Do you know almost 76% of advertising leaders base their decisions on data analytics?
Undoubtedly, data is the underpinning of today’s marketing approaches and data-driven advertising has become a necessity if you want to provide the personalized experience customers are demanding.
What does data-driven marketing mean for your brand and how can you make the most use of it? In this article, we’ll explore some of the top reasons why data is imperative to implement effective advertising campaigns today.
Source: Search Metrics
Why Is Data-Driven Advertising Significant?
Data-driven advertising offers tangible insight into whether or not your advertising efforts are working. Advertisers today require data for everything from customer demonstrations to reports for business management.
Here are some reasons why data-driven advertising is essential:
1. It increases your reach to the right users
As an advertiser, you want to identify those consumers who not only convert and purchase from your brand but who are also devoted, repeat clients, and act as brand ambassadors to their networks.
You’ll find plenty of data that can be used to learn everything about each individual who browses your website. Digital advertising analytics tools can offer valuable demographic info about a consumer’s online behavior and interaction with your site. This way, data can help you discover that “perfect” consumer.
Effective advertising needs relevancy and timeliness. When you reach the right users at the right time with the right message, you’ll successfully convert them into paying consumers. When you know your ideal customer, you can modify specific marketing messages and strategies for them, no matter where they are in the customer’s journey.
2. It is the future of advertising
Advertising based on data helps a business increase its return on investment (ROI) and sales through the huge data volume advertisers can garner about potential consumers and prospects. An increasing number of brands today expect their advertising teams to be driven by data and this trend is going to continue in the years down the road.
According to a report, campaigns that leverage data-oriented personalization witness 5 to 8 times ROI for their ad spending.
Source: Method Data
3. It helps you track and measure progress
Data-driven advertising can deliver a precise, impartial evaluation of the performance of your advertising practices, approaches, and campaigns.
With the help of data, you can identify the areas of your advertising that are doing great and those that need improvement. This way, you can save plenty of time and resources. There’s no need to waste money or effort on advertising strategies that yield poor outcomes. Plus, you also get to know the areas of your advertising that have better conversion rates, enabling you to better utilize your resources.
4. It tells you where your consumers are
How do users discover your brand’s website or store? The answer lies in your marketing data. You can also find tons of answers in it about your potential consumers.
Now it’s possible to easily know from which site visitors came to yours – all thanks to marketing automation and analytics tools. This works with social networks as well. Finding out the sites and social networks every consumer visits along with the days and times they are most likely on them can inform your advertising campaigns.
5. It can convey your team’s value and consistent messaging
Preparing for a customer presentation or demo? Want to illustrate the ROI your team produced last year so the business leaders will increase your advertising budget? Data not only helps you make attractive graphs and charts, but it also conveys valuable info in a clear, succinct, and potent manner.
By leveraging data, you can extend your reach across many channels of communication. Consumer insights guarantee that your messaging remains steady and in line with your brand identity and goals.
Source: Practical Linguist
6. It helps implement highly personalized campaigns
Data can help you make laser-focused campaigns with exclusive, personalized messaging for every consumer. It can give insight into every buyer persona, including their interests, way of life, and online behavior. You can use these insights to create advertising material that resonates with them and entice them to buy from you.
Data can also direct your content marketing approach and let you know where and when to place advertisements and marketing content. It helps you to pinpoint particular content that’s guiding prospects through your sales funnel. This empowers you to decide precisely where your time and budget should be used.
7. It helps you segment your customers
As an advertiser, you know you can’t share the same message nor apply the same advertising strategies to every potential consumer. They are all in different phases of the customer’s journey and each of them requires particular advertising messaging that will move them forward.
By using data, you can easily organize your prospects by segmenting their behaviors, habits, and demographics. This makes it simpler to modify your advertising activities.
8. It helps you know your consumers ahead of time
Data can help you get familiar with your consumers even before they do business with you. It can inform you in advance what their interests and inclinations are so you can target them with the right messages that will grab their attention and encourage them to buy your product or service.
9. It can help improve your product development and launch
Data can let you know the requirements, pain points, and wishes of your potential users before you introduce a new product. When you mold the value and features of your product to match what customers are in search of, you’ll have better product accomplishment.
Plus, launching a groundbreaking new product alone doesn’t mean it will generate buzz. With data-driven advertising, you can produce a need or want for your offering. When customers understand the value of your new invention and how much it can improve their lives, they are more likely to purchase it.
10. It can help deliver a better customer experience
Once you understand your potential users, you invite more sales and profits for your business. At the same time, you also provide a better purchasing experience for your consumers.
Let’s face it, consumers receive several marketing emails every single day. The majority of these emails go straight to the bin. Why? Because customers don’t want to be barraged with advertising emails that aren’t exciting or related to them.
That’s where data can help. It can give you a wealth of info about who your target user is and what type of ads and advertising messages they care about. You can gather this data via consumer satisfaction surveys and focus groups.
When your consumers see that you’re concerned about their experience with your company, the more devoted they’ll be and the more likely they’ll purchase from your brand again.
11. It boosts opportunities for cross-selling and up-selling
Data-focused advertising can give you acumens to help you push potential consumers through the sales funnel faster and more cost-efficiently. Moreover, it can help you explore unexploited prospects for cross-selling throughout the sales funnel.
Even after a customer buys from you, data can give you insights and ideas to keep them involved post-purchase. This post-purchase connection can result in faithful consumers who make more potential procurements. The satisfying customer experience that data-driven advertising provides can also influence consumers to accept your cross-sell or up-sell offer.
Embrace Data-Driven Advertising With Eskimi
Data is crucial to the success of any advertising campaign. It notifies you about your consumers and shows them the right message at the right time in every phase of the customer’s journey. This helps them to transform from leads to consumers to evangelists.
Eskimi DMP is an exclusive data management platform where consumer and campaign data is stored and managed. Along with collecting structured and unstructured data from a variety of internal and external sources, you can also use it to analyze and organize data to deliver insight to data-driven aspects of the company, like marketing campaigns and research dashboards. Learn more about our DMP here.