Marketing expert Mark Ritson discusses the importance of behavioral science in marketing, including framing and pricing strategies. He explores the advantages of online experimentation, the drawbacks of relying solely on digital data, and the importance of brand loyalty and consumer preferences. The podcast also dives into the concept of ultra targeting in advertising and raises ethical questions about dark advertising.
Behavioral science in marketing should go beyond short-term impacts and focus on understanding customer behavior and decision-making for overall strategy.
Differentiation and trust are key drivers for brand loyalty and purchase decisions, which can be built through research, addressing customer needs, and leveraging traditional advertising channels.
In the evolving TV landscape, the battle for dominance will be determined by branding, quality of data, and trust, with addressable TV offering new opportunities for targeted advertising.
Deep dives
Behavioral science and its role in marketing
Behavioral science is seen as a minor but important field within marketing, focused on understanding cognitive impacts and short-term influences. However, the broader definition of behavioral science, as the basis for understanding the market, is not receiving enough attention. The challenge lies in understanding what drives customer behavior and decision-making before making tactical choices. While behavioral science is often used for packaging, pricing, and communication, there is untapped potential in applying it to product design and overall strategy. Trust signaling and contextual variables, such as distribution and placement, also play a crucial role in building brand trust and preference. Overall, there is a need to balance the micro focus of behavioral science with broader marketing goals.
The importance of differentiation and trust
Differentiation plays a significant role, especially for new brands competing for attention. By targeting a specific segment and building trust within that group, brands can create spillover potential to other segments over time. Trust is a crucial driver for brand loyalty and purchase decisions, and it is built through recurrent cycles of research, addressing customer needs and expectations, and understanding the drivers of trust. Additionally, traditional advertising channels like TV can leverage the power of branding to establish a strong presence and influence customer perceptions. However, the rise of addressable TV and programmatic advertising on digital platforms brings new challenges and opportunities in targeting and personalization.
The future of TV advertising
The television set remains the primary source of video content, and TV companies need to adapt to the changing landscape. In the short term, TV should focus on non-targeted emotional branding, leveraging its rich content and higher CPMs to maintain its position. In the long term, addressable TV, sold programmatically, will revolutionize advertising by delivering targeted ads based on viewer data. Ultimately, the battle for dominance in TV will come down to branding, quality of data, and trust. Brands need to understand that TV is not just about content distribution, but also about building connections and associations with viewers.
The power of targeted advertising and trust
Targeted advertising, or dark advertising, allows for covert messaging and experimentation, delivering specific messages to different segments. While this approach presents effective opportunities, it is crucial to ensure legality and strategic alignment with broader branding efforts. Trust is a key factor in successful targeting, and understanding the drivers of trust can help build more compelling and persuasive messages. Targeted advertising should be integrated with broader branding strategies and well-defined customer segments, providing a combination of emotional appeal and specific messaging to create meaningful connections.
Branding in the digital age: Challenges and opportunities
In a digital environment, branding remains essential for new brands to establish a presence and compete for attention. Overusing distinctive assets and codes can help create awareness and recognition, even if not everyone sees the same message. Branding is both a long and short game, with long-term efforts focused on non-targeted emotional branding and short-term efforts leveraging targeted messaging. While digital platforms like Facebook and YouTube provide opportunities for targeted advertising, trust and brand reputation are still paramount. The future will bring addressable TV, driven by programmatic advertising, offering new possibilities for targeted messaging on the big screen.
Where is behavioural science within marketing? How does trust work in the digital age? We thought the best person to ask was @markritson! Listen to episode 19 of the O Behave podcast now!
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