• by Russell Fradin , March 4, 2009

A debate has been raging recently about whether audiences are most accurately reached with targeting technology, which rely on algorithms and software, or with vertical ad networks, which rely on the editorial judgment by humans. In the media, the debate has been sensationalized by portraying these two choices as an either/or decision.

In reality, the choice of targeting technology and vertical ad networks is not an either/or decision at all. The choice a media buyer must make is not "A vs. B", but rather "A vs. A + B". The true choice is between these two options:

ATargeting Technology

A + BTargeting Technology applied to a vertical ad network

Developing this idea further, it translates into a more specific choice between these two options:

ATargeting Technology applied to an arbitrary collection of software-certified but otherwise unreviewed and undisclosed sites (known as a horizontal ad network)

A + B Targeting Technology applied to a collection of sites, all of which are in a vertical category, each of which is approved and reviewed on an ongoing basis by experts in the category, and all of which are transparently presented to the advertiser

Targeting alone, selection 'A' faces limitations of scale. Technology can identify consumers who are expressing interest in a specific product and target them, but this group of consumers is, by definition, small and also a sub-set of the probable consumers for your product. Too much focus ensures that you are limiting your market opportunity. The combination of targeting known prospects complimented by probable prospects requires "A + B."

The reason "A + B" is possible is because vertical ad networks such as Martha's Circle, Forbes Business Blog Network, and TravelChannel FlightDeck have integrated comprehensive technology targeting. A campaign run on TravelChannel FlightDeck, for example, can be geo-targeted, behaviorally targeted, dayparted, and/or targeted by keyword, browser, operating system, and connection speed.

Technology targeting is a necessary-but-not-sufficient means of reaching your audience. Technology is useful for applying targeting criteria, but it is inferior to the expert human eye when it comes to an important task: judging whether a site is engaging to audiences and safe for your brand. This is the Human Algorithm: the marriage of expert human judgment with technology to ensure optimal targeting.

If you care about increasing audiences' engagement with your brand, you'll accept nothing less than A + B.

The Human Algorithm's ROI

What level of brand performance have vertical ad networks been driving for advertisers? We can look to numerous examples.

Glam Media, a popular vertical ad network that focuses on the women's style & fashion category, has worked with advertisers to craft campaigns resulting in marked increases in brand engagement. In a recent Victoria's Secret campaign to re-launch a bra line, Glam implemented a "Bra Questionnaire," asking women about their bra shopping and wearing preferences.

To drive traffic to the survey, Glam created in-house ads and promoted the survey across the Glam Network of independent sites. Within a three-week period, more than 5,000 respondents completed the survey. The survey data gave rise to actionable findings for Victoria's Secret, who published the survey results in a variety of circulars and industry outlets to align with its bra line launch.

We regularly sell inventory on over one hundred vertical ad networks that run on Adify's software platform and have seen a number of recent brand engagement successes. Testors, a maker of paint for model cars and airplanes, recently ran a campaign in which their users could customize their own model design online. The campaign was targeted toward parents and school-age children, and ran across sites selected by Adify-powered vertical ad networks such as Warner Brothers' MomLogic Network and HotChalk Network. Testors' strategy was to capture users' attention at the moment when they were most engaged with high-quality niche content on the topic of parenting. This strategy paid off with click-through rates (CTR) twice the industry average, as thousands of parents envisioned what kind of Testors model kit they would buy for their children for the Holidays.

Another example is Procter & Gamble's Febreze air freshener brand. The content categories chosen for this marketing campaign included Pets and Green, where the campaign selected Adify-powered vertical networks such as Petside Media Network and Sustain Lane. To ensure both reach and quality, the campaign ran on over 1,500 mid-tail and long-tail sites, each handpicked by content experts such as NBC Universal, SustainLane and Warner Brothers. To maximize user engagement, the campaign's expandable banners were complemented by Rovion units featuring a lifelike barking dog. These units delivered an unprecedented CTR for Proctor & Gamble, prompting them to book multiple repeat campaigns across similar arrays of vertical ad networks.

This is the Human Algorithm at work. It is present when advertisers stand firm and say no to blind buys that could harm their brand. It is present when agencies help their clients identify the best verticals to reach, then further refine their strategy by targeting with technology. The Human Algorithm means "no compromises, no tradeoffs," when it comes to reach, quality, precision and campaign ROI.

A+B = Performance.