Tuesday, March 21, 2006

Article on Engagement

There was an interesting article in the NY Times today called New Rules of Engagement that talks about advertisers wanting to move to a metric of levels of engagement. Several on the panel cited examples of engagement, but the most interesting to me was an effort by Pepsi to roll out a promotional campaign that will offer consumers customized ring tones for cellphones, which can be downloaded from the Internet with codes found under soft drink bottle caps.

Engagement in this sense is the result of relationship-based marketing that is most effective in targeted marketing. Randy Falco, president and chief operating officer at the NBC Universal Television Group said that "an industry built on its ability to reach large groups of people at once" is striving "to expand and transform itself by reaching one consumer at a time."

Giovanni Fabris, vice president and international media director at McDonald's said Ads delivered by cellphone to those who request them will stand out because of their "contextuality," that is, their ability "to deliver the right message to the right person at the right time, which is not provided by the traditional media."

Two great concepts: Engagement and Contextuality. The first is difficult to get our hands around and the second, difficult, but not impossible to execute. The two go hand-in-hand and may turn traditional advertising on its head.

-Andy

1 Comments:

At 8:42 AM , Anonymous Jaimie Charlton said...

Hi Andy,
I think your engagement of potential customers is not difficult with your system. The tougher question is what do you say to them?

The first reaction is to tell the target audience (in this case probably one person) about "news" involving something they bought or did in that past. That's not a bad idea, but how does it sell new products?

For example, a grocery store customer has been identified as being fond of frozen dinners. The store's targeted advertising dutifully informs him every time there's a sale on frozen dinners and sometimes the customer takes advantage of them and buys more dinners. It seems like the system has worked. But maybe not.

What if that customer would like frozen pizzas if he only knew about them? I know this is an absurd example, but I think it illustrates the problem of knowing what new information should be presented to targeted customers. It could be he would spend twice as much if he only knew about frozen pizzas.

Maybe a reader has some ideas on how to introduce members of the database to new products that they are likely to buy.
Regards,
Jaimie Charlton
Images and Motion

 

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