the state of behavioral targeting

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

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

Behavioral Targeting in the news

• Google-DoubleClick

• Yahoo!-Right Media

• WPP Group-24/7 Real Media

• Microsoft-aQuantive

• AOL-Tacoda

BlueLithium + Hyatt Hotels and Resorts

Case Study

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

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.

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.

Hyatt Hotels and Resorts

Results:BlueLithium beat Hyatt’s targeted cost per customer by 74%

Kefta Dynamic Targeting & Overstock.com Case Study

Philippe Suchet - Acxiom Digital, Kefta GM

Geoff Atkinson - Overstock.com, Marketing Chief of Staff

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

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

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

Overstock.com Case Study

Website personalization

Unified visitor profile

Example programs

1-to-1 triggered email

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

On-site Behavioral Targeting

Brent Hieggelke

VP Strategic Marketing

Omniture

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

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

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

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

• 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

Profile A

Profile B

Profile C

Profile D

Targeting on the secure logoff page

Lloyds TSB Targeting Report

Lloyds TSB Targeting Report

Thanks.

• Brent Hieggelke• bhieggelke@omniture.com