
With
display advertising spend estimated to almost triple in the US over the next
five years from $10 billion to $27 billion, almost every marketer is allocating
substantial money and time to this area. However, most display
advertising efforts have been focused on branding and anonymous acquisition
efforts, not CRM. But why is that? Many factors are in play, but the simple answer is that there has been no easy way to achieve the
personalized one-on-one type of communication achieved with permission based
email with display ads.
Mostly,
the challenges have been around how to find a company's customers among the
hundreds of millions of anonymous users on the Web, and how to serve ads to
just those users instead of buying large anonymous user segments in hopes that
they contain some of the target customers. Other issues for marketers
have been how to coordinate display ads with other marketing messages, and
responsibly manage user privacy in an age of data-driven marketing where both
users and regulators are highly sensitive to how marketers use customer
data.
In
September, Responsys rolled out its new display offering called Relationship
Retargeting, which enables marketers to reach customers with display ads as
part of their relationship marketing programs. It provides relationship
marketers with vast new opportunities to improve reach and frequency of touch,
while augmenting the value of messages from existing channels such as email and
mobile.
By
tightly integrating marketers' CRM data, user
cookies, ad servers and ad exchanges, Responsys has opened up a powerful
new channel for relationship marketers. However, it also took significant
evolution and maturation of the industry to make this happen. Display
advertising technology has evolved rapidly in the last three to five years,
making one-to-one marketing not only possible, but a highly effective way to
reach customers and known users. We worked hard to make this happen, but to be
fair, we were also the beneficiary of a market that is finally ready for this
type of marketing. Some of the key industry evolutions include:
Emergence
of Real-Time Bidding (RTB): The availability of real-time bidding on the ad exchanges
allow marketers to target and bid for impressions at
the user-level. With over
five billion daily impressions available via RTB, marketers can now reach their
customers at an individual level without buying millions of other unknown users
in the process.
Making
1st party customer data available for targeting: Most
marketers have rich customer data from both online and offline interactions
that drive their email and direct mail marketing programs. However,
marketers increasingly see this data as a scalable asset that should be
leveraged across other channels, including social, mobile and display.
Working with their email service provider or data management platform,
marketers have undertaken efforts to make this data actionable for other online
channels and make every customer interaction, whatever the channel,
intelligently data-driven.
Standardizing
and self-regulating use of cookies and Personal Identifiable Information (PII):
Cookie'ing users is easy, and tying that cookie to rich user data is far
more manageable than it was just a few years ago. However, communicating
with users based on what marketers know about them require the marketer to
responsibly manage and protect the user data. The Network
Advertising Initiative and the Digital Advertising Alliance have done
a great job implementing industry-wide self-regulation that provides data
transparency and the opportunity for users to opt-out.
This
is a great time to be a relationship marketer, as the advances with display are
exciting and quickly evolving. However,
there are also lots of issues to understand and consider when it comes to
display, and this will be the first of many blog posts that examine what
display means for relationship marketing and how to best take advantage of this
new power channel.
In
the meantime, I suggest you check it out for yourself....
http://www.responsys.com/suite/display.php