February 26, 2014

Why is targeted advertisement so hard?

"If you're not paying for the product, you are the product."

This doesn't mean that if you are paying you will get a better service, but that you are paying to not receive (targeted?) advertisement.

But I want ads. Quality ads. Ads that are useful. I don't want to log in into a Hungarian hotel and get my ads in the local language. I want to be recognised at a level that becomes useful for me. Of course if your ads are not targeted, then I won't pay not to have them! I will change the supplier. I will uninstall you. That's easy for me. Customers research constantly today. Back in the mama&papa stores, you would buy shirts in the same store for years. Today consumer habits are very spread in terms of loyalty. People are in constant research mode, as a consequence of being constantly being bombarded with information.

Take Spotify. They know the music I listen to, hence much better analytics could derive which ads I would want. But their business model goes towards collecting subscriptions. It's like the whole world is being rented today. I wouldn't mind the occasional ad, if only it would be targeted and I could control it. Facebook style.

Bottom-line: because it's hard to live from targeted ads, we'll just bombard you to death with the same ads until you subscribe.

What if these analytics services could also be rented? Do all companies want to develop these capabilities in-house? I don't think so. Someone has got to have the ability to make it more agile and easy to reuse.

When programming languages were pointing into several different directions in mid 90's, the promise of a reusable programming language, naturally portable to every system without the need to change the programme, emerged so quickly and Java got a huge amount of attention. Promises were made that only many years later were fulfilled. I think the same should happen with customer analytics used in the context of targeted ads.

Anyone out there who cares to help the likes of Spotify to change their business model?

Hurry up.



No comments:

Post a Comment