Post on 12-Feb-2017
IS TARGETING KILLING ADVERTISING? HOW TECHNOLOGY IS CHANGING CONSUMERS’ RELATIONSHIP WITH ADVERTISING AND WHAT WE SHOULD DO ABOUT IT Dan Plant, Group Strategy Director and Real Time Planning Director – MEC UK @dnplnt www.thedrum.com/content/dan-plant
A CONTROVERSIAL STORY IN 3 PARTS
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HYPOTHESIS
Targeting could be making
advertising less valuable
SO WHAT?
Some ideas about the future of targeting and programmatic
EVIDENCE
The changing relationship of
consumers with advertising
WE BELIEVE IN THE RIGHT TOOL FOR THE RIGHT JOB
MOMENTUM
AND NOT ALL OF THOSE TOOLS ARE “ADVERTISING”
“ASSYMETRY OF INFORMATION” MEANS WE DO NEED SOME BROADCAST ADVERTISING
SELLER KNOWLEDGE
BUYER KNOWLEDGE KNOWLEDGE GAP
KNOWLEDGE GAP Sellers Product Service, Features,
Benefits and Capabilities
Buyers Application, Needs and
Requirements ADVERTISING SIGNALS
Source: George Akerlofs “A Market for Lemons” 1970
Davis, Kay & Star 1991
“IT IS NOT SO MUCH THE CLAIMS MADE BY ADVERTISERS THAT ARE HELPFUL BUT THE FACT THAT THEY ARE WILLING TO SPEND EXTRAVAGANT SUMS THAT IS INFORMATIVE”
1) A highly targeted advert will have a higher response rate and ROI than a less targeted one
2) An ecosystem where all ads are highly targeted will decrease in value for advertisers because it
can no longer generated trusted signals
BOTH OF THESE STATEMENTS CAN BE TRUE
BUT
THE LEAST TRUSTED MEDIA ARE THE MOST TARGETABLE MEDIA
Source: Nielsen Global Trust in Advertising Survey
% WHO COMPLETELY OR SOMEWHAT TRUST ADVERTISING FORMAT
MOST CONSUMERS TELL US THAT THEY DON’T WANT ADS TO BE TAILORED
Source: Americans Reject Tailored Advertising and Three Activities That Enable It: University of Pennsylvania 2009
AND THE MORE CONSUMERS HEAR ABOUT TRACKING, THE LESS THEY LIKE IT DESIRE FOR TAILORED ADS DECREASES WHEN TRACKING IS UNDERSTOOD
Source: Americans Reject Tailored Advertising and Three Activities That Enable It: University of Pennsylvania 2009
AVOIDING PEOPLE WHO DEFINITELY WON’T BUY
YOUR PRODUCT
ONLY EVER TARGETING PEOPLE WHO DEFINITELY WILL BUY YOUR PRODUCT
BUT TARGETING EXISTS ON A SPECTRUM
TRYING TO SELL TO ABSOLUTELY EVERYONE
WE MUST USE THE RIGHT TARGETING FOR THE RIGHT TASK
MOMENTUM
TALK TO PRETTY MUCH EVERYONE TO SIGNAL QUALITY AND PLANT THE SEED ADVERTISING, SOCIAL, WOM, REVIEWS
HARVEST ANY PASSIVE STAGE BIAS AMONGST ACTIVE PURCHASERS DM, RETARGETING, CRM, PROGRAMMATIC
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SUMMARY 1. TARGETING IN MEDIA PLANNING IS NOT AN UNQUALIFIED GOOD &
SOME “WASTAGE” IS ESSENTIAL
2. FOR EVERY TARGETED IMPACT IN AN ACTIVE JOURNEY YOU NEED MANY BROADCAST ONES IN THE PASSIVE PHASE
3. BUT THE TECHNOLOGIES WE ARE DEVELOPING CAN HELP US CREATE CONNECTED HOLISTIC AND INSIGHT LED CAMPAIGNS LIKE NEVER BEFORE