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

2  

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

PART 1 HYPOTHESIS

TOO MUCH TARGETING IS MAKING ADVERTISING

LESS VALUABLE

HYPOTHESIS:

WE OFTEN TALK ABOUT AN INCREDIBLE FUTURE…

…AND IT IS CLOSER THAN WE MIGHT THINK

ADVERTISING HEAVEN

ADVERTISING HELL? OR

OR IS IT ADVERTISING AT ALL?

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”

OR TO PUT IT ANOTHER WAY…

“IT IS THE WASTE THAT DOES THE

WORK”

SO WHAT DOES THIS SIGNAL TO ME?

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

PART 2 EVIDENCE

THE LEAST TRUSTED MEDIA ARE THE MOST TARGETABLE MEDIA

Source:  Nielsen  Global  Trust  in  Advertising  Survey  

% WHO COMPLETELY OR SOMEWHAT TRUST ADVERTISING FORMAT

IT GETS WORSE IN MORE SAVVY MARKETS

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  

AND AS TRACKING AWARENESS HAS GROWN, SO HAS ADBLOCKING

19  

EU Cookie law put into

practice May 2012

PART 3 SO WHAT?

WELL THANKS….

21  

THERE IS A LOT THAT BROADCAST “ADVERTISING” IS INEFFICIENT AT

TIMING CONTEXT

AND IN A WORLD OF FINITE BUDGETS THE RIGHT KIND OF TARGETING IS ESSENTIAL!

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

1

2

MY CHALLENGE TO YOU

MAKE BROADCAST MEDIA YOUR FRIEND

STARTERS FOR TEN

RETARGETING FROM BROADCAST NOT JUST DIGITAL - TV

RETARGETING FROM BROADCAST NOT JUST DIGITAL - OOH

OR, YOU COULD USE PROGRAMMATIC TO FIND A WHOLE NEW AUDIENCE

USING PROGRAMMATIC TO CHANGE EVERYTHING

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

THANKYOU Dan Plant Group Strategy Director and Real Time Planning Director – MEC UK @dnplnt www.thedrum.com/content/dan-plant