Thursday, July 21, 2011

The Double Edged Sword Of Data

Data is an interesting thing.

It can deceive us.

It can tell us how well a commercial is working.

It can tell us how poorly a commercial is working.

The question is, do advertisers really want to know the latter? Do advertisers really want to know that from their 10 million impressions, perhaps only 10% of the audience paid any attention to their commercial at all?

I mean, all advertisers know this in their soul.

But do they want it spelled out in black and white?

It’s much easier to sleep at night believing that your $10 million dollar advertising budget will have the chance to impact 100 million people.

The size of the audience makes the cost work.

But when the data tells you that your $10 million only impacted one million people, that hurts. It means that advertisers have to think of a new way of doing things.

One of the most pressing being how do advertisers affordably create great advertising knowing, and knowing is the key word here, that only a couple of thousand of people will actually pay attention to it.

Today, the average thirty-second spot costs in the neighborhood of $360,000 to produce.

Justifiable when you think millions will be viewing it.

Expensive when you know only 100,000 spent any time with it at all.

Sometimes ignorance is, indeed, bliss.

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