Caveat Emptor

While working on a freelance project last week, I discovered a local source reselling Yahoo! Behavioral Targeting at a higher cost than going directly through Yahoo! The advantages of using the local source include “free” services for creative and placement. That’s it. Yahoo! Provides templates or you can use your own creative. If your budget is over $2,500 per month, Yahoo! also provides telephone support.

A friend of mine (JS – you know who you are) had mentioned this was happening across the country, so I asked the sale team I met with about the rate difference. The sales manager admitted it was less expensive to go direct. I actually found this refreshing, as most managers would have danced around the question.

What this means for you is “let the buyer beware.” Before trying a new product, investigate. Especially if it’s through a reseller. Don’t assume they pay a cheaper rate for their inventory and are selling it to you at a savings.

ROI for Online Display

Per AdAge.com, Google has developed a metric for branding/awareness of online display ads. The tool solves two problems:

1. Click is an unreliable source of measurement because most of the clicks are performed by a small percentage of online users; and,
   
2. Search gets the credit for the purchase/conversion, yet many other ads may have contributed to consumers behavior to search.

The product is new and certainly has limitations - it only works if the consumer has installed the Google toolbar, for example. It's a great start, however, and further research can determine if the users who install the toolbar are vastly different from those who don't.

The industry has relied heavily on click-thru rates and display has not gotten the credit it may (or may not) deserve.

I'm excited to see how this new tool quantifies the impact of display ads to transactions.

No More Joe Consumer

A recent AdAge white paper concludes the concept of the "average American" is gone forever.

Whew! I'm relieved. If a media recommendation of A25-54 on network TV was still the best way to reach the "masses," we'd all be in trouble. The good news is media has led the way in segmentation.

While we have a gazillion channels (with nothing on), consumers have had more and more choices for several years. Yet most people only watch about six channels. The obvious conclusion is the markets are more and more segmented. Yet, you can consistently reach your targeted audience.

This also gives creative the opportunity to craft a message that ties into specific wants and needs of your targeted audience. Instead of just trying to appeal to everyone. It may be shocking, but I have worked with clients in the last few years who still want to have a "menu" approach to creative - something for everyone.

What initially may sound challenging is really just support for strong recommendations. The key is to know who your customer is. Or isn't. Guessing doesn't cut it anymore (it never really should have).

The Birthday Club

Even though the concept has been around for decades, the idea of giving your customer a perceived “gift” on the birthday must still work.

I remember the “birthday club” concept at the local Big Boy restaurant chain when I was a kid in Michigan. When you signed up, you were mailed a coupon for a free kiddie burger.

Now, without signing up, I get discounts off shoes, clothing, coffee, car washes and even cookie dough. And even more clothing. Some offers are sent via postcards, others e-mail and even one embedded in a catalog.

Crazy? Maybe. But it seems to work. The perceived value is special and the customer wants to treat themselves for their birthday. (At least I do!)

With the popularity of CRM/database marketing campaigns, sometimes the most obvious strategy can be effective.

What do you send your customers for their birthday?