Getting the Right Direction
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The document emphasizes the shift from traditional media metrics like reach to focusing on targeting and findability as more crucial for marketing effectiveness due to media fragmentation and consumer behavior changes. It highlights the significance of consumer reviews and word-of-mouth recommendations in influencing purchasing decisions, showcasing various data supporting these trends. Additionally, it discusses advanced targeting techniques, including social media targeting and influencer marketing, while advocating for a redefined understanding of reach that prioritizes interested audiences.
Getting the Right Direction
- 1. GeTTinG THe RiGHT diRecTion START HeRe
- 2. TARGeTinG will ReplAce ReAcH AS THe moST impoRTAnT mediA meTRic • As media channels multiply exponentially, advertising messag- es become “noise” • consumers are screening out advertising so broadcast meth- ods that rely on reach and frequency are becoming less rel- evant and less reliable for conversion • Targeting and findability are now far more important measures of a brand’s marketing effectiveness and are far more important • database, data mining and one-to-one marketing is going to be important in marketing activities. This will need to be inte- grated into every aspect of the marketing mix • delivering customer value is essential
- 3. There are two areas that FeweR AdS ReAcHed moRe people wiTH UndiVided ATTenTion advertisers are always trying to reconcile: moRe AdS ReAcHinG A TARGeTed AUdience pAYinG leSS ATTenTion 1. bRoAdeR ReAcH 2. beTTeR TARGeTinG So what is more important, how many people you reach or reach- ing the right people?
- 4. THe cHAllenGe oF mediA FRAGmenTATion And Too mUcH meSSAGinG iS TURninG THiS qUeSTion on iTS HeAd. The old model assumed that you had to reach a lot of people in the hope that the person who wanted to buy your product would get to hear the message. The more people you reached at the top of the funnel, the more people you would get at the bottom of the funnel. Most media dollars and advertising investment was spent in purchasing as many eyeballs as possible and developing a creatve message that would get the attention of the guy at the bottom of the funnel. Today’s funnel looks a bit different. word of mouth and customer referral count for significantly more in the purchase decision process.
- 5. • According to a global Nielsen survey of 26,486 Internet us- • Among the 46% of respondents who had posted or planned to ers in 47 markets, consumer recommendations are the most post reviews about their online shopping experience, 88% said credible form of advertising among 78% of the study’s re- those reviews either were, or would be positive (Nielson, 2007) spondents. (Nielsen, “Word-of-Mouth the Most Powerful Sell- • Of merchants who adopt customer reviews, 58% said improv- ing Tool”) ing customer experience was the most important reason for adding reviews • Online social network users were three times more likely to trust their peers’ opinions over advertising when making pur- • 11% of retailers reported a 20% or more overall increase in chase decisions. (“Social Networking Sites: Defining Advertis- conversions as a result of adding reviews to their sites, 21% re- ing Opportunities in a Competitive Landscape,” JupiterRe- ported an 11% to 20% increase and 5% reported a 1% to 10% search, March 2007) increase. (eTailing Group, 2008) • 64% of consumers reported wanting to see user ratings and • A large apparel retailer saw site-wide conversion rates in- crease by 90% (Q1 07 vs. Q1 06) just months after launching reviews, based on a study of 5,000 online shoppers. (Forrest- Bazaarvoice Ratings & Reviews. (Bazaarvoice customer case er, 2008) study) • 71% of online shoppers read reviews, making it the most • MarketingExperiments tested product conversion with and with- widely read consumer-generated content. (Forrester) out product ratings by customers. Conversion nearly doubled, • compared to a base group that didn’t read or con- going from .44% to 1.04% after the same product displayed its tribute product reviews at all, people who read a re- five-star rating. (MarketingExperiments Journal) view were 30% more likely to purchase a product and • Conversion rates are higher on products with less than perfect visitors who wrote a review were 80% more likely to reviews (less than 5 stars) than those without reviews at all, in- convert, based on analysis across several coremet- dicating that the customer feels that the product has been rics clients. (Coremetrics, reported in BtoB, March 2007) properly reviewed by other customers. (Burpee) STATiSTicS
- 6. Few people pURcHASe on THe STRenGTH oF one Ad meSSAGe And moST conSUmeRS ReSeARcH pRodUcTS online pRioR To pURcHASe. Traditional targeting addresses the mission of maximizing the num- ber of people who are in a market and who are interested in your product, ensuring that they hear your message and are impacted by some sort of call to action. This can migrate them from consid- eration to purchase. Additionally though, when we talk about reach in the targeting context, we need to consider targeting key influencers. These are individuals who may not directly be in a market for your product but they have access to those people and they are in a position of influence.
- 7. THeRe ARe SeVeRAl diFFeRenT TYpeS oF “TRAdiTionAl” TARGeTinG Contextual targeting: This is were marketing messages are deliv- ered through content or advertising which is specifically related content being viewed by consumers. Demographic targeting: messaging is targeted to content that has a high composition of a specific market segment (regardless if there’s a contextual fit). Demographic information may include professions, industry, company size, gender, age, and household income. Geographic targeting: Ads are targeted to specific geographical areas based on a user’s ip address, post code, or the local content. Registration targeting: marketing is targeted to consumers based on the information they provided during registration. Behavioral targeting: Ads are targeted to consumers based on previous activity (past content, purchase, or search history). Psychographic targeting: This is targeting based on an audience’s personal interests. This might be self selected by the individual or be determined by the user’s participation with types of content on a site or membership of certain groups.
- 8. YoU need A lARGe dATAbASe wHicH iS RicH in inFoRmATion To TARGeT cUSTomeRS SpeciFicAllY. provide an incentive to the end user in ex- change for their information. in a b2b environment, if the perceived value of the content is higher than the cost of obtaining it, then people will give you there data. Examples of this content include downloadable white papers, podcasts, ebooks and webinars.
- 9. in AddiTion To THeSe TRAdiTionAl TARGeTinG TecHniqUeS, SociAl mediA inTRodUceS new FoRmS oF TARGeTinG opTionS. Social Media Targeting enables the customised placement of ads and communication activities on social media platforms. it com- bines current targeting options (like geotargeting, behavioral tar- geting, socio-psychographic targeting, etc.) using profile data to deliver advertisements directly to individual users. Social Influencer targeting: Key influencers are recruited and in- centivised to carry the message to peer groups based on demo- graphic and contextual relevance. Reach is still the most important metric if we re- define reach to mean the total number of “inter- ested” people who we manage to communicate with. What has changed is the science we apply to reaching them and how this determines the quality of the people we reach.
- 10. iF YoU wAnT To diScUSS new poSSibiliTieS To ReAcH YoUR TARGeT AUdience, conTAcT US: email interact@cyberbia.com.au phone 02 9954 0436