mapping the display landscape

A Fundamental Guide to

Data, Targeting & the Future of Display

MAPPINGTHE DISPLAYLANDSCAPE:

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A Fundamental Guide to

Data, Targeting & the Future of Display

MappingThe DisplaylanDscape:

2 FOReWORD

5 chapTeR 1: The DisplAy lAnDscApe

21 chapTeR 2: DeAlinG wiTh DATA

33 chapTeR 3: FROM DATA TO AUDience

43 chapTeR 4: AUDience TARGeTinG FOR BRAnDinG

51 chapTeR 5: pRivAcy

59 chapTeR 6: whAT’s nexT FOR DATA-DRiven DisplAy?

66 glOssaRy

70 abOuT neTMining

cOnTRibuTOR aRTicles

16 Why Real-Time bidding changes everything sean Downey, national sales Director, Display at Google

18 Real-Time bidding: The slope of enlightenment Brian O’Kelley, ceO, Appnexus

27 Data-Driven Marketing: 1st party Data Vs. 3rd party Data chris scoggins, svp & GM, Dlx platform, Datalogix

30 social Targeting Tom phillips, ceO, Media6Degrees

49 What is Online Media Verification? Oren netzer, co-Founder & ceO, Doubleverify

56 privacy & Oba self-Regulation colin O’Malley, co-Founder, vp strategy and policy, evidon

2 Forward

in the midst of the rapidly developing display

ecosystem, it’s easy to feel overwhelmed with

the new technologies, acronyms and players

in our industry. There are a lot of mechanics

involved in managing a media plan in today’s

digitally driven marketplace and the industry

is regularly challenged to keep up with these

changes and developments as they emerge.

staying informed is essential for online marketers

given display’s growing importance. At the

most recent iAB “Future of Display” conference,

neal Mohan, vp of product Management at

Google, declared that spending will rise from

$25 billion in 2010 to $200 billion “in a few

short years.”

we have written this Display Guide to help you

navigate this fragmented and changing world

we work in, and hope it serves as a valuable

resource when approaching your display

initiatives.

included in this guide are answers to some of

the most burning questions we hear again and

again from marketers:

how should we respond to the fast-paced

evolution of the display landscape and what

we can expect in the near future?

what exactly are all these technologies,

platforms and tactics – such as RTB, Dsps,

ssps, Ad exchanges, Data exchanges – and

how should i be using these tools? Am i

missing anything in my toolbox?

FOReWORD

Mapping the Display landscape: a Fundamental guide to Data, Targeting & the Future of Display

3www.netmining.com

What are the best practices in relation to data

and audience targeting?

We know how display works for direct

response objectives, but how can it work for

branding?

A number of individuals graciously lent their

time and talents to the production of Mapping

the Display Landscape. We’d like to take this

opportunity to thank them for their contributions.

To our savvy featured columnists: Sean Downey,

Oren Netzer, Brian O’Kelley, Colin O’Malley, Tom

Phillips and Chris Scoggins – we appreciate all of

you for sharing your keen insights and expertise.

To our “what’s next” fortune-tellers: David

Cohen, Jeff Huter, Scott Portugal, Philip Smolin

and Michael Stephanblome – we are excited

for the day when we can say you predicted

the future here first. And a shout out to Danny

Hellman (www.dannyhellman.com) for the fun

illustrations.

Last but not least, an advanced thanks to

the readers of this Display Guide who are

encouraged to comment, share, critique, tweet,

scan, blog or generally discuss the contents

herein. We welcome you to reach out and

share your thoughts directly with us anytime at

[email protected] or on Twitter @netmining.

Happy Reading,

Chris Hansen

President

Netmining

7www.netmining.com

Online display advertising emerged as the

predominant online marketing vehicle during

the dot com boom of the late 90s. For many

years, the way it was created, priced, packaged,

bought and sold remained unchanged. In 1998, a

company named goto.com (later Overture, then

bought by Yahoo! in 2003) began offering text-

based ads targeting keywords on a CPC (cost per

click) basis. Search marketing was born, giving

marketers a new advertising format to reach

consumers and new competition for limited online

advertising budgets.

Google’s entrance into the space solidified

search as a serious contender for online

marketing dollars, threatening display’s then held

dominance. The efficiency, control and easily

measureable ROI provided by search marketing

highlighted the limitations of display. In contrast,

display at this time offered no easy way to directly

access inventory; it provided limited control over

inventory and costs; and it saw low performance

and measureable ROI.

By 2005, display marketing had lost its luster as

budgets continued to shift from display towards

search. As seen in the IAB Internet Advertising

Revenue Reports, 67% of online ad revenue

could be attributed to display and 4% to search

in 2001. However, by 2006, display decreased

to 32% as search became the dominant online

advertising channel at 40%.

This dramatic shift can be attributed to one thing

– CONTROL. Search marketing gave marketers,

and the agents that managed media on their

behalf, control over where ads were displayed and

transparency into associated costs. As a result,

display providers were forced to innovate quickly

to stave off declining display dollars.

THE DISPLAY LANDSCAPE

The display landscape has changed dramatically since the first display banner appeared

in 1994. This chapter outlines significant milestones that have shaped the current

display environment and reviews the technologies and key players on the forefront of

this changing landscape.

The Rise & Fall of Display (2000-2005)

8 The Display landscape

new Technologies lead the Turnaround (2005-present)

Display needed to evolve to compete in a new

world dominated by search. it’s no surprise that

search companies, namely yahoo!, Google and

to some extent Microsoft, were heavily involved

in display’s evolution. Through innovations and

acquisitions by these big players, marketers

started to see a new display industry emerge, one

that provided better access to inventory, more

efficiency and control over targeting and cost, and

better performance.

2005 saw the birth of the Ad exchange.

Ad exchanges were developed to provide

advertisers with better access and more control

over inventory. several major deals catapulted

exchanges into mainstream media buying,

including the acquisition of RightMedia by yahoo!

in 2007 and the launch of Google Doubleclick

Ad exchange in 2009.

Demand side platforms (Dsps) also began to

attract attention in 2007 with companies like

MediaMath and inviteMedia who helped make

media buying more efficient for marketers and

Ad networks. This was the first platform that

aggregated media buying and selling in one place.

even some Ad networks, such as Turn, began to

morph into Dsps to take advantage of this market

development.

To improve performance and to provide further

control over messaging to different audiences,

these major companies began experimenting

with dynamic display. Google and yahoo! once

again made significant plays in this space with

acquisitions of Teracent in 2009 and Dapper

in 2010, respectively. in 2011, Google made the

industry’s first supply side platform acquisition

with AdMeld.

new and old players are now all integral to the

display ecosystem. This includes Ad exchanges,

Ad networks, supply side platforms, Data

exchanges and more, most of which work

RightMedia exchange (RMX) launch

april, 2005BiRTh OF The AD exchAnGe

2005 2007

google buys Doubleclick

april, 2007GOOGle GeTs seRiOUs ABOUT DisplAy

inviteMedia launch

april 2007eMeRGence OF Dsps

yahoo! buys RightMedia

april, 2007AD exchAnGes GO BiG TiMe

Microsoft buys adecn

July, 2007

9www.netmining.com

together in some capacity. Brands are finding

new confidence in the current display landscape

thanks to strides in brand safety, performance

and market transparency.

expect to see more growth and consolidation

in the year ahead as major industry players and

new market-entrants seek to grab the impending

brand dollars shifting away from traditional ad

spend and toward display.

Key Technologies in Today’s Display landscape

Display needed to evolve to compete in the

new world dominated by search, and by 2005,

the changes had begun. what emerged was a

series of disruptive businesses and technologies

that changed the way display media was bought

and sold.

here we provide an overview of each of these

technologies.

ad network

an online advertising service provider, often

with proprietary technology, that helps

marketers run display advertising campaigns

across various sources of online inventory,

including direct publishers and ad exchanges.

ad networks typically include other services

as part of their media campaigns, such as ad

serving, media verification, privacy notification,

reporting, data and/or audience targeting.

MediaMath launch

aug, 2007

Turn launches Their Dsp

sept, 2007sOMe neTwORKs MORph inTO Dsps

google launches Doubleclick ad exchange

sept, 2009The AD exchAnGe GROws Up

2009

google buys Teracent

nov, 2009 GOOGle BOOsTs DisplAy pUsh wiTh cUsTOMiZeD ADs

http://www.netmining.com/

10 The Display Landscape10

Since the dawn of online advertising in the

mid-90s, display media has been aggregated

and sold through Ad Networks. In its early

stages, an Ad Network’s basic function was

to connect advertisers to the many Web

Publishers interested in hosting ads on their

site. Ad Networks assisted marketers in

executing media plans by offering one outlet

for buying inventory, reporting, optimization,

targeting and campaign analysis.

Today, Ad Networks distinguish their services

through advanced technologies (e.g. audience

networks) or specific vertical focuses (e.g.

retail networks). These advanced Ad Networks

continue to serve as valuable partners for

Publishers looking for trusted demand sources

and to marketers needing more in-depth

targeting and analysis.

More successful Ad Networks are investing

heavily in technology to provide further

valuable services to advertiser clients,

including data management, ad verification,

privacy notice and consent, and brand studies.

Who Uses: Advertisers, Agencies to reach

audiences; Publishers to sell remnant inventory.

Benefits: Buying inventory across multiple

sites is simplified for the advertiser as costs

are aggregated within one IO; Ad Network

buys can be more cost effective since other

expenses, such as ad serving, verification and

AOL AdDesk Launches

April, 2010AOL PLAYS CATCH UP AND MAKES THEIR INVENTORY ACCESSIBLE TO THE MASSES

2010

Google Buys InviteMedia

June, 2010 GOOGLE GETS EVEN MORE SERIOUS ABOUT DISPLAY

Yahoo! Buys Dapper

Oct, 2010YAHOO! FOLLOWS GOOGLE’S LEAD AND GETS DSP AND DYNAMIC CREATIVE CAPABILITIES THROUGH ACQUISITION

Microsoft Shelves AdECN and Partners with AppNexus

Feb, 2011 MICROSOFT TRIES AGAIN TO COMPETE IN THE NOW MATURE EXCHANGE SPACE

2011

DSPs & Ad Networks

Many Ad Networks and DSPs now offer similar

technology-enabled services. Both are viable

options for marketers looking to achieve scale

among target audiences. Rather than choosing

one type of company to work with, marketers

who want to achieve high ROI and efficiency

with media buys (and are willing to experiment

to find their optimal media mix) should test DSPs

alongside a variety of Ad Networks with proven

performance case histories. This will help identify

the right combination of partners to maximize

return against campaign goals.

Google Buys AdMeld

June, 2011 GOOGLE GETS INTO THE SSP BUSINESS

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other costs, are often included in the price of

the media.

considerations: Ad networks typically do

not provide complete transparency into

inventory costs.

ad exchange

Online auction marketplace that facilitates

the buying and selling of inventory across

multiple ad networks and Dsps.

Ad networks were created to consolidate

inventory and media buying across the

thousands of sites selling advertising on the

web. By 2005, hundreds of Ad networks

existed, giving rise to a new kind of ad

inventory consolidator - the Ad exchange. An

Ad exchange is an online auction marketplace

that facilitates the buying and selling of

inventory across multiple Ad networks and

Dsps, often in real-time. exchanges help

advertisers consolidate their network and Dsp

buys and maximize the return from each ad

impression.

Media buyers at advertising agencies are the

primary users of Ad exchanges and often

access them directly through a Dsp. with Ad

exchanges, media buyers have more granular

transparency and control over the buying

process, including how much they pay for

each impression. For example, media buyers

can stipulate what they are willing to pay for

specific audience demographics and inventory.

similar to search marketing, they can create

rules that dynamically update their bids (rules-

based bidding) based on the inventory’s

expected performance against campaign

goals. A large percentage of inventory bid on

in the exchanges is real-time bidding (RTB)

enabled and this percentage continues to rise

because of the efficiencies RTB provides to

marketers and publishers.

Who uses: Advertisers, Agencies to reach

audiences; Ad networks and Dsps to sell their

publisher-partners’ inventory.

benefits: exchanges make the process of

buying on multiple Ad networks more efficient

by consolidating inventory across networks and

allowing advertisers to set rules for how much

they are willing to pay per impression based on

expected return against campaign goals.

considerations: exchanges focus solely

on providing access to large volumes of

inventory that can be purchased in an auction

environment with dynamic and variable

pricing. exchanges typically do not provide

additional services required for a media plan,

such as data targeting and media verification.

As a result, most advertisers utilize Ad

exchanges in conjunction with other Ad

network or Dsp partners.



yield Optimizers/sell side platforms (ssps)

an advertising technology platform which

represents the suppliers of online ads

(publishers).

ssps give publishers the ability to increase their

website advertising revenues by engaging with

multiple demand-side channels (Ad networks,

Ad exchanges and Dsps) through a single

vendor. ssps simplify the number of vendors

a publisher needs to work with directly, while

maximizing the number of advertisers who

have access to bid on their inventory. Marketers

will rarely work directly with ssps but they are

a key element to accessing quality inventory.

Who uses: publishers

benefits: Allows publishers to maximize

their advertising revenues by expanding the

number of advertisers who have access to their

inventory (via Ad exchanges, Ad networks,

Dsps), while providing the efficiency of

working with one partner.

considerations: publishers are often cautious

when using ssps, as they want to ensure that

these revenue streams do not jeopardize their

own direct sales efforts.

Online Data providers

any provider who sells data online.

The definition of an “Online Data provider” is

broad and includes a number of players and

data types, such as companies like experian

(financial data), nielsen (demographic and

psychographic data), OwneriQ (purchase

history) and more. These companies were

quick to make their data available to media

buyers just as publishers made their inventory

available via Ad exchanges. Today, most of

their data is sold in online Data exchanges. All

of these companies sell data that can be used

in the process of building an audience for a

marketer’s online advertising programs.

Who uses: Advertisers and their agencies, Ad

networks, Dsps, Data exchanges.

benefits: provides data that can be used

to build audiences to meet a marketer’s

campaign goals.

considerations: every data type and provider,

and their respective combinations yields

different results. To successfully employ data

from these providers, ongoing testing and

analysis is required to learn how to mix and

match data types to yield the best results.

Data exchanges

Online auction marketplace where advertisers

acquire 3rd party data that helps them better

reach their target audiences with display.

Data exchanges were created as marketplaces

where Online Data providers could sell their

data directly to Dsps and Ad networks. Data

exchanges give marketers access to audiences

who are in the market for certain products,

13www.netmining.com

demonstrate specific purchase behaviors or

adhere to certain demographics. Marketers

can work directly with Data exchanges to add

more intelligence to media buys, although most

access Data exchanges through intermediaries

like Ad networks and Dsps.

Who uses: Ad networks, Dsps.

benefits: ease of access to a wide variety of

data that can be compiled to target audiences.

considerations: As mentioned above, ongoing

testing and analysis is required to learn how

to mix and match data types to yield the

best results.

Demand side platforms (Dsps)

an advertising technology platform which

allows marketers to manage their online media

campaigns by facilitating the buying of auction-

based display media and audience data across

multiple inventory and data suppliers in a

centralized management platform.

The rise of exchanges and biddable display

media helped spur the creation of a new

type of online advertising technology known

as “Demand side platforms” or “Dsps.”

Dsps centralize the buying of auction-based

display media across Ad exchanges and are

usually offered as both licensed technologies,

used by agencies and in-house marketers,

or as managed services. Those who license

the technology can use it to create display

campaigns that combine different audience

data and inventory to meet their needs. Bid

rules and optimization algorithms determine

how much the marketer will bid for the

inventory and audience data, and campaigns

are optimized continuously to maximize ROi.

with a managed service model, the Dsp

provider will manage a marketer’s day-to-day

display campaigns and buy their biddable

media in addition to offering other campaign

services for an additional cost, such as ad

serving, media verification and data buying,

similar to the services offered by Ad networks.

For advertisers who choose to license a Dsp,

they may find that these platforms offer more

control over, and transparency into, the price

paid for each individual ad impression. however,

using these sophisticated technologies does

require training and daily resources to manage

campaigns. Marketers who want more “hands

on” help managing their display media utilize

Ad networks or Dsps as a managed service

(or a combination of the two).

Who uses: Agencies, Marketers.

benefits: control for agencies and marketers

over the buying of display inventory and

audience data, and transparency into media

costs. Under a self-service model, these

platforms should provide visibility into the cost

of the data and inventory purchased.

considerations: while having complete


14 The Display Landscape

transparency into the price of each impression

may help many marketers and agencies be

more savvy about their media budgets, others

may find this too resource intensive to manage

on their own. In addition, some DSPs may have

additional costs for added services such as ad

serving, data and media verification.

How does RTB work?

The efficient RTB process can be seen in this

diagram.

➊When a user visits a website with a display

ad, a call is made by the exchange server

supporting RTB to check with the Demand

Side Platforms or Ad Networks to determine

which marketer gets to serve the ad.

➋ There is a list of attributes associated with

each user and the platform checks if this user

has the desired attributes the marketer wants

to target.

➌Based on the perceived value of this user to the

marketer, the marketer places a bid on this ad

placement and the highest bidding marketer

gets the spot.

In this case, the hotel marketer placed the

highest bid and the user is served a hotel

banner. The entire bidding process takes place

within a fraction of a second.

What is Real-Time Bidding (RTB)?

RTB is the buying and selling of ad impressions in

real-time in an online auction marketplace.

The centralization of media buying and selling

via platforms such as Ad Exchanges and SSPs,

opened the door to real-time bidding (RTB), or

dynamic, search-like bidding on a per impression

or per user basis.

For media buyers, RTB allows them to decide,

in real-time, whether or not they want to bid on

media based on the perceived value of the media

being bought and the audience being targeted.

Typically, the highest bidder gets their ad placed.

For Publishers, RTB provides them with the

opportunity to get fair market value for each

impression and many believe this should help

Publishers better monetize their ad inventory.

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100 millisecond

Platforms (DSP/Ad Network)

AD

Website

Single Platform to Single Exchange

Exchange / SSP

Platform 1

Platform 2

Platform 3

HotelAd

Bid Price: $1.50

Bid Price: $1.30

ATTRIBUTESGeo

Time of Day

Day of Week

Context

Placement

Bandwidth

Audience segments

AutoAd

Des

ired

targ

etin

g at

trib

utes

?

single platform to single exchange

chapter conclusion

The past five years of innovation in online

advertising has created an entirely new market

for buying and selling media, one fueled by both

big and small players. Recent years have seen

consolidation as market leaders like Google

and yahoo! invest in ad strategies. Market

advancements have been perfectly timed with

the rise in targeting, consumer engagement and

new creative formats.

The market reshaped and old players like Ad

networks reinvented themselves, while other

new players and technologies entered the space.

Data exchanges, ssps, Dsps and RTB are a few

examples of this. each addresses a specific need

for marketers and publishers.

The proliferation of accessible online data has

united inventory and created an ecosystem where

most platforms are working together in some way

to achieve campaign goals. An example of this is

an Ad network working with Data exchanges and

RTB platforms on behalf of a marketer.

Marketers are also being forced to innovate how

they approach media buys. Understanding the

players and how each impacts business is crucial

to building a successful program. Dsps and Ad

networks that offer similar services should be

carefully evaluated to determine their right place

in a media plan.



Why Real-TiMebiDDing changeseVeRyThing

Real-Time bidding (RTB) is the missing piece

that solves the challenges of efficiently and

effectively acquiring ad space online. since the

first display ad was purchased in 2004, advertisers

have been dealing with the inefficiency of buying

in advance directly from sites in their media plans,

the difficulty of reaching the right audience with

manual methods and a sheer explosion of choice.

Today, through Google alone, there are over 2

million sites to buy on and over 500 million people

to reach globally. RTB turns these challenges into

opportunity.

RTB doesn’t just solve problems: it adds value

by helping advertisers attain a new level of

precision in acquiring ad space online. Through

RTB, advertisers can evaluate ad space based on

near perfect information about every impression.

Advertisers can know – before they buy – if their

ad will reach its intended audience, appear on

the correct placement on a page, appear within

a particular category of content and reach people

in the right geographies.

But what is real-time bidding? it’s an automated

process by which ad inventory, on an impression-

by-impression basis, is evaluated, bid on and

purchased on demand. when bidding in real-time,

advertisers must answer three essential questions

about every impression that’s up for auction:

sean DOWneynational sales Director, Display at Google

Real-Time bidding is becoming more important to the future of the display

ecosystem, but how does it actually work? This section takes a look under the hood of

RTB, reveals how it is improving the industry and providing benefits to both marketers

and consumers alike.

17www.netmining.com

Do you want the impression?

what price are you willing to pay?

if you win the impression, what creative do you

serve?

These questions must be answered in 100

milliseconds or less, across millions of impressions

every day.

while real-time bidding is a process, only

technology makes real-time bidding possible.

RTB requires two distinct layers of technology: a

“pipe” and a “brain.”

➊ The “pipe” of RTb is the real-time bidding

Api (RTB Api) that provides a server-side

connection to an inventory source and pushes

out a real-time stream of impressions to

eligible advertisers. The “pipe” announces

each impression individually as they become

available for purchase. At Google, Doubleclick

Ad exchange’s RTB Api is the pipe that

makes all Ad exchange inventory available for

purchase in real-time.

➋ The “brain” of RTb is any real-time bidder that

connects to one or more “pipes” and evaluates

every impression that’s announced. The real-

time bidder is responsible for making the

best inventory acquisition decisions possible,

on behalf of the advertiser. At Google, invite

Media’s Bid Manager is a real-time bidder

and Google Display network uses a real-time

bidder under the hood.

in action, RTB takes place every time the “pipe”

announces an impression and the “brain” evaluates

it. By considering inventory in this manner – on a

per impression basis – advertisers get to be more

selective about the quality of inventory they buy.

They can place premium bids on the inventory and

audiences of the most value to the advertiser, and

can completely pass on inventory and audiences

of the least value to the advertiser.

Adoption of RTB is on the rise because advertisers

see the benefits. in a recent survey by Google

and Digiday, 47% of marketers and agencies who

responded said they intend to spend more on

digital advertising in 2011 because of the benefits

of RTB. in other words, rather than simply shuffling

money between different ways of acquiring ad

space online, RTB is growing the overall pie for

display advertising. plus, a full 88% of marketer

and agency respondents will buy online display

via RTB in 2011, up from 75% in 2010.

Real-Time bidding changes everything. Advertisers

can finally find the reach and frequency they need

for even the most niche audiences. They have a

greater degree of flexibility, which makes it easier

to drive performance. They can spend less time

on site-by-site negotiations, insertion orders and

billing. This allows more time to spend delighting

audiences with relevant and compelling ads.

when advertisers do this, everyone wins, from

the people who browse the web every day to the

publishers whose content they are consuming.



Real-TiMe biDDing: The

slOpe OF enlighTenMenT

we’re now in the second year of the real-

time bidding (RTB) phenomenon, and

everyone is asking: “how much is hype and

how much is reality?” sellers and buyers have

complained that the results from RTB are not as

amazing as promised, that the inventory is not as

premium as hoped and that prices are just too

darn high. Fingers are pointing back to traditional

inventory, which is supposedly performing better.

Before everyone starts jumping ship, i suggest

we step back and look at the bigger picture: the

Adoption curve.

One of my favorite business books is crossing

the chasm by Geoffrey Moore, which i highly

recommend. in it, Moore references a paradigm

developed by Gartner Group, which tracks the

typical pattern of technology adoption. Gartner’s

model characterizes the over-enthusiasm or

‘hype’ and subsequent disappointment that

typically happens with the introduction of new

technologies. hype cycles also show how and

when technologies move beyond the hype, offer

practical benefits and become widely accepted.

The paradigm shows that after a Technology

Trigger (the introduction of a new solution),

there follows a peak of inflated expectations

(e.g. what everyone reading this experienced last

year re: RTB). This is followed by the Trough of

Disillusionment (representing all the naysayers

today). however, what comes next in Moore’s

chart is critical: the slope of enlightenment,

representing real evidence of lift.

Gartner’s adoption paradigm is parallel to the

adoption of Ad exchanges. Ad networks were the

first to adopt the exchange model several years

back, as well as RTB, but agencies didn’t buy into

these new media buying channels as quickly. Today,

agencies are leading the pack because they have

recognized an opportunity to add tremendous

bRian O’KelleyceO, Appnexus

This section discusses the evolution of real-time bidding through the lens of an Adoption

curve, and reveals why the Golden Age for real-time bidding is still ahead of us.

19www.netmining.com

value to their clients. now Ad networks and other

companies are scrambling to launch private Ad

exchanges in a game of catch up.

i believe that this is our enlightenment period, and

i will offer three predictions based on this premise:

➊At least half of the top 50 publishers and

networks will launch a private exchange. At

one point, in the Ad exchange 1.0 world, there

was very little control on the sell side and

Dsps started to lower prices. Today, publishers

are getting smarter and are fighting back.

yield management controls are now critical

components of any technology offering for

auction-based or RTB buying. i truly think this

will be the year of yield for publishers.

➋ The biggest marketers who are embracing RTB

will take it a step further and bring exchange

buying in-house to monetize their proprietary

data. Marketers have a wealth of 1st party data

on their own users, whether gathered through

visits to their own websites or gathered

through their products. savvy marketers will

use this wealth of data to more effectively

message these consumers across the internet.

➌RTB’s traction will only be stymied by increased

conflict between the buy-side and the sell-

side regarding data and transparency. i have

a buy-side client who was hoping to execute

buys anonymously to mask their identity. we

took that request to the exchanges, and their

universal response was, “That’s fine as long as

that buyer doesn’t expect quality inventory.”

This didn’t sit well with the buyer, naturally, and

the dialogue is ongoing. At Appnexus, we sit

in the middle and are agnostic to the outcome,

but we appreciate the valuable perspective

into both buyers’ and sellers’ wants and

needs. it is this perspective that confirms

in my mind that the physical exchange is

going away. it’s awkward to mediate between

buyers and sellers; it’s just a tricky business

model. Therefore, i believe that exchange will

transcend from “noun” to “verb” with buyers

and sellers directly trading with one another

and bearing the brunt of those negotiations

directly.

so why do i think we are entering the slope of

enlightenment? The Demand side platform

(Dsp) and supply side platform (ssp) models are

already starting to change. second generation

solutions are emerging everywhere, including

at my own company. There are more pilots and

more testing of these solutions. conservative

companies are still cautious, but i know we, and

others, are making huge strides in gaining their

confidence.

At Appnexus, we see more than 10 billion

impressions a day run through our platform,

which is enormous growth over the last year. we

are also monitoring twice as many creatives and

demonstrating more RTB traction with agencies. i

know of many clients who can already credit large

portions of revenue to RTB. Real-Time bidding

works for both buyers and sellers. come see

for yourself.


22 Forward

23www.netmining.com

Marketer Data (1st party Data)

Marketer data (also known as “1st party data”) is

just that – any data that is created or owned by

the marketer. Marketers who know how to tap

into their own proprietary data will be able to

identify individuals who are most likely to convert

and discover information about their customers

to be used to deliver more relevant and higher-

performing display advertising.

What it is: Any data proprietary to a marketer,

such as search queries, site visitor data, cRM data

and more.

Where it comes from: A marketer’s website and

analytics, cRM database or any other source of

proprietary customer data.

how it’s used: Marketer data can be used to

improve a wide variety of marketing tactics.

For display advertising, it is most often used

for remarketing. Remarketing (or retargeting)

Dealing WiTh DaTa

The current display landscape revolves primarily around two core components – inventory

and data. inventory provides distribution (where an ad will appear) and data is used to

help marketers find and target the right audiences (who to serve an ad to) and determine

what messaging to serve them for more relevant advertising (what message to show).

As demonstrated in the previous chapter, the marketplace around display has quickly

evolved, creating mass efficiency and multiple lines of businesses, many surrounding

the collection and distribution of data. There are now a number of partners who can

help marketers understand data segments and how to leverage data for targeting. This

chapter provides an overview of common data types and an introduction to leveraging

data for targeted display campaigns.

Marketer Data and 3rd party Data


24 Dealing with Data

is the act of re-engaging with past visitors of a

website through display advertising with the goal

of driving them back to the site to complete an

action. For example, a marketer can target people

who exhibit certain behaviors on their website, like

abandoning their cart, and entice them with an

offer (e.g. “free shipping”) in order to encourage

them to come back and complete the purchase.

3rd party Data

3rd party data comes from many sources, including

publishers, retailers, e-commerce sites or even

offline data providers who have found ways to

utilize their data to target people online. with

the increase of 3rd party data, Data exchanges,

like BlueKai and exelate, have sprung up to

increase availability to marketers and to make it

easier to aggregate the information used to build

audiences.

What it is: Any data that a marketer can

purchase in order to better identify and target

their audiences. Data can include demographic

or psychographic data, past purchase history,

financial data and more.

Where it comes from: Data exchanges or

individual 3rd party data providers.

how it’s used: 3rd party data is used to compile

audience databases or “cookie pools.” For more

on how 3rd party data sources are aggregated to

create audiences, please see chapter 3.

25www.netmining.com

common Data used for audience Targeting

Demographic Demographic data categorizes people socio-economically; for example, where

they live, how old they are or how much money they make. Marketers are keenly

aware of the demographics of their customers based on efforts in other marketing

channels. while this data can have fairly broad reach, it is still an effective way to

drive awareness and consideration in display advertising.

social graph with social data, a person’s interests are inferred based on their connection to

others on social network sites. Marketers can target a graph of similarly minded

people who may share interests in order to expand the reach of their campaigns.

lookalike lookalikes are potential customers modeled after actual customers on a

marketer’s website. Attributes of marketer’s customers are matched against a

larger audience, creating a pool of highly targetable users. This data can help

marketers reach new, prospective customers.

purchaser purchaser data includes information about people’s past purchases and/or items

that they own. Marketers can use this information to up-sell or cross-sell owners of

specific products.

in-Market/intent in Market data indicates an audience that has the intention to take a certain

action, such as purchasing a product or booking a trip to a specific location. This

type of data comes from research sites, shopping or comparison sites, online

travel aggregators and vertical search engines. These sites identify user interests

down to a specific product or travel destination and then sell these users to Data

exchanges.

The chart below identifies common 3rd party data types and their attributes.



The Data Marketing Funnel illustrates how

Marketer and 3rd party data can be used to target

audiences throughout the customer lifecycle. Data

at the top of the funnel, such as demographic and

contextual, reaches a broad audience and can be

a strong driver of brand awareness and site traffic.

Data at the bottom of the funnel, such as Marketer

(1st party) data, reaches a smaller but more highly

qualified audience (past visitors to the marketer’s

site), resulting in higher performance and

conversions for these types of display campaigns.

Marketers should deploy campaigns that utilize

both top of the funnel and bottom of the funnel

data. while bottom of the funnel data will perform

better and deliver higher ROi, campaigns using

top of the funnel data will help marketers broaden

their reach and replenish the bottom of the funnel

by increasing the number of people who visit

their website.

chapter conclusion

Data has become a crucial element in a

marketer’s toolbox. leveraging data helps

marketers find and target the right audience

with the most relevant ad, which leads to higher

performance.

Marketers need to take the time to familiarize

themselves with the types of data available to

create better audience targeting and higher

performance. There is a healthy marketplace

of data experts who can help marketers

understand which data is best to apply to a

particular campaign and target audience.

Demographic

social graph

lookalike

purchaser

in Market/intent

Remarketing

Data Marketing FunnelThe Data Marketing Funnel illustrates how Marketer

and 3rd party data can be used to target audiences

throughout the customer lifecycle.

Reach

perf

orm

an

e

27www.netmining.com

DaTa-DRiVenMaRKeTing: 1sT paRTy

DaTa Vs. 3RD paRTy DaTa

There is currently a good deal of debate around

the value of data for online advertising and

more specifically, 1st party versus 3rd party data.

Just when you thought you had the discussion

framed properly, you have to overlay an additional

complexity of the data source – offline versus

online.

This simple diagram describes the marketing

tactics employed when using various data types.

There are obviously nuances within each cell and

we could debate additional examples, but we use

this framework to keep things simple.

chRis scOgginssvp & GM, Dlx platform, Datalogix

1st party and 3rd party data can help marketers effectively scale their target customer

group or cookie pool. The techniques discussed in this section will demonstrate how to

use 1st party data to target consumers you already know and 3rd party data to find new

sources of qualified consumers.

Targetinguse cases

cRM/Retention acquisition

Website Remarketing

acquisition

1st party Data 3rd party Data

Offl

ine D

ata

On

line D

ata



Let’s also start with the premise that some

data can probably help you better target your

marketing spend. I don’t think that’s very

controversial. The controversy arises when you

have to choose between various data types and

then try to ascribe a value. This remains elusive for

the entire industry, but to be honest, so does the

true value of media (offline and online) in general.

We’ll start with the two 1st party data use cases.

Remarketing works very well. No debating this.

It’s the same technique used by direct marketers

(targeting their existing offline customers or

houseflies) and has been in use for 30+ years.

But neither approach scales, due to either limited

customer lists or website traffic. In online terms,

you can try to find the 100k Unique Visitors (UVs)

that went to your site last month and didn’t

convert, but what about the 15MM relevant UVs

that didn’t even get to your site. Do you just ignore

them? How do you get more consumers into the

top of the funnel? And why does this matter? It

matters because brands still matter and perhaps

now more than ever (given the abundance of

choice that exists within every consumer product

and service category.) Several online analytic

firms have reported the same findings over recent

years – targeted display advertising increases

brand search, brand recall and brand conversion.

People buy what they know and feel an affinity

toward. So back to the key question, “how do I

find more customers?”

One technique is to transform your offline

customer file into online audiences. There are

surprisingly few companies that have this proven

capability. Simply put, these vendors are able to

segment an advertiser’s offline customer list and

append these segments to an online cookie pool

for targeting. We have seen this work quite well

for clients across verticals, leading to a 4x to 14x

growth in ROAS figures. This “offline remarketing”

tactic makes sense – the advertiser is messaging

to either existing clients or “hand-raisers” that

have expressed interest in the brand’s offerings.

Now we move to the 3rd party data options. While

1st party data techniques are extremely effective

at targeting consumers you know, 3rd party

data is used to find new customers (acquisition

or prospecting). However, because there is no

common currency or definition for an online

audience, the key question for any advertiser to

ask of a 3rd party data provider is, “How do you

classify cookies into your segments?” In other

words, what actions or events trigger a cookie to

be labeled a “New Mom”, “Corporate Executive”

or “Luxury Auto Buyer”? Without digging into this

specific issue, you will never really know what you

are buying. In Datalogix’s case, we use a database

of $1.2T in offline purchasing tied to 100M US

households to categorize households (and related

cookies) into a few hundred audience categories.

A cookie is labeled “New Mom” because she buys

a lot of baby clothing, formula and diapers.

29www.netmining.com

every data vendor has its own methodology

for grouping cookies into audiences – whether

the data you are buying is from an offline or

online source, you must understand how these

audiences are constructed so you know what you

are buying. if used properly, 3rd party data can

be an extremely helpful tool to augment your 1st

party data and drive more consumers to various

stages within your purchasing funnel. These data

sets help you “fish in the right ponds,” avoiding

the millions of consumers that are less likely to

be interested in your products, which is, after all,

what effective online targeting is all about.

Datalogix and netmining have worked together

to bring 1st party and 3rd party data options to

netmining clients for the last year. we have

realized measured, improved results for direct

response (DR) and brand advertisers. For DR,

it’s about using data (1st or 3rd party) to drive

conversions, while brand advertisers tend to

focus on the composition and construction of

the audience segments. They want to be certain

that they are getting their message in front of the

right consumer groups. with the right data and

media partners, any marketer can leverage these

capabilities today.

Two key takeaways:

if you aren’t using these techniques today, you

are missing out. They work and they make sense

to clients.

Ask your media and data partners specifically

how they construct their targeting segments.

if they can’t answer in clear, concise language

that is easy to understand, look for another

provider.



The growth and success of social media platforms has created a vast quantity of data

about a marketer’s audience – who they are, what they do and what they like. There

are many ways to utilize this data to deliver targeted advertising. This section takes

a look at one form of Social Targeting which uses technology to observe patterns of

where customers cluster on the Web and builds models to help marketers identify new

customer prospects who share similar brand affinities.

SOCIALTARGETING

Social Targeting is commonly understood to

be simply delivering a marketing message to

the friends of your customers. There is, however,

a new model of Social Targeting that is potentially

more powerful, if not immediately obvious. This

new model for audience creation is based on the

social science principle that people with similar

interests tend to cluster into groups with shared

brand affinities and purchase patterns. This model

departs from the more obvious model of mining

social interactions to find good prospects for

your campaigns. Ultimately, the social science

version of Social Targeting is both very intuitive

and enormously powerful. By observing the

patterns of where your customers cluster on the

Web, Social Targeting technology can establish a

unique Social Signature for your brand and use

that Social Signature to identify your best new

customer prospects.

The broad arena of using various forms of social

data to build audiences is gaining currency among

major marketers. Facebook’s tremendous success

and the burgeoning activity at LinkedIn, Twitter,

Groupon, Living Social, Foursquare and other

social media have convinced most marketers

that they need a social strategy and need to

target an audience based on the new intelligence

derived from social media. The Social Targeting

TOM PHILLIPSCEO, Media6Degrees

31www.netmining.com

technology invented by Media6Degrees takes the

concept that the web is increasingly about people

and not sites, a place that captures all facets of

the personalities of its users and harnesses it in

the most privacy-friendly and scalable way for

marketers.

social Targeting technology allows us to build

unique audiences for each of your campaigns by

targeting people who cluster with your current

customers around the web, serving them a

message and then using conversion feedback to

continuously refine the audience.

here’s how it works:

FiRsT: identify your brand’s social signature.

place pixels on your site and show us a sample

of your best customers. we identify sites where

your customers cluster. sites with the highest

cluster density determine your brand’s social

signature.

secOnD: Find your best prospects by

identifying other users who closely match your

brand’s social signature. we have partnerships

with publishers who tell us when your customers’

cookies arrive on their sites. Users who gather at

the same places where your customers cluster

are most likely to convert. close match = better

prospect.

ThiRD: execute your buy. prospects matching

your brand’s social signature visit sites in the

Ad exchanges. we evaluate cookies and score

them for their likelihood to convert. if a cookie

has been to the places your customers cluster,

the score is high and we show them your ad.

FOuRTh: Track conversion results via our

feedback loop. Refine your social signature.

Refresh each user’s score to optimize

performance in real-time.

The result is an engine that identifies new

customer prospects with an efficiency that tends

to surpass other targeting methods.

we view social Targeting as a breakthrough that

finally harnesses the real power of digital media,

extending audience identification beyond the

traditional blunt instruments of demographics,

context and intent. The power of social Targeting

is that it is agnostic to those intermediate

measures of audience relevance, and that it can

be deployed at scale across brands, sub-brands

and individual offers with equal efficacy.

social Targeting is one important way that digital

media is finally delivering on its demand creation

potential for marketers.


34 Forward

35www.netmining.com

There is no “one-size-fits-all” approach to building

an audience that will work for everyone. Marketers

have different target audiences and campaign

goals, and so the data used for campaigns should

be customized to each brand and based on a

marketer’s own proprietary data and unique goals.

There are two primary ways that data is used to

compile audiences for display targeting –

➊audience Targeting: Audience targeting, also

known as behavioral marketing, is a rather broad

term for developing display campaigns that

target specific segments of the population. More

specifically, audience targeting involves using

3rd party data to segment consumers based on

their interests and intent. There are many forms

of data that can be used to determine people’s

interests and intent, including social graph data,

past purchase history, search data and more

(as reviewed in chapter 2). Most marketers

experiment with many different types of data

to see what performs best and more often than

not utilize partners who can help them combine

different types of data to build a more complete

audience.

➋Remarketing (Retargeting): Remarketing, also

known as retargeting, is the act of finding a

marketer’s past website visitors across the

web and delivering them display advertising

with the goal of driving them back to the site

to complete an action. while remarketing is

often categorized as a type of audience or

FROM DaTa TO auDience

chapter 2 reviewed different types of data and their use in various targeting tactics like

remarketing, lookalike targeting and more. however, using a singular data set is often

insufficient for achieving the size and scope of a marketer’s desired target audience.

Many technologies, such as those employed by Ad networks, are able to aggregate a

multitude of data to build out a desired audience based on a marketer’s performance

or brand goals. This chapter provides a deeper look into ways that data is aggregated

and applied to create a desired audience.


behavioral targeting, it is actually quite different.

While audience targeting uses 3rd party data,

remarketing relies solely on a marketer’s own (1st

party) data.

Audience targeting usually reaches a larger

audience than remarketing campaigns, so it can

be used to drive awareness, interest and intent.

Remarketing typically drives better performance

(conversions, CTR, CPA, ROI) since it’s targeted

to an audience who has already expressed an

interest in a marketer’s products and services.

Below are two examples that illustrate how data is

used in audience targeting and remarketing, and

how these campaign tactics can achieve specific

marketing objectives.

Case 1: Audience Targeting

A company marketing luxury sedans wants to target

men with a high household income (HHI) who are

above age 40, have no young children, and are in

the market for a new car. The goal of the campaign

is to generate a high volume of leads while achieving

a target cost-per-lead (CPL).

How does the company effectively target that

specific audience using data and technology, while

ensuring it meets its CPL requirements?

Approach: Broad Reach Campaign to

Drive Leads

Marketer: Manufacturer of Luxury Sedans

Target Audience: Male Age 40+, HHI $150K+,

in-market for new car

Program Objective: Drive online leads (sign-

ups for test drives) among target audience

The chart on the right illustrates how various data

types can be aggregated to create a targetable

audience, or audience pool, that meets the

marketer’s target.

Process for Audience Targeting

➊ By connecting with Data Exchanges, the Ad

Network (or DSP) is able to identify the various

data sets that match up against some or all of

the marketer’s demographic requirements (e.g.

HHI, age, etc.)

➋ Technology algorithms test the various

combinations of these data points collectively to

identify and compile the desired audience.

➌ Once the audience has been identified, the Ad

Network will utilize Ad Exchanges and other

inventory sources to locate the desired audience

across the web and serve advertising to them.

36 From Data to Audience

37www.netmining.com

case conclusion

Demographic Data

MarketerData

SocialGraph Data

In-Market/Intent Data

Audience Engine

Marketer’sAudience

High HH1Age 40+

No Young ChildrenIn-market for a new car

HH $150K Luxury Shoppers

Car Models viewed inmarketer’s website

Fan of brandon Facebook

how Data is Used to create an audience

To make the best use of the wealth of data

available, find a partner that has relationships

with multiple Data providers, the experience and

technology to compile this data into an audience

pool customized for your brand, and the right

inventory partnerships to find and target your

audience at scale.



Case 2: Remarketing

An online retailer of adult and children’s apparel

wants to reach past website visitors and cart

abandoners and encourage them to come back to

their website and convert. The goal of the campaign

is to generate sales and the marketer has a return

on ad spend (ROAS) target they want to meet.

What is the best way for this marketer to reach its

site visitors and drive sales at a high ROAS?

Approach: Advanced Remarketing Campaign

to Convert Past Website Visitors

Marketer: Apparel eRetailer

Target Audience: Past Website Visitors

Program Objective: Drive sales while

achieving target return on ad spend

Since remarketing is solely targeted to a marketer’s

website visitors, 3rd party data aggregation (as

shown in the example above) isn’t necessary. Rather,

performance and campaign results depend entirely

on the way a remarketing provider approaches

how they use data for campaign deployment and

optimization.

Standard vs. Advanced Remarketing

Standard remarketing tracks only the pages a user

visits on a website. This level of data does not provide

a complete picture of a visitor’s real interests and

propensity to buy. Today, more advanced forms of

remarketing exist that allow advertisers to gather

more detailed data about the visitors to their site.

This deeper level of data helps advertisers better

segment the visitors they want to serve ads to and

allows them to customize advertising creative to

each user’s individual product interests.

39www.netmining.com

For example, a visitor to the retailer’s website

might view the “Men’s clothing” page and quickly

move onto the “women’s Dresses” section, where

they spend five minutes browsing and then put

a dress into their online shopping cart. standard

remarketing would know that this visitor had

viewed “Men’s clothing” and “women’s Dresses.”

Advanced remarketing technologies would have

tracked enough detail about the time spent on

the pages, products viewed and cart history to

properly segment this visitor as someone with an

interest in “women’s clothing” who is very likely

to purchase a dress.

By using advanced remarketing, the retailer

can better segment their site visitors based on

product interests and interest-level or likelihood

to purchase. Armed with this information,

the retailer can choose to target only specific

segments (for example, if they are having a

dress sale they may only want to reach visitors

interested in dresses with this messaging) and

can dynamically customize advertising creative

to reflect each user’s unique interests.

A challenge that online display encountered when

catching up to its search counterpart was figuring

how to enhance the relevancy of banner creative.

Unlike search marketing creative, which is text-

based and easily produced in numerous iterations,

it was not feasible for any marketer to create dozens

of banner creative variations to match the variety

of their display media plan. As remarketing and

audience targeting began to proliferate, display

creative needed to evolve.

This is where dynamic creative technologies came

into play. They allow marketers to create endless

variations of banners with minimal expense. A

stable of templates can be set up to adhere to the

look and feel of the marketer’s branding guidelines,

dynamic text and imagery, and automatically update

with product information to eliminate the need for

a creative team’s constant involvement. Testing

different variations of these elements not only helps

isolate the best converting versions, but also allows

the marketer to tie the creative and message directly

to the audience target and to a specific user.

For example, a budget hotel chain remarketing to

business travelers can create not just unique banners

for each destination a user is looking to travel to, but

also promotional messages based on whether they

are a loyalty member of that hotel. in addition, the

banner can display up-to-date room rates based

on availability in the user’s location. Tying message

relevancy to targeting is shown to be an effective

tactic in driving conversions and brand awareness.

audience and Message Relevancy



case conclusion

Advanced remarketing uses more of a marketer’s

own website visitor analytics to create very detailed

audience segments for targeting. in addition, this

form of remarketing allows for highly customized,

dynamic display messaging that is tailored to each

user’s unique product interests and likelihood to

convert.

Generally, advanced remarketing is more highly

targeted and relevant to the user, thereby reducing

the need to deliver more impressions (and waste

budget) powering higher click-through and

conversion rates.

chapter conclusion

Data can be applied in various ways to achieve

different end results for a media campaign.

Marketers need to consider their specific goals and

target audience, and adjust the data mix accordingly

to make sure it is customized to meet their needs.

Audience targeting and remarketing are the most

common ways that data is being used to compile

audiences for display targeting, and they often

work best hand-in-hand. Audience targeting can

achieve reach and awareness, and drive new traffic

to a marketer’s site. Remarketing helps convert

more of these visitors, and drives performance

goals such as revenue, ROi and conversions.

Today, marketers have access to more advanced

remarketing solutions that provide a fuller picture

of each visitor’s behaviors and interests, which is a

major advancement from standard remarketing that

provides a narrow profile of only the pages visited.

These advances lead to better visitor segmentation

and personalized advertising creative, which results

in higher conversion rates.

successful campaign performance is directly

impacted by the data used behind the scenes and the

tactics with which they are implemented. Marketers

who have a solid, foundational understanding of the

data available to them and tactics to deploy that

data will be better prepared to advise their partners,

and adjust campaigns to better reach their goals.

41www.netmining.com

Objective:

24 hour Fitness, a nationwide gym chain open

24/7, was seeking new ways to grow membership

sales online, both nationally and in campaigns

focused on specific geographic areas. They were

aware of the typical brief life-time-value (lTv)

of a customer and wished to drive membership

enrollments of higher quality customers that

would stick with the gym for many years.

solution:

24 hour Fitness utilized netmining to increase

response rates via enhanced targeting techniques.

netmining uses a real-time scoring engine to

identify and profile all site visitors, and create

highly qualified audience segments based on

their engagement metrics. The engine provides

detailed visitor behavioral information (i.e. time

spent on page, recency and frequency of visits)

to determine a visitor’s true buying interest - the

customers that show the most interest are more

likely to become long-lasting members. 24 hour

Fitness leveraged this data to rank the users

who visited 24hourfitness.com but did not buy a

membership and delivered ads only to those who

had the highest engagement with the site. This

smart retargeting eliminated impression waste and

drove the best impression to sales ratio and the

lowest cpl on 24 hour Fitness annual media plan.

The campaign ran for twelve months and became

more successful the longer it ran. The retargeting

audience pool grew and new users were added

daily. The growing number of users helped to

increase the accuracy of the targeting engine.

each user’s browsing and buying behavior

provided additional data that was fed into the

algorithm to refine its ability to identify those that

had the highest propensity to buy.

Based on the data obtained from each user’s

profile, the marketer retargeted the highest

scoring customers with display advertising that

offered a 7-day free pass within the banner

itself to drive online memberships. The creative

contained a simple form with minimal fields to fill

in to facilitate an easy registration process. The

24 hOuR FiTness:ReMaRKeTing caMpaign



marketer tracked the passes printed, redeemed

at clubs and full memberships obtained through

these passes to determine the effectiveness of the

campaign. This data was also collected and fed

back into the scoring engine to accurately target

future users.

netmining helped the marketer set up local,

geo-targeted remarketing campaigns, such as a

two month push for new york city membership

enrollments.

creative samples:

Results:

netmining successfully tailored a remarketing

program for 24 hour Fitness that generated

leads and sales cost-effectively. within twelve

months, netmining was driving 10% of the brand’s

total marketing leads and accounted for 40% of

membership sales with just 15% of the budget initially

assigned to netmining’s remarketing campaign.

netmining performed better than most other

marketing investments 24 hour Fitness worked with

during the campaign flight, including paid search

and all other display programs. netmining drove a

66% higher ROi than all other media channels.

netmining’s advanced smart RemarketingsM

consistently converted the most visitors by

efficiently targeting only those with the highest

buying propensity.

44 Forward

45www.netmining.com

Driving Branding Objectives

Typically, audience buying for direct response

initiatives is largely focused on finding users that

are proven to have an affinity for or an “interest” in

what a marketer has to offer. By contrast, building

audiences for branding is usually about increasing

awareness and consideration among a wider

audience of “potential customers” or people who

meet a marketer’s target demographic (e.g. Men

18-34 interested in sports cars). Many times it is

more about capturing new customers and their

attention in a unique and creative way.

AUDIENCE TARGETING

FOR BRANDINGAudience targeting has been primarily utilized for direct response campaigns where

marketers measure success based on a ROI goal, like cost-per-acquisition (CPA) or

overall return on ad spend (ROAS). Because audience targeting can now efficiently reach

highly specific and desirable audiences at scale, it has the potential to play a vital role in

attracting more brand dollars towards display advertising and online media.

This chapter illustrates the key factors marketers should consider when using audience

targeting for branding.

46 Audience Targeting for Branding

Audience targeting for branding can be used to

achieve a variety of objectives, such as:

Driving awareness of a product, marketing

program or other initiative among a brand’s target

audience online

increasing familiarity and consideration among a

marketer’s target audience

creating brand influencers

Understanding where a brand’s complementary

non-endemic audiences are

how to evaluate

Marketers interested in running brand advertising

campaigns should work with partners like Ad

networks or Dsps to evaluate four key areas:

Audience, inventory, creative canvas and

Measurement and Analytics. Knowing the right

questions to ask will help marketers determine if

the desired audience will be reached and the brand

will be safe.

audience – what audience do i want to reach

to achieve my objective and what partners are

best equipped to help me utilize data to find and

target these audiences at scale?

inventory – what types of inventory do i want my

brand associated with and what types of inventory

am i not comfortable seeing my advertising run

on? how will the inventory in my program be

verified to ensure that it’s brand safe and meets

my stated requirements?

creative canvas – what creative executions are

available to help me engage the target audience?

Measurement and analytics – what types of

measurement studies or analytics are available to

help me monitor the efficacy of the campaign as

it relates to my objectives?

Audience

The types of data employed in finding and building

out an audience for a brand campaign are not

that different from a direct response program.

Demographics, search history, past purchases and

other types of data are also used for branding – it’s

how they’re employed that varies based on direct

response versus brand goals. For example, an

electronics manufacturer can continue to leverage

What auDience do

i want to reach?

What cReaTiVe execution will

most engage the audience?

What MeasuReMenT & analyTics

studies will help monitor the

efficacy of the campaign?

What types of inVenTORy do i want to run on?

47www.netmining.com

its customized audience pools to stay top of mind

and run creatives without specific calls to action.

The primary goal in this instance isn’t to drive

conversion, it’s to enhance awareness.

Inventory

Context and placement brands are important

factors for brand marketers. Many brands have

strict guidelines on the type of content they want

(or do not want) their brand associated with.

They also often prefer premium, above the fold

inventory to maximize the chance of the user

viewing and interacting with their ad. However,

marketers need to carefully consider strictness

of inventory guidelines and weigh the resulting

impact on the scale and reach of their programs.

Publishers are realizing that the new display

ecosystem can help streamline the process of

matching brands with the right inventory. This

relationship resembles the standard spot media

buy with the simplicity of buying through an

Ad Exchange.

Verification

Concerns over appearing next to inappropriate,

user-generated or mature content have held

back brand dollars. In recent years, verification

companies have emerged to address this problem

and can be deployed to audit placements. These

services identify the location of every ad being

served and flag any inappropriate sites and pages

that could harm or embarrass a marketer.

Brand marketers often require their partners

to segregate their inventory into brand safe

categories – well-lit areas of their network where

brand marketers are comfortable displaying their

ads. Grouping of high value sites, commonly

known as “Brand Safe,” are being packaged

together to alleviate marketers concerns over

where their ads are being shown. These inventory

packages command premium CPMs and increase

a Publisher’s yield.

If evaluating a partner such as an Ad Network, for

example, ask about integrated media verification

services, such as DoubleVerify and AdSafe.

These companies also monitor other campaign

specifications, such as placement on the page

(e.g. above vs. below the fold), geographic

specifications and IP, quality of content (e.g.

user-generated vs. premium content), share of

voice on the page and more.

Creative Canvas

Branding objectives, such as driving increased

awareness, purchase intent and loyalty, require ad

creative that’s engaging and impactful. In recent

years, ad format advances have been made to help

fight banner blindness and encourage engagement.

Rich media has become widely incorporated in

campaign strategy planning. These additional

formats give marketers a sizable and flexible

creative canvas that allows for better storytelling

and enhanced interactivity. Popular rich media


formats include dynamic display, expandables,

overlays and floating ads. video has recently emerged

as a strong contender for ad dollars with the rise of

brand-sponsored content and social media.

Measurement and Analytics:

while brand marketers want to see traditional online

metrics such as ROi, cTR, impressions-to-revenue

and impressions-to-conversions for campaigns,

the real test of a successful branding campaign is

determined by how well it meets a marketer’s brand

objective – did it drive increased purchase intent or

awareness? Brand studies are one way to measure

this type of performance.

These studies are effective for insights into how

consumers react to ad creative and messaging, if

ads are reaching the right audience and if there

is any lift in purchase intent or awareness. Brand

studies are a standard offering from many networks

and publishers as a value-add to working with them.

Marketers should ask these providers about their

brand studies to evaluate if they’ll measure the

necessary performance indicators.

chapter conclusion

Brand marketers are seeking an all-encompassing

solution to reach target audiences at scale using

high impact creative in relevant, brand safe

environments. challenges remain for brands looking

to take advantage of audience targeting and

data-driven display.

Audience verification is in its infancy and scale

remains a challenge. publishers and inventory

partners offer varying degrees of inventory control

and transparency. in addition, ad units to date have

been limited in their creative flexibility. new iAB-

approved ad units that offer more flexibility and

creative license for brand advertisers are only now

being slowly rolled out.

These challenges are actively being addressed by

many in the industry who recognize that increased

adoption of display and audience targeting for

branding may be the key to shifting major dollars to

the digital realm.

49www.netmining.com

Media verification gives advertisers confidence around where their ads are being

displayed and is one way to ensure brand safety and drive campaign performance online.

This section will explain how media verification works and why it is important for brands.

WhaT is OnlineMeDia VeRiFicaTiOn?

Reaching an audience of 215 million online

viewers should be an advertisers dream, but

advertisers often resist moving ad dollars to the

web because it lacks accountability, transparency

and compliance.

Traditionally, verifying advertising delivery was as

simple as turning on your television or visiting your

local newsstand to see your commercial or print ad

run. in the complicated web of online advertising, it’s

not that simple. Ad networks, Ad exchanges, Dsps,

yield Optimizers and other vendors have created

efficiencies in online advertising marketplace,

as well as additional complexity between the

advertiser and the moment ads get served.

A survey of more than 140 agency executives for the

largest brands in the country found that 72.4% chose

brand safety over scale. Advertisers and marketers

are more interested in reaching the right audience

on the web in an accountable and transparent

way. networks and publishers are concerned about

compliance, trust and accountability too, and

are looking for ways to ensure their advertising

inventory is being best monetized and meeting the

needs of their advertising customers.

One way to ensure brand safety online is through

media verification—a process that analyzes and

verifies where and in what context ads appear

online and ensures ad campaigns run as intended.

here are the aspects of verification that you should

know before starting the process and conversation

with a media verification partner:

➊What can be verified?

On average, 30% of online ads are non-compliant—

they do not appear where, when or how they are

supposed to. That means a third of your ad budget

is wasted or even working against your brand if ads

appear next to pornographic or controversial content.

ORen neTzeRco-Founder & ceO, Doubleverify



Media verification tracks what sites and pages your

campaign is running on, where on the page (above

or below-the-fold) it appears, ads that run on

international sites, ads that run next to competitor’s

ads and ads that are fraudulent. The most robust

solutions in the market track for non-compliance

with regards to inappropriate content, geo-targeting,

ad placement, competitive separation and fraud

detection.

➋big guys?

Major publishers accept or certify verification vendors

to classify and track ads on their sites. The majority of

inventory is purchased on AOl, Google, yahoo! and

Msn. if providers aren’t certified on these sites, then a

large percentage of a media buy is unverified.

➌content classification?

A common complaint digital advertisers have is that

ad campaigns did not run next to appropriate or

“safe” content.

you’ll want to know how content on a page is

analyzed and deemed safe. what variables are

taken into account? what are the red flags? what

parameters are used to determine if a site is brand-

safe? Does the verification technology adhere to the

iAB’s standard classification system or do they rate

publishers themselves?

vague specifications align your product with too

much unwanted content. stronger limitations

suffocate your campaign. Find the correct balance

and make sure you’re not tripping over your own feet

trying to fill an insertion order.

➍ block or Monitor ads?

Media verification is only as good as its ability to

see through nested iframes and its classification

component. if technology can’t provide accurate

insight into the nature of the content where your ads

are being placed, then you’re not going to get the

best results—oftentimes your campaign will suffocate

as it is subjected to inaccurate blocking and incorrect

content categorization. Make sure the ability to see

through nested iframes is above 95%.

➎ how to Remediate?

Achieving 100% compliance on every single ad

is unrealistic in the complex online advertising

ecosystem. Renegade ad placements are expected,

especially for larger orders. All parties involved

need to remediate issues as efficiently as possible

to continue with a successful partnership. Real-

Time reports showing how ad buys are performing,

whether it be by analyzing page placement, collisions

with competitors or over-saturating specific sections

in addition to a knowledgeable team to work with

your partners on remediation are the tools you need.

These tools help you stay ahead of potential non-

compliance bottlenecks and give your team a head

start in correcting current and future insertion orders.

with the web audience rapidly growing, the need for

verification services has also grown. Marketers want

to guarantee their dollars are working for, and not

against, them. And publishers and networks want to

make sure they are driving the best performance for

their advertisers. Understanding media verification

empowers your team to get serious about staying

brand-safe while deploying that ad campaign you’ve

worked so hard to put together.

52 Forward

53www.netmining.com

There’s a cultural component to ensuring

privacy. One of the paradoxes of working in

online advertising is the interdependency and

fragmentation that exists. even the simple process

of buying, targeting, delivering and reporting on

a display ad often takes teams of people across

different organizations to execute. Most of us take

this as both a given and a cost of doing business

in this space.

All parties involved in this ecosystem – from

the agencies and marketers to the publishers,

Ad networks, platforms, data companies and

other vendors – need to share responsibility

for managing and ensuring privacy compliance

across the business ecosystem.

Given the interdependencies that exist in our

business, no one group can ensure privacy

compliance on their own. This is why all parties

must ensure these guidelines are upheld.

pRiVacy

what’s happening around privacy impacts everyone in online advertising -

marketers, publishers, brands, Data providers and beyond. The industry as a whole has been

battling the FTc, proposed congressional legislation, and public misperception around

targeting, all while trying to self-regulate.

For the first time our industry has to truly work together to protect our

sustainability. industry-wide self-regulation requires support from all parties, including

marketers, to stem off un-informed government rulings that could, literally, take us back

to square one.

privacy takes a Village


54 privacy

ways for marketers to protect themselves:

Only work with media partners who are

members of the network advertising initiative

(nai) and/or the Digital advertising alliance

(Daa).

companies who join the nAi are required to

adhere to privacy standards that have been

encouraged by the Federal Trade commission.

when you partner with a company that is not

a member of the nAi or DAA, you not only

impede the progress of self-regulation for our

entire industry, but you put yourself at a much

greater risk for a privacy meltdown.

support enhanced notice

enhanced notice is a concept where consumers

are provided a notice of online behavioral

advertising outside of traditional privacy

policies. The concept was initially conceived

by the FTc and has been incorporated into

industry standards espoused by the nAi and

DAA. The iAB, DMA, OpA, AAAA’s and AnA

have signed onto enhanced notice on behalf

of their membership.

enhanced notice requires that the Advertising

Option icon be placed on display ads which are

targeting using Online Behavioral Advertising

(OBA). netmining works with compliance

partner evidon to ensure the Advertising

Option icon appears as necessary.

enhanced notice AlsO requires the

Advertising Option icon (or a link that reads

“Ad choices”) appears at the footer of any

page where data is being collected for OBA

purposes.

This brings us to our next piece of privacy

advice: ensure that your website privacy

disclosures are compliant.

Advertisers, publishers (and agencies) need to

ensure that their website privacy disclosures

are an accurate reflection of your privacy

practices and are in compliance with industry

standards.

Advertisers don’t always think of themselves

as publishers. however, when an advertiser

collects and/or enables third parties to collect

data on their sites for remarketing and other

forms of OBA, this needs to be disclosed.

Advertisers can ask their partners to provide

sample language for their sites. This language

should always include a link to the nAi

opt-out site.

where data is being collected on a web page

for OBA purposes, that web page should have

an enhance notice link at the footer.

55www.netmining.com

here are the two steps for ensuring enhanced

notice at the footer of each web page.

➊ step 1: provide a link at the footer of every

web page to indicate participation in the self-

Regulatory principles for Online Behavioral

Advertising. The link should include: 1) the

Advertising Option icon that can be licensed from

the Digital Advertising Alliance at http://www.

aboutads.info/ and 2) the phrase “Ad choices.”

➋ step 2: when the user clicks on the link

provided in step 1, the user should be taken to

a page that includes additional information on

Online Behavioral Advertising and includes an

opt-out link, such as http://www.aboutads.info/

choices/

Advertisers can also work with compliance

vendors such as evidon and TRUsTe to provide

an enhanced notice at the footer.

chapter conclusion

Many steps are being taken by the government

and members of our industry to reach a resolution

around targeting that makes all sides happy.

Audience targeting is a significant reason our

industry is experiencing growth. Marketers can

work with providers to ensure alignment with

industry-supported guidelines and integrate the

appropriate consumer-facing messaging.

www.aboutads.info/

www.aboutads.info/

www.aboutads.info/choices/

www.aboutads.info/choices/


56 privacy

pRiVacy & ObaselF-RegulaTiOn

privacy is a hot topic issue these days and

you hear about it most places you look – in

the media, in D.c., and in the industry. privacy

issues in online advertising came to a head

in February 2009 when the Federal Trade

commission released a staff report calling for

more transparency into and control over how

consumers’ data is used in online ad targeting.

in response to this call for more transparency,

a cross-industry coalition composed of the

American Association of Advertising Agencies

(AAAA), American Advertising Federation

(AAF), Association of national Advertisers

(AnA), Direct Marketing Association (DMA) and

internet Advertising Bureau (iAB) created the

self-Regulatory principles for Online Behavioral

Advertising. The Digital Advertising Alliance

was formed in October 2010 to address the

implementation of the self-Regulatory effort,

while the DMA and counsel of Better Business

Bureaus (cBBB) were charged with leading the

enforcement effort. The DMA and cBBB will be

using a monitoring platform provided by evidon,

as well as consumer and competitor-based

complaints to aid in enforcement.

cOlin O’Malleyco-Founder, vp strategy and policy, evidon

One of the most important and relevant issues concerning our industry today is that of

privacy and self-regulation. This section will explore privacy rules and regulations, what

these mean for our industry and for marketers, and how marketers can use self-regulation

and transparency to build a stronger relationship with consumers and brand fans.

57www.netmining.com

The self-Regulatory principles for Online

Behavioral Advertising (OBA) impacts any

company leveraging 3rd party behavioral data;

this can include anyone in the online advertising

ecosystem from brands to website owners, from

networks to agency trading desks. The principles

define OBA as “the collection of data online from

a particular computer or device regarding web

viewing behaviors over time and across non-

affiliate web sites for the purpose of using such

data to predict user preferences or interests to

deliver advertising to that computer or device

based on the preferences or interests inferred

from such web viewing behaviors.” Advertising

tactics such as retargeting and 3rd party audience-

based buying are great examples of OBA.

To demonstrate compliance with the program,

brands need to provide enhanced notice

and choice to consumers on campaigns and

owned websites where third party behavioral

data is being used or gathered. notice usually

consists of the Advertising Option icon ( ) and

accompanying Adchoices text. Behind this notice,

the brand should provide the consumer the ability

to opt out of future behavioral targeting from the

applicable data providers. Many brands choose

to work with a DAA-approved provider such as

evidon to manage the technical specifics of the

implementation of notice and choice and to

ensure a best-in-class user experience.

leading brand marketers see the self-

regulatory program as an opportunity to build

trust with consumers by providing a new

layer of transparency and control over their

online experience. notice becomes a signal to

consumers that the brand cares about consumer

privacy and has nothing to hide, in addition to

being OBA compliant. consumer research from

november 2010 by evidon shows that 67% of

consumers feel more positive towards brands

that give them control including opt out options,

and 36% are more likely to buy from transparent

brands. working with a provider such as evidon

allows brands to benefit from consumer brand

equity created from a robust notice experience,

while ensuring a consistent level of information

and centralized audit trail across all media buys.

Of course, the landscape has hardly remained

static since the arrival of the program. consider

the following milestones over the last 8 months:

The FTc issued a new staff report in December

2010 calling for the self-regulatory program to

show more rapid progress and supporting a

new Do not Track mechanism

The BBB and DMA launched their self-regulatory

enforcement programs

Mozilla, safari, and ie all announced (or

otherwise leaked) embedded support for

Do-not-Track headers

evidon surpassed 30 billion in ad notices served


58 privacy

The iAB europe announced an eU self-

regulatory program

Bills addressing online advertising privacy

have been introduced in congress with

bipartisan support, including the Kerry &

Mccain ‘commercial privacy Bill of Rights,’

Representative stearns’ ‘consumer privacy

protection Act of 2011,’ and senator Rockefeller’s

‘Do-not-Track Online Act of 2011’

The FTc is already armed with sufficient

authority to regulate OBA, and they remain the

most significant governmental force monitoring

the market. Browser based DnT mechanisms

represent a new influence on the market,

ostensibly operating on behalf of the consumer,

with the potential for an even greater impact than

government. The bills circulating in congress,

while they gain the most headline coverage and

have the potential for significant impact, are

hard to handicap, both in substance and timing.

perhaps more importantly, they are being written

with OBA self-regulatory program in mind, and

several have safe harbor provisions for companies

that participate in the program.

so, through all of the far-reaching noise, what is a

marketer to do? smart marketers are focusing on

what they can control and thinking strategically:

➊lead with transparency as a brand strategy, not

just a compliance strategy.

➋ Get with the self-regulatory program. in the

last 8 months, the self-regulatory program has

come of age. it’s critical for the preservation

of the OBA industry, and its participants are

already being recognized as leaders by the

BBB, congress, the media and agencies,

through their RFps.

we can’t predict the future, but we can focus on

core marketing principles and take ownership of

our relationship with the consumer. And while the

firmament around Dc, Brussels and the browser

manufacturers continues to settle, our best

weapon against business disruption is an effective,

broadly adopted self-regulatory program.

60 Forward

61www.netmining.com

Direct response dollars have been a major catalyst

for the state of our growing display business, but

brand budgets will be the real game changer for

data-driven display.

Advances in technologies, such as across hyper-

targeted online video, digital television and social

media, are finally convincing brand marketers to

take a closer look at how data can deliver more

impactful digital advertising.

what’s more, many in the industry are actively

working to encourage conversions and

consensus around proper measurement and

privacy standards, which helps provide brands

the reassurance and approved standards they

need to significantly shift more display to their

media mix.

Brands are investing heavily in online activities

to get more social and interactive with their

audiences. Online advertising plays a significant

role in their broader brand marketing mix. The

industry can expect larger budgets, longer

campaign flights, engaging creatives and more

consistent brand dollars to flood the market.

For more on future developments in data-driven

display, we asked industry insiders spanning

the market for their perspectives on the

developments ahead:

WhaT’s neXT FORDaTa-DRiVen Display?

The display landscape is continuously evolving with many technology innovations still

to come. Moving forward, much of these innovations will address brand marketers’

needs around measurement, standards and transparency to attract more dollars to

online advertising.


62 what’s next for Data-Driven Display?

scott portugal Vp business Development contextWeb

Audience targeting will cease to exist as a stand-

alone tactic – it will become the entire media

plan, with the likes of social/contextual/search/

retargeting mechanisms all used in cohesion. we

will finally settle on a few core “value” metrics

(exposure value, engagement value, click value,

conversion value) that help marketers better

understand user movement down the decision

purchase funnel, creating a holistic digital

audience strategy. with publishers building out

private exchanges, real-time audience buying in

display, video, mobile, and social will be utilized

as a brand vehicle as much as a performance

tool. publishers will self-declare “sponsorship”

packages with price floors in real-time, allowing

for more efficient deployment of real-time

budgets into brand safe environments. This will

lower the cost of getting campaigns to market

(on the sell side, too), meaning sales teams will

be able to focus more on mid and long tail buyers

who are currently underserved outside of a few

local sales teams. strong RTB usage today means

strong local budgets tomorrow.

Jeff huter Vp agency Development eXelate

Too often, 3rd party audience data is viewed as a

simple means to achieve performance lift, which

leads to a short term evaluation on a simplistic

pass or fail grade system and overlooks the larger

benefits of 3rd party data. looking ahead, 3rd

party audience data will prove to have additional

value to a marketer’s overall communication plan.

Marketers must have a continual dialog with the

audience segment they are targeting as consumers

can evolve into buyers. in addition, understanding

in-market/intent behaviors aggregated from

outside your domain provides valuable insight

that can fuel a more holistic communication

strategy. inspection of the audience segment

will reveal additional characteristics about these

shoppers that may be worth considering as a

direct targeting attribute. The comparison of

particular brands to this group may also inform

underutilized audiences for targeting prospects.

effective audience targeting in the future will

be graded on a new system that considers

contribution and performance throughout the

semester, not just the final exam.

63www.netmining.com

philip smolin Vp product & Marketing Turn

The digital advertising industry is undergoing a

rapid and dramatic evolution. it began with the

introduction of auction markets, continued with

the advent of Dsps and further accelerated with

the introduction of RTB. in fact, the adoption

rate of RTB has been explosive, with almost 50%

of display advertising now available through

RTB. The next evolution of RTB has already

begun with the introduction of private seats

and ‘prioritized bidding’. This new functionality

enables publishers to make premium inventory

available to select buyers at pre-defined prices.

But it’s the third evolution of RTB which will be

the most interesting.

in 2012, RTB will expand further to begin

supporting what are called ‘forward markets’.

Today’s Ad exchanges are spot markets where

each impression is sold in real-time (and without

any guarantee of future delivery). in contrast,

forward markets will enable a buyer to view what

impressions a publisher has for sale one day, one

month or one year into the future. The power of this

model is its ability to combine audience targeting

and algorithmic optimization with premium

content and guaranteed sales. The concept of

prioritized bidding and forward markets will

revolutionize not just basic display advertising

but all digital marketing. sophisticated rich media

units, video, mobile and even digital-out-of-home

inventory will all be sold through RTB. The end

result for advertisers is incredibly exciting, where

true multi-channel campaigns and up-front buys

can be planned, purchased and optimized with

the single click of a button.

David cohen eVp global Digital Officer uM Worldwide

Today, we have well developed data and audience

targeting ecosystems that are largely bound by

platforms. Deep resources exist in the online and

mobile ecosystems with rapid growth across a

wide range of cable, satellite and over-the-top

television solutions. The greatest area of evolution

over the next two years will be the convergence

of these data constellations into one holistic view.

The race to a platform neutral world is red hot

today. sony, Microsoft, Google and Apple are

all aligning their assets into a delivery agnostic

ecosystem which will provide a single insight

across all consumer touch points. Marketers

will soon be able to deliver custom and relevant

messages at the right time regardless of delivery

mechanism. it is at that point that we will have

entered an era of marketing relevance that we

have only dreamed of to-date.


64 What’s Next for Data-Driven Display?

What’s Next in Europe

Michael Stephanblome Co-Founder & CEO AdJug

The Display Marketplace in Europe has generally

lagged behind the US market in terms of size,

adoption of new technologies and availability

of online data. While real-time bidding (RTB),

Demand Side Platforms (DSPs) and Advertising

Exchanges are now forming an important part

of the overall US Advertising Ecosystem, they

are just starting to gain traction in Europe with

the UK leading the way and France and Germany

following.

In 2011, European marketers finally established

display advertising as a relevant performance

marketing channel next to paid search and

affiliate marketing. This has been driven by three

main factors:

➊ The availability of large amounts of low price

social media inventory through Ad Networks

and Exchanges.

➋Better targeting capabilities through

remarketing and customized audience

segments.

➌Better creative capabilities through real-time

personalization of banners and direct targeting

of products and services within the creative

based on previous user behavior.

All of the above have led to a strong rise in media

spend in sectors that had previously ignored

display. With paid search nearing user saturation

in Europe, many e-commerce companies are

seeing higher click prices and are looking for

additional channels to diversify into.

So what’s next? Because of these vastly improved

targeting capabilities, display advertising in Europe

is set to grow aggressively beyond remarketing.

Marketers will find smart, hybrid solutions

for building their brand and driving performance

for sales, while at the same time making use of

new conversion attribution methods and dynamic

pricing. Never has data and analytics-driven

marketing around the consumer been more

important than in this new age of advertising

technology.

66 Glossary

glOssaRyglossary Terms Definition

1st party Data Any data that is created or owned by the marketer.

3rd party Data information acquired by other data aggregators. sources are diverse and varied - it could come as a direct source from publishers, retailers and e-commerce sites or even offline data providers who have found ways to utilize their data to target people online.

ad exchange Online auction marketplace that facilitates the buying and selling of inventory across multiple Ad networks and Dsps.

ad network An online advertising service provider, often with proprietary technology, that helps marketers run display advertising campaigns across various sources of online inventory, including direct publishers and Ad exchanges. Ad networks typically include other services as part of their media campaigns, such as ad serving, media verification, privacy notification, reporting, data and/or audience targeting.

ad server A technology platform used by the advertiser and publisher to deliver and track ads across inventory.

affiliates A person or company that displays another party's ad on its site (usually for free) and is paid based on the activity or cpA driven by the displayed ad.

attribution Determining exposure and crediting the appropriate party or media channel with the effectiveness of the exposure which ultimately led to a user conversion.

audience Targeting Developing display campaigns that target specific segments of the population.

behavioral Data information collected based on an individual’s web-browsing behavior and preferences.

67www.netmining.com

Glossary Terms Definition

Brand Safety The prevention of ads from appearing on web pages with inappropriate content and placement.

Contextual Data Information related to a website's page contents.

DAA (Digital Advertising Alliance)

The Digital Advertising Alliance (DAA) is a self-regulatory body that develops industry best practices and effective solutions for consumer choice in online behavioral advertising (OBA).

Data Aggregator Technology platform that acquires data (usually from 1st and 3rd party) and segments this into a taxonomy that allows buyers to identify the data they most wish to target.

Data Exchange Online auction marketplace where advertisers acquire 3rd party data that helps them better reach their target audiences with display.

Data Supplier Follows consumers and tracks their online behavior in order to segment the consumers into groups based on the collected information. Advertisers buy the ability to target specific groups from Data Suppliers.

Demographic Data Information regarding the size and characteristics of a particular population of people of interest to the advertiser, such as age, sex, income, education, size of household, ownership of home, etc. This does not include psychographics based on the subjective attitudes or opinions of consumers.

DMP (Data Management Platform)

Technology platform that assists in the buying or negotiating of data sources and data costs. Allows marketers to take control of their data in a unified environment.

DSP (Demand Side Platform)

An advertising technology platform which allows marketers to manage their online media campaigns by facilitating the buying of auction-based display media and audience data across multiple inventory and data suppliers in a centralized management platform.

68 Glossary

glossary Terms Definition

Dynamic creative Targeted messaging with multiple iterations that are adjusted and delivered to different audiences based on data about the particular prospect to determine which ad would have the greatest effect .

iab (interactive advertising bureau)

Founded in 1996, the interactive Advertising Bureau (iAB) is the leading online global advertising industry trade association that evaluates and recommends standards and practices, fields research to document the effectiveness of the online medium and educates the advertising industry about the use of online and digital advertising.

Kpi (Key performance indicator)

performance metric used to evaluate the success of campaign activity.

lookalike The tactic of identifying a new audience set who have similar attributes to an existing segment that is being targeted by a marketer.

Media Verification (aka ad verification)

The verification that ads are delivered in compliance with the advertiser's insertion order terms, conditions and buying guidelines.

nai (network advertising initiative)

Formed in 1999 in response to consumer concerns over the use of profile-based targeted online advertising, the network Advertising initiative (nAi) is a cooperative of online marketing and analytics companies committed to building consumer awareness and establishing responsible business and data management practices and standards for sophisticated online advertising technologies.

Online Data provider Any provider who sells data online.

piggyback (see Tag) in display, this refers to appending a tag to an existing tag, which triggers the sharing of campaign performance data.

publisher The owner of the website where ads are displayed.

Remarketing (aka Retargeting)

The act of finding a marketer’s past website visitors across the web and delivering them display advertising with the goal of driving them back to the site to complete an action.

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glossary Terms Definition

Rich Media Method of communication that incorporates animation, sound, video, and/or interactivity to be more engaging and eye catching to a user. it can be used either singularly or in combination with the following technologies: streaming media, sound, Flash, and with programming languages such as Java, Javascript, and DhTMl.

RTb (Real-Time bidding)

Real-Time bidding is the buying and selling of ad impressions in real-time in an online auction marketplace.

social graph The representation of our relationships. in present day context, these graphs define our personal, family or business communities on social networking websites.

social Targeting A way for marketers to target consumers based on who they are connected to within online social networks.

ssp (sell side platform, aka supply side platform and yield Optimizer)

An advertising technology platform which represents the suppliers of online ads (publishers).

Tag A piece of html code that communicates to a browser in order to interpret the content of a page. in ad serving, the browser uses the tag to identify and fetch the designated ad from an Ad server.

Tag Management Refers to using a universal container tag across all advertising platforms to enable simplified and seamless tracking.

Trading Desk (aka Media buying Desk)

"A group formed within a holding company or agency that has been designed to be a clearinghouse for a holding companies’ media needs. The immediate connection to marketers aim to drive better decisions on media buying based on direct data and consequently, cost efficiency.

Video Targeting Using online video inventory to execute audience targeting tactics. (see Audience Targeting).


netmining is a provider of display targeting solutions, including custom audience targeting, advanced

remarketing and video, that harness real-time customer intelligence to improve display performance.

with an audience profiling engine that understands each individual’s interests and buying propensity,

netmining enables companies to deliver highly relevant and personalized online advertising across

the entire customer lifecycle.

netmining is a member of the interactive Advertising Bureau (iAB), the network Advertising initiative

(nAi) and the Digital Advertising Alliance (DAA).

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