Display Industry Execs Call For Education On Data Use
Ignorance is bliss, but not when it comes to tapping data to target display ads. In fact, not knowing the nuances can turn a brilliant ad campaign into a costly disaster. That's why Netmining put out a call-to-action to educate marketers on the use of data in display advertising campaigns.
The company created a guide, along with contributions from Turn, Appnexus, Evidon, Media6Degrees, Google and others to provide marketers with the nuances of using data to locate and target correct audiences with relevant ads.
Data increasingly becomes a crucial element in online marketing campaigns as the Web becomes more complex and tools become more sophisticated. Some companies like Magnetic have gone as far as partnering with engines to integrate search data when targeting display ads.
The guide, "Mapping the Display Landscape: A Fundamental Guide to Data, Targeting & the Future of Display," identifies challenges and answers questions on data, targeting and the state of display advertising that marketers and media buyers have today. Some marketers believe a lack of education on available data and how it applies to display advertising hinders investments in the space. It remains one of the "biggest barriers" to driving more display dollars, especially when it comes to targeting advertisements.
Netmining President Chris Hansen will present the guide at an event in New York City Tuesday night. "We understand the display space is often viewed as fragmented and confusing," he said. "This is why, along with the guide, we set up a panel of leaders in display advertising and data targeting to help everyone from CMOs to media buyers navigate this changing landscape."
In the guide, marketers will find a map of the display landscape detailing advice on working with data and audience segments. It also provides insights into privacy controls, and identifies trends for a data-driven display landscape. Definitions for real-time bidding, ad exchanges, demand-side platforms, and online data and exchanges provide insight into when and who should consider using these tactics and companies to build a display campaign.
The Data Marketing Funnel illustrates how marketers can use third-party data to target audiences throughout the customer life cycle. For example, data at the top of the funnel, such as demographic and contextual, reaches a broad audience and can become a strong driver of brand awareness and site traffic.
At the bottom of the funnel, data owned by the brand -- or first-party data -- reaches a smaller, more qualified audience. This data identifies consumers who have visited the site previously. Experienced marketers know this data can result in higher performance and conversions for display campaigns.
Colin O'Malley, co-founder and vice president of strategy and policy at Evidon, delves into privacy and self-regulation, because using third-party data to target ads to consumers impacts any company.
Consumer research by Evidon from November 2010 demonstrates that 67% of consumers feel more positive toward brands that give them control including opt-out options, and 36% are more likely to buy from brands providing more information. To demonstrate privacy compliance, O'Malley suggests brands offer enhanced notice and choice to consumers on campaigns and owned Web sites where marketers use or gather third-party behavioral data. Notice usually consists of the Advertising Option Icon and accompanying AdChoices text.
The guide suggests that marketers should use both top-of-the-funnel and bottom-of-the-funnel data in campaigns. While bottom-of-the-funnel data performs better and delivers higher return on investment (ROI), campaigns using top-of-the-funnel data will help marketers broaden their reach to other consumers and replenish the bottom of the funnel by increasing the number of people who visit their Web site.
The guide also discusses how to use first-party data to target consumers brands already know, and third-party data to find new sources of qualified consumers, ways to move from raw data to audience targeting or retargeting, and how to target audiences to brand companies, products, or services.