A VERY high level intro on the most common segmentation strategies that are used across many marketers as well as a audience testing framework for beginners.
The audience testing sheet that is included as a bonus, is a great tool for anybody that manages a Data management platform or does any audience testing across various media channels.
At the same time, if you find yourself being a bit overwhelmed with all of the 1st 2nd or 3rd party data targeting options from, I'd highly recommend using a service like ClearSegment to understand various data providers - it's data collection methodologies as well as their individual segments. https://clearsegment.com/
TYPES OF DATA
2nd PARTY DATA
Data owned by a
partner but shared with
1ST PARTY DATA
Data collected and
owned by your
PII: Personal Identifiable
Information such as name,
address, email etc.
3rd PARTY DATA
Data generated and owned
by other parties/vendors.
Anonymous: No personal
information linked by cookie
or device ID.
UNDERSTADING THE SOURCE OF THE DATA
Online Data Offline Data
Note: Based on industry and business model online
and/or offline data importance may differ.
PROCESS OF CREATING SEGMENTS
Data Type: 3rd Party
Adoptability to change: 1/5
INCREMENTAL AUDIENCE TESTING
“Imagine climbing a hill wearing a
blindfold. When you feel yourself go
downhill, you know you need to
pivot to keep going up. Eventually,
you’ll reach the top, but there’s no
small step you can take that will get
you on the right path up the
mountain behind it.”
A BETTER TARGETING
Optimized at Local Maxima
HITTING THE AUDIENCE CEILING AKA LOCAL MAXIMUM
PROCESS OF CREATING SEGMENTS
A variety of Lookalike
models that pick up on
1st party online or / and
offline signals to generate
that look similar to users
at this stage
Data Type: 1st 2nd and/or 3rd Party
Adoptability to change: 5/5
Online Data Source
Offline Data Source
AUDIENCE EVALUATION GUIDELINES
MIN. X IMPRESSION COUNT1
TIME THRESHOLD FOR METRICS TO STABILIZE2
FIRST AND SECONDARY KPIS4
SALES MATCHBACK TRUMPS EVERYTHING5
CLEAR RULES ON WHEN TO STOP UNDERPERFORMERS6
CONTROL AUDIENCE AS A MEASURING STICK3
WHAT ARE COOKIES?
Cookies are small text files that collect certain pieces of information
about online users. Each time a user visits a new website, cookies are
created by the Internet browser and saved onto the user’s computer.
When that user returns to the website, the cookies will help it to
remember certain things, such as what content the user viewed and
which pages they accessed.
First-party cookies are created by the websites we visit directly.
Third-party cookies, also referred to as tracking cookies, are collected
not by the website, but by advertisers.
FROM COOKIES TO USER IDS
Cookies can perform a vast number of functions, however, they
are restricted in size. In order to address this issue, some cookies
now only contain a unique ID. By storing a cookie with a unique ID
on the user’s computer, advertisers and other companies can then
store the rest of the information about the user on their own
Example of how different advertising
platforms map and sync cookies.
Cookies are domain specific, which means those created by one
third-party tracker (e.g. lotame.com) cannot be read by another
third-party tracker (e.g. appnexus.com). For advertisers, this
restricts the potential amount of information they can collect
about a user. Therefore, in order to accurately target an
audience, advertisers need to incorporate user data from various
domains and sources. Advertisers are able to achieve this by
mapping user IDs from one system to another.
COLLECTING USER INFORMATION & MATCHING
IT ALL STARTS WITH THE BROWSER
1. A user visits a website that contains an ad.
2. The browser sends an ad request to an ad exchange.
3. The ad exchange sends back the request and creates
a (third-party) cookie.
4. The ad exchange redirects (http redirect) the ad
request to the pixel URL on the DMP’s side, passing the user ID in the URL parameter.
The DMP reads its own cookie, or creates a new cookie, and then saves the user ID
passed from the ad exchange along with its own user ID in the so-called cookie-
5. If the sync is bidirectional, the DMP makes the redirect back to the ad exchange,
passing its own ID in the URL parameter. The ad exchange receives this request, reads
its own cookie, and stores the DMP ID along with its own ID in the cookie-matching
6. Now, both the ad exchange and DMP have each other’s’ user IDs in each other’s