Join eMarketer Principal Analyst David Hallerman as he explains how getting through to those interested in a marketer’s pitch demands a blend of the right audience, the right medium and the right message.

1. David Hallerman Principal Analyst O C T O B E R 1 3, 2 0 1 1 Reaching the Right Audience—Ad Targeting Trends Sponsored by:

3. Marketing Goals, Targeting’s Purpose (hint: the goal isn’t targeting)

4. Display ad spending includes: • banners • rich media • sponsorship • video

5. Over one-third of marketers cited improving segmentation and ad targeting among their leading priorities

6. Relevancy is key when marketers look to influence an engaged , if often diverse, audience

7. Publishers sell slightly more targeted ads for branding than for direct response

8. Jacob Shin, director of online marketing, Savings.com “ Our primary goal is, like most companies, twofold. One is create brand awareness and then, secondly, is to drive conversion.” Twitter – #eMwebinar

9. Data supports targeting, which supports strategic goals, which supports ROI Data Targeting Goals $$$

10. But to get to a company’s real goals means building the pyramid top down $$$ Goals Targeting Data

11. Let’s look more deeply at the concept of targeting and several of its implications

12. Shawn Riegsecker, president, Centro “ When it comes to audience targeting, close enough is all you need.”

13. The holes in various targeting concepts are due to technology and its usage

14. Targeting Types (and ways to blend them)

15. Top level: About 30% of advertisers cite content targeting as most important vs. the 70% who favor audience targeting

16. Shawn Riegsecker, president, Centro “ For brands, content as a proxy for audience and making sure their brand is shown in the right environment is critically important. To lower-tier, direct-response-only types of clients, content is meaningless .”

18. Both content and audience are equally important for online brand campaigns

19. There are at least 16 different types of ad targeting, often used in tandem

20. Audience-focused ad targeting depends most highly on these methods

21. Content-oriented ad targeting depends more so on these methods

22. Used the most: three basic targeting techniques

23. Another study: demographic and behavioral targeting most important

25. However, US mobile advertising , still emergent, leans toward demographic and geographic targeting, less so behavioral

27. About one-third of marketers cite data-driven behavioral targeting as a main focus of their entire digital strategy

28. While behavioral most cited for video ad targeting, contextual strong too

30. Holly Dunn, vice president of digital, Draftfcb “ We use look-alike modeling. It’s basically saying that we know that our target responders happen to look like this and, therefore, we can target other people who look like that.”

32. Look-alike targeting seems to promise exact and happy matches

33. Actual look-alikes are close, same group, but not exact (really another proxy)

35. Most publishers offer marketers some form of retargeting

36. Accurate retargeting a prime reason for audience response

37. Genny Drennen, media director, Fraser Communications “ We may do display retargeting off of a pre-roll video view in order to get additional frequency.”

38. Retargeting for video, for branding , a common and growing niche technique

39. Increasingly, marketers see the most effective ad targeting blends methods

40. Increasingly, marketers see the most effective ad targeting blends methods

41. Gathering and Using Data (gold, silver, bronze)

42. Data is the gold standard , the new black, etc., for online marketing

44. Most of the types of data used to improve marketing also help perfect targeting

45. One way to obtain high-quality first-party data is by asking and giving , making the trade-off clear

46. Some of the most important data for behavioral targeting also needs to tie into a company’s systems

47. 65% of marketers say data about visitor behavior is only somewhat effective

48. Jaffer Ali, chief executive officer, Vidsense “ If you are a marketer, you must understand the limitations of historical data .”

50. Emily Iverson, director of display, Booyah Online Advertising “ We look at a user’s social circle…to find their friends and family and people who look like them out in the social world and then go ahead and target them.”

51. Giving value to audience for their data is highlighted in the social space

52. At its most effective, social data lets marketers connect the dots in their target audience

53. Social-site data marketers get from fans may not always work well for targeting

55. Carl Fremont, global media director, Digitas “ Most audience modeling is done up front , and then you’re just refining it with further insight.”

56. John Shea, vice president of strategy, Rimm-Kaufman Group “ Overall we do an array of targeting and just let the data guide us to what works best.”

57. 57% of advertisers and 53% of agencies said 2 or 3 targeting segments are optimal

58. Testing and Measuring (creating better results)

60. Holly Dunn, vice president of digital, Draftfcb “ We test a lot when we begin all of our campaigns. So we have a two- to three-week test-and-learn period where we validate our target , the message, and the environment that we’re running in.”

61. Only a minority of companies say that testing tactics are very effective

62. Measuring a tested campaign makes the next round of advertising more effective

63. Measured results from prior campaigns are a top source for improved targeting

64. What Gets the Audience’s Attention (and what loses it)

65. More targeting has produced more relevancy, but still more is needed

66. The audience tends to drop out or tune out if ads aren’t relevant

67. Internet users regularly contradict themselves about their desire for advertising relevance

68. User attitudes about tracking create significant limits for targeting

69. Most people simply do not want to be tracked, to have their data collected, or to be targeted ( perhaps it’s the language )

70. Giving users opt-out control is not unlike value exchange for prime data

71. Conclusions

73. Online Data Targeting

74. Optimizing Media Drives Higher CTR Media Optimization Percentage of Campaigns that Performed Above Baseline 34% 80% Audience Optimization

75. Content is (Still) King Improving CPA with Media Optimization Cost-Per-Action

76. Applying Targeting & Optimization Goals Establish and Communicate Campaign Goals Leverage Historical Performance & Targeting Data Deliver Campaign and Generate Reporting Monitor Performance & Adjust Targeting Techniques

77. Thank You Jared M. Skolnick VP, Product Marketing [email_address]

78. Reaching the Right Audience—Ad Targeting Trends Questions & Answers Registrants will receive an email tomorrow that includes a link to view the deck and webinar recording. For more discussion, please join us after the webinar on LinkedIn. Search for the eMarketer Group and click on Discussions. To learn about eMarketer Total Access please visit www.emarketer.com/products or contact us: (800) 405-0844 or [email_address] Twitter Hashtag: #eMwebinar Sponsored by : Presented by: David Hallerman Principal Analyst, eMarketer, Inc.