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Like a couple
wedded for decades who don’t necessarily still love each other,
staying in the marriage out of habit (or until the kids leave), the
media and service bureaus who measure their audiences continue to
carp at one another.
Tom Ryder,
chairman and chief executive officer of Reader's Digest Association
and the newly elected chairman of Magazine Publishers of America, is
upset with the Audit Bureau of Circulations.
"We are being asked to provide more and more
information, and adhere to standards that cost us more and more
money, and we're getting the feeling we are being asked that so we
can be asked to charge less for the advertising we sell," Ryder
complained to one reporter.
Meanwhile, the
broadcast networks are complaining because Nielsen, a unit of VNU, a
Netherlands media company, has confirmed that men age 18 to 34, a
demographic group coveted by advertisers, are watching between 8
percent and 12 percent less primetime TV than they did last year.
Just like the
embattled married couple, the feuding has been going on for years.
"When ratings are up, it's the programs. When
they're down, it's Nielsen," Jack Loftus, a Nielsen spokesman,
told The Wall Street Journal.
To further
exhaust the squabbling-couple analogy, the warring factions are
throwing only glancing blows, and this is for two reasons. One, they
are interdependent, so the public assaults over time hurt both. The other
reason is that neither side wants to address the real underlying
issue: advertising ROI.
Their discomfort could only
increase by looking at the internet.
After a booming start, the medium
was, like Obleo, banished to the Pointless Forest for over-promising
on the never-practical-to-begin-with idea of one-to-one marketing.
But the internet has since emerged, armed with new behavioral
targeting technology that can convincingly prove that online ads are
actually seen, really prompt audiences to act, and can produce
actual sales for advertisers.
While this may sound kind of
basic to successful advertising, no other medium (with the possible
exception of lowly
regarded
direct mail) can show this kind of accountability.
Audience
guarantees in print and broadcast are projections, guesstimates if
you will, of how many people will see your commercial or print ad.
They are often wrong, resulting in make-goods, free ads provided by
the network or the publisher to make up for audience shortfalls.
Moreover, unless
the ads have some sort of call to action like an 800 number, coupon
or a reader response card, neither magazine publishers nor
broadcasters can prove anybody saw your ad.
Sure, huge bucks are spent on studies to determine the
likelihood of viewers and readers seeing your ad, but they too are
only guesstimates, and they still can’t prove the ad prompted
anyone to get up and go out and buy your product.
Imagine you’re
the publisher of a monthly magazine. Twice yearly you report your
subscription and newsstand sales for the preceding six months. By
the time your unaudited circulation statements are printed and
distributed, your advertisers are looking at data that might be nine
months old. It’ll be another year or more before those numbers are
audited, printed and distributed. Your reps are knocking on media
buyers’ doors trying to get insertion orders for campaigns that
won’t appear until eight weeks from now, using data that is 18
months old.
By
contrast, the internet can give advertisers an exact
moment-by-moment audience body count, can show how many people might
have seen your ad, how many people actually played the ad or clicked
on it, how many of those took action as a result, how many phone
calls the retailer got and how many product units moved off the
shelves as a result.
The missing
ingredient in internet advertising was publisher data on who
comprised their audiences, but that is being quickly resolved by
widespread user registration so that web publishers now know who is
on their sites broken out by age, sex, location and often more
granular information such as income and kids in the home.
Unlike any other medium, the internet can now cross-reference
demographic data with behavioral data, which gives further clues
into the profiles of the users.
Visit the recipe pages a lot? Fair chance you are a
woman who likes to cook.
Look up your online portfolio three times a day? Good
bet you are an active investor.
Booked a high-end hotel room online? You’re probably
a business traveler.
True that
magazine publishers and broadcasters periodically survey their
audiences to get this same kind of information, but they hit only a
small sample and once again, guesstimate the real numbers.
Online the numbers are actual and in real time. There
is no gap between promise and delivery.
The real reason
traditional media are groaning about their service bureaus is that
when they do uncover downward trends, it comes well after the
promises were made that sold the advertising. Advertisers, having
bought on those promises, are then prompted to
ask if they are getting a fair return on their investments.
With TV and
magazines, they only really find out when it's too late.
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