Neil PerryVice PresidentiMedia Communications

Insight Presentation:

Behavioral Targeting

Agenda

– What is Behavioral Targeting?

– The Four Types

– Case Studies

iMedia / Ponemon Study

– Based on Media Director Reponses:

• 13% of 2005 Buys are Behavioral Targeting

• 21% of 2006 Buys will be Behavioral Targeting

What is Behavioral Targeting?

– Targeting Web Users Based On Observed Behavior

• Target People, Not Pages

Four Types of Behavioral Targeting:

– Publisher– Network– Ad Optimization – Computer

Publisher Side

– Individual websites track behaviors, target consumers “of like mind”

– Segment Audiences• Auto, Pharma, Finance, etc.

Travel Industry Case Study

– Unidentified Client– Publisher Side Behavioral Targeting

+ Dynamic Logic Study– Measures Actions & Attitudes

Travel Sector – Results:

– 100% Lift in reaching Business Travelers (vs. RON)

– 75% Lift in reaching Leisure Travelers (vs. RON)

– 18% Lift in reaching Travelers – planning trip in 6 months

• Persuasion Metrics Up

• Brand Favorability and Purchase Intent Increased

Brand Metric Measurement

Ad Network Side

– BT Advertising Run Over Many Sites

• Broader Reach; Consistent Target

• Narrower Criteria

e-Diets

– Buy included Behavioral Targeting, Contextural, and Run of Site Ads

– Network - 800 sites– Drive visits to e-Diets – Drive Newsletter sign-ups– 4X Frequency Cap

• Health and Fitness Buffs• Active Adults

0

50

100

150

200

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450

Click-thru Rate (indexed to averageCTR for entire the network)

Behavioral

Contextual

Run-of-Segments

* Index normalized to adjust for relative ad performance level differences among sites and sections where ads were distributed

Ad Optimization

– An Ad Optimization Engine; a Decision Tool

– Determines Appropriate Ad for Consumer at the Appropriate Time

– Based on Past Site Behavior

• Monster Case Study

– Employed Network Behavioral Targeting

+ Ad Optimization Strategy

– Dramatic Results

Monster Case Study

– Drive employers to post jobs– Drive job seekers to post resumes– Behavioral Targeting delivered ads

based on websites visited, time of day, geography, etc.

Ad Optimization Strategy

– Target visitors to Monster.com•Failed to post resume

– Ads delivered based on behavior•Adjusted frequently

Monster Results !!!

Jun 04 Jun 05

Job Postings

20K

40K

60K

100K LeadBack implemented

Over 590,000 jobs posted to date!80K

Sept 04 Jun 05

10K

20K

40K

60K

30K

50K

Resume Postings

63% Increase

Nearly 300,000 resumes posted to

date!

Netscape

– Millions of Page Views– Potential ISP Conversion

Opportunity– Portal Ad Unit

Ad Optimization - Netscape

– Right Message, Right Person, Right Time

– Deliver Intelligent, Informed Offers

Modeling

– 12% of Impressions Delivers 90% of Registrations

– Only Best Prospects Get Ads• Balance of Inventory Sold Off

– Visitors Scored Instantly• And get appropriate message

• Increased ISP Registrations

• $16.5mm in Incremental Ad Revenue

• Computer Behavioral Targeting

– Computer Behavior Tracked in Total; Requires download of tracking software

– Usually accepted in exchange for free programs

– Results in higher conversions

• Questions…contact:

– Nick Johnson, Revenue Science– Bennett Zucker, Tacoda– Charles Whittingham,

Advertising.com– Joseph Zawadzki, Poindexter