NONE: Re: ONLINE-ADS>> Is targeting a bad thing when everyone does it??
Re: ONLINE-ADS>> Is targeting a bad thing when everyone does it??
Keith Pieper (kpieper_at_matchlogic.com)
Wed, 27 May 1998 09:49:18 -0600
Thanks for using my seed Richard!
First, I'd like to clarify the levels of targeting. The internet is not a
mass medium. It enables 1:1 and should be bought that way.
Segmentation
Most of what we've been exposed to to-date has been "segmentation" type of
targeting. Essentially, lumping people in groups with similar
characteristics. For instance, Andy of Microscope refers to targeting by
time of day, Mac users, etc. Those I would refer to as segments. In
addition, targeting based on keywords and site selection (or contextual
targeting) is also a form of segmentation targeting. It's like advertising
on Seinfeld on NBC - you are getting a homogeneous group of people with a
similar interest. This works fine for many marketers. But some advertisers
require more sophisticated 1:1 targeting...
1:1 Targeting
Aside from a limited handful of email services, I don't believe that true
1:1 targeting exists on the internet, yet. It will come. But to target me as
an individual based on my unique interests, independent of my group
affiliation, requires sophisticated targeting techniques.
Segmentation targeting is what most people know. It's similar to buying TV
or radio. You buy the "channel" that matches your target best. For true 1:1
targeting to work (assuming the tools are available), buyers and planners
need to do it differently. 1:1 targeted buys are very different and more
complex than segmentation buys. It requires significant research into the
specific targets a buyer wants, then finding the places or sites with those
individuals (contextual targeting can also play a role). It really comes
down to "buying individual people" vs "buying sites or networks". And, if
possible, only buying those impressions.
Then to complicate it, creative must be crafted specifically to this narrow
target. If the planner or buyer makes an effort to target a specific type of
individual, then the creative must also do that - which means no more
creating one banner and using for all targeted impressions. To get the
maximum return, the creative and media must work hand in hand.
Efficiencies
There is a point where as you add more targeting criteria, the return begins
to diminish. Of course, I doubt anyone knows where this point is. And it
will vary by advertisement. The idea is to add targeting criteria until you
have reached the point of maximum return.
What about the left-over impressions?
Another key to making true 1:1 targeting work is having an enormous pool of
impressions to choose from and an enormous amount of targeted offers to
choose from. As you increase the impression pool and available offers, the
possible matches increase exponentially. In theory, if I'm selling Widgets,
my targeting criteria consumes 50% of the pool - that leaves another 50%
unsold. If you want to sell the other 50% at maximum value - you had better
know darn well what offers the other 50% are going to respond positively
too, then go out and find advertisers that will maximize the match.
This is exactly what DoubleClick's Darwin technology does for the Direct
network. Based on user "click" response, Darwin remembers and tracks user
behavior and response, and optimizes the impression inventory by maximizing
the positive matches. I wrote about this some time ago on ClickZ.
So in a nutshell, that is how pooled impression targeting works and how to
maximize the value of each impression. It's all about what I call "needs
matching" - knowing what the user wants and matching that need with what a
marketer offers - to the best of targeting ability.
Keith Pieper
Idea Architect
MatchLogic
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