eMarketer: Online shoppers want recommendations and act on them but complain about relevance


The last quarter of 2009 should be partly remembered in the advertising community as a juncture when big agencies -- namely Omnicom Media Group, The Nielsen Company, and WPP -- announced consumer data mergers. The deals entailed the marriages of offline and online data and appeared to reveal a potentially major stepping stone in the evolution of "hyper-targeting."
Some of the agencies have trumpeted their newfound ability to create consumer segments related to behavioral elements such as "passion points" (e.g., shown interest in electronics, photography, fantasy football, etc.), as well as geographic location, beverage preferences, favorite social media sites, activity levels at the sites, and so on.
Oct. 22: Omnicom Gets Access to Fox Consumer Panel
Omnicom fired the first warning shot when announcing access to News Corp.'s Fox Audience Network (FAN) consumer panel, which pulls data from 700 publisher sites. FAN's audience segmentation system allows Omnicom to group anonymous online consumers who share mutual interests like sports, movies, and music, and then target them. It has been plugged into Omnicom's multichannel data-driven campaign management tool, Living Segments.Nov. 2: Nielsen in Pact to Use Offline Data for Online Ad Targeting
Two weeks later, Nielsen and consumer data firm DataLogix forged an agreement to allow household-level online ad targeting using Nielsen's audience cluster PRIZM data. Several ad networks, including Audience Science and Collective Media, are offering the targeting capabilities to advertisers.Nov. 10: Compete & Sister Company Merge Data
Then, Kantar, part of WPP, combined data from its marketing research firms Compete Inc. and Cannondale Associates to help brands link the effectiveness of digital campaigns to in-store consumer purchases. Compete's online consumer research panel of two million viewers was hitched to its sister company's ShopperGenetics data platform, which collects info from the loyalty cards of 80 million households.Dec. 15: WPP to Leverage Kantar Data
Lastly, WPP Digital said the month-old data merger from its Kantar properties, Compete and Cannondale Associates, would now, in theory, help create better media planning for WPP's Media Innovation Group (MIG) division.
The mergers certainly open up interesting targeting opportunities, however media agencies are only as good as the people they hire and in some markets they are still amongst the lowest paying. The greatest database is useless if you don't have smart people extracting actionable insights form it.
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Looks like marketers are getting worked up about behavioural targeting without reason but Google could probably do a better job at promoting their opt-out service and raising awareness about the option as well.
Nine months ago, when Google first introduced behavioral ad targeting, it also rolled out an ad preferences manager. The page allows Web site visitors to edit their advertising interest categories -- for instance confirm an interest in cars or entertainment -- or to opt out of behavioral targeting altogether.
As it turns out, relatively few users visit the page, and among those who do only a small fraction opt out, according to Google. The finding suggests that those who seek out the page are predominantly comfortable with Google's behavioral ad practices.
"A good percentage of users are saying they'd rather control [behavioral targeting] than opt out," said Wong.
A rough calculation suggests that at the most, about 6,600 of Google's users are opting out of ad targeting per week. The figure is based on a generous estimate that the site captures 99,000 visitors on an average week -- the most possible if the site is indeed capturing tens of thousands yet not more than 100,000 visitors, as Google indicated to ClickZ.
Under this estimate: 6,600 (number of users opting out) x 4 = 26,400 (number of users editing preferences) x 10 = 66,000 (number of users taking no action). The sum of those three is 99,000 -- again, the maximum number of weekly visitors to page, according to Google.
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Omniture have finally spent some time fixing Omniture’s Test & Target interface and will be releasing it on 5th of November. What you’ll see in the new release is:
Our biggest frustration with Test & Target has always been the resource time to manage the programs, particularly if you’re using it to target weekly promotions - hopefully this should make the process faster. Omniture, we ’d still like to see bulk uploads through csv’s or an API – this would be a great platform to integrate with a CMS. Integrating targeting information from other applications such as a CRM into the campaign interface would also be nice rather than having to manage this process outside of Test and Target. http://teamoffermatica.com/launch/campaign_edit.html
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Travelocity Offers Hope in Evolution of Display Advertising. Targeted Audience and Real-Time Campaign Updates Put Brand's Efficiency Ahead of the Industry Curve
An early sign of hope for the channel comes from Travelocity, whose best-performing online ad campaigns came after the No. 2 online travel agency sought to deliver customized messages based on its visitors' site search history.
Last year, the travel site dumped the old way of online display ads, such as serving up generic messages like "Find low fares on Travelocity. Book now." Its messages are now targeted in real-time based on visitors' most recent search activities.
Travelocity's targeted approach has yielded big improvements over its previous online campaigns; new campaigns require fewer ad impressions to convert site visitors to purchasers, driving Travelocity's cost-per-transaction down 79%. It also saw a 230% increase in bookings; click-through rates jumped 651%.
Wow, nice press release but unfortunately Vodafone was doing the same thing already two years ago with our help, I know we should have started writing our blog earlier. Back then we dynamically wrote Eyeblaster re-targeting tags into pages based on product pages visited, external search terms as well as internal site search terms which then allowed us to customize the display banner activity outside the Vodafone website. Drop us a line if you're interested in a similar solution to improve your media ROI. It's not rocket science, can be implemented quickly and only needs a bit of planning.
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Check out the slides from my recent guest lecture at the ADMA Digital Certificate course. This time it was about customer experience across multiple channels and how data can help improve the experience for prospects as well as existing customers.
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Interesting survey (details below), paints a completely different picture to the previous research I've seen on eMarketer. Would be nice to see some Australian results on this topic.
"ABOUT two-thirds of Americans object to online tracking by advertisers — and that number rises once they learn the different ways marketers are following their online movements, according to a new survey from professors at the University of Pennsylvania and the University of California, Berkeley."
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If you're a stingy marketer or don't have the biggest budget you can now use Google Real Estate instead of Mosaic to identify affluent suburbs by searching for listing below $500,000 and above $1,000,000.
http://maps.google.com/help/maps/realestate/
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Follow the below link to add or delete interests to your Google profile so you only see ads that are relevant to you. Why is not every publisher or online retailer offering something similar? The technology certainly is not rocket science and aside from increasing trust with customers by being open about profiling and putting them in control it has also the potential to significantly increase response and conversion rates!
http://www.google.com/ads/preferences/Interest areas you can chose from are: Animals, Arts & Humanities, Automotive, Beauty & Personal Care, Business, Computers & Electronics, Entertainment, Finance & Insurance, Food & Drink, Games, Home & Garden, Industries, Internet, Lifestyles, Local, News & Current Events, Photo & Video, Real Estate, Recreation, Reference, Science, Shopping, Social Networks & Online Communities, Society, Sports,. Telecommunications, Travel. Email this postComments [0]
Are you showing the same content and ads to all prospects and customers? Would you like to test what more customized website content and online ads would do to your conversion and response rates? Flick through our recent presentation at the ADMA Digital Council on advanced online targeting if you want to find out more and get an overview of some of the challenges, technologies and concepts.
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