wer to
ensuring President Bush's reelection.His
pitch was simple: Take corporate America's love affair with learning
everything it can about its customers, and its obsession with
carving up the country into smaller and smaller clusters of
like-minded consumers, and turn those trends into a political
strategy. The Bush majority would be made up of thousands of groups
of like-minded voters whom the campaign could reach with precisely
the right message on the issues they considered most important.
At first, Rove and campaign manager Ken Mehlman
had doubts about the potential of micro targeting, according to
Bush pollster Matthew Dowd.
"I had to really sell Karl on it, and Ken to a
degree," said Dowd, who said the skepticism was rooted in whether
the investment in databases and computer modeling would yield better
results than the traditional precinct-by-precinct targeting of
likely supporters. "I told them it was going to a major expense on
the front end to save money on the back end."
As a test, Gage was asked to produce targeted
messages in several Pennsylvania judicial races in the fall of 2003.
Why? The state offered a diverse mix of geography and ethnicity, and
it almost certainly would be a battleground for both parties in
2004.
When the election was over, the Republican
National Committee commissioned a poll to figure out whether Gage's
suppositions about why people voted were accurate. Gage's models
predicted voters' tendencies with 90 percent accuracy, according to
Dowd, and Gage was hired to microtarget the 16 or so battleground
states in the 2004 election.
It wasn't long before this new, more sophisticated
form of data mining became part of the mythology surrounding Rove
and his role as "the architect" of Bush's reelection. Its use in
Ohio, in particular, was credited with unearthing Bush supporters
and delivering the state and the election to him.
Now Gage is working for another Republican
presidential candidate entranced by the possibilities of micro
targeting — Mitt Romney. A Harvard Business School graduate
who went on to head Bain Capital, Romney has made a point of
adapting modern business techniques to politics, and it was in his
successful 2002 campaign to be governor of Massachusetts that Gage's
methods were first tried.
"The governor believes in accountability,
benchmarks and metrics," said Beth Myers, Romney's campaign manager,
explaining his interest in micro targeting. "He believes in using
data when it comes to making decisions."
Describing what he does, Gage, 57, sounds part
marketer, part political strategist — and more than a little Big
Brother. "Micro targeting is trying to unravel your political
DNA," he said. "The more information I have about you, the better."
The more information he has, the better he can
group people into "target clusters" with names such as "Flag and
Family Republicans" or "Tax and Terrorism Moderates." Once a person
is defined, finding the right message from the campaign becomes
fairly simple.
"'Flag and Family Republicans' might receive
literature on a flag-burning amendment from its sponsor, while 'Tax
and Terrorism Moderates' get an automated call from former New York
mayor Rudy Giuliani talking about the war on terror, even if they
lived right next door to one another," Alex Lundry, the senior
research director of TargetPoint — the firm Gage founded in 2003 —
wrote recently in Winning Campaigns magazine.
Some people are not convinced. Skeptics think that
splicing the electorate into small subgroups does not tell a
campaign anything it can't learn from a traditional poll.
"It's harder and harder to reach voters these
days, so the desire to cut corners is understandable," said Steve
Murphy, a Democratic media consultant and campaign manager for
former congressman Richard A. Gephardt (D-Mo.) during the 2004
presidential campaign. "But it still comes down to shoe leather. I
have NASCAR's Hot Pass on DirecTV, and I read the New York Post.
What micro targeting category does that put me in?"
And in a presidential primary, in which voters are
far more homogenous than in a general election, can micro targeting find meaningful distinctions between groups? Gage and Romney are
convinced that it can.
From Business to PoliticsUsing consumer data to predict buying behavior is
nothing new in the business world. Bruce I. Newman, a professor at
DePaul University and editor of the Journal of Political Marketing,
said the term "micro targeting" began popping up in marketing
textbooks in the 1960s, when the field of consumer behavior began
gaining popularity.
Pat Caddell, pollster for Jimmy Carter, employed a
rudimentary form of micro targeting during the 1976 presidential
campaign when he set up a chart with issues on one axis and regions
of the country on the other. Caddell used the chart to advise Carter
on what issues to emphasize as he stumped across the nation.
Today, companies of every size use micro targeting
on a "very regular basis" to make basic decisions about how to
market and sell their products, Newman said. Also, whereas the
political world has long copied the techniques of the business
world, that dynamic is changing.
"What's beginning to happen now is the
commercial side is looking at the political side," said Newman,
asking such questions as "We would like to know what you did with
George W. Bush in 2004."
Gage said when he pitched micro targeting to
the Harvard MBAs advising Romney in his gubernatorial campaign, they
were stunned the idea had never been used in politics. "You
guys don't do this already?" they asked, according to Gage.
For Gage, using the same consumer information as
corporate marketers to figure out voter behavior was a logical step.
His career had been spent crunching numbers as a pollster, much of
it with two pillars of the Republican survey research establishment
— Robert M. Teeter and Fred Steeper.
By the 1990s, Gage was spending most of his time
on corporate work. "I was pretty burned out" on politics, he
acknowledged. But Gage had also begun to mull the rudimentary
elements of political micro targeting.
Working with a few Michigan based operatives —
direct-mail consultant Fred Wszolek; Michael Meyers, executive
director of the state GOP; and Brent Seaborn, who is now director of
strategy for Giuliani's presidential campaign — he came up with a
methodology he called "super segmentation." Later, they borrowed the
term "micro targeting."
Around that time, Michael Murphy, then Romney's
campaign strategist, became intrigued by the high number of
independent voters in Massachusetts, seeing them as the key to
winning in a Democratic stronghold. He sought out Gage for help.
"I wanted to break the independent-voter file into
target segments and Alex's approach was the best way to do it, so I
reached out to Alex and we, along with Tagg Romney and Alex Dunn of
the Romney staff, sort of invented micro targeting in that
race," Murphy said.
What did they find?
That a 32-year-old white Protestant woman with two
children and a retired Catholic male engineer — while both
independents — were driven by often contradictory issues, Murphy
said. "Some independents are more base Republican — like, some are
pure fiscal voters, some are focused on education," he added.
All of this seems somewhat straightforward —
after all, anyone with even a passing interest in politics knows
that a mother of two and a retired widower are probably motivated by
different issues.
Wszolek, the Michigan-based direct-mail
consultant, has known Gage since 1984 and worked closely with him to
fine-tune a theory of political micro targeting. Wszolek
acknowledged that "what you're doing is putting a very fine point on
the obvious."
But, he added, the key insight of political micro
targeting is rather than simply determining whether
married men are more likely than unmarried women to support a
candidate, a campaign can identify segments within larger
demographic groups and tailor messages down to the household level — an extraordinary amount of precision helps turn a guessing
game into a series of targeted strikes. If television advertising is
painting with broad brush strokes, micro targeting is
political pointillism.
The first step in doing this is conducting a large
survey of voters. By matching up their political views with detailed
information about their consumer habits, a model is established that
can be applied to the population as a whole.
A campaign would then know which issues are
important to an unmarried woman who subscribes to Outside magazine
and is a frequent flier, and how they are different from issues
important to an unmarried woman who has two grown children, uses
corrective lenses and is an AARP member — even if they are
next-door neighbors.
"A lot of people were skeptical that a big sample
would tell you anything different than a small sample," Wszolek
said. "What we found with large-sample research is you see
something totally different. That was Alex's central revelation."
Winning for Bush in 2004
It took TargetPoint six months — and cost the Bush
campaign $3.25 million — to conduct surveys, overlay them with
thousands of data points and break down the electorate into unique
segments.
To Mehlman, the information meant the campaign was
fundamentally different from the one before. "In 2000, we very
broadly talked to people on broad issues," he said. "In 2004,
instead of talking about what we thought was most important, we
talked about what the voters thought was most important."
In Ohio, the key battleground of the 2004
campaign, Gage's micro targeting showed that black voters —
who had traditionally not been drawn to the GOP — wanted to hear
candidates talk about education and health care. As a result, they
received a series of contacts — direct mail and phone calls,
primarily — emphasizing Bush's accomplishments on just those two
issues. It was a much different message than the president's broader
attempt to cast the election as a choice between staying the course
in Iraq and the anti-terrorism effort or switching teams in
midstream.
It worked. Nationwide, Bush won 11 percent of the
black vote, a two-point increase from 2000; in Ohio, he won 16
percent, an improvement of seven percentage points. Bush won Ohio by
118,601 votes, or approximately 2 percent of the more than 5.6
million votes cast for the two major-party nominees.
In New Mexico, Gage's micro targeting
discovered a segment of 19,000 lower- and middle-class, middle-aged
Hispanic women whose children attended public schools. That group
was strongly resistant to Republican candidates — just one in five
said they would back a GOP candidate — but about half said they
would back Bush. Why? Because 80 percent of the group were strongly
supportive of his No Child Left Behind education legislation.
The Bush campaign made a targeted strike with a
message focused on his push for testing and standards in public
schools. It focused particularly on the 6,000 women in the group who
were all but certain to vote. Again, the goal was not to win
Hispanics or even Hispanic women but rather to minimize the Bush
campaign's losses in this particular demographic.
On Election Day 2004, Bush carried New Mexico by
5,988 votes. It was the only state that he lost in 2000 and won four
years later.
In response to Gage's success, Democrats have made
their own attempts at micro targeting , and they think they have
caught up in the technology, if not the organization, needed to
apply it. Republicans worked to hone their micro targeting
techniques under the single roof of the RNC-Bush campaign, but
Democrats have been experimenting with a patchwork of smaller, less
centralized efforts, according to Ken Strasma, founder of Strategic
Telemetry, a Democratic firm.
Gage doesn't sound worried. What he does is as
much art as science, and he never stops tinkering with his models.
"Part of the challenge is to constantly attack what you're doing and
try to do it better," he said.
Targeting Iowa for Romney in '08Eighteen months ago, Gage made the trip up to
Boston to meet with Myers. At a Beacon Hill restaurant, the two old
friends chatted about Romney's potential as a presidential candidate
and micro targeting's ability to help deliver him the GOP
nomination.
Over the next months, Gage and Myers talked from
time to time about how micro targeting might best be used to
make a difference in a presidential primary. One Saturday last fall,
Myers, Gage and Will Feltus, a member of National Media Inc., the
company that handles Romney's advertising, gathered for a final bull
session.
At issue was whether micro targeting could
find meaningful — and measurable — differences in a primary
electorate that was Republican to begin with and similar in its
demographic and ideological traits. After hashing out the details on
maps and graphs, Myers and the rest of the Romney team reached a
decision.
"The question was whether you could differentiate
between the eight kinds of chocolate," she said. "I became convinced
that the power of micro targeting was enhanced by segregating
a generally homogenous universe."
Myers's conversation, like that of her candidate,
is more from the business world than from the political one. She
likes to talk about the "seamless web" that allows the campaign not
only to "see at any given time what the left hand is doing" but also
to use the "right hand to tell us what impact it has."
But the Romney campaign is decidedly circumspect
when it comes to divulging details of exactly what Gage and his team
are doing, other than to say the process of interviewing individuals
has begun in Iowa.
Romney communications director Matt Rhoades is
only slightly more specific when asked about the campaign's plans
for micro targeting. "Our micro targeting strategy is tied to
the calendar, and we have developed micro targeting models in
Iowa," he said.
Developing that strategy has placed Gage in a
central role in the campaign. Myers describes Gage as its "strategic
orchestra leader" — he oversees polling, media and online
operations and works to ensure every part of the Romney operation is
working in concert.
Gage is more humble about his role, calling
himself a "planner." He said, "I have always believed in
Eisenhower's observation: 'In preparing for battle, I have always
found that plans are useless, but planning is indispensable.'"