why target?

April 9, 2009 at 4:40 pm Leave a comment

I need my privacy, I need my privacy
So paparazzi, get away from me

The three most valuable items that a consumer has to trade for content are:

  • Privacy – the extent to which they’ll trade their personal information
  • Money – how much they’ll pay for a service
  • Time – the amount of their personal time they are willing to invest in a service

All media business models are derivative of these three currencies. Targeting enables the precise measurement and relative valuation of each of these currencies in order to optimize the bundled value to the advertiser.

As audiences become increasingly fragmented, that fragmentation will naturally create more target audiences. As a result of this fragmentation, more inventory will be created. However, not all of that inventory will be of a perceived high quality. In order to derive value from advertising, these audiences will need to be more accurately aggregated and valued.

Advertisers will increasingly aggregate audiences, rather than dissect them…

We are moving from a multi-casting world to an aggregate of unicast consumers.

Tell me it isn’t so… I’m listening.

Entry filed under: Media. Tags: , , , , , .

the disruption of IP occidental, oriental, new and old

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