The Pioneer in Social Targeting. Marketing to Social Connections on the Web

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1 The Pioneer in Social Targeting Marketing to Social Connections on the Web

2 Powered by the explosion of social media on the web, Media6Degrees has pioneered a radical approach to ad targeting that moves beyond traditional demographics and psychographics. We call it Social Targeting. 2

3 A brief history of Social Media The 90s Social Networks & Blogs Begin to Bubble SixDegrees: first social network launches Blogger: one of the earliest dedicated blog publishing tool released The 00s Social Networks, Blogs, Video and Sharing Platforms Explode Friendster, MySpace then Facebook Micro-blogging platform Twitter Video YouTube Photo Sharing - Flickr Content Sharing Digg, Bit.ly Social Gaming Zynga Social Buying - Groupon 3

4 A brief history of Social Media There are over 200M blogs live today If Facebook were a country it would be the 3 rd largest in the world YouTube is the world s 2 nd largest search engine Simply stated - Social Media is NOT a fad! 4

5 Social Media advertising experiments Some big failures Chevy Apprentice campaign GM launched a contest to promote the Chevy Tahoe SUV Asked viewers to create their own digital commercial about the Tahoe at Chevyapprentice.com People used contest to circulate videos that accused GM of contributing to global warming and war and questioned the quality of Tahoe 5

6 Social Media advertising experiments Some big successes Old Spice Started with a Tweet: Today could be just like the other 364 days you log into twitter. Or maybe the Old Spice man shows up. Fans submitted questions on FB, Twitter and YouTube Users led to a YouTube page where the Old Spice Man answered their questions Sales increased 107% in a month and a 55% increase over three months High profile viral successes and failures. But nothing that can be relied upon to consistently deliver a marketers message and drive sales. 6

7 Developments for all the major advertising categories. Nothing has been a home run. Search - Google/MySpace search agreement worth $900 million in 2006 with Google to provide Search and Display Advertising on Myspace Video YouTube still trying to figure out how to deliver video while satisfying their marketing and consumer constituents. Display - Facebook Ads (promise but very poor performance) Ecommerce - Amazon store on Facebook (recently launched) Some developments with interesting potential. Nothing yet that addresses display advertising and reaching mass audiences at scale. 7

8 Marketers are making BIG changes Social Media budgets are growing faster than any other interactive category Spending is expected to increase to $3.1B by 2014, a 34% compound annual growth rate (CAGR) Advertisers are Committing Pepsi dropped TV advertising for the 2010 Super Bowl after 23 years. Instead, they invested in a $20 million social media campaign Best Buy has 2,500+ employees helping customers via their Twitter Twelpforce 99% of online retailers plan to have a Facebook Page by 2011 and 91% plan to have a Twitter page Results are Expected 72% of CMOs plan to attach revenue expectations to social media spending in 2010 Lots of experimentation and excitement to date. But CMOs are now expecting to see ROI on these efforts. 8

9 While Facebook is expected to surpass $1 billion in revenue in 2010 [online advertising] growth would be better if social media were a better place for paid media. [Social media sites] are growing advertising from a small base. Unless we find a different ad model, it isn t as monetizable [as other media] by any stretch. Geoff Ramsey, CEO of emarketer 9

10 Timing is everything. Audience buying becomes a reality. Traditional daisy chain was a nightmare and lead to really poor user experiences and tremendous inefficiency Right Media launches 1 st exchange in 2003 Doubleclick follows and Google buys Doubleclick Networks become exchanges (Adbrite) Publisher yield management platforms become exchanges (Admeld, Pubmatic, Rubicon Project) An entirely new lexicon has emerged RTB, DSP, Trading Desk, and others 10

11 Why is the exchange so important? Ad exchange technology platforms for buying and selling online ad impressions; enables advertisers and agencies to define and buy ad inventory based on unique targeting criteria across a combination of large and niche publishers RTB allows buyers to dynamically bid on impressions Cost Efficiency Yield Management Actionable Insights Retargeting Creative Optimization Performance Ad Exchanges and RTB have enabled a huge explosion in the market for data and have enabled huge improvements in targeting 11

12 That need for efficiency is one of the reasons that digital agencies are rapidly adopting audience-based, real-time buying via exchanges and trading desks another huge trend to watch for in Russ Sapienza, partner, PWC 12

13 The opportunity Traditional media budgets still shifting online and expected to continue to do so for the foreseeable future The huge growth in Social Media presents many new options Audience buying opens a new world of targeting No one has figured out how to use Social Media effectively and consistently for advertising purposes HUGE upside for anyone who can figure out how to make all this work 13

14 M6D founders looked to take advantage of this opportunity Founders started looking at interests on MySpace Then looked at friends But Realized: Poor data for segmentation at scale Too much noise more friends = less signal Data being posted is suspect Early experiments did not yield stellar results 14

15 The spark Researchers from a dozen prestigious institutions have published studies showing that people who have similar interests tend to cluster into groups with similar purchase patterns. 15

16 The concept If there is a place on the Internet that is visited by a very small number of people, chances are that the people visiting this place share something in common. 16

17 Performance The big idea Social Targeting Powered by a web-wide view of social media participation 17

18 We start by partnering with Social Media companies These Social Media companies allow us to build an anonymous database of consumer visitation to their properties. Joe likes to read blogs Joe also checks out friends photos on photo sharing sites And shares articles with his coworkers Meet Joe Many of the sites that Joe visits are part of our network of data partners.when Joe visits a site within our network we log that visit. 18

19 We start by partnering with Social Media companies At the time we collect this data we also make it anonymous to ensure user privacy. Site ID: ABCDEF Site ID: GHIJKL Site ID: MNOPQR Meet Browser Joe ID: We do this billions of times a month which allows us to have a very large graph of Browser ID and Site ID connections. All without having any PII or contextual segmentation. 19

20 How do we make this actionable for a Marketer and its Customers? These same customers also visit many social media sites. Browser Now meet ID Bob Or should I say Browser ID Browser ID and many others visit a marketer s website. BLUE Some of represents these customers social media visit the sites same that social are most media popular sites. with Pottery Barn s customers. We call this the marketer s Social Signature. 20

21 We then look for Browser IDs in our graph who have common Site ID visitation pattens a common Social Signature Remember Browser ID 12345? Customers Unique Content Consumption Pattern Users in our graph Browser ID has not visited Pottery Barn yet scores very high when comparing its Social Signature with people who visit Pottery Barn. 21

22 We ve empirically shown that these people are very likely to become future customers of the Marketer Prospects Social Signature Marketer s Site 22

23 + We identify a population of the Marketer s current customers. And, using billions of anonymous browser-url connections, we identify a population of people who are likely to have affinity for the Marketer. Together, these populations form a unique Social Graph built and optimized entirely for the Marketer. 23

24 This Approach Represents A Breakthrough in Privacy- Friendly Targeting Media6Degrees changes that as well. Marketers can now achieve unprecedented targeting precision while maintaining the utmost respect for consumer privacy. As with scale, historically, targeting and privacy were mutually exclusive. More of one meant less of the other. Privacy Targeting

25 Social Targeting Eliminates the Trade-Off Between Targeting and Scale Media6Degrees changes all that. Marketers can now achieve unprecedented targeting precision while reaching their audiences at scale. Historically, targeting and scale were mutually exclusive. More of one meant less of the other. Scale Targeting

26 Media6Degrees Social Targeting value proposition Delivering high-performing advertising at scale while protecting consumer privacy Performance On an ROI basis, Media6Degrees Social Targeting consistently outperforms our clients existing targeting solutions Scale With traditional targeting methods, scale decreases as precision increases Social Targeting is a scaling technology. The growth of social media participation increases the size and performance of the targeted audience Privacy Our methodology does not collect or use any personally identifiable information from our clients or partners Board member of Network Advertising Initiative (NAI); TRUSTe certified 26

27 Clients Love Social Targeting and Media6Degrees Major International Airline Most bookings and lowest ecpa Top performer National Restaurant Chain ecpa of $.27, 1/5 th of goal Top performer Major Credit Card Goal to find approved applicants Top performer Large ecommerce Site 81:1 ROI, 4X client s goal Considered top tier vendor by agency National Clothing Retailer 29:1 ROI, 4X client s goal Top performer Large Software Company Drove ecpa less than half of goal Top performer Major Media Company ecpa less than 1/3 rd of client s goal Feedback was to keep kicking butt! Major Cruise Line Awareness campaign By far the top performer 27

28 Our Loyal Clients Include

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