
Say you buy a product. And your friends like the same stuff. Wouldn't it make sense for a marketer who has you as a customer to target your friends, too?
This concept of
homophily -- that birds of a feather flock together, or more accurately, buy similar stuff together -- has been around for decades, yet it's been difficult for advertisers in the past to really take action on it. Demographic targeting systems such as
PRIZM try to group consumers into similar socioeconomic categories, but that's just a rough theoretical cut. In a perfect world, you'd want to measure exactly what people buy, then find their real-life friends most like them, and then push similar offers to those friends.
That future has arrived in the form of
33Across,
OwnerIQ and similar services that track individual data online. (If the world of online media buying seems confusing, all you have to know is marketers can either buy
space or
data;
space is the old world of buying banner ads on NYTimes.com assuming NYT had a good audience, while
data is the new world of finding ways to serve online ads to your target consumers directly no matter where they pop up online.) 33Across is one of most fascinating new online buying providers we've encountered because it expands your narrow target by adding those consumers' friend connections.
Here's how it works:
1. Tag. Say you're a marketing manager at Nike and want to target people interested in running gear. You can pixel your Nike landing pages online to push cookies onto the computers of everyone who visits. This is a good start -- but will create a small population target vs. the millions of other potential buyers online.
2. Add friends. 33Across can compare that data set to 125 million users it tracks online, or more specifically, the visible "friend" connections between these users (no personally identifiable information is collected). The data is observed via any social media tool with public visibility; Facebook, for example, does not resell data to marketers, but may widgets and applications inside the Facebook ecosystem can be observed.
3. Expand the target. If you assume Nike was able to tag 500,000 consumers who visit its sites, 33Across might expand that target to 3 million "strong ties" (users who communicate to their friends very frequently), 8 million moderate connections, and an extended network of 20 million. Nike has just increased its online target by 6x to 40x ... with the logic being friends of its most loyal consumers are likely to be interested in fitness products as well.
It's a fascinating use of social media to reach people most like your best customers. As 33Across explained to us, "by targeting people socially connected to your customers, you're reaching someone with a propensity to act like and respond like your customer." At a CPM a fraction of those old-school marquee sites, this new expansion of your target audience seems worth testing.
Image:
Cliff1066