By tailoring advertising only to specific consumer needs, brands are making ads less useful and missing out on sales, according to new research from Performics, Northwestern University and Microsoft Advertising
Hyper-relevancy is now prevalent in digital advertising, but may be backfiring for many brands according to a new study by the Intent Lab, a research collaboration between Performics and Northwestern University Medill School of Journalism, Media, Integrated Marketing Communications, in partnership with Microsoft Advertising.
In this study, titled Overlooked Opportunity of Goal-Driven Consumers, the Intent Lab and Microsoft Advertising undertook an online experiment of 2400 U.S. consumers that examined whether being relevant to specific consumer needs is too limiting. Marketers strive for relevance, but is relevance only about providing consumers exactly what they ask for? Can marketers provide more assistance by predicting what else consumers may need to achieve their broader goal?
The research examined the likelihood of consumers to select a search ad result based on their mindset (Goal-Driven or Item-Driven) and the type of ad experience (Limited vs. Expanded). A Goal-Driven mindset is when the consumer has a goal in mind (e.g. build muscle) which can require a variety of products and services (e.g. protein powders, yoga mats, healthy recipes, gym memberships) to attain. An Item-Driven mindset entails a specific product or service that the consumer is directly looking for. A Limited ad experience is when the consumer sees specific ads based on an Item searched, while an Expanded experience includes ads associated/related to the Item searched, but not yet specifically asked for.The study found that: