Oded Napchi VP of Hiro Media recently wrote an interesting article about the concept of the halo effect in advertising. According to him, this theory revolves around the idea of a website being used by multiple types of people. Oded Napchi used Hulu as an example – if you’re marketing a male-oriented product, then instead of displaying the ad randomly on Hulu it makes sense to market only around movies that match up well with the macho product you’re selling.

Context Is Everything

Oded Napchi noted ads sometimes don’t appear where they should with respect to a website. For example, if a user is on a website buying gun parts, seeing an anti gun ad will most likely not go over well, and he or she probably won’t be clicking on the ad, therefore making the payment for advertising relatively meaningless. Oded Napchi VP of Hiro Media also states that a great deal of companies that have websites don’t really try to have a comprehensive approach as they make the claim that users are only on the website because of one product, and that defines all of their users. While this may be true, there are better ways to segment one’s user base for more effective advertising.

Halo Effect

An example of failure in advertisements can be aimed at many news sites. For example, right now if a user goes to the Fox News website, an advertisement comes on the right corner for homeowners insurance, with the ad company not realizing that the person on the site is actually a minor who can’t own a home, or a person renting who is not interested in homeowners insurance. The company who paid for this expensive advertising is not getting the most “bang for their buck”- their ads are falling on deaf ears, so to speak.

Hypertargeted Advertising Coming to the Fore

One company who seems to understand this is Facebook. They look at a profile and see what an individual likes, and then on the right side of the page, Facebook puts ads that are completely relevant to the user’s profile likes. This targets each and every individual user of Facebook worldwide, which amounts to ads being seen by literally millions of people worldwide who are likely to be interested in the product.

Mr. Napchi articulates the need for advertising companies to be more comprehensive in their approach to marketing to specific demographics.