Role of Data in Advertising | An Info-graphic
What is data?
Quoting verbatim from Wikipedia; “Data is a set of values of subjects with respect to qualitative or quantitative variables. Data and information or knowledge are often used interchangeably; however, data becomes information when it is viewed in context or in post-analysis.”
The line “data becomes information when it is viewed in context or in post-analysis.” has a deep-rooted meaning. Raw data is the new-gen crude oil and data mining is the new-gen method to refine the raw data.
Data is undoubtedly the most precious resource in today’s internet savvy world. Advertisers have started to use the behavioral data (a sub-segment of raw data) of online users. This is mainly done to target them with relevant ads. This blog explores the role of behavioral data in advertising.
What exactly is behavioral data? According to Digitopoly, Behavioral data refers to information produced as a result of actions, typically commercial behavior using a range of devices connected to the Internet, such as a PC, tablet, or smartphone. Behavioral data tracks the sites visited, the apps downloaded, or the games played.
Advertisers are using behavioral data to amplify their advertising efforts. Data allows addressing consumers in a way that is more relevant to their circumstances and experience (targeted advertising). Behavioral data, which could include on-site and off-site browsing, purchase behavior, and signals of intent, allows companies to tailor advertising messages to consumers and reach them when their message is most relevant.
This makes advertising more worthwhile and less interruptive for the consumer, and more effective for the advertiser. As people’s tastes, cultural affiliations, and life journeys have diversified, traditional criteria for segmenting consumers (age groups, income brackets, or occupational status, for example) have become insufficient.
Behavioral data allows advertisers to identify and describe new consumer groups, such as ‘auto intenders’ who are seeking to buy something. This reduces ‘wastage’, or advertising to the wrong consumers, reduces frustration, and ensures consumers encounter products and messages that are genuinely useful to them.
Here is an info-graphic with some startling numbers!
It’s extremely important for the advertisers to know their target audience. Advertisers need to mine the behavioral data in order to find certain patterns and then cluster the audience in various sets based on the identified patterns. Advertisers can then target these audience sets with different sets of ads. This will have a tremendous impact.
Now, the question is – how do you collect behavioral data? It’s simple. Data is available everywhere. Say, for example, you want to know the online behavior of your “audience.” The first thing that you need to do is to figure out the age bracket of your audience.
The second thing that you need to do is to conduct a quick survey. You can create a free survey using Google Forms or Survey Monkey. Distribute the survey form all over social media and/or send it to all the people you know. Remember, the survey group should have the people who fall within the ideal age bracket. You need to ask them the following basic questions in your survey.
3) Websites they frequent
4) Income levels
5) Educational Background
6) Online Spending Trend
7) Devices they use
There you have your behavioral data. Compile this data and use it when creating your ad campaigns.
Until next time.