The segment discusses the value of ad retargeting — how it can remind consumers on the verge of buying to come back and make that purchase — but it doesn’t shy away from addressing retargeting’s flaws. From consumers’ point of view, retargeting becomes a burden when they see the same ads over and over after visiting a site or, worse, purchasing the product.
Part of the reason that happens is advertisers are measuring retargeting the wrong way — based on clicks and attribution. Ric stresses in the segment that if retargeting success is measured as a user clicking on an ad and buying something then an algorithm will always show ads to frequent clickers and purchasers who are likely to buy regardless of seeing an ad. The result is millions of ad dollars are wasted preaching to the choir and not spent on “persuadable” consumers who would actually benefit from seeing ads.
For more of Ric’s commentary, watch the full CNBC segment below: