At first, it may have seemed big data wasn't much more than a tech buzzword. It's understandable if your agency was skeptical of big data's potential—after all, plenty of tech fads have come and gone over the years, and it could have been just another flash in the pan.
But by now you know big data has made good on its promise and lived up to its potential. Incredible use cases for this technology are evident in every industry and marketplace, but advertising is one industry where it can't be ignored. Big data has absolutely changed the game for advertisers, ushering in a new era of targeted customer engagement strategies.
Turning Ad 'Likes' Into Revenue
Big data hits the big time
Interest in and demand for big data technologies continues to climb. A 2016 GFK Eurisko study found that more than three-quarters of organizations were planning to either increase or maintain their big data investment in the near future. The technology is well past the proof-of-concept stage at this point, and while companies are actively looking to expand applications, marketers have found a perfect fit in advertising.
"Marketers have found a perfect fit for big data in advertising."
In today's digital world, marketers face the challenge of making sense of all the data being created by consumers across various touchpoints. There's a lot of information to comb through (it's called "big" data for a reason), and cutting through the noise to pull out the really valuable insights is not a task for the faint of heart. As Nielsen CEO Mitch Barns explained, successful analytics projects are defined by working with the right data, rather than the sheer volume of information available.
Barns cited the example of leveraging television viewing habits to improve consumer behavior prognostications. Working in tandem, different big data technologies (analytics tools, attribution models, etc.) could draw more accurate connections between consumer viewing choices and the products they purchase. This capability would drastically improve the effectiveness of advertising strategies, driving more value while reducing wasted efforts.
A new age of personalized engagement
Advertisers have the opportunity to finely tune promotions to meet the precise demands of customers. Entrepreneur contributor Andrew Medal noted that organizations across the globe already have analytics capabilities that allow them to accurately anticipate customer needs and tailor specific offers to individuals' tastes. Purchase history, search engine queries and site activity can all provide a more insightful look into the mindset of consumers—it just takes some analytics muscle to bring the whole picture together.
Targeted advertising strategies are becoming more sophisticated and nuanced, allowing businesses to personalize their outreach efforts and drive customer engagement to a whole new level. Cultivating a strong relationship with shoppers is as important as ever, and big data technologies can help put an end to the detached and impersonal nature of digital transactions.
How to make data-driven advertising a reality
There's a clear opportunity for advertising agencies to capitalize on big data to drive greater effectiveness for clients. The main challenge for many agencies is the lack of requisite skills needed to properly deploy, manage and leverage the technology. A recent CMO Council study discovered 83 percent of surveyed marketers were actively searching for data analytics skill sets that have not been traditionally found in advertising agencies.
Looking inward for big data technologies expertise is rarely the best way forward for organizations. The infrastructure is complex and qualified data scientists are in high demand, and their salaries reflect it. Managing big data requirements on your own is an expensive—and challenging—proposition.
Clarity has a long history of working with advanced analytics and guiding businesses to create data-driven campaigns they could previously only dream of. To learn more about what we can do to help make big data technologies a part of your advertising agency, contact us today.