In marketing, psychographic targeting is unethical

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The industry agrees that there is still a lot of potential in geospatial data that can be used to address target groups at certain locations. Active Agent therefore decided to partner with the data specialist Adsquare in February. Its location data, but also other data segments such as demographics or interests, can now be used directly via the Active Agent platform.

The programmatic approach to addressing users via various end devices is also very promising. The Virtual Minds companies therefore introduced a new cross-device targeting solution at the end of the year. It makes it possible to reach people in a specific household holistically via addressable TV, desktop and mobile.

The prerequisite is that all end devices are connected to the household's Internet network, which is recognized by the targeting system. "Advertisers can use it to deepen messages that they have played on one device on another and do storytelling," explains Ralf Hammerath, CEO of Adition Technologies. "This makes retargeting more versatile and effective." As the first advertising customer, the direct bank ING the system used in a campaign on the channels of the Pro-Sieben-Sat-1 group.

"The next step will be to cross-fade advertising blocks in linear TV with targeting-driven advertising."
In the future, it is also conceivable to integrate classic television into the system: "The next step will be to cross-fade advertising blocks in linear TV with targeting-controlled advertising," says Hammerath.

She is also working on the cross-media issue German postal service. Your Concentric System enables online users to be assigned to specific microcells, i.e. groups of at least six households, using cookies. After the programmatic online contact, you can address them again with mailings to the postal address - the mailings to the other members of the microcell represent a wastage, but this is limited. According to Dirk Goertz, Vice President Dialog Marketing, should already be covered by almost 20 percent of online users.

In addition to localization and cross-media, psychographic targeting can also open up new possibilities. This is how the agency group uses Service plan a targeting system in which users are selected based on motivations, attitudes and personality dimensions. The type of person a person corresponds to is calculated by an algorithm based on surfing behavior before advertising contact on the Internet. The process became known primarily through campaigns for the mini model Countryman. It is now also used for TV advertising by assigning the surroundings to personality types.

Mini has apparently had good experiences with it: "Psychographically played advertising attracts more attention in the specifically addressed target group, since motifs and headlines are tailored to the profiles of the target group and are therefore highly relevant for this target group," said HORIZONT's request the BMW subsidiary. "We always work with psychographic profiles when it makes sense for the product and target group, and we achieve good results in the conversion."

In programmatic advertising, there are many other approaches for more target accuracy, such as contextual targeting based on the content of the websites being accessed or predictive targeting based on probabilities of behavior. But the idea that layering more and more new targetings ultimately leads to perfect precision has proven to be nonsensical - only the target group is melting together rapidly, while the costs for third-party data explode. The optimal mix can only be determined using a trial and error procedure.

In addition, one must think more comprehensively, emphasizes Sascha Dolling, Managing Partner Data Driven Marketing at the media agency OMD Hamburg: "The targeting term in the classic sense is no longer up-to-date because it narrows the view of predefined data segments. Today, it is more important to create a flexible and completely data-driven ecosystem." An optimized system then knows when, where and which target groups are best addressed. Above all, the wise use of your own data is essential.

These are still insufficiently used, observed Jens Bargmann, Germany managing director of the DSP provider Mediamath: "There is still enormous potential here." When it comes to third-party data, however, it is now quality rather than quantity that is required: "In the beginning it was about coupling as many data options as possible to a DSP." Today, however, advertisers wanted an overview rather than complexity. "That is why we parted ways with many data partners worldwide and in Germany last year," said Bargmann.

Mediamath is now working with IBM to make programmatic advertising through artificial intelligence more effective. "In the future, AI can, for example, ensure that advertisers are automatically suggested additional target groups for their campaign that match the previous ones," says Bargmann.

Above all these efforts, however, still hangs the sword of Damocles, a possibly very restrictive EU privacy regulation that can make tracking difficult. "A tightening of the data protection rules will probably not only apply to cookies, but also to other methods of personal data acquisition," warns OMD manager Dolling. "It is therefore particularly important to work on universal concentric systems in order to be able to continue tracking and targeting with the consent of the users." You always come to this point: If you don't want to work exclusively with the "walled gardens" of Google, Facebook and Amazon, log-in alliances like Net-ID and Verimi are pretty important.