A market in transition

Why data driven display advertising not only means RTB

Wind of change in the display advertising market

The display advertising market is undergoing a marked transition. Whereas in the past it was primarily environment-based banner campaigns pitted against targeting options such as geo, social demography, category, time etc., we now have so-called profile data-based targeting. In this it is no longer primarily the environment that is of relevance, but rather the profile characteristics of the users addressed. The generation of user profiles requires user marking and the allocation of specific characteristics. Here at KUPONA we consider specific buying intents to be the key profile characteristics for sales-oriented profile data campaigns. We therefore also refer to this as "eCommerce Profiling“.

The best known form of profile data targeting in use to date is retargeting. This involves the own users of a shop being marked and dynamically addressed with the products most recently viewed. The user potential of these campaigns is therefore limited to the range of the shop itself. This is also referred to as 1st party data targeting.
Users that are already interested and that have already been in contact with the advertiser are addressed again with the aim of achieving conversion optimisation, cross-selling or up-selling.

KUPONA develops eCommerce Profiling

Additional demand potential is offered by 3rd party data targeting. This involves the targeting of the user profile of a 3rd party profile data supplier. This may be another, complementary shop or a content environment, as vertical as possible, regarding a specific theme.

KUPONA develops eCommerce Profiling

No PULL without PUSH!

KUPONA marks such user profiles itself with the explicit agreement of the profile data supplier, refining these within its own data management platform and offering targeting within the scope of display banner campaigns in the range of the German TOP internet marketers. We call this approach that we have developed „eCommerce Profiling“.

Advantages of eCommerce Profiling

By means of eCommerce Profiling the advertiser can ensure that users are addressed with highly-specific themes and buying interests. This succeeds in significantly reducing wastage in comparison to purely environment-based advertising.

Advantages of eCommerce Profiling

High target group affinity through 3rd party data

In addition, the potential customer profile can also be specifically addressed over several days and weeks, not merely singularly within a specific advertising environment.

It should be noted here that shops in particular do not wish to have onsite advertising, but are nonetheless prepared to offer their profiles as targeting filters within the scope of display campaigns outside of their shops.

Data ownership as basic prerequisite

For eCommerce Profiling it is especially important that the user profiles of a competitor are never used for advertising purposes!
The core philosophy of KUPONA with regard to data driven display advertising is to establish complementary links between profile data suppliers and advertisers.

In no case should this result in cannibalisation effects - such as via the direct or indirect provision to competitors.
The profile data of a shop is a key asset for its eCommerce potential and may only ever be utilised/involved in its own economic interests.

eCommerce Profiling as an opportunity for manufacturers and eShops

User profiles of shops are therefore generally not offered to 3rd parties/other shops, but instead utilised in the scope of manufacturer campaigns. Manufacturers do not compete with shops, instead they have an interest in addressing their target group as accurately as possible for the benefit of their own brand. The user profiles of shops offer manufacturers a target group of users with specific, up-to-date buying interest. This means that users in shop categories relevant to the manufacturer are of the highest relevance.
Targeting of these users is one of the most efficient advertising forms available to manufacturers.

The data-driven co-operation model between shop and manufacturer takes its optimal form where the manufacturer campaign links from the advertising banner directly to the shop of the profile data supplier – with a filter for available products of the manufacturer.

In this case, in addition to awareness and brand sensitivity the manufacturer campaign also brings the option of direct sales in the co-operating shop.

In addition, the shop is also rewarded for providing its profile data within the scope of the display campaign with "free campaign traffic", paid for by the manufacturer.

This is the most modern form of advertising costs transaction between manufacturer and trade, enabled via data driven display advertising.

Content pages as profile data suppliers

A further form of eCommerce Profiling lies in the co-operation with vertical content pages or even comparison pages. For example, if a user on a comparison page moves to the "credit" area, it may be assumed that the user has a specific interest in taking out instalment credit or similar. For a credit bank, this user profile would be an extremely valuable targeting criteria within the scope of display campaigns.
However, as the clickout of such a display campaign would not lead to a comparison page but the page of the credit bank, in this case the profile data supplier (the comparison page) could be compensated via the AdImpressions TCP.

Lucrative revenue models for profile data partners

KUPONA remunerates its profile data suppliers fairly and transparently for their share of the advertising turnover of eCommerce Profiling campaigns and offers portals additional revenue options in the process. All on the basis of clean, convenient reporting.

Lucrative revenue models for profile data partners

KUPONA reporting front end

In the affiliate marketing environment this leads to extended co-operation options between advertisers and publishers. In the past publishers were purely advertising mediums guiding traffic to the advertiser and thereby generating commission proceeds. Now the publishers become profile data suppliers, providing user profiles within the scope of display campaigns.

The RTB reality

As an experienced specialist in affiliate marketing with 10 years of expertise, KUPONA brings together publishers and advertisers and develops data-driven banner campaigns. And not necessarily within the scope of RTB campaigns: to date, the potential of real time advertising has been restricted to a fraction of the available online traffic in Germany. Moreover, the competitive bidding situation results in a rise in the TCP payable there. In addition, our experience clearly shows that whitelistings in the scope of RTB do not work faultlessly, with the consequence that displays in RTB frequently lead to forwarding to non brand-safe environments. These constitute a risk to the brand. In view of this, KUPONA only makes limited recourse to the potential of RTB, although we see the future of online advertising as lying in this technical booking and trading mechanism – when the system is perfected!

Quality through transparency

Unfortunately, for many large agencies data driven display advertising is merely the RTB-based booking of display campaigns with the incorporation of profile data available in DSPs. It is not generally apparent in detail where this data actually originates or how relevant it really is for the advertiser.

At KUPONA we procure the profile data first hand and reveal in detail where the data actually originates or was recorded. As a consequence, for the advertiser it is transparent and logically apparent where he should actually align his targeting.

Transparency of data sources in profile targeting is the basis for reputable data driven display advertising!

Contact us! We look forward to establishing an individual eCommerce Profiling for you.

Hendrik Seifert
Managing Director
Hendrik Seifert
KUPONA GmbH
Frankfurter Straße 8
36043 Fulda - Germany

Fax +49 (0) 661 / 480 275 – 69

+49 (0) 661/ 480 275 – 19