Addressable Audience

Ariana Grande

Background:

Since early 2013, Gupta Media has been focusing on a media strategy known as the Four Pillars, four unique advertising tactics to reach fans who have raised their hands to show interest in a product, at the moment when they are most likely to buy. As the strategy is being used consistently across many campaigns, it is updated based on learnings from what is “making the needle move.” With the Addressable Audience, Gupta Media is working to quantify the Four Pillars and refine its media tactics.

What is the Addressable Audience

The Addressable Audience serves three main purposes: • A refinement in media strategy • An artist-specific model for budget forecasting • A framework for understanding campaign “ready state”

Refinement in Media Strategy

Originally, two of the key components of Four Pillars tactics were recency and intent. How recently have you engaged with the artist and what was your level of purchase intent? Now, with the addressable audience model, an increased value is placed on intent and a lesser value is placed on recency. This shift is based on the idea that if a user has taken an engaged action in a longer time frame, they can still be more qualified than a user who takes a more passive action in a shorter window.

One way a user shows interest is by visiting an artist website. Visiting an artist website shows more interest than just watching one of their videos on YouTube/VEVO, where it’s easy to jump from one artist’s video to another. By setting up retargeting on an artist’s website, you are able to connect with fans who have visited the page by serving them ads across Google’s network as well as on Facebook and Twitter. A fan signing up for a newsletter is a strong indicator of intent, as they are saying that they want to get news from this artist sent directly to them. However, even once they’re signed up, the industry average for open rates on an email within the music industry is around 22%. This means that one of your best sources of owned media, won’t reach 78% of fans when you e-mail important messaging such as an album release announcement. Facebook and Twitter allow for uploading of e-mail lists, where they anonymously hash the addresses and then allow advertisers to target these lists. By utilizing both of these methods, you are able to tap into a key resource of e-mail list members, who may not otherwise see the key messaging in an album cycle. Within YouTube/VEVO, higher value is placed on people who have Liked or Shared a video, or Subscribed to a channel. These users have shown more intent than someone who has watched a video without actively engaging with it. Putting less value on all viewers will reduce the overall audience size, so reach becomes a key performance indicator. By utilizing tighter frequency capping and widely adopting day parting, campaigns are able to have a greater reach within the narrow audience.

Budget Forecasting & Ready State

As the Addressable Audience looks to quantify the tactics that help reach the core audience, Gupta Media has introduced a budget calculator to help determine the projected cost to run a campaign over a certain amount of time, using the media strategy laid out to hit engaged fans. Generally speaking, an advertiser will not be able reach every fan they think they have, for various reasons. For example, on Facebook, a fan may not log-in while a campaign is active. Gupta Media looked at data across dozens campaigns and created a baseline for what percentage of different audiences are reachable in most campaigns. From there, an input of the desired or set frequency cap and expected CPM are used to find the costs. By using the Addressable Audience calculator during the planning phase of a campaign, a general estimate for an appropriate budget to reach the core audience can be found. Additionally, the calculator can be used to measure the ready state of a campaign. By going down the list of places available for reaching the core audience, it is clear to see what is set up and what is missing.

In Practice

Gupta Media utilized the Addressable Audience in support of Barbra Streisand’s latest album “Partners” and Ariana Grande’s “My Everything.” These numbers will help to shape future budget calculators for Barbra, Ariana and other artists. The below table compares the total amount of fans that exist for various targeting types (Potential Reach), the estimated amount of penetration into that audience (Target Reach), and the amount of people that our campaign actually reached (Actual Reach).

With Barbra on Facebook, although we initially thought we would only reach 25% of the targeted reach, we ended up hitting 59% – reaching 222,210 unique fans. With Ariana on Google, looking only at engaged users, we were able to reach almost 800,000, 14% of this audience. The Addressable Audience model has brought a refinement in media strategy to shift more focus towards a person who has shown higher levels of engagement. Gupta Media will continue to monitor the results of the campaign, which will work as a framework for creating future Addressable Audience modeling. By refining the media strategy to reach an audience more likely to convert to sales and using the data to plan a campaigns budget, the Addressable Audience helps Gupta Media’s media campaigns be stronger, and improve the planning phase leading up to the campaign.

Joe Schlesinger
Written By:
Account Director
jschlesinger@guptamedia.com
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