Compete.com launched a new product called Behavior Match that I read about in an advertisement cloaked as data driven article in Seeking Alpha. (Reprinted (or originally) on their blog)
This comes dangerously close to my day job, so I want to be clear that I am just reacting to what I read in that article. The product might be great. Compete is certainly great. Etc…..
Anyway, I have to say that I feel like they kind of miss the boat. I have always felt like looking at the size of the target market and looking at the composition index can be misleading (less so if the composition index is off the charts). So in the first example, Compete.com indicates that “Among this list, aol.com is the best advertising opportunity for Johnson and Johnson to reach young and expecting mothers”.
Is it really? Probably, relative to a site like Yahoo, this is true. The CPMs are likely comparable and the fact that AOL indexes higher implies that fewer impressions are wasted on poor fit. However, if sites on the list like Myspace and Youtube have CPMs that are much lower (likely), the cost per relevant impression may be lower.
Let’s move on to the second chart.
Here, one of the stated conclusions is: “A campaign focused across many torso domains has the same reach opportunity as a larger internet property”. (A torso domain being neither head nor tail of the Internet.)
Once again, that is a broad statement. But what if all the people visiting hbwm.com also visit kidprintables.com. Then you are not expanding reach, you are just uncontrollably increasing frequency. You may run a campaign on all these torso sites and only reach 50,000 people. Furthermore, you probably paid a premium price.
What is interesting about this is that much of this new product is seemingly available in comScore today. In fact, comScore offers reach penetration reports that will show how many of the hbwm.com people also visited kidprintables.com. Where comScore falls down, and a service that would have huge value to advertisers, is that their tool is overly simplistic. I want to create bundles of sites and compare their reach in certain demographics and the aggregate composition index.
A tool like this would allow advertisers to make smarter buys and enhance our understanding of how a target market uses the network.