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© 2016 eMarketer Inc.
Made possible by
Cross-Device Targeting:
What to Watch for in 2017
Lauren T. Fisher
Senior Analyst
January 12, 2017
© 2016 eMarketer Inc.
Agenda
 The evolving nature of cross-device targeting
 Five things to watch for in 2017
 Two things you won’t see in 2017
#eMwebinar
© 2016 eMarketer Inc.
The Evolving Nature of
Cross-Device Targeting
© 2016 eMarketer Inc.
Cross-device targeting is a top priority
69%
cross-device audience recognition
52%
advanced analytics and modeling to target audiences
Source: Interactive Advertising Bureau (IAB) Data Center of Excellence and Winterberry Group, January 2016
Topics or Developments that Will Command Most of Their Attention in
2016, According to US Digital Marketing and Media Practitioners
#eMwebinar
© 2016 eMarketer Inc.
Even today, the phrase ‘cross-device targeting’
still means different things to different folks
“There are probably more companies
that are targeting media across
devices than there are companies
that actually understand the
cross-device behavior of their
customer base.”
—Brandon Wishnow, EVP, Measurement and
Activation, Ovative/group
#eMwebinar
© 2016 eMarketer Inc.
Marketers’
adoption of
the necessary
capabilities
for true
cross-device
targeting is
still a work in
progress
#eMwebinar
© 2016 eMarketer Inc.
Knowledge and use of the two main device
identification methodologies has grown
Deterministic Probabilistic
#eMwebinar
© 2016 eMarketer Inc.
Perhaps due to growing sophistication, focus on
the ‘device’ piece of cross-device is shifting
“Things are moving away from being
just about cross-device
identity and more toward identity
itself, which is who is this user, what
are their interests, and what are they
likely to purchase.”
—Rahul Bafna, VP, Product Management and
Partnerships, Drawbridge
#eMwebinar
© 2016 eMarketer Inc.
Fleshing out
the identity
graph is the
ultimate goal,
but most are
just beginning
this process
#eMwebinar
© 2016 eMarketer Inc.
Question:
How confident are you in your
cross-device targeting
capabilities?
© 2016 eMarketer Inc.
Five Things to Watch for in
2017
© 2016 eMarketer Inc.
Brands will get on board with O2O data
onboarding
1
© 2016 eMarketer Inc.
Focus will be
placed on bridging
online-to-offline
(O2O) data
sets to
enhance the
purchase journey
#eMwebinar
© 2016 eMarketer Inc.
This mirrors
consumer
expectations
for what a
holistic
messaging
strategy
should look like
#eMwebinar
© 2016 eMarketer Inc.
Loyalty card data,
shopper data,
CRM data and
location data will
be just some of
the many sources
of offline
purchase info
#eMwebinar
© 2016 eMarketer Inc.
TV will become a core component of
the cross-device equation
2
© 2016 eMarketer Inc.
Buyers want
more cohesion
between TV and
digital ad
targeting
efforts; a good
portion are
already buying
this way
#eMwebinar
© 2016 eMarketer Inc.
Greater
momentum
around TV ad
targeting is one
driver of growth
#eMwebinar
© 2016 eMarketer Inc.
Interest in TV ad targeting is high, but true
cross-device integration is only just surfacing
“We’re seeing an increase in requests from
clients to go ahead and apply the
same kind of targeting practices and
audience-defining capabilities to
TV that we are seeing in digital. But
from a cross-device or cross-channel lens,
we’re not seeing this yet as a ubiquitous
request. … It’s more exploratory.”
—Denise Colella, SVP, Advanced Advertising Products
and Strategy, NBCUniversal
#eMwebinar
© 2016 eMarketer Inc.
ConnectedTV
Addressable
Linear
Connected and
addressable TV
offer the most
precision with
audience
matching, but
audience
matching with
linear TV is the
ultimate goal
#eMwebinar
© 2016 eMarketer Inc.
Creative capabilities will advance
3
© 2016 eMarketer Inc.
Getting a handle on sequencing and frequency
will be a top priority
“What advertisers want when they go to cross-device is
not just to deliver ads on a smartphone or a tablet or a
desktop, they want to know who is behind those
devices, and they only want to message that person a
certain number of times a day. They want to manage
frequency, and in some cases they want to create a
narrative. And if they can’t connect the message they
gave you on your smartphone with the message on the
laptop, they’re constantly starting over.”
—Jon Schulz, CMO, Viant
#eMwebinar
© 2016 eMarketer Inc.
Many, though not all, inhibitors will subside
Select Personalization Challenges According to Senior-Level Marketers in North America
 29% - Lack of technology to execute personalization
 33% - Not having enough data
 30% - Inaccurate data
 31% - Linking data for a single customer view
Source: Experian Marketing Services, April 2016
#eMwebinar
© 2016 eMarketer Inc.
A rethinking of how brands and creative
agencies work together will help drive advances
#eMwebinar
© 2016 eMarketer Inc.
Attribution will see greater
cross-device capabilities
4
© 2016 eMarketer Inc.
Measurement is
absolutely vital
for a number of
activities
related to
cross-screen
advertising
#eMwebinar
© 2016 eMarketer Inc.
But here, the imperative for accuracy is much,
much higher
“The challenge with measurement is you need to have a
much higher accuracy bar. If you get a false
positive in targeting, it’s wastage or money out the
door. But if you get a false positive in measurement,
you’re actually attributing a conversion to the wrong
impression, and so you get a misleading
understanding of what exactly is happening. ”
—Jonathan Lewis, Manager, Measurement and Identity Products,
Facebook
#eMwebinar
© 2016 eMarketer Inc.
Expect to see cross-device attribution
capabilities improve in the following ways:
 Greater incorporation of identity graphs into existing
measurement providers
 Greater movement away from solely cookie-based
solutions
 Greater adoption of cross-platform attribution services,
thanks to mobile and O2O demands
 Greater convergence of traditional and digital attribution
models
#eMwebinar
© 2016 eMarketer Inc.
Data quality will become
a bigger priority
5
© 2016 eMarketer Inc.
There are multiple levels on which data quality
can be assessed
#eMwebinar
© 2016 eMarketer Inc.
It’s not just a transparency issue; it’s a
terminology issue
“Data standardization is a
major pain point for buyers of
[cross-device] solutions. There is very
little standardization within the
industry for different terminologies
such as ‘accuracy’ or ‘match rate’ or
‘active cookies.’”
—Ajit Thupil, Director, ID Graph, Oracle
#eMwebinar
© 2016 eMarketer Inc.
Four things marketers will consider when
assessing issues of quality:
1. How segments are created
2. Ability to use one’s first-party data
3. Onboarding match rates and methodologies
4. Quantity of data vs. quality of data
#eMwebinar
© 2016 eMarketer Inc.
The inevitable—and growing—number of holes in
the identity graph will also pose challenges
32.0%
US internet users employing
an ad blocker this year
20.5%
Share of iOS mobile devices
in US with “Limit Ad
Tracking” feature enabled
Source: eMarketer, June 2016; adjust as cited in company blog, Oct 12, 2016
#eMwebinar
© 2016 eMarketer Inc.
Two Things You Won’t See
in 2017
© 2016 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
What is needed to fuel cross-device targeting?
A single view of the customer
across devices
A single view of the customer
across channels
© 2016 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Solving the Identity Challenge with Adobe Audience Manager
1. Data In 2. Logic, Organization, Segmentation 3. Data Out
POS
CRM
WEB DATA
SHOPPING
CART
Data Aggregation
Sourced from devices and
channels, foundational
Audience Creation
Unify data to profiles,
modeling, audience creation
Audience Syndication
Push segments to marketing
channels for
reach/personalization
DEVICE DATA
© 2016 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Getting to a Single View of the Customer with the Adobe Device Co-Op
OTHERSITE.COM
Login No Login
YOURSITE.COM
No Login Login No LoginLogin Login No LoginLogin
VIEW WITH
THE DEVICE
CO-OP
© 2016 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Impact of Getting Identity Right
Reported by 1/3 of
customers
Site Conversion Rate
+26%
Better Conversion
Among most customers
Cost Per Order
-20%
Improved Efficiency
Among 1/3 of customers
Average Order Value
+50%
Increased Order Size
By focusing on a single
view of the customer
+3x
Additional Reach
Source: Adobe Audience Manager Customer Check-In Survey, fielded October-November 2016
Identifiable Audience
© 2016 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
More Information
 Adobe Audience Manager Website
http://www.adobe.com/marketing-cloud/data-management-platform.html
 Adobe Device Co-Op Webinar - Jan 18th, 1pm PST
 https://my.adobeconnect.com/DeviceCo-Op
 Email Molly Felz: felz@adobe.com
 Adobe Digital Marketing Blog
https://blogs.adobe.com/digitalmarketing
 Email Me: mskinner@adobe.com
© 2016 eMarketer Inc.
Two Things You Won’t See
in 2017
© 2016 eMarketer Inc.
You won’t see the emergence of a
universal identifier
1
© 2016 eMarketer Inc.
Without a
universal
identifier,
marketers face
significant
challenges in
obtaining a
single customer
view
#eMwebinar
© 2016 eMarketer Inc.
Walled gardens and consumer privacy concerns
are two significant holdups
#eMwebinar
© 2016 eMarketer Inc.
You won’t see marketers turning a blind
eye to consumer privacy concerns
2
© 2016 eMarketer Inc.
Brands will not want to work with companies
that do not uphold consumer privacy standards
“Marketers aren’t running fast and
loose with trying to reach users
across devices; I think they are
quite concerned.”
—Dan Taylor, Managing Director, Global Display,
Google
#eMwebinar
© 2016 eMarketer Inc.
Potential legal ramifications are also cause for
concern
#eMwebinar
© 2016 eMarketer Inc.
Key Takeaways
 Cross-device is no longer a conversation of device
identification but of audience identification
 Cross-device targeting isn’t just about digital; it’s also
about television and offline, in-store interactions
 As targeting capabilities strengthen, improvements to
ad creative—particularly the ability to sequence and
frequency cap—are top of mind
 Focus on data quality and the validity of data used to
inform identity graphs will also strengthen in 2017
#eMwebinar
© 2016 eMarketer Inc.
Poll Results:
How confident are you in your
cross-device targeting
capabilities?
© 2016 eMarketer Inc.
Learn more about digital marketing with an
eMarketer corporate subscription
Around 200 eMarketer reports are published
each year. Here are some recent reports you
may be interested in:
Q&A Session
Made possible by:
You will receive an email
tomorrow with a link to view
the deck and webinar
recording.
To learn more: www.emarketer.com/products
800-405-0844 or webinars@emarketer.com
Lauren T. Fisher
Cross-Device Targeting:
What to Watch for in 2017
 Cross-Device Targeting: A More Holistic Audience View and a
More Compelling Customer Experience
 Television Update Winter 2016-2017: The Shift in Ad Currency
 Cross-Platform Video Ad Buying: Gaining Ground, but Fraught
With Hurdles
 Cracking Cross-Device Attribution in 2016: Data Quality,
Blended Models and Merging Online-Offline Data
 Television Update Fall 2016: Is the Surge in TV Ad Spending a
Normal Shift or a Trend?

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Cross-Device Targeting Advances in 2017

  • 1. © 2016 eMarketer Inc. Made possible by Cross-Device Targeting: What to Watch for in 2017 Lauren T. Fisher Senior Analyst January 12, 2017
  • 2. © 2016 eMarketer Inc. Agenda  The evolving nature of cross-device targeting  Five things to watch for in 2017  Two things you won’t see in 2017 #eMwebinar
  • 3. © 2016 eMarketer Inc. The Evolving Nature of Cross-Device Targeting
  • 4. © 2016 eMarketer Inc. Cross-device targeting is a top priority 69% cross-device audience recognition 52% advanced analytics and modeling to target audiences Source: Interactive Advertising Bureau (IAB) Data Center of Excellence and Winterberry Group, January 2016 Topics or Developments that Will Command Most of Their Attention in 2016, According to US Digital Marketing and Media Practitioners #eMwebinar
  • 5. © 2016 eMarketer Inc. Even today, the phrase ‘cross-device targeting’ still means different things to different folks “There are probably more companies that are targeting media across devices than there are companies that actually understand the cross-device behavior of their customer base.” —Brandon Wishnow, EVP, Measurement and Activation, Ovative/group #eMwebinar
  • 6. © 2016 eMarketer Inc. Marketers’ adoption of the necessary capabilities for true cross-device targeting is still a work in progress #eMwebinar
  • 7. © 2016 eMarketer Inc. Knowledge and use of the two main device identification methodologies has grown Deterministic Probabilistic #eMwebinar
  • 8. © 2016 eMarketer Inc. Perhaps due to growing sophistication, focus on the ‘device’ piece of cross-device is shifting “Things are moving away from being just about cross-device identity and more toward identity itself, which is who is this user, what are their interests, and what are they likely to purchase.” —Rahul Bafna, VP, Product Management and Partnerships, Drawbridge #eMwebinar
  • 9. © 2016 eMarketer Inc. Fleshing out the identity graph is the ultimate goal, but most are just beginning this process #eMwebinar
  • 10. © 2016 eMarketer Inc. Question: How confident are you in your cross-device targeting capabilities?
  • 11. © 2016 eMarketer Inc. Five Things to Watch for in 2017
  • 12. © 2016 eMarketer Inc. Brands will get on board with O2O data onboarding 1
  • 13. © 2016 eMarketer Inc. Focus will be placed on bridging online-to-offline (O2O) data sets to enhance the purchase journey #eMwebinar
  • 14. © 2016 eMarketer Inc. This mirrors consumer expectations for what a holistic messaging strategy should look like #eMwebinar
  • 15. © 2016 eMarketer Inc. Loyalty card data, shopper data, CRM data and location data will be just some of the many sources of offline purchase info #eMwebinar
  • 16. © 2016 eMarketer Inc. TV will become a core component of the cross-device equation 2
  • 17. © 2016 eMarketer Inc. Buyers want more cohesion between TV and digital ad targeting efforts; a good portion are already buying this way #eMwebinar
  • 18. © 2016 eMarketer Inc. Greater momentum around TV ad targeting is one driver of growth #eMwebinar
  • 19. © 2016 eMarketer Inc. Interest in TV ad targeting is high, but true cross-device integration is only just surfacing “We’re seeing an increase in requests from clients to go ahead and apply the same kind of targeting practices and audience-defining capabilities to TV that we are seeing in digital. But from a cross-device or cross-channel lens, we’re not seeing this yet as a ubiquitous request. … It’s more exploratory.” —Denise Colella, SVP, Advanced Advertising Products and Strategy, NBCUniversal #eMwebinar
  • 20. © 2016 eMarketer Inc. ConnectedTV Addressable Linear Connected and addressable TV offer the most precision with audience matching, but audience matching with linear TV is the ultimate goal #eMwebinar
  • 21. © 2016 eMarketer Inc. Creative capabilities will advance 3
  • 22. © 2016 eMarketer Inc. Getting a handle on sequencing and frequency will be a top priority “What advertisers want when they go to cross-device is not just to deliver ads on a smartphone or a tablet or a desktop, they want to know who is behind those devices, and they only want to message that person a certain number of times a day. They want to manage frequency, and in some cases they want to create a narrative. And if they can’t connect the message they gave you on your smartphone with the message on the laptop, they’re constantly starting over.” —Jon Schulz, CMO, Viant #eMwebinar
  • 23. © 2016 eMarketer Inc. Many, though not all, inhibitors will subside Select Personalization Challenges According to Senior-Level Marketers in North America  29% - Lack of technology to execute personalization  33% - Not having enough data  30% - Inaccurate data  31% - Linking data for a single customer view Source: Experian Marketing Services, April 2016 #eMwebinar
  • 24. © 2016 eMarketer Inc. A rethinking of how brands and creative agencies work together will help drive advances #eMwebinar
  • 25. © 2016 eMarketer Inc. Attribution will see greater cross-device capabilities 4
  • 26. © 2016 eMarketer Inc. Measurement is absolutely vital for a number of activities related to cross-screen advertising #eMwebinar
  • 27. © 2016 eMarketer Inc. But here, the imperative for accuracy is much, much higher “The challenge with measurement is you need to have a much higher accuracy bar. If you get a false positive in targeting, it’s wastage or money out the door. But if you get a false positive in measurement, you’re actually attributing a conversion to the wrong impression, and so you get a misleading understanding of what exactly is happening. ” —Jonathan Lewis, Manager, Measurement and Identity Products, Facebook #eMwebinar
  • 28. © 2016 eMarketer Inc. Expect to see cross-device attribution capabilities improve in the following ways:  Greater incorporation of identity graphs into existing measurement providers  Greater movement away from solely cookie-based solutions  Greater adoption of cross-platform attribution services, thanks to mobile and O2O demands  Greater convergence of traditional and digital attribution models #eMwebinar
  • 29. © 2016 eMarketer Inc. Data quality will become a bigger priority 5
  • 30. © 2016 eMarketer Inc. There are multiple levels on which data quality can be assessed #eMwebinar
  • 31. © 2016 eMarketer Inc. It’s not just a transparency issue; it’s a terminology issue “Data standardization is a major pain point for buyers of [cross-device] solutions. There is very little standardization within the industry for different terminologies such as ‘accuracy’ or ‘match rate’ or ‘active cookies.’” —Ajit Thupil, Director, ID Graph, Oracle #eMwebinar
  • 32. © 2016 eMarketer Inc. Four things marketers will consider when assessing issues of quality: 1. How segments are created 2. Ability to use one’s first-party data 3. Onboarding match rates and methodologies 4. Quantity of data vs. quality of data #eMwebinar
  • 33. © 2016 eMarketer Inc. The inevitable—and growing—number of holes in the identity graph will also pose challenges 32.0% US internet users employing an ad blocker this year 20.5% Share of iOS mobile devices in US with “Limit Ad Tracking” feature enabled Source: eMarketer, June 2016; adjust as cited in company blog, Oct 12, 2016 #eMwebinar
  • 34. © 2016 eMarketer Inc. Two Things You Won’t See in 2017
  • 35. © 2016 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. What is needed to fuel cross-device targeting? A single view of the customer across devices A single view of the customer across channels
  • 36. © 2016 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. Solving the Identity Challenge with Adobe Audience Manager 1. Data In 2. Logic, Organization, Segmentation 3. Data Out POS CRM WEB DATA SHOPPING CART Data Aggregation Sourced from devices and channels, foundational Audience Creation Unify data to profiles, modeling, audience creation Audience Syndication Push segments to marketing channels for reach/personalization DEVICE DATA
  • 37. © 2016 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. Getting to a Single View of the Customer with the Adobe Device Co-Op OTHERSITE.COM Login No Login YOURSITE.COM No Login Login No LoginLogin Login No LoginLogin VIEW WITH THE DEVICE CO-OP
  • 38. © 2016 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. Impact of Getting Identity Right Reported by 1/3 of customers Site Conversion Rate +26% Better Conversion Among most customers Cost Per Order -20% Improved Efficiency Among 1/3 of customers Average Order Value +50% Increased Order Size By focusing on a single view of the customer +3x Additional Reach Source: Adobe Audience Manager Customer Check-In Survey, fielded October-November 2016 Identifiable Audience
  • 39. © 2016 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. More Information  Adobe Audience Manager Website http://www.adobe.com/marketing-cloud/data-management-platform.html  Adobe Device Co-Op Webinar - Jan 18th, 1pm PST  https://my.adobeconnect.com/DeviceCo-Op  Email Molly Felz: felz@adobe.com  Adobe Digital Marketing Blog https://blogs.adobe.com/digitalmarketing  Email Me: mskinner@adobe.com
  • 40. © 2016 eMarketer Inc. Two Things You Won’t See in 2017
  • 41. © 2016 eMarketer Inc. You won’t see the emergence of a universal identifier 1
  • 42. © 2016 eMarketer Inc. Without a universal identifier, marketers face significant challenges in obtaining a single customer view #eMwebinar
  • 43. © 2016 eMarketer Inc. Walled gardens and consumer privacy concerns are two significant holdups #eMwebinar
  • 44. © 2016 eMarketer Inc. You won’t see marketers turning a blind eye to consumer privacy concerns 2
  • 45. © 2016 eMarketer Inc. Brands will not want to work with companies that do not uphold consumer privacy standards “Marketers aren’t running fast and loose with trying to reach users across devices; I think they are quite concerned.” —Dan Taylor, Managing Director, Global Display, Google #eMwebinar
  • 46. © 2016 eMarketer Inc. Potential legal ramifications are also cause for concern #eMwebinar
  • 47. © 2016 eMarketer Inc. Key Takeaways  Cross-device is no longer a conversation of device identification but of audience identification  Cross-device targeting isn’t just about digital; it’s also about television and offline, in-store interactions  As targeting capabilities strengthen, improvements to ad creative—particularly the ability to sequence and frequency cap—are top of mind  Focus on data quality and the validity of data used to inform identity graphs will also strengthen in 2017 #eMwebinar
  • 48. © 2016 eMarketer Inc. Poll Results: How confident are you in your cross-device targeting capabilities?
  • 49. © 2016 eMarketer Inc. Learn more about digital marketing with an eMarketer corporate subscription Around 200 eMarketer reports are published each year. Here are some recent reports you may be interested in: Q&A Session Made possible by: You will receive an email tomorrow with a link to view the deck and webinar recording. To learn more: www.emarketer.com/products 800-405-0844 or webinars@emarketer.com Lauren T. Fisher Cross-Device Targeting: What to Watch for in 2017  Cross-Device Targeting: A More Holistic Audience View and a More Compelling Customer Experience  Television Update Winter 2016-2017: The Shift in Ad Currency  Cross-Platform Video Ad Buying: Gaining Ground, but Fraught With Hurdles  Cracking Cross-Device Attribution in 2016: Data Quality, Blended Models and Merging Online-Offline Data  Television Update Fall 2016: Is the Surge in TV Ad Spending a Normal Shift or a Trend?