Home Advertiser CPG Brands Replace Demographic Targeting With Behavioral Targeting

CPG Brands Replace Demographic Targeting With Behavioral Targeting

SHARE:

Demographic targeting and behavioral targeting have both been around since internet advertising’s early days, but big CPG brands now say behavioral targeting drives the biggest results online.

Instead of trying to hit in-target demos, they’re looking for more creative ways to connect with consumers based on purchase history or interests.

At Dmexco, Johnson & Johnson CMO Alison Lewis told attendees the marketing department used to do demographic targeting to get reach and has since shifted to targeting behaviors and audiences with dynamic messages.

For instance, the CPG created morning- and evening-specific ad creatives for its Aveeno products, resulting in a 7% sales lift, Lewis told the audience.

Likewise, P&G is “reducing annoying frequency and serving ads only when someone is receptive,” the company’s chief brand officer, Marc Pritchard, told attendees.

It’s easy to see why CPGs are moving away from demographic targeting, which has quality issues. Many segments are built probabilistically, and they’re available to anyone willing to pay for it.


“The question is how differentiated it is,” said Frances Ralston-Good, UK CEO of Hearts & Sciences. “The advantage is gone if everyone has the advantage.”

For that reason, agencies and advertisers are now working directly with parties that have unique data – whether it’s a publisher, ecommerce partner or platform like Facebook –to build unique behavioral segments.

Pritchard told Dmexco attendees P&G works with “Amazon and Alibaba to use unique ID data to reach consumers closer to when they’re ready to buy.” Behavioral targeting, along with frequency capping, is reducing waste by 20%, he said.

And Facebook develops custom audiences for Essence UK, so the agency can find users whose mobile phone plans are close to expiring.

“There are new affinities, new life moments and new targeting options popping up all the time,” said Ryan Storrar, head of media activation at Essence UK. “We have a massive test and learn culture where we need to trial, learn and measure the effectiveness of these segments.”

Must Read

Comic: An ID Bridge Too Far?

Programmatic Companies Wrestle With ID Bridging And What Counts As Fraud

In January, the Chrome browser removed third-party cookies for 1% of users, to facilitate testing of the Privacy Sandbox –  and a new controversy was born.

It’s Open Season On SaaS As Brands Confront Their Own Subscription Fatigue

For CFOs and CEOs, we’ve entered a kind of open hunting season on martech SaaS.

Brian Lesser Is The New Global CEO Of GroupM

If you were wondering whether Brian Lesser was planning to take some time off after handing the CEO reins of InfoSum to Lauren Wetzel last week – here’s your answer.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Comic: S.P. O'Middleman's

TripleLift CEO Dave Clark Abruptly Exits After Setting The SSP On A New Trajectory

Dave Clark, who’s led TripleLift for the past two years, is stepping down, effective immediately, and is being replaced by a coterie of TripleLifters.

shopping cart

Moloco Invests In Its Competitor Topsort As The Retail Media Stakes Go Up

Topsort can lean into Moloco’s algorithmic personalization, while Moloco benefits from Topsort’s footprint with local retailers in the US and in Latin America.

CDP BlueConic Acquires First-Party Data Collection Startup Jebbit

On Wednesday, customer data platform BlueConic bought Jebbit, which creates quizzes, surveys and other interactive online plugs for collecting data from customers.