What Scares Corporate Marketers

eyeball “It’s pretty scary,” Scott Hagedorn tells Advertising Age.

Who is Hagedorn, and of what is he afraid?

“We are not reaching young audiences effectively,” says this CEO of Hearts & Science, the marketing agency that describes its work for “the world’s biggest brands” thus:

Our clients shift from brands that push content out to brands that pull people in. We’re creating new relationships between brands and people like never before.

The crisis to which Hagedorn refers is the fact that:

a growing audience of people who aren’t tracked — and therefore can’t be targeted or measured — with traditional tools and platforms. They consume media on mobile devices and OTT. They’re “cord cutters” and “cord nevers.” And they represent tremendous buying power for brands. The stakes are high—47% of Millennials and Gen X appear “unreachable” within standard planning tools, and 66% of their media consumption isn’t tracked, either.

Hagedorn clarifies in today’s Wall Street Journal:

And if it can’t be measured, it can’t be properly targeted or planned against as part of a cohesive, cross-platform campaign.

“Planned against.” Write that down, TCT readers.

Meanwhile, not to worry, overclass. Answers, as always, are being perfected by heroes like Hagedorn. Thanks to the emerging standard practice of “integrating code to measure in-app content and ad consumption…on literally every [video-watching] platform, device and client app,” the crude surveillance methods of the past are on their way out.

The days of yore wherein the [Nielsen] panel served as the proxy for an audience — setting behavior, reach, and cost estimates — fall out of the picture. Google and Facebook , along with telecom “pipes” like AT&T and Verizon , and retailers like Amazon, have massive install bases that are logged in across screens, making identity-based marketing not only feasible, but the most accurate solution to capture these new consumer behaviors.

We’ll no longer need the panel as proxy for an audience, as we’ll have a deterministic view of the people in the audience. Identity-based marketing becomes the solution that holds consumer identity as the currency against which we measure, plan and buy media across devices and platforms.

As many of these platforms own the consumer experience from end to end – not just identifying their audience at a granular level, but also creating the content being consumed – it’s only a matter of time until these identity-based currencies and identity-based experiences become the marketer’s art. [WSJ, 9/22/2017]

Trouble in the Ministry of Truth

Big Brother poster Apple has touched off a pretty major row in the halls of marketing. Apparently, the next version of its Safari browser will restrict the creation and retention of “cookies,” which are little computer codes that allow big businesses to collect increasingly rich data, without acknowledgement or permission, on internet users. Why Apple is expressing this glint of conscience is an interesting question. Far more interesting and important, though, is what the now-brewing fight confirms about the nature of big business marketing.

Corporate marketing is scientific management of off-the-job behavior. Advertising, a subordinate phase in that endeavor, is lying for money.

If you doubt that, take a look at the big advertising trade groups’ “Open Letter” to Apple. Here’s the operative paragraph:

Apple’s unilateral and heavy-handed approach is bad for consumer choice and bad for the ad-supported online content and services consumers love. Blocking cookies in this manner will drive a wedge between brands and their customers, and it will make advertising more generic and less timely and useful. Put simply, machine-driven cookie choices do not represent user choice; they represent browser-manufacturer choice. As organizations devoted to innovation and growth in the consumer economy, we will actively oppose any actions like this by companies that harm consumers by distorting the digital advertising ecosystem and undermining its operations.

Let’s translate this passage from marketing-speak into truth, shall we?:

Apple’s unilateral and heavy-handed independent approach is bad for reflective of consumer* choice and bad for the ad-supported online content and services consumers love tolerate. Blocking cookies in this manner will drive a wedge between brands and their customers, and it will make advertising more generic and less timely and useful it harder for corporations to harvest the data they need to keep manipulating people’s “free time” experiences. Put simply, Apple’s proposed machine-driven cookie choices do not represent user choice marketers’ existing dictates; they represent browser-manufacturer choice internet users’ clear, strongly-held preferences and best interests. As organizations devoted to innovation and growth in the consumer economy micro-managing off-the-job behavior on behalf of the corporate overclass, we will actively oppose any actions like this by companies that harm consumers corporate investors by distorting the digital advertising ecosystem and undermining its operations.

*Advertisers’ Thought Bubble: Ain’t it a great scam that we still get away with calling people “consumers”?

55,235 Market Segments

According to ProPublica, Facebook now provides its clients (read: corporate marketers) with the capacity to target 55,235 different interest groups, on which FB also collects heaps of outside reconnaissance via so-called data brokers. Per ProPublica:

The categories from commercial data brokers were largely financial, such as “total liquid investible assets $1-$24,999,” “People in households that have an estimated household income of between $100K and $125K,” or even “Individuals that are frequent transactor at lower cost department or dollar stores.”

Big Brother was an amateur.

Pokemon Go and the Frontiers of Corporate Spying

pokemon logo Advertising Age today includes a typically comico-chilling observation from an ad industry worker. Speaking about big business marketers’ growing ability to gather data about cell phone users’ movements, locations, and behaviors, here’s what “Kirsten McMullen, chief privacy officer at mobile ad firm 4Info” tells AdAge:

Marketers and consumers have both become “way more comfortable with location data being used,” Ms. McMullen said.

The punchline and payload?:

[S]he also added, “Consumers remain largely unaware of it.

Of course they do, but it doesn’t stop the professional DoubeThink required for Ms. McMullen to keep doing her job.

Meanwhile, as its design ensures, corporate capitalism continues its bold march toward stronger and better market-totalitarian behavioral engineering:

While 4Info argues that using store visit data to gauge ad effectiveness is less relevant than measuring actual purchase transactions, which the company does for most of its packaged-goods advertiser clients, Mr. Moxley acknowledged the value of mobile location data for measuring mobile ad campaigns.

“The key to the mobile device is it goes everywhere,” he said. “Nobody carries their TV into the store.”

Quite so, and, as TCT always says, history’s state totalitarians must be looking up from Hades purple-faced, jealous over this deniable system’s ability to keep on rolling. Soviet citizens in 1982 would never have blithely walked around with little Brezhnev boxes in their pockets, or would at least have known who they were serving by doing so. Here, it’s “freedom.”

Least Surprising News: Verizon is Spyware

eyeball The shameless profit ranchers we in the USA allow to sell us our cell phone service not only provide us massively over-priced substandard products, but turn around and sell our data to other corporate overlords. As always with big business marketing, it only grows. According to Advertising Age:

Under the radar, Verizon, Sprint, Telefonica and other carriers have partnered with firms including SAP, IBM, HP and AirSage to manage, package and sell various levels of data to marketers and other clients. It’s all part of a push by the world’s largest phone operators to counteract diminishing subscriber growth through new business ventures that tap into the data that showers from consumers’ mobile web surfing, text messaging and phone calls.

[M]arketers and agencies are testing never-before-available data from cellphone carriers that connects device location and other information with telcos’ real-world files on subscribers. Some services offer real-time heat maps showing the neighborhoods where store visitors go home at night, lists the sites they visited on mobile browsers recently and more.

SAP’s Consumer Insight 365 ingests regularly updated data representing as many as 300 cellphone events per day for each of the 20 million to 25 million mobile subscribers. SAP won’t disclose the carriers providing this data. It “tells you where your consumers are coming from, because obviously the mobile operator knows their home location,” said Lori Mitchell-Keller, head of SAP’s global retail industry business unit.

The global market for telco data as a service is potentially worth $24.1 billion this year, on its way to $79 billion in 2020, according to estimates by 451 Research based on a survey of likely customers. “Challenges and constraints” mean operators are scraping just 10% of the possible market right now, though that will rise to 30% by 2020, 451 Research said.

And so it goes…

Consumer Theater!

In the least surprising news possible, there’s a new form of marketing research. It is Consumer Theater, a new way of doing focus groups that is “a proprietary Firefly and Second City methodology.”

First off, a major Hicks Dictum Award to the moribund corporate-comedy shithouse, Second City.

Meanwhile, take a look. This is what “co-creating with the consumer” looks like. The role of “the consumer,” as always? To divulge more.

consumer theater