The Upcoming Revolution in Marketing -- Conclusion

Why is this a revolution Because it will institutionalize a standard way for incorporating impression qualityvalue in terms of probable outcomes in the CPM Because this has been missing for more than half a century impact per impression has not been explicitly built into the CPM Instead the CPM has been left to float based on the blind hand of the market in other words muddy implicit guesswork has been allowed to set the CPMThis is not the sign of a rational market nor has it led to a winwin Nash equilibrium for buyers sellers and society The most blatant sign of the damage this omission has done is that total US TV adspend has stayed in the 6070 billion range since 2005 while US digital adspend has grown from 125 billion in 2005 to 240 billion in the same timeframe mostly on the basis of CPM and selfreported audienceefficacy estimates plus low cost of entry addressability interactivity and the shiny new object factor The beneficiaries are a handful of companies and those most damaged by the situation are the advertisers agencies all other media and the other businesses whose success depends upon the success of advertisers as well as collateral societal damage Only 18 of top national advertisers studied by BHC Fox McKinsey and Standard Media Index 20142019 grew brand share during those years in which digital adspend by national advertisers grew the most since 2005Common sense would indicate that most digital advertising scrupulously avoided by consumer eye movements could not even come close to the impact of linear TV advertising and yet the way the herd stampeded after the CPM is a fact of history not speaking well for common sense nor the respect paid to media research empirical sciencesThe Impact Revolution widespread use of impact weights on CPMs in media selection will transform marketing into a business nearing a true science and make more companies successfulThis is not a story about RMT although RMT is playing a catalytic role Using RMT as a predictor of sales effects and branding effects practitioners will notice that some money is still being left on the table because of other mediating factors which RMT leaves out Other companies will strive to add in those missing factorsThe most obvious one is ad clutter Ad clutter is a mechanical variable ARF Model level one VehicleAd Distribution whereas RMT operates at the human psychological level ARF Model levels two and three Vehicle Exposure and Ad Exposure Adelaide is the company currently leading the charge to go beyond viewability and to estimate an Attention Unit AU value for media contexts Ad clutter is one of the factors at the mechanical delivery level and is used by Adelaide along with other factors at the mechanical level to measure what RMT doesn39t measure that ought to be reflected in the Impact weight applied to the CPM in media selection So Adelaide is very much a part of the great revolution as are other companies in existence today and to come Welcome them all in and use those who give you the best results expecting that it will probably be a combinationThe way I think of what RMT does not measure which is relevant to impression value is the distractability of an environment Each media environment has its own builtin level of distractability which needs to be measured and from our point of view that is the service that Adelaide is providing while RMT is finding the audiences and media environments that most amplify the specific ad by their resonance with that adDuane Varan of Media Science says that we ought to be concerned about inattention not about attention Firstly because you don39t need to maximize attention you need to get a sufficiency of it and secondly because inattention can be measured more precisely and comprehensively than attention since Media Science has found that there are many types of attention and scientifically pursuing the subject of all those types will take us down a long rabbit hole A trip we can perhaps pragmatically set aside for pure researchers divorced from daytoday concerns of industryThis suggests that Adelaide might consider itself focused on distraction indexing rather than calling it attention indexing but a rose is still a rose whatever we choose to call itCome the revolution all companies negatively affected by digital shall rise again Digital itself will feel no pain runaway growth in the advertising business will plateau and be replaced by the development and exploitation of new technologiesClick the social buttons to share this content with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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The Upcoming Revolution in Marketing -- Conclusion

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Bill Harvey

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