Updated: Jul 27, 2022
To the business-minded individual, data is king. It drives everything a business does from product creation to marketing and sales right down to production itself. Without data, companies are running blind and running blind risks crashing a brick wall. To mitigate the risk of hitting that wall, companies need to be steadfast in collecting data and they need to make sure they are collecting the right data!
Let's start with first-party data. First party data refers to all customer information that a company obtains through online and offline sources, such as its website, app, CRM, social media, and surveys.
Second party data is essentially someone else's first party data. The seller collects data straight from their audience, and it all comes from one source.
On the other hand third party data is data that you buy from outside sources that are not the original collectors of that data. Instead, you buy it from large data aggregators that pull it from various other platforms and websites where it was generated. A combination of using first, second and third party data will be your best option for getting the clearest picture of who your ideal customers are and how best to reach them.
There are seven forms of marketing data about customers that your business should collect and then use for programmatic advertising. Most likely you will be using a combination of these data types but not all seven at once.
The first type of data is demographic information. This is the most basic information required by any marketer. This data pertains to personal and geographic characteristics. It won't reveal much about the lead's purchasing patterns or hobbies, but it might provide insight into whether they match your ICP (ideal customer profile).
The next type of data is firmographic. As a compilation of information about organizations, this sort of marketing data is particularly valuable for account-based marketing, in which campaigns are directed to a group of decision-makers inside a single company.
Technographic data is the third category of data. I t is the application of knowledge about a prospective customer's technological stack, including the infrastructure and network tools they employ, the apps they choose, and the adoption rate of these applications at scale. This is especially important in B2B advertising.
Next, we have behavioral data. Behavioral data refers to the information gathered when a client or prospect interacts with a company. Typical forms of behavioral data include website activity measurements, advertisement interactions, content downloads, email clicks, and purchase histories.
There is also chronographic data. This relates to genuine global events that have an effect on individuals, businesses, and industries. Often referred to as event-based triggers or sales triggers, they indicate when a prospect or organization may be ready to purchase. It is most commonly used in B2B marketing, although it may also relate to traditional marketing, such as the beginning of summer as a sales trigger for barbecues.
Quantitative and qualitative data may be the forms of data with which you are most familiar, and they are the final two types of data we will explore.
Quantitative data consists solely of numbers. It employs quantitative analysis and data to illuminate crucial business and market statistics.
Qualitative data, on the other hand, is less concerned with statistics and more concerned with people – and their perceptions about your company. Qualitative research, which is typically performed by asking individuals or groups of people questions, may help you clarify problems and learn about consumers' perspectives, attitudes, and beliefs.
Using Your Data
Before you can use data to market your products or services you need to be able to manage that data. Data management is the discipline of gathering, storing, and utilizing data in a safe, efficient, and cost-effective manner. The purpose of data management is to assist individuals, organizations, and connected objects in optimizing data use within the constraints of policy and law so that they can make choices and undertake decisions that maximize the benefit to the company.
To manage data effectively and efficiently your company needs a Data Management Program that is secure, scalable, reliable, and visually available.
By helping workers to discover the data they need to accomplish their tasks more effectively, data visibility helps your firm become more organized and efficient. One of the most effective ways to keep your data secure and up to date while still maintaining visuals is by utilizing a CRM. A CRM or Customer Relationship Management tool is a piece of software that stores customer demographics as well as information about the interactions they have had with your company through sales or support. A CRM allows you to track client interactions such as phone calls, email exchanges, and social media postings and mentions. Depending on the software package used, technologies such as email integration and task triggers can assist in meeting deadlines and maintaining constant consumer engagement.
CRM systems assist marketing teams in developing client profiles. The information acquired can assist sales teams in determining where to focus their attention to close transactions and, conversely, where certain prospects may require more encouragement or to be let go.
With your data secure, you can begin to use it to market your product or services using Programmatic Advertising. To do this you will need to leverage the use of a DMP, or a Data Management Platform (DMP). A DMP collects, categorizes, and classifies data about marketing campaigns and their target consumers from many sources. It saves the data in a centralized location for a limited time in order to assist advertisers in targeting online adverts to the appropriate audience. That data is then made available to various companies for an agreed-upon fee. Your company might not own the DMP you use but you can leverage it.
DMPs and CRMs are at their best when working together to gather and utilize data. One way to integrate the two is through a CDP or Customer Data Platform. A CDP is a piece of software that builds a complete customer database that those other systems may use to analyze, measure, and manage customer interactions. A CDP can help you develop and govern a 360-degree view of each client by combining data from CRM and DMP systems, business intelligence, and identity resolution tools.
Alright, so you have everything you need to collect and store your data: A CRM, CDP, and DMP. Now the fun can begin. You can use this data for programmatic advertising. Programmatic advertising is a display advertising approach that uses computers and algorithms to acquire ad spaces based on data obtained directly by the firm or purchased from other sources.
Programmatic technology recognizes what resonates with each individual and determines how and when to target them, improving the possibility that they will connect with the information. Instead of distributing material or advertisements based only on preconceived notions and hoping that it interacts with the intended audience, programmatic marketing only works when precise requirements are satisfied.
So, say you’ve collected all of your data. The software collecting your data from all its sources shows that the average customer purchasing your product or service is a 35-year-old male earning $34,000 a year. Using programmatic advertising, your software will bid in real-time to show up when someone meeting that criteria clicks on any given website or app. Ad space is bought to ensure your ad is seen by your target demographic in a process known as real-time bidding.
During a Real-Time Bidding auction, thousands of companies may be competing behind the scenes for their ad to be displayed using AI. If the offer is accepted, the buyer's ad is immediately shown on the publisher's website. This happens on almost every website, smartphone app, or game every time they are used, all day, every day. Truly intelligent software does not bid on every user going to every website or app. Instead, the algorithm zeros in on users who fit the demographic your data specified and often focuses on apps and websites that cater to your intended clientele
This is why collecting data is so important in modern advertising. While the system can control the options ,it needs the data to direct it to which auctions to participate in.