Acxiom & Thunder Team Up to Bring Precision in Targeting Ads

In a bid to deliver people-based marketing, Acxiom Corporation 's ACXM unit LiveRamp recently partnered Thunder Experience Cloud. Notably, this individual-based initiative is a significant improvement over cookie-based marketing.

The companies have collaborated to enhance advertising to target people better with a calculated and customized methodology.

LiveRamp's IdentityLink service will enable customers to get a comprehensive profile of the consumer leveraging data from both offline and digital platforms. Meanwhile, Thunder provides people-based ad server where users can personalize and measure ads on a dynamic basis.

The fact that the two platforms complement each other enables the marketers to create ads with precision, as they leverage people-based IDs compliant with data privacy regulations.

The new initiative is a significant improvement over the traditional methods of using Cookie IDs or various "third party measurement" platforms which might not be secure.

The consumers will also benefit from more relatable engagement from brands, consequently aiding them in search of required solutions.

In the words of Paul Turner, GM of Technology at LiveRamp, "This partnership is truly changing the standards of measurement and relevance in advertising."

Targeting an Individual over the Entire Family

The shared IP addresses aided Thunder to determine whether a smartphone, tablet, or laptop was owned by a same group of individuals. LiveRamp's identity graph having around 300 million profiles globally is enabling Thunder's Experience Cloud to assess if the device is owned by the same entity.

The partnership is a win-win situation for both the companies in the sense that Thunder will be able to zero in on "individual" marketing over "family or household" based ads.

What Investors Should Know

Talking about share price performance, Acxiom's stock has returned 80.7% year to date, outperforming the industry 's rally of 15.8%. The stock has also fared better than the S&P 500 index's rise of 10.3%.

The outperformance can primarily be attributed to the company's initiatives to enhance LiveRamp platform. Further, the divestiture of Acxiom Marketing Solutions ("AMS") business to Interpublic Group IPG has kept the investors optimistic.

The increasing use of smartphones and internet has fueled the demand for digital advertising. Per eMarketer report, the digital ad spending is expected to reach $273.29 billion in 2018 and $357.31 billion by 2020 from $232.27 billion in 2017.

Per Reportbuyer data, the contextual advertising market is projected to reach $328.1 billion by 2024 at a CAGR of 17.4% over 2017. Notably, contextual advertising includes location and activity-based tracking of consumer data build around online browsing history.

We believe this partnership will bolster adoption of LiveRamp services. Further, Acxiom's frequent product innovations and partnerships are anticipated to enhance location-based targeting platforms for digital campaigns, consequently boosting the company's top-line.

Zacks Rank & Key Picks

Acxiom carries a Zacks Rank #3 (Hold). Inc CRM and KLA-Tencor Corporation KLAC are a couple of stocks worth considering, in the same sector. Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Salesforce and KLA-Tencor have a long-term earnings growth rate of 25% and 9.8%, respectively.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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