If "customer state" was a targeting option for your paid search advertising programmes, what would you do?

For example, if the advertiser is a telecom, "customer state" i.e. "customer relationship" variables that might be managed in its [cookie] data might include:

-          an ID that represents lifetime value score

-          an ID that represents customer segment (based on the advertiser's customer database, not AudienceScience or a publisher/ad network's database)

-          an ID that represents handset

-          an ID that represents contract type e.g. pay as you go, monthly, etc

-          a date that represents contract start

-          a date that represents contract expiration

In the event you’re unclear where this is headed, when this information is available in an advertiser’s own domain data (increasingly common), the data is not only available for immediate referencing at the point of the paid search ad click, it is also available for real-time ad targeting (although not in the context of paid search advertising...yet).

Now, I've proposed this idea to a number of media agencies and advertisers over the past 12+ months and this is what I've gathered:

-          Most advertisers would rather NOT target i.e. spend money on paid search advertising that reaches/targets existing customers i.e. existing relationships. Said another way, if given the choice, advertisers (the small handful with whom I spoke about this; not a statistically valid sample) would effectively opt out of targeting existing customer relationships via paid search programmes.

Given that the vast majority of advertisers have been trained to view paid search via Google, Microsoft and Yahoo! as a vehicle for customer acquisition (not up-sell/cross-sell, retention, etc) it’s no surprise that the [gut] reaction I got was to cut the cost of reaching existing customer relationships [they might transact again without the aid of paid search ads].

But, get this, many advertisers admitted they were aware that, in some cases, a very large percentage of their paid search ad clicks, costs and subsequent transactions were mapped to existing customers.

So, the question again:

If "customer state" was a targeting option for your paid search advertising, what would you do?

Would you tailor your paid search ads to “speak” with your existing “relationships” with a new and arguably valuable relevance or would you choose not advertise to existing “relationships” via paid search programmes at all.

Note: Please keep in mind that, as far as I know, customer “state” based targeting is NOT available via paid search advertising today. It IS available via display advertising, which, if you’re interested, you can ask me about.

James, I've sent you an email.