From Mad Men to Mad Scientist

5 WAYS TO FUEL AD REVENUE WITH CONSUMER DATA

FROM MAD MEN TO MAD SCIENTISTS:

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SORRY, DON DRAPERRegarded as the golden days of advertising, the

1950s were full of notorious “ad men” ablaze

with the realization that they could satisfy the

masses and make millions by selling dreams

and desires - not products.

To achieve this, leading brands began collecting

publicly available demographic data like age,

gender and household income in attempt to

bucket consumers into basic personas like

“moms” and “teens,” and reach them with more

relevant and timely messages at scale.

While Don Draper & Co’s quest for more

personal campaigns was valid, their approach is

discredited by the simple fact that not every

mom wants a vacuum cleaner for Christmas.

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THE RISE (AND FALL) OF THE COOKIEThe rise of the Internet offered a much more immediate and individualistic view of consumers,

ushering in a new advertising model that traded in stereotypical blanket personas for

behavioral targeting using 3rd party cookies.

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This seemed like a great strategy in

the early days of the web when

consumers were hiding behind their

technicolor iMac G3s. But the surge

of mobile and social technologies has

crumbled 3rd party cookies into mere

trails of crumbs for brands to try and

piece together.

COOKIES

1 device

0 permissions

A handful of u

sers

Pinch of brows

ing

history

Track consumer

behavior

across Interne

t until delete

d!

?!

!

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NOW EVERYONE KNOWS YOU’RE A DOGWith modern consumers connecting with friends, family and brands via social networks, their real

identities have become seamlessly intertwined with their “virtual lives.” Every day millions of

consumers publicly share information about their relationships, hobbies, locations, desired products

and plans for the weekend.

This level of available data hardly calls for the need to track arbitrary behaviors across the Internet.

Not to mention, the growing number of connected devices - smartphones, tablets, TVs, wristbands -

makes this next to impossible.

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With direct, real-time connections to their

favorite brands, consumers are no longer

willing to weed through irrelevant

messaging and experiences - they

demand relevance. And the key to

creating relevance in today’s big data

landscape is identity.

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BIG DATA = BIG OPPORTUNITIESWith today’s number of channels and devices,

consumers are creating over 2.5 exabytes of data -

that’s more than 2.5 billion gigabytes - every single

day. What’s more, about 75% of this data is

unstructured, coming from sources like social

networks, text messages and videos (BBC).

Knowing this amount of “big data” is out there, how

do you even begin to capture it? How do you filter

through it and determine what’s important? And

how do you act on it in a meaningful, purpose-

driven way?

These types of questions call for a new data-driven,

identity-centric advertising approach. This white

paper examines how advertisers can successfully

leverage and optimize audience data and use it to:

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Go beyond retargeting

Create cross-channel impact

Increase rate cards

Uncover new and highly valuable segments

Optimize keywords and creatives with UGC

GO BEYOND RETARGETINGStrategy #1

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We’ve all been there - you have a moment of

weakness and just can’t resist clicking on that ad

from the local pet store with the picture of that

adorable kitten. Retargeting ensues, and you’re

bombarded with ads for Whiskas and catnip for

weeks. If only they knew you’re a dog person!

58% of consumers admit to being annoyed

by ads they don’t need (Marketing Charts).

IRRELEVANT ADS ARE BAD FOR BUSINESS

Nothing is more annoying (and creepy) than being followed across the Internet with ads for products

and services you simply don’t want or need. 88% of US consumers claim that they have been

inundated with “online ad spam,” and 9/10 say this has led them to take actions ranging from leaving a

website to boycotting a brand (Marketing Charts).

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RELEVANCE STARTS WITH 1ST PARTY DATAThe only way to continuously serve consumers more relevant and timely ads is by having a clear

understanding of who they are - which is something that cookies simply cannot give you.

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Leading brands are turning to 1st-

party data collection techniques,

like social login, to get an accurate,

real-time view of consumer identity

and go beyond impersonal

retargeting. Social login gives

brands access to the rich data

points housed in users’ social

profiles, including their interests,

relationships, favorite brands,

locations and more.

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PERSONALIZED PLACEMENTS

For example, remember the adorable kitten ad? If your local

pet store were using first-party login data, it would know you

have 2 dogs and love hiking, and could serve you ads for

retractable leashes and tick prevention medicine instead.

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86% of consumers say personalization plays a role in their purchasing decisions (Infosys), and leads who are nurtured with targeted content produce a 20% increase in

sales opportunities (DemandGen).

With a clear view of consumer identity, brands gain the ability to nurture customer relationships in

more personal and meaningful ways. Tying profile data captured via social login to users’ on-site

behaviors gives brands the ability to “retarget” consumers with ads that speak to their unique, real-

time interests, life events, locations, and so much more.

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PRIVACY VS PERSONALIZATIONMaking the transition from 3rd party to 1st party data is

also a way to combat growing data privacy concerns and

increase consumer trust.

Being unknowingly “cookied” as they make their way

across the web has taken its toll on consumers, so

much so that 71% state that they are now very

concerned about online companies selling or sharing

information about them without their permission

(ConsumerReports). Modern consumers recognize

irrelevant and unwanted ads as evidence of their data

being collected, bought and sold without their consent.

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1st party data collection techniques are transparent and direct, with consumers opting in to share

specific information with select brands. Using these permission-based insights to reach consumers with

more relevant and timely ads not only increases targeting accuracy and conversion rates, but it also

builds consumer trust.

CREATE CROSS-CHANNEL IMPACTStrategy #2

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HOUSTON, WE HAVE A PROBLEM

Unfortunately for marketers still depending on

3rd party cookies to re-target ads to consumers,

cookies do not translate to mobile devices. And

with mobile now accounting for nearly ¼ of all

Internet usage, this is a problem (Google).

90% of people move between devices to

accomplish a goal, whether it’s via smartphone,

tablet or TV (Mobify). Not to mention, many of

these devices are shared between multiple

consumers with varying demographics, interests

and needs. Without the ability to recognize

individual consumers across each of these

channels, how can advertisers reach them with

the types of influential messages that drive

desired behaviors?

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More Mobility, More Problems (for Marketers and IT)

Consumers use an average of 3 different

screen combinations each day (HubSpot)

Over 20% of consumers ages 18-49 visit

websites from 4 different devices each

week (Experian)

67% of online shoppers admit to having

recently made a purchase that involved

more than one channel (Zendesk)

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SINGLE VIEW OF CONSUMER IDENTITY

1st party login data gives businesses a single view into consumer identity, effectively tying all cross-

channel activity back to one identifiable user profile. This enables advertisers to create unity across

channels and build a cohesive, influential strategy where each consumer interaction informs the next.

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Pssst...Here’s a Tip:

To make your cross-channel strategy as seamless as

possible, aggregate all omni-channel data into a single,

centralized database. Be sure this database has direct

integrations and bidirectional data feeds with your

existing third-party marketing platforms so that all your

campaigns stay synchronized and relevant.

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INFORMING PROGRAMMATIC BUYING

The rise of cross-channel commerce has elevated the need for programmatic ad buying, which

automatically deploys placements based on a series of consumer triggers. Using real-time bidding

(RTB), advertisers can buy these placements in real-time to reach consumers with just the right

messages at precisely the right times.

For example, say a consumer logs-in to a major TV network site using her Facebook account. She then

streams two episodes of her favorite reality TV program. That network could then choose to

dynamically serve sponsored posts for its upcoming reality series to her the next time she logs-in to

Facebook on her smartphone.

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This degree of relevance not only creates more positive

experiences for consumers, but it also significantly improves

advertiser CTRs and CPCs. To effectively leverage programmatic

buying, a unified view of consumer demographic and

behavioral data across channels and devices is a must-have.

INCREASE RATE CARDSStrategy #3

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GROW USER ACQUISITION BY OVER 50%

At its most basic level, social login reduces

barrier to site entry by giving consumers a fast

and easy way to authenticate their identities - no

username or password required. Need proof?

Nearly 20% of Gigya clients using Social Login

have seen a more than 50% increase in

registration conversions!

What’s more, because they have willingly

entered a personal relationship with your brand,

socially logged-in users behave differently from

anonymous or traditionally logged-in

consumers. With personalized user experiences

and the ability to seamlessly connect with their

communities on-site, socially logged-in users are

proven to spend an average of 56% more time

on site and view 67% more pages.

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INCREASING VALUE FOR ADVERTISERS AND CUSTOMERS

1 in 3 consumers state that they will leave a website after seeing a single irrelevant ad (Corporate Ads).

Insights into consumers’ real-time locations, relationships, recently shared content and more enables

publishers to better match placements with their unique audience, eliminating irrelevant user experiences.

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While the level of customer insight and engagement generated by social login is important for brands looking to convert consumers, it is also key for publishers looking to drive subscription value and sell ad space.

And your readers aren’t the only ones who will appreciate more

tailored placements - watch your rate cards skyrocket along with

advertisers’ confidence that they are reaching the right audience.

A recent Forrester report documents how 2 major publishing brands

experienced a 50% increase in ad revenue in just one year after

implementing first-party data collection and management

infrastructure.

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FOR EXAMPLE...

Using Gigya’s social and traditional sign-in, the broadcasting brand gains permission-based access to users’

first-party data. All data is stored within Gigya’s centralized Identity Storage database, which provides a

unified view of consumer identity across channels, and seamlessly integrates with Adobe

AudienceManager.

The broadcasting company is then able to dynamically serve display ads based on viewers’ genders,

interests, locations and more, resulting in a 22% improvement in targeted ad performance.

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Following the launch of its new reality series, a major

television broadcasting company recognized the

opportunity to create more relevant site experiences

for the millions of visitors to the show’s website while

driving increased advertiser revenue.

UNCOVER NEW AND HIGHLY VALUABLE SEGMENTS

Strategy #4

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FROM CTR TO ROI

Advertisers have spent decades pouring over

metrics like impressions and CTR. These metrics

are great for evaluating ad performance - but do

little to tell you about the consumers clicking on

your ads and how their behaviors impact your

bottom line.

The ability to tie consumer identity and cross-

channel activity directly to KPIs and purchase

behaviors empowers you to segment your

audiences and campaigns in more strategic ways,

driving desired behaviors and advertising ROI.

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AUDIENCE SEGMENTATION

1st party audience data enables you to start asking questions like:

What are the unifying demographics of your most loyal

customers?

Are there any common interests between visitors that

continuously abandon cart?

Which devices are consumers using to interact with your

brand? To checkout?

Do consumers that share particular content spend more time

on site?

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Bucketing consumers into particular segments based on the answers to these types of questions allows

you to optimize and scale your ad creatives, targeting and placements to reach the right consumers,

with the right messages at the right times.

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AUDIENCE SEGMENT EXAMPLESHere are two examples of inquiries you might make to help identify and reach two key consumer segments:

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Bargain Hunters Multi-channel Consumers

!Number of brands liked/followed across social networks

Number of mobile check-ins

!Shopping cart abandonment rate

!Volume of event-based shares via mobile apps

!Offers claimed and redeemed on Facebook

!Social login network preferences

!Percentage of checkouts with coupons/discount codes used

Mixture of mobile vs. desktop activity for email opens, ad clicks, shares, checkout and more

A successful brand would separate these segments into two different campaigns, targeting “Bargain

Hunters” with offers for free or discounted merchandise, and “Multi-channel Consumers” with a higher

percentage of mobile vs. desktop ads.

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SURPRISE - MEET YOUR NEW AUDIENCE!

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With this granularity of insight into the types of consumers driving

value for your business, expect a few surprises. Didn’t know that

your best customers are avid Star Wars fans? Or that content

featuring photos of lizards garners twice as much engagement

from male users over 25? Well, now you know!

Using first-party data to uncover unintuitive yet valuable audience

segments is a huge opportunity to expand your customer base

and increase conversion rates. You might even discover that the

consumers clicking on your ads are totally different from those

actually driving revenue for your business.

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LOOK-ALIKE MODELS

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By understanding the

characteristics of your best

customers - whether they be Star

Wars-loving 25-30 year old males

or women 18-25 who can’t get

enough of Justin Timberlake - your

business can create the segment

to end all segments: look-alikes.

A 20/20 view of the types of

customers driving the most value

for your business gives you the

power to target and reach

consumers who have similar

profiles and, in turn, are most

likely to convert.

LOOK-ALIKE SUCCESS STORY

By prompting fans to login socially to its website,

a major sports and athletics organization was

able to collect rich, permission-based data around

these users’ interests and on-site behaviors. It

soon discovered a correlation between its most

engaged customers and those within a particular

demographic profile who shared interest in a

certain TV show, sports team and mobile app.

The brand then used this information to build a

look-alike target segment and reach users with

similar profiles via Facebook promotions. This

look-alike strategy resulted in twice the

conversion rate at half the price!

OPTIMIZE KEYWORDS & CREATIVES WITH UGC

Strategy #5

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USER-GENERATED CONTENT

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“User-generated content” (UGC) refers to

text and images that are created, uploaded

or syndicated by your customers. Leaving

comments, writing reviews, rating products

and sharing items across social networks

are all forms of user-generated content.

Not only does user-generated content

create free word-of-mouth advertising for

your brand, but it also gives you first-party

insight into the content and creatives that

generate interest and engagement among

your target audience.

PSSST...HERE’S A TIP:

To ensure that your site’s UGC is valuable

and high-quality, prompt users to

authenticate their identities before

posting or syndicating. This also enables

your brand to tie content creation

directly to revenue and other KPIs via

consumer identity.

Word-of-mouth generates 2X the sales

of paid advertising (Branderati).

!

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CREATIVE GUIDANCE

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In the days of Don Draper, advertisers would lock themselves in rooms for days struggling to create ad

copy and imagery that would spark an audience reaction. Of course, this strategy still exists today, but

with Facebook users alone sharing over 684k pieces of content every minute (Domo), today’s connected

consumers have made it infinitely easier to optimize your creative strategy.

Did a particular tweet get hundreds of retweets? Sponsor it. Are readers commenting like crazy on a

certain blog post? Turn the title into ad copy. Notice a new Instagram photo trending among your fan

base? There’s the visual for your next print campaign.

FOR EXAMPLE…

Remember the major sports and athletics organization that used look-alike targeting to

improve their CTR and CPC? This same organization turned to UGC to inform their ad

creatives by using the top socially shared images on their site as the main visuals in their

Facebook promotions!

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KEYWORD DISCOVERY

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By putting your brand and offerings into terms consumers are actually using, UGC also helps

advertisers reach desired audiences with a much more tactical and behind-the-scenes strategy: search

discovery.

Websites that feature ratings and reviews typically experience a 10-20% increase in CTR on

search engine results pages (Inchoo).

Not only do customer comments and reviews help improve

searchability and organic ranking, but they also uncover new

keywords. These keywords can be bought and targeted

across channels to expand reach and boost discovery. Since

these keywords are often less intuitive, this UGC strategy

can also help lower the cost of paid search.

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FROM MAD MEN TO MAD SCIENTISTS

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We’ve covered how 1st party audience data can help your business increase ad revenue - now here’s a

definitive checklist to help you make the leap from “mad men” to “mad scientists:”

Implement Social Login to identify consumers at point of site entry

Aggregate all cross-channel consumer data into a single user database

Integrate this database with other 3rd-party marketing platforms

Tie all social profile and behavioral data to direct revenue and KPIs

Leverage user-generated content like comments, reviews and sharing

The days of Don Draper and his “ad men” are far behind us - but modern

marketers are still struggling to implement the technology and strategies needed

to reach consumers with relevance across placements.

ABOUT GIGYA

Gigya's Customer Identity Management Platform helps companies build better customer relationships by turning unknown visitors into known, loyal and engaged customers. With Gigya’s technology, businesses increase registrations and identify customers across devices, consolidate data into rich customer profiles, and provide better service, products and experiences by integrating data into marketing and service applications. Gigya's platform was designed from the ground up for social identities, mobile devices, consumer privacy and modern marketing. Gigya provides developers with the APIs they need to easily build and maintain secure and scalable registration, authentication, profile management, data analytics and third-party integrations. More than 700 of the world’s leading businesses such as Fox, Forbes, and Verizon rely on Gigya to build identity-driven relationships and to provide scalable, secure Customer Identity Management. !To learn more about how Gigya can help your business increase ad revenue, visit gigya.com, or call us at 888.660.1469.

Gigya, the Gigya logo, and Customer Identity Management Platform are either registered trademarks or trademarks of Gigya Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners.

© 2014 Gigya Incorporated. All rights reserved.

Gigya does not own any end user data or maintain any other rights to this data, other than utilizing it to make Gigya's services available to our clients and their end users. Gigya acts as an agent or back-end vendor of its client's website or mobile application, to which the end user of our client granted permissions (if applicable). Gigya facilitates the collection, transfer and storage of end user data solely on behalf of its clients and at its clients' direction. For more information, please see Gigya's Privacy Policy, available at http://www.gigya.com/privacy-policy/.