Does Demographic Targeting Matter

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Does Demographic Targeting Matter? Kevin Lee
Executive Chairman Did-it Search Marketing
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Why Demographic Targeting Matters

• Better targeting brings us closer to the holy
  grail of advertising
• Marketers get to put more of their budgets
  towards their best prospects/customers
• Searchers (surfers/viewers) only see the ads that
  the marketers really want seen, the relevant ones
• Publishers get a higher yield on their search and
  impression inventory

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Whats in your media plan?
Do you buy offline media, other online? What is
the target market specified in your offline media
plan? Where did you get your demographic customer
profile. Age Gender Geography Income Lifestyle
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Demos in your customer file?
Can you determine demographics based on your
customer file? Age (who walks through the
door?) Gender (who walks through the
door?) (name analysis) Geography (zip codes)
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Collecting Demos on Conversion
Can you ask demographic questions during the
online sales or lead gen process? Its never to
late to start learning more about your customers.
Create a data repository internally or with a
third party. Collect demographics not only to
analyze for customers vs non-customers, but also
to distinguish your BEST CUSTOMERS.
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The key is the Power Segment
YES, demographics matter if you have a Power
Segment. Power Segments increased profits and
revenue though the use of targeting is the
identification and exploitation of segmentation.
Identify your Power Segments!
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Demographic Segmentation to up Profits

• Demographic Segmentation
• Which demographic profiles correlate with
  increased profit driven at any point in the click
  to sale process?
• Better conversion from click to lead/sale
• Higher immediate value
• Better lifetime value of the customer

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Demographics with high conversions
Its a lot of trafficking work to re-structure
campaigns to market differently to segments. Why
bother? Better conversion from click to
lead/sale For example if the conversion of
non-identified (mixed traffic) is 1.5 and the
conversion rate of men aged 26-35 is 2.1 then
you can afford to bid over than 25 more. Higher
bids may get you additional volume.
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Demographics with larger sales
Higher Immediate Revenue or Profit Does one
segment order more expensive items or larger
quantities? If Women aged 18-25 have a shopping
cart with 178 vs 122 for the average shopping
cart, you can afford to bid more for the
power-segment. Higher bids may get you additional
volume.
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Profitable Demographic Segments
Higher Lifetime Value Does one segment order
more over time or stay with your company longer
creating annuity revenue? Whats your 90-10 rule?
If Women aged 18-25 have order your hair care
product every three months for 4 years, you can
afford to bid more for this power-segment. Higher
bids may get you additional volume.
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Geographic Segmentation

• Geographic segmentation may be the most powerful
  method of segmentation you have
• Clicks are worth different amounts
• Clicks from different regions of the country or
  world have differnet needs and preferences (think
  ad creative and landing pages)
• Why manage only on a national basis when you can
  segment?

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Geographic Segmentation

• Geographic segmentation may be the most powerful
  method of segmentation you have
• Clicks are worth different amounts
• Clicks from different regions of the country or
  world have different needs and preferences (think
  ad creative and landing pages)
• Why manage only on a national basis when you can
  segment?

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Case Study 1 Car Buyers

• Not everyone looking for car info is a good car
  buyer. Cant be 1 on every term all the time?
• Did-it and major car lead-gen site team use age,
  gender and geography based on feedback from their
  customers, the car dealerships
• Cherry-Pick the good clicks. Leave the bad
  clicks to the competition.

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Case Study 2 B-toB Marketer

• B-to-B has its own challenges, particularly when
  you are selling in bulk what might also be looked
  for (searched on) by a consumer.
• Knowing more about the existing customer-based
  helped MSC Industrial Supply and Did-it tune
  campaigns to eliminate more wasted clicks and
  focus on the clicks that convert.

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How To Target By Demographics MSN

• MSN adds increased targeting options by allowing
  you to raise your bid (bid boost) by
  demographics
• Age (five age ranges)
• Gender (M/F)
• Geography (DMA)
• Plus Day-Parting and Daily Scheduling. The
  additional targeting might be EXTREMELY
  applicable to your business.

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How To Target By Behaviors Google, Yahoo, MSN

• One way to target based on behavior is though the
  control you have over listings allowing you to
• Use Dayparting (Time of Day)
• Day of Week
• MSN includes dayparting and day of week
  selections in AdCenter. Dayparting in Google and
  Yahoo require the use of third party technology.

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Dayparting Conversion Behaviors
Major differences in conversion.
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PPC Auctions, Two Types at the TOP

• There are only two kinds of marketers at the top
  of the PPC search results
• Brilliant Marketers managing to ROI or buying
  scale intelligently, often though segmentation.
• Total Lunatics emotional bidders no data
• What does it really mean to be at the top? At
  the top for which searchers, when, where?
• Use the Power Segments to drive business

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Use Segmentation and Targeting

• Targeting strategies and the Power Segments allow
  you to buy the clicks with the highest profit
  potential
• Reduce waste
• Target the best customers
• Increase profit
• Improve your messages and offers
• Be more aggressive when it matters
• Questions? Copies of PPT? Kevin Lee Executive
  Chairman of Did-it.com. kevin_at_did-it.com