Segmentation Hurts

What was true during the American Revolution is still true today and applies equally well to the media. Better together.

The hyperbolic segmentation of media is a landscape of diminishing returns. With some notable exceptions, media performance reviews leave more questions than answers.

The ideal scenario is one of ever improving ROI as refinements are made, not only in the creative, but critically in the media buy. To optimize results also means lowering costs.

Media technology companies have extraordinary ability to target and segment audiences and should generate strong results. At least that’s the goal. Conversely, too much segmentation can drive up costs, reduce ROI and add to the confusion.

Media-tech is very good but, in their ambition to drive their technology forward they have lost the thread. Media strategists and buyers have a tough challenge to untangle the gordian knot. Brands deserve optimized ROI, not more ways to spend money on media.

The right media mix is not a kitchen junk drawer of guess work. The right mix more closely resemble a well-organized silverware drawer.

Too often, media cannot explain itself and the default is to start faulting the creative work. It may indeed deserve the criticism, but it should not be the first place we look for improvement.

Here’s why, media spread sheets look like certainty but just as often, turn out to be an inexplicable hot mess. All you need do is ask a few probing questions. Don’t take my word for it.

Before the creative ever hit the media, it has been developed with audience insight and research and goes out into the world with some earned confidence.

Thanks to vast segmentation and targeting, media today needs to be considered within the discipline of direct response. Direct response methodology would employ control and test groups to refine the mix and optimize results to a final plan. Then, with incremental decisions, make adjustments with A/B splits of media and creative to achieve optimization.

This approach at first appears more costly but in the long run achieves optimization with assurance. Quarterly readouts of media performance are insufficient for the dynamic nature of media today. Monthly readouts in context of a rolling 30-day strategic plan that seeks optimization and learning offer brands increased efficiency and confidence.

If done correctly, ROI modeling utilizes segmentation as a tool and not an end in itself.