Alex Song is CEO and Founder Proximaa data science company that helps brands better reach consumers across all major platforms.
With advances in technology and the explosion of marketing channels, marketers have more information, insights, and opportunities to connect with customers than ever before. On the one hand, this has made it easier for marketers to deliver the personalized, connected, and cross-channel experiences that modern customers demand; On the other hand, this magnified the complexities involved in doing so.
As the marketing ecosystem continues to evolve, the demand for data and insights will continue to grow. Especially in a difficult economic environment, 94% of marketers They are already feeling more pressure to deliver an ROI than they used to be. Meeting heightened expectations while navigating new constraints will be essential to success in today’s changing environment. To do this requires marketers to understand the current state of the marketing ecosystem and what can be done to ensure short- and long-term success.
Will targeted advertising be the same?
One particular area under the marketing microscope is targeted advertising. Due to iOS privacy changes, social media platforms are no longer effective in finding the right audiences. Target marketing was once the key to personalization, increased brand awareness, and increased engagement, especially across social media channels. But now, consumer privacy rules threaten to destroy targeted advertising.
For example, as a result of iOS changes, Facebook says it will You lose 10 billion dollars in revenue this year. There are those who expect this to be the end of targeted advertising.
Targeted advertising has gotten a bad reputation. It serves a purpose, and that purpose should not conflict with consumer privacy. It is important to note the value of targeted advertising: it not only offers consumers products and services that meet their specific needs, but also helps with purchase costs, which ultimately affects the final price for the consumer.
So what can brands do to manage the changing face of targeting advertising and still deliver exceptional customer experiences and brand success?
Try new platforms.
TikTok is having a moment right now, and it can feel like the Wild West. But the reason for this is that there is incredibly high audience participation and some remarkably low customer acquisition costs. A clear guide to success has yet to be written, but those who want to try out the platform reap huge rewards by jumping in early. As this ecosystem matures, the acquisition cost will increase and stabilize. In the meantime, for digital companies with a strong creative content strategy, optimized conversion funnels, and effective growth marketing capabilities, there are vast opportunities to seize.
Marketing leaders need to work hard and try many strategies across multiple channels in order to maximize return on ad spend. Such volatility is better for entrepreneurs because uncertainty creates a more competitive environment – one in which everyone is obligated to win additional advertising dollars rather than comfortably protecting a market leader.
Start with the first party data.
First-party data is valuable because it is collected directly from the consumer, which is the data that the brand directly owns. But in today’s environment, first-party data is still hard to come by and may only offer a limited amount of scope depending on the size of your business. In addition, it only gives brands information about current audiences, not about those who have not yet participated. However, scaling first-party data should be your priority, since, with enough volume, this data set can lower advertising costs and improve targeted ad revenue.
Find the data of the second party.
Second-party data, obtained through brand partnerships with consumer consent, removes the middleman and can be a good source of accurate, high-quality data. Since consumers have opted in, this type of data has not been affected by the iOS privacy changes. Using second-party data can give you insights into existing and potential consumers while adding transparency to the process.
Take advantage of third-party data and artificial intelligence.
Third-party data providers are becoming more sophisticated and can now improve their data sets with artificial intelligence and data science. This helps them learn and iterate as they go, which is proving to be an effective way to seek out new audiences while maintaining consumer privacy. Third-party data, combined with machine learning and artificial intelligence, is paving the way for the future of targeted advertising.
If marketers have learned anything recently, it’s that the only constant is change. As the marketing ecosystem continues to evolve and the rules around targeted advertising continue to change, contemporary leaders must remain skilled. Those who aren’t afraid to test new ways to target audiences will be in a much better position to deliver the high-quality experiences that customers crave and achieve the ROI that brands need to thrive.