reach with certainty
Post on 16-Jun-2015
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Reach with Certainty
An Acxiom White Paper
While online contextual and behavioral insights abound, an
important insight — knowledge that a visitor is, in fact, your
intended audience — fails on an epic scale: as much as 80%
according to some estimates1. Considering the global market
reached $14 billion in 20092, that’s an $11 billion “fail.”
The lack of certainty also causes a more insidious problem. When brands can’t reach with certainty, they overspend
on low value customers and prospects, and under spend on high value opportunities. Given the top 30% customers/
prospects are typically five times more profitable3; the lack of certainty costs advertisers huge profits.
Finally, most innovation (agency trading desks and demand-side platforms) focus more upon disintermediating existing
ad networks rather than solving the audience certainty problem. While good for tech investors, this innovation does
little for brands.
Advertising is like a box of chocolates: you never know who you’re gonna getGuided by his mother’s famous advice, Forrest Gump took us all on an unpredictable, humorous journey. In online
advertising, unfortunately, uncertainty is far from a laughing matter.
If brands and direct response marketers could reach with certainty, they would…
• Filterouttheunintended/undesired,suchaspromiscuousbuyerswithlittleloyaltyintent,orthoseinanunserved
geography
• Double-downondesirablerelationships—thosewhocross-buy,whostay,whorecommend,andwhohavelower
service costs
• Versionthemessagetodriveengagement/conversion.Forthefirsttime,onlinecreativecanconnectwithproprietary
brand personas with certainty
Reaching with certainty also enables monumental progress in measuring advertising effectiveness. Attributing financial
results to advertising/marketing spend is hard, exacerbated by low confidence that an audience was actually reached
(let alone positively influenced). Improvements in effectiveness of 10-30% across all media (not just online) via proper mix
optimization are realistically achievable.
Acxiom
1REACH WITH CERTAINTY
“Houston, we have a problem.”
Commander James Lovell’s famous words were the call to action for the dramatic Apollo 13 rescue mission. Advertising’s
call to action is found in the disturbing variances between branded website traffic and consumers with intent. Said
another way, most branded sites are not getting their fair share of high value visitors. Consider the following masked
example, comparing consumer lifestages for a major financial services brand, its competitors, and those with intent.
Of course, different brands appeal to different audiences (these three banks show a wide variance). More importantly, like
this example, most major brands are over-represented in marginal/low value traffic and under-represented in high value
traffic. That, ladies and gentlemen, is a marketing crisis.
In response, brands often turn to broadcast television or online advertising on major destination sites. Unfortunately, their
homogenous viewers/traffic makes it difficult to select just the audiences that matter. Consider the following examples,
comparing selected online destinations and separately, viewership for the major broadcast networks.
PersonicX Consumer Segments
UV
Inde
x
Bank #1
PersonicX Consumer Segments
UV
Inde
x
Bank #3
PersonicX Consumer Segments
UV
Inde
x
Bank #2
PersonicX Consumer Segments
UV
Inde
x
Intent to PurchaseBuy Life Insurance Very Likely
PersonicX Consumer Segments
UV
Inde
x
Intent to PurchaseBuy Insurance Very Likely
Homeowner or Personal Property
PersonicX Consumer Segments
UV
Inde
x
Intent to PurchaseBuy Financial Products Very Likely
Acxiom
REACH WITH CERTAINTY2
A mass approach, even when digital, simply exacerbates the alarming chasm between high value customers and
branded site traffic. Unless, of course, you can reach just those customers/prospects who matter...and only those
segments…with certainty.
We’re not in Kansas, anymore.
In successfully finding her
way home to Kansas,
Dorothycleverlyadapted
to the circumstances in Oz.
Today’s marketers need to
adapt by concentrating ad
spend on those most likely
to be valuable, leveraging
newly available “reach with
certainty” tactics.
The increase in consumer savings rate has reduced U.S. consumer spending by $1.7 trillion/year4. Rather than simply
spending more to attract a more frugal consumer, advertisers are better served by leveraging the concentration multiplier
principle. By “concentrating” on high value segments, reached with certainty, advertisers can drive a 3-5 fold “multiple” in
value per ad dollar invested.
Acxiom
PersonicX Consumer Segments
UV
Inde
x
Publisher #1148 MM UVs
0
50
100
150
200
PersonicX Consumer Segments
UV
Inde
x
Publisher #356 MM UVs
0
50
100
150
200
PersonicX Consumer SegmentsU
V In
dex
Publisher #296 MM UVs
0
50
100
150
200
PersonicX Consumer Segments
UV
Inde
x
Network TV #3
0
50
100
150
200
PersonicX Consumer Segments
UV
Inde
x
Network TV #2
0
50
100
150
200
PersonicX Consumer Segments
UV
Inde
x
Network TV #1
0
50
100
150
200
CONCENTRATION TRADITIONAL VARIANCECampaign Cost Impression Volume 37,500,000 100,000,000Cost per Thousand $800 $300 Total Campaign Cost $300,000 $300,000
Revenue GeneratedRevenue/Conversion $500 $250Purchase Rate .02% .01%Total Conversions 7,500 10,000 Total Revenue $3,750,000 $2,500,000 $1,250,000 50% higher
Total Revenue/Ad Dollar $12.50 $8.00 $4.17 50% higher
CLTV $4,000 $1,250 Total CLTV $30,000,000 $12,500,000 $17,500,000 140% higher
3REACH WITH CERTAINTY
Your audience. Addressable anywhere. Reached with certainty.
To reach with certainty requires consumer insight, technology and compliance with privacy best practices.
Acxiom enables marketers to reach just their audience with certainty across:
• 200millionInternetportraits
• 70millionmobileportraits
• 86millionpermission-basedemailaddresses
• 650millionsocialportraits
• 122millionpostalhouseholds
• 6millionTVhouseholds
Your personas, segments, and models reach intended
audiences with certainty.
You drive awareness, consideration, intent and
favorability with certainty.
Insight into media effectiveness, throughout the purchase
cycle and across channels, improves because your
customers and prospects are reached with certainty.
Taking the first step
Contact Acxiom for a complementary assessment. Often, reaching with certainty can be entirely funded by remixing
existing media expenditures.
AdvertisersPublishers
Collaboration
TargetAudience Set
AvailableImpressions
Acxiom
• 5,700clientsin40countries• Compileandupdateinformationon 500 million consumers around the world• Perform83billioncustomerrecognition
events per month• Perform18trillioncustomerupdates/year• Evaluate65,000privacypolicies/year
1 ComScore, 20092 eMarketer, 20103 Acxiom, average analysis of customers4U.S.BureauofEconomicAnalysis(http://www.bea.gov/BRIEFRM/SAVING.HTM) (http://www.bea.gov/national/nipaweb/TableView.asp?SelectedTable=58&Freq=Qtr&FirstYear=2007&LastYear=2009)
• Manage/execute250,000campaignsperyear on behalf of clients
• Engage375millioncustomerspermonth• Maintainover4,000databasesonbehalf
of clients• Manage23,000serversonbehalfofclients• Manage3,000clientservicerequestsperday
Acxiom profile (www.acxiom.com)
REACH WITH CERTAINTY4
See how Acxiom can work for you.
For more information, visit our website
at www.acxiom.com or call:
1.888.3ACXIOM
AC-0333-10 ELEC 4/10
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