The new wave of marketing innovation
As a new wave of privacy regulations makes consumer targeting much less efficient than before, here, Berlin-based events and digital services solution Future Demand explains why interest-centric marketing is the future – and promoters can take full advantage…
The last 10 years in digital marketing were driven by ever-improving targeting options. Lookalike audiences and retargeting enabled a super-fast, convenient, and easy way of making sure ads were seen by the right people. On the other hand, the data-driven ad-tech industry did very little to help marketeers create better copy and content.
Driven by a new wave of privacy regulations (from GDPR to Apple’s ATT) promoters now see a substantial decrease in the effectiveness of their targeting options. Now, they’re starting to regret spending 10 years improving only 50% of what drives campaign efficacy (user targeting) and ignoring the other 50% (content).
It’s time to have a look at why content is more important than ever before.
Content is the future
Marketing used to be essentially people-focused. The ad-tech industry measured and tracked individuals and tried to understand them. For many industries this worked great, much better than anything before. It worked so well, in fact, that whole industries were built on it. The D2C trend around companies like Dollar Shave Club or Casper was fuelled by direct response ads on Facebook through lookalike audiences and retargeting campaigns.
Against the backdrop of expanding privacy regulations, the future now points to the centralisation of a few big platforms. Platforms big enough to own enough in-platform user data (think Amazon, or gaming giants like Epic Games) will be able to serve ads and convert users directly within their platforms. Eric Seufert summarised the development by the term “content fortresses”.
However, the way the industry is currently set up, this isn’t a tenable solution for promoters (and many other companies) as they lack the content usage of users to gain enough insights into people’s interests and serve targeted ads.
So, what about promoters?
For promoters, targeting has always been more difficult because taste in music is much harder to grasp and describe. A concert is in most cases a one-time happening, making it near impossible to have enough time, iteration cycles and budget to get into the sweet spot of the advertising feedback loop. Promoters, therefore, reverted to traditional segmentation methods, relying on socio-demographic data to cluster audiences and fans. Unfortunately, this works even less.
Note the famous example of Prince Charles and Ozzy Osbourne. Both are born in the same year, have a comparable income, can be located to London, and have the same gender. But their music tastes may be completely different indeed. Traditional segmentation features like age, gender, postcode etc. do little to help you decide who to target for a specific show or event.
Netflix was one of the first to focus only on people’s interests to better describe the diversity in their user base. Like Netflix users, concert-goers can be interested in a symphony concert with a famous French female violinist but also in the next upcoming metal wunderkind playing his or her first gig in the small club next door. The obvious answer for promoters is to design systems that only focus on interest and to cluster based on fans’ interests. The powerful ad networks of today enable targeting those interests.
Knowing why people buy tickets gives promoters an edge over big platforms. As they get more independent from ticketing and ad platforms, switching between them becomes easier. If you know why people are interested and what message they need to see to purchase a ticket or subscribe to an offer, you can decide on which platform to focus on.
What to do about it?
Marketeers must shift their focus towards understanding interests. It enables better targeting and the possibility to match creative content to targeting criteria – all automatically. It increases independence and enhances the speed at which promoters can adopt new and upcoming platforms.
Interest centric marketing will be one of the most important strategic levers for marketeers who do not own a content fortress. Many industries need to speed up their efforts to catch up and rework their whole ad-tech stack. Promoters can now finally leverage their past disadvantage (very, very diverse content) into a powerful advantage. The more diverse the content, the better the understanding of fans tastes and interests.
Learn more about interest-centric marketing here.
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