“What’s our marketing budget?”
“Who’s our audience?”
“Is this worth our dollars?”
“Is that font appealing to millennials?”
After five minutes in any marketing meeting, you’ll hear every question from budget to background to shade of blue! Jessica Hendrix (CEO of Saatchi & Saatchi X) and team help clients with these decisions each week. One question they tackle for any messaging is what avenue is best to reach new customers: Hyper-Target marketing or Reach-Based Media. In the latest installment of The Future of Commerce, Hendrix discusses the benefits of each strategy.
The digital age has ushered in a strategic way to communicate with potential customers based on their shopping habits. You’ve most-likely been hyper-targeted within the last hour!
“Hyper-targeting potential customers with programmatic and goal-based media lets you deliver specific messages to specific targets and lets you manage your spend based on performance while assessing ROI in real time,” Hendrix explains.
To show how hyper-targeting works, let’s say you’re in the market for a new pair of shoes. You click on a few sites to research styles and prices. The next day, you may be on one of your favorite social media sites and see an ad for a fashion shoe site. Based on your search habits, you’ve been hyper-targeted to see advertisements specific to your likes.
Reach-Based Media Marketing
The name says it all: your message is geared to reach as many potential customers via media as possible. Your marketing goes where there is already an established audience; the larger the audience, the greater potential return on your investment (ROI).
Televised sporting events are the common example. Millions of eyes will be fixed on the big game each weekend representing a vast demographic range. Broadcasting your product to the masses will not only build your brand awareness, but potentially grow sales by the portion of the audience that clicks with your message.
Where Should I Put My Marketing Dollars?
Go for the big audience, or take time for a sharper approach…is one method better than the other? Hendrix advises that the two options are not competing, but complementary:
“The best brands are putting their media dollars in both forms of marketing. They are still leveraging reach to drive awareness and brand recognition. Then, they’re using smart tools like a DMP (data management platform) or DSP (demand-side platform) to drive purchase intent and take customers through the sales funnel.”
“You need to be doing both,” she continues, “but you need to do them in a smart way. Each tool should drive to and support the other and you should be leveraging all of this for incremental distribution at retail.”