Skipping from Local to Personal
March 5th, 2012Sometimes change happens so dramatically and swiftly, that even as you’re watching it, you can’t register its impact.
In the not-so-distant past I’ve talked about all media becoming local. But we’re quickly skipping over local, right to personalized. Rapid development cycles in technology have created hyper-targeting. There are not retina scanners, a la “Minority Report” – YET. But we’re awfully close.
Some evidence:
- Google got in trouble last week when it surreptitiously installed tracking tags via Internet Explorer and Safari. In other words, if you use Apple’s browser and you did so, thinking your web habits weren’t being followed, think again. They were. And by the biggest ad network in the world.
- Speaking of Google, later this year, they will start selling eyeglasses that project information, entertainment and, yes, advertisements on the lenses. There will be facial recognition. There will be GPS tracking. Eyeglasses powered with Android software.
- iAds lowered its minimum investment from $1,000,000 to $500,000 and, this week, to $100,000. Why? Look at Facebook’s success with local, long-tail advertisers’ ability to target.
- New York Times ran a story this past weekend about some data wonk at Target developing algorithms, based on purchase behavior, to determine just how pregnant a customer might be. The father of a teen girl came to the store, incensed she was receiving coupons for pregnancy items. He came back later to apologize. His daughter hadn’t yet disclosed her impending arrival.
- Articles in Ad Age used to be primarily about large marketers grappling with reach mediums in an environment lacking transparency. (Think TV upfront). Last week there was an article about a Belgian beer company attributing $50 million in sales to Facebook. They committed more dollars to social media and promotional marketing.
- Mobile is a rapidly growing ad medium. Its reach exceeds that of television at 104% HH penetration. However, its GPS, geo-targeting technology, behavioral targeting and direct-response mechanisms, like click-to-call, are better suited for individualized messaging.
What this will mean for media agencies and clients is really a whole new business model. More time spent in research and education. More time spent developing mathematical algorithms. More time in strategic planning and research. More thought work, period. This will be a difficult model to sustain if compensation continues to be based on a percentage of spend, which is better suited for executional services.