In 2015, a marketing budget can go farther and be more impactful than ever before. With the rise of the Internet came a revolution in data collection. Now, we don’t have to depend only on potentially inflated media demographics and customer polls to pinpoint likely customers. We can discover what people buy with credit cards, which websites people are going to, what they watch on TV, and more. Then, we can use that information to form marketing strategies that tactfully target the consumers who are most likely to be interested in the promoted content. The end result is more conversions and a better return on the advertising investment.
Companies like Google and Facebook segment targeting criteria by interest, gender, age, location,--even birthdays, household income, and relationship statuses. The possibilities really are endless. We know what car you drive, the equity of your home, and even your credit score. Not only can we make sure we’re advertising to the right customer, these targeting capabilities help us eliminate the wrong customers so money is not wasted. If we’re selling a basic-model car with no bells and whistles, it might not be wise to advertise to someone who drives a fully equipped luxury car.
Another way consumer data can be used is to find lookalike customers or consumers who have similar demographic profiles to a business’s current customers. These lookalikes can be found using an in-house list that includes names and addresses. This list is thrown into a database and a second list of similar consumers is supplied, full of potential leads. Businesses can serve these leads online, send direct mail messages, or target them on social media.
In addition to all of the incredible targeting capabilities we have access to, digital advertising also provides better metrics than most traditional media. Advertisers know exactly how many people click on an ad, “liked” a post, or visited a website. And because the Internet is so fluid, we can use these metrics to adjust campaigns and target criteria while the ad is running. Try several different ads for a week and see which one performs the best—then run the top-performing ad for the rest of the campaign.
The goal of any good advertising campaign is a to create conversions. In all reality, not everyone who sees your ad is going to buy your product. But why not improve the odds with refined digital targeting?