Testing the Hypothesis, Pt. 2

Interview: Since my idea has more to do with large companies, I have had to rely on interviewing business and engineering students. All 5 are undergraduates here at UF but they range from freshmen to seniors. Two of the interviews had very similar answers to the question, “do you think that there are any kind of advertisements that I have not mentioned that would be either suitable or not suitable for adopting cookies to create a more individualized marketing campaign?” I thought that both answers provided great insight. To sum up what they said, it seems as though any kind of electronic marketing campaign would find the use of cookies very advantageous. Conversely, ads in the form of billboards or paper would probably not be able to utilize cookies. Another question I asked, “Do you think there is a difference between the need to make an announcement vs. the need to advertise a product?” had two very different answers. One interviewee said that there is no difference because in both cases, information is simply being broadcasted. Another interviewee had a very different opinion. She said that when making an announcement, perhaps something like warning of a very dangerous hurricane, everyone should know because they may either be in the line of danger or they may be able to help out someone who is. On the other hand, an advertisement should be directed only to those who have a need or want for the product/service. The last person I interviewed said that offer services/products for the general public, so they would have no need to narrow down their target audience. In all, the majority of the candidates answered my questions in similar ways. They helped me to realize what advertising platforms would not find use of cookies in the ad campaign, what type of announcements should be tailored through the use of data, and that not all products have one specific niche.

inside the Boundary

- Companies that have an electronic marketing platform and a specific niche.

-The need is to use cookies to help narrow down a products target market.

-The need exists because commercial advertisements are currently very limited when it comes to delivery their ads to a specific group.

Outside the Boundary

-Companies that do not have an electronic marketing platform or who have a goal of making information known to the general public.

-The need is not to limit the amount of people who see an ad but rather to be more efficient and effective on a marketing campaign.

-To help those who are in search of products that they need/want to save money.

Solving the Problem

·      A major issue for companies that advertise through TV commercials is that they are sending their ads out to people that have neither a need or interest in the company’s product. They are sending their ads out to reach the masses and hoping that their ads reach people who align with their targeted customer. My product would help to eliminate the mass advertising by running targeted ads similar to those found on the internet. It would be a program that takes cookies from a consumer’s laptop and smartphone, then sends them to cable networks to collect data then run ads based on individual consumer preference. This product would allow companies that advertise through TV commercials to cut down on marketing expenses by displaying their commercials only to those who would seem to have an interest in their products or services. Companies like Facebook have proven that this is a very successful way to market one’s products and it is also very cost effective.

Testing the Hypothesis

• Companies limited ability to reach targeted customers through TV commercials
• ·      Opportunity:

o   Companies have a limited ability to gain data and target potential customers through TV.

§  The who: Companies that advertise through TV commercials

§  The what: Limited ability to gain insight as to exactly what consumers have been wanting or looking up

§  The why: Unlike computer ad’s, TV commercials don’t have access to cookies and search histories to help aid with targeting customers

• ·      Testing the who: It is not only companies who advertise through television but also those that advertise through radio and other media sources other than the internet. Also, it is companies and organizations that may not need to advertise but rather get a message out to a specific segment of people.
• ·      Testing the what: unlike Internet advertisement’s, TV and radio ads don’t have the ability to obtain cookies and target potential customers on an individual basis. TV and radio ads are limited to mass advertisements using only the data derived from the numbers and types of people that watch/listen to certain shows/stations.
• ·      Testing the why: it is difficult for companies to individually target consumers through TV and radio ads for multiple reasons. Perhaps the root is that they are not able to obtain cookies. However, many of the companies that advertise online also advertise through TV commercials so it seems as though the issue with not being able to individually target customers falls on the broadcasting networks and cable companies.

·      Interview #1:

o    In this interview, I learned that there is a decent chunk of people who do not want individualized ads. The man that I interviewed thinks that it is an invasion of privacy and unfair to the consumer to follow one’s search history then display ads based specifically on their interests. He also believes that television and radio ads are fine because they target their customers based on the show that is being aired, not by collecting data on individual consumers.

·      Interview #2:

o   In this interview, the man said that he doesn’t really think that companies should invest in the programs necessary to bring TV advertisements to the individual level. He said that it sounds like a very expensive and time-consuming project. Most of the time that he watches TV, he watches pre-recorded shows that allow him to skip through the commercials. So, a commercial that is tailored specifically to his wants would likely never reach him.

·      Interview #3:

o   The person that I interviewed this time really liked the idea. She said that while driving to and from work she listens to countless ads on the radio that have absolutely nothing to do with her. She said that she would love to hear ads that pertained to her that way she could save money next time she goes shopping. However, when I asked her about how she thinks that a company could implement individual advertisements through the radio, she said she thinks it would be a logistical nightmare.

·      Interview #4:

o   For this interview, I talked to a male who is an engineer here at UF. He said that he likes the idea, however, he believes that creating a program that allows television commercials to change based on the consumers interest would be very difficult to do. Also, it would be difficult for a deal to form because it would have to involve the cable companies, network companies, and the companies that would advertise. However, he said that should companies one day pursue something like this, the prevalence of smart TV’s may make the transition easier.

·      Interview #5:

o   For my last interview, I picked a girl who loves online shopping. She said that it is very helpful when she’s on Facebook and sees an ad for something that she wants. It saves her time and money by simply clicking on the ad and going straight to the webpage. She would like to see person-specific ads on TV too but when I asked her about the logistics of making such a thing happen she said that she had no idea but that it sounds very difficult.

·      What I found out about the opportunities that I didn’t know before.

o   My interviews were very enlightening. Before my first interview I didn’t really think that people may view collecting data in this fashion as an invasion of privacy. There are certainly ethical issues that companies will have to work through if they ever decide to pursue something similar to my idea.

o   Another point that I hadn’t thought about was the use of smart TV’s in collecting data. This idea could come to fruition if, in the future, smart TV’s are built with the capabilities to copy the cookies from its user’s computer, then send the data to whichever company needs it.