next generation targeting â€“ synchronizing online & offline

Confidential & Proprietary • Copyright © 2008 The Nielsen Company

Next Generation Targeting – Synchronizing Online & Offline Behavioral Targeting

August 2008

Confidential & ProprietaryCopyright © 2008 The Nielsen Company

The Promise

• Use segmentation to integrate your offline and online advertising.

• Complement your online behavioral targeting efforts. • In this webinar, we will discuss the next generation of

target marketing efforts that combine traditional advertising with digital media initiatives and the future of online advertising.

• Nielsen Claritas, the leaders in precision targeting, and Nielsen Online, experts in measuring online audiences, online advertising and consumer behavior, will present in- depth findings to provide advertisers, marketers and publishers actionable insights.


Integrating Online and Offline Marketing

• Online marketing spends continue to grow rapidly• Offline spends growing less slowly

• As this continues, aligning offline and online marketing plans becomes more and more important


Today’s Agenda

Goals:

• Understand segmentation’s role in integrating your online and offline marketing

• Distinguish between the benefits brought to you by segmentation and behavioral targeting

• Know which sites best deliver your core customers and/or combat your competitions’ online presence

• Measure your brands’ buzz and show how that can impact both online and offline marketing


Claritas: Segmentation Pioneers

P$YCLE & LifeP$YCLE

Pioneer HH-level industry segmentation

MicroVision & PRIZM+4 ZIP+4 cluster assignments

PRIZM & MicroVision applied to syndicated

surveys & lists

ConneXions, 1st HH-level system

targeting voice, video & data

IPA & Net Worth coding targets the Affluent Market

PRIZM NE – The New Evolution, 1st to have

common schema at HH and geodemo levels

PRIZM assignments for Census Block Groups

PRIZMWare, PC-based market analysis & mapping

“Cluster-by-household” grid segmentation

PRIZM – The 3rd Generation

MV Insurance & Banking, industry specific ZIP+4

cluster assignments

Workplace PRIZM & Daytime MicroVision

targets workers & daytime pop.

Applied computerized

demographic analysis

UPDATE, local-area demographics

REZIDE, ZIP Code demographics

PRIZM for ZIP Codes “geodemographics”

The 70’s The 80’s The 90’s 2000 & Beyond


Claritas Segmentation Product Line

Key Driver: Key Driver: TechnodoptionTechnodoption• You & I Tunes to Old Time Media• Technovators to Bucolic Basics• Cinemaniacs to Early-Bird TVAT&T, Verizon, Charter Comm.AT&T, Verizon, Charter Comm.

Key Driver: Key Driver: IPA (Assets)IPA (Assets)• Savvy Savers to ATM Nation • Annuity-ville to Social Insecurity• Power Couples to Young & ThriftyBofA, Suntrust, H&R BlockBofA, Suntrust, H&R Block

Key Driver: Key Driver: Urbanization & SERUrbanization & SER• Executive Suites to Bedrock America• Up & Comers to Hometown Retired• Money & Brains to Shotguns & PickupsGM, Best Buy, MetLife, HP, AdvoGM, Best Buy, MetLife, HP, Advo

IndustryIndustry--leading segmentation for Media, Agencies, Retail, leading segmentation for Media, Agencies, Retail, Auto, Real Estate, Restaurants, Insurance, Utilities, Travel, etAuto, Real Estate, Restaurants, Insurance, Utilities, Travel, etc.c.

IndustryIndustry--specific segmentationspecific segmentationsystems for:systems for:

-- Wireline TelecommWireline Telecomm-- Wireless TelecommWireless Telecomm-- CableCable

-- BanksBanks-- Credit CardsCredit Cards-- InvestmentsInvestments


Building PRIZM: A Technological Breakthrough

66 PRIZM NE Segments66 PRIZM NE SegmentsBenchmarked, evaluated and described using syndicated and propriBenchmarked, evaluated and described using syndicated and proprietary dataetary data

Annual Update to segment assignments for HH, ZIP+6, ZIP+4, BG, aAnnual Update to segment assignments for HH, ZIP+6, ZIP+4, BG, and ZIPnd ZIPApplied to 100Applied to 100’’s of marketing databases via the Claritas Link Partner Networks of marketing databases via the Claritas Link Partner Network

Age & IncomeHH CompositionTenure / HousingEducationEthnicity…and behaviors

HH DataEquifax, ADVO, InfoUSA,

USPS, Targus(Master Address File)

Census TractsBlock Groups

Blocks

ZIP CodesZIP+4’sZIP+6’s

NeighborhoodUS Census, Claritas Update

Demographics

Claritas Audit SurveysClaritas Audit SurveysFinancial, Insurance, Telco, Financial, Insurance, Telco,

Internet, Electronics, RestaurantInternet, Electronics, Restaurant

Syndicated ResearchSyndicated ResearchMediamark, Simmons, ACN Mediamark, Simmons, ACN HomeScan and Polk Auto.HomeScan and Polk Auto.

Claritas Claritas MDPMDP

ConsumerConsumerBehavior LinkBehavior Link


PRIZM – 66 SegmentsSecond CitySecond City Town & CountryTown & CountryUrbanUrban SuburbanSuburban

10 Second City Elite12 Brite Lites, Li'l City13 Upward Bound

47 City Startups53 Mobility Blues60 Park Bench Seniors62 Hometown Retired63 Family Thrifts

05 Country Squires09 Big Fish, Small Pond11 God's Country20 Fast-Track Families25 Country Casuals

23 Greenbelt Sports28 Traditional Times32 New Homesteaders33 Big Sky Families37 Mayberry-ville

48 Young & Rustic55 Golden Ponds56 Crossroads Villagers57 Old Milltowns58 Back Country Folks64 Bedrock America

38 Simple Pleasures42 Red, White & Blues43 Heartlanders45 Blue Highways50 Kid Country, USA51 Shotguns & Pickups

24 Up-and-Comers27 Middleburg Managers34 White Picket Fences35 Boomtown Singles41 Sunset City Blues

59 Urban Elders61 City Roots65 Big City Blues66 Low-Rise Living

04 Young Digerati07 Money & Brains16 Bohemian Mix26 The Cosmopolitans29 American Dreams

31 Urban Achievers40 Close-In Couples54 Multi-Culti Mosaic

44 New Beginnings46 Old Glories49 American Classics52 Suburban Pioneers

21 Gray Power22 Young Influentials30 Suburban Sprawl36 Blue-Chip Blues39 Domestic Duos

01 Upper Crust02 Blue Blood Estates03 Movers & Shakers06 Winner's Circle

08 Executive Suites14 New Empty Nests15 Pools & Patios17 Beltway Boomers18 Kids & Cul-de-Sacs19 Home Sweet Home

High

Low

$$


Links to the Ground: Washington DC by PRIZMBG Single Assignments

GreatGreatFallsFalls

RestonReston

ManassasManassas

CentervilleCenterville

RockvilleRockville

GaithersburgGaithersburg

LaurelLaurel

WoodbridgeWoodbridge

WaldorfWaldorf

AndrewsAndrewsAFBAFB

OlneyOlney

ColumbiaColumbia

SevernSevern

Glen BurnieGlen Burnie

QuanticoQuantico

Ft BelvoirFt Belvoir

HyattsvilleHyattsvilleDullesDulles

SterlingSterling

WashingtonWashington

ArlingtonArlington

AlexandriaAlexandria

AnnapolisAnnapolis

Urban UptownMidtown MixUrban Cores

Elite SuburbsThe AffluentialsMiddleburbsInner Suburbs

2nd City SocietyCity CentersMicro-City Blues

Landed GentryCountry ComfortMiddle AmericaRustic Living

Unclassified

0808

0505


“West” Tyson’s Corner, Northern Virginia

Leesburg Pike (VA 7)

Chain Bridge Rd (VA 123)

Dulles Tollway

Irvin

e St

Old Courthouse Rd

Gos

nell

Dr

Higdon Dr

Courthouse Spring

WolfWolfTrapTrap

Westpark Dr

Westwood Center Dr

Westwood Westwood Country ClubCountry Club(Vienna, VA)(Vienna, VA)C

reek

Cro

ssin

g R

d

Copyright 2003, Claritas Inc.

03 Movers & ShakersWealthy, Suburban Boomer Couples

Age 35-64, OwnersWealthy @ $97,100

08 Executive SuitesUpscale, Suburban Singles & Couples

Age 25-44, MixUpper @ $71,000



01 Upper CrustWealthy, Older Suburban Couples

Age 45+, OwnersWealthy @ $107,000


30 Suburban SprawlMiddle-Aged, Midscale Couples

Age 25-44, OwnersMid @ $48,600

15 Pools & PatiosOlder, Upscale Suburban Couples

Age 45+, OwnersUpper @ $67,600


14 New Empty NestsMature Couples in Upscale Suburbia

Age 65+, OwnersUpper @ $67,200

GlobeXplorer with ZIP+4 Assignments


The New Evolution in Segmentation

Profile Linkages

Product Purchases

BeveragesFoods

ClothingHousehold Goods

AppliancesElectronics

Sports EquipmentAutomobiles

etc.

NeighborhoodsNational MapsRegional Maps

Local MapsHigh Potential Areas

Highly Penetrated Areas

LifestylesTravel

VacationsHobbiesSportsMusicetc.

MediaCablePrint

OutdoorBroadcast TV

RadioInternet

CustomerInformation

!!!


Wide Range of Internal Surveys & Partners Covering Media and Advertisers

Page 11

Simmons

Client

Enterprise Data

Warehouse

Nielsen Media Research

Claritas


Nielsen Online Assets that are Coded with Claritas Segmentation Systems• NetView

The ‘Nielsen panel of the Web’. 30,000 panelists in the US (with Global capabilities as well). Panelists are recruited via random digit dial and all PC behaviors are passively monitored using a software meter installed on their computers. This is the highest quality source of behavioral data available in the world.

• MegaPanelA panel of 250,000 in the US (with global capabilities as well). Panelists are recruited online. As with the NetView panel, when panelists are recruited they download a software meter on their computers which allows passive tracking of online behaviors. In addition to tracking Web sites visited MegaPanel is able to track transactions, searches, and is survey-able.

• @Plan (coming soon)A survey executed quarterly to 36,000 people in the US. More than 3,000 profile points, including Web sites visited, products owned and purchased, personal preferences, activities engaged in, etc…


Internet Targeting - Segmentation Alternatives

• Registration:– ZAG Data – in return for site localization or deeper content – Full Address – eRetail or any other home-delivery

• Registration Networks:– Member sites may see segment codes on browsers which have

submitted registration

• IP Address:– Granularity remains an issue– Fixed IP solutions may facilitate this option


5

1

Registration / Encoding Process 1) Visitor enters address or ZAG data

2) Address or ZIP info batched offline or sent real-time to segmentation database

3) Address / ZIP info matched with segment code

4) Cookie encoded with segmentation

5) Content or advertising may be served based on that cookie

4

[email protected][3].txt

2

PRIZM ZIP35 0681002 0682009 0684027 0685012 0685109 0685363 0685408 06897

3


Audi A4 Selected

1) Marketer selects category or brand

2) Tool provides checklist of segments, using agreed business rules

Target Code Variable Title %Comp Index

x 01 Upper Crust 7.45 492x 02 Blue Blood Estates 5.23 537x 03 Movers & Shakers 6.80 422x 04 Young Digerati 4.39 357x 05 Country Squires 5.99 313x 06 Winner's Circle 3.91 354x 07 Money & Brains 6.24 309x 08 Executive Suites 2.49 274x 09 Big Fish, Small Pond 4.33 191x 10 Second City Elite 1.89 161x 11 God's Country 4.62 299x 12 Brite Lites, Li'l City 2.31 154

13 Upward Bound 2.15 13514 New Empty Nests 1.54 14715 Pools & Patios 2.01 153

x 16 Bohemian Mix 3.61 20117 Beltway Boomers 1.32 138

. . . . . . . . . . . . . . . 28 Traditional Times 1.27 45

x 29 American Dreams 3.60 165Selected Segments 62.86 289

Segments Audi A4 (H)

Online: Target Selection Process

3) Selected segments = target


Target Selection Business Rules

• Rank profile by Index in descending order, highest indexing segments top the list

• Aggregate segments until:- 60% of buyers are included in target or- Index drops below 110

Maximum percent of buyers (50-70%) / minimum index (100-120) may be modified in discussions with website


Understand Your Customers Online and Offline


Behavioral Targeting: Pros and Cons

DefinitionUses a browser’s actual internet usage for targeting. Some behavioral targeting systems utilize only behavioral data collected on that site, while others leverage information collected throughout a network.

Upside– Ability to target prospects within the context of researching a purchase in high research

categories (auto, consumer electronics, for example)– Opportunity for lower cost ad buys, as BT often utilizes remnant inventory– Optimization through analysis of past click-through behaviors in high click categories

Downside– In advertising categories where clicks are infrequent, optimization is challenging– For advertisers that principally aspire to reach a specific type of person, where

contextual cues are few and far between, behavioral targeting opportunities may be rare (CPG, for example)

– Behavioral opportunities are generally limited to people exhibiting in-market behaviors, which precludes advertising intended to change preferences and attitudes before a person is in market

– Target segments are often highly general (Auto Intenders, rather than German Luxury Sedan intenders, for example)


Segmentation: Pros and Cons

Definition – Links an advertiser’s customer database or a syndicated survey’s view of that advertiser’s

customers with internet visitors – Permits serving ads to visitors who have a substantially higher probability of purchasing

that advertisers products / services.Upside

– Allows the targeting larger numbers of visitors for advertisers that have reach objectives– Allows advertisers to reach prospective buyers when they are not in the active online

research phase, shaping opinions that will hopefully benefit the advertiser when the person is in market

– Ability to target people broadly across networks where segmentation schemes have been loaded

– Segments can be easily cross-linked to other datasets– Opportunity to buy remnant inventory through where publishers or ad networks are

encoded with segmentation schemaDownside

– Less likely to catch a person ‘in the moment’ when they might be poised to purchase


Recommend that Advertisers Employ Both Behavioral and Segmentation Targeting Tactics

Behavioral• Ability to reach people closest to the actual point of decision

• Ability to reach people as they are actively learning about a particular purchase

Segmentation• Ability to affect the consideration set before the process of consideration begins

•Ability to affect Internet users not using the Internet to support the purchase

•Ability to support a larger a larger brand footprint


PRIZM Targets: Brand A

• Brand A PRIZM targeted segments represent 53% of all customers • More than twice as likely than average to own the vehicle (Index = 217)• These segments make up 25% of the US• Wealthy, predominantly mature: 59% of selected segments are 45+


Brand A’s Online Behavior

Where do Brand A’s customers go online

NameSegment

Composition of Site (%)

Index (Against Online Universe

for Cluster)Reach Coverage %

Zagat Survey 41.70 187 221,000 0.7

Fodors.com 41.00 184 258,000 0.8

LinkedIn 39.90 179 2,125,000 6.6

WSJ.com (The Wall Street Journal) 39.60 178 1,838,000 5.7

RCI 39.50 178 517,000 1.6

Bloomberg.com 38.60 173 1,141,000 3.5

BoatU.S. 38.40 173 64,000 0.2

Hoover's Online 38.10 171 544,000 1.7Wall Street Journal Digital Network 37.70 169 3,726,000 11.5Quicken 37.60 169 199,000 0.6

Investors.com 37.00 166 155,000 0.5

InformationWeek 36.90 166 271,000 0.8

Heavy Concentrations in: – Upscale Travel Arenas (Fodors, Zagat)– Financial Interests (WSJ, Bloomberg, Quicken)– WSJ Network (WSJ, Barrons, Marketwatch, BigCharts)

Sample: Nielsen Online, US Custom Claritas Index Report


Brand A’s Offline Behavior

Claritas: MRI 2007

Brand A Targets


Compare Sites’ Ability to Attract Your Online Customers


Brand A’s Target: What Other Brands Are They Actively Considering?

Index for Custom Target Across Competitive Set

148

182

168

195

205

175

251

0 50 100 150 200 250 300

Brnad G.com

Brand F.com

Brand E.com

Brand D.com

Brand C.com

Competitive: Brand B.com

Brand A.com

Sample: Nielsen Online NetView panel, US Custom Claritas Index Report

Among your target segment, what Web sites are being visited, in addition to your own?


NameSegment

Composition of Site (%)

Index (Against Online Universe

for Cluster)Reach Coverage %

Zagat Survey 41.70 187 221,000 0.7

Fodors.com 41.00 184 258,000 0.8

LinkedIn 39.90 179 2,125,000 6.6

WSJ.com (The Wall Street Journal) 39.60 178 1,838,000 5.7

RCI 39.50 178 517,000 1.6

Bloomberg.com 38.60 173 1,141,000 3.5

BoatU.S. 38.40 173 64,000 0.2

Hoover's Online 38.10 171 544,000 1.7Wall Street Journal Digital Network 37.70 169 3,726,000 11.5Quicken 37.60 169 199,000 0.6

Investors.com 37.00 166 155,000 0.5

InformationWeek 36.90 166 271,000 0.8

Heavy Concentrations in: – Upscale Travel Arenas (Fodors, Zagat)– Financial Interests (WSJ, Bloomberg, Quicken)– WSJ Network (WSJ, Barrons, Marketwatch, BigCharts)

Sample: Nielsen Online, US Custom Claritas Index Report

These Sites Reach Brand A’s Customers Efficiently


Combat Your Competitors Online


AdRelevance Overview

What is it?AdRelevance provides comprehensive online advertising intelligence across all industries,

channels, and ad-formats across the web.

Who Uses It?• Advertisers

• Online publishers

• Agencies (on behalf of advertisers)

Typical questions• Which of Brand A’s key competitors advertised online the most heavily during 2007?

• Which of Brand A’s key competitors is accelerating their online ad spend the most significantly?

• What online advertising creative was used the most heavily by competitor B during December?


How Much Are My Competitors Advertising Online? Q2 2007

Brand B

Brand A

Brand C

Brand D

Brand E

Brand F

Brand G

Brand H

Brand I

Brand J

Brand K

Impressions by CompanyMost Recent Quarter

All Advertisers: Custom Selection, all locations Q2 2007, All Strategies, All Image-Based Technologies. All Delivery Types. No House Ads.

Brands: B A C D E F G H I J


Where Are My Competitors Advertising online?

• Understand Competitive Set and Online Marketing Placement

• Example: Brand B– Strong Increase in Online

Marketing Impressions in May 2008.

+86% Month-over-Month Increase

– Focus on Local Newspaper SitesLA TimesSun-SentinelMiami Herald…and so on!

Site/Sub-Site Impressions

Los Angeles Times: Los Angeles, CA (General) 349,000

Sun-Sentinel.com: South Florida (All) 297,000

AutoTrader.com (All) 166,000

Herald.com: Miami, FL (All) 161,000

bizjournals.com (All) 118,000

Yahoo! Autos 89,000

PalmBeachPost.com: Palm Beach, FL (All) 79,000

MSN Autos 75,000

Arizona Central: Arizona (General) 53,000

The Denver Post: Denver, CO (All) 20,000

RockyMountainNews.com: Denver, CO (All) 16,000

AOL.com Autos 5,000

cars.com (All) 4,000

WorldNetDaily (All) 3,000

Arizona Central: Arizona The Arizona Republic 3,000

AutoSite (All) 1,000

Total 1,439,000Nielsen Online, AdRelevance, May 2008


What Are My Competitors Advertising Online?

32

Date: 3/3/08 to 6/2/08Impressions: 89,351,000Sites: Autotrader.com

Car and DriverEpinions.comESPN.com

Source: Nielsen Online; AdRelevance. Q2’07 – Q2’08

Date: 3/24/08 to 4/07/08Impressions: 50,022,000Sites: Yahoo!

Date: 3/31/08 to 4/07/08Impressions: 15,020,000Sites: Facebook


Measure and Monitor the Buzz Around Your Brand and Around Competitor Brands


34

Snapshot: Competitive Buzz for May

• Company generates the most buzz during May because of discussion about new products and OTHER initiatives.

• Company XYZ’s use of communication X continues to generate positive sentiment.

• Feature content remains a top driver of programming discussion. Consumers debate the quality of linear feature vs. feature content .

• Network management practices, Issue X, bandwidth caps and new pricing strategies based on Internet usage remain controversial topics for Company XYZ during May.

Percentages have been normalized and contain only May data

Company29%

Company19%Company

18%

Company15%

Company12%

Company6%

Company1%


35

Company XYZ Monthly Buzz TrendsCompany XYZ Buzz Trend (since January)

May’s event at Company XYZ.net generates the most buzz of any key event so far

in 2008.

A. POSITIVE:Company XYZ at Event: keynote,

B. NEGATIVE: At a public hearing in CITY, XYZ company lobbyists upstage the event

C. MIXED-TO-NEGATIVE: Company XYZ and Company agree to collaborate

D. MIXED-TO-NEGATIVE: Organization Chair makes a statement

E. NEGATIVE: EVENT at Company XYZ.net leaves customers without access feature, feature and feature. Consumers debate the impact and motives

A

B

C

D

0%

5%

10%

15%

20%

25%

30%

35%

1/1/20

081/8

/2008

1/15/2

008

1/22/2

008

1/29/2

008

2/5/20

082/1

2/200

82/1

9/200

82/2

6/200

83/4

/2008

3/11/2

008

3/18/2

008

3/25/2

008

4/1/20

084/8

/2008

4/15/2

008

4/22/2

008

4/29/2

008

5/6/20

085/1

3/200

85/2

0/200

85/2

7/200

8

% o

f Dis

cuss

ion

E


Brand Association Map – Nike

A Brand Association Map is a proprietary

correlation analysis

that determines the competitors,

products, concepts and

attributes that are most closely

associated with the central brand/topic (e.g. Nike).

A Brand Association Map is a proprietary

correlation analysis

that determines the competitors,

products, concepts and

attributes that are most closely

associated with the central brand/topic (e.g. Nike).


37

Customer Service - Verbatim Messages Customer Service: Positive

“And I must say that my relocation experiences with Company XYZ have been quite good so far. The customer service rep I spoke with to set up the new service was friendly, informative, and thorough. The installer showed up ten minutes into his two hour window and was also friendly and accommodating of my questions and requests. It was hard to believe I was dealing with a cable company at all. Having just said that, I'm probably setting myself up for the mother of all customer support nightmares, but so far so good.” Source, Date

“I had a good Company XYZ tech who checked all the connectors in the house to eliminate any potential troubles in the future. If I have any problem in the future I hope I get that one tech...he fixed all the problems in my house in 3 hours.” Source, Date

“I have to admit, while Company XYZs service hasn't been spectacular for me, their customer service in this area (A "service" mentality is very natural under the right conditions, I think. I was just on the phone with a customer service rep from Company XYZ who was extraordinarily helpful and, I get the sense, genuinely interested in finding me the best deal. Why? Was it for her commission? Was it for praise from her boss? Was it because she had a great day today and was feeling generous? Who knows. I tend to think that in every organization, if people believe in what they are doing, if they see the value and the commitment to helping others, the service is there. In general I find that people want to be helpful.” Source, Date

“I am most pleased with Company XYZ’s performance here after Melissa sent me her email. The only thing more they could have done would have been to send someone out last night. To their credit they offered, and I declined. Excellent customer service is what sets any company apart from the rest of the crowd. ” Source, Date


Optimize Your Online Ads’ Efficiency


Post Buy Analysis

Findings- While site A made the greatest contribution to impressions against my target, it did so inefficiently.

- Due to the high composition of delivered impressions against my target, sites E, I J, K and L may be more effective in the future toward a goal of target advertising efficiency

Optimize future campaigns based upon the success of past campaigns at reaching desired targets

next generation targeting â€“ synchronizing online & offline

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