Forrester Research’s Interactive Marketing Analyst, Michael Greene illustrates what measures and steps a digital media company should take to protect their most valuable asset – their audience – and win the interactive marketing race.

1. Client logo goes here
Michael Greene, Analyst
Building a Proprietary Audience –
Win the Interactive Marketing Game
Presenters:
Manu Warikoo, VP of Product & Solutions
September 13, 2011

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Building a proprietary audience business
Michael Greene, Analyst
September 13, 2011

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Key questions for today
 Why do digital publishers need to consider building a proprietary audience
business?
 How should publishers approach this new market opportunity?

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No matter the medium,
publishers have always been in
the business of selling
audience
.

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What do we mean by audience targeting today?
Targeting based on user attributes such as
surfing or search behavior, demographic
characteristics, or mindset that does not
rely solely on specific site or content
adjacency.

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But digital technology has altered the ways buyers
and sellers think about reaching the right audience

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Two critical factors create an audience imperative for
digital publishers
Evolving
buyer
behavior
A new
competitive
landscape

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Last year, marketers told us that buying audience
was major spending driver
58%
39%
31%
48%

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Agency buyers are taking note, putting a priority on
audience targeting

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Direct buys are still the norm, but programmatic
buying is rapidly rising in prominence

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Agency buyers are turning to a diverse mix of media
partners

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Digital publishers are also facing a new
breed of competition.

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Advertisers have nearly unlimited options for how
they can spend their money on audience

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What does this all mean?
 Advertisers and their agencies are embracing audience targeting
opportunities through both traditional and programmatic buying methods
 A diverse competitive set means digital publishers can’t afford to sit still.
They must evaluate audience-related opportunities to capture new
budgets and take share of existing spend
 Successful publishers will command a premium through both differentiated
media and differentiated audience data

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Publishers of all kinds are stepping up to meet
evolving buyer demands
 Large publishers like NBC-Universal are building audience targeted ad
products to sell across both direct and indirect sales channels
 Niche publishers like Forbes are leveraging audience data to provide
extended reach and new insights to advertisers

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Building a proprietary audience business: A three
step approach
Evaluate and
control your
data assets
Assess your
market
opportunities
Execute a go
to market
strategy

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Step 1: Evaluate and control your data assets
 Start with a data audit. Look at multiple sources of data that could
potentially come together – site-side audience behavior, CRM data, offline
data, etc…
 Examine current sales channels. Many publishers are already selling
audience today, often through third-party sales channels. Identify these
relationships and how they are packaging your media and data.
 Identify unauthorized data use (i.e. data leakage). It’s tough to build an
audience business if third-parties are selling your audience without your
consent. Use a data protection tool to identify any cases of unauthorized
data use.

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Step 2: Asses your market opportunities
Third-party data
targeting
•Apply third-
party data to
inventory
First-party data
targeting
•Package
together
proprietary data
and media for
direct sales
Publisher trading
desk
•Publisher
conducts
audience
extension
campaigns on
behalf of
advertiser
First-party data
sales
•Sell proprietary
data through
open data
exchanges
RTB-enabled
data cooperation
•Similar to first-
party data
targeting, but
with execution
through
programmatic
channels
Media-focused monetization Data-focused monetization
Which suits your data assets and advertiser opportunities?

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Step 3: Execute
 Build the right products. Publishers will have to decide whether they
build custom for advertisers, build a steady suite of audience products, or
a some of both.
 Invest in the right technology infrastructure. From building audience
segments to forecasting inventory availability, publishers will need a more
extensive toolset to manage a more complex business.
 Invest in the right personnel. Building a proprietary audience business
will require new skill sets across sales and ops teams. Look for individuals
with strong analytical skills and an understanding of the language of
audience data.

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Summing it up: identify your audience opportunities
now
 Audience buying doesn’t replace content adjacency. Buyers tell us
that content and audience need to work together. Find ways to deliver
both to media buyers through bundled products and a wider array of ad
products.
 Create the right sales incentives. Selling audience is a new skill set for
most sales organizations. There is no one-size fits all organizational
model, but proper incentives are critical.
 Know your limitations. Publishers with limited scale or less valuable
audience data will have different , less profitable opportunities than larger
or data rich publishers. Evaluate your priorities accordingly.

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Publishers must prepare for greater
product complexity across marketing,
sales and operations. Publishers will
need to embrace structures to help
manage this complexity.
.
What it means:

22. Client logo goes here
Operative
Advertising
Business
Management
1/29/2015
Proprietary and Confidential.
Manu Warikoo, VP Product & Solutions
September 13, 2011

23. Client logo goes here
23
11 years of deep domain expertise in digital advertising media
An estimated $6B in global ad revenue runs through our
Advertising Business Management solutions
Work with more than 200 leading media companies,
networks, and agencies, including MSN, NBC, Pandora,
Dow Jones, OMD
More than 300 employees in New York, London, São Paulo,
Melbourne, and Bangalore
1/29/2015
Proprietary and Confidential.
About Operative

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1/29/2015
Proprietary and Confidential.
Product Packaging
(Audience)
Key Requirements:
① Ability to sell bundled products
② Rate card management tools
③ Discipline around Sales
The Solution: Advertising Business Management
Adopting a Productization Strategy:
① Helps capture maximum revenue
② Enables operational efficiency
③ Allows you to measure product
performance

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1/29/2015
Proprietary and Confidential.
Questions?

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Manu Warikoo | mwarikoo@operative.com
www.operative.com
Michael Greene | mgreene@forrester.com
www.forrester.com
1/29/2015
Proprietary and Confidential.
Thank You