On the buyer side, a people-based model will eliminate impressions served to the wrong consumer, eliminate non-viewable ads and remove fraud, reducing media costs by up to 50%. In other words, every $1 invested into an addressable, people-based channel buys twice what it would when buying direct. This is largely due to a significant reduction in wasted ad views caused by poor targeting and non-viewability issues that occur in the traditional impression-based buying strategy. Additionally, more working media can be gained by the elimination of the “ad serving tax,” which are the fees paid to unnecessary technology vendors who have become part of the programmatic process, adding complication and expense without commensurate value.
The benefits of a direct people-based model to publishers are just as significant as they are to advertisers. Once a publisher is able to establish their inventory as people (as opposed to impressions) the value of each ad view is increased. Impressions, which have historically been used as a proxy for any given consumer, have limited value. What we are seeing on the sell side is instant scarcity driving real value for both sides of the transaction; there are no remnant people. Being able to identify a unique person in real time ensures that the perfect ad can be served, maximizing the value of the page view that is generated.
Ultimately, a people-based model allows advertisers and publishers to work together directly, treating a site’s audience as a direct market. In addition to eliminating the need for technology middlemen, which saves costs for both sides, this paradigm shift creates value across the entire media process driving efficiency, addressability and scale in the comScore 200.
Finally, it is worth noting the other real winner of people-based marketing: our consumers. For the first time, they can truly be treated to advertising that is relevant and accounts for them as the unique individuals they are. People-based buys allow for a consistent, open dialog with a consumer that respects their preferences and existing relationship with a brand. It is a crucial step in delivering advertising that is truly useful to and welcomed by consumers.
Sonobi’s latest whitepaper is designed to help industry professionals and thought leaders on both the buy and sell side understand the game-changing advantages and massive cost efficiencies made possible by a people-based model. It expands all of the points raised here, and digs deeply into the real value of people-based marketing, which is already changing how digital is bought and sold.
No matter one's role in advertising, people-based marketing represents a significant evolution, one that we believe is important for anyone interested in media to understand. Download the full report below.
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