Power Levels of Context Metadata

Figuring out the system designs will be fun and the winners highly rewardedOne of the most pivotal things to remember in this Second Coming of Context Targeting is that not all metadata are created equalLet39s take Google as an example As the giant bank vault doors started to close on ID targeting Google came up with the idea of FLoCs meaning Federated Learning of Cohorts Meaning that Google would create logical audiences and sell them en bloc and no one would need to know the IDs involved In other words the ultimate walled garden wet dream Who can blame themIt39s really when one thinks about the post evaluation of ROI that the FLoCs idea becomes unappealing ROI estimation methods other than experiments are already noisy enough with IDs let alone with FLoCsA long time ago Tracey Scheppach asked me to compare the value of ziplevel vs householdlevel targeting She was shocked to see how poorly ziplevel targeting performs compared to deterministic household targeting TRA knew because we had both Experian data sets for car brand registrations The correlations between the networks you39d buy were close to random between zip level and household level except for very highend carsOne thing that will be lost as we shift weight from the ID leg to the context leg is the gullible use of lookalikes which are so diluted as to be associated with singledigit lifts at bestSo now in response to marketplace demand FLoCs are out the window Google instead has come up with a new idea TopicsEach user will be automatically coded based on the three topics most looked at per weekWhen I first got into the business this type of data was called quotinterestsquot Magazine publishers made great use of interests and so did direct mail In the early 00s Dave Morgan39s TACODA had the pole position on interests It was measured based on behavior website visit behaviorI was privileged then as now to be great friends with Dave and in a consultation he had no objection to publish the good with the bad I found cases where context targeting was as good or better than interests targeting There were categories such as video games where the interest in videogames was a gold mine and a much larger array of other product categories where interests were only weakly predictive of potential purchaseMany DMPs and others in today39s game have been doing good work with quotinterestsquot dataThe specific approach that Google is planning however is going to have some sour consequencesThe user is going to be blitzed each week with hordes of ads directed to their latest interests If you read my previous article in this series you know that I consider the user bombardment phenomenon one of the worst side effects of stalker marketingWhat then should we be using for targeting if not lookalikes and not interestsTargeting known purchasers of a product category has always been a good idea Not necessarily targeting the purchasers of one39s own brand Byron Sharp and Larry LightMike Donahue will be debating the wisdom of targeting one39s own loyal purchasers until the laws of physics prevent it TRA proved to me and at least 77 major brand clients that targeting heavy swing purchasers category heavy purchasers who have bought your brand at least once but have not been loyal makes you the most moneyTRA did this with linear TV mostly and so it was all context based rather than ID based although in the CPG category IRI Nielsen Catalina 8451 all have frequent shopper card data so that HSP targeting can be executed in IDbased addressable mediaA stronger level of impact amplification is available when using the targeting of HSPs with the targeting of people who are motivationally resonant with the brand39s current creative amp8211 the work of quotmyquot company RMT with partner SemasioOutside of CPG where HSP proof has not yet been adequately produced RMT39s ability to identify people and contexts who are likely to respond well to a specific ad appears based on all of today39s evidence to be the best metadata to use for ID targeting and for context targetingThis is not to say that new forms of metadata are not coming that will add to the industry39s ability to make profits on advertising investments using both ID and context targeting Adelaide is one company that is building out from digital to all other media and using factbased data ad clutter for example to calibrate a form of metadata which predicts the likelihood of attention regardless of the ad creative and someday hopes to include adjustments for that as wellAll proven solutions ought to be integrated together without regard to whether you invented them or someone else didClick the social buttons to share this content with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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Power Levels of Context Metadata

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Bill Harvey

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Power Levels of Context Metadata

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