Last week, I attended the ThinkEquity conference "ThinkTomorrow ~ Today 2009," and presented on a panel entitled "Targeting 2.0", along with data and BT specialists from Quantcast, BlueKai and Google. We examined the evolution of targeting; where it has been, where it is going, as well as what best practices are today.
Having witnessed the discipline evolve over the last several years, I believe we have only begun to scratch the surface of what targeting can do. More and more online advertising is being targeted—the logical end result is ALL online advertising being targeted.
Truth is we have been engaged in targeted advertising for quite some time. Let's first look at search —its' success has been driven by two key factors: 1) it is easy to buy and measure, and 2) it is a clear signal around a consumer's immediate interest and/or intent. Indicators of interest and intent are the cornerstones of targeted advertising. How about contextual -- contextual placements are purchased as a proxy for audiences and therefore are a method of targeting. You are advertising within the context to reach the audience that would be interested in reading that content. This is certainly a valid way to reach an audience. That said, it can be inefficient in terms of cost and scale as premium contextual inventory is very limited.
Search and context provide clear signals about audiences. What other signals can be put to use? How will an advertiser reach their audience outside context and search as demand grows in a recovering economy? Targeting has proven essential in a tough economy based on efficiency. It will become even more essential in a robust economy to meet advertiser demand for key audience frequency and reach.
There are a variety of targeting types advertisers have at their disposal—behavioral, contextual, geographic, demographic, etc.—however, the most effective discipline is dependent on the goals of the campaign, and that will continue to be true years from now. Any form of targeting can be effective at the right price point, with the right message. The important thing is to know who you are targeting, how you are targeting them, to measure your effectiveness, and to iterate.
There is an infinite number of ways that data can be sliced and diced to create accurate audience segments; conversely there is no universal data set that will apply to all types of targeting. Once again, the goal of the campaign becomes the driving factor. Is the goal branding, customer acquisition? What type of product and decision making cycle is involved? An in-market cell phone buyer looks very different from an in-market car buyer. Taking each of these factors into consideration on the front end, ensuring that the data and segments you are creating are relevant to your overall goals, is the key to success with targeting.
