Turn: Forrester The Total Economic Impact Of Turn April 2013

A Forrester Total Economic Impact™ Study Prepared For Turn
The Total Economic Impact Of Turn Audience Suite
and Campaign Suite
Project Director: Michael Speyer
April 2013

Forrester Consulting
The Total Economic Impact Of Turn Audience Suite and Campaign Suite
Page 1
TABLE OF CONTENTS
Executive Summary.................................................................................................................................................................................2
Factors Affecting Benefits And Costs.............................................................................................................................................3
Disclosures...........................................................................................................................................................................................4
TEI Framework And Methodology......................................................................................................................................................5
Analysis......................................................................................................................................................................................................7
Interview Highlights..........................................................................................................................................................................7
Costs....................................................................................................................................................................................................10
Benefits...............................................................................................................................................................................................13
Flexibility............................................................................................................................................................................................14
Risk......................................................................................................................................................................................................15
Financial Summary................................................................................................................................................................................17
Turn Audience Suite and Campaign Suite: Overview....................................................................................................................18
Appendix A: Total Economic Impact™ Overview ...........................................................................................................................19
Appendix B: Glossary............................................................................................................................................................................20
Appendix C: Endnotes..........................................................................................................................................................................21
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Executive Summary
In April 2013, Turn commissioned Forrester Consulting to examine the total economic impact and potential return on
investment (ROI) enterprises may realize by deploying Turn Audience Suite and Turn Campaign Suite. This platform
includes two web applications: Audience Suite, an enterprise data management platform, and Campaign Suite, a digital
media buying platform for video, mobile, social and display advertising. The purpose of this study is to provide readers
with a framework to evaluate the potential financial impact of utilizing both Audience Suite and Campaign Suite on
their organizations.
Forrester interviewed one company for this study. The company runs a website that is used by consumers to do
research into high-value product purchases. The company can track consumers around the web after they leave the
company’s website (i.e. go “offsite”) and serve advertisements to these consumers at different destination sites. The
company monetizes this by selling a range of digital marketing services to product manufacturers and distributors. This
study focuses specifically on the company’s off-site behavioral-targeted advertising service. The consumer data that the
company gathers from its website serves as the basis for this service, and Audience Suite and Campaign Suite are the
applications that power the service. The interviewed company has been using these web applications for more than
three years.
Based on our analysis, the company experienced the risk-adjusted ROI, costs, and benefits shown in Table 1.
Table 1
Composite Organization Three-Year Risk-Adjusted ROI1
ROI Total benefits
(PV)
Total costs
(PV)
Net present
value
49.7% $21,947,207 ($14,663,114) $7,284,093
Source: Forrester Research, Inc.
 Benefits:
o Ability to identify and create new audience segments. Using Audience Suite, the company is able to create
new audience segmentations that it was not able to do previously. This has enabled the company to create
new product offers based on these segments, which has contributed to the company’s top-line growth.
Examples of these kinds of segments are “Gadget geeks” or “Hispanic”.
o Increased potential number of ad impressions served. Using Campaign Suite and the ad exchanges Turn
connects to, the potential number of impressions that the company can serve by finding its own visitors on
external sites increased from 250,000 into the billions, which has contributed to top-line growth.
o Increased number of ad campaigns it can run. Before engaging with Turn, the company sold and executed
100 ad campaigns for its customers. Two years later, the company executed 287 campaigns and is on track to

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deliver 350 to 400 campaigns in its third year. This represents a 187% growth in campaign volume over a two
year period. The company was able to increase the number of ad campaigns because it was able to offer more
audience segments to its customers and effectively reach them.
o Improved click-through rates. The company found that average click-through on the campaigns it has run
increased between 25% and 35% over an 18 month to 36 month period when measured against its internal
benchmark.
o Increased cost per action (CPA) efficiency. The company believes that the quality of its data allows it to
deliver CPAs that are more efficient than its competitors’. This has directly contributed to competitive
advantage and increased share of the behavioral-targeted ad market.
o Increased agility to respond to customer needs. The dynamic nature of Audience Suite and Campaign
Suite allows the company to easily accommodate and respond to how each client executes its behavioral-
targeted campaigns, because each client has unique requirements that continue to evolve over time.
o Improved campaign reporting and analysis. The reporting tools of Audience Suite and Campaign Suite
allow for sophisticated data analysis, which has strengthened the feedback that the company can provide to
its data-hungry clients, and has enabled the company to tune and better understand performance across
campaigns.
 Costs:
o Service fees paid to Turn. These fees cover the use of Audience Suite and Campaign Suite, it’s managed
services, and all ad impression purchases.
o Labor costs. These are the salaries paid to employees that use Audience Suite and Campaign Suite and
manage the Turn relationship.
Factors Affecting Benefits And Costs
Table 1 illustrates the risk-adjusted financial results that were achieved by the interviewed company. The risk-adjusted
values take into account any potential uncertainty or variance that exists in estimating the costs and benefits, which
produces more conservative estimates. The following factors may affect the financial results that an organization may
experience:
 The service fees paid to Turn can vary from month to month, based on platform usage, number of ads purchased
and served, use of managed services, and other factors.
 Improvements in click-through rates and CPA efficiency are largely driven by Turn algorithms, but they also
depend on each marketer’s ability to measure the relevant KPIs and apply them to the Turn platform effectively.
 The ability to identify useful behavioral target audience segments will depend on the quality of each company’s
data and the use of external data sources to augment that data.

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Disclosures
The reader should be aware of the following:
 The study is commissioned by Turn and delivered by the Forrester Consulting group.
 Forrester makes no assumptions as to the potential return on investment that other organizations will receive.
Forrester strongly advises that readers should use their own estimates within the framework provided in the
report to determine the appropriateness of an investment in Audience Suite and Campaign Suite.
 Turn reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and
its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning
of the study.
 The customer names for the interviews were provided by Turn.

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TEI Framework And Methodology
Introduction
From the information provided in the interviews, Forrester has constructed a Total Economic Impact™ framework for
those organizations considering implementing Turn Audience Suite and Turn Campaign Suite. Audience Suite is the
enterprise data management platform and Campaign Suite is the digital media buying platform for video, mobile,
social, and display advertising. The objective of the framework is to identify the cost, benefit, flexibility, and risk factors
that affect the investment decision.
Approach And Methodology
Forrester took a multistep approach to evaluate the impact that Audience Suite and Campaign Suite can have on an
organization (see Figure 2). Specifically, we:
 Interviewed Turn marketing/sales/consulting personnel and Forrester analysts to gather data relative to Audience
Suite and Campaign Suite and the marketplace for data management platforms (DMPs) and demand side
platforms (DSPs) in general.
 Interviewed one company currently using Audience Suite and Campaign Suite to obtain data with respect to
costs, benefits, and risks.
 Constructed a financial model representative of the interviews using the TEI methodology. The financial model is
populated with the cost and benefit data obtained from the interviews as applied to the composite organization.
Figure 2
TEI Approach
Forrester employed four fundamental elements of TEI in modeling Audience Suite and Campaign Suite:
1. Costs.
2. Benefits to the entire organization.
3. Flexibility.
4. Risk.
Constructfinancial
modelusing TEI
framework
Write case
study
Perform due
diligence
Conduct
customer
interviews

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Given the increasing sophistication that enterprises have regarding ROI analyses related to IT investments, Forrester’s
TEI methodology serves the purpose of providing a complete picture of the total economic impact of purchase
decisions. Please see Appendix A for additional information on the TEI methodology.

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Analysis
Interview Highlights
Forrester interviewed a company that provides an online service that is used by consumers to do research into high-
value products before making a purchase decision. The company offers a range of digital marketing services that it sells
to its customers (product manufacturers and distributors). The consumer data that it gathers from its website serves as
the basis for the digital marketing services that it offers.
We interviewed the senior publishing manager, whose role is to manage his company’s off-site behavioral-targeted
advertising business. Audience Suite and Campaign Suite power this service. The functions that the service performs
include:
 Creating audience segmentations based on behavioral, demographic and lifestyle data, which allows the
company’s customers to target unique segments, such as “Gadget geeks” or “Hispanic.”
 Tracking consumers around the Web after they leave the company’s website (i.e., go “off-site”) so that ads can be
served to the prospect at different destination sites.
 Purchasing and serving digital ad impressions to consumers on behalf of its customers.
Challenges Before Using Turn
Prior to engaging with Turn, the company was limited in the volume and types of consumer data that it gathered and
the number of ads that it could serve. Its prior platform could reach only 5% of its customers’ potential buyers, limiting
the reach of the ad campaigns it could run. For example, if a customer wished to run a campaign that targeted a specific
behavioral profile in a specific metro area, the company would not be able to deliver the required number of ad
impressions. Data limitations restricted its ability to create or identify new behavioral audience segments that its
customers wanted. That platform was a fundamental inhibitor to product expansion and overall business growth.
In order to diversify and grow, the company realized that it needed to change its underlying technology platform. In
response to its own business needs, broader industry changes, and shifts in its client marketing strategies, the company
decided to pursue a DMP model for data consolidation and market segmentation. At the same time it decided to adopt
a DSP model to execute digital ad campaigns for its customers.
DSP And DMP Selection Process
In addition to the typical features and functionality that are found in DMPs and DSPs, the company had three criteria
that the platforms needed to satisfy:
 Have a strong account/campaign managed-service layer. At the time of product selection (late 2009), the
company had a team of three people managing approximately 100 campaigns annually. To scale up the number
of campaigns it could manage without increasing its staff overhead, the company wanted a DSP vendor that
offered sophisticated audience and data management services.

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 Have audience creation and optimization technology that would allow it to increase its sophistication in
behavioral segmentation.
 Offer a wide breadth of ad exchanges that the DSP could connect to so that it serves ads to as large an audience as
possible.
The company went through a lengthy vetting program before adopting Audience Suite and Campaign Suite. The
vetting process included extensive product testing and running A/B comparisons between the contenders.
Using Turn Audience Suite And Turn Campaign Suite
Audience Suite and Campaign Suite are the web applications that power the company’s behavioral-targeted marketing
services that it provides to its customers.
Audience Suite gets audience data from the company’s own website, which is overlaid with demographic, lifestyle, and
behavioral data from the Turn ecosystem of integrated data partners. These combined data sources are used for all
audience segmentation work that underlies an ad campaign. Audience segments, created in Audience Suite are fed
directly into Campaign Suite for campaign execution.
The company uses a combination of its own staff and managed services from Turn for campaign execution. Turn
provides day-to-day campaign optimization, management, and maintenance services. The company has created a set of
repeatable business processes for interacting with Turn. The company described its working relationship as being very
close, with daily discussions around campaign performance and management. The company has the option of in-
sourcing the work that Turn does, which it estimates would require hiring three additional full-time staff.
Improving Key Performance Indicators Drives The Company’s Financial Success
“We have seen click-through rate improvement the longer we have worked with Turn.” - Senior publishing
manager
The ad campaigns that the company runs on behalf of its customers fall into two basic categories, which have different
key performance indicators (KPIs):
 Campaigns that are optimized for click-through rate. In these campaigns, the volume of ads delivered and
click-through rate percentage are examined. Click-through rates are optimized based on customer feedback, and
the company relies on Turn proprietary algorithms to perform the optimization.
 Campaigns that are optimized for cost per action (CPA). These campaigns require placing a tracking pixel on
the customer’s website. These campaigns are optimized around hitting a specified target CPA, such as $50 for
directions to a store. Using the tracking pixel allows for real-time visibility into campaign performance.
According to the interviewee, Turn proprietary algorithms perform campaign optimization in real time, and
“optimization happens automatically and campaign performance is always better.” The tracking pixel also allows
for much richer data collection compared with campaigns that don’t use a tracking pixel (described to Forrester
as “100 data points versus 12”), which provided deeper insight into campaign performance.

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The overall financial success of the company’s behavioral targeted ad business fundamentally depends on improving
click-through rate or optimizing CPA. We learned that the behavioral-targeted ad business is an incremental strategy;
that is, customers will purchase services from the company for a short period, such as one month, and will make a
decision to continue spending based on that month’s performance. The ability to optimize a campaign which is in
process is intimately tied to the Turn platform, which influences the company’s success.
Qualitative Benefits Of Using Audience Suite and Campaign Suite
Since using Audience Suite and Campaign Suite, the company has experienced a broad range of benefits. These benefits
include:
 Ability to identify new market segments. Using Audience Suite, the company is able to create new audience
segments that it was not able to do previously. Examples of this are “soccer moms who live in Atlanta that are
shopping for product x” or “Hispanics between the ages of 20 and 30 years.” This has enabled the company to
create new product offers based on these segments, which has contributed to the company’s top-line growth.
 Increased potential number of impressions served. Using Campaign Suite and the real-time bidded (RTB) ad
exchanges that Turn connects to, the potential number of impressions that the company can serve increased from
250,000 into the billions. This has allowed the company to exponentially increase campaign reach, which has
contributed to top-line growth.
 Increased number of ad campaigns it can run. In 2009, before engaging with Turn, the company was able to
execute 100 ad campaigns for its customers. In 2012, the company executed 287 campaigns and is on track to
deliver 350 to 400 campaigns in 2013. During this period, it increased its headcount by two full-time employees.
 Improved click-through rates. The company found that average click-through increased between 25% and 35%
over the past 18 to 36 months, when measured against its internal benchmark. According to the interviewee, “The
more campaigns that are run, the more the system can learn, which makes future campaigns run better.”
 More-efficient CPA. The company believes that the quality of its data allows it to deliver CPAs that are more
efficient than its competitors’. This has directly contributed to competitive advantage and increased share of the
behavioral-targeted ad market. In one example, a new client gave the company a single chance valued at $100,000
to work on its behavioral-targeted campaign. The efficiency of the CPA led to a $1 million full-year engagement.
 Increased agility to respond to customer needs. The dynamic nature of Audience Suite and Campaign Suite
allows the company to easily accommodate and respond to how each client executes its behavioral-targeted
campaigns, because each client utilizes unique KPIs.
 Improved campaign reporting and analysis. Turn real-time applications provide reporting tools for
sophisticated data analysis, which has strengthened the feedback that the company can provide to its data-hungry
clients. The company believes that the strength and quality of its reporting are competitive differentiators that
allows it to compete more effectively.
Framework Assumptions
Table 2 provides the model assumptions that Forrester used in this analysis.

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Table 2
Model Assumptions
Ref. Metric Calculation Value
A1 Entry-level annual salary $35,000
A2 Salesperson total annual salary $55,000
A3 Salary overhead multiplier 1.2
The discount rate used in the PV and NPV calculations is 10% and time horizon used for the financial modeling is three
years. Organizations typically use discount rates between 8% and 16% based on their current environment. Readers are
urged to consult with their respective company’s finance department to determine the most appropriate discount rate
to use within their own organizations.
Costs
We learned that the costs the company incurred to deploy and operate Audience Suite and Campaign Suite were:
 Monthly service fees paid to Turn.
 Incremental labor costs as a result of business growth.
No specific startup costs such as data conversion and cleaning or user training were incurred.
Service Fees Paid To Turn
The monthly service fees paid to turn cover the following:
 Platform fees for use of Turn Audience Suite.
 Service fees for Turn Campaign Suite and managed services.
 Costs for purchasing ad impressions.
The fees the company pays vary with the amount of media purchased, managed services delivered, and various other
factors. The company’ monthly platform fees typically average between $50,000 and $60,000, but may be as high as
$150,000 when very large campaigns are being run. Ad impressions are purchased from the ad exchanges on a CPM
basis at the final auction price per impression.
For this analysis, we assume average monthly fees of between $50,000 and $60,000, depending on business volume. We
also assume additional ad hoc fees of $30,000 annually, for periods of higher campaign volume. We discount the initial
year’s expense by five-twelfths to reflect the partial year’s engagement with Turn. The company pays an average $2

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CPM for ad impressions. The company’s total three-year costs are of $15.5 million (see Table 3). Forrester encourages
readers to consult with Turn to determine what their fees would be, as these can be highly variable depending on the
products and services purchased, and impression volume.
Table 3
Service Fees Paid To Turn
Ref. Metric Calculation Initial Year 1 Year 2 Year 3 Total
B1
Monthly platform fee
paid to Turn
($20,833) ($50,000) ($55,000) ($60,000)
B2
Annual platform paid to
Turn
B1*12 ($250,000) ($600,000) ($660,000) ($720,000)
B3
Ad hoc expenses for
large campaigns
($15,000) ($30,000) ($40,000) ($60,000)
B4 Costs for ad impressions (1,500,000 (3,120,000) (3,300,000) (5,250,000
Bt Service fees paid to Turn B2+B3+B4 ($1,765,000 ($3,750,000) ($4,000,000) ($6,030,000)
Bto Total (original) ($1,765,000) ($3,750,000) ($4,000,000) ($6,030,000) ($15,545,000)

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Labor Costs
Over the three years of working with Turn, the interviewed company experienced incremental business growth. In
addition to its existing employees, the company hired two additional employees to manage this additional business. For
this analysis, we assume an associate employee annual salary of $35,000 and an account manager salary level of $55,000.
We also assume that new employees were hired at the beginning of Year 2. Assuming a salary overhead of 20%, the total
labor expense over the 3 year period is $728,500 (see Table 4). Note that that the initial-year salaries are discounted by
five-twelfths to reflect the partial year that Turn was used.
Table 4
Labor Costs
C1
Number of existing
associates
2 2 2 2
C2 Number of new associates 1 1
C3
Associate fully loaded
salary
A1*A3 ($42,000) ($42,000) ($42,000) ($42,000)
C4 Subtotal: associate salaries C3*(C1+C2) ($35,000) ($84,000) ($126,000) ($126,000)
C5
Number of existing
account managers
1 1 1 1
C6
Number of new account
managers
1 1
C7
Salesperson fully loaded
compensation
A2*A3 ($66,000) ($66,000) ($66,000) ($66,000)
C8 Subtotal: sales salaries C7*(C5+C6) ($27,500) ($66,000) ($132,000) ($132,000)
Ct Labor costs C4+C8 ($62,500) ($150,000) ($258,000) ($258,000)
Cto Total (original) ($62,500) ($150,000) ($258,000) ($258,000) ($728,500)

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Total Costs
The total costs incurred by the company are $16.2 million (see Table 5).
Table 5
Total Costs
Ref. Cost category Initial Year 1 Year 2 Year 3 Total
Bto Service fees paid to Turn ($1,765,000) ($3,750,000) ($4,000,000) ($6,030,000) ($15,545,000)
Cto Labor costs ($62,500) ($150,000) ($258,000) ($258,000) ($728,500)
Total costs (original) ($1,827,500) ($3,900,000) ($4,258,000) ($6,288,000) ($16,273,500)
Benefits
The company experienced numerous benefits after adopting Audience Suite and Campaign Suite, as described in the
Interview Highlights section. Two quantifiable benefits — improved click-through rates and increased CPA efficiency
— were fundamental to the company’s overall business growth.
Forrester notes that improved click-through rates and increased CPA efficiency are important to the company’s
customers or any company that may wish to use Audience Suite and Campaign Suite, because improvements in these
areas may result in greater efficiency of advertising spend.
Incremental Revenue Growth Attributable To Turn
The benefits described in the Interview Highlights section collectively contributed to the revenue growth that the
company experienced in its behavioral-targeted marketing business. Neither Forrester nor the company was able to
attribute a percentage of revenue growth to each specific benefit. Overall revenue was the only financially quantifiable
benefit that the company described to Forrester. The company attributes 80% of its revenue growth to Turn.
In the first five months of using Audience Suite and Campaign Suite, revenues were $4.5 million. By the second full year
of using Turn, revenues had grown to $8.2 million, and the company was projecting revenues of $10 million to $11
million by the end of the third year. The average revenues experienced by the company are shown in Table 6.

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Table 6
Incremental Revenues Attributable To Turn
D1 Revenues $4,500,000 $9,400,000 $8,200,000 $10,500,000
D2
Percentage revenues
attributable to Turn
80% 80% 80% 80% 80%
Dt
Incremental revenues
attributable to Turn
D1*D2 $3,600,000 $7,520,000 $6,560,000 $8,400,000
Dto Total (original) $3,600,000 $7,520,000 $6,560,000 $8,400,000 $26,080,000
Total Benefits
The total benefits are $26.1 million (see Table 7).
Table 7
Total Benefits
Ref. Benefit category Initial Year 1 Year 2 Year 3 Total
Dto
Incremental revenues attributable to
Turn
$3,600,000 $7,520,000 $6,560,000 $8,400,000 $26,080,000
Total benefits (original) $3,600,000 $7,520,000 $6,560,000 $8,400,000 $26,080,000
Flexibility
Flexibility, as defined by TEI, represents an investment in additional capacity or capability that could be turned into
business benefit for some future additional investment. This provides an organization with the “right” or the ability to
engage in future initiatives but not the obligation to do so. There are multiple scenarios in which a customer might
choose to implement Audience Suite and Campaign Suite and later realize additional uses and business opportunities.
Flexibility would also be quantified when evaluated as part of a specific project (see Appendix A).
The company anticipates that its use of Turn services will increase with business growth. The company had no concrete
plans to adopt any other Turn products or services.

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Risk
Forrester defines two types of risk associated with this analysis: implementation risk and impact risk. “Implementation
risk” is the risk that a proposed investment in Audience Suite and Campaign Suite may deviate from the original or
expected requirements, resulting in higher costs than anticipated. “Impact risk” refers to the risk that the business or
technology needs of the organization may not be met by the investment in Audience Suite and Campaign Suite,
resulting in lower overall total benefits. The greater the uncertainty, the wider the potential range of outcomes for cost
and benefit estimates.
Quantitatively capturing investment and impact risk by directly adjusting the financial estimates results in more
meaningful and accurate estimates and a more accurate projection of the ROI. In general, risks affect costs by raising
the original estimates, and they affect benefits by reducing the original estimates. The risk-adjusted numbers should be
taken as “realistic” expectations since they represent the expected values considering risk.
The following implementation risk that affects costs is identified as part of this analysis:
 The service fees paid to Turn can vary from month to month, based on platform usage, number of ad
impressions purchased and served, use of managed services, and other factors.
The following impact risks that affect benefits are identified as part of the analysis:
 Improvements in click-through rates and CPA efficiency are largely driven by Turn algorithms but also depend
on underlying data quality and each marketer’s ability to measure these KPIs and apply Turn technology
effectively.
 The ability to identify useful behavioral target audience segments will depend on the quality of each company’s
data and the use of external data sources to augment that data.
The company noted that its close working relationship with Turn and use of Turn’s managed services has been critical
to its success. Other organizations that wish to engage with Turn should factor this into their decision-making process.
Table 8 shows the values used to adjust for risk and uncertainty in the cost and benefit estimates. The TEI model uses a
triangular distribution method to calculate risk-adjusted values. To construct the distribution, it is necessary to first
estimate the low, most likely, and high values that could occur within the current environment. The risk-adjusted value
is the mean of the distribution of those points. Readers are urged to apply their own risk ranges based on their own
degree of confidence in the cost and benefit estimates.

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Table 8
Cost And Benefit Risk Adjustments
Costs Low
Most
likely
High Mean
Service fees paid to Turn 100% 100% 125% 108%
Labor costs 98% 100% 105% 101%
Benefits Low
Most
likely
High Mean
Incremental revenues attributable to Turn 92% 100% 105% 99%

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Financial Summary
The financial results calculated in the Costs and Benefits sections can be used to determine the return on investment,
net present value for the organization’s investment in Audience and Campaign suites. These are shown in Table 9
below.
Table 9
Cash Flow — Non-Risk-Adjusted
Cash flow — Original estimates
Initial Year 1 Year 2 Year 3 Total Present value
Costs ($1,827,500) ($3,900,000) ($4,258,000) ($6,288,000) ($16,273,500) ($13,616,230)
Benefits $3,600,000 $7,520,000 $6,560,000 $8,400,000 $26,080,000 $22,168,896
Net benefits $1,772,500 $3,620,000 $2,302,000 $2,112,000 $9,806,500 $8,552,665
ROI 62.8%
Table 10 below shows the risk-adjusted ROI and NPV values. These values are determined by applying the risk-
adjustment values from Table 9 in the Risk section to the cost and benefits numbers in Tables 5 and 7.
Table 10
Cash Flow — Risk-Adjusted
Cash flow — Risk-adjusted estimates
Initial Year 1 Year 2 Year 3 Total Present value
Costs ($1,969,325) ($4,201,500) ($4,580,580) ($6,772,980) ($17,524,385) ($14,663,114)
Benefits $3,564,000 $7,444,800 $6,494,400 $8,316,000 $25,819,200 $21,947,207
Net benefits $1,594,675 $3,243,300 $1,913,820 $1,543,020 $8,294,815 $7,284,093
ROI 49.7%

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Turn Audience Suite and Campaign Suite: Overview
Turn Audience Suite, is a data management web application that unifies all available customer data (online or offline,
first-party or third-party) to make it digitally meaningful. This allows for a more complete picture of a marketer's
audience groups and a better understanding of their motivations, which enables them to deliver a consistent, targeted
presence across channels and devices. They can also track their audience1s changing behaviors and attributes in real
time and continually refine their segmentation and their messaging accordingly.
Turn Campaign Suite, is a demand-side platform that connects a marketer to virtually every available online impression
across video, display, mobile, and social inventory sources, as well as to direct publisher sites. The Turn algorithms
combine this with real-time campaign data, thereby equipping a marketer with the tools to build and execute their
strategies, and to learn from the results. At the same time, Campaign Suite gives a marketer the ability to plan and
control their campaigns across multiple channels and direct publishers from a single dashboard.

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Appendix A: Total Economic Impact™ Overview
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology
decision-making processes and assists vendors in communicating the value proposition of their products and services
to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to
both senior management and other key business stakeholders.
The TEI methodology consists of four components to evaluate investment value: benefits, costs, risks, and flexibility.
Benefits
Benefits represent the value delivered to the user organization — IT and/or business units — by the proposed product
or project. Often product or project justification exercises focus just on IT cost and cost reduction, leaving little room to
analyze the effect of the technology on the entire organization. The TEI methodology and the resulting financial model
place equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of
the technology on the entire organization. Calculation of benefit estimates involves a clear dialogue with the user
organization to understand the specific value that is created. In addition, Forrester also requires that there be a clear line
of accountability established between the measurement and justification of benefit estimates after the project has been
completed. This ensures that benefit estimates tie back directly to the bottom line.
Costs
Costs represent the investment necessary to capture the value, or benefits, of the proposed project. IT or the business
units may incur costs in the form of fully burdened labor, subcontractors, or materials. Costs consider all the
investments and expenses necessary to deliver the proposed value. In addition, the cost category within TEI captures
any incremental costs over the existing environment for ongoing costs associated with the solution. All costs must be
tied to the benefits that are created.
Risk
Risk measures the uncertainty of benefit and cost estimates contained within the investment. Uncertainty is measured
in two ways: 1) the likelihood that the cost and benefit estimates will meet the original projections, and 2) the likelihood
that the estimates will be measured and tracked over time. TEI applies a probability density function known as
“triangular distribution” to the values entered. At minimum, three values are calculated to estimate the underlying
range around each cost and benefit.
Flexibility
Within the TEI methodology, direct benefits represent one part of the investment value. While direct benefits can
typically be the primary way to justify a project, Forrester believes that organizations should be able to measure the
strategic value of an investment. Flexibility represents the value that can be obtained for some future additional
investment building on top of the initial investment already made. For instance, an investment in an enterprisewide
upgrade of an office productivity suite can potentially increase standardization (to increase efficiency) and reduce
licensing costs. However, an embedded collaboration feature may translate to greater worker productivity if activated.
The collaboration can only be used with additional investment in training at some future point in time. However,

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having the ability to capture that benefit has a present value that can be estimated. The flexibility component of TEI
captures that value.
Appendix B: Glossary
Discount rate: The interest rate used in cash flow analysis to take into account the time value of money. Although the
Federal Reserve Bank sets a discount rate, companies often set a discount rate based on their business and investment
environment. Forrester assumes a yearly discount rate of 10% for this analysis. Organizations typically use discount
rates between 8% and 16% based on their current environment. Readers are urged to consult their respective
organization to determine the most appropriate discount rate to use in their own environment.
Net present value (NPV): The present or current value of (discounted) future net cash flows given an interest rate (the
discount rate). A positive project NPV normally indicates that the investment should be made, unless other projects
have higher NPVs.
Present value (PV): The present or current value of (discounted) cost and benefit estimates given at an interest rate
(the discount rate). The PV of costs and benefits feed into the total net present value of cash flows.
Payback period: The breakeven point for an investment. The point in time at which net benefits (benefits minus costs)
equal initial investment or cost.
Return on investment (ROI): A measure of a project’s expected return in percentage terms. ROI is calculated by
dividing net benefits (benefits minus costs) by costs.
A Note On Cash Flow Tables
The following is a note on the cash flow tables used in this study (see the example table below). The initial investment
column contains costs incurred at “time 0” or at the beginning of Year 1. Those costs are not discounted. All other cash
flows in Years 1 through 3 are discounted using the discount rate (shown in Framework Assumptions section) at the
end of the year. Present value (PV) calculations are calculated for each total cost and benefit estimate. Net present value
(NPV) calculations are not calculated until the summary tables and are the sum of the initial investment and the
discounted cash flows in each year.
Table [Example]
Example Table
Ref. Category Calculation Initial cost Year 1 Year 2 Year 3 Total

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Appendix C: Endnotes
1
Forrester risk-adjusts the summary financial metrics to take into account the potential uncertainty of the cost and
benefit estimates. For more information on Risk, please see page 15.

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