Tag Archives: Advertising

Digital Advertising: The Cost-Benefit Analysis of Behavioral Targeting & User Data

Just some old food for thought I wanted to put out:  The cost of behavioral data historically averaged between the $1-2 CPM mark (sometimes greater!).  In past reports, I found that using such data resulted in a lift in campaign performance by 10-25%.  For campaigns that utilized this data on advertising placements valued at $1-2 CPM mark, this clearly makes sense.  Your marketing cost is going up by as much as 100% for very little incremental gain.

However, there may be some situations where utilizing data, given the cost makes sense.  Some niche categories like Autos, Retail Oriented locations have CPM’s beyond the $10-30 range.  I recall CPM’s for the mortgage category being as high as $80-100 in some locations!  These may be the situations in which data should be utilized in order to ensure you’re reaching the right audience.  $1 out of $30 is a small enough fraction where reaching the right users becomes more critical given the cost of inventory.

One interesting thing I have seen in recent times from publishers/vendors is that they have begun to recognize these disparities between performance pricing — and they are beginning to provide more transparency in order for agencies and advertisers to justify cost.  Additionally, some data providers are finding ways to attain and share data at rates that make sense.  However, sometimes one may wonder whether the quality of the data is only as good as the amount you pay for…

Swan Dive…into a Drop in Sales

Look down…now up.  Old Spice Red Zone sales have reportedly gone down 7%.  Some sites believe this decrease was due to the fact that the advertisement did not target the right audience, gave the product negative connotations, and could not change the perception of Old Spice – a product our “fathers use.”

I don’t entirely agree with those sentiments. Continue reading