Welcome to Nerd Alert, a series of special episodes bridging the gap between marketing academia and practitioners. We’re breaking down highly involved, complex research into plain language and takeaways any marketer can use.
In this episode, Elena and Rob reveal how third-party audience targeting often delivers worse accuracy than random guessing, with demographic targeting hitting the right audience only 24.4% of the time compared to 26.5% accuracy from random targeting.
Topics covered:
- [01:00] "How Effective is Third Party Consumer Profiling and Audience Delivery"
- [02:00] The difference between first-party and third-party data
- [04:00] Study results: 59% accuracy sounds good until you learn random targeting hits 26.5%
- [05:00] Raw data accuracy drops to worse than random at 24.4%
- [07:00] Interest-based targeting performs better than demographic targeting
- [08:00] Third-party audiences are "economically unattractive"
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Resources:
Lambrecht, A., Tucker, C., & Wiertz, C. (2019). How effective is third-party consumer profiling and audience delivery? Evidence from field studies. Marketing Science Institute Working Paper Series, 19-105.
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