Jun 7, 2018

The big picture: Why ad targeting is shifting from background to interests

Nielsen's annual Consumer 360 Media Summit in Washington, D.C. Photo: Sara Fischer/Axios

Speaking at Nielsen's Consumer 360 Summit in Washington, executives from brands, publishers and non-profits agree that using traditional demographics, such as race and religion, to target advertisements to people is often less effective than targeting people by their diverse interests, such as movies and hobbies.

Why it matters: Data-based marketing has made this type of targeting possible. In the past, placing TV or newspaper ads allowed marketers to target by age, gender and location. Today, there are many more targeting opportunities, and more diverse targeting can be more effective.

Data: Nielsen; Chart: Axios Visuals

By the numbers: A whopping 71% of real total expenditures growth from 2005-2015 came from ethnically-diverse consumers, according to Nielsen's Consumer Expenditure Study.

  • Today, 21 of 25 of the most populated U.S. counties are a multicultural majority. And 44% of multicultural millennials choosing to live in the Top 10 Nielsen Demographic Marketing Areas (DMAs), including New York, Los Angeles, San Francisco and Houston.
  • Multicultural millennials who are active on their mobile devices spend over $65 billion per year — with an increasing majority of those dollars being spent online. They also influence more than $1 trillion in total CPG and entertainment spending.

"The definition of cultural ID is changing," says Maya Peterson, Director, Creative Strategy, Viacom's marketing services team, Velocity. "It's not just a thing you're born with, like race or religion, but it's really about passion, interests and hobbies."

  • Peterson says a survey Viacom conducted found that found consumers are least passionate about the qualities they born with, but rather they pick "passions" and interests to identify themselves with. "As marketers, we need to be more fluid in ways define this generation."

Dual identities is also prevalent within this generation, says Lia Silkworth, SVP of Insights and Consumer Development at Telemundo. "We have to acknowledge and understand that people have plural identities in this country." She cites a consumer who identifies equally as being English and Pakistani.

Understanding sentiment around culture is important too, says Grant Schneider, Chief Strategy Officer of the Gay & Lesbian Alliance Against Defamation. GLAAD, he said, commissioned a survey to learn how comfortable people are with the gay community — to target them based on their comfort levels, not their own identity.

Our cultural assumptions inform our algorithms, says Edwin Wong, SVP of Research and Insights at Buzzfeed. Wong says that marketers often assume that programmatic targeting is binary: "Are you a man or a woman?" But many people don't identify with gender or other qualities as being one or another, but rather being somewhere on a sliding scale or a spectrum.

  • "Our algorithms and statements use historical data to target, and if we don't understand the consumer, what does it mean about our algorithms? Our programmatic advertising? Who exactly are we targeting?" he said.

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2020 rules of the road for the Age of Misinformation

Illustration: Sarah Grillo/Axios

With just weeks to the Iowa caucuses, social media platforms have finalized their rules governing political speech — and fired a starting pistol for political strategists to find ways to exploit them from now till Election Day.

Why it matters: "One opportunity that has arisen from all these changes is how people are trying to get around them," says Keegan Goudiss, director of digital advertising for Bernie Sanders' 2016 campaign and now a partner at the progressive digital firm Revolution Messaging.

Pentagon chief on targeting cultural sites: "We will follow the laws of armed conflict"

Secretary of State Mike Pompeo (L) and Defense Secretary Mark Esper. Photo: Nicholas Kamm/AFP via Getty Images

Secretary of Defense Mark Esper said Monday that "we will follow the laws of armed conflict" as they relate to the targeting of cultural sites, which is considered a war crime, CNN reports.

Why it matters: The remark appears to contradict President Trump's threat Sunday to target 52 Iranian sites — including ones "important" to Iranian culture — as a response to a potential retaliatory attack by Iran.

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The Met calls Trump's threat to target Iranian cultural sites "abhorrent"

The Metropolitan Museum of Art in New York City. Photo: Jonathan Elderfield/Getty Images

The president and director of the Metropolitan Museum of Art on Monday called President Trump's threat to target Iranian cultural sites in retaliation to a possible attack "abhorrent to the collective values of our society."

Why it matters: Targeting cultural sites is a war crime under a 1954 Hague treaty. The UN Security Council also unanimously passed a resolution in 2017 condemning the destruction of heritage sites in response to attacks by the Islamic State. Nonetheless, President Trump doubled down on his stance Sunday night.

Go deeperArrowJan 6, 2020