Data: Friend or Foe?

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Data- Friend or Foe?Too much of something is never a bad thing… unless it is data. In the world of digital marketing, there are endless amounts of accessible data. Data provides consumer insight, a means for retargeting, and a way to reach an audience at the right time in the right place. However, there comes a point when all of this information becomes too much. Sometimes data can hinder your digital marketing campaign success when used in excess. Moderation and a bit of analyzation are crucial to success when harnessing millions of data segments and implementing them into your digital advertising campaigns.

A good starting point when approaching data is to find “the” segment that will capture the essence of the core of your custom audience. Programmatic advertising allows one to build custom audiences by adding and excluding certain data segments. When creating targeted audiences, challenge yourself to look more deeply into what specific audiences are available. Pay close attention to what can be excluded and be sure only to select key segments. Adding too many layers of data can increase costs and decrease reach exponentially.

When executing ad group targeting, it is important to keep custom built audiences and contextual targeting separate. It is also wise to keep constraints low to maximize inventory and decrease complexity in optimization. Layering too many data segments can lead to budgets becoming less efficient with fewer impressions. Brand Safety budgets are an exclusion about the above campaign guidelines.

Below are a few general tips that can provide guidance about how various targeting strategies can be applied and with what spend, with perspective to campaign KPIs (key performance indicators):

  1. Campaign under 2K = 1 targeting type
  2. Campaign 2k-10k = 2-3 targeting types
  3. Campaign over 10k = 2-3 targeting types, more dependent on KPIs

Data now informs almost all aspects of digital marketing and helps marketers, publishers, and other businesses reach the right consumer while they are online. But with this much data, marketers tend to get lost in determining the right data to use as well as how it can impact the performance of your campaign.  Keep these guidelines in mind and managing large data segments will be a breeze.