August 2014 – Retargeting Is Flawed…For Some Industries

Tom Goodwin, CEO of Tomorrow Group, recently wrote an article for Ad Age about the overall state of online advertising. Mr. Goodwin concludes that retargeting is ill-timed and repetitious. However, in the context of Broadway advertising, retargeting actually has extremely strong results. Across our numerous campaigns, online retargeting has seen anywhere from 300-3,000% returns. In his article, Mr. Goodwin writes, “retargeting will get better… We’ll be shown ads for big-ticket items at precisely the right time, after we’ve been thinking about them for a predetermined period.” What Mr. Goodwin doesn’t know is this is already happening for Broadway shows and is why Broadway retargeting is so effective. Show tickets are seen by many as a luxury “big-ticket” item. We know that it takes Broadway buyers on average 3 weeks to purchase tickets. Therefore, we have a precise window in which consumers are available to be educated and communicated to, which leads to high return. Although Mr. Goodwin makes a strong argument for why retargeting is not advantageous for material goods, it is exactly right for the Broadway industry.