targeted content: the nunatak group update vi
DESCRIPTION
SPOTLIGHTIn the age of mobile and social media consumers are increasingly expecting to receive relevant content instead of searching for it.In this setting publishers need to provide content that reflects the consumer's interests and needsat the right time and in a suitable context.By using data, publishers can identify target groups and push campaigns and content more efficiently.Targeted content in combination with native advertising provides an environment for sellingadvertising at a premium price point.UPDATETARGETED CONTENTSeptember 2015 www.nunatak.com Issue 6DEFINITIONTargeted content is the visible output of a data-informed interaction between publishers andtheir audience, which transforms generic information into relevant content. Publishers cancreate a seamless content experience by following the user across all devices and by analyzingthe situational context. Furthermore, they can actively sell personalized and nativeadvertising with much higher success rates compared with standard display advertising.AdMob provides toolshelping developers to placemobile advertisingAmazon's DMP* boosts salesby providing customized productrecommendationsFacebook launches "Like"button and thus collects dataabout user preferencesGoogle Now delivers situationallyrelevant content by analyzinghistorical and real-time dataApple News collects stories from varioussources and reflects the users' interests – themore they read, the better the app getsFacebook launches Instant Articlesin partnership with publishers to displayentire articles directly in the newsfeedGoogle Analytics islaunched as a websiteanalytics tool2005200620092012201220152015Sources: 60secondmarketer (2014), Google (2015), Facebook (2015), Apple (2015) I *Data management platformKey drivers for targeted contentBenefits and risksSources: The Atlantic (2015), Shareaholic (2015), eMarketer (2014), Andreessen Horowitz (2014) I *hh:mm, US (18+)>Targeted content helpsto attract and retainthe audience by providingrelevant content in apreferred environment>Facilitates engagementby adapting contentto continuously changinginterests>In combination with nativeadvertising and contentmarketing, higher advertisingrates can be charged>Targeted content helps toattract potential customersby presenting them withcompelling content>Influences the purchasingdecision and generatesleads by offering contenteven before the customerstarts searching forinformation>Empowers employerbranding and thus facilitatesthe recruiting process>Users no longer need tosearch for relevant content,since it is delivered in atimely manner>As content is based onthe user's interests andpreferences, it makes themfeel more personallyaddressed>Consumers are increasingly developing the attitude: "If content is relevant it will find me">Intense usage of mobile devices is accelerating the trend towards feeds that filter information>Media companies losetheir brand visibility andad revenues by increasinglydepending on third partyplatforms. (The risk canbe minimized by enteringinto partnerships, in whichplatform owners give fullcontrol of branding, designand revenue shares, e.g.Instant Articles)>Legislative data protectioncan prevent the targetingprocess. (Publishers mustensure they use approacheswithin the legal framework)Users require a seamlesscontent consumptionexperience on multipledevices across differentplatforms (e.g. socialmedia)Publishers can reach theirusers at the right timewith the right contenton preferred devices,due to ubiquity of wirelesscommunications80% of adults worldwide will own asmartphone by 2020… have decreased by about 50%in recent yearsAverage time* spent per day on mobile increasedsubstantially between 2010 and 2014SOCIAL MEDIAMOBILE12Social Media platforms suchTRANSCRIPT
7/17/2019 Targeted Content: The Nunatak Group Update VI
http://slidepdf.com/reader/full/targeted-content-the-nunatak-group-update-vi 1/4
S P O T L I G H T
In the age of mobile and social media consumers are increasingly expecting to receive relevantcontent instead of searching for it.
In this setting publishers need to provide content that reflects the consumer's interests and needsat the right time and in a suitable context.
By using data, publishers can identify target groups and push campaigns and content more efficiently.
Targeted content in combination with native advertising provides an environment for sellingadvertising at a premium price point.
UPDATETARGETED CONTENT
www.nunatak.com Issue 6September 2015
D E F I N I T I O N
Targeted content is the visible output of a data-informed interaction between publishers and
their audience, which transforms generic information into relevant content. Publishers can
create a seamless content experience by following the user across all devices and by analyz-
ing the situational context. Furthermore, they can actively sell personalized and native
advertising with much higher success rates compared with standard display advertising.
AdMob provides toolshelping developers to place
mobile advertising
Amazon's DMP* boosts salesby providing customized product
recommendations
Facebook launches "Like" button and thus collects dataabout user preferences
Google Now delivers situationallyrelevant content by analyzinghistorical and real-time data
Apple News collects stories from varioussources and reects the users' interests – themore they read, the better the app gets
Facebook launches Instant Articlesin partnership with publishers to displayentire articles directly in the newsfeed
Google Analytics islaunched as a websiteanalytics tool
2005
2006
2009
2012
2012
2015
2015
Sources: 60secondmarketer (2014), Google (2015), Facebook (2015), Apple (2015) I * Data management platform
7/17/2019 Targeted Content: The Nunatak Group Update VI
http://slidepdf.com/reader/full/targeted-content-the-nunatak-group-update-vi 2/4
Key drivers for targeted content
Benets and risks
Sources: The Atlantic (2015), Shareaholic (2015), eMarketer (2014), Andreessen Horowitz (2014) I * hh:mm, US (18+)
>Targeted content helps
to attract and retain
the audience by providingrelevant content in a
preferred environment
>Facilitates engagement
by adapting content
to continuously changing
interests
>In combination with native
advertising and content
marketing, higher advertis-
ing rates can be charged
>Targeted content helps to
attract potential customers
by presenting them withcompelling content
>Inuences the purchasing
decision and generates
leads by offering content
even before the customer
starts searching for
information
>Empowers employer
branding and thus facilitates
the recruiting process
>Users no longer need to
search for relevant content,
since it is delivered in atimely manner
>As content is based on
the user's interests and
preferences, it makes them
feel more personally
addressed
>Consumers are increasingly developing the attitude: "If content is relevant it will find me"
>Intense usage of mobile devices is accelerating the trend towards feeds that filter information
>Media companies lose
their brand visibility and
ad revenues by increasinglydepending on third party
platforms. (The risk can
be minimized by entering
into partnerships, in which
platform owners give full
control of branding, design
and revenue shares, e.g.
Instant Articles)
>Legislative data protection
can prevent the targeting
process. (Publishers must
ensure they use approaches
within the legal framework)
Users require a seamlesscontent consumption
experience on multiple
devices across different
platforms (e.g. social
media)
Publishers can reach their
users at the right time
with the right content
on preferred devices,
due to ubiquity of wire-
less communications
80% of adults worldwide will own a smartphone by 2020
… have decreased by about 50 %in recent years
Average time* spent per day on mobile increasedsubstantially between 2010 and 2014
S O C I A L M E D I A
MOB I L E
1
2
Social Media platforms such as Facebook driveabout one third of overall trafc to site
160
140
120
100
80
Q1'11
Q2 Q3 Q4 Q1'12
Q2 Q3 Q4 Q1'13
For media companies For brands For users Risks
2010 2014
2:510:24
Trafc referrals fromFacebook
nytimes.com website visitors
7%
15%
8%
25%
2011 20132012 2014
(in million)
7/17/2019 Targeted Content: The Nunatak Group Update VI
http://slidepdf.com/reader/full/targeted-content-the-nunatak-group-update-vi 3/4
>Collect data from various digital interactions
>Leverage psychographic, demographic and behavioral
data to learn about the target audience, their interestsand how they individually consume content
>Analyze which device and platform types are most
relevant for the targeted group
>Approach customers in their preferred environment
>Create content according to identifed interests and
consumption patterns >Focus on compelling elements
and easily digestible formats (e.g. listicles and short
videos) in order to catch the user's attention
>Distribute content on relevant channels wherever
the users are, e.g. spread content via social media
platforms and make it engaging
>Identify indicators such as attention gained and
successful conversions to measure performance
>Use tracking tools and feedback loops to optimize
performance of the targeting process
P R O C E SS A N D R E Q U I R E M E N T S
C O S T S O F P R O M O T IN G C O N T E N T
Sources: Contently (2015), Bloomberg (2015)
The more specic the data sets, the higher the CPC (cost-per-click) rates
>Platforms with detailed data sets help publishers to target their
audience >LinkedIn provides access to job titles, experience, location andmany other attributes, increasing its advertising rates
C O N T E X T U A L
R E C O M M E N -
D A T I ON
>Outbrain and Taboola aredominant distribution
platforms promoting contenton third party websites via
recommendations
>Both companies work on providing features to targetcontent individually to the
user by placing more
specic recommendations
>Contextual contentrecommendation is forecast
to reach $ 3.4 billion inrevenue by 2018 Target group
analysis
Channel
identication
Content
creation
Content
distribution
Tracking
and optimization
0.25
0.25-0.35
0.50-0.55
0.50-0.60
3.50-4.50
0.5 0.75 1 2 3 4 5
CPC in $
Outbrain
Platforms
Feedback Loop
I N S T A N T
A R T I C L E S
>Instant Articles enablemedia companies to target their
audience on social media.
Facebook was the rst big playerto offer this kind of content,
Google and Twitter are workingon comparable solutions.
> Access to entire articleswithout driving users
to external websites makesnews consumption more
seamless
>Facebook and mediacompanies such as The New
York Times decided tomonetize the content by
sharing ad revenues
$3.4billion
7/17/2019 Targeted Content: The Nunatak Group Update VI
http://slidepdf.com/reader/full/targeted-content-the-nunatak-group-update-vi 4/4
The Nunatak Group is a digital strategy consultancy based in Munich.
Our focus is on Growth Strategy, Digital Finance, Digital Content, Digital Coaching and
Investment Support for companies in growth industries.
The Nunatak Group GmbH | Managing Partners: Robert Jacobi, Rupert Schäfer
www.nunatak.com | [email protected]
F U R T H E R R E A D I N G
If you have enjoyed reading this Nunatak Update, be sure to
check out our past issues on www.nunatak.com
No.1 No.2 No.3 No.4
Who is already using targeted content?
Sources: The Verge (2015), The Next Web (2015), Contently (2015) I * Process for Optimizing & Understanding Network Diffusion
>Google Now delivers
situationally relevant
content and search
results by aggregating
search patterns with
real-time data
>It predicts the user's
interests before they
even start searching for
content, e.g. news,
attractions and nearby
events matching user
profiles
>Spotify uses real-time
data (e.g. heart rate)
to tailor the music
experience suitable to
user's activities and
moods
>It enables publisher
to place their content
more compellingly,
e.g. fitness related ads
during a workout
>BuzzFeed uses its
Pound* technology to
understand how con-
tent is shared across
various networks by
following the path
of diffusion from one
sharer to another
>This helps to deliver
shareable content
that will appeal not
just to users but also
to their friends
No.5
Q U O T E S
"Content is King, but
Distribution is Queen."
Jonathan Perelman,
Head of Digital at Buzzfeed
"We stopped counting
on homepages and
apps. (...) Social is
where our girl is. (...)
That is where she
lives."
Kate Lewis,
VP Hearst Digital
G o o g
l e N o w
c a r d s
S p o t i f y a p p
N e t w o r k d i f f u s i o n