Audience Extension – What you need to know
Audience Extension is an approach of targeting users based on the analysis of their CRM, mobile or desktop data . Depending on this data, audience extension is increasing the reach of an audience by finding users that are similar to the original target group. User with similarities in data, behaviour, interest or geo are more likely to become customers in the future. Therefore Audience Extension is a great tool for digital companies to increase their marketing performance.
The core benefits of audience extension:
- It helps publishers to earn more money by enhancing target audiences – even not limited to just one website and/ or ad network
- It help advertisers to increase their reach to a broader audience and get new prospects
There are two key tools involved to extend an audience:
- Gathering data via a Data Management Platform. Find out more about our solution here.
- Executing your campaigns via a Demand Side Platform or using an Adserver
Keep in mind: Audience Extension is the umbrella term for well-known modelling mechanisms such as Look-a- Like, Twinning or Act-a-Like, but better.
How does Audience Extension work?
In order for extension models to produce accurate results, different types of data (i.e. first-, second-, and third-party data) need to be collected from a range of online and offline sources. The next step involves using algorithms to extend the audience based on this model. The DMP analyzes the seed audience and then applies proprietary algorithms to the data in order to find user profiles that match the seed audience within the defined threshold.
Excursus: Audience Extension within The ADEX
The following information is based on the status quo of September 2018:
- New Audience Extension version with an even better algorithm
- Segment can be expanded with 2 clicks
- By using a slider, you can choose from very high similarity to an ultra high reach
- Lookalike segment building within the DMP works in real time
Why and when is Audience Extension useful?
Advertisers and agencies often try to target a premium site audience with the highest performance capabilities to reach their objectives. Unfortunately, these audiences are limited, highly competitive and often sold out or very expensive. With Audience Extension this dilemma can be solved!
By using some of the preferred segments attributes and trying to find users with the same characteristics. By evidence, this process leads to outstanding performances, with reduced budgets.