Making Advertising Work Better for the Customer

Yesterday, MediaPost's Video Insider published an article by Michael Kokernak, founder of Backchannelmedia, entitled "Scientific Advertising and Free Samples." Mr. Kokernak predicts a few of the ways in which interactive television commercials would change the way marketers approach advertising.

First, he says that television advertising will no longer be driven by audience size and demographics. Indeed, demographics are an insufficient predictor of consumer preferences. My buying habits are more affected by my psychographics - such as my lifestyle (I'm a marketer; I run; I draw; I play piano; I'm actively involved in my church), my beliefs, and my friends - than by the fact that I'm a 20-something white American female.

With traditional television advertising, especially on the major networks, it was nearly impossible to segment viewers by anything but audience size and demographics. But since interactive television would enable viewers to pause, click, and further pursue the specific ads and information in which they are interested, marketers can get to "know" the likes and dislikes of each individual viewer, and to customize their advertisements according to those psychographics.

Second, Mr. Kokernak predicts that interactive television commercials will be more "keyed" to results than traditional tv advertising is. The ultimate goal of advertising, as Mr. Kokernak points out, is to drive sales. But so many factors contribute to the consumer decision-making process, that it is difficult to pinpoint if and how a specific ad led to a particular purchase. Except in routine or spontaneous purchases, most consumers' decision to buy a specific product comes after a long period of inputs, including previous brand experience, brand awareness, brand reputation, knowledge of the product category, opinions of other users, a history of advertising, point-of-sale marketing, customer service, etc. Rarely can a sale be attributed to any one factor, such as a particular ad.

Interactive television ads could help to more accurately measure results by capturing the actions of the consumer directly after viewing the ad. Did the viewer click on the ad? Did he spend much time on the website? Did he register on the site, or subscribe to email/SMS/RSS updates? Did he search for the product online? Did he use keywords from the ad in his search? Did he actually purchase the product online immediately after seeing the ad?

By tracking these results, marketers can determine whether an ad was successful in achieving "intermediate" goals, such as increasing the viewer's awareness of the brand, or improving the brand reputation in the mind of the viewers, or drawing the viewer to the website, or creating a positive brand experience for the viewer, or leading the viewer to "become a fan" and subscribe to updates. And because of e-commerce, marketers can also see when their interactive television commercials actually did lead to an immediate sale.

I think the jury is still out on how consumers will receive the idea of television and Internet rolled into one. It could be a huge success if done well. And whether or not "interactive television," as we imagine it, becomes the norm, interactive technology in general should enable marketers to make their communication more relevant and more useful to the individual consumer.