Discover more from The AdPod
Outcome based buying
How is it a 'thing'?
Field Theory is the study of how individuals react with their environments. In the majority of cases, the field conditions itself (i.e the opinion of one eventually becomes the opinion of many). However, there are often environmental forces at play to try and condition the field.
For example; Apple have an opinion that collecting user data is bad from a privacy standpoint and that the ad industry is in cahoots and corrupt. They make moves to force this opinion down the throat of many, and condition the field.
In a world where people are time poor, and simply being conscious enough to get out of bed and make it through the day unscathed is difficult, we don’t have time to challenge all of these environmental assertions. It’d be absolutely exhausting if we did!
In programmatic, an example of where the field has been conditioned is 'outcome based buying’. It’s very simple to understand and when you’re time poor or don’t have the means to challenge, then it makes sense.
But, what does outcome based buying it really mean?
Outcome- the way a thing turns out; a consequence.
To understand how the consequence occurs you need to work backwards.
Lets say we have an advertiser who wants to drive 100 new accounts this month and has $1,000 to do so.
What levers do they have at their disposal?
The way in which all of these levers (there are many) interact can be countless.
Outcome based buying is essentially outsourcing all of the understanding and control of the levers to a third party and them guaranteeing a result in return.
Sounds great? Wrong…ish.
The reality is markets mature. It does this through education, increased access to talent and transparency.
Outcome based buying is a term that will remain, but for large advertisers you’ll be better off taking control of the levers yourself rather than outsourcing the control and letting a third party take a (often highly profitable) hedge.
A better way to think about it is ‘strategy informed buying’. Still understand what you are trying to achieve as a business, but consider the strategy required across all of the levers to achieve it.
Outcome based buying is still relevant for some but it’s role should be questioned by many.
I wrote an article about the Google Antitrust case on LinkedIn here - https://www.linkedin.com/pulse/google-antitrust-case-personal-recollection-past-10-years-blodwell/
I added some thoughts to the Amazon product update news here - https://www.adweek.com/commerce/amazon-advertising-unveils-8-new-tools-and-features/
Loved this launch from IAB Europe - https://iabeurope.eu/noeasywins/
I haven’t been able to put shoes on for the past week due to damaged heels (I literally tell everyone about this daily, so this is simply me looking for some more sympathy) and our 100km challenge to raise money for Cruse, a UK based bereavement charity, starts on Monday. Eeek.
You can join in or donate here - https://www.justgiving.com/fundraising/keep-moving
Thanks for reading and I hope you have a good end to your week,