SOURCE: ChoiceStream

ChoiceStream

November 19, 2014 10:00 ET

As the Holidays Approach, Programmatic DSP Announces Dips and Rises in Consumer Segment Costs

Minivans, Health, and Toys on the Rise, While Gift Giving Drops

BOSTON, MA--(Marketwired - Nov 19, 2014) - ChoiceStream, a leader in programmatic advertising, today released its monthly Audience Cost Calendar. The company's machine-learning system monitors the cost index of thousands of third-party consumer data segments, which analysts consolidate to 315 super segments to track changes in rank. ChoiceStream illustrates findings in a monthly infographic.

Holiday-related segments
Despite the fact that the holiday season approaches, the gift-giving segment continues to decrease in cost-based rank, dropping for the fifth month in a row. While the toy and retail shopping segments have increased in rank since May, this dip in gift giving is significant in comparison to previous years.

An eMarketer report uncovered that retailers in 2014 are making conservative inventory choices; in the report, a research analyst states, "we're seeing very, very lean levels of inventory going into the back half [of the year]." Because of this, retailers who do take advantage of the low demand and prices for display digital media will have a greater share of voice in e-commerce advertising to consumers.

Auto
Minivan segments have been rising in rank since April. This correlates with sales trends within the auto industry; in a recent Forbes article, a Kelley Blue Book editor states that this year saw an increased interest in minivans. Interestingly, the focus of the article -- the 2015 Kia Sedona -- coincides with ChoiceStream's consumer segment cost findings. The Kia segment rose 41 percent in cost index last month.

"Chrysler and Jeep segments are also increasing in rank," says Bill Guild, VP of Marketing at ChoiceStream. "Our data shows that advertising costs for programmatic campaigns have been on the rise since March -- with Jeep always a bit more expensive than Chrysler. Advertisers can either manually refine targeting or use automated optimization systems to take advantage of this slight difference in price to reach consumers interested in these car types."

Health
In both August and October, the General Health segment rose in rank -- a trend that differed from other months. A spike in interest could be due to the popularity of the ALS Ice Bucket Challenge in August, as well as the recent news coverage and public concern about the Ebola virus across the US. It is likely that consumers searched these topics to be well informed and stay abreast of any updates, causing their placement in this health segment.

"We've noticed a correlation between news trends and bloated segments causing unusual fluctuations in cost," says Guild. "Whether it's an incident in the news or a hot topic, people search the Internet and can be miscategorized into an intender segment. It's important for marketers to deploy machine-learning systems to identify discrepancies and adjust targeting accordingly. Machines aren't misled by the names of segments and thus can protect ad spend and keep media buys on impressions that reach the eyes of the right consumers."

In addition to retail, autos, and health, ChoiceStream's November infographic observes trends in real-time bidding (RTB) costs for other consumer segments. Advertisers that run digital advertising campaigns that target consumers in Home & Garden, Contractors & Construction, and/or Pet segments will benefit from this month's findings.

Methodology
ChoiceStream reports on 315 consumer super-segments. Reported segments are rollups of similar segments from multiple data providers including ChoiceStream's Pollshare. Each segment receives a calculated index with the monthly average price set at 100. An index of 110 indicates that the segment traded 10 percent higher than the overall average that month. ChoiceStream calculates the audience rankings by reporting the cheapest segment (also referred to as the lowest in price index) as number one in rank, to the most expensive (315).

About ChoiceStream
ChoiceStream delivers top-of-plan results in digital advertising for branding and direct response campaigns by combining real-time bidding with the most accurate and effective real-time optimization. Concierge-level, full services include creative development, audience discovery, campaign optimization, complete transparency, and custom insights. With an extensive first and third party data network enhanced by proprietary data, ChoiceStream can target and convert the most valuable consumers in real-time. For more information on ChoiceStream, please visit www.ChoiceStream.com.

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