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Issue 1 - January 2015

Data Matters Eyeota’s 2015 in Review

The global leader in local audience data


Contents

What you can look forward to in this issue

03 Editor’s Note Message from our CEO, Kevin Tan

04 What’s New The latest updates at Eyeota

09 Events Calendar We were invited to participate or speak at several leading digital and ad tech events around the world

13 Eye on Eyeota Learn about Eyeotians across our offices in London, Berlin, Düsseldorf, Melbourne, Singapore, Sydney and Tokyo

12 Eyeota 123 3 In Numbers 1+2=3

01

456

23 Eyeota in Numbers Charting our growth and some interesting figures


Best of Our Press Compilation of our top articles published by the press this year.

05

Stats about data programmatic

15

Demonstrate the human side of your brand and

We round up some exciting stats and facts about programmatic and data from 2015.

The importance of the human element when using data to reach your target audience.

16

0.5 Petabytes of data with Eyeota

07

In data, never forget the human Reminder for marketers to keep their eye on the ultimate target: humans.

Eyeota has more than 1.5 billion unique data profiles in our Audience Data Marketplace - this is more than 0.5 petabytes of data that needs secure storage. What exactly does 0.5 petabytes of data look like?

11

Data focus should be on quality, not “First-Party” of “Third-Party” label Kevin Tan, CEO of Eyeota shares the questions brands need to ask their data providers.

15

Retargeting is not audience targeting Retargeting might be popular as a wide-funnel online marketing strategy to reach a large pool of audiences. However, it might not be the best way to effectively target and deliver personalized messages.

19

Cultural differences must considered in data collection

be

The importance of factoring cultural differences in the collection and analysis of audience data.

21

What makes data like donuts? The best donuts are those where every layer counts. Just like donuts, data is best used in layers.

02


Editor’s Note Welcome to the inaugural issue of Data Matters: Eye on 2015. 2015 has been a great year for Eyeota. With growing demand for high quality audience data worldwide, we have doubled the number of employees and opened new offices in Melbourne and Tokyo. This year, we continued to build great partnerships (page 4) to offer high quality audience data with scale and reach. We have partnered with Bombora, CACI, Experian, Ipsos and Semasio to bring their data sets online. Now media buyers will have more to choose from when it comes to selecting the best quality data for their ad campaigns. We have compiled the top articles I have written in our Best of Our Press section. I am excited to welcome 2016 and hope you enjoy reading this issue.

Yours Sincerely,

Kevin Tan, CEO.

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What’s New? Eyeota Index Launch Eyeota Index is the first report of its kind, utilizing the tremendous volume of transactional data we collect on a continual basis across the programmatic ecosystem. We have developed a proprietary Eyeota Index to identify advertising sectors that are leading the way in audience data usage and which segments are being used to target customers. The first Eyeota Index was launched in Q4 2014, and the report is released every quarter. Visit http://get.eyeota.com/download-index-q3-2015 to download a copy of the latest Eyeota Index.

Website relaunch Fresh, New Look! Our website was relaunched in August. Visit www.eyeota.com for our latest events and Insights page for our media hits.

Our New Partners We continue to build great partnerships to offer high quality audience data with scale and reach. Our partners include:

04


Stats About Data & Programmatic Programmatic is a big buzzword in the digital marketing landscape of 2015 and increasingly the only way to buy digital advertising. But for some marketers, programmatic remains a mystery.

Programmatic ad buying

typically refers to the use of software to purchase digital advertising, as opposed to the traditional process that involves RFPs, human negotiations and manual insertion orders. It involves using machines to buy ads. (Source: Digiday)

We round up some exciting stats and facts about programmatic and data from 2015.

$

2

1

Marketers are setting aside more budget for programmatic

70%

56.3%

of 1,000 senior marketers have transferred a proportion of their budget from TV to programmatic video in 2015

of close to 3,000 global marketers said they upped their annual data-driven marketing and advertising expenditures in 2015

(Source: Unruly)

(Source: GDMA, Winterberry Group and supported by MediaMath)

There is huge potential for programmatic Ad space bought via programmatic trading increased 76% year-on-year in April 2015. (Source: Adform)

The global programmatic market is projected to grow from US$14.2 billion in 2015 to US$36.8 billion in 2019. (Source: Magna Global) 05


3

Mobile & video ads are appealing

333% increase in spending for brand formats (rich media) for online ads by advertisers from April 2014 to April 2015

4

Many still do not know how programmatic works

44%

of the advertisers understand very little or nothing about how programmatic works

29%

of the digital ecosystem is using programmatic despite knowing very little about it

(Source: Adform) (Source: AppNexus)

65.5%

150ms

5

is the average time it takes from the start of real-time bidding to the time an ad is served when the page loads

of nearly 3,000 marketers worldwide said that third-party data licensing was not yet included among their data driven marketing efforts

(Source: The Economist)

(Source: MediaMath)

Who are the leaders in audience data?

$

Globally, the top three biggest spenders were Electronics & Computers, Finance and Automotive advertisers.

The most popular segment categories advertisers purchased for online ad targeting were Sociodemographic (49%) and B2B (22%)

(Source: Eyeota Index Q3 2015)

(Source: Eyeota Index Q3 2015)

Sources: • https://unruly.co/whitepaper/programmatic-video-pulse-2015/ • http://www.mediamath.com/resource/the-global-review-data-driven-marketing-and-advertising-2015/ • http://blog.adform.com/press-releases/brand-format-banners-transforming-programmatic-advertising-across-europe/ • http://www.mediapost.com/publications/article/259257/magna-global-programmatic-ad-spend-will-reach-37.html • http://blog.adform.com/press-releases/brand-format-banners-transforming-programmatic-advertising-across-europe/ • http://www.economist.com/news/special-report/21615872-rise-electronic-marketplace-online-ads-reshaping-media-business-buy • https://www.appnexus.com/en/company/whitepapers/q3-2015-global-trust-study-ebook • http://get.eyeota.com/download-index-q3-2015

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A In Data, Never Forget the Human What does a ‘like’ or retweet mean for your brand? Nothing much these days, it seems, as they come a dime a dozen. Instead, data has become increasingly important to enable advertisers to better engage their audience, but what remains the missing link? In this piece, Eyeota CEO, Kevin Tan issues a reminder for marketers to keep their eye on the ultimate target: humans.

dvancements in digital technologies have been far reaching, generating insights and results that just five years ago would have been unthinkable for marketers. Programmatic, in particular, has led marketers to rip up the rulebook–what used to take weeks of planning now happens in circa 200 milliseconds. While the scope of programmatic is impressive, what has captured marketer’s attention is its ability to put the individual at the epicentre of marketing activity. As technology has pervaded our everyday lives both inside and outside of the work place, marketing has had to grow up. Whereas 10 years ago it was all about grabbing attention, the move to a multi-screen, multi-device, multi-platform world in which consumers–not the advertisers–call the shots has forced a rethink around the value of attention.

With individuals increasingly time-poor, attention has become more fleeting and as a result less valuable to brands. Why? Because it takes no effort to ‘like’ an update or retweet a post. Such activities are not indicative of an engaged brand advocate. While initially it was great to see the number of ‘likes’ or retweets rise, it has become increasingly clear that such behaviour is a poor substitute for true engagement, specifically, the kind that helps advertisers carve out valuable and meaningful relationships with consumers that sustain an upwards sales trajectory. As such, there has been a notable shift towards humanizing marketing campaigns. Audience data has played a key role in enabling this dynamic. Whereas two years ago personalization was a feature, now it is an expectation. In return for the great swathes of data we entrust into the care of the online brands we interact and transact with, we demand an enhanced experience based on our likes and dislikes. 07


However, the demand to harness data in order to achieve the holy grail of marketing has led to one important aspect being overlooked–the human at the other end with whom we are trying to engage. While personalization is a huge step in the right direction, it should not come at the expense of interpersonal relationships on which human connections are based.

Data Powerhouse

D

ata has been the powerhouse behind this move and audience data, in particular, has proven to be vital in bringing both relevancy and context to advertiser communications as consumers move through the purchasing decision-making process. As such, there has been a notable shift towards humanizing marketing campaigns. Audience data has played a key role in enabling this dynamic. Whereas two years ago personalization was a feature, now it is an expectation. In return for the great swathes of data we entrust into the care of the online brands we interact and transact with, we demand an enhanced experience based on our likes and dislikes.

All too often, data is seen as analytical, cold, and robotic, but in actual fact it is none of those things. Used correctly, it equips brands with the ability to showcase the human side of their brand. Successful digital marketing models of the future will be those that are more in step with human nature. This means listening to how consumers react and engage with a brand. Underpinning this is the need to create, build, and maintain a level of trust. Trust is at the very heart of human relationships. The people we trust the most often represent the most valuable relationships in our lives. This is a truth that transcends our individual relationships with brands. And in many ways that is one of the key reasons why programmatic has experienced such impressive traction in a relatively short space of time. It is one of the few ad tech revolutions to put the individual at the center to allow for the natural ebb and flow of human conversation. Data informs advertisers how they can best engage with their audience and add real value to that person. Data is not cold, it is illuminating and most importantly, it is humanizing. This article was first published in ExchangeWire on 10 March 2015.

08


Calendar of Events We were invited to participate or speak at several leading digital and ad tech events around the world

February February

Trent Lloyd, Co-Founder of Eyeota and Jessie De Luca, Director of Activation, Insights and Analytics represented Eyeota at SXSW - an annual set of ďŹ lm, interactive media, and music festivals and conferences - in Texas, as Eyeota was selected by the Infocomm Development Authority of Singapore as a global ambassador for start-ups in Singapore.

Kristina Prokop, Co-Founder of Eyeota, was invited to be a panelist at d3Con, Germany’s largest event for display advertising, in Hamburg.

July MARCH Kevin hosted and introduced the Data Creativity Awards at the I-COM Global Summit, a global forum for marketing and data measurement, in San Sebastian, Spain. 09

Kristina was invited to speak on the panel at Women in Programmatic, and was also a panelist at ATS Singapore, part of the series of ATS ad tech conferences worldwide.


July

September

Eyeota participated in RISE in Hong Kong - a gathering of the world’s biggest companies and most exciting startups - as we were selected as one of the noteworthy start-ups for the exhibition.

Kevin was selected to present a case study in front of 200 people at dmexco, the leading international expo for digital business, in Cologne.

September Trent was a guest speaker at AIMIA’s Programmatic Media event in NSW, Australia in September.

October November Kevin was invited as a speaker and a panelist at ATS Tokyo.

Eyeota participated in Web Summit, a leading tech fest, in UK and Dublin, as we were selected as one of the noteworthy start-ups for the exhibition.

November Eyeota was selected to present an investor pitch at the NOAH Internet Conference in London.

10


Data Focus Should

be on

Quality, Not “First-Party” or “Third-Party”

1

st

3

rd PARTY DATA

PARTY DATA

This article was first published in ExchangeWire on 29 May 2015. Opinions in the industry may differ on whether first-party data is more reliable than third-party data. For Eyeota CEO, Kevin Tan, both offers its own value, and efforts should instead be channeled towards improving data quality and transparency. In this week’s byliner, he highlights the growing expenditure in audience data in Asia-Pacific and the questions brands need to ask their data providers.

Industry myth

First-party data is better than third-party data. People don’t realize that it is, ultimately, the same data. Instead, the focus should be on the quality and transparency of the data, not the party label. In fact, we’re seeing massive growth of third-party audience data across the region. The Eyeota Index reveals a 523% growth in audience data expenditure across Southeast Asia in Q4 2014. This is testament to the effectiveness of third-party data.

What is first-party & third party data? First-party data will only ever belong to the company that sourced it, the data itself remains exactly the same as it is passed from party to party. Third-party data is merely the term used for someone else’s first-party data. Similar to how a brand new car is worth the same between the factory and the dealership; the data itself does not change as it is passed from one party to another.

11


Brands might have their own first-party data, but not all advertisers are able to harness its full potential. This is simply because these datasets might not contain the same scale and depth as third-party data. First-party data only provides user information from a brand’s own website, and does not reveal much about their natural user behaviour beyond the scope of that website. Third-party data, on the other hand, provides scale and depth. Advertisers that choose to work with high-quality data providers can obtain third-party data that is timely and clear. Used together with first-party data, top quality third-party data enables brands to build a fuller picture of target audiences. It is beneficial for the whole industry to focus less on perpetuating the myth that one type of data is better than the other, and channel their efforts into collecting high-quality data. Both types of data need to work hand-in-hand, not as a standalone, to achieve maximum ROI. In a programmatic environment, it is all about targeting audiences. Thus, the more data you have, the better. However, the quality of data matters, too – not all data is created equal and while volume is important, so is quality.

Recognizing Asia-Pacific uniqueness The Asia-Pacific region is a unique one for brands, media buyers, and publishers to tackle. The variations in target audience profiles, cultures, and languages across the region can pose challenges for a brand trying to secure market share, or for any data provider trying to collect quality data at scale. Particularly within Southeast Asia, a lack of local audience data has impeded targeted campaign planning at scale; until now, it seems. Advertisers and media buyers are becoming savvy in utilizing audience data for accurate targeting. According to the Eyeota Index, which was released last week, Southeast Asia has become a region to watch. Currently in its early stages of growth, audience data expenditure grew by 523% in the fourth quarter, compared to the previous quarter. In addition, 93% of the region’s audience data spend came from Singapore. This is a trend likely to continue as brands embrace the benefits that audience data can bring to their digital advertising campaigns.

Grew by

523%

93% Q3

spend came from Singapore

Q4

12


We have a diverse team with 16 different nationalities.

01


Some days we come to work dressed as pirates or mummies. Our truly global team celebrates festive activities in different offices around the world, from Chinese New Year to Halloween.

14


Retargeting is Not

Audience Targeting

If you have ever visited a website, or clicked an online ad, only to have the same product follow you around for weeks, you will be well aware what retargeting is. According to eConsultancy, 30% of marketers worldwide prioritize targeting and personalization in their digital marketing strategies. Retargeting might be popular as a wide-funnel online marketing strategy to reach a large pool of audiences. However, it might not be the best way to effectively target and deliver personalized messages.

1

When Does Retargeting Become Potentially Annoying? Retargeting is not exactly audience targeting and it is easy to confuse the two. A user may have visited a website purely by :

Accident

Curiosity

Example: If a man clicked on a website that his wife sent him about an interesting product, it does not necessarily reect his intent to purchase.

Hey, take a look at this!

Baby Car Seat Baby Carlittle Seat Protect your precious passenger

Protect your precious little passenger

Baby

Car Seat

Mega Sale

This ad might then follow the user around on other websites. 15


2

Why is Retargeting Not Audience Targeting? Audience Targeting

Precise reach and personalized

Relevant ad to right user at the right time, in the right location

Personalized ads to consumer

3

Retargeting

VS

Broader reach & less personalized

Potentially irrelevant ad to the wrong user

Potential consumer backlash against ads

How Can You Target Audiences Effectively? Many marketers have their own ďŹ rst-party data. But they face challenges in harnessing the full potential of their ďŹ rst-party data. There is a common industry myth that one type of data is better than the other. Both types of data are essentially the same data.

t-Party Data Firs

ZERO POTENTIAL

FULL POTENTIAL

A combination of both ďŹ rst and third-party data actually empowers brands to understand their target audiences as human beings. The original version of this article appeared in 12Ahead on 6 October 2015.

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Demonstrate the

Human Side

of your Brand This article was first published in Digital Marketing Magazine on 13 February 2015. Digital marketing, powered by technologies that didn’t even exist as little as five years ago, is driving insight and results that would previously have been unthinkable. Whilst there has been a huge shift towards personalization, ticking this box doesn’t necessarily equate to a more meaningful relationship. Instead we are seeing an evolution towards interaction that is more in step with human nature. For example, just because you have data about a user, doesn’t mean you should bombard them with offers left right and Centre. Think about it like this: Imagine you are in the queue for lunch and someone, having caught a snippet of the conversation you are having with a colleague, tries repeatedly to join in. After your brief encounter, armed with your name, they start following you on Twitter, friending you on Facebook and sending you a LinkedIn request. It is, frankly, overkill. Data not only gives digital marketing the opportunity to be more targeted and relevant, but to also ape human nature. As humans we listen and observe; data is the means via which brands can do this and evolve their communication. It does this by providing a platform for understanding, trust and context. But most importantly by enabling brands to communicate in the most human of ways. Data is often seen as robotic, but this is far from the case. Data, if used correctly, should humanize a brand by enabling clever, well thought out and relevant interactions that are of value to the end consumer. Digital may well be the platform for today’s marketing, but in order to facilitate meaningful engagements that drive growth, don’t forget about the human at the other end. Just like Steve (above) in his pursuit of his true love has learnt this week, if you ditch the gimmicks and communicate authentically, in the long run your audiences will thank you for it.

17


0.5 Petabyte of Data with Eyeota

Eyeota is the global leader for local audience data. We has more than 1.5 billion unique proďŹ les in our Audience Data Marketplace - this is more than 0.5 petabyte of data that needs secure storage. What exactly does 0.5 petabyte of data look like?

SUSHI 0.5

VIDEO

PHOTO

A piece of sushi = Average of 457 grains of rice

Petabyte of data is equivalent to...

Million Sushi Pieces

SELFIES

HDR Auto

SLOW-MO

If 1 grain of rice = 1 bit of data

SQUARE

PANO

0.5

1 selfie = Average of 7kb 1 selfie = 1 Second

Petabyte of data is equivalent to... Taking selfies non-stop for:

IPHONE 0.5

2.3 years

16GB IPhone = 16GB

Petabyte of data is equivalent to...

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1

0

1 0 1

1

0

1

1

0

0

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1

1

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Cultural Differences Must be Considered in

0

Data Collection

1

0

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1

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0 0 1

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leave tips 0 for service staff in Japan. Insights into these cultural differences can go a long way in arming brands with the right knowledge to roll out effective marketing campaigns; which definitely should not include Chinese ads promoting clocks as housewarming gifts. 0

0 1

1

China

$

Don’t present a clock as a gift

Japan 1

0

0

0

1 1 This article was first published in ExchangeWire on 28 June 2015. 1 1 Never present a 0 clock as a gift to someone in China, and don’t

1 0

0

1 0

1

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1 0 1

1

0

0

1

1

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0

In a programmatic environment, the more data you have, the better. However, the quality of data matters, too. The role of the human is also important as programmatic buying is still driven by human reasoning; but not all data vendors are the same in terms of reach, scale, or depth.

0

0

One important element is the ability to consider culture in their data analytics. The world is made up of different individuals with varied backgrounds and cultures, adopting speech in a multitude of languages. Advertisers can only achieve maximum ROI (returns on investment) from their ad spend when they partner a data vendor with the expertise to factor in cultural and language differences across the data collection process. 19

0

0

importance of factoring cultural differences in the collection and analysis of audience data, 0 in diverse Asia. which can be especially challenging

1

1

1

1 0 In this week’s industry byliner, Eyeota CEO Kevin Tan returns with a post that discusses the

0

0

1 0 0 1 0 Culture of Respect 0 1

Don’t leave tips for service staff

1

1

0


0

0

1

0

0

1

0

The ‘hyperlocal’ approach Culture is significant to online marketing because it sets the stage for strategic targeted marketing. Consumer behaviour is typically similar for certain demographics, therefore, most ad spend in the US, for instance, is targeted at a specific demographic that speaks one or two languages. It is easier to build a system at that scale to address 350 million people and disseminate the same language using the same approach. Things shift dramatically when you start designing a system on a global level for seven billion people. This is when you need to consider the sheer scale of a global market – billions of people who speak hundreds of languages, thousands of different distribution systems, and millions of media channels and opportunities. The key to making sense of all this is to go hyperlocal. As a data supplier, Eyeota strives to collect and understand data on a local basis. In order to do so, we need to be sensitive to the local culture and understand consumer behaviour in a local context. By keeping our fingers on the pulse of cultural factors impacting each market, we aim to achieve diversity and adapt to the local environment, which I believe puts us in an interesting position as a third-party data supplier operating on a global level.

One Size Does Not Fit All

International brands need to adopt a hyperlocal approach when collecting data for each new market and understand the nuances of consumer buying habits. A one-size-fits-all approach does not work; particularly when you try to transplant a data collection strategy from the US to, say, Japan or China. The scenario of buying a car is very different for a consumer in the US, where cars are moderately priced, compared to Singapore, where one needs to factor in the Certificate of Entitlement (COE), which adds a substantial amount to the price of a car. With these economic differences in mind, the strategy of collecting and analyzing data is very different from one market to another. The Asia-Pacific region, for one, is one of the most diverse clusters of countries in the world, with many users proficient in several languages. The multitude of languages across the region makes it even more important to factor in these differences during the data collection process. What this means is that advertisers need to know the languages of their target market in order to target the right user with the right ad.

20


WHAT MAKES DATA LIKE DONUTS? The best donuts are those where every layer counts. Just like donuts, data is best used in layers. By layering different tiers of data, it enables you to build more comprehensive user profiles. Any donut lover can feel confused when faced with a wide selection of tempting treats. With customizable donuts (data), you can select exactly when you want at that point of time – just like choosing your target audience based on your campaign brief. Here are 4 questions all buyers should ask their data provider.

What donut do I want to build today?

Step 1 : Choose Toppings

Step 3 : Choose Icing

Step 2 : Choose Bun

21

Get your flavour of the day with customizable toppings (data segments) to deliver on-target audience profiles


Can you customize your donuts?

Sweet or savoury? One type of donut (data) may work for one buyer, but not another. Everyone has different taste buds, and different needs for their ad campaigns. Does your data provider factor in local language, culture and consumption habits in their data collection? With in-depth, high quality data that is targeted at the right audience, you can minimize ad wastage.

Premium Donuts $5.00

How much are your donuts?

Do not waste your money on bad donuts. You want the most bang for your buck, especially if you are paying for a $5 premium donut. As a buyer, you want to maximize your ad spend on high quality donuts (data), even if it means investing in premium data to ensure better targeting. Data is essential to understand your target audiences, and drives your marketing campaigns.

How fresh are your donuts?

Nobody wants a stale donut! Like donuts, the fresher the data, the better. In today’s digital era, any data older than 30 days is unlikely to be effective. Ask how often your data provider refreshes their cookie pools and how often the provider’s cookie lists are synced to their demand side platform.

How do you make your donuts?

Run as fast as you can from the dodgy donut guy. Know the source of your audience data - is the data from a publisher’s website or an ecommerce site? Is it based on surveys or through a partnership? Any reputable data provider will be happy to provide a transparent list of how they have compiled the data.

Without in-depth, quality data with scale and reach, you will not get the experience you are looking for at that particular point of time.

FAILED 22


12 Eyeota 123 3 In Numbers 56 4

1+2=3

50+

employees = 50% increase

16 40

20

3X3=9

HOLA SALUT 你好 HELLO ADIÓS

total languages spoken

different nationalities

events we attended

456

2

new offices in Melbourne & Tokyo

123

50

US$10M

23

of the 50 highest spending advertisers use our data

funding raised to date

1+2=3

3x

1.5Billion

revenue increase year on year

unique profiles


Eyeota GLOBAL OFFICES around the world Tokyo

Eyeotians’ Favourite snacks

Australia Chocolates

Germany Nuts

United Kingdom Drumstick Squashies

Japan Oreos

Singapore Granola Bars

24


www.eyeota.com

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