But one day, the spit hit the fan. Americas TV
audiences were suddenly splattered over a hundred different frequencies. It started with
HBO and CNN and before you could blink, there were enough new special interest outlets to
span the gamut from hangnail prevention to high school ping pong.
From broadcasting to narrowcasting
The game was forever changed. Now, instead of waiting with a net for all the usual
suspects, marketers had to track them down. And instead of simple demographics such as
age, income and gender, marketers had to search via the targets interests, quirks,
delights, ambitions, obligations, tastes, desires and even their chronic conditions.
As the search for particular prospects got more intense and much more expensive,
marketers began to rely more and more on direct means of communication. Today, direct is
the fastest growing segment of the advertising industry.
Direct offers the advertiser a pipeline to particular prospects, without the waste of
dealing with those who dont make the cut.
Drivers wanted, but not you, sir
Last year, when Lexus planned to offer expensive golf clubs for test drives in their
new GS 300, they were able to keep unqualified prospects down to zero. They first targeted
by zip code, then refined the list to incomes over $150,000, then to golf enthusiasts,
which they purged to get Mercedes and BMW owners, which they refined to only those who had
bought or leased their cars, new. At that point, they were pretty sure that the very
expensive mailing, backed by personal phone calls, wouldnt contain a single prospect
who might be incapable of saying "yes."
And this was just a direct, snail-mail exercise. Imagine the precision possible at the
next junction, when telephone, TV and computer are joined.
Tracking purchasing patterns
Things will be different even when you shop at your favorite supermarket. Once the
scanner links your purchase with your credit or debit card, your pattern will be in the
data bank. From then on, if youve been, say, a dog food buyer, your home TV will
stop receiving cat food commercials.
This precision in targeting is also forging new tools for marketers to make
brand-switching appeals. Take a customer whos just bought a new Ford pick-up. This
person has a three- to five-year period until he buys again. This gives GM, Toyota, and
Daimler-Chrysler a wooing window in which to establish a conquest relationship.
Theyll want to zero in on him, personally. Interactive, direct methods will be the
way.
The 80/20 rule rules
In most product or service categories, the 80/20 rule applies and defines most
marketing efforts. (This is where 80 percent of a brands business comes from a
heavy-user cadre made up of 20 percent of its total customers.) And since it costs far
less to keep an existing customer than to get a new one, an advertiser who ignores
relationship marketing is probably wasting a large part of his budget. Thats
probably a good reason for you (wherever you are) to become more adept and attuned to the
ways and means of the new targeting.
Dennis Altman is an advertising consultant and UK professor of advertising and public
relations.