In 2006, behavioral targeting will play a stronger role in automotive planning.
When initially asked to write a column on behavioral targeting, I thought, "No problem. I have an automotive account, and we do lots of behavioral targeting." That's before I really thought about it. Truth is, we talk a lot about behavioral targeting, and we agree it has the potential to be a great strategy for reaching in-market buyers. Yet I was hard-pressed to find some solid case studies on it.
When I spoke with industry colleagues, most stated behavioral targeting happened by accident instead of intentionally. They needed to make good on an under-delivery, so they agreed to move the inventory to behavioral-targeted placements and expand their reach on an automotive network. Or, it was the only way to purchase inventory on a site that had sold out of content-targeted sections. There were cases when colleagues set out to do behavioral targeting, but then budget, creative, and timing made them realize the campaign wouldn't meet their objectives.
In 2006, behavioral targeting will play a stronger role in automotive planning, particularly as it relates to the automotive upfront. The upfront is the process in which automotive advertisers secure inventory on automotive-related sites six months to a year in advance. The objective is for manufacturers to secure advertising on their own model pages so a competitor can't purchase them. Any inventory that's not secured during the upfront planning cycle becomes available to competitive advertisers.
Although, upfront budgets constitute a large percentage of an automotive advertiser's interactive budget, automotive sites have hit a plateau. According to Revenue Science, automotive sites experienced visitor growth was slightly lower than the total Internet average in May 2005, while visitors to manufacturer sites increased 23 percent over the prior year. For continued growth, therefore, automotive sites must find opportunities for expansion. Behavioral targeting provides just this opportunity.
Properties such as Yahoo Autos and cars.com have submitted behavioral targeting as part of the upfront, and several manufacturers have bought it, citing expanded reach (outside the automotive channel) and conquering competitors' pages as the top two reasons. Yahoo's rationale is it makes sense to reach in-market shoppers outside of Yahoo Autos because that's where 87 percent of automotive shoppers live.
A benefit of using behavioral targeting with automotive properties like Yahoo Autos and Cars.com is they're often components of larger entities, such as the Yahoo and Tribune networks. Therefore, even though average shoppers may frequent Yahoo Autos or cars.com once or twice while they're in-market, they'll frequent the Yahoo or Tribune network regularly.
Because demand has surpassed supply, this is another way for properties to make money outside their automotive channel. They present behavioral targeting not only as an option for the upfront but also as a way to capture overall offline dollars, as this is clearly something that can't be offered in the offline world. They lure advertisers with strong metrics. Dynamic Logic automotive studies that show a 246 percent lift in purchase intent and 53 percent in brand favorability for behavioral-targeted campaigns.
Other automotive networks, such as Jumpstart Automotive Media group, which includes NADA Guides, Vehix.com, Consumer Guide Automotive, Automotive.com, and J.D. Power, have recently joined the bandwagon by partnering with Revenue Science. They collect consumer-automotive shopping information, including automotive type, make, and model interest, while the consumer is within any of Jumpstart's automotive channels. Then, through a partnership with Advertising.com and ValueClick, they'll target consumers by category or model interest on non-endemic sites.
Jumpstart said it launched the offering based on advertisers requesting the following:
One way to effectively utilize automotive behavioral targeting is to overlay it with geotargeting by providing a local-financing option. Alternately, sequence creative to highlight different features.
Planners must also be cognizant of when consumers are out of market. Once they've purchased their cars, the last thing they want to see is a reminder of that purchase cycle. Therefore, stay abreast of what consumers do after they see the ad. Do they click? Do they visit the advertised site? Do they ask to be contacted by a local dealer?
Gone are the days of serving the same message at a high frequency and hoping for the best. Today's consumers are savvy. They want to know you're paying attention to them for reasons that will benefit them.
Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, August 29 to take advantage of Super Saver Rates!
Based in New York, Anna Papadopoulos has held several digital media positions and has worked across many sectors including automotive, financial, pharmaceutical, and CPG.
An advocate for creative media thinking and an early digital pioneer, Anna has been a part of several industry firsts, including the first fully integrated campaign and podcast for Volvo and has been a ClickZ contributor since 2005. She began her career as a media negotiator for TBS Media Management, where she bought for media clients such as CVS and RadioShack. Anna earned her bachelor's degree in journalism from St. John's University in New York.
Anna's ideas and columns represent only her own opinion and not her company's.
The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.
The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.
August 21, 2014
September 23, 2014