Transcript
A (0:00)
I think the shift for folks coming from a digital world is going from who is this ad for? To what moment is this ad for? Right? What category entry points are right? Tie your brand to a buying situation and you'll show up in memory when that moment hits, no matter who that person is.
B (0:20)
Marketing Architects hello and welcome to the Marketing Architects, a research first podcast dedicated to answering your toughest marketing questions. I'm Elena Jasper. I run the marketing team here at Marketing Architects, and I'm joined by my co hosts Angela Voss, the CEO of Marketing Architects, and Rob DeMars, the chief product architect of misfits and machines. Hey y'.
A (0:40)
All.
B (0:40)
Hello. We are back with our thoughts on some recent marketing news. Always trying to root our opinions in data research and what drives business results. Today we are going to tackle a question that comes up constantly in marketing, especially when brands are invested in channels like tv out of home, maybe radio. If the whole point of mass reach media is to reach everybody, how do you actually make sure you're reaching the right people? Or maybe the better question, does targeting even mean what we think it means? And I'm going to kick us off, as I always do, with some research. I chose findings presented at the IPA Effectiveness Conference in October of last year, 2025. This was by Lesbinette and Will Davis, the Chief Data Officer at Media Lab Group. We have chatted about this research before on the podcast, but it fits so well that I just had to run it back. Their presentation was called Go Big or Go Home. And what they did was they analyzed the IPA data bank and found that Budget was eight times more important than ROI when it comes to driving marketing effectiveness. ROI only accounted for 11% of the variation in profit payback. Budget accounted for 89%. But when they surveyed 500 senior marketing decision makers, 65% believed ROI was the most important factor compared to 35% who said budget. The research also revealed that over half of marketers, 56% are targeting sub segments of customers rather than all potential buyers. And we're just saying like not all people, just like all potential buyers of their product or service. And 62% of marketers were not even targeting people over 45, despite the fact that cohort accounts for 50% of consumer spending. Binette warned that this narrow targeting, combined with a narrow media mix based towards digital performance and ROI is creating what he calls a death spiral where budgets, campaigns and profits all get smaller and smaller. No good. And the takeaway from all this is that fewer than half of CMOs actually maximize reach based on that data. But the data also shows that advertisers need 30 to 60 million exposures to drive a statistically significant sales uplift, with 200 million to a billion exposures required for major results. So broad reach and. And big media investments are really not optional. They are essential. Ange, does that disconnect between what the data continues to show about targeting versus what marketers believe surprise you? Why do you think that so many brands default to narrow targeting even when the evidence continues to say otherwise?
