Data-driven advertising is a type of promotion that emphasizes more on targeted ads, offers, and messages relevant to the target customer. This kind of advertising has attracted so much attention because it provides tremendous benefits compared to other modes of promotion.
Common misconceptions about data-driven advertising
Many people hold the misconception that data-driven advertising intrudes into one’s privacy. They usually think that there are people somewhere monitoring their browsing activity. But that isn’t the case. The advertisement involves more of collecting crumbs of data and coming to a conclusion of who you are as a concept.
Data-driven advertising is a relatively complicated process. It joins interconnected factors and makes use of several algorithms to determine the kind of ad that suits you the best. It could, for example, determine your favorite website and then place ads strategically so that when you log in, you find the ads there.
Why is data driven advertising a silver bullet for marketers?
Data-driven advertising has a mechanism to enable marketers to achieve their specific advertising targets. It creates a win-win situation to both the marketer and the target audience. Marketers can effectively target their ads contextually, based on behavior, psychographic characteristics, and location.
What makes data-driven advertising possible?
All of these characteristics that involve dealing with large volumes of data and real-time decisions over a very short period of time are all characteristics of big data. This is a typical example of how big data can help in advertising.
Data drive advertising is very precise and cheap. It ensures the messages or offers get to the right person at the right place. It has enabled marketers to gain a return on investment for their advertisement and make more.