‘Programmatic’ Goes the World - Media Buying Is Audience Buying
Direct marketers have long had a love affair with data-driven media buying. In the world of direct mail, for example, list rentals and exchanges are filled with data cards (once print, now electronic) rich with audience measurements—the very attributes marketers need to intelligently target their offers to would-be buyers.
Response lists not only indicate consumers (and business) buyers who are pre-disposed to buy remotely—half the hurdle overcome—but often household income ranges, gender and other characteristics that enable exceptionally performing customer lookalike and predictive behavior models. Compiled lists supplement and enhance the audience profiles, too. Yes, the offer, strategy and creative each and all are vital, but it's the list (the data) that makes the success of the offer, strategy and creative even possible.
Of course, this is all old news to direct marketers, including digital marketers who have "grown up" in traditional direct-response channels (direct mail, DR print, DRTV, etc.).
You have to love this LinkedIn piece from Pamela Carr—founder and general manager, Chicago Trib Shops Marketplace—who is advocating that while it is important to have long-term strategies in place to college educate a new generation of marketing students in digital marketing and execution. We have much more to gain, and more immediately so, by retraining the direct marketing professionals we already have to be fully digitally conversant. Why? Because direct marketers, old ones and new ones, truly understand data-driven marketing and audience measurements that unlock any media channel's potential.
The turn to digital and rise of programmatic media buying exchanges for many media channels. Twice during the past year, The Winterberry Group and the Interactive Advertising Bureau have co-published two white papers on the rise of data-driven, programmatic buying: "Programmatic Everywhere: Data, Technology and the Future of Audience Engagement" and "Going Global: Programmatic Audience Development Around the World." How wise that the emphases in these programmatic studies are on "audience" engagement—underlying data on audiences—rather than "media." No wonder Google's CMO recently announced that 60 percent of its digital media spend will be conducted through programmatic buying. (Google says digital here, but why not other media, too?)
I'll be looking forward to The Winterberry Group's Bruce Biegel, in his annual address to the Direct Marketing Club of New York on January 8, where he'll detail a media recap of 2014—and for the first time projections for 2015—on total media spend, direct marketing media spend, and digital media spend—and the drivers (and inhibitors) of each category.
Who better knows audience engagement than traditional direct marketers? The sooner we can put direct marketers in charge of the programmatic exchanges, the better for all of advertising—and for the audience-brand interactions that will surely follow. Time for retraining!