Stop over-targeting. Start reaching.

This week, we're tackling a question that trips up even the most experienced marketers: how do you actually engage the right people on mass reach channels like TV, radio, or out of home? Turns out, the answer might require rethinking what "targeting" means. 

—Elena

 

Fewer than half of CMOs are maximizing reach 

According to IPA data, most marketers are over-indexed on precision targeting and underinvested in the broad reach that actually drives long-term profit. 

 

Think twice before narrowing your target. 

Why do so many marketers default to narrow targeting when the data says otherwise?

Because precision feels safe. Digital channels made measurement into an easy-to-understand numbers you can take to a CFO, like cost per click, ROAS, and conversion rate. Mass reach demands a different kind of confidence. You have to trust that building a big audience creates downstream profit, even when the attribution model can't draw a straight line from impression to sale.

What does the research actually say about targeting?

Les Binet's IPA data found budget accounts for 89% of the variation in profit payback, with the other 11% coming from ROI. They also found that brands need 30 to 60 million exposures to drive a statistically significant sales uplift.

Doesn't targeting help you reach the right buyers?

It depends on how you define "right." Growth almost always comes from light and new buyers. Narrow targeting waters the plants already growing while ignoring the rest of the field.

Can creative do the targeting work instead of media?

Yes, and often better. Tie your brand to a buying situation and the right viewers self-select. Everyone else still gets exposed to the brand.

Does targeted media have any role?

Yes, a specific one. Targeted digital belongs in the activation bucket, reaching people already in market and ready to buy. Mass reach builds the audience. Targeted activation converts them. Both have a role. The ratio just needs to reflect where the brand is in its growth stage.

Listen in on our discussion.

 

 

“Go Big or Go Home”

This IPA presentation by Les Binet and Will Davis makes a compelling case for why budget scale, not ROI optimization, is the real driver of marketing effectiveness, and why over half of marketers are targeting too narrowly to grow. 

Read the article.

 

Advertising makes brands.  

“Many a small thing has been made large by the right kind of advertising." 

—  Mark Twain, author

 

This newsletter comes from the hosts of The Marketing Architects, a research-first show answering your biggest marketing questions. Find us on Apple Podcasts or wherever you listen to podcasts.