PLATFORM DATA

2014 Merkle Inc. | Confidential 1

 The emerging opportunity in Addressability At Scale (AAS) is the key driver of
competitive advantage in the age of the customer

AAS 1.0 AAS 2.0 AAS 3.0 AAS 4.0

Name & Address Phone # Email Address Cookie & Device ID

1990 2014

2014 Merkle Inc. | Confidential 2

 Amidst all of this scale and automation, the addressability of channels and media is
increasing every day

The Addressability Spectrum

2014 Merkle Inc. | Confidential 3

 Addressability is reaching new levels of sophistication and scale due to the rise of
the Addressable Audience Platform

2014 Merkle Inc. | Confidential 4

 Throughout the next two days we will walk you through the 9 core competencies of
the Platform Marketer organized in three key areas
Platform Data
Identity
Management

Audience Consumer
Management Privacy

Platforms Media
Utilization Optimization

Measurement & Channel

Platform Attribution Optimization Platform
Enablers Execution
Experience
Marketing
Design &
Technology
Creation

2014 Merkle Inc. | Confidential 5

 In this mornings session we will kick-off with Platform Data

Platform Data
Identity
Management
Platform Data encompasses
Audience Consumer
the competencies required to Management Privacy
bring a comprehensive view of
todays highly digital, mobile,
and social consumer in a way
that is most useful for
marketing purposes

Platform Platform
Enablers Execution

2014 Merkle Inc. | Confidential 6

 Before I go on, what data are we talking about anyway?

247 billion 30 billion 29.8 billion 400,000

bid requests per second
e-mail messages are pieces of content shared ads served by Google
processed on the
sent each day on Facebook every day each day
AppNexus ad platform

Which amounts to over 3 informing over $10 billion

Merkle alone manages
petabytes of usable dollars in marketing
over 3.7 billion 1st party
marketing data growing at decisions per year for big
customer records
over 10TB/month marketers

And 96 billion real-time

Which translates to over
digital media bid decisions and 1.7 billion email
360 million search bid
which result in over 10 billion targeting decisions per
decisions per year
impressions served/year year

2014 Merkle Inc. | Confidential 7

 Wheres all the data coming from and why is it proliferating so fast? Lets
start with social

2014 Merkle Inc. | Confidential 8

 As well as mobility and multi-screen

Daily Distribution of Screen Minutes Across Countries (Minutes)

What Connected Device Owners Are Doing While Watching TV, USA
TV
Smartphone 49%
Laptop & PC Surfing the web
66%
Tablet
Smartphone 24%
Shopping
Tablet 44%

27%
Checking sports scores
29%

29%
Looking up info on actors, plot, athletes, etc.
41%

29%
Emailing / texting friends about program
23%

Reading discussion about TV program on 12%

social media sites 18%
0 100 200 300 400 500 600
Source: Meeker, Mary. Internet Trends 2014: Code Conference. PowerPoint presentation. 7%
Buying a product / service being advertised
http://www.kpcb.com/internet-trends 14%

Source: Milward Brown AdReaction, 2014. Note: Survey asked respondents Roughly how long did you spend
9%
yesterday watching television (not online) / using the internet on a laptop or PC / on a smartphone or tablet? Voting or sending comments to a live program
Survey respondents were age 16-44 across 30 countries who owned or had access to a TV and a smartphone 12%
and/or tablet. The population of the 30 countried surveyed in the study colectively represent ~70% of the world
population. Watching certain TV program because of 10%
Source: Nielsen Connected Devices Report, Q3, 13. Note: Data gathered from USA general population sample something read on social media 17%
13+ years old with 9,448 respondents w ho own a tablet, e-reader, smartphone, or streaming capable device.
Study conducted in 9/13 0% 20% 40% 60% 80%

2014 Merkle Inc. | Confidential 9

 And the consumer is getting more and more active/engaged

Daily Number of Photos Uploaded & Shared on Select

Platforms, 2005-2014 YTD
1,800
# of photos uploaded and shared per day (MM)

Flickr
1,500 Snapchat
Instagram Pinterest IMGUR Fitbit
Facebook
1,200
WhatsApp
(2013, 2014 only)
900

600

MyFitnessPal EventBrite Github

300

0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014YTD

Source: Meeker, Mary. Internet Trends 2014: Code Conference. PowerPoint presentation.
http://www.kpcb.com/internet-trends
KPCB estimated based on publicly disclosed company data, 2014 YTD data per latest as of 5.14

2014 Merkle Inc. | Confidential 10

 This is throwing off tons of content and data

2/3rds Of Digital Universe Content = Consumed / Created by Consumers

Video Watching, Social Media Usage, Image Sharing
13ZB
15 (+40% Y/Y)

12
Zetabytes (ZB)

>4ZB
6 (+50% Y/Y)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Meeker, Mary. Internet Trends 2014: Code Conference. PowerPoint presentation. http://www.kpcb.com/internet-trends
1 petabyte = 1MM gigabytes, 1 zetabyte = 1MM petabytes Source: IDC Digital Universe, data as of 5/14

2014 Merkle Inc. | Confidential 11

 Which gets advertisers excited and drives spend

2014 Merkle Inc. | Confidential 12

 Especially where they can use data in places like programmatic

Non-Programmatic
Programmatic media has already taken over 50% of transactions (35% of spend)
in the US digital media market with RTB the fastest growing area Non-RTB
RTB
US: Programmatic Share (% of Digital media transactions)
100%
Overall Digital Media Marketplace - $61B
21% 17%
27% by 2017
80% 36%
47%
62% 31%
76% 32% Over half of all digital media today is
60%
32% bought programmatically
29%
40% 25%
$8B in RTB media by 2017 growing at 59%
18% 52% CAGR
20% 47%
13% 41%
34%
28%
19%
11%
0% $8B in Custom Audience by 2017
2011 2012 2013 2014 2015 2016 2017

Source: Magna Global

2014 Merkle Inc. | Confidential 13

 Which of course is starting to generate real incremental growth and profitability for the
marketers most aggressively pursuing the opportunity

Auto insurer increased digital
media performance in acquisition
Anonymous media impressions with
offline view of converted customers
What data are
(segmentation, value, product)
we using?
Top 3 Credit Card Issuer
optimized paid search spend in
new card account acquisition
Consumer credit segments are being
connected to specific keyword
combinations to drive targeting
Consumer Electronics increased
conversion and sales volume
through its site and call center
Anonymous and identified user data
including shopping cart and browsing
with offline value segments

Product LTV Display Social Product LTV Demographics Search Product LTV Demographics DM &EM Site
Segment Segment Segment

Developing look alike models on Predictive models are optimizing bidding Real-time scoring models incorporate
How are we converted customers to be applied to on specific key words based on their consumer segment data with in-session
optimizing? anonymous prospects correlation with specific segments behaviors to predict optimal offer and
content personalization

Decreased CPA 68% while Incremental 7000 new card 28% conversion rate
Value increasing conversions 80% accounts or $50MM in LTV per improvement resulting in
Generated month $200M annual revenue impact

2014 Merkle Inc. | Confidential 14

 At the core of all of this opportunity is the Connected Consumer View

Life Events
The 4Cs of Consumer Data
Demographics Call center

Comprehensive brings together complete

LTV Segment Site view of the customer across all relationship
dimensions and channels

Product Meetings Clean based the most accurate customer

record that has been linked across disparate IDs,
householded, hygiened, and matched on an
ongoing basis

Compliant created, stored, and utilized based

on a comprehensive view of the latest consumer
Display Mobile privacy legislation and guidelines

Connected managed in highly usable

Print Social
audience segments and made available in real-
time (where needed) to all media and channels
for execution
DM &EM TV/Vid
Search eo

2014 Merkle Inc. | Confidential 15

 Sounds great right? Yeah well, there are a few little challenges

Bringing together a singular consumer view in a world with data and identity silos too
numerous to mention
Making that view available to drive decisioning and execution across an incredibly
complex web of adtech and audience platforms

Allowing perfect to be the enemy of good is the tendency (especially in digital)

Doing all of this in a way that maintains the confidence of the consumer and is
compliant with numerous legal and regulatory entities

And every time you think might have this nailedit changesfast

2014 Merkle Inc. | Confidential 16

 Identity Management

Platform Data
Identity
Management
The management and
association of identity Audience Consumer
Management Privacy
attributes across all
channels and media. The
creation of a longitudinal
view of the experience a
consumer has with a
brand (the consumer
event stream).
Platform Platform
Enablers Execution

2014 Merkle Inc. | Confidential 17

 The Identity Map creates a singular master ID out of numerous channel and media specific
IDs across devices

Alias: MarketableDig
Handle: @MarketableTom
Name: Tom Malthus IP: 192.168.1.201
Address: 1001 Semblance Dr. Cookie: 49526F636B
DOB: 10.03.1965 Phone: 443.542.4000

2014 Merkle Inc. | Confidential 18

 The Consumer Event Stream pivots off the Identity Map to create the longitudinal view of all
interactions with that individual

DM Shown Display Ad Calls 800# Sent Email Clicks Branded Completes

Delivered 2/2/12 3:05pm Requests Info 2/2/12 5:05pm Paid Search Ad quote request
2/1/2012 and gives email Opens Email 2/6/12 9:00 pm on site
2/2/12 3:06 pm 2/2/12 9:30 pm 2/6/212 9:15
pm

Consumer Event Table

User ID Date Time Event ID Event Desc
1234 2/1/2012 DM437 DM Delivered
Event Meta Data
1234 2/2/2012 3:05 pm DI9076 Display Impression Event ID EM088
1234 2/2/2012 3:06 pm CC068 Inbound Call Center
A2346 Insurance you can
1234 2/2/2012 5:05 pm EM087 Sent Email Creative
count on
1234 2/2/2012 9:30 pm EM088 Opened Email
OI92365 $14/Mth for $25K
Offer
1234 2/2/2012 9:30 pm EM089 Clicked Email Coverage
1234 2/6/2012 9:00 pm PS674 Clicks Paid Search
Product P978 Term Life
1234 2/6/2012 9:15 pm Q8740 Completes Quote

2014 Merkle Inc. | Confidential 19

 Probably obvious: this is a pretty big challenge

Messy cookies

Third party cookies are dying

Constantly evolving platforms and IDs

Matching reference bases are evolving

Multiple levels of IDs and identification

confidence

And, needs to be real time

2014 Merkle Inc. | Confidential 20

 The very notion of the consumer ID has been transformed over the past 5 years

12 Main Street
Philadelphia, PA
0110010001001
10001 //asdohsd.asiudhscns/html
617-555-0728
John@doe.com Pinterest: jdoe
John@doe.com
0110010001001 JD@gmail.com
12 Main Street 617-555-0728
//asdohs.hhd.net 10001
Philadelphia, PA
617-555-0728 JDs iphone #JohnnyDoe
John@doe.com 12 Main Street 0110010001001
12 Main Street 12 Main Street 01100100010 Philadelphia, PA
10001 //asdohs.hhd.net
Philadelphia, PA Philadelphia, PA 617-555-0728 0110001 #JohnnyDoe

70s 80s 90s 00s Today/Tomorrow

Mailing address Phone number Email KLID, Abilitec Twitter ID
Cookie Cross Device ID
FBID
ADID
IDFA
cRID
AT&TID

2014 Merkle Inc. | Confidential 21

And some of the very audience platforms that are delivering AAS are, in fact, going to be a part
of this challenge

AdID Numerous
Facebook ID Twitter ID
disparate 3rd
party IDs
Audience
Platform
already at
scale on
network

Soon we will
see audience
extension off
network at Third Party Inventory
massive scale (exchange, ad network, etc.)

But access to this scale will be enabled in walled gardens

where each player will want advertisers to use a proprietary ID Marketer
great within one networkbut what about the advertisers single 1st Party ID
view of the customer?
 The change in consumer behaviors and consumption has forced a change in
the notion of Identity Management
Hey what do
I wonder if you say we open
dumping her on some wine and
facebook is talk mobile
considered DSPs
Time spent in mobile apps passe
surpassed time spent on
desktop in January 2014

Cross device is the norm

with the average
American owning 4
devices

Source: Comscore & eMarketer

The Platform Marketer at home
2014 Merkle Inc. | Confidential 23
 Ultimately what we need to stitch together is an identity graph at the first party level across
physical and digital IDs spanning multiple devices

Terrestrial
Identity

Device
Identity

Digital
Identity

2014 Merkle Inc. | Confidential 24

 All of this enabled by a purpose built Identity Management Engine

Onboarding
Deterministic identity rules
engine to manage identity
associations Finds CRM audiences
in the digital world

Consumer Data Integration Digital Data Integration

Identify Identify
Governance Governance

Reference Reference
Base Terrestrial Base Device/Digital
Identity Identity
Associations Associations
Device Identification Cross Device

Probabilistic device Device graphs to associate

identification engine to recognize cross-device events
device reoccurrence

2014 Merkle Inc. | Confidential 25

 Which sits at the base of an integrated marketing technology stack

Audience
Audience Platforms
Platforms

Media Execution Channel Execution

Media Execution Channel Execution
MRM
SFA/Contact
MRM DSP
DSP Ad
Ad Serving
Serving Search
Search Messaging
Messaging Site
Site Mobile
Mobile SFA/Contact Center
Center

Web Integration
Integration Tag
Content Management

Web Services APIs

APIs
Management

Services Tag Management

Management
Content
Workflow

Analytics DMP Decision Management

Analytics DMP Decision
Workflow

Connected Audience Business Rules

Management
Connected Attribution Audience Management Business Rules Engine
Attribution
Forecasting/Simulati Management Engine
Personalization
Forecasting/Simulation RT DataData
Real-Time Transfer
Transfer Personalization Engine
on Engine
Decisioning
Business
Business Intelligence
Intelligence Syndication
Syndication Decisioning Algorithms
Algorithms
Management

Identity Management
Campaign
Management

Identity Management Event

Campaign

Onboarding
Onboarding CDI/DDI
CDI/DDI Event Management
Management
Marketing Database
Marketing Database
Customer 360
Customer 360 Preference Center
Preference Center Event
Event Stream
Stream

2014 Merkle Inc. | Confidential 26

 Audience Management

Platform Data
Identity
Management
Audience management is
the discipline of Audience Consumer
Management Privacy
identifying, sizing, and
tracking individual
engagement with the
purpose of driving higher
customer value

Platform Platform
Enablers Execution

2014 Merkle Inc. | Confidential 27

 Audience Management is the bridge between identity management and media and
channel optimization

Identity Audience Media or Channel

Management Management Optimization

Device

Segmentation Models Time Offer

Personalization

Behavioral Contact Product Treatment

Triggers Strategy
Message
,

2014 Merkle Inc. | Confidential 28

 Audience management begins with a rich, actionable enterprise level segmentation
of the prospect and customer marketplace

Primary Research Mapping

View of US Tie to each individuals in US
Attitudes, Behaviors,
Psychographics
Very Rich Actionable Demographics
Customer Behaviors
Brand Relationships, and Sentiment Syndicated Data

Movers & Family Mature

Passives Loners
Shakers Matters Planners
% Makeup of United 34% 22% 27% 10% 7%
States (50% interested in LI) (60% interested in LI) (41% interested in LI) (41% interested in LI) (24% interested in LI)

Demographics Younger Young, middle age Mature Middle age Mature

Upper-mid income Mid income Upper income Mid income Lower-mid income
Skews male Mostly female Skews male Mostly female Male and female

Attitudes Early adopters, Use social media, but Recognize value of Late adopters Use social media
technical not otherwise insurance
technical Risk averse Mistrustful of financial
Driven, risk taker Confident about institutions
Dont know where to financial matters Not primary decision
Price sensitive begin makers Least interest in LI
Least price sensitive
Price sensitive Not thinking about LI

2014 Merkle Inc. | Confidential 29

 However, the divide between segmentation, segment strategies, and actual
decision making and execution has to be closed down

Segmentation & Financial Marketing

Customer Strategy Management Execution

Media Execution
(SEM, DSP, etc)
Behavioral Segment Attribution

Content Management
Budgeting/
Value Segment
Planning

Call Center

2014 Merkle Inc. | Confidential 30

 The Platform Marketer leverages the capabilities in the DMP to monetize audiences
in digital media and experience personalization

Data Inputs Outputs/Action

1st Party PII Reporting and Insights

Conversion events Media & site performance
Behavioral data Audience insights
IP data
CRM data (offline & online)

1st Party Anonymous DMP Toolset Media Optimization

Search data Real-time bidding
Mobile data Visualization Creative decisioning
Email data Landing page optimization
Connected and addressable TV data Audience Mgmt

Syndication

3rd Party Syndication

Demographic, behavioral and purchase Syndicate audiences to DSPs and
offline & online data from data vendors Site Personalization
(BlueKai, Execelate, etc.)

2014 Merkle Inc. | Confidential 31

 Consumer Privacy and Compliance

Platform Data
Identity
Management
Consumer Privacy:
Audience Consumer
Finding balance between Management Privacy

business needs and privacy

expectations

Platform Platform
Enablers Execution

2014 Merkle Inc. | Confidential 32

 All of this data creates a lot of opportunity for brands but obviously also creates
angst both real and perceived

59%
saying that concern has
risen in the last 12 months
48%
Consumer avoiding at least one type
of online service/platform
Data 64%
express concern about
websites tracking their
behavior
70%
respondents believe businesses arent
87% transparent about how their information
Believe adequate safeguards are
is used, 68% say there is not enough
not in place to protect their
transparency around what is being
personal information
done with their information

2014 Merkle Inc. | Confidential 33

 The Platform Marketer is able to navigate the complex, evolving web of internet
advertising guidelines and regulatory compliance as well as consumer perception

State
Privacy
Policy Laws

CAN-
SPAM

COPPA

Federal Trade
Commission
GLB

FCRA

Consumer Financial
Protection Bureau

2014 Merkle Inc. | Confidential 34

 So in summary

Platform data is about the 4Cs (comprehensive, clean, compliant, connected)

Perfect is the enemy of good
ID management sets you up for Audience Management and execution
Privacy is an exercise in an integrated view of industry, guidelines, and consumer
expectations
Be ready for this to keep changing faster than you can keep up

2014 Merkle Inc. | Confidential 35

 Platform Data Breakout Sessions

Identity Management Miramar II/III

Craig Shirk, Matt Mobley

Audience Management Ballroom

Rick Heffernan, Peter Vandre

Consumer Privacy & Compliance Miramar I

Bennie Smith

2014 Merkle Inc. | Confidential 36

 Thank You!

2014 Merkle Inc. | Confidential 37