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Brand arbitrage

I told Steve Smith the other day that many of the Behavioral Insider columns are so far out on the bleeding edge that they don’t have value to the day to day practitioners in the industry. The Behavioral Insider team at MediaPost has responded with some great stuff recently. I thought their interview with Burst Media was great.

While behavioral targeting offers great value for direct response marketers by allowing them to pinpoint consumers most likely to convert, many direct response marketers have found their ROI is still more than acceptable by buying large volumes of inexpensive run-of-network impressions.

Brand marketers are different. They are so concerned with the quality of the inventory they run on (and brand associations created), in many instances they find themselves paying exorbitant prices for small pieces of inventory. Behavioral marketing allows brand marketers to arbitrage the people they are seeking to less expensive inventory. And not all less expensive inventory is “risky”. Mail inventory is a great example of inexpensive inventory that is high quality but has low demand.

It’s great to see this message getting distributed in the market.

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