What is Data-Driven Marketing?

What is Data-Driven Marketing?

What is Data-Driven Marketing?

What exactly is data-driven marketing?

Data-driven marketing is the strategy of using customer information for optimal and targeted media buying and creative messaging. It is one of the most transformational changes in the digital advertising that has ever occurred. The rising quality and quantity of marketing data have been followed by explosive growth in the technologies for creative production and automation. These expanding marketing tech and ad tech sectors now enable personalization of every aspect of marketing experience.

Data-driven marketing is taking the answers to questions like: who? when? where? what message? and making those answers actionable. 

Usage and activation of data often in automated or semi-automated manner allows for a significantly more optimized media and creative strategy.This people-first marketing strategy is more personalized it has also been response for driving considerable ROIs in the markets.

Why do we need Data-driven Marketing?

The benefits of Data-driven Marketing and especially data-driven advertising are highly significant:

  • The more efficient media buying:

Data-driven marketing is probably the most advanced and pragmatic marketing sector by leveraging algorithms and machine learning at agencies and marketers are removing a lot of guesswork from media planning and buying; this in turn enhances customer search experience and advanced marketing capabilities to sellers and improves their business.

  • Targeting the right customers:

Ads prints and marketing messages are optimized to be shown only to the appropriate targets for the marketing campaign, here the customers search history is struck and he or she is targeted with only the relevant ads that helped them to find exactly what they're looking for and improvises customer experience.

  • Messaging audience with relevant messages:

The age of generic one-size-fits-all marketing messages is over; there is still room for these big ideas for some brands but for most companies marketing messages must get more granular in order to be relevant enough to resonate with customers; to put it down in simple terms, all customers are not convinced with the same message. Marketing teams should understand that what exactly a customer is looking for and target him or her with only relevant information.

Where is it leading the current market to?

Data-driven marketing has led us to the introduction of many ideas of marketing and reaching out to the customer in the best possible way; it also led to the introduction of many software's one out of them is the CRM.

CRM or customer relation management allows marketers to track who individual customers are including the name and contact information. CRM enable direct mailing and therefore, direct marketing campaigns. Batches of customers may this different types of messages based on whether the marketer thought the segment was good fit and what the customer cares about.

The CRM gained new prominence in digital marketing with Salesforce innovation to bring it to the cloud; this in turn started the age of sales and marketing automation. Digital data-driven marketing came out of the CRM, gave birth to new category marketing automation software.

Example leaders in this space include marketing automation companies like "Marketo & Eloqua";they pioneered building individual marketing profiles and built on customer interaction, tracking on the website and email. This profiling of customers enabled automated emailing based on certain triggers and activities as well as scoring and prospects into segments; such began a new age of marketing automation.

As marketers began segmenting their customers using marketing data, they ran into a new problem around the amount of data untrod users being accumulated. Customers were now being tracked not only on own media, on marketer websites and emails but also increasingly in paid media where ads are running, what's now known as pragmatic advertising.

Solutions like "Cracks" and "New Star" arrows to help marketers aggregate the data in more manageable manner and produce new insights for new targeting and creative plans; thus began the age of data management platforms.

Today marketers are spending over 6 billions per year on data-driven targeting solutions like data management platforms and demand-side platforms; however the majority of marketing teams are not yet fully activating their data; they have so far been mostly limited to optimizing media with your data. The next stage is activating marketing data to creative and not just media

Now with creative media and data coming in together, marketers want to personalize the messages based on who is seeing it and where they are seeing it. Intrusive rich media ads are dying giving way to nutrients and more consumer friendly formats that use message personalization not intrusion to gain attention.

Social media isn't the only channel where all of this is possible anymore, with pragmatic advertising and marketing automation nearly every aspect of the customer journey can be personalized. Keep in mind that data-driven advertising doesn't necessarily require individualized one-to-one messaging, like with someone's name appearing in the ad; marketers must be careful to balance the customers experience or the creep factor in the ad marketing message. Instead, it means knowing what we know about the targeted person, who may belong in larger audience segments of shared characteristics but data-driven marketing does mean creative needs to be personalized based on some data attributes of the viewer, this may be a large shift in mindset of some agencies and advertisers.

How to approach Data-driven Marketing?

Whether you are getting started or looking to improvise your existing marketing strategy, there are certain elements that you should be considering, these include the following four stages:

  • Automate and integrate:

Integrating new tools and technology into your marketing strategy can be overwhelming at times; by creating an automated process that still allows the presentation you will stay true to your objectives and avoid complicating results.

  • Collaboration across teams:

Because data is something that needs to be managed across the entire organization, marketers must ensure information is being shared across departments and teams

  • Monitor industry changes:

Keep a close eye on the competition so that you can either follow suit or learn from their mistakes; like every other area in the industry, data-driven marketing is constantly changing; staying up-to-date on the latest trends will only help you with your own brand strategy.

  • Continued measurement:

Data-driven marketing is not a one-size-fits-all solution, it should be constantly monitored and adjusted based on the results that you are seeing; this will help identify with tactics that are working and encourage buy-in from organizational leaders.

Real-time examples of data-driven marketing:

If you are still unsure how data-driven marketing might fit into your business strategy, here are a few examples that should offer some inspiration:

  • Retargeting:

Retargeting is important for all digital marketers; if someone has previously purchased from your ecommerce site or shown some significant, why not look for them again?

Let's pretend that a member of your target audience is a travel enthusiast who has recently booked a vacation trip, from this data you could automatically offer relevant deals based on traveling and lodging, airfare and similar other vacation ideas that would be appealing to your target audience.

  • Dynamic advertising:

Use social media to your advantage by creating ads across Facebook, Twitter and Instagram. Connect your audience by allowing them to sign up and receive more information with one click; by turning your social media outlets into two-way communication channels you have now obtained valuable information that feeds directly into your database.

  • Optimized paid search:

Analyse your preferred customers based on types of keywords to search for and consider what the competition is targeting as well. Leverage this data to position yourself at the top of the most relevant search results and drive valuable traffic to your website.

  • Targeted email campaigns:

Is email marketing a part of your existing strategy?!, take a data-driven approach to email campaigns by grouping together your desired target audiences; while this data will allow for automation, you will also be able to easily personalize messages to make one-to-one connections with each and every customer.

Challenges faced in data-driven marketing:

Like most valuable business strategies, there are also challenges to successful data-driven marketing. Let's take a look on some of the most common struggles:

  • The right team:

Due to the complicated nature of the job and analytic skills required, it can be challenging to attract the right type of staff that specializes in predictive analysis or audience amplification. Learning more about data driven or becoming a data scientist may benefit you and your team.

  • Departmental Silos:

The success of data driven marketing is largely dependent on having high-quality and integrated data which is not easy task to obtain. Frequently different departments will acquire data with goals that contradict one another.

  • Commitment:

It could seem foolish to incorporate a data-driven marketing strategy if you aren't completely committed to it; yet there are some companies that continue to make that mistake. Even though they might possess a defined strategy, it won't mean much if they are not assimilated with the tools needed to succeed.

  • Integration:

In 2019 brands on average are using 15 different data sources to run their operations and campaigns but data usage is growing exponentially. Though a state of marketing reports Salesforce has been tracking brand data usage for past three years, we found that the data is increasing exponentially the massive amount of data we've been collecting and will collect in future is creating a massive data glut.

The future of data-driven marketing

All of this data can be analyzed by AI and leverage in real time to create personalized customer journeys. It's necessary for all brands to move towards future where every interaction with customers is customized to them. If data is like the natural ores then applying AI to it is like applying some refinement to it and bringing out steel. Hence, this is the reason why we see widespread adoption of a AI by major brands.

More than 55% of marketing leaders are currently using data management platform and an additional 35% plan to attack one within the next two years; although many marketers only see the MPs as useful for solving basic issues like content personalization and frequency caps; on ads, high performance have begun to unlock an additional BMP feature.

Today's consumers are increasingly empowered by technology and by government privacy regulations, it's not the first order of business for brands to obtain permission to use consumer data. Without this permission you cannot use to create personalized custom experiences.

One third of the marketers say about difficult to meet current data regulations like the EU GDP are and data regulations are only going to get stricter in the future. That is why today's leading organizations have started putting someone in charge of managing customers data, that is the chief data officer; so hiring a chief data officer would be crucial to have a bright future of data driven model.

Thank you for reading,



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Golden Ava - Blogging About Just Everything: What is Data-Driven Marketing?
What is Data-Driven Marketing?
Data-driven marketing is the strategy of using customer information for optimal and targeted media buying and creative messaging.
Golden Ava - Blogging About Just Everything
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