START HeRe

GeTTinG THe RiGHT diRecTion

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

• Targetingandfindabilityarenowfarmore importantmeasuresof a brand’s marketing effectiveness and are far more important

• database, data mining and one-to-one marketing is going to beimportant inmarketingactivities.Thiswillneedtobeinte-grated into every aspect of the marketing mix

• delivering customer value is essential

Therearetwoareas that advertisers are alwaystryingtoreconcile: 1. bRoAdeR ReAcH2. beTTeR TARGeTinGSo what is more important, howmany people you reach or reach-ing the right people?

FeweR AdS

moRe AdS

wiTH UndiVided ATTenTion

pAYinG leSS ATTenTion

ReAcHed moRe people

ReAcHinG A TARGeTed AUdience

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 thehopethatthepersonwhowantedtobuyyourproductwouldget to hear the message. The more people you reached at the topofthefunnel,themorepeopleyouwouldgetatthebottomofthefunnel.Mostmediadollarsandadvertisinginvestmentwasspent in purchasing as many eyeballs as possible and developing acreatvemessagethatwouldgettheattentionoftheguyatthebottom of the funnel.

Today’s funnel looks a bit different. word of mouth andcustomerreferralcountforsignificantlymorein the purchase decision process.

STATiSTicS

• Amongthe46%ofrespondentswhohadpostedorplannedtopostreviewsabouttheironlineshoppingexperience,88%saidthosereviewseitherwere,orwouldbepositive(Nielson,2007)

• Ofmerchantswhoadoptcustomerreviews,58% said improv-ing customer experience was the most important reason for adding reviews

• 11% of retailers reported a 20% or more overall increase in conversions as a result of adding reviews to their sites, 21% re-portedan11%to20%increaseand5%reporteda1%to10%increase.(eTailingGroup,2008)

• A large apparel retailer saw site-wide conversion rates in-crease by 90% (Q107vs.Q106) justmonthsafter launchingBazaarvoiceRatings&Reviews.(Bazaarvoicecustomercasestudy)

• MarketingExperimentstestedproductconversionwithandwith-out product ratings by customers. Conversion nearly doubled, going from .44% to 1.04% after the same product displayed its five-star rating.(MarketingExperimentsJournal)

• Conversion rates are higher on products with less than perfect reviews (less than 5 stars) than those without reviews at all, in-dicating that the customer feels that the product has been properlyreviewedbyothercustomers.(Burpee)

• According toaglobalNielsensurveyof26,486 Internetus-ersin47markets,consumerrecommendationsarethemostcredible form of advertising among 78% of the study’s re-spondents.(Nielsen,“Word-of-MouththeMostPowerfulSell-ingTool”)

• Online socialnetworkuserswere three timesmore likely totrusttheirpeers’opinionsoveradvertisingwhenmakingpur-chasedecisions.(“SocialNetworkingSites:DefiningAdvertis-ingOpportunities inaCompetitiveLandscape,”JupiterRe-search,March2007)

• 64%ofconsumersreportedwantingtoseeuserratingsandreviews,basedonastudyof5,000onlineshoppers.(Forrest-er,2008)

• 71% of online shoppers read reviews, making it the mostwidelyreadconsumer-generatedcontent.(Forrester)

• compared to a base group that didn’t read or con-tribute product reviews at all, people who read a re-view were 30% more likely to purchase a product andvisitors who wrote a review were 80% more likely toconvert, based on analysis across several coremet-rics clients. (Coremetrics, reported in BtoB, March 2007)

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-berofpeoplewhoareinamarketandwhoareinterestedinyourproduct, 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.

Additionallythough,whenwetalkaboutreachinthetargetingcontext,weneedtoconsidertargetingkeyinfluencers.Theseare individuals whomay not directly be in amarket for yourproduct but they have access to those people and they are in apositionofinfluence.

THeRe ARe SeVeRAl diFFeRenT TYpeS oF “TRAdiTionAl” TARGeTinG Contextual targeting: This isweremarketingmessagesaredeliv-ered throughcontentoradvertisingwhich is specifically relatedcontentbeingviewedbyconsumers.

Demographic targeting: messaging is targeted to content that hasahighcompositionofaspecificmarketsegment(regardlessifthere’sacontextualfit).Demographicinformationmayincludeprofessions, industry, company size, gender, age, and household income.

Geographic targeting:Adsaretargetedtospecificgeographicalareas 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 previousactivity(pastcontent,purchase,orsearchhistory).

Psychographic targeting: This is targeting based on an audience’s personal interests. This might be self selected by the individual or bedeterminedbytheuser’sparticipationwithtypesofcontentona site or membership of certain groups.

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, thenpeoplewillgiveyoutheredata.

Examplesofthiscontentincludedownloadablewhitepapers,podcasts,ebooksandwebinars.

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-binescurrenttargetingoptions(likegeotargeting,behavioraltar-geting,socio-psychographictargeting,etc.)usingprofiledatatodeliver advertisements directly to individual users.

Social Influencer targeting:Key influencersare recruitedand in-centivised to carry the message to peer groups based on demo-graphic and contextual relevance.

Reach is still themost important metric if we re-definereachtomeanthetotalnumberof“inter-ested”peoplewhowemanagetocommunicatewith.Whathaschangedisthescienceweapplytoreachingthemandhowthisdeterminesthequalityofthepeoplewereach.

iF YoU wAnT To diScUSS new poSSibiliTieS To ReAcH YoUR TARGeT AUdience, conTAcT US:

emailinteract@cyberbia.com.au

phone02 9954 0436