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1,200 Marketers Can’t Be Wrong: The FutureIs in Consumer BehaviorBy STUART ELLIOTTPublished: October 15, 200

Consumer behavior as a route to effective marketing as a centra! focusof the !argest gathering ever of an inf!uentia! tra"e organi#ation$

The 1,200 %eo%!e ho atten"e" the &'th annua! conference of the (ssociation of )ationa! ("vertisers, he!" here from Thurs"a* through *ester"a*, hear" s%eaker after s%eaker a""ress the groing %o%u!arit* of hat is knon as behaviora! targeting, as o%%ose" to basing %itches onconsumer attitu"es, o%inions or %erce%tions$

The abi!it* of ne me"ia to monitor hat consumers are "oing + !ikekee%ing track of hich Web sites the* visit + is fue!ing the interest in behaviora! targeting$ evera! s%eakers a!so "escribe" ho the* ereusing tra"itiona! me"ia to more %recise!* aim a"vertising at consumers base" on behavior, through ste%s !ike tai!ore" te!evision commercia!s$

The Microsoft Cor%oration is investing in -e!!.targete" a"vertising,/sai" teven ($ Ba!!mer, chief eecutive, -as aggressive!* as e’ve everinveste" in an*thing$/ Its acuisitions inc!u"e the 3 bi!!ion %urchase in (ugust of a4uantive, a !ea"er in on!ine a"vertising$

-What’s the 5oke about the egg an" bacon breakfast, 6Who’s morecommitte", the %ig or the chicken7’/ he a""e"$ -We’re the %ig at the breakfast8 e’re committe" to the future of "igita! a"vertising$/

9ather than fearing the arriva! of techno!og* com%anies !ike Microsoftinto the a" business, Mr$ Ba!!mer sai", marketers ought to rea!i#e-there’s an eciting future for a!! of us$/

-The more e kno about customer behavior, the more ever* a" isre!evant,/ he a""e", an" re!evance im%roves the chances that aconsumer i!! %a* attention to an a"$

For eam%!e, as more T; sets are -fe" ith inte!!igent signa!s that comeover the Internet,/ Mr$ Ba!!mer sai", a"vertisers i!! be ab!e to "e!iver%ersona!i#e" marketing messages base" on on!ine searches$ The fact that

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his ife has been searching on!ine for ti!e for their beach house cou!"!ea" to a commercia! for Ita!ian ti!e turning u% ami" the beer an" cars%ots as the* atch T; s%orts together on a un"a* afternoon, he sai"$

 ( commercia! !ike that ou!" not t*%ica!!* be e%ecte" "uring a

eahaks game, he a""e", -but it’s in contet + not in the contet of thesho, but in the contet of her behavior$/

9oger W$ ("ams, senior vice %resi"ent an" chief marketing officer at<ome =e%ot, "escribe" ho his com%an* regar"e" its Web site as -a!earning !aborator*/ as it s%ent more time an" mone* -on un"erstan"ingour customer better$/

>ne fin"ing as that -the un"er!*ing com%onent of the emotiona!

connection to the bran" is the %oer of 6I "i" it,’/ he a""e", -as theonershi% of *our home becomes ver* %ersona! because *ou create"something/ after bu*ing materia!s for "o.it.*ourse!f %ro5ects at a <ome=e%ot store$

-We’re e%erimenting ith a !ot of behaviora! targeting, on!ine an"off!ine,/ Mr$ ("ams sai" in an intervie after his s%eech, in moving aa*from a -one si#e fits a!!/ a%%roach using a"s in mass me"ia !ike T; an"%rint$

 (s a retai!er, he a""e", <ome =e%ot has the a"vantage of access to-in"ivi"ua! customer %urchase histor*/ as it seeks to customi#e a"s$

-There are "ifferent messages in "ifferent me"ia for "ifferentconsumers,/ Mr$ ("ams sai"$ -It’s incre"ib!* com%!e, but that’s the a*it is$/

For instance, he sai", <ome =e%ot has achieve" %ositive returns b*

segmenting its cam%aigns for the <is%anic market, creating a"s for-accu!turate" <is%anics/ + those ho are secon". or thir".generation (mericans + that "iffer from a"s for consumers ho a!most a!a*ss%eak %anish$

9obert C$ ?achk*, eecutive vice %resi"ent for g!oba! in"ustr*"eve!o%ment an" chief creative officer at (nheuser.Busch, "iscusse" inan intervie ho his com%an*, !ike <ome =e%ot, is segmenting itscustomers$

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 (nheuser.Busch is taking -a bit of a "ee%er "ive,/ he a""e", going be*on" factors !ike age, gen"er an" ethnicit* to aim at customersthrough -use occasions$/

For eam%!e, a beer "rinker might or"er a "omestic !ight beer hi!e

 atching a baseba!! game at a s%orts bar an" a fu!!.f!avor im%ort hi!eon a "ate at a nice restaurant$

 (nheuser.Busch sought to ta% into the %oer of the Internet this *ear ith an ambitious on!ine %ro5ect that offere" entertainment%rogramming at a Web site name" bu"$tv$ But visitor traffic fe!! far be!o initia! %re"ictions, an" the content is being rethought$

The %rogramming -ha" nothing to "o ith our bran"s,/ Mr$ ?achk* sai"

"uring his s%eech$ -Bran"e" content is hat the consumer ants, an"it’s hat e’!! use that s%ace for$/

For eam%!e, a vi"eo c!i% ca!!e" -ear @ar,/ hich as recent!* a""e"to the Web site, shos ho a com%an*’s em%!o*ees start toenthusiastica!!* !ace their conversations ith obscenities after !earningthat the mone* being co!!ecte" ever* time the* curse i!! go to -bu*something for the office, !ike a case of Bu" ?ight$/

The %revious highest turnout for the association’s annua! conference as!ast *ear, hen near!* 1,000 %eo%!e atten"e"$ The shar% gains since2002, hen atten"ance bottome" out at aroun" 2A0, fo!!oe" a changein !ea"ershi% at the association, hich has 00 member com%anies, an"the recruitment of i"e!* knon s%eakers from giant com%anies$

This *ear, the roster a!so inc!u"e" Wen"* C!ark, senior vice %resi"ent for

a"vertising at (TT8 @ames 9$ tenge!, g!oba! marketing officer atDrocter Eamb!e8 an" (! Eore$

Mr$ Eore s%oke on atur"a*, a "a* after he !earne" he ou!" share the200' )obe! Deace Dri#e for his ork on raising aareness about c!imatechange$ But his s%eech as not about g!oba! arming, %o!itics or theaar"s he has receive", hich inc!u"e an mm* an" an >scar$

9ather, Mr$ Eore, ho as greete" ith a stan"ing ovation, ore his hat

as the chairman an" co.foun"er, ith @oe! <*att, of Current T;, a cab!e

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netork an" Web sites Gcurrent$tv an" current$comH that offer *ounger vieers the chance to create %rogramming an" commercia!s$

Mr$ Eore %!a*e" for the au"ience eam%!es of Current T; %rograms an"-;.Cams,/ or vieer.create" a"vertising messages, for s%onsors !ike

?’>ra!, on* , T.Mobi!e an" To*ota$

Mr$ Eore as invite" months ago to a""ress the conference, hichcarrie" the theme -Transforming the Marketing ?an"sca%e$/

ti!!, sai" 9obert =$ ?io"ice, %resi"ent an" chief eecutive of theassociation, it as Mr$ Eore’s choice to stick ith his s%eech, tit!e"-Consumer.Eenerate" Me"ia: The )e Marketing Dara"igm,/ ratherthan "iscuss g!oba! arming or the )obe! Dri#e$ The four uestions Mr$

Eore ansere" after his remarks ere a!so !imite" to marketing