Targeting Effecting Spending Limits? Nah!

Some people remember the pre-internet days. Seems like ancient history when print and TV were battling it out for dollars. Back before there was an internet, I took a detour from publishing sales into publishing audience research. I learned a lot, even when the universe was so simple. And one of the things I learned is that sometimes you can ask a question that is completely useless because it predicts your answer.

Witness Forrester Consulting’s report last week called “Media Buying Goes Real Time.” I agree with the main premise of the report, which states that the rapid acceleration of online inventory is bringing new publishing business and pricing models into the forefront. I’m not so sure I agree with its prediction that marketers will embrace bid-based ad buying. I wholeheartedly agree that performance-based ads currently make up more than half of all online media buys, and marketers fluent in cost-per-click deals where ad placement depends on bid price are ready to optimize display ad buys. But here’s where I part ways based on my even limited knowledge of research: the report shows that more than 80 percent of marketers surveyed would spend more money online if they had better targeting available.

That’s like asking me if I would go to more Laker games if I had better seats. Sure I would, at least in answer to your question. But whether or not I could find the time is still up for grabs, right? One thing I am very confident about right now is that marketers have a complete set of targeting tools available. At least targeting is not a limiting factor. If you want to dive deep, I would say that the things holding back total online spend from brands are creative in nature, and still steeped in the old ways of traditional marketing. The ability to have more and better targeting has very little to do with spending limitations right now. The normally excellent research machine that is Forrester asked a self revealing question. No one who sells or markets digital content should find a lack of targeting a reasonable explanation for online budget cuts.