“When it comes to marketing, social is cheapest and ad exchanges help you target the highest-quality consumers, but nothing beats using your own data to improve your digital ad campaigns.”
So says John Koetsier in a compelling commentary at Venture Beat. “In fact,” Koetsier posits, “Using your own data makes you up to 98 times better at driving conversions.”
“Digital identity and data provider Neustar released its second-quarter 2014 digital advertising report today. It’s based on 220 billion digital actions inside 1,800 companies’ campaigns, and if it shows one thing, it’s that data is probably now the single most significant corporate competitive advantage,” says Koetsier. “Using offline, first-party CRM data to target advertising dramatically improves effectiveness at driving actions,” the report states.
Koetsier notes that entertainment companies using their own private data to target advertising “saw average conversion lift of a staggering almost 10,000 percent — the 98x you see above.”
Though retailers were only “half as good” at achieving these heights, Koetsier says they still saw a 5,400 percent (55x) lift.
“Telco companies — don’t we love getting marketed to by them — achieved 19x average conversion, or 1,800 percent improvement, by using their data to drive digital marketing campaigns,” Koetsier says.
There’s a reason, of course.
“A big part of the improvement, of course, is using data intelligently,” he explains. “When you’re targeting known users who have completed known actions at known times, it’s much easier to anticipate demand or need — and timing of that need — accurately.”
There’s a lot more to take in — as well as nifty graphics. Be sure to read the whole commentary here.