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Wednesday, March 31, 2010
Destination Relevance - by Jeff Einstein
It's generally accepted in media circles -- especially
digital media circles -- that there's an inverse relation-
ship between reach and relevance. In other words, relevance
decreases as reach increases, and vice versa. Each addition-
al layer of targeting technology decreases reach, increases
costs and further betrays the promise of affordable digital
scale. In short, relevance in the traditional online
advertising model is essentially non-scalable and far too
costly for all but the largest advertisers.
The cost to attain and maintain site relevance is even more
prohibitive for publishers -- the true canaries in the
media coal mine -- and explains why so many brand-name
publishers now teeter on the brink of insolvency: They
simply can't afford the price tag of relevance. Again, the
inverse relationship applies: The more highly targeted
inventory they sell, the faster they go out of business.
The promise and weight of digital scale simply turns
against them.
The same inverse relationship between reach and relevance
applies to the online ad networks as well: The more target-
ed they become, the fewer consumers they can reach and the
more it costs to reach them. Unfortunately for both the
publishers and the ad networks, they cannot effectively
pass along the increased costs to the advertisers in the
form of rate card increases -- at least not when the
explosion of high-speed bandwidth offers advertisers so
many discretionary media options to choose from, and
certainly not when average CTRs hover at statistical zero.
The results are entirely predictable: The publishers and
the networks are compelled to eat too much of the increased
costs themselves, and insolvency is never more than a
click or two away.
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The hunt for site relevancy increases costs across the
entire media food chain and decreases reach. It's time
to rethink and relocate the entire relevancy argument.
Let's begin by asking ourselves a series of simple
questions.
1. What isn't relevant to consumers? If the digital era
has taught us anything, it's that no one wants more ads
and that everyone is equipped to avoid them. Ads,
especially online, are simply not relevant to consumers.
No one wants them, and our trillion-dollar investment
in seamless user interfaces simply won't tolerate the
intrusion they require to function effectively.
2. What is relevant to consumers? Content: information,
entertainment or -- ideally -- a judicious combination
of both. Whereas no one goes anywhere to see the ads,
everyone goes everywhere specifically to see or hear
the content. The difference between ads and content is
the same idea differentiating ammo and bait, hunting
and fishing: Ads push, content pulls.
3. Where is relevance relevant? We know that no one
wants more ads, no matter how relevant, and we know
that everyone wants more content. Common sense therefore
dictates that we shift our search for relevance from
site-based advertising and look for it instead where it
more rightfully belongs: on the advertiser's sponsored
destination page. The answer is not to immerse a more
relevant ad in relevant content on a publisher's page;
the answer is to immerse the content on the advertiser's
branded destination page.
In summary, ads aren't relevant, content is. Moreover,
the ad doesn't belong in the content: The content belongs
in the ad. Think destination relevance.
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