Reaching the Right People Based on Highest Quality Data

Even today these abuses persist Some are privacy invasions which creep out consumers such as when my wife uses a word in a cellphone conversation and receives ads moments later evidently guided by that spoken word Some are perhaps unintentional deceptions mostly gulling marketers such as when muted postagestamp videos playing alongside editorial text are classified as amp8220instreamamp8221 When the worldamp8217s most advanced medium springs like Topsy from the minds of hordes of people it will be a amp8220wild wild Westamp8221 until regulators catch up and when they do as we have seen they tend to perform surgery with machetes with the possibility of doing more harm than goodWhen I led the industryamp8217s first Privacy Principles in 1995 with the ANA 4As and ARF amp8220CASIEamp8221 over a hundred individuals involved all agreed but we forgot to practice constant redissemination and within ten years the good intentions were fraying because almost no one even remembered them So now we are here waiting for the last shoe to drop on deprecation and preparing to fall back on contentbased targeting which had not been so bad after allBut wait What about Addressable TV It has never been soiled in the same way and never needed cookies and with streaming gradually taking over all of TV will soon be addressable amp8211 what will happen there Will privacy gadflies insist on optin rather than optout Will marketers and TV media provide suitable incentives for optin and control the user experience so that consumers appreciate the relevancy and do not experience creepinessMy 1990s company Next Century Media introduced programmatic addressable commercials set top box data and a machinelearningdriven program recommender and with John Hendricks I cochaired the Addressable Advertising Coalition AAC whose members included all of the top 20 agencies TV networks MVPDs PampampG GM set top box manufacturers industry associations et al The AAC set the pricing rule addressable commercials would be priced so that the CPM against the true target group went down as compared against the CPM currently being paid against the true target For example if GMamp8217s true target was new car buyers representing about one in five US homes and if GM paid an average CPM of 10 across all media they were really paying 50 CPM against new car buyers So the AAC said offer GM a CPM of less than 50 against new car buyersLike the privacy principles this AAC pricing principle was also quickly forgotten Nowadays people complain about the gross CPM of addressable commercials without using the benchmark of what the CPM against the real target group is in nonaddressable TV or in digital where almost all of the targets are probabilistic due to the pervasive pennywise and poundfoolish practices Itamp8217s embarrassing to see so many brilliant people acting so naively The whole idea of addressable was to save you money allowing you to reach only the types of people known to be most salesresponsive to whatever you were selling and not having to pay for waste The wise and proper way of calculating the relevant metrics has fallen off the table impeding the use of addressablesIn CPG auto and Rx three categories which account for half of national US enterprise level adspend deterministic purchase data exists for use with addressable TV Sure it costs more than probabilistic targets Do the random control trials to verify the responsive target and then do the math you will see that the deterministic targets and addressable TV together more than pay for their own costs they also get the highest ROASThe TV networks have a track record of being able to produce great television programs that attract large audiences The MVPDs are the broadband internet service providers for two out of three US homes and have exact knowledge of which house is which Deterministic purchase data matchable to these homes exist for half the adspend on a third party basis and financial services travel telecom and many other types of advertisers have their own direct match purchase data By business cooperation the MVPDs can make all TV inventory addressable and as TV networks grow their streaming businesses eventually the data will be there to make virtually all US homes addressable in an ethical and responsible manner that will be a win for all parties involved in creating great video content andor distributing or sponsoring it or viewing itIn the meantime a mixture of addressable and contenttargeted solutions needs planning tools and if youamp8217d like to be part of designing them please let me knowRight now there is one form of programmatic digital that is invulnerable to deprecation RMT Research Measurement Technologies and its partner Semasio target people based on analysis of their motivations as gleaned from the digital content they consume nonpersonally Identifiable but hashedIDpersistent so you can reach people likely to be motivated by your specific ad Since Semasio sees the past content consumption and the hashed ID no ID graph is needed to match to targeting data from a separate database so that the average 49 error rates now being found by Truthset in ID graphs can be entirely circumvented Neustar showed a 95 increase in incremental sales in a random control trial RCT done for a major retail chain using RMTSemasio methodologyBuying cheap and using the phrase amp8220good enoughamp8221 used to be a way to cover oneamp8217s butt in this business Hopefully those days are gone forever There is no good enough replacement for the highest quality data and best practicesPosted at MediaVillage through the Thought Leadership selfpublishing platformClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillageorgMyersBizNet

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Reaching the Right People Based on Highest Quality Data

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Bill Harvey

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Reaching the Right People Based on Highest Quality Data

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