Monday, February 05, 2007

Is it possible to over-target?

Extensive targeting capabilities for online advertising is not new, Engage was marketing behavorial targeting back in 1999. It wasn't called behavioral targeting back then. (links link to the archive.org)

We all know what eventually happened to Engage.

There's that movie quote, "If you build it, he will come."

My question is, "If you can target it, will they pay?"

Look at the following scenario:

On your media buy 90% of the impressions do not reach your target audience. You pay $10 cpm. You purchase $100 worth of impressions.

If I could sell you the 10% of the impressions that reach your target audience would you pay $100cpm? You purchase $100 worth of impressions.

My feeling is that it would be tough for media buyers to accept such a premium on that targeting. They need to gradually work they way up to that level of targeting, maybe in 10% increments.

Since impressions aren't a tactile good, you can't compare two before you buy like you might with a car. I'm offering a different promise of quality which will only show up after you've purchased it.

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