Title POV Murky Marketing Ecosystem 2

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Recognizing Audiences in the
Murky Marketing Ecosystem

How the integration of marketing channels enables consistent
consumer recognition for cross-channel advertising

MoneyAds™ Mentor Series

Acxiom Corporation | 601 E. Third, PO. Box 8190, Little Rock, AR 72203-8190 | www.acxiom.com

© 2015 Acxiom Corporation. All rights reserved.

IN

this, the second of our MoneyAds™ Mentor Series, we look at how modern
advertisers strive to create connected experiences for consumers and
foster trust, all in (near) real time. Recognition — recognizing consumers
across channels, offline or online — is the foundation for this, and it all begins with
connected data to drive connected experiences when and where your audience is
most receptive. While recognition may seem easy to achieve, the ability to do this
across channels, devices and media is highly complex. The good news is, with more
places to reach consumers, brands have the opportunity to drive expanded reach
and greater relevance with ad technology partners.

As consumers, we live multi-channel lives and often interact with our favorite brands through a myriad of
channels, and nowhere more so these days than on websites, on our mobile phones, or wherever we go
to watch TV or videos. Our shift in behavior has impacted marketing so much that when recently asked,
28 percent of marketing leaders said they plan to reallocate resources to prioritize an omni-channel
engagement strategy.1

How can advertisers begin to execute such a strategy? A brand’s journey must start with its own invaluable
customer data to recognize consumers consistently across channels, while respecting their need for
privacy and discretion. While this concept has been table stakes in the offline world, the digital world has
presented a slew of hurdles, such as rapidly evolving technology and platforms and the format of the data
itself. The challenge then lies in the consistent application of consumer data across channels.

After all, if recognition drives connected experiences, then
consumer data matching drives the connection of data.

Key takeaways:

1. A cross-channel view of the consumer is the foundation for true multi-channel advertising. After all,
you can’t target who you don’t recognize.

2. Carefully craft the mix of digital channels to create connected experiences for your intended audience.

3. Adopt recognition and matching best practices that deliver the highest degree of accuracy and reach.
Expertise in recognition across time and channels is essential.

4. Select an ad tech partner that is integrated with a large network of partners and publishers, especially
those most important to your brand, to allow you to effectively leverage your customer data and boost
your ability to reach consumers through their channel(s) of choice.

5. Recognition across channels does not mean annoying people across channels. Ensure you and your
ad tech partners always use data ethically to protect consumer privacy.

1

I'm supposed to work with who?

Study after study shows the value of multichannel marketing and how consumers who engage with
a brand through multiple channels spend much more than single-channel consumers, with some
estimating a 4X difference between the two groups,2 with others finding an average of $9 in
incremental sales for every $1 of online advertising.3

As enticing as that value proposition is, for marketers tasked with creating the connected experiences
needed to reap these benefits, they must make sense of an ecosystem that looks like this:

Where should they even start? And how many consumers can they identify with a high degree of
accuracy to deliver a relevant digital offer in an individual campaign? Marketers want to know how often
they will recognize a consumer across channels. And what is the best mix of channels to reach their
target audience and uncover new prospects?

2

The tremendous proliferation of channels and devices has occurred primarily in the digital realm. When
brands start drafting a digital advertising strategy, often they will need to use a mix of channels to
solve for accuracy, reach, scale and personalization. In this paper we will explore six key channels or
approaches, primarily digital, to consider:

1. Premium Publishers - These are websites with huge numbers of visitors who spend long periods of
time on the sites. Typically, these sites require registration, providing the publishers with volunteered
information about their visitors, which delivers a wealth of personally identifiable information (PII).
Examples include Facebook, Amazon, eBay, Yahoo and Twitter.

2. Programmatic Media - AdExchanger defines this as “the automation of media buying and selling
processes and decisions, enhanced through data,” and continues, “Once perceived simply as
the domain of low-quality inventory and belly fat busting ads, programmatic is becoming the new
normal for the largest brands in the world.”4 Some even estimate that by 2017, programmatic will
represent 87 percent of display advertising spend.5 Whereas with premium publishers brands are
usually targeting consumers, with programmatic advertisers are typically targeting audiences. Unlike
premium publishers, where targeting is often based on PII, programmatic is usually not attributable to
a given consumer.

3. Mobile Networks - Perhaps the most personal of channels, mobile has the opportunity to be king in
providing everything necessary for contextual marketing.

Studies show that "half of U.S. online adults own at least
three Internet-connected devices and go online from
them multiple times a day from multiple locations."6

For this reason, mobile has also become the linchpin for media consumption, offering consumers
the ability to read/watch/order/research any product or service — anytime, anywhere. It cannot be
ignored when crafting a multichannel marketing strategy.

4. Call Centers - One of the best avenues to enhance customer experience, call centers are still a
critical channel for marketers in several industries, such as high-end retail, insurance and financial
services. Because this is also one of the most expensive channels (the longer the phone call with
a customer, the lower the profitability), real-time data integration and recognition is paramount for
operators to solve someone’s problem on the first call.

5. Addressable Television/Video on Demand - These providers are usually subscription-based
digital entertainment services with set-top boxes that offer the ability to send a specific TV
commercial to a ZIP Code or household. Examples include: Cablevision, DirectTV, Dish Network,
Time Warner and Comcast.

6. Online Video - While this approach is akin to addressable TV in some cases, there are actually
several business models for online video providers, and the advertising opportunities vary accordingly.
Online video is quickly becoming the intersection of video/television and mobile, with consumers
choosing not only when to consume certain content but also on which device, which often is a
smartphone or tablet. Marketers need to consider their ability to deliver through this emerging channel.

In the spirit of connected experiences, and knowing that most brands will use a mix of channels in their
advertising, how can marketers effectively recognize consumers across channels and devices? What
are the best practices for recognizing a consumer and matching disparate data sets about them to
deliver the most relevant and meaningful offers to create connected experiences, build brand affinity
and earn customers for life?

3

On your mark, get set, go!

How do you pick the optimal mix of marketing channels? There are few hard and fast rules. The bottom
line is that you want to reach consumers where they are. Don’t know how to do that? You can learn
how, step by step, in the Comprehensive Guide to New Leads and Better Customers.

But let’s move beyond the who and address the how. Because you know your audience, you know how
to pick the right channel(s) for your campaigns. What are the best practices for recognizing consumers
across channels, matching disparate data sets into a single view to deliver timely, relevant messages
within those channels?

• Premium Publishers - For the highest level of accuracy, relevance and privacy, you want to match
visitor information in a neutral safe-haven sitting between your CRM data and the publisher’s data.
This requires a partnership on the front end between the publisher and your recognition partner so
they can utilize your partner’s safe haven and work together to safeguard consumer privacy.

• Programmatic - This often leverages cookie matching, ideally through a partner with the largest
cookie pool possible that can handle large volumes of information with streamlined data onboarding.
Solid integrations with DMPs and other execution tools will also improve your rates of success and
the timeliness of your offers.

• Mobile Networks - While marketers won’t argue the importance of mobile to cross-channel advertising,

in a recent study 42 percent cited the inability to accurately
target the same user across channels as a major challenge
when running cross-channel campaigns.7

Why does mobile present such difficulties for recognition? With cookies working in some online
browsers but not in apps, one of the most common tools used to identify consumers is hindered
in achieving real scale. However, it is possible to achieve optimized targeting by “going beyond
demographics to identify specific individuals based on their authenticated log-in, device identification, or
given PII, and then layering in their past behaviors, affinities, and relationship with your brand. Relying
on third-party or publisher data won’t suffice here, and it is imperative for marketers to now integrate
their own first-party and CRM data to target with this level of granularity and personalization.”8

• Call Centers - The key to recognition here is ensuring that phone numbers are included in each
customer record, whether from a brand’s own CRM data or appended from third-party data. This data
can be used in real-time not only for recognition but also to make all the data a company has about

a consumer available to a call center associate. For example, seeing order history or knowing if the
consumer has been having difficulties on the website, may be the key to resolving an issue quickly
and successfully.

• Addressable Television/Video on Demand - Addressable ads are currently available in nearly
50 million households, and the number is climbing. But, because the ads target a household, you
will pay a premium for this level of optimization. The more specific and affluent the target — for
example, households in a higher income bracket — the higher the cost. For that reason, you should
use a process similar to what you use for working with premium publishers but with a more surgical
attention to relevance.

Note, because of differences in technologies and data sets across addressable television providers,
be sure your recognition partner is equipped to integrate disparate technologies to market effectively
to your intended audience.

Online Video - Best practices for recognition here will depend on your platform of choice. For
marketers, devices that stream directly from the internet, like Roku or Apple TV, are similar to
set-top boxes that enable addressable TV. Others that are ad-supported, like Hulu, may be closer to
programmatic. And don’t forget the premium publishers that have acquired online video capabilities, like
AOL with Adap.tv or Google with YouTube. Beware a vendor that touts its ability to recognize consumers
across any online video platform; recognition here needs to be addressed on a case-by-case basis.

What was your name again?

It is safe to say that effective cross-channel marketing is a multi-step process requiring a high level
of expertise, computing horsepower, security, the right channel choices and a strong sensitivity to
consumers’ desire for privacy. But it’s worth the effort.

Regardless of the channel or channels you choose, there are some fundamentals to consider as you
build your recognition capabilities:

Start with good data - Using data to recognize consumers is a decades-old practice, but today’s
digital publisher environment comes with modern technology and privacy requirements. Many premium
publishers have established partnerships to allow brands to safely make the most of their own marketing
database’s intelligence, matching it to a publisher’s data within a safe haven, a privacy-compliant
environment behind a firewall that protects the information and privacy of those in the database.

acxi#m To learn more about the Acxiom Safe Haven,

visit www.acxiom.com/recognitionsafehaven
SAFE HAVEN for an informative video.

PREMIUM PUBLISHERS

Can’t do a direct, data-to-data match? Cookies can help! - Ideally, your recognition partner should
have a very large pool of cookies set through a myriad of publishers for the greatest scale and reach.
Keep in mind that a cookie pool is simply a collection of cookies, i.e. browser-based identifications that
indicate shopping preferences. While already valuable, there are ways to increase the overall relevance
of ads delivered based on these cookies by enhancing them with third-party data.

Tying it all together, e.g. measure your efforts - Disciplined measurement is one of the keys to
genuinely successful campaigns. Practice asking your recognition partner this:

What is my unduplicated consumer reach?

To improve each campaign, you need to ensure you are reporting the match rate by consumers
matched. And, when considering programmatic, count those who match your cookie pool and have one
or more publisher cookies associated with them.

5

Where to start?

If you are interested in adopting a more methodical approach to engaging consumers with truly relevant
and contextual offers and services, you need to push for broad-based recognition and matching based
on g°od data, historical knowledge, cookie pools and rigorous measurement. To put a program in place
that allows you to create a cross-channel view of consumers, keep these points in mind:

YOUR CHECKLIST FOR SUCCESS

□ Ensure your ad tech partners ethically us;e data to enssure

consumer privacy.

□ Consider which digital ad tech partners and ctonnels win
help you reach your intended audience, managing for
accuracy, reach and scale.

□ Ask ad tech partners to define theii" pr°cesses to rec°gnize
a consumer across time, devices and channels.

□ Identify partners that can help you apply a consistent
data strategy across all channe|s. Th»s should be the
basis of your targeting on the front end and measurement

on back end.

□ Adopt best recognition practices for each channeh

_ matching first-party and publisher or third-party data
when possible

- taking advantage of a significant cookie poo|

- leveraging device IDs or other authenticated data points

- working with someone with a network of publisher
partners with a host of delivery opttons toclutfing video

□ Report match rate by consumers matohed.

So h°w do modern, digital marketers achieve profit and relevance, mirror needs and desires, and foster
trust all in real time? Consistently recognizing consumers across time and channels is the answer.

A 360-degree view of the customer paves the way for truly effective cross-channel advertising.

6

CHEAT SHEET acxi$m

MARKETING CHANNEL WHAT IT IS HOW TO RECOGNIZE PEOPLE HERE

Premium Publishers

These are websites with huge numbers of
visitors who spend long periods of time on the
sites. Typically, these sites require registration,
providing the publishers with volunteered
information about their visitors, which delivers a
wealth of personally identifiable information (PII).
Examples include Facebook, Amazon, eBay,
Yahoo and Twitter.

For the highest level of accuracy, relevance and
privacy, you want to match visitor information in
a neutral safe-haven sitting between your CRM
data and the publisher’s data. This requires a
partnership on the front end between publisher
and your recognition partner so they can utilize
your partner’s safe haven and work together to
safeguard consumer privacy.

Programmatic Media

Automated media buying and selling, enhanced
with data, programmatic advertisers are
typically targeting audiences, whereas with
premium publishers brands are usually targeting
consumers. Unlike premium publishers, where
targeting is often based on PII, programmatic is
usually not attributable to a given consumer.

This often leverages cookie matching, ideally
through a partner with the largest cookie pool
possible that can handle large volumes of
information with streamlined data onboarding.
Solid integrations with DMPs and other execution
tools will also improve your rates of success and
the timeliness of your offers.

Mobile Networks

Call Centers

Addressable
Television/Video
on Demand

Perhaps the most personal of channels, mobile
has the opportunity to be king in providing
everything necessary for contextual marketing.
With half of U.S. online adults owning at least
three Internet-connected devices and going
online from them multiple times a day from
multiple locations, mobile has also become
the linchpin for media consumption, offering
consumers the ability to read/watch/order/
research any product or service — anytime,
anywhere. It cannot be ignored when crafting
a multichannel marketing strategy.

One of the best avenues to enhance customer
experience, call centers are still a critical channel
for marketers in several industries, such as
high-end retail, insurance, or financial services.
Because this is also one of the most expensive
channels (the longer the phone call with a
customer, the lower the profitability), real time
data integration and recognition is paramount
for operators to solve someone’s problem on
the first call.

These providers are usually subscription-based
digital entertainment services with set-top
boxes that offer the ability to send a specific
TV commercial to a ZIP Code or household.
Examples include: Cablevision, DirectTV, Dish
Network, Time Warner and Comcast.

With cookies working only in some online browsers
but not in apps, one of the most common tools used
to identify consumers is hindered in achieving real
scale. However, it is possible to achieve optimized
targeting by identifying specific individuals based
on their authenticated log-in, device identification,
or given PII. Marketers can then layer in past
behaviors, affinities, and the relationship with their
brand. It is imperative for marketers to now integrate
their own first-party and CRM data to target with this
level of granularity and personalization.

The key to recognition here is ensuring that
phone numbers are included in each customer
record, whether from a brand’s own CRM data, or
appended from third party data, or can be used in
real-time not only for recognition, but also to make
all the data a company has about a consumer
available to a call center associate. For example,
seeing order history or knowing if they’ve been
having difficulties on the website, may be the key
to resolving an issue quickly and successfully.

Addressable ads are currently available in nearly
50 million households, and the number is climbing.
But, because the ads target a household, you will
pay a premium for this level of optimization. For that
reason, you should use a process similar to what
you use for working with premium publishers with a
more surgical attention to relevance. And because
of differences in technologies and data sets across
providers, be sure your recognition partner is
equipped to integrate disparate technologies to
market effectively to your intended audience.

Online Video

While this approach is akin to addressable
TV in some cases, there are actually several
business models for online video providers, and
the advertising opportunities vary accordingly.
Online video is quickly becoming the intersection
of video/television and mobile, with consumers
choosing not only when to consume certain
content, but also on which device, which often
is a smartphone or tablet. Marketers need to
consider their ability to deliver through this
emerging channel.

Best practices for recognition here will depend on
your platform of choice. For marketers, devices
that stream directly from the internet, like Roku or
Apple TV, are similar to set-top boxes that enable
addressable TV. Others that are ad-supported, like
Hulu, may be closer to programmatic. And don’t
forget the premium publishers that have acquired
online video capabilities, like AOL with Adap.tv
or Google with YouTube. Beware a vendor who
touts its ability to recognize consumers across any
online video platform; recognition here needs to be
addressed on a case-by-case basis.

7

About Acxiom

Acxiom is an enterprise data, analytics and software as a service company that uniquely fuses
trust, experience and scale to fuel data-driven results. For more than 45 years, Acxiom has been
an innovator in harnessing the most important sources and uses of data to strengthen connections
between people, businesses and their partners. Utilizing a channel and media neutral approach, we
leverage cutting-edge, data-oriented products and services to maximize customer value. Every week,
Acxiom powers more than a trillion transactions that enable better living for people and better results
for our more than 7,000 global clients.

(1) eMarketer, Omnichannel Marketing Roundup, November 2014 (2) SAS, http://www.sas.com/en_us/insights/marketing/multichannel-marketing.
html (3) Acxiom, MoneyAds: Marketing Lessons from Changes in a 200 Year Old Sport, April 2014 (4) AdExchanger, “The 6-5-3 Framework:
How to Pick the Right Programmatic Media Management Model,” Q3 2014 (5) SpotXchange, “11 Questions Every Publisher Should Ask About
Programmatic Advertising,” 11/2014 (6) Forrester Research, “Create Marketing Your Customers Can Use,” April 14, 2014 (7) Forrester Consulting,
Master Mobile Measurement to Unleash True Cross-Channel Advertising, September 2014 (8) ibid

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©2014 Acxiom Corporation. All rights reserved. Acxiom is a registered trademark of Acxiom Corporation.

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