In 2011 targeting will replace reach as the key factor in any marketing campaign. As media channels grow exponentially advertising messages are becoming noise. How do you cut through to reach the people that matter?

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