The New Panel-Based Audience Measurement for Brands
With the prevalence of social data, yesterday’s panel-based measurement for digital campaigns is starting to look like the wood paneling in your grandmother’s den: A bit out of fashion. Marketers have been trained to buy media based on demographics, and it is natural to want your ads to be where you think your customers are. For BMW’s new entry level sedan, that might mean finding the media that males aged 26-34, who are earning 75,000 or more a year, consume. That makes a lot of sense, but it also means that your paid media will always compete alongside ads for your competitors. That is a big win for websites with premium inventory that fits your demographic, because it means scarcity and high prices for marketers.
What if there was another way to measure what audiences are right for brands? And what if that data were based on a panel of a few hundred million people, rather than a few thousand? Well, thanks to Facebook and Twitter, we have just such a web-based panel of consumers, and they are always eager to share their opinions in the forms of “likes,” “follows,” and (more importantly) engagement. Social listening platforms have been able to tell brands what people think about them directionally, and measure how certain marketing efforts move the social needle. Listening is great, but how do you get to hear what to buy?
A company called Colligent has been going beyond listening, by measuring what people actually do on Twitter, Facebook, and other social sites. “Liking” is not enough (when me, my 10-year old daughter, and my mom “like” Lady Gaga, the audience I am a part of gets too broad to target against). What matters is when people express true affinity by sharing videos, tweeting, and commenting. When people who are nuts about a certain celebrity are also nuts about a certain brand—and that relationship over-indexes against normal affinity, you have struck real social gold: Data that can make a difference. Pepsi recently used such data to choose Nicki Minaj as a spokesperson over dozens of other choices.
What about other media? Nielsen defines television, Arbitron measures radio, and MRI defines magazine audiences by demographics. Now, for the first time, marketers can use social data—gathered from panels nearly as large as the buying population—to define audiences by their own brand and category terms. That’s a world in which Pepsi can purchase “Pepsi GRPs” across all media, rather than GRPs in a specific media.
This is the way brands will buy in the future.
[This post originally appeared on 2/21/13 in The CMO Site, a United Business Media publication]