data, and
less than
half of those
are able to
capitalize
on its use

©2013 eMarketer Inc.
This
problem
is only
getting
worse, as
both online
and offline
data
generation
show no
signs of
slowing
down

©2013 eMarketer Inc.
And it’s spurring an interest in Big Data

©2013 eMarketer Inc.
What is Big Data?

Search

Email/
ESP
Analytics

Reg/
Login
Social
Mobile
Purchase/
In-store

Display/
DSP/ATD

Site

Big
Data

Loyalty

CRM
3rdParty

Twitter – #eMwebinar

Offline
Media

©2013 eMarketer Inc.
What is a Data Management Platform
(DMP)?
If data is the currency of digital marketing, then the DMP
is the bank.
A DMP is where Big Data is:
stored
standardized
optimized

Twitter – #eMwebinar

©2013 eMarketer Inc.
DMPs play a central role in the digital
advertising ecosystem

Twitter – #eMwebinar

©2013 eMarketer Inc.
DMPs play a central role in the digital
advertising ecosystem

Twitter – #eMwebinar

©2013 eMarketer Inc.
DMPs play a central role in the digital
advertising ecosystem

Twitter – #eMwebinar

©2013 eMarketer Inc.
DMPs play a central role in the digital
advertising ecosystem

Twitter – #eMwebinar

©2013 eMarketer Inc.
DMPs play a central role in the digital
advertising ecosystem

Twitter – #eMwebinar

©2013 eMarketer Inc.
In other words …

“The DMP is really a central nervous
system that allows you to compile all of
these data sources and turn them into
meaningful sets of audience
segments that you can use for
multiple purposes.”
—Tim Waddell, director of product marketing for
Adobe AudienceManager

Twitter – #eMwebinar

©2013 eMarketer Inc.
That sounds a lot like a Customer
Relationship Management (CRM) system …
DMP:

CRM:
Houses:

Houses:

Customer information

CRM data

Purchase history

Analytics

Campaign details

Third-party data

Client status/lead score

Second-party data

Select third-party data
Analyzing and acting on data
usually requires additional tools

Processes and analyzes data to identify
key audience segments and/or
campaign effects
Alignment with digital marketing
platforms such as marketing
automation, ESP, ad servers, content
management system, ad verification
tools and digital marketing channels
gives full range of actionability

Twitter – #eMwebinar

©2013 eMarketer Inc.
DMPs offer more than audience insights

“Eighteen months ago, a DMP was just a big
box sucking in data. Now, you have two
branches:
There are data marketing platforms,
which allow us to activate all of that data for
targeting and more efficient ad delivery.
And then there’s the data analytics side,
which allows us to use the data to better
inform online and offline marketing
decisions.”
—Mark Zagorski, CEO of eXelate
Twitter – #eMwebinar

©2013 eMarketer Inc.
Marketers are investing in DMPs

Radar Research (Nov. 2012): 40% of marketers worldwide
Winterberry Group & IAB (Sept. 2012): 62% of marketing
professionals* in North America
*66% marketing tech/service providers
*23% publishers
*10% marketers

Twitter – #eMwebinar

©2013 eMarketer Inc.
Not
surprisingly,
marketers
look to
DMPs for
audience
targeting
and
improved
attribution
and
analytics

©2013 eMarketer Inc.
Using a DMP for
Audience Targeting

©2013 eMarketer Inc.
The majority of US display advertisers
use some form of audience targeting

©2013 eMarketer Inc.
Most rely on first- and third-party data,
though not necessarily in concert

©2013 eMarketer Inc.
Publishers, too, are seeking out DMPs for
greater audience insight
“The old way of responding to RFPs was to
do a syndicated research run via comScore
or any other service that shows a general
audience composition and projected
potential reach of that audience on a site.
Advertisers don’t want that anymore. They
want to know exactly who you have
on your site.”
—Mark Howard, chief revenue officer for Forbes

Twitter – #eMwebinar

©2013 eMarketer Inc.
DMPs integrate more than just first- and
third-party data

©2013 eMarketer Inc.
Audience intelligence gained from a
DMP provides:
Holistic view of individuals
Audience segmentation
More precise audience targeting

Twitter – #eMwebinar

©2013 eMarketer Inc.
DMPs in practice: Forbes delivers distinct
audience segments
Actions:
Divided site into distinct segments
Layered in first- and third-party
data

Results:
Identify exact audience composition
for individual site segments
More customized audiences
Identify new audience segments

©2013 eMarketer Inc.
DMPs in practice: Combining multiple
CRMs for a unified customer view
A financial services firm aims to create a
unified customer view across all service divisions
Integrated into DMP:
CRMs for each service
division
Third-party data
Marketing platforms,
channels and content
management system

Results:
Developed single view of customer
Identified high-value customers
Identified new attributes for targeting or
up-selling prospects and customers
Improved marketing personalization
and website experience
Better attributed marketing efforts

©2013 eMarketer Inc.
Using a DMP for
Attribution

©2013 eMarketer Inc.
US
marketers
have high
hopes for
DMPs and
their ability
to improve
current
attribution
practices

©2013 eMarketer Inc.
Still,
relatively
few are
using
attribution
modeling,
let alone
using a DMP
to do it

©2013 eMarketer Inc.
Last-click
attribution
remains the
norm
worldwide

©2013 eMarketer Inc.
Such an attribution model assigns
retargeting—a popular tactic—full credit

©2013 eMarketer Inc.
DMPs enable marketers to build a more
complete view of marketing performance
Cross-channel attribution
Cross-platform attribution

Twitter – #eMwebinar

©2013 eMarketer Inc.
DMPs in practice: Xaxis helps Godiva
prove digital’s effect on in-store sales
Godiva layers in offline purchase data with video and display ad
performance to determine their effects on driving in-store sales.

Results:
Determined Godiva earned
about $2 in sales for every $1 in
digital
Justified and increased digital
advertising budget

©2013 eMarketer Inc.
DMPs in practice: Tech firm identifies and
amplifies the TV-to-search relationship
A large technology company deploys an ad campaign on digital video
and TV in anticipation of a new product launch
Results:
Identified TV driving a good portion of search activity
Optimized search for TV ads and to drive users to the website
for eventual purchase
“Without that integrated view, someone looking at
just the web analytics might have just seen the bulk
of traffic coming from search and assumed that we
shouldn’t bother doing cable advertising.”
—Laurent Colard, global managing partner at GroupM

©2013 eMarketer Inc.
DMPs improve attribution, but limitations
exist
Mobile’s lack of cookies
can make it difficult to
identify an individual
across devices
Bringing offline data
online results in data
loss

Twitter – #eMwebinar

©2013 eMarketer Inc.
Key Takeaways:

1. Big Data is on everyone’s mind, and it’s only
getting “bigger.”
2. DMPs are at the heart of the digital
advertising ecosystem, touching nearly every
platform and technology.
3. DMPs enable marketers to address two of
their greatest needs: an understanding and
actualization of their audience; and an understanding of
their total marketing effects.
4. DMPs are a solution to these challenges, but
they still have limitations.
Twitter – #eMwebinar

©2013 eMarketer Inc.
Harnessing Data: A Complementary Relationship

DMPs
• Ingest / normalize data
• Facilitate analytics and insights
• Connect to internal / external
platforms for bi-directional data
sharing

DSPs
• Target audiences using 1st and 3rd party
data
• Buy media at global scale in real time
• Achieve data-driven insights about
audiences reached through campaigns
The Trade Desk – A Buyer’s Platform
• 100% proprietary technology
• Display, video, social, and mobile
– one platform

Choose audience
and campaign

• Attribution and reporting across
all channels
• Ad serving, tracking and analytics
(or bring your own ad server)
• DMP and marketplace for
audience data

Report on results
across channels

Launch and
manage campaign
Trends Propelling DSP Use
• Growth in RTB
• Expansion of international markets
• One word: Facebook
• Expansion to display, mobile, social,
and video
• Big Data (and marketers’ quest to
extract value from it)
• Growing array of targeting strategies
Expanding Array of Targeting Strategies and Tactics

Retargeting

Lookalike
Modeling

Dynamic
Creative
Optimization

Search
retargeting

Targeting
Strategies

IP targeting

Contextual
and site
targeting

Geo-Zone
Targeting
3rd party data
+ Audience
Targeting

• Leading DSPs delivering
more powerful targeting as a
result of:
– Increasing sophistication of
buyers
– Expanded analytic power within
tool sets
– Richer data availability to power
selection criteria
Extracting Value Using “Right Priced” 3rd Party Data

When priced as a percentage of media spend, the power of 3rd party targeting
can be unlocked for FBX and other less expensive media
Q&A Session
Data Management Platforms—
Using Big Data to Power
Marketing Performance

Learn more about digital marketing with an
eMarketer corporate subscription
Around 200 eMarketer reports are published
each year. Here are some recent reports you
may be interested in:
Data Management Platforms: Using Big Data to Power
Marketing Performance
eMarketer’s Guide to the Digital Advertising Ecosystem:
Mapping the Display Advertising Purchase Paths and the
Ad-Serving Process

Lauren T. Fisher
You will receive an email
tomorrow with a link to
view the deck and
webinar recording.
Sponsored by:

The Trade Desk

Shopping Cart Abandonment: New Ways of Looking at
the Purchase Path
How Retailers are Leveraging ‘Big Data’ to Personalize
Ecommerce
Multichannel Attribution: What Retailers Need to Know
To learn more: www.emarketer.com/products
800-405-0844 or webinars@emarketer.com
©2013 eMarketer Inc.

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eMarketer Webinar: Data Management Platforms—Using Big Data to Power Marketing Performance

  • 1. OCTOBER 2 4, 2 0 1 3 Data Management Platforms—Using Big Data to Power Marketing Performance Lauren T. Fisher Analyst Sponsored by: ©2013 eMarketer Inc.
  • 2. What’s in store: Data: a challenge and a solution Defining Big Data and Data Management Platform (DMP) DMP’s role in the ad technology ecosystem How DMPs are being used for audience targeting? How are DMPs being used for cross-channel and cross-platform attribution? Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 3. The majority of US marketers recognize the value of data A February 2012 survey from Columbia Business School and the New York American Marketing Association (NYAMA) found 91% of US marketers surveyed believed successful brands used data to drive marketing decisions. ©2013 eMarketer Inc.
  • 4. But only a minority of US companies actually capture customer data, and less than half of those are able to capitalize on its use ©2013 eMarketer Inc.
  • 5. This problem is only getting worse, as both online and offline data generation show no signs of slowing down ©2013 eMarketer Inc.
  • 6. And it’s spurring an interest in Big Data ©2013 eMarketer Inc.
  • 7. What is Big Data? Search Email/ ESP Analytics Reg/ Login Social Mobile Purchase/ In-store Display/ DSP/ATD Site Big Data Loyalty CRM 3rdParty Twitter – #eMwebinar Offline Media ©2013 eMarketer Inc.
  • 8. What is a Data Management Platform (DMP)? If data is the currency of digital marketing, then the DMP is the bank. A DMP is where Big Data is: stored standardized optimized Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 9. DMPs play a central role in the digital advertising ecosystem Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 10. DMPs play a central role in the digital advertising ecosystem Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 11. DMPs play a central role in the digital advertising ecosystem Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 12. DMPs play a central role in the digital advertising ecosystem Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 13. DMPs play a central role in the digital advertising ecosystem Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 14. In other words … “The DMP is really a central nervous system that allows you to compile all of these data sources and turn them into meaningful sets of audience segments that you can use for multiple purposes.” —Tim Waddell, director of product marketing for Adobe AudienceManager Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 15. That sounds a lot like a Customer Relationship Management (CRM) system … DMP: CRM: Houses: Houses: Customer information CRM data Purchase history Analytics Campaign details Third-party data Client status/lead score Second-party data Select third-party data Analyzing and acting on data usually requires additional tools Processes and analyzes data to identify key audience segments and/or campaign effects Alignment with digital marketing platforms such as marketing automation, ESP, ad servers, content management system, ad verification tools and digital marketing channels gives full range of actionability Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 16. DMPs offer more than audience insights “Eighteen months ago, a DMP was just a big box sucking in data. Now, you have two branches: There are data marketing platforms, which allow us to activate all of that data for targeting and more efficient ad delivery. And then there’s the data analytics side, which allows us to use the data to better inform online and offline marketing decisions.” —Mark Zagorski, CEO of eXelate Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 17. Marketers are investing in DMPs Radar Research (Nov. 2012): 40% of marketers worldwide Winterberry Group & IAB (Sept. 2012): 62% of marketing professionals* in North America *66% marketing tech/service providers *23% publishers *10% marketers Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 19. Using a DMP for Audience Targeting ©2013 eMarketer Inc.
  • 20. The majority of US display advertisers use some form of audience targeting ©2013 eMarketer Inc.
  • 21. Most rely on first- and third-party data, though not necessarily in concert ©2013 eMarketer Inc.
  • 22. Publishers, too, are seeking out DMPs for greater audience insight “The old way of responding to RFPs was to do a syndicated research run via comScore or any other service that shows a general audience composition and projected potential reach of that audience on a site. Advertisers don’t want that anymore. They want to know exactly who you have on your site.” —Mark Howard, chief revenue officer for Forbes Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 23. DMPs integrate more than just first- and third-party data ©2013 eMarketer Inc.
  • 24. Audience intelligence gained from a DMP provides: Holistic view of individuals Audience segmentation More precise audience targeting Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 25. DMPs in practice: Forbes delivers distinct audience segments Actions: Divided site into distinct segments Layered in first- and third-party data Results: Identify exact audience composition for individual site segments More customized audiences Identify new audience segments ©2013 eMarketer Inc.
  • 26. DMPs in practice: Combining multiple CRMs for a unified customer view A financial services firm aims to create a unified customer view across all service divisions Integrated into DMP: CRMs for each service division Third-party data Marketing platforms, channels and content management system Results: Developed single view of customer Identified high-value customers Identified new attributes for targeting or up-selling prospects and customers Improved marketing personalization and website experience Better attributed marketing efforts ©2013 eMarketer Inc.
  • 27. Using a DMP for Attribution ©2013 eMarketer Inc.
  • 28. US marketers have high hopes for DMPs and their ability to improve current attribution practices ©2013 eMarketer Inc.
  • 31. Such an attribution model assigns retargeting—a popular tactic—full credit ©2013 eMarketer Inc.
  • 32. DMPs enable marketers to build a more complete view of marketing performance Cross-channel attribution Cross-platform attribution Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 33. DMPs in practice: Xaxis helps Godiva prove digital’s effect on in-store sales Godiva layers in offline purchase data with video and display ad performance to determine their effects on driving in-store sales. Results: Determined Godiva earned about $2 in sales for every $1 in digital Justified and increased digital advertising budget ©2013 eMarketer Inc.
  • 34. DMPs in practice: Tech firm identifies and amplifies the TV-to-search relationship A large technology company deploys an ad campaign on digital video and TV in anticipation of a new product launch Results: Identified TV driving a good portion of search activity Optimized search for TV ads and to drive users to the website for eventual purchase “Without that integrated view, someone looking at just the web analytics might have just seen the bulk of traffic coming from search and assumed that we shouldn’t bother doing cable advertising.” —Laurent Colard, global managing partner at GroupM ©2013 eMarketer Inc.
  • 35. DMPs improve attribution, but limitations exist Mobile’s lack of cookies can make it difficult to identify an individual across devices Bringing offline data online results in data loss Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 36. Key Takeaways: 1. Big Data is on everyone’s mind, and it’s only getting “bigger.” 2. DMPs are at the heart of the digital advertising ecosystem, touching nearly every platform and technology. 3. DMPs enable marketers to address two of their greatest needs: an understanding and actualization of their audience; and an understanding of their total marketing effects. 4. DMPs are a solution to these challenges, but they still have limitations. Twitter – #eMwebinar ©2013 eMarketer Inc.
  • 37. Harnessing Data: A Complementary Relationship DMPs • Ingest / normalize data • Facilitate analytics and insights • Connect to internal / external platforms for bi-directional data sharing DSPs • Target audiences using 1st and 3rd party data • Buy media at global scale in real time • Achieve data-driven insights about audiences reached through campaigns
  • 38. The Trade Desk – A Buyer’s Platform • 100% proprietary technology • Display, video, social, and mobile – one platform Choose audience and campaign • Attribution and reporting across all channels • Ad serving, tracking and analytics (or bring your own ad server) • DMP and marketplace for audience data Report on results across channels Launch and manage campaign
  • 39. Trends Propelling DSP Use • Growth in RTB • Expansion of international markets • One word: Facebook • Expansion to display, mobile, social, and video • Big Data (and marketers’ quest to extract value from it) • Growing array of targeting strategies
  • 40. Expanding Array of Targeting Strategies and Tactics Retargeting Lookalike Modeling Dynamic Creative Optimization Search retargeting Targeting Strategies IP targeting Contextual and site targeting Geo-Zone Targeting 3rd party data + Audience Targeting • Leading DSPs delivering more powerful targeting as a result of: – Increasing sophistication of buyers – Expanded analytic power within tool sets – Richer data availability to power selection criteria
  • 41. Extracting Value Using “Right Priced” 3rd Party Data When priced as a percentage of media spend, the power of 3rd party targeting can be unlocked for FBX and other less expensive media
  • 42. Q&A Session Data Management Platforms— Using Big Data to Power Marketing Performance Learn more about digital marketing with an eMarketer corporate subscription Around 200 eMarketer reports are published each year. Here are some recent reports you may be interested in: Data Management Platforms: Using Big Data to Power Marketing Performance eMarketer’s Guide to the Digital Advertising Ecosystem: Mapping the Display Advertising Purchase Paths and the Ad-Serving Process Lauren T. Fisher You will receive an email tomorrow with a link to view the deck and webinar recording. Sponsored by: The Trade Desk Shopping Cart Abandonment: New Ways of Looking at the Purchase Path How Retailers are Leveraging ‘Big Data’ to Personalize Ecommerce Multichannel Attribution: What Retailers Need to Know To learn more: www.emarketer.com/products 800-405-0844 or webinars@emarketer.com ©2013 eMarketer Inc.