Marketers worldwide employ data-driven marketing as a strategy to communicate their brand and reach the right audience. It is based on audience data and information and is carried out by understanding consumer needs and behaviour to create more convincing and personalised ads that ensure better conversion.
Traditional Vs Data-driven
Traditional marketing involves all sorts of marketing that is not online. So we can view everything from print, newspapers, and radio to billboards as traditional. Traditional media makes it possible to target a mass audience through trial and error. It involves a lot of conjecture and prejudice as well.
We aren’t saying they’re not practical, as 56% of the world’s customers still find print media advertisements very influential. But a Data-driven approach has an advantage over traditional marketing in terms of ROI efficiency.
Traditional marketing applies all the fundamentals of marketing, such as conducting market research and surveys of audience groups. But implementing these strategies which involve many hypotheses, brands have to try and experiment with many strategies to develop one that can be considered as their market approach. This is why marketers in today’s world need a different approach. An approach that is fail-proof and well-defined and Data-driven marketing promises the same. So, let us delve deeper and understand why the data-driven approach is future-proof, result-oriented and more affordable.
Data-driven marketing is based on carefully recounted data from our target audience. And uses it as the main source for our marketing efforts allowing marketers to understand what interests the audience towards our copy or content. This ensures we target the right target group with the right marketing collateral. Another advantage embraces real-time tracking of audience responses which a campaign manager can analyse and optimise accordingly, making the most from the campaign.
Agencies like ours have greater control over the outcome and deliver countable and tangible results.
Why Data-Driven? How did it become mainstream?
Marketers found the data-focused approach more promising as it no longer let them have a guessing game on what strategies work and how resources are used over time. Even those questionable assumptions about the audience’s behaviour, desire, and habits had become a thing of the past. Data-driven marketing gave marketers an upper hand on lead quality by targeting the right audience through segmentation and targeting by interest. With better lead quality, marketers know what those leads are and where to place them in the funnel.
Data-Driven Market trends of 2022
The Data-driven boom in the marketing space is still met with many challenges, especially due to the recent tightening of privacy policies and regulations. To quash the effects, marketers have adopted some amazing trends that ensure the advancement of their strategies. We have laid out a few of them below.
- Gather First-Party Data: Adopting newer methods to collect information directly from the audience is preferred, as using these first-party data has become a key data source in data-driven marketing. This has become a mandate among many marketers as new regulations set up by different institutions and authorities have made it difficult for them to find and use third-party data. Additionally, most browser services like Chrome, Safari, and Mozilla have plans to tighten their privacy policy in the years to come.
- Many New Touchpoints in Buyers’ journey: Incorporating newer channels and having an omnichannel presence is the need of the hour to provide a better brand experience, as the addition of newer and more touchpoints in the purchase cycle has made the buyer’s journey more complex.
- More Personalisation: Ensuring ads are personalised, as it is important to note that 80% of recurring sales happen when a brand provides products and services in a personalised manner. As Marketers acquire first-party data from their audiences, their audiences also expect more personalisation throughout their buyer’s cycle.
- AI and Automation: The year 2022 has shown an increase in the adoption of AI and Automation in Data-driven marketing activities to increase personalisation. Marketers use automation everywhere, from optimising bidding to personalising the audience’s web experience.
- Brand Loyalty is on the decline: Consumers’ brand loyalty declines with the newer expectations of a more personalised and seamless brand experience across all channels. Therefore, marketers should rely less on Brand loyalty and ensure an impeccable buyer’s journey for their audience.
Data-driven marketing has a long way ahead. More and more Marketers are willing to delve into data. And with the right amount of data, they can achieve almost anything they wish.
But there are many challenges that a marketer might face. We have understood some of them today by addressing the new trends in Data-driven marketing. However, we have more challenges+unique solutions in our next blog, “Challenges in Data-driven Marketing approach“. Subscribe to our Newsletters, so you don’t have to miss them.
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