Data-driven advertising takes a lot of chance out of marketing and replaces it with a greater degree of certainty. Random and ill-defined strategies are eliminated and what’s left is a highly targeted and effective way to attract new business. That is why data-driven advertising is so important in modern marketing.
Data-driven advertising, as offered by this New Zealand digital agency, is a form of marketing that uses data acquired through customer interactions and from third parties. This data gives a deeper insight into consumer motivations, preferences and behaviours. Ultimately, this helps companies optimize and refine their marketing strategy. Plus, knowing what consumers like about a product or service helps businesses to enhance the customer experience, leading to increased revenue and profits.
As marketers place greater value on data, more of them appreciate its true worth. No longer is data just a by-product of previous customer transactions. It is far more than the facts and statistics gathered during these interactions. Data is now a powerful marketing tool in its own right, and a third of marketers now say that having access to the right technologies for data collection and analysis is the most useful in understanding customers.
Data-driven marketing is a breath of fresh air to modern consumers who, until now, have been inundated with brand marketing and messaging from all angles. This made them increasingly unsure of who to engage with. On the other hand, a data-driven strategy allows marketers to feel increasingly confident that their target audience, which is one identified by data, is more likely to click on their ad, join their webinar, read a blog post, or perform another action that drives a conversion goal.
Data-driven strategies improve customer experience and brand perception because they provide marketers with a far more profound understanding of consumer needs and interests. They also boost conversion rates as targeted messaging propelled by data-driven marketing is far more likely to capture the attention of users. While data-driven advertising might seem a clinical term, it is actually able to form a more human connection through higher levels of personalization. Data-driven marketing builds a trusted connection between a consumer and brand while delivering positive customer experiences. The consumer feels they’re dealing with a brand that knows and understands them – and the brand benefits too, with research finding that blending personalized experiences into their marketing can deliver five to eight times the ROI on their marketing spend.
By analysing consumer data, marketers can better understand what types of creative, visuals, copy, and content the target audience prefers to engage with. Without data, many marketers fail to align their strategic content with their audience. Two examples confirm this:
- Blog content has increased by 800% in the past five years but social sharing is down by nearly 90 %. This highlights a wide gulf between what brands are saying and what users find valuable.
- 74% of consumers say they become annoyed when they regularly see ads that they find irrelevant.
The use of data can build a stronger connection. One that better reflects the needs and wants of consumers, and speaks to them in a language they understand. Marketing will always be important – but these days, you shouldn’t do it without the data.