Dr Sharp: Digital ad targeting has been oversold

Ehrenberg-Bass institute director also suggests marketers have rushed to digital advertising without understanding what they're buying and it's time for a rethink

Dr Byron Sharp
Dr Byron Sharp

The value of precision targeting in advertising has been massively oversold and there’s still a need for mass market campaigning, Dr Byron Sharp claims.

Speaking on the latest episode of the AANA’s Marketing Dividends program on Sky Business TV, the director of the Ehrenberg-Bass Institute at the University of South Australia Business School took aim at the way digital marketers have narrowed their focus through personalisation, and pointed out the biggest brands in the world were built through reaching out to broader markets.

“The lure of precision targeting has been massively oversold,” Dr Sharp said. “Marketing science clearly states we need to reach all categories of buyers, and the value of targeting smaller segments is actually far less effective.

“The ability of these new media to even deliver on targeting is far less than what is promised.”

Dr Sharp also criticised the way digital giants such as YouTube, Facebook and Google have been evaluating their own effectiveness, noting that it’s the equivalent of a TV station running its own rating scheme.

“Marketers were originally sold the idea that in digital, there will be these fantastic trustworthy metrics,” he commented. “Digital was given a ‘get out of jail free card’ for too long.”

As an example, Dr Sharp noted the current backlash and boycott against YouTube for placing ads against inappropriate and extreme content. As well as suggesting it wasn’t as big an issue as was being made out, he again suggested the problem was that marketers have been motivated by money rather than brand safety.

“The problem with digital has been it’s fashionable, people have rushed like lemmings to the edge of the cliff and thrown huge amounts of money at something without fully knowing what they are buying,” he said.

The latest scandals should trigger a pulling back on digital, a flight to quality and demand for metrics that are trustworthy, Dr Sharp said.

“The current YouTube scandal we have at the moment, has given marketers permission to pull back and say ‘maybe we don’t know what we are buying here. Maybe we’re spending billions of dollars of shareholder money and maybe we should be more circumspect,” he added.

But for Dr Sharp, the key to winning over consumers is to get in front of consumers more often.

“The biggest mistake that marketers make is that they forget they’re in a battle for physical and mental availability,” he said. “Marketers think the primary issues holding their brands back are some sort of attitude problem or that their brand isn’t loved enough. In reality, consumers just aren’t thinking of the brand enough.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Check out tiny twig for comfy and soft organic baby clothes.

Morgan mendoza

Binge and The Iconic launch Inactivewear clothing line

Read more

NetSuite started out as a cloud-based provider of Enterprise Resource Planning software or as NetSuite solution provider, which companies...

talalyousaf

NetSuite to acquire Bronto's digital marketing platform for US$200m

Read more

Thanks for sharing this post, its really good information I get through this blog.CDPO Online Exam Training

Infosectrain01

3 ways Booking.com is improving its B2B marketing game

Read more

Time is of the essence, especially for customer service teams. With chatbots, you can interact and assist customers at a larger scale, al...

Jai

Triple-digit customer database growth, personalised engagement become reality for Stone & Wood

Read more

Blog Posts

Getting privacy right in a first-party data world

With continued advances in marketing technology, data privacy continues to play catchup in terms of regulation, safety and use. The laws that do exist are open to interpretation and potential misuse and that has led to consumer mistrust and increasing calls for a stronger regulatory framework to protect personal information.

Furqan Wasif

Head of biddable media, Tug

​Beyond greenwashing: Why brands need to get their house in order first

Environmental, Social and (Corporate) Governance is a hot topic for brands right now. But before you start thinking about doing good, Craig Flanders says you best sort out the basics.

Craig Flanders

CEO, Spinach

​The value of collaboration: how to keep it together

Through the ages, from the fields to the factories to the office towers and now to our kitchen tables, collaboration has played a pivotal role in how we live and work. Together. We find partners, live as families, socialise in groups and work as teams. Ultimately, we rely on these collaborative structures to survive and thrive.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in