MDM

							“Making the Web Work to Market your Business”

    The Future of Web-Based Advertising
              Microtargeting

                 Susan Burton Lowry
                  Senior Consultant
                    ATTEVO, Inc
The State of Web-Based Advertising

 Twelve years after the first appearance of web-based advertising, the industry
 now stands as a legitimate heavyweight.
 Growth rates average over 30% annually and new advertising opportunities
 arise daily.




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The Emerging Landscape

 Increasing e-commerce in luxury items: (diamonds, watches, cars)
 Micropayments on the web
 Alternative revenue models (like link commissions paid by
  Amazon.com, Froogle)
 Tagging, other viral methods
 Advertorials
 RSS feeds, MMS, SMS
 Blogs, VBlogs
 IM (AIM Pro- Powered By WebEx)
 Online communities: MySpace, Microsoft‟s Windows Live Spaces




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    The Smart Bomb
    Advertising is all about reaching the right people with the right message
      Microtargeting is the equivalent of a smart bomb.

    Direct Marketers have been using it for years:
           To expand their customer base
           To drive cross-sell and up-sell opportunities

-    Recently coined in the political arena; also is called „narrowcasting‟


How does it work?
     Marrying demographics with psychographics to reveal common denominators of
     „likelihoods‟ and preferences.

     Microtargeting in the polical arena has shown that people who like Dr Pepper and
     monster trucks tend to be more Republican, while people who choose Sprite and pro
     wrestling are more likely to be Democrats.

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The Database
   Every time you use your credit card, book a flight, or surf the Internet, you
    leave a data trail of products you like. Companies and political groups
    purchase that information from consumer data banks such as Equifax and
    Axciom, and combine it with census information, voter lists, magazine
    subscriptions, and other public records [such as whether or not you own a
    hunting license].


   Acxiom has one of the largest collections of consumer data in the country
    that comes from many sources, including airlines, credit card companies,
    cruise lines, retail stores and direct marketers (catalog companies).



   This data-mining allows you to create profiles that are most likely to match
    your „best customers‟ based on their buying habits, payment methods,
    marital status, income levels, etc.
The Message

   A key part of microtargeting is not only categorizing the audience,
    but figuring out the messages that would best appeal to them.


 Microtargeting involves predictive analysis. If you buy a lot of peanut
  butter, a predictive analysis might suggest that you'd be open to a
  pitch for jelly. The technique has been around since the 1970s when
  State Farm Insurance, for one, combined its auto and homeowner
  policy lists and cross-sold customers on both. Since then, political
  parties have caught on quickly to predictive logic.

 Targeting is based on behavior !
   --You understand a lot more about a person based on how they spend
  their time and money, rather than on how they identify themselves.


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The Business Examples

Walt Disney World
        Tapped Acxiom's Personicx database of 120 million U.S. homes to generate
         profiles of its customers.

         Using variables including age, income and Internet use, Disney found 14
         metropolitan areas that house the majority of its current customers.
         The company learned of 10 similar locales it hadn't even known about!

Food Lion
        Worked with Acxiom on a segmentation strategy that highlighted 6.8 million
        households.

         Using the data, Food Lion discovered why a program pushing meat in rural
         stores only worked about half the time.

         Consumers in the slow-selling stores tended to be older and not as likely to buy
         meat as younger shoppers.


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The Control

Users and Consumers have more control over the ads they see or
don‟t see:
        Ability to Skip, Ignore, or Close Browser window for online ads.
        DVR Technology enables users to FF through commercials
        Online video without commercials (ie Yahoo! release of Heroes
        online before the season premiere showed before network tv)

        TV sponsorships that „own‟ the time slot with no commercials
        (ie Nip/Tuck Show on F/X networks)
        Free commercial-free online radio (XM Radio online for AOL
        members)

OF NOTE:
The more control users feel they have over the process of interacting with your
company [brand] , the more brand equity and customer loyalty you‟ll build.

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The Future Possibilities

Online microtargeted sponsorships will emerge as a significant model
along with device-centric advertising.




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