DataXu's Privacy-Safe Approach Optimizes Digital Advertising Performance Without Tracking Consumer Behavior

BOSTON, March 9, 2011 /PRNewswire/ -- DataXu - (www.dataxu.com) - the only cross-channel Demand Side Platform (DSP) for digital advertisers - today highlighted its breakthrough, privacysafe approach to digital advertising that optimizes campaign performance through "audience discovery," without tracking consumer behavior. The company today also issued industry guidelines for advertisers, agencies, and trading desks to "future proof" their digital strategies for online consumer privacy changes.

The DX2 platform discovers new audiences at scale by using impression-level decisioning across multiple parameters to build a data model that defines exactly how consumers behave in relation to a specific campaign. This unique algorithm, which DataXu calls a "Brand Genome," decides who, what, where, and when ad placements will generate the best performance.  

These algorithms do not rely on user-level tracking, yet still achieve performance that is comparable to or better than more invasive targeting techniques. The real-time process is continuously optimized, maximizing consumer response post-ad exposure. The approach avoids the use of tracking cookies and consumer behavioral profiles, using cookies instead only to count ad placements and measure effectiveness.

"With the recent emphasis on online consumer privacy in the media and in regulatory discussions, many advertisers are concerned that they'll be required to change their strategies," stated Mike Baker, CEO at DataXu. "There is a misconception that DSPs only do audience buying, which is synonymous with tracking, but advanced DSPs do much more. Advertisers need to adopt a long-term, scalable approach to making display advertising more efficient, and that's what DX2 enables."

Using cookies to anonymously track online behavior has been an effective approach in enabling digital advertisers to offer more personalized advertising. However, according to Baker, with looming uncertainty regarding future regulatory requirements, advertisers will want to diversify their approach to ensure continued scalability and become less reliant on behavioral targeting. DataXu's "audience discovery" approach provides an ideal alternative to using third-party audience segments or cookie lists and is the cornerstone of new industry guidelines to "future proof" digital strategies.

DataXu's guidelines will help advertisers proactively shape their data-driven digital marketing strategies to maximize results and protect their brand in the coming years. These guidelines identify safe alternatives that avoid online behavioral advertising (OBA), and shift away from cookie-oriented media buying. Interested advertisers, agencies, trading desks, and others in the digital advertising ecosystem can access the new guidelines here.

Effective Prospecting without Third-Party Data

DX2's "audience discovery" approach uses only the information that is publicly available from actual campaign results and a user's interaction with the advertiser. In this way, the system provides several unique benefits to brands and agencies engaged in programmatic buying through ad exchanges:

• Reduces cost of media

• Achieves better scale and performance

• Supports cross-channel campaigns

• Steers clear of consumer privacy concerns and from questionable third-party practices

About DataXu

Headquartered in Boston, Massachusetts, DataXu provides the only Demand Side Platform for online, mobile and video advertisers. This powerful technology increases digital campaign performance, improves operational efficiencies and delivers unique consumer insights to advertisers. DataXu's executive team unites leading executives in digital media with MIT technologists. The private company is backed by Atlas Venture, Flybridge Capital Partners and Menlo Ventures. For more information, visit www.dataxu.com or follow us on Twitter at @dataxu.

SOURCE DataXu