From Information to Audiences:The Emerging Marketing Data Use CasesJonathan MarguliesManaging Director

March 1, 2012

Thanks to Our Sponsors!

Winterberry Group: Helping Advertising, Marketing, Media and Information Companies Grow Value

Strategic Consulting

• Corporate Strategy Development

• Market Intelligence

• Marketing Process Optimization

• M&A Transaction Diligence Support

• Investment Banking Services, through

From Information to Audiences

What inspired the research?

What role is data playing in digital advertising today?

How should we be thinking about our “data strategy” for the future?

Our Agenda

H. Catalogus (0-~1980 A.D.)

Name:Address:

In the Beginning, There Were Subscriber Files…

… Which Begat Demographic “Selects,” Data Cards and the First True Commercial Data Models…

NAME ADDRESS

GENDER

INCOME

PHONE

AGE

H. Catalogus (-~1980 A.D.)

H. Mailinglistus

(~1980s)

… Which Begat Modeling, Cluster Segmentation, Cooperative Databases and—With the Arrival of the Internet—E-mail Data…

H. Catalogus (-~1980 A.D.)

H. Mailinglistus

(~1980s)

… Which, In Concert with the Growth of “CRM,” Gave Rise to Sophisticated Database Management, CDI and MDM Infrastructures…

H. Analyticus (~1990-2000s)

“Customer File”: Contact Info, CRM, Demographics

“Prospect File”: Demographics, Credit Scores

Transactional / Loyalty Records

Public Records

Self-Reported “Intent” Data

Persistent Identifiers

Interactions Logs

“Single Source of the Truth”

Mr. John Q. CustomerOne Response Rate WayBoston, MA 01234

But “Evolution” Isn’t Always Painless; The Emergence of Digital Channels Has Brought With It a Deluge of New Data Sources

Direct Mail

Call Centers

Catalogs

Retail Transactions

Print Publications

Broadcast Outlets

Email

Geo-Demographic compiled from

publishers, databases and

other third parties

Geo-Demographic compiled from

publishers, databases and

other third parties

Online Data Types:• Registrations• Cookies (Flash) /

browsing activities• Social networks• Online purchase data• In-market purchase

intent

Online Data Types:• Registrations• Cookies (Flash) /

browsing activities• Social networks• Online purchase data• In-market purchase

intent

Artwork Source: David Harbaugh, Harvard Business Review

Psychographic and behavioral compiled from surveys,

analytical models

Psychographic and behavioral compiled from surveys,

analytical modelsSocial compiled from

social sites, blogs, sharing sites,

Social compiled from social sites, blogs,

sharing sites,

Publishers

Offline Compilers

Transactional added from purchase records, cooperative

databases

Transactional added from purchase records, cooperative

databases

Social Sites / Online

Providers

Portals / Online

Compilers

Offline Providers

?

And Those Various Channels Generate—and Rely Upon—a Range of Information Types

… And So “Traditional” Database Infrastructures Are Being Asked to Support Vast New Streams of Unstructured Information

“Customer File”: Contact Info and Demographics

“Prospect File”: CRM Demographics, Credit Scores

Transactional / Loyalty Records

Public Records

Self-Reported “Intent” Data

H. Digitalus(~2009-Today)

Behavioral (Clickstream)

Intent (Opt-In/Registered and Inferred)

Web Analytics (Geo-/ Technographic) ?

But The Integration of “Traditional” and “Digital” Data Poses a Set of Unique Challenges, Owing To Discrepancies Between…

Known Names/Addresses…

… and Anonymous IP Addresses

Mr. John Q. Customer

One Response Rate Way

Boston, MA 01234

“Batch” Processing…

… and Real-Time Deployment

Campaign-Driven Execution…

… and Continuous Targeting

Single-Channel Focus…

… and Integrated Marketing

Today, The “Use Cases” for Marketing Data Differ Substantially Across Addressable Media

From Information to Audiences

What inspired the research?

What role is data playing in digital advertising today?

How should we be thinking about our “data strategy” for the future?

Our Agenda

Our Panel: Senior Thought Leaders Across the Data Ecosystem

N=176Source: Winterberry Group survey

“Which Best Describes Your Job Role / Function?”

“To What Extent Are the Following Use Cases Focal Points of Your CURRENT Data-Driven Marketing Activity?”

Source: Winterberry Group surveyNot a focus of our

current data utilizationA significant focus of

our current data utilization

“To What Extent Do You Believe The Following Use Cases Will Be Focal Points of Your FUTURE Data-Driven Marketing Activity?”

Source: Winterberry Group surveyNot likely to be a focus

of our future data utilization

Likely to be a significant focus of our future data

utilization

Use Case: Audience Optimization

Identifying customers and likely prospects through the integration of rich (though disparate) data sources; managing cross-channel marketing execution with the goal of engaging those audiences strategically—and in accordance with consumers’ preferred advertising media.

Fundamental Advertising Benefit

Effectiveness: Identifying customers and likely prospects through the integration of first- and third-party data sources

Maturity Level Low: Despite technology advances, uncertainty around the optimal approach to structured integration of data

Core Beneficiaries

E-commerce Marketers, Digital Advertisers, Lead Generation Portals, Publishers (for traffic acquisition)

Long-Term Potential

High: The ability to define high-potential audiences and facilitate multichannel communication represents a fundamentally new way of marketing

Use Case: Channel Optimization

Enabling “right message, at the right time, via the right media” targeting; expanding the role of consumers in choosing optimal/preferred communications media.

Fundamental Advertising Benefit

Effectiveness/ Efficiency: Enabling “right message, at the right time, via the right media” targeting; expanding the role of consumers in choosing optimal/preferred communications media

Maturity Level Low: Traditional marketing efforts are channel-specific; “channel agnostic” internal alignment that most marketers have not yet undertaken

Core Beneficiaries

E-commerce Marketers, Digital Advertisers, Lead Generation Portals, Publishers (for traffic acquisition)

Long-Term Potential

High: Media-agnostic communication strategies will enhance consumer engagement (through dialogue and purchase behavior)

Use Case: Advertising Yield Optimization

Maximizing the value of available advertising inventory by identifying and “selling” high-value audiences across individual publisher properties and delivery media.

Fundamental Advertising Benefit

Efficiency: Maximizing the value of available advertising inventory by identifying and “selling” high-value audiences across individual publisher properties and delivery media

Maturity Level Low: Though technological advances are rapidly allowing audiences to be “sold” across distinct online media platforms, the use case demands true cross-channel yield optimization

Core Beneficiaries

Publishers

Long-Term Potential

High: For a publisher community struggling to effectively monetize content, the identification and optimization of audience-centric inventory has the potential to deliver substantial revenue opportunities

Use Case: Targeted Media Buying

Enabling the economical, value-oriented purchase of advertising media; delivering targeted messages to audiences across a diverse, actionable range of channels.

Fundamental Advertising Benefit

Efficiency/Effectiveness: Enabling the economical, value-oriented purchase of advertising media; delivering targeted messages to audiences across a diverse, actionable range of channels

Maturity Level Intermediate: “Real-time bidding” (RTB) tools have matured substantially over the past few years, and are in common use by enterprise marketers across verticals

Core Beneficiaries

Marketers (via Demand-Side Platforms), Digital Agencies/Trading Desks

Long-Term Potential

High: Meaningful media-buying efficiencies are already accruing to sophisticated users; coordinated use of these applications and the targeted messaging/offer tools will deepen value

“To What Extent is Your Company (Or Your Clients) Realizing Value From the Following Data Sources?“

Source: Winterberry Group surveyWe (or our clients) are realizing no value from

these data sources

We (or our clients) are realizing significant from

these data sources

“To What Extent Do You Believe Each of the Following Are Driving Deeper Interest/Investment in Marketing Data?”

Source: Winterberry Group surveyNot a focus of our

current data utilizationA significant focus of

our current data utilization

“To What Extent Do You See the Following Attributes Driving the Underlying Usefulness of a Marketing Dataset?”

Source: Winterberry Group survey

Not at all important in driving the value of a

data set

Critically important in driving the value

of a data set

“To What Extent Do You Believe Each of the Following Are Inhibiting Interest/Investment in Marketing Data?”

Source: Winterberry Group surveyNot inhibiting interest /

investment in marketing data

Substantially inhibiting interest / investment in

marketing data

From Information to Audiences

What inspired the research?

What role is data playing in digital advertising today?

How should we be thinking about our “data strategy” for the future?

Our Agenda

Holistic Marketing Process Management

Effe

ctiv

e Pe

ople

M

anag

emen

t

The Complexity of Today’s Advertising and Marketing Programs Has Driven Many to Re-Examine their Internal Operating Silos

Brand Mktg.Direct Mktg.Digital

Mktg.SalesLoBs

ITInt’lFin.

What’s at stake?• Data• Strategic Resources/Authority• Creative Assets• Investment Capital• Knowledge/Expertise

Holistic Marketing Process Management

Effe

ctiv

e Pe

ople

M

anag

emen

t

Requirement: Improved Operating Structures

Efficient, EffectiveAd./Mktg. Execution

ProcessDesign

PeopleMgmt.

TechnologyDeploy.

StrategicUtilization

of theSupplyChain

Requirement: Rules-Driven Integration of Disparate Data Sets

First-Party Third-PartyAnonymization

Aggregation

Requirement: A Strong Network of Data-Centric Technology and Service Partners

Asset Management

Scheduling/Routing

Creative Optimization

Data Processing

Ad Operations

Business Rules Mgmt.

Web Analytics

Real-Time Media Buying

Budgeting

Yield Management

Distributed Mktg. Mgmt.

Creative Production

Ad Serving

Ad Verification

Campaign Management

Requirement: Marketing Data Governance

PII vs. Non-PII External & Self-Regulation

Transparency Marketing Use Guidelines

3.3

3.4

3.5

3.6

3.7

3.7

3.7

3.9

3.9

3.9

3.9

4.1

1 2 3 4 5

Clarifying regulatory barriers to data utilization

Storing / warehousing data more efficiently

Reducing latency / processing data more rapidly

Simplifying the processes by which third-party …

Extracting greater value from the use of data …

Linking data inputs (and the appropriate rules …

Improving data hygiene and quality assurance

Improving automation abilities

Identifying dedicated data staff and building …

Improving access to granular audience …

Integrating across different data collection …

Improving attribution across channels

“To What Extent Do the Following Reflect Your Long-Term (2013 and Beyond) Priorities for Improving the Usefulness of Marketing Data?”

Source: Winterberry Group surveyNot a priority for us

(or our clients) in the long term

Very important priority for us (or our clients) in the

long term

Thanks to Our Sponsors and Contributors!

Jonathan MarguliesManaging Directorjmargulies@winterberrygroup.com(212) 842-6031

www.winterberrygroup.com/ourinsightswww.iab.net/marketingdatause