reach with certainty

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


UV

Inde

x

Bank #3


UV

Inde

x

Bank #2


UV

Inde

x

Intent to PurchaseBuy Life Insurance Very Likely


UV

Inde

x

Intent to PurchaseBuy Insurance Very Likely

Homeowner or Personal Property


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


UV

Inde

x

Publisher #1148 MM UVs

0

50

100

150

200


UV

Inde

x


0

50

100

150

200

PersonicX Consumer SegmentsU

V In

dex


0

50

100

150

200


UV

Inde

x

Network TV #3

0

50

100

150

200


UV

Inde

x

Network TV #2

0

50

100

150

200


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

reach with certainty

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