Demographic Targeting and Business Intelligence Jed Nahum Director of Product Management, Microsoft

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Demographic Targeting and Business
IntelligenceJed NahumDirector of Product
Management, Microsoft adCenter

• SES San Jose
• August 7, 2006

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Agenda

• How do we provide BI and demographic targeting?
• How accurate are the data?
• Do targeting and BI enable better returns?

Microsoft adCenter Background
Summer 05 Pilots in SG and FR October 18, 2005
US pilot 400 advertisers 25 traffic February N
YC SES 70 traffic May 4 adCenter US Launch Ea
rly August New release
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How Do We Provide BI and Targeting?
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Two Uses of Data for adCenter Marketers

• Business Intelligence
• Targeting Optimization

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How Accurate are the Data?

• Internal assessment of accuracy using two
  separate databases, one of which was the
  registration data for adCenter (CAPRi), the other
  being MSFT consumer marketing database (CIQ).
• Marketing database integrates data from existing
  subscription services, consumer packaged goods
  registrations, direct purchase transactions, key
  on-line events and external sources of data
  including demographics.
• Compared US data only
• Identify cases in which the consumers overlap
• Age 2.2MM consumers
• Gender 1.9MM consumers

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Gender
Age Statistics
80 of ages match in the two DBs
Younger consumers tend to have more consistent
ages in the two DBs Users who are in their 20s,
30s and 60s are slightly more likely to provide
age information in Passport than users who are in
their 40s and 50s
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Audience Intelligence Informs
Retail Industry Findings
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Audience Intelligence Informs
Entertainment Industry Findings
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Audience Intelligence Informs
Intelligence on Travel
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Audience Intelligence Informs
Intelligence on Automotive
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Why adCenterMeasurable Conversion Powerful
Audience Intelligence

• Compete Inc. ranks MSN first in conversion rates
  in Retail, Consumer Electronics and Travel
  categories

Conversion Rate
Audience Targeting
Notes Compete defines Conversion as a session
where the conversion funnel was completed
(purchasing retail item, purchasing travel) MSN
scored 3rd in Financial Services, the only other
category studied
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Why adCenterWhats Working for our Clients
The ROAS comparison for June for our biggest
client, expressed as revenue per ad dollar spent,
is 2.85 for AdWords, 5.53 for Yahoo, and 8.13
for Microsoft adCenter. Needless to say, were
going to increase our investment in Microsoft
adCenter right away. David Szetela , President
CEO, Clix Marketing, www.clixmarketing.com
The efficiency gained from Microsoft adCenter
allowed Move.com to be more aggressive with its
acquisition strategy, resulting in more
conversions across the entire campaign.
Frank Lee, VP, Account Management Partner
Relations, The Search Agency
The campaign has been an overwhelming success.
We have seen conversion rates up to two times as
high as other major search engines, including
Google, all at lower bid prices. At this point,
we want to spend as much money with Microsoft
adCenter as we can because it simply works as
well or better than anything else out there.
David Rodnitzky, Senior Director of Marketing
Adteractive
MSN achieved an excellent rate of return on the
amount we spent. Register.com looks forward to
growing our paid search campaign with MSN as the
engine expands. Craig Cooperman, Director,
Advertising Partner Marketing at Register.com.
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Success Story Home Décor Case Study
Campaign results on Microsoft adCenter earned
significant ROI, exceeding acquisition cost goals
and outperforming Yahoo! The addition of Micro
soft adCenter to the advertising mix, and its
ability to deliver strong ROI has contributed to
an increase in HDPI's overall search marketing
spend With Microsoft adCenter serving 100 of M
SN Search traffic, HDPI anticipates gaining even
more flexibility to reallocate its search budget
to better performing search engines
"Our goal is to maximize ROAS without
cannibalizing revenue growth. The acquisition
cost on Microsoft adCenter is so low that it
allows us to increase our maximum CPA goals on
other engines and still remain below our campaign
cost threshold.
- Christal Condon

Director, Online Marketing
"The net result is we are able to drive more
volume and convert more visitors at a reduced
cost. Microsoft adCenter has greatly enhanced our
ROI."
- Christal Condon

Director, Online Marketing
Source Market Forecast, Retail, 2005-2009,
JupiterResearch. 2005.
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Wrap Up

• Learn more
• Varnished advertising.msn.com/adcenter
• Unvarnished www.webmasterworld.com and
  forums.searchenginewatch.com
  
• adCenter blog blogs.msdn.com/adCenter
• Funky, cool stuff adlab.microsoft.com
• jed.nahum_at_microsoft.com