in Data & Insights

Quantcast 101: PART II

Why Addressability?

In the broadest sense, advertising is about reaching the largest number of people who have the right audience characteristics, or composition, to drive some subsequent behavior (within the available budget).

Traditionally, media buying decisions have been made on the basis of the aggregate audience characteristics of an entire property. For example, a buyer may choose to run advertising on a financial news website because 75% of the audience is higher income males. Well, that works fine if you can find enough properties that index highly to achieve your reach objectives – i.e. you can deliver ads to everyone you care about cost effectively – but given the often narrow audience composition objectives of an advertising campaign and the fragmented nature of digital media it can be hard to find and enter into contractual agreements with enough properties to hit both your reach and composition objectives (and it also means that the financial news site never gets to sell advertising to a marketer who wants to reach high income women).

This is where addressability is powerful. Perhaps only 20% of the visitors to site A align to the advertiser’s composition requirements – on a per property basis they’d never buy site A. But, if you could buy the right 20% of visitors, site A becomes an additional reach point for your campaign offering high audience composition. The owner of Site A is happy because they’re now able to better monetize a greater portion on their audience and visitors to Site A receive relevant messages, rather than those aimed at the other 80%. What’s more, improved monetization means that the publisher is better able to continue to produce high quality content for their entire consumer base.

Next up – What does Quantcast do?

Check back soon.