Thought Leadership: What Benefits Others Benefits You

Late 2009, Epic Advertising undertook its largest thought leadership project to date when we launched our very own print magazine entitled “Winning the Web”. Most everyone has been aware that Print media in general, and specifically advertising within Print media, has been strained for years –not to mention recent months. The world continues to become more digital and our company obviously fully supports this movement and lives it every single day as that’s our business and expertise.

So why would a 100% online advertising-based company launch a print magazine, and one without any paid advertisements? I can assure you it is not because we have money or time to burn!

As the Editor and Publisher, I can tell you it is for thought leadership. Some other ancillary benefits are cost savings at trade shows (where we can hand out magazine in place of the standard, boring, dull pieces of collateral most companies do), uniqueness, the ability to act as a direct sales tool for our company, and brand extension.

Thought leadership is important for several reasons. It legitimizes the subject matter you and your staff promote on a daily basis, it positions your company ahead of the competition, particularly if your analysis is insightful. Depending on your target audience, it can also make a difference with clients making the critical decision about which company they want representing their brand.  It can also shine a light on individuals or areas of your company that may lack, and deserve, necessary exposure.

The problem with most companies who try to be thought leaders is that they do it in an extremely self-serving way. No one wants to read 28 pages about Epic Advertising, not even us. This is why you will read very little about our company, but rather a wide array of topics written by our company. We try to approach each issue with a specific theme and then find terrific case studies to support this theme. We feature one major company or brand each issue and do a Q&A with them. We prepare content about startups, mature companies, online trends, technological breakthroughs and much more. We do not prepare content talking about how great we are. We aim to help others first and foremost and if we get some tangential positive benefit because our readers deem our expertise to be valid, that’s terrific.

The great thing about helping others via thought leadership is we can choose to associate our company with those companies or practices we believe to be best in class.

What’s the ultimate goal? To educate a whole new set of constituents, clients, prospects and industry folks, about the core issues they need to know when embarking on a movement into or towards the digital business world. Further, we supplement our expertise with relevant pieces about other companies the reader is likely familiar with – not just in hopes of getting more business for us, but in general to support all companies that do what we do and to help showcase others. If you can’t help others know what you know, your thought-leadership will be transparent and weak.

The only irony with all this is that we’re leveraging a print vehicle to provide digital business thought leadership. Is it working? Well, we’ve been written up in some major media outlets, have a 15% subscriber growth in just 5 months, and have gotten to work with some great new clients, so I’d like to think so. But as with any thought leadership exercise, only time will tell.

– Michael Sprouse, Chief Marketing Officer, Epic Advertising

Five Key Trends in Online Advertising for 2010

Now that we’re a few weeks into the New Year, and everyone is wondering where the online advertising industry will go in what will hopefully be a prosperous and profitable year for everyone, here are five predictions for the online advertising industry in 2010:

Campaign Measurability

For the past few years, many experts have claimed that the industry was on the verge of bringing new, more comprehensive metrics to online advertising. In other words, a way to measure campaigns beyond the impression, click or action—and even tying these three metrics to offline efforts or campaigns run via other media. Think of the Holy Grail for advertisers: being able to know your ROI for your comprehensive suite of campaigns and being able to attribute, or weigh the exact effect from each type of media running concurrently or independently. Some companies (even ours) have been developing their own solutions, and I feel 2010 is the year when we collectively make the most headway towards this goal.

Consolidation

Consolidation was the sexy topic and big prediction from seemingly everyone at the start of 2009, yet it never really happened. A major difference between offline media and the online ad industry is that there are hundreds of players in the online ad ecosystem. It is not as simple anymore as an advertiser or an agency handling offline media buys and then reporting on them. Enter advertising networks (including all the various types of networks), exchanges and the sheer volume of publishers, and you have what some consider a very convoluted ecosystem. I do believe this will be the year that the ecosystem becomes at least a little less muddied, which should benefit advertisers and publishers alike.

Flight to Performance

With every passing report by the IAB/PWC, it becomes more apparent that advertising has skewed over the last few years towards true performance-based campaigns (mainly, CPA & CPC). In 2009, performance-based campaigns made up 58% of all ad spend compared to 38% stemming from CPM. I expect this gap to widen a little more in 2010, especially if the first point above holds true. Remember that CPM pricing was ported over from traditional media over a decade ago, and advertisers are beginning to understand that performance-based campaigns don’t necessarily translate into the eschewing brand-building; rather, performance-based campaigns simply mean gaining better insight in the process of building the brand.

Social Media

Think 2009 was a big year for social media? It was. But 2010 will be even bigger. Many advertisers were trying to find their way and understand social media better in 2009; I think this trend will continue with more ad dollars funneling to social outlets, and more importantly, better monetization practices in the process. If advertisers “spend where the traffic is,” then this prediction will hold true, as a majority of social networks and social media outlets are growing at an unprecedented rate.

Mobile

Is this finally the year, domestically, that mobile advertising starts to take a bigger piece of the pie? Some recent statistics might suggest so: In 2009, approximately 26% of people accessed the Internet at least once a month on their mobile device (source: eMarketer). By 2013, that is expected to rise to 44%. In 2009, roughly $760 million was spent on mobile marketing. By 2013? That figure is expected to be $3.3 billion.

I do not believe 2010 will be a “breakout” year necessarily within the mobile advertising market; however, it is clear with the recent acquisition activity in the space that major media companies and Web titans believe mobile marketing will play a key role in their futures.

These are the five key online advertising predictions I have for 2010. What are some of yours?

– Michael Sprouse, Chief Marketing Officer, Epic Advertising

Consultants: How companies view them and differences between successful consultants and poor ones – and why.

For many of you who have been successful in business either alone or within the infrastructure of a company, you’ve undoubtedly either been a consultant or had the need to hire one. I, myself, have both hired and been a consultant. I’ve worked closely with consultants, sometimes one-on-one, and also been an arm’s-length distance away from them within the corporate infrastructure. This undoubtedly gives me some expertise in the area and I’d like to share my observations about what makes good consultants (or successful ones) and what bad consultants lack (or do wrongfully).

I’d like to start by saying that consultants can be very important and a tremendous value-add to any company. Most often, they are hired by companies to bring expertise, knowledge, strategic insight or tactical skills that don’t exist previously. Sometimes, they are purposely hired not to be an agent of change per se, but an agent of growth. Some consultants are successful; others become warts. Good consultants can be invaluable (and if you’re a good consultant, it can be a very fulfilling career path).

Here are some do’s and dont’s for consultants looking to be hired by companies as agents of growth. I hope they are helpful both to consultants (and the companies hiring them, because consultants can play a very important part in driving new business growth, and I’ve seen a lot of success in my current role and at my past companies in utilizing them).

1) Don’t act like you’re smarter than everyone.

Nine times out of ten, you’re not. Even if you as the consultant think you’re smarter and have solutions that people at the company aren’t smart enough to have already thought of, really, that’s probably unlikely. Sometimes, your hiring is because of resources and to be more of a tactician. Other times, it is more strategic. Either way, the folks at a company live day-in and day-out within the industry they’ve chosen. That is not to say you won’t end up feeling smarter – if you’re successful – but don’t treat it like a foregone conclusion from the start.

2) Don’t act like you’re there to run the place or any one department.

Nine times out of ten, you’re not. The importance of collaboration is key. If people think you’re a “new sheriff in town”, you’ll likely stumble fantastically. What ended up happening in “Office Space” when the two Bob’s were brought in? The company ended up burning down. That example is a bit dramatic, but consultants often need to check egos at the door and immerse themselves in the company, just as a middle manager would, to start with. You’ll create some key allies along the way.

3) Do be open and honest that you’re an agent of growth.

This can be tricky. You, as a consultant, have a job to do. Just like every other employee at the company. Human nature resists change, and humans working at companies are no different. However, they don’t resist growth. People like growth. Take the time to explain to people why the changes that MAY occur could result in growth, and how individually, they might benefit or have their jobs become easier or help the company succeed. In other words, sell the dream – and deliver substance.

4) Do get to know the people in the organization.

And I mean all of them, top to bottom. Even if the executive team likes you, or you have undying support in a certain area of the company, there is a 100% likelihood you will come into contact with many other people in other departments. You will need everyone’s help in order to do your job right, and to “fit” in the organization and particularly into an organization’s culture. Disrupting the culture is a no-no unless its necessary for growth; I shudder to think what would happen if Epic, rated the 3^rd “Best Place to Work” by Crain’s New York, were to have an outside agent disrupt its culture.

5) Do try and have a pretty squeaky clean history and well-respected record of success.

The presence of a consultant requires in-house “selling” to be done to the rest of the organization. And hopefully, if successful, will also require external marketing and PR for whatever initiative the consultant is hired for – which the company will undoubtedly want to talk about publicly. In the digital age, it’s incredibly easy to find out a consultant’s expertise and successes and failures. A good journalist will find out who is behind such a successful venture that the company is so eager to talk about. The worst thing to happen would be if the consultant severely lacked credibility in any way – which would make the consultant and the company look bad.

Finally: Be pleasant with people, and treat them with respect. Understand that it’s not about you the consultant, no matter what you’re getting paid. If the company is a successful one, the consultant’s job more often than not is to fit seamlessly into that organization, not vice versa. If consultants are going to be the agents of growth they’re hired to be, it tends to work a lot better if you’re not a jerk and you’re easy to work with.

– Michael Sprouse, Chief Marketing Officer, Epic Advertising

‘Tis the Season: What Works and When During the Holidays

It’s often said, but is becoming glaringly true: Every year, the holiday season “begins” earlier and earlier. In 2009, we saw holiday decorations go up right after Halloween. Which begs the question for marketers: Is the ‘holiday season’ now just blurring into the rest of the year? And if so, what opportunities await?

If you’re a marketer promoting holiday-themed items, you obviously know that this time of year is especially important with post-holiday sales and New Year’s resolutions. These initiatives provide marketers with ample opportunities to promote their products and services. But if your product or service is less holiday-themed, then what works . . . and when?

Timing is one of the most important aspects to most marketing campaigns, regardless of the product or service. Good marketers will always look at the most successful days and times to run their campaigns. Look at a calendar, and take your personal life and scheduling into account when planning. Are there specific days that you likely know people will not pay attention to your message or your e-mail? Are there days you think they might?

You can probably learn a lot about other people’s consumption patterns by looking at your own.

A lot of marketers automatically cross out Dec. 25 from their promotional calendars. Major mistake! Not everyone celebrates Christmas, and if the entire movie industry crossed that day out from its calendar, it would lose a significant amount of revenue! You need to think strategically about timing with holiday promotions because there could be hidden opportunities.

Take the time just after Christmas and Hanukkah, for example. The irony is that jubilant from gift-giving, and flush with gift certificates, many people are more willing to spend money after these major holidays then at most other times of the year. This provides marketers the perfect time to reach consumers since most are on vacation and/or away from work and are more receptive to your marketing.

The weeks following Jan. 1 present an opportune time to promote anything related to New Year’s resolutions. This is why health clubs have historically made a killing during this time of year, but this phenomenon could easily extend to other vertical categories as consumers take stock of all aspects of their lives in an effort to start the year off right.

This is why I advise marketers to think about the things you personally do during this time of year, and use that to answer the question about what might work for your target audiences.

I look at my own situation and see where I might be able to:

• Save Money (insurance, financial services)
• Grow Professionally (higher education);
• Plan (tax services)
• Make Improvements (home improvements)

Now is an ideal time for several sectors of the travel, personal health, consumer goods and nutrition industries to market themselves to people who have thoughts of personal grandeur and a better life on their minds. After all, when it’s the dead of winter in most parts of the country, many dream of island paradises!

Michael Sprouse – Chief Marketing Officer – Epic Advertising

Marketing & Advertising: The Important Difference

In the world of media, a big area of confusion is the difference between marketing and advertising–most use the terms interchangeably. There are very distinct differences between what is considered advertising versus marketing, and the words and definitions apply equally to online or offline businesses.

Advertising is a subset of marketing. It is a single component within a marketing plan and is often considered the most important aspect of marketing, but not always.  The goal of advertising is to create awareness of existing products or services to the general public or a specific group. Advertising explains why customers need that particular product or service, how it will benefit their lives and how to obtain the product.

Marketing, by contrast, is defined as a strategy and process that includes advertising but also several other aspects. This includes systematic strategic planning and tactical implementation.  A good marketing strategy understands the needs of its constituents and finds the best way to disseminate that information to the customer or target audience. Sometimes, advertising is the best delivery mechanism, but not always.

Advertising is a single component of marketing.  It entails getting the word out about your business, product, or the services you are offering. It involves the process of developing strategies such as ad placement, frequency, etc. Advertising includes the placement of an ad in such mediums as newspapers, direct mail, billboards, television, radio, and the Internet.

Think of marketing as a “hub”, with spokes including advertising, market research, media planning, public relations, product pricing, distribution, customer support, events, sales, and community involvement. Advertising is one spoke coming off the hub of strategy. All of the spokes must not only work independently but they also must work together to achieve the end objective. Marketing is a process that takes time and can involve hours of research to be truly effective. Think of marketing as everything that an organization does to facilitate an exchange between company and consumer (B2C) or a target audience or group (B2B).

Without a great marketing strategy in place, advertising is less likely to be effective. However, businesses can produce somewhat ineffective advertising and still have a chance to succeed since broader marketing goals might be able to be achieved through the other aspects of marketing.

In order to become a world-class marketing team, you need a sound marketing strategy first and then strong advertising strategies to your constituents second. Good advertising only comes after a good marketing foundation has been put in place.

Michael Sprouse – Chief Marketing Officer – Epic Advertising

Online Marketing for the Small Business

In recent weeks, while there have been signs of the broader recession lightening, if not diminishing entirely, skepticism among small businesses owners has been reported amidst all the optimism. Why? Uncertainty about health insurance policy, job stability and other major economic factors still remain. So, are there opportunities for small or mid-sized businesses to grow, and specifically to market themselves effectively without risking their minimal budget?   In short, yes. Here’s how.

The Internet can be called the “great equalizer” for many reasons. First, many small businesses, as well as “underwear entrepreneurs”, have built themselves solely off the Internet.  I’m not referring only to the likes of Google, Yahoo and Facebook here.  There are thousands of small businesses that have launched in the last 15 years that you have never heard of, and that are considered “smaller,” yet still significant and impact-driving.

Small businesses have seen the benefit of marketing their business online based on a number of advantages compared to the offline world: 1) Enhanced targeting; 2) speed to advertise; 3) Equal advertising real estate with large corporations; and 4) An accurate cost/benefit analysis enhanced by the use of a CPA (cost per acquisition or action) model.

Let’s look at each:

For a small business advertising offline, the biggest disadvantage resides in the budget, as compared to multi-nationals. But it’s not just money at the root of this disparity; it’s also spending money the right way, to reach the appropriate targets. Small businesses are (and should be) a lot more conscientious when it comes to spending ad dollars to ensure the right audience receives their message. The Internet provides a way to target users effectively geographically or locally, or based on other targeting methods like behavioral or contextual, that simply aren’t available offline.

Perhaps the biggest advantage of small businesses over large companies, which is accentuated online, is speed to market. The Internet is fast, and it’s simple to run targeted ad campaigns quickly. There is no waiting for print proofs, mail stream, lettershops or  printing. One can be up and running with a search engine marketing campaign, for instance, in a matter of minutes. Further, there is a level of nimbleness simply not possible with traditional advertising. For example, if a campaign is not generating response rapidly, it can be switched out with a more effective campaign almost immediately, with minimal impact on budget.

What other medium enables small businesses to be side-by-side with huge brands and large businesses? None. Do a simple search for “pizza delivery NYC” and it underscores my point. Sure, you have the requisite search results for huge chains with enormous marketing budgets like Pizza Hut, Papa John’s and Domino’s. But right alongside these major chains are many of the neighborhood haunts that only native New Yorkers know. This dynamic extends across most industries and geographies on the Web; small businesses allowed to compete on a level playing field against multi-million dollar budgets.

Finally and most importantly: the use of a CPA model to achieve a greater ROI and easier cost/benefit analysis. Online, small businesses can now measure every dollar spent with an ROI analysis against those dollars. Further, many small businesses are partnering with networks that embrace the CPA model which is even more advantageous to the advertiser. That pizza shop owner now only has to pay when a new customer walks in the door, downloads a coupon, or when another preferred action (i.e. purchase) takes place. For small businesses without deep pockets, this is something that is a true benefit, and return on investment is in essence guaranteed.

Michael Sprouse – Chief Marketing Officer – Epic Advertising

How Online Advertising Has Changed – and What’s On the Horizon

The majority of my career has been spent in online media and technology, having begun as a programmer and now being CEO of a global digital marketing company. And I can tell you that it has been fascinating – and at times thrilling, even occasionally terrifying – to be a part of this rapidly evolving industry. Think of the changes we’ve seen over the last 15+ years: Mosaic, Netscape, AOL, Alta Vista, DoubleClick, Yahoo, Google, MySpace, Facebook, Twitter … what a wild ride!

Sitting here in late October, 2009, and looking back, it is fair to say that the online landscape has somewhat matured, at least in certain respects. Through rapid innovation and the development of new technologies, platforms, and ways to communicate, digital advertising has evolved from being a relatively unknown and mysterious channel into being a staple in nearly every ad budget. It has been a snowball effect, because as those of us who work in this industry have become savvier, we have paved the way for both advertisers and consumers alike to benefit from the Web and to innovate. The digital advertising space has coalesced into an accepted and necessary marketing channel.

Looking back on this evolution, I’m pleased at how far we have collectively come, and equally excited about the future, while mindful of a host of present challenges.

Let’s talk first about those collective challenges. We all have a responsibility in this industry to work towards finding solutions for them, in order to create greater sustainability and channel effectiveness. This is critical. Online usage is still increasing, portable Internet usage and WiFi is rising fast, and audiences are shifting at light speed towards online communities. All of these factors add up to opportunity for anyone tied to online advertising, but only if we – as an industry – continue to retain the trust and confidence of our stakeholders including individual online consumers, publishers and advertisers.

We face several challenges. First, despite the rapid growth of online in most advertising budgets, it still accounts for a disproportionately small slice of the pie – overshadowed most often by television spend. Second, there are still many constituencies out there who need more information and education on digital advertising, since the natural inclination is to think of the Web as somehow similar to offline media like print – which it isn’t. Third, there is still a prevailing mindset that online, because of its measurability, is only good for direct response advertising, while being generally ineffective at raising brand awareness – not true. Fourth and finally, as an industry, we still have a ways to go in brand protection, consumer protection and marketing compliance. Epic has invested millions of dollars in this latter area yet much more work needs to be done across the industry.

Despite these challenges, I couldn’t be more excited about the future. Since its inception, the Web has been a breeding ground for innovation. The challenges outlined above are real, but solvable. In 2010, you will see: 1) a further shift in budget towards online; 2) far better education and understanding of the potential of the digital medium from traditional marketers; 3) the continued erosion of the barrier separating direct response and brand marketing; 4) new solutions that protect legitimate marketers and, ultimately, protect consumers. There is also great work being done across the board in technology, from data solutions to targeting techniques to consumer protection.

The evolution of digital advertising has been a fascinating ride so far, and the best is yet to come. I’m excited and honored to be helping to lead our company and the industry as we continue to grow and learn.

Don Mathis, CEO – Epic Advertising

Online Advertising Security – Why it’s Critical Now

Ten years ago when I became an FBI Special Agent, a new type of crime was on the rise: cyber crime. This was not the type of cyber crime hyped by Hollywood involving a kid hacking into a Department Of Defense mainframe.  For the first time cyber crime was for profit. With the explosion of the Internet, criminals saw it as the perfect opportunity to defraud people and exploit companies. The legal system was not ready for these types of cross-border criminals and the laws did not address crimes like spam, phishing, domain squatting, identity theft, etc.

Though the government did work to put laws in place to address this new crime spree, companies were ultimately left to their own devices to regulate and protect themselves. The mantra for criminals became “if it’s not against the law then it must be ok.”

This same mantra extended to all aspects of online activity, the online advertising world in particular. Concepts like click fraud, spam, page jacking, adware and spyware were not addressed early on by the government and quickly became common place.

As online usage grew, and the commercial aspects of the Web realized, major brands that once easily regulated themselves became painfully aware that online advertising was not only the future but a necessity for profitability, but that protecting themselves against criminals was quite difficult and more complicated.

So how do major brands enter this marketplace previously targeted by scam artists with confidence and smart strategy? Ultimately, the industry should be developing and implementing state-of-the-art technology to seek out fraud, scams, and schemes and put an end to it through industry and even law enforcement.

Now that the medium has matured, it is acknowledged that the online advertising world needs to continue to protect itself, companies need brand protection and to generate consumer trust. Unfortunately few, if any, online advertising entities have been willing to invest in these areas of yet. As a result, some campaigns are still fraught with spam or aren’t compliant with FTC guidelines.

Epic is taking this opportunity to plant an important stake in the ground through our Online Intelligence (OI) division. My role at Epic is as leader of this division and I feel honored to hold this important role. It is our hope that our investment and state-of-the-art tools will set an example for other organizations within the industry and generate more focus on initiatives like implementing mandatory global suppression lists, proactively rooting out compliance violations, and driving consumer and brand protection forward.

At Epic, we are focusing greatly on everything from search marketing campaigns to marketing via social networks, areas of online advertising that are growing fast and need our oversight the most. Right now, the ability exists to search and spider every sponsored link on all major search engines, all links sent via email or links posted in a social networks users’ status and comments. Epic’s Online Intelligence division has the ability to check any site and detail any changes made to the campaign, hourly.

Through Online Intelligence, we are setting new standards for the entire online advertising industry where advertiser and consumer protection reign supreme. We encourage all other online advertising organizations to join us in this most important initiative.

Technology is the firm foundation for online advertising. Through technology we need to – and can – better protect ad campaigns, and the industry as a whole. Worthy initiatives that are better for advertiser and consumer alike.

—- E.J. Hilbert – President, Online Intelligence, www.onlineintel.com (A division of Epic Advertising)

Epic Fail: What you’re doing wrong, and how to do it right

I get asked a lot why online marketing campaigns fail, or at least don’t perform as the advertiser expects.

As mentioned in a previous post, the most important phase of a campaign comes before the campaign starts. This is where most advertising campaigns fail, because of a lack of detailed planning, goal-setting, and evaluation of progress against the goal.

The solution? Education. If you, as an advertiser, don’t understand something, ask your agency partners or your advertising network. It is always in their best interests to give you the right advice: they (should) want your campaigns to surpass your expectations. However, those expectations have to be properly rooted in historical data, current online marketing trends, seasonality, target audience, and preferred ad platform (display, search, email) to name a few.

A distant cousin to improper planning and education is that a lot of prospective advertising clients don’t harness the virtues of the Web. I’m referring to measurability and the potential to use data to drive marketing efforts, and then analyze that data to guide future decisions and budget.

The real crux of this point is that an ever-increasing analytical mindset needs to prevail online, even in brand marketing. To make my point: If I spend $1 million on a brand campaign on billboards in Times Square and the Sunset Strip, and I knew that the billboard in Times Square got viewed 2x more, wouldn’t I adjust my spending the next time? I would. In the real world, I would never know this – in the online equivalent, I would have a much better idea. Even if I’m running a pure brand campaign online, data is available – and is king.

This illustrates my final “fail”: an advertising campaign never ends. In reality, a lot happens after the start of a campaign and it really doesn’t end (presuming its working!) and must be constantly re-evaluated and dissected. For companies like Epic, we don’t view data analysis as something to do once in a while; it’s a fact of life in online marketing to be embraced.

As an example, Epic worked with True.com, the leading online scientifically-based dating service, on their marketing efforts. Their goal was to extend the brand, drive new customers to the service, develop and test new creative executions on ads and mini-sites, and, importantly, to optimize the campaign all along the way based on data. It was a continual, long-term process, not an end game. The result? 25 percent increase in new customers; development of over 400 new creative executions, all optimized in terms of what was most effective; and development of a turnkey analytics and reporting system. All of this success was accomplished because the pitfalls above were avoided.

Michael Sprouse – Chief Marketing Officer  - Epic Advertising

Removing the Tin-Foil Hat: The Realities of Behavioral Targeting

We’re taking another detour from our “Online Advertising 101” blog series to explain a hot topic among online advertisers, publishers and Internet governing bodies alike: Behavioral Targeting.

A broad explanation of this marketing technique is that practitioners collect non-personally identifiable information (PII), such as site browsing and searching activity, and select advertisements to present to the viewer based on this “non-PII” behavior. Behavioral targeting can be practiced by itself or in conjunction with other targeting techniques like contextual, geographic, or demographic targeting.

This practice is important to advertisers, publishers and ad networks simply because more non-PII information that is collected about the user’s Web experience leads to more relevant advertisements being served to that individual. Proponents cite that this is advantageous for advertisers because it makes ads more efficient and intelligent, with a better likelihood for success. Ultimately, publishers can command a higher rate for their ad inventory on this basis versus ads which appear with no targeting or intelligence behind them.

For advertising networks like Epic, there is a multiplier effect. Collating data and using it across a broad range of affiliates and publishers gives ad networks a clearer demographic picture of many more users, faster, and provides them with better, more targeted ads.

For example, if I visit ESPN.com, click on a dating site featuring predominantly females, then visit a hunting site, one could potentially glean that I am a male who could be classified as a sportsman, who may also be single. Though there isn’t 100% certainty of this, a network could begin serving ads that fit my potential profile and start to build a data file about what ads I respond to. As the process continues, the technology gets smarter about ads that might appeal to me, or might have the best chance to prompt an action, be it a click, sale or engagement.

The practice has not been without some controversy, primarily stirred up by advocacy groups concerned that this infringes upon user privacy. Ad networks (like Epic) are quick to counter these concerns through education, and in pointing out that data collected about a user is non-PII and that the technology driving behavioral targeting is predominantly “cookie-based”– whereby cookies are easily cleared or erased by the user. I should also remind you that it includes no personal data or identifying information about the user.

Those of us in the online advertising industry feel that the ability to better target advertisements serves to enhance the user’s Web experience by eliminating any “noise” or annoyance from irrelevant ads. The ability to behaviorally target in a responsible way using data that does not infringe on a person’s privacy is an example of the inherent benefits of the Web as a marketing platform and distinguishes it from other forms of media. Where other media cannot ensure relevance, the Web can.

Fundamentally, this point underscores the success of TiVo as an example which enables people to skip through the plethora of irrelevant, untargeted television ads.

We hope that this short summary has helped to clarify what behavioral targeting actually ‘is.’ It isn’t a dangerous, invasive technology, but rather one that actually benefits the end user.

Michael Sprouse – Chief Marketing Officer, Epic Advertising