Straight talk at OMMA: Stop the geek talk
Friday, February 26th, 2010Online audience targeting has a very promising proposition. Rather than the spray and pray mentality, you handpick your target audience based on billions of data points and powerful predictive analytics and math. The value for advertisers and marketers that the vendors are promising is a razor sharp reach to the target audience and increased effectiveness.
While this may sound like the holy grail of online advertising, why is this revolution “just behind the corner” for so many years? While online search marketing is a $25 billion industry, targeting amounts to only $1 billion according to eMarketer estimates.
This is the question tackled by Rishad Tobaccowala, Member of Management Board at VivaKi, and the keynote speaker at the OMMA Behavioral conference that convened on Thursday in New York.
“We are so concerned about the plumbing that we forget about the poetry,” he argued. “If I have to spend two to three hours per week just to keep on top of what is going on in the targeting industry, it means that it is a very complex industry and that is not trivial. It also means that it is a share game, where too many people are competing for about 1 billion dollars.”
According to Mr. Tobaccowala, vendors are focusing too much on what data they are using and how they structure their database instead of on their clients. The industry has a myriad of acronyms, jargon and terms that are constantly changing and are hard to stay on top of. “The agency people are busy,” he said.
The targeting industry that uses data to understand and target clients is not implementing its own competency on itself. “While the targeting industry has the best tools in the world to understand and target customers, they should implement this talent on growing this industry,”he said. “Furthermore, the industry has positioning itself for private equity and venture capital rather than focusing on customers”.
Mr. Tobaccowala says that the industry should form partnerships with broad offering so that agencies will not have to deal with managing many specialized vendors. “Search, which has $25 billion in revenue, has only three competitors. The behavioral, which is a $1 billion industry, nobody even knows how many competitors there are.”
The industry should think broader about people. They need to think about many aspects of data. “Clients pay money for outcomes, and process.” In process, he said, clients like continuous improvement, and the targeting industry does improve. Clients would like service, which the industry does about 50%. Currently, the industry throws around terms and different approaches. His solution is to form partnerships, since nobody will work with 20 vendors in a $1 billion industry.
As far as outcomes, Mr. Tobaccowala argues, the industry has more challenges. You pay for insights, and this industry is best able to provide insights. Another outcome that you pay for is inspiration, but currently the targeting industry mostly provides desperation and frustration.
The targeting industry needs to think about how to better relate with their audiences. “If you speak only about which data you merge you are not selling your product. I want to have a great shower; I don’t care about the condition of the plumbing.”
Currently, the industry is still in a share of industry battle rather than thinking about how to grow the industry, he said. Share battles are for declining industries; growing industries should have room for everyone.
Ariel Geifman, Research Analyst






As the world watched in eager anticipation of change-afoot following the recent US Presidential election, I personally was waiting with baited breath for the results of the 