Since the advent of cookies, data companies have promised granularity and precision through online targeting. The more specific the target, the more expensive the segment. Advertisers could narrow their targeting to get as close to their exact ideal customer as possible for a targeting premium.
In reality, most advertisers were paying for the comfort of the checkbox. Data companies face the difficult task of accuracy and precision at scale in order to maximize revenue. This leads to blurred edges of targeting and questional veracity of the “premium precise segments.”
There is not a nefarious motive behind 3rd party data – these companies are working to fill an industry need. Perhaps the the most efficient way to reach your audience isn’t the data targeting model of “inclusion qualifiers.”
What if the price of data used to reach an in-target audience was low. A buyer could implement data to reduce waste and eliminate the out-of-target audiences vs. only including the matches. Advertisers would have a broader reach, but reap the cost efficiency benefits of a simpler, more efficient targeting solution.
A loss of precision for a gain of efficiency and performance.
This is the Linear TV DMA targeting model. Buyers identify DMAs that have the general characteristics of their audience and focus their buys on those geographies. More blunt than individualized targeting, but effective in reaching the audience advertisers wanted and expanding market share as a result.
At Pontiac, we’ve been working with logistic regression models to overlap the execution of the past – geo-inclusion – with the performance needs of the present. We use our ART: Audience Research Tool to identify in-target and out of target ZIP codes. Then through conversion analysis, we eliminate low performing or “out of target” ZIP codes at scale.
This strategy drives better performance than traditional inclusion targeting models. Our clients are benefitting from more efficient results and ROI from their campaigns. 3rd party data is typically seen as a branding solution even in performance oriented environments like display. ART targeting and optimization is a performance driver for CTV.
The key to outperforming other platforms and legacy models is to use exclusion as the key lever for reaching the right audience and driving performance.
Instead of avoiding any imprecise targeting, advertisers should reduce their spend waste with a cost efficient targeting and optimization model. In implementing this ourselves, Targeting shifts strategy from seeking out those who want your product to eliminating those who don’t want the product, and the results have been impressive!
